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Lithuanian Prime Minister Saulius Skvernelis. Photo by Darius Janutis (LRVK).
Prime Minister Saulius Skvernelis has stated that the non-finance minister will decide whether next year’s budget will provide funds for the 13th pension.
Comment added by Ramūnas Karbauskas.
“It is not up to the Minister of Finance to decide what should and what should not be. (…) It is not the Minister of Finance, but the Government that decides what the state budget will be,” the prime minister told reporters in the Seimas on Tuesday.
This is how Vilius Šapoka’s statement commented that by the end of 2021 the state budget should avoid any additional long-term financial liabilities, including the thirteenth pension.
“Regarding the budget next year, we certainly will not see the thirteenth pension, making additional long-term financial commitments with borrowed funds, such prosperity will end very soon and change. I think we should avoid any additional long-term financial obligations,” said the Tuesday the minister to LRT Radio.
According to the Prime Minister, if a law on the pension is passed, “then it will be pension number 13, and the government’s task will be to find funds to finance this pension.”
Ramūnas Karbauskis, the leader of “Valstiečių”, says that the economic situation in Lithuania allows us to introduce pension number 13: the Sodra reserve exceeds 560 million. euros.
“The Finance Minister can say what he thinks, but he cannot speak for the Government and the Seimas. (…) The Seimas should make this decision,” R. Karbauskis told reporters.
According to him, such a pension is a “non-Lithuanian resource”.
“It is legal in several countries of the European Union, as well as in neighboring Poland. Our economic situation is as follows, Sodra’s reserves – more than 560 million. Eur – are such that we can afford it,” said R. Karbauskis .
The amendment was proposed by the Polish election campaign
Amendments to the First Pension Law were initiated by Lithuania’s Polish electoral campaign faction, the Union of Christian Families, which did not exceed the 5% limit in the multi-member electoral district and did not enter the Seimas.
It is estimated that pension number 13 will require around 120-180 million. Eur, would benefit some 600,000 people.
The opposition has accused the initiators of the amendments of wanting to convince voters in this way.
The Minister of Social Security and Labor, Linas Kukuraitis, has said that the decision on the legalization of pension number 13 must be taken by Seimas for the next term.
Starting next year, pensions will be indexed, as every year, but Seimas is considering how to change the current pension indexing formula so that it increases in the future, and does not stay the same or decrease. Managers suggest putting more room for maneuver in the formula.
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