Sodra begins paying recalculated pensions

In total, in June, pensions were renewed by about 150 thousand. pension beneficiaries, and another 45 thousand. You will receive renewed pensions in July.

Renewal of pensions will increase the pensions of many older adults and some people with disabilities. As pensions increase from January, when the renewed pension begins to be paid from June, there will also be no arrears during the first five months of this year.

It is estimated that a total of almost 6 million euros will be needed to renew pensions this year.

“Working pensioners, including those who receive invalidity (disability) pensions but work disabled, pay social security contributions, acquire the duration of service and the pension units, therefore, their pension is renewed, as each year, they do not need to do anything about it and request it.

Despite the challenges of the epidemic situation, Sodra is fulfilling its obligations to the population to renew their pensions by the end of July, ”says Violeta Latvienė, Deputy Director of Sodra.

The amount of the pension will depend on your salary.

For many beneficiaries whose old-age and disability pensions have been renewed, they will increase. The change will depend on the salary received last year and the social security contributions paid for the pensions.

For example, if the salary of a pensioner who worked last year was approximately the minimum monthly salary for the entire year (555 euros in 2019), the person earned one year of service and approximately half the unit of account of the pension . In this case, the pension increases by about 7 euros, and if it is renewed from June, the person will also receive a default of around 35 euros during the first five months of this year.

If the income were the national average salary for the whole year (around 1129 euros “on paper”) – a person has earned a year of service and a unit of account, the pension would increase by about 9 euros. If the pension is renewed from July, the person will receive a non-payment of approximately 54 euros during the first six months of this year.

However, the salary of each person and the social guarantees acquired are different, so the change in the individual pension will be different.

Renewed pensions will be received not only by those beneficiaries who worked last year, but also by those who stopped accumulating in 2019 and transferred the entire accumulated amount to Sodra. These funds are treated as social security contributions and are converted into pension units with no limit of 5 units per year. As a result, pensions for older people who have stopped accumulating have been renewed and should also increase.

It is important to know that for some seniors and people with disabilities who worked last year, pensions may not increase after renewal, or increase less than average.

This is due to the fact that in 2018, when pensions were recalculated, the rule of not reducing pensions was applied to a part of the beneficiaries whose pensions would have decreased after recalculation. In this case, the recalculated pension is renewed; if it is less even after renewal, the pension of the previous amount continues to be paid.

Disability for labor pensions granted before the end of 2017 will increase as a result of renewal only if the amount of the beneficiary’s social security contributions for pensions in 2019 exceeds the number of disability units for labor pension already added in the calculation of this pension for that year.

Seniors with the lowest pensions, whose total pension income is less than € 257, receive small pension supplements. If, after the increase, their pensions still do not exceed 257 EUR, they will continue to be paid a bonus so that the total pensionable pension of the person who has completed the required duration of service is 257 EUR.

Statistics: workers receive higher pensions

According to Sodra, 11.9 percent. old-age pension beneficiaries: almost 70 thousand. – keep working. Most working retirees are in their 60s and 70s. age group.

Retired men are more likely than women to work: about 14 and 10 percent, respectively. Older working men earn higher wages, averaging € 961 on paper, while women earn around € 928 a month.

Older working adults tend to have a longer length of service (41 years) than the unemployed (36 years) and receive higher pensions. Last year, for example, the average pension for a senior worker was 444 euros, and for an unemployed senior, 366 euros.

There are also more than 170 thousand in Lithuania. disability pension beneficiaries. Two thirds of them are of working age (mainly in the 45-65 age group) and two out of three are employed. Therefore, in most cases, your disability pension is a supplement to your regular earnings.