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“The basic principle of the president (…) is that pensions should grow slightly faster than the average income in the country to reduce extreme poverty and the pension gap (related to – ELTA) the so-called replacement rate – the ratio of the average pension to the average salary, which is currently around 42 percent in Lithuania. and is much lower than in Western European countries, where the ratio is 60%, ”said S. Krėpšta to Knowledge Radio on Tuesday.
“According to the president, according to current figures, (the growth of pensions – ELTA) could reach around 8%,” said a representative of the Presidency.
S. Krėpšta also stated that the pension indexation formula could be improved.
“Reality has shown that the formula, which is related not only to the wage bill (…) but also to the real variation in gross domestic product (GDP), which is less correlated with the funds raised, is not perfect and it can be improved, maintaining all the logic so that the growth of pensions corresponds to the funds collected in the budget. It is easy to improve (formula – ELTA), but maintaining financial sustainability “, said the adviser to the president.
When asked what the country’s head thinks about Lithuania’s Polish election campaign, the offer from the Union of Christian Families to pay retirees the so-called 13th pension, S. Krėpšta made it clear that this would not be sustainable.
“The president advocates a constant and sustainable increase in pensions. Seeing that more than a third of retirees are in a situation of relative poverty, a sustainable solution would be for them to escape from that relative poverty not once a month, but every month. months ”, said a representative of the Presidency.
Prime Minister Saulius Skvernelis has previously stated that, under the conditions provided by law, there are opportunities for indexation of pensions, possibly increasing by 7%.
Representatives of the Lithuanian Christian Democrat-National Union faction registered an amendment to the law that would remove the negative impact of the trend of GDP in the indexing formula.
According to Sodra, the average old-age pension in July amounted to 377 euros, with the required length of service: 400 euros.
In Lithuania, pensions are indexed by averaging the growth of wages over the last 7 years.
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