The Seimas has legalized the single person benefit: not all pensioners will receive it

The adopted legal act regulates the individual benefit, its amount, conditions of concession and payment. As of July 1, disabled people and beneficiaries of social assistance pensions and small pension supplements who have reached the age of the old-age pension will be entitled to the single person benefit. From 2022 January 1 this benefit will be available to all single people, people with disabilities and people of retirement age.

Single beneficiaries who have declared their place of residence in the Republic of Lithuania will be entitled to the benefit of a single person: these are people who are not married or divorced, widows who are not entitled to a widow’s pension, widows whose benefit widows is inferior to a single person and widows who are entitled to a widow’s pension but who have chosen to receive an orphan’s pension.

In 2021, the single person benefit will be the basic amount of the social security widow’s pension, that is, € 28.63, and from 2022 the amount will be € 32.

The single person benefit will not affect other benefits or monthly compensation payable to the single person by law, as well as social assistance in cash and payment for social services, unless other laws provide otherwise.

“When you live alone without children, without a family, in the end those housing costs are relatively higher for you, regardless of whether you are a widow, if you are never married or divorced. Therefore, it seems to me that a level playing field is very important. It is also necessary to pay attention to the poverty indicators of single retirees, which are more than double that of the entire Lithuanian society. I am glad that the decision has finally come, ”Finance Minister Gintarė Skaistė invited to approve the project.

It has been established that the single person benefit will be granted and paid by an administrative institution authorized by the Board of the State Social Security Fund in accordance with the requests presented by the individuals.

The approved law proposed to the Government to present proposals to the Seimas together with the draft Law for the Approval of Financial Indicators of the State Budget and Municipal Budgets of 2022 and the Law of Approval of Budgetary Indicators of the State Social Security Fund for 2022. January 1 the applicable amount of the single person benefit and the indexation procedure for this benefit.

So far, only widows or widowers have received a similar benefit, with an average of € 28. The objective of introducing the so-called one-person pension, which would be granted to a wider circle of people, not just widows, was also included in the implementation plan of this Government program.

Navickienė: the benefit is intended to help the population most at risk of poverty

As portal Delphi The Minister of Social Security and Labor, Monika Navickienė, explained that this pension would be granted, it will have to be approved by the Government when adjusting the budget.

Currently, the process of adoption and harmonization of the law in the context of the budget is underway. There is a government program and the Prime Minister draws attention to the problem of the risk of poverty, which has also emerged in the face of a pandemic. We are striving to fulfill that promise, we are looking for ways, finances, resources and opportunities to achieve it ”, said the Minister.

The plan, according to her, is that the benefit reaches single people from 2021. Initially it would amount to € 28, with plans to increase this one-person pension next year.

“A wider range of single people, not just widows, would receive additional benefits in the amount of the widow’s pension. Well, and in 2022, they would grow. <…>. Our goal is to start implementing the initial steps and then, looking at the budget options, increase this amount of profit according to the options.

We hope to achieve the objectives set, we want to start and reach the people most affected by the risk of poverty: beneficiaries of social assistance pensions and single people who are not widowed ”, explained M. Navickienė.

The third priority includes the “Empowerment of the most vulnerable groups in society” in the Implementation Plan of the Government Program.

One of the four priority indicators that is expected to be reached in 2024 is the pension of single people of retirement age, which would amount to 11%. average old-age pensions. Thus, the government has set a goal that the amount of the aforementioned pension for 2024. would reach more than € 40.

“If the project is approved, I want to emphasize that the discussions are still ongoing, these people would receive additional income already in 2021. According to preliminary data, they would come into effect in July,” said the Minister of Social Security and Labor.

Another indicator included in the Government’s priorities is 2024. reduce the at-risk-of-poverty rate from 20.6% to 17%.

According to M. Navickienė, the mentioned pension of single people of retirement age would contribute to the achievement of this indicator.

“Today, statistics show that it is single people who are most at risk of poverty. If we talk about the appropriateness of this measure, then the calculations show that the greater material well-being of these people would really have a significant impact on the problem of poverty. risk of poverty ”, explained the Minister.

It is estimated that this measure this year, according to M. Navickienė, would cost an additional preliminary amount of about 15 million. euros.

Spring: the measure would also address discrimination

For his part, the president of the Seimas Labor and Social Affairs Commission, Mindaugas Lingė, said that he has not yet evaluated the final project, but affirmed that the benefit is adequate.

“At the beginning, it would help to solve the problem of discrimination, it arose because there are single people and people who have acquired the status of widows. Regarding aid, the situation of these people varies: some claim a certain amount of benefit, which now is around € 28, while others do not. Apparently, their needs have not diminished and their living conditions are different ”, said the president of the commission.

Granting a pension to single people would also address, as noted by Mr. Lingė, the issue of attitudes towards people.

“Their situation is practically the same and the same. The second point is that, looking at both categories, there is the problem of poverty for single older people. It is very high, reaching over 40% in this group. Still, older people are the ones with a total of about 30 percent. experiencing poverty. The risk of poverty is even higher for single people and that convenience through various depreciation mechanisms and through a single person’s pension could help, ”said M. Lingė.

Lazutka: The measure is reasonable, but you also have to think about the fuses.

Delphi In early March, he spoke with the economist, Professor Roma Lazutkas from Vilnius University.

In evaluating the implementation plan of the Government’s program, he affirmed that the planned introduction of one-person pensions is a good and important measure, although it will not exceed or greatly contribute to combating poverty, as expected by the Minister of Social Security and Labor M Navickienė. .

“This measure is quite precise, but it will not necessarily reduce the risk of poverty rate to 17%. The pensions of these singles are so small that they add up to 11 percent. Of the average pension it will be around 40-45 euros. With so much added into retirement, these people will not exceed the poverty line. They will remain below the threshold, but the measure is certainly justified, although these people will remain in poverty, it will not be so serious, it will be a little easier for them to fall into poverty. poverty. He will take those 40 euros, pay for the heating and leave his pension money for someone else, “said R. Lazutka.

This new measure, she said, would be particularly relevant for single women of retirement age, as men live shorter lives in the country and women’s pensions are often low due to the low salary they receive.

“Single women tend to stay alone, now they receive a widow’s pension for being widowed, but we know that there are many people who divorce, retire alone, do not become widowed, and then do not receive benefits,” he said.

According to R. Lazutka, this benefit would also help divorced single seniors.

“It is much more difficult for a lonely person to live because he has to pay the same for heating, whether he lives in two or alone,” said the economist.

However, he noted that certain oversight mechanisms should also be established for that benefit in order to prevent abuses.

Of course, it would be even better to increase pensions faster for all and then it would be possible not to differentiate, because now the single pension for people who start divorcing in old age to receive that benefit is being criticized. It is very important to provide certain fuses, let’s say that during the first three years after the divorce, you will not be tempted to separate in retirement just for that, but here things are fixed ”, assured the professor.

Speaking of this, M. Lingė states that he would be inclined to trust people first and assess the need for such safeguards already after granting pensions.

“If we see that there are several cases of abuse that are clearly visible and demonstrable, I would probably be inclined to address that issue after pensions have been awarded. Assuming in advance that people will start taking fictitious things … I want to trust the people, ”said the president of the Committee on Social Affairs and Labor.

He reiterated that some technical fuses or other similar details may be introduced in the ministry’s final draft.

According to R. Lazutka, it is also worth considering whether the benefit should not depend on the amount of the pension received. However, this would complicate the system and increase the administrative burden.

However, the economist was pleased that the idea of ​​Gintarė Skaistė and Laurynas Kasčiūnas, members of the Seimas who had previously proposed such a measure, had not been forgotten.

“It is commendable that they did not forget a single person’s pension, I remember when Skaistė and Kasčiūnas offered it in opposition, they held a press conference. They were not forgotten, consigned in the plan of measures. I think this is an example of respectable behavior by politicians, “added R. Lazutka.

According to data from the Ministry of Social Security and Labor, currently the average widow’s pension reaches 28 euros, it is received for about 210 thousand. widowed pensioners.

If approved, effective July 1 of this year. the right to receive the benefit per single person would acquire even more than 60 thousand. people. Since 2022, more than 400,000 will already receive a single person benefit or a widow’s pension. people.