Unexpected consequence of the COVID-19 hit on the economy: pensions may not increase next year, politicians are already looking for solutions | Deal

These considerations became clear after President Gitan Nausėda’s meeting with the Seimas Board members on Tuesday.

It really touched everyone.

According to Irena Degutienė, a former conservative at the meeting, G. Nausėda herself shared her fears about the increase in pensions.

“This phrase was said by the President himself, that the law in force today stipulates that if the gross domestic product does not grow, there should be no indexation. 15 minutes said the politician.

With the coronavirus pandemic raging this year, GDP is expected to decline.

“I think it really touched everyone,” he added.

According to I. Degutienė, so far this information from the Government has not been known.

The average pension is currently around € 380.

Will you try to change the law?

The governors of the Seimas agree that if the economy really declines, the Social Security Pension Law will have to be modified so that pensions can be indexed.

“It is very difficult to say if something needs to be changed, because the question is whether our economy will really decline this year,” he added. 15 minutes said Ramūnas Karbauskis, the leader of the ruling “peasants”.

The Ministry of Finance forecasts that the Lithuanian economy will contract by 7 percent this year. True, the forecast was made in June, it will be updated in mid-September.

The peasant leader argued that if GDP fell anyway, the law would be changed in the fall to keep pensions high.

“It just came to our knowledge then. In my opinion, it may be necessary to amend that law a little for indexing to take place, even if we lack economic growth of several tens percent,” said R. Karbauskis.

“All of this does not change the fact that we will find money to index,” he added.

R. Karbauskis said that he had not yet discussed this situation with Prime Minister Saulius Skvernelis, but stated that he was convinced that the prime minister would say the same thing: pensions will increase next year.

15 minutes He asked the prime minister for a comment on the matter in writing on Wednesday morning. We will post the response as soon as we receive it.

“Social workers”: for changing the law

Gediminas Kirkilas, leader of the ruling “social workers”, claimed that an amendment to the law had already been agreed with the Minister of Social Security and Labor, Linas Kukuraitis.

“According to the indexation law, it is mentioned that they are indexed only when GDP is growing. If it were negative, in theory we could not index it, but we have already agreed with the Minister that we will modify the law ”. 15 minutes confirmed G. Kirkilas.

On Wednesday, Rimantė Šalaševičiūtė, chairwoman of the Seimas Labor and Social Affairs Commission, said that the possibility of further indexation of pensions was discussed with L. Kukuraitis on Tuesday during a business trip to Telšiai.

At that time, the conservative Monika Navickienė asked the commission to ask the government for clarification on whether next year’s draft budget provides funds for the indexation of pensions, without yet engaging in discussions about amending the law.

“I understand that one or the other car is being discussed with the minister, but there must be an appeal from the committee,” said the member of Seimas.

Representative of the Minister of Social Security and Labor Eglė Samoškaitė 15 minutes stated that the decision on a higher indexation of pensions has not yet been made, as the state and Sodra budget project for next year has not yet been agreed.

15 minutes asked the Finance Ministry in writing whether the draft budget for 2021 provides funds to increase pensions. Once we receive the response, we will post it.