On the Approval of a Draft Standard Agreement Between the Republic of Lithuania and Another State on Social Security


Published: 0000-00-00

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Official translation
8 July 2009
 
 
GOVERNMENT OF THE Republic of Lithuania
 
 
RESOLUTION No 1235
 
of 24 November 2008
 
 
 
ON THE APPROVAL OF A DRAFT STANDARD AGREEMENT BETWEEN the Republic of LIthuania and another STATE on social security
 
 
 
Vilnius
 
 
 
Implementing paragraph 13 of the Rules of the Republic of Lithuania on the Drawing up and Concluding Treaties of the Republic of Lithuania, approved by Resolution No 1179 of the Government of the Republic of Lithuania of 1 October 2001 (Valstybės žinios (Official Gazette) No 84-2938; 2001, No 175-6497, 2004), the Government of the Republic of Lithuania has resolved:
 
To approve a draft standard agreement between the Republic of Lithuania and another state on social security (as appended).
 
 
 
 
 
 
 
Interim Prime Minister                                                                    Gediminas Kirkilas
 
 
 
 
 
 
 
Interim Minister of Social Security and Labour                             Vilija Blinkevičiūtė
 
 
 
 
 
 
Approved by
 
Resolution No 1235 of the Government of the Republic of Lithuania of 24 November 2008
 
 
 
DRAFT STANDARD AGREEMENT BETWEEN THE REPUBLIC OF LITHUANIA AND ANOTHER STATE ON SOCIAL SECURITY
 
 
 
The Republic of Lithuania and ANOTHER STATE (hereinafter referred to as “Parties”),
 
with the aim to regulate the relations between the Parties in the area of awarding and payment of pensions and to identify the legislation applicable to persons employed in the territories of the Parties,
 
have agreed as follows:
 
 
 
I. GENERAL PROVISIONS
 
 
 
Article 1
 
Definitions
 
1. For the purposes of this Agreement:
 
1) legislation shall mean the laws and other legal regulations of the Parties related to the scope of the Agreement specified in Article 2 of this Agreement;
 
2) competent authority shall mean an institution authorized to establish the procedure of the application of this Agreement in the territory of the respective Party, namely:
 
Ministry of Social Security and Labour in the Republic of Lithuania;
 
............................................................ in ANOTHER STATE;
 
3) competent body shall mean a national authority or body responsible for implementation of legislation of each Party;
 
4) the insured shall mean persons residing in the territory of either Party who are or have been subject to the legislation of either or both Parties;
 
5) family members:
 
a widow (widower) and/or orphans of the deceased – in the Republic of Lithuania;
 
............................................................ in ANOTHER STATE;
 
6) residence shall mean a place where a person legally lives permanently or temporarily in the territory of either Party, as specified in the respective laws of that Party;
 
7) pensions shall mean the pensions indicated in paragraph 1 of Article 2 of this Agreement, including all their elements as well as increases, premiums and bonuses envisaged by the legislation of each Party;
 
8) period of insurance (employment) shall mean the period which is taken into account when establishing the right to pensions falling within the scope of this Agreement as well as their amounts under the legislation of each Party;
 
9) insured event shall mean a juridical fact as a result of which a pension of the respective type of insurance (employment) is awarded for the first time under the legislation of each Party.
 
2. The meaning of other terms used in this Agreement shall have meanings respectively assigned to them in the legislation of either Party.
 
 
 
Article 2
 
Scope of the Agreement
 
1. In the Republic of Lithuania, this Agreement shall apply to:
 
1) state social insurance pensions: old-age pensions (awarded to persons who have reached the age of old-age pension); work incapacity (disability) pensions; survivor's and orphan's (loss of breadwinner) pensions and other types of pensions paid under the Law of the Republic of Lithuania on State Social Insurance Pensions ;
 
2) state social insurance contributions paid under the Law of the Republic of Lithuania on State Social Insurance.
 
2. In ANOTHER STATE this Agreement applies to:
 
1) ......................;
 
2) ...................... .
 
3. Unless the Parties agree otherwise, this Agreement also applies to other pensions or social insurance contributions paid in accordance with the legislation that will revise and (or) amend the laws indicated in paragraphs 1 and 2 of this Article.
 
 
 
Article 3
 
Persons to Whom this Agreement Applies
 
1. This Agreement shall apply to persons whose residence is located within the territory of either Party and who are or have been subject to the legislation of either or both Parties as well as to members of the family of such persons insofar as their rights derive from those persons by the legislation of each Party.
 
2. This Agreement is not applied to persons who receive pensions under special schemes of pension provision that fall outside the state social insurance system of pension provision.
 
 
 
Article 4
 
Equal treatment
 
Unless this Agreement provides otherwise, all the persons specified in paragraph 1 of Article 3 of this Agreement shall, while residing in the territory of either Party, have the same rights and obligations under the legislation of that Party as its own nationals.
 
 
 
Article 5
 
Export of pensions
 
Unless this Agreement provides otherwise, pensions may not be reduced or their payment suspended and/or terminated as a result of moving by the person concerned to a residence in the territory of either Party.
 
 
 
II. IDENTIFICATION OF APPLICABLE LEGISLATION
 
 
 
Article 6
 
General rules
 
1. An insured person covered by this Agreement who is employed or self-employed in the territory of either Party shall be subject exclusively to the legislation of only that Party, even if he resides in the territory of the other Party, or if his employer or the registered office of his employer is located in the territory of the other Party.
 
2. An insured person who is employed or self-employed in the territories of both Parties at the same time, shall be subject to the legislation of the Party of his permanent residence.
 
3. An insured person who is employed in the territory of one Party and self-employed in the territory of the other Party at the same time, is subject to the legislation of the Party of his employment.
 
 
 
Article 7
 
Special rules
 
The following exceptions to the application of Article 6 of this Agreement are hereby established:
 
1) when the insured who are subject to the legislation of one Party are posted to work for the benefit of the employer for a certain period to the territory of the other Party, the legislation of the posting Party shall apply provided that the envisaged work duration does not exceed a period of three years. By agreement between the competent authorities of the Parties, the duration of the application of the legislation of the posting Party may be extended for the maximum period of two years;
 
2) members of diplomatic missions or consular offices of either Party as well as persons employed in the private service of officials of such missions or offices shall be subject to the provisions of, respectively, the Vienna Convention on Diplomatic Relations of 18 April 1961 and the Vienna Convention on Consular Relations of 24 April 1963. However, upon starting employment at a diplomatic mission or consular office, members of technical and service personnel in three months from this Agreement became effective may choose the legislation of the Party where they are employed at a diplomatic mission or consular office, provided that they are the citizens of that Party;
 
3) members of ship crews are subject to the legislation of the Party whose flag the ship is flying. Members hired for stevedoring and ship repair work or by a port security service shall be subject to the legislation of the Party where the port is located;
 
4) international transport company employees whose work is mobile in its nature and who work in the territories of both Parties shall be subject to the legislation of the Party where their employer is registered.
 
 
 
Article 8
 
Exceptions to the provisions of Articles 6 and 7 of the Agreement
 
The competent authorities or the competent bodies authorized by them may agree in writing on exceptions of the application to the provisions of Articles 6 and 7 of the Agreement in the interest of any person or category of persons.
 
 
 
Article 9
 
Application of health insurance legislation
 
1. Non-workers who receive pensions only under the legislation of the other State shall be subject to the health insurance legislation of the State of their residence.
 
2. Health care expenses shall be covered for the pension recipient from the funds of the Party under the legislation of which the pension was awarded and from which he arrived in accordance with the procedure established in the agreement signed between the authorities of the Parties administering the payment of health care expenses.
 
 
 
III. OLD-AGE, WORK INCAPACITY (DISABILITY), SURVIVOR’S AND ORPHAN’S (LOSS OF BREADWINNER) PENSIONS
 
 
 
Article 10
 
Award of pensions
 
1. When establishing the right to pension, the insurance (employment) period acquired under the legislation of both Parties shall be taken into account in so far as they do not overlap.
 
2. Receiving a pension under the legislation of one Party does not deprive one of the right to receive a pension under the legislation of the other Party at the same time.
 
 
 
Article 11
 
Calculation of pensions
 
1. Both Parties shall calculate the amount of the pension solely on the basis of the periods of insurance (employment), acquired in accordance with the provisions of its legislation.
 
2. Application of the legislation of the Republic of Lithuania:
 
1) when determining the amount of the state social insurance pension for incapacity, the insufficient number of years for retirement age under the legislation of the Republic of Lithuania shall be determined in proportion only to the period of insurance (employment) acquired under the legislation of the Republic of Lithuania;
 
2) the periods of receiving a work incapacity (disability) pension awarded under the legislation of the Republic of Lithuania shall be included into the period of insurance (employment) if during the said periods the person has not acquired an insurance (employment) period under the legislation of the other Party;
 
3) a survivor’s pension shall be awarded if the deceased person had acquired the minimum (with regard to his age) insurance (employment) period while working in Lithuania and if the survivor qualifies for this pension under the legislation of the Republic of Lithuania;
 
4) an orphan’s pension shall be awarded if the deceased person, while working in Lithuania, had acquired an insurance (employment) period of at least one year and if no orphan’s pension is awarded under the legislation of ANOTHER STATE.
 
3. Application of the legislation of ANOTHER STATE:
 
1) ...................;
 
2) ...................;
 
3) ...................;
 
4) ................... .
 
 
 
Article 12
 
An insurance (employment) period of less than one year
 
1. If the total duration of the periods of insurance (employment) completed under the legislation of one Party is less than a year and where, on the basis solely of those periods, no right to pension exists under the legislation of that Party, the said Party shall not award a pension for this period in accordance with this Agreement. When calculating the amount of the pension, this insurance period of calendar duration shall be taken into account by the competent body of the other Party under the legislation of which the right to pension is acquired.
 
2. If the insurance (employment) period acquired under the legislation of each State is less than one year and the right to pension is acquired in neither of them, the total insurance (employment) period shall be taken into account by the competent body of the Party under the legislation of which its calculation would result in an insurance (employment) period allowing award of pension.
 
3. If, under paragraph 2 of this Article, the conditions to receive a pension under the legislation of both Parties have been met, the total insurance (employment) period shall be taken into account and the pension shall be awarded and paid by the competent body of the Party under the legislation of which a longer insurance (employment) period has been acquired.
 
 
 
Article 13
 
Work incapacity (disability) pensions
 
When the health condition of a person receiving a work incapacity (disability) pension changes, the following provisions shall apply:
 
1) if the respective person used to received a pension only under the legislation of one Party and has not been subject to the legislation of the other Party since its award, the competent body of the former Party, when awarding a pension under the legislation it applies, must take the changed health condition into consideration;
 
2) if the respective person used to receive a pension only under the legislation of one Party and since its award he has been subject to the legislation of the other Party or he used to receive a pension under the legislation of both Parties, a pension shall be awarded by the competent bodies of both Parties with regard to the changed health condition.
 
 
 
Article 14
 
Loss of breadwinner pensions (orphan’s pensions)
 
1. A loss of breadwinner pension (an orphan's pension) shall be awarded by the Party under the legislation of which a pension to the deceased person was awarded or could have been awarded regardless of whether the residence of the family members of the deceased is in the territory of one Party or in that of the other at the moment of applying for a loss of breadwinner (orphan's) pension.
 
2. If the legislation of either Party provides that the right to pension or its amount shall vary with the number of members of the family, the competent body of that Party shall also take into account the number of members of the family resident in the territory of the other Party.
 
3. Upon death of a person who was awarded a pension under the legislation of one or both Parties, the amount of the loss of breadwinner (orphan’s) pension shall be calculated in accordance with the legislation of the Parties.
 
 
 
Article 15
 
Award of other pensions
 
Other pensions not covered in this Agreement shall be awarded and paid pursuant to the legislation of the respective Party without the application of the provisions of this Agreement.
 
 
 
IV. COOPERATION BETWEEN THE PARTIES
 
 
 
Article 16
 
An administrative arrangement and appointment of competent bodies
 
With the aim of implementing this Agreement, the competent authorities of the Parties shall enter into an administrative arrangement regarding its application and appoint competent bodies.
 
 
 
Article 17
 
Cooperation among the competent bodies
 
1. In order to make sure that the implementation and execution of this Agreement is as smooth as possible, the competent bodies of the Parties shall sign a cooperation arrangement.
 
2. The parties shall, jointly and in accordance with the procedure specified in paragraph 1 of this Article, deal with the issues related to pension awarding, calculation and payment, submission of applications and documents, their forwarding, payment of social insurance contributions, examination of complaints, exchange of information necessary for the aforementioned tasks, as well as with other issues.
 
 
 
Article 18
 
Cooperation and exchange of information
 
1. The Parties' competent authorities and bodies shall directly cooperate on all the issues covered by this Agreement.
 
2. The Parties’ competent authorities shall provide each other with the necessary information on the amendments to their legislation.
 
 
 
Article 19
 
Medical examinations
 
1. A decision on the level of work capacity or the disability group, the cause, the time when it occurred, its term and the degree of working capacity limitation shall be taken by the competent body of the Party under the legislation of which the pension is awarded and paid, with regard to the medical documents issued by the respective bodies of the other Party as well as other documents relevant to the determination of the work capacity level or disability group.
 
2. Personal medical examinations (repeated examinations), requested by a competent body of one Party shall be carried out by a competent body of the other Party on the basis of the residence of the respective persons. If necessary, the competent bodies of the Parties shall supply additional information. The Parties shall not cover each other’s expenses incurred in performing medical examinations (repeated examinations) as well as in supplying additional information.
 
3. The date of the decision on the work capacity level or disability group by a competent body of one Party shall be the day when the working capacity or disability group was established for the person by a competent body of the other Party.
 
 
 
Article 20
 
Lodging of applications
 
1. Every application for a pension award or recalculation submitted under the legislation of one Party shall be also treated as an application lodged under the legislation of the other Party.
 
2. All applications or complaints submitted within a prescribed period to a competent body of one Party under its legislation shall be treated as if they had been submitted within the prescribed period to the competent body of the other Party.
 
 
 
Article 21
 
Submission of documents
 
1. The Parties’ competent bodies shall provide the necessary data on the circumstances significant to the application of this Agreement and take measures to identify such circumstances.
 
2. The documents necessary for pension provision and/or mandatory (state) social pension insurance, issued in the territory of either Party, shall be accepted without legalization and are not subject to the requirements of document legalization and certification (Appostille).
 
3. The procedure of translating the documents issued in the official languages of the Parties shall be established by the competent bodies.
 
 
 
Article 22
 
Protection of personal data
 
Any data about a person sent by one Party to the other shall be used only in application of this Agreement. Personal data shall be handled in compliance with the legislation of the Parties governing legal protection of personal data.
 
 
 
Article 23
 
Currency of pension payment
 
A Party’s competent body shall discharge its obligations under this Agreement in the national currency of the Party in whose territory the pension recipient resides.
 
 
 
Article 24
 
Use of languages
 
When applying this Agreement, the competent authorities and bodies of the Parties shall use the official languages of the Parties and/or the .............................................. language.
 
 
 
Article 25
 
Recovery of social insurance contributions and excess pension amounts
 
1. If a competent body pays a pension recipient an amount above the one he is entitled to, the body, following the legislation of the Party and the terms specified therein, may deduct the excess amount from any other pension payable to the recipient or lodge a request with the competent body of the other Party that the excess amount be deducted from any other payment payable to the pension recipient in accordance with the procedure and terms established in the legislation of the other Party.
 
2. A competent body of a Party shall, pursuant to its legislation and the terms set therein, deduct the amount equal to the excess sum specified in paragraph 1 of this Article. The competent body of the Party shall transfer the deducted amounts to the competent body of the other Party that lodged the request.
 
3. If an amount has been paid to a person who was not entitled to receive a pension under the legislation of either Party or an amount has been paid to a person in excess of the sum he was entitled to, but the person no longer has the right to receive a pension under the legislation of either Party, the excess amount shall be recovered through an arrangement between the competent bodies.
 
4. If a person fails to pay the mandatory social insurance contributions specified in the legislation of a Party, the Party's competent body, on the basis of the legislation of the Party and the terms set therein, shall recover the accrued debt or lodge with the other Party’s competent body a request to recover the debt in accordance with the procedure and terms established in the legislation of the other Party.
 
 
 
V. FINAL PROVISIONS
 
 
 
Article 26
 
Resolution of disputes
 
1. The competent authorities of the Parties shall resolve any issues related to the application of this Agreement.
 
2. Disputes concerning the interpretation of the provisions of this Agreement shall be resolved through consultations and direct negotiations between the Parties.
 
 
 
Article 27
 
Amendment of the Agreement
 
This Agreement may be amended and revised by a written arrangement between the Parties. Amendments come into force pursuant to the procedure laid down in paragraph 1 of Article 29 of the Agreement.
 
 
 
Article 28
 
Transitional provisions
 
1. When establishing the right to pension and calculating it according to this Agreement, the insurance (employment) period completed prior to the date of entry into force of this Agreement shall be included.
 
2. This Agreement does not entitle one to pension payment for the period preceding the entry into force of this Agreement.
 
3. When requested by persons, pensions awarded prior to the date of entry into force of this Agreement may be recalculated in accordance with the provisions of this Agreement. When the amount of a recalculated pension (the sum of the pension amounts awarded under the legislation of the Parties) is smaller compared to the amount of the pension previously paid, the person shall continue to receive a non-recalculated pension.
 
4. A pension that was not awarded or a pension whose payment has been terminated because a person’s citizenship or residence in the territory of the other Party has been established, shall be awarded anew upon that person’s request in accordance with this Agreement from the date it entered into force.
 
5. If the request specified in paragraphs 3 and 4 of this Article is submitted within two years of the entry into force of this Agreement, the rights arising in accordance with the provisions of this Agreement shall be acquired as from that date.
 
6. If the request specified in paragraphs 3 and 4 of this Agreement is submitted after the end of the period of two years following the entry into force of this Agreement, the rights that were not lost or terminated due to statute of limitations shall become effective starting with the day of submitting the request, unless more favourable provisions are provided in the legislation of either Party.
 
7. If an insured event occurs after the entry into force of this Agreement, also when pensions are recalculated or awarded anew based on paragraphs 3 and 4 of this Article, the pension shall be awarded, covering the entire insurance (employment) period shall be assumed by the Party under the legislation of which the said insurance (employment) period was completed.
 
8. The obligation to award a pension in accordance with the legislation in force, to a person concerned for the entire period of insurance (employment) acquired before 1 June 1991 in the territory of the former USSR and/or its occupied territories, except the territory of the Republic of Lithuania and/or the territory of ANOTHER STATE (hereinafter referred to in this Article as “the Soviet insurance (employment) period”), shall be included and a pension for this period of insurance (employment) shall be awarded by a competent body of the Party whose legislation results in a longer period of insurance (employment). If the insurance (employment) periods are of the same length, the said insurance (employment) period shall be included by a competent body of the Party in which the person was insured the last time. When a person who was awarded a pension pursuant to the provisions of this Agreement moves from one Party to the other, also when a pension of a different type is awarded to him or it is awarded anew or recalculated, the competent body that includes the Soviet insurance (employment) period shall not remain the same. Should a person submit additional documents attesting additional Soviet insurance (employment) period, this insurance (employment) period shall be corrected by the competent body that included it.
 
9. When applying the provisions of Article 5 of this Agreement, the date of moving shall coincide with the date of issuance of a permit for residence in the territory of the other Party.
 
 
 
Article 29
 
Entry into force and denunciation of the Agreement
 
1. This Agreement shall be ratified and enter into force on the thirtieth day after the day of exchange of ratification instruments.
 
2. Either party shall have the right to denounce this Agreement by giving notice in written to the other Party through diplomatic channels. This Agreement shall expire six months after either Party delivers a written notice on its termination through diplomatic channels. The rights created on the basis of the provisions of this Agreement shall continue to exist after its denunciation.
 
 
 
Done in duplicate at ................................. in Lithuanian, the language of ANOTHER STATE and the…………………………………language, all texts being equally authentic. In case of divergence of interpretation, the ……………………………. text shall prevail.
 
 
 
 
 
FOR THE REPUBLIC OF LITHUANIA                            FOR ANOTHER STATE