Republic of Lithuania Law on Compensation for State Social Insurance Old-age Pensions and State Social Insurance Work Incapacity (Invalidity) Pensions


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REPUBLIC OF LITHUANIA
LAW ON COMPENSATION FOR
STATE SOCIAL INSURANCE OLD-AGE PENSIONS AND
STATE SOCIAL INSURANCE WORK INCAPACITY (INVALIDITY) PENSIONS
 
15 May 2014 – No XII-886
Vilnius
 
The Seimas of the Republic of Lithuania,
implementing the ruling of the Constitutional Court of the Republic of Lithuania of 6 February 2012 on the compliance of the provisions of the legal acts of the Republic of Lithuania regulating the recalculation and payment of pensions in an extremely difficult economic and financial situation in the State with the Constitution of the Republic of Lithuania;
taking into consideration the increasing social vulnerability of recipients of the state social insurance old-age pension and the state social insurance work incapacity (invalidity) pension which are the only source of income for them and seeking to protect these persons;
adopts this Law which lays down the procedure of compensation for losses resulting from the reduction of the state social insurance old-age pensions and the state social insurance work incapacity (invalidity) pensions.
 
Article 1. Purpose and application of the Law
1.  The purpose of this Law is to lay down the procedure, amounts and time frame of compensation for the state social security old-age pensions and the state social security work incapacity (invalidity) pensions reduced due to the application of the provisions of paragraphs 1–4, 6 and 7 of Article 6 and paragraphs 1, 2, 4, 5 and 6 of Article 7 of the Provisional Law of the Republic of Lithuania on the Recalculation and Payment of Social Benefits (hereinafter: 'the Provisional Law'). part_33fd674661c649449fae1bf23cdbca7a
 2. This Law shall apply to persons who were paid the reduced state social insurance old-age pensions, state social insurance early old-age pensions (hereinafter: a ‘old-age pension’) or state social insurance work incapacity (invalidity) pensions (hereinafter: a ‘work incapacity (invalidity) pension’) due to the application, in the process of the implementation of the Provisional Law, of the current year's insured income amount approved by the Government of the Republic of Lithuania (hereinafter: the ‘Government’).
 
 
Article 2. Sums and terms of compensation for old-age pensions and work incapacity (invalidity) pensions  
 1. The compensation amount under this Law shall be equal to the difference between the old-age pension or the work incapacity (invalidity) pension awarded to a person and the old-age pension or the work incapacity (invalidity) pension which was calculated by applying the provisions of the Provisional Law referred to in paragraph 1 of Article 1 of this Law, depending on which pension the person received during the relevant period (hereinafter: the ‘compensation amount’).
 2. The compensation amount shall be paid in 2014–2016 in portions set out in paragraphs 3 and 4 of of this Article, with the exception of the cases specified in paragraph 5 of this Article where the compensation amount is paid earlier.
 3. In 2014 the recipients of the old-age pension and the work incapacity (invalidity) pension shall be paid 20 per cent of the compensation amount in the last month of the fourth quarter of 2014.
 4. In 2015 and 2016 the recipients of the old-age pension and the work incapacity (invalidity) pension shall be paid 40 per cent of the compensation amount in equal portions in the last month of the fourth quarter of 2015 and 2016 respectively.
 5. The compensation amount shall be paid in compliance with the time frame and amounts set out in paragraphs 3 and 4 of this Article, except:
1) where the compensation amount calculated for a person does not exceed LTL 100, it will be paid in whole in the last month of the fourth quarter of 2014;
2) where the compensation amount calculated for a person exceeds LTL 100 but, upon the payment of the part thereof during the fourth quarter of 2014, LTL 100 or less remain unpaid, the remaining amount will be paid in the last month of the first quarter of 2015;
3) where the compensation amount calculated for a person exceeds LTL 100 and, upon the payment of the part thereof during the fourth quarter of 2014, more than LTL 100 remain unpaid, but LTL 100 or less make up 40 per cent of the compensation amount, the compensation amounts of 40 per cent each will be paid in the last month of the first quarter respectively.
 
Article 3. Procedure of compensation for old-age pensions and work incapacity (invalidity) pensions
1. The State Social Insurance Fund administration institutions shall calculate compensation amounts and start paying them without requesting applications from the recipients of the pensions and in compliance with the data of the Register of the Republic of Lithuania of Persons Insured with the State Social Insurance and Recipients of State Social Insurance Benefits, with the exception of the cases referred to in paragraph 2 of this Article.part_e73de9f993a442a480350a6322ab7aa2
 2. Persons, who under this Law are entitled to the compensation amount, but the payment of whose old-age pension or the work incapacity (invalidity) pension has been terminated (Article 43 of the Law of the Republic of Lithuania on State Social Insurance Pensions) or the period of awarding the work incapacity (invalidity) pension to whom has expired (paragraph 3 of Article 30 of the Law of the Republic of Lithuania on State Social Insurance Pensions), shall be paid the compensation amount if they, not later than by 31 December 2016, file with the State Social Insurance Fund administration institution which paid the old-age pension or the work incapacity (invalidity) pension an application in the form established by the State Social Insurance Fund Board under the Ministry of Social Security and Labour regarding the payment of the compensation amount together with an identity document or a copy of the identity document attested in accordance with the procedure laid down by legal acts or verify their identity in other ways laid down by legal acts. Having received such an application, the State Social Insurance Fund administration institution shall calculate the compensation amount due to a person and pay it in accordance with the procedure laid down in paragraph 3 of this Article.
 3. If an application is filed pursuant to paragraph 2 of this Article prior to 1 December 2014, the compensation amount shall be paid in portions and within the time frame set out in Article 2 of this Law. If an application is filed after 1 December 2014, but not later than by 31 December 2016, the part of the compensation amount due under this Law shall be paid not later than within three months from the filing date and the rest of the compensation amount shall be paid within the time frame set out in Article 2 of this Law.
 4. The State Social Insurance Fund administration institutions shall deliver compensation amounts in accordance with the procedure laid down by the State Social Insurance Fund Board under the Ministry of Social Security and Labour and applied when delivering state social insurance pensions.
 
Article 4. Appeals against decisions of State Social Insurance Fund administration institutions
Appeals against decisions of the State Social Insurance Fund administration institutions concerning the calculation and payment of compensation amounts may be brought in accordance with the procedure laid down by the Law of the Republic of Lithuania on State Social Insurance.
 
Article 5. Source of financing of old-age pensions and work incapacity (invalidity) pensions which are being compensated
The old-age pensions and the work incapacity (invalidity) pensions shall be compensated for from the State Social Insurance Fund budget. In 2014 compensation amounts shall be paid from the State Social Insurance Fund budget revenue, ensuring not higher (not smaller) income and expenditure deficit (surplus) approved in Annex 2 to the Law of the Republic of Lithuania on the Approval of State Social Insurance Fund Budget Indicators for 2014. In 2015 and 2016 the old-age pensions and the work incapacity (invalidity) pensions shall be compensated for from target appropriations of the state budget allocated to the State Social Insurance Fund budget.
 
Article 6. Proposals to the Government
Acting in pursuance of the ruling of the Constitutional Court of the Republic of Lithuania of 6 February 2012 on the compliance of the provisions of the legal acts of the Republic of Lithuania regulating the recalculation and payment of pensions in an extremely difficult economic and financial situation in the State with the Constitution of the Republic of Lithuania, the Government, when considering a draft of a law on the approval of financial indicators of the state budget and municipal budgets for 2016 and/or subsequent years and a draft of a law on the approval of State Social Insurance Fund budget indicators for 2016 and/or subsequent years, shall estimate the possibility to establish a compensation mechanism for the persons whose state pensions and/or old-age pensions were reduced through the application of the provisions of Article 5 and/or Article 8 of the Provisional Law respectively and, if possible, draw up and submit to the Seimas of the Republic of Lithuania a draft of a law establishing compensation for losses resulting from the reduction of the state pensions and/or the old-age pensions through the application of the provisions of Article 5 and/or Article 8 of the Provisional Law respectively.
 
I promulgate this Law passed by the Seimas of the Republic of Lithuania.
 
 
 
 
PRESIDENT OF THE REPUBLIC                                          DALIA GRYBAUSKAITĖ