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’).

 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:

 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.

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.

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.

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.