Based on preliminary calculations, the retirement age would be raised by six months for the first time in 2032.
The proposal was included in the amendments to the Law on the State Social Insurance Pensions and accompanying legislation.
It has also been proposed to gradually increase the required length of service from 30 to 35 years before a person is authorised to receive the old-age pension. Starting from 2017, the required length of service would grow by six months every year and should reach 35 years in 2026. Social Security and Labour Minister Algimanta Pabedinskienė said that the average length of service for which the old-age pension is granted currently stands at 37 years. Therefore, the required length of service will be raised together with the retirement age as people have to remain in the labour market for a longer period.
Moreover, it was proposed to newly regulate funding sources of the state social insurance pensions. Pensions would consist of general and individual parts. The general part would be the main redistributable part of a pension. Meanwhile, the individual part would directly reflect a person’s contributions to the state social insurance system. The general part would act as protection against poverty and would be funded from the state budget. Whereas the State Social Insurance Fund (Sodra) would finance the individual part of a pension tightly related to a person’s contributions.
Parliament will consider the matter again on 24 November.