The Committee on Social Affairs and Labour has endorsed a draft amendment to the Law on Social Insurance Pensions (Nr. XVP-1779(2)), initiated by Members of the Seimas. The proposed changes aim to eliminate pension reductions for a segment of individuals who received early old-age pensions.
The draft legislation seeks to allow individuals who have reached the retirement age and previously received early old-age pensions under specific conditions to have their pensions recalculated without reduction. These conditions include having accumulated 40 or more years of service before December 31, 2011, and being no more than 3 years away from the standard retirement age at the time the early pension was granted. The increase in the standard retirement age meant these individuals received their early pensions for a longer period than initially anticipated.
Under the proposed changes, the old-age pensions (including pensions for individuals with disabilities) of eligible persons would be recalculated from the date they became entitled to these pensions, but no earlier than January 1, 2021. Any arrears in pension payments would be paid out, and the new, higher pension amount would be paid starting no later than June 30, 2027.
The standard retirement age began to be increased in 2012 following amendments to the Law on Social Insurance Pensions. The retirement age for women was increased by 4 months annually, and for men by 2 months annually, until both reached 65 years of age.
The draft amendment will proceed to further deliberation in the Seimas.
