aA
Lithuanian residents who are expected to have the lowest old-age pensions will be advised to make additional contributions to their pension fund or return to the state-run social insurer Sodra, says Finance Minister Vilius Šapoka.
 SoDra
SoDra
© DELFI / Mindaugas Ažušilis

"The second phase of the pension system is far from being perfect, there are places where the efficiency should be improved. Discarding is out of the question. The least efficient place is the 2-percent transfer for those who chose the very minimum. These people risk of not generating the necessary fund for their old age. We have discussed with the prime minister that those who possibly made the choice by mistake at the very beginning – they should be asked about this – may want to make additional contributions or simply return to Sodra. If they are left with the 2 percent, their pension will decrease automatically and they will not accumulate substantial sums," Šapoka said at a news conference on Thursday.

In his words, preparatory work should be started this year, with the changes launched in 2018.

The possibility for second phase participants to return to the Sodra was mentioned by the finance minister and Prime Minister Saulius Skvernelis last December.

At the end of 2016, Lithuania had 21 second phase pension funds, accumulating pensions for 1.255 million participants, indicating an increase by 41,000 or 3.38 percent year-on-year.

|Populiariausi straipsniai ir video

Top court finds restrictions on waste-to-energy plants unconstitutional

The 2018 amendments to Lithuania's Law on Waste Management that imposed a ban on building...

Lidl gives up plastic bags in Lithuania (1)

The German retail chan Lidl has given up plastic bags in Lithuania. Other major retailers say they...

Ukrainians coming to Lithuania to work should be better informed about working conditions

Ukrainians coming to Lithuania to work should be better informed about working conditions after...

Leading Swiss engineering consultancy plans to double its Vilnius team

Engineering consultancy CSD Engineers has announced plans to double the size of its team in Vilnius...

Orlen Lietuva to carry its 1st cargo using rebuilt Renge section

The first freight train will go via the railway section from Lithuania's Mazeikiai to Renge in...

Top news

Landsberis: responsible parties could form coalition after election

Gabrielius Landsberis, leader of the opposition conservative Homeland Union – Lithuanian Christian...

Top court finds restrictions on waste-to-energy plants unconstitutional

The 2018 amendments to Lithuania's Law on Waste Management that imposed a ban on building...

Ex-Pentagon chief Mattis awarded by president

Lithuanian President Gitanas Nauseda awarded 34 Lithuanian and foreign nationals for their merits to...

Lidl gives up plastic bags in Lithuania (1)

The German retail chan Lidl has given up plastic bags in Lithuania. Other major retailers say they...

Google presented Lithuanian initiative to world

The Internet giant Google has presented its video about Debunk EU during the Google News...

|Maža didelių žinių kaina