Lietuva in brief - 2009-12-17

Dec 17, 2009

As of the beginning of next year, pensions and unemployment benefits will be cut, reports ELTA. On Dec. 9 Seimas approved the transitional law on the recalculation and payment of social benefits. The law will enter into force as of Jan. 1, 2010, and will be valid till Dec. 31, 2011. The opposition proposed its postponement by at least a month, so that people could adapt to the change, but their proposal was rejected by the Seimas. Under the transitional law, pensions of 650 litas (188 euros) and less will not be reduced. Larger pensions will be cut proportionally. Social insurance old-age pensions and disability pensions should be reimbursed once the economic recession is over.

Stepping down from his post as chairman of the board of the State Social Insurance Fund (SoDra), Mindaugas Mikaila says he made the decision on his own and regrets he did not take this step a year earlier, reports ELTA. “This is my personal decision. (…) during the 6.5 years, I gave the system what I could,” he said. SoDra and the social security system need to be reformed, allowed Mikaila. He agrees that younger people are better able to implement these new developments. The fund has been criticized before. Economy Minister Dainius Kreivys called for the Public Procurement Office to punish its leadership for violating procurement rules by purchasing over 1,000 computers, for almost 3.9 million litas (1.1 million euros) last year. Mikaila says he “saw mistakes” in his activities. He will be dismissed from duties on Dec. 21.

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