Not everything is so good anymore
Here is the Minister of Social Security and Labor, now a representative of the Democratic Group “For Lithuania” Linas Kukuraitis has said before that things are not so good already.
“According to the proposal, the average age pension will increase by 14 euros faster than required by law. I am not saying that this is an insignificant amount, I am just asking whether such an increase makes it worth promising a bright future, and still change the whole pension calculation system, especially in such a way as to have long-term negative consequences for the credibility of the whole system?
Although this increase in the pension of the rulers is presented as a breakthrough in improving the lives of seniors, such growth is much slower than it was during the previous term, ”the politician shared his remarks.
Member of the Seimas L. Kukuraitis singled out positive aspects before starting to name the mistakes of the pension system.
“The good thing is that it is proposed to increase pensions faster than provided by law. Poverty is also being tackled, at least for those with a long working history of between 15 and 30 years. And that’s good because their poverty rate is high. The system of such small pension bonuses has been tried so far and is still being solved, ”L. Kukuraitis said in the show.
He named on the news radio show who is promised to increase his pensions according to the submitted plan.
“According to the proposal, the pension is mostly for those who have a short length of service – it can rise from 75 percent to 130 percent in three years. And for those who have the largest pensions – from 600 to 700 euros. And for them, pensions would grow by 28 percent in three years, and for those who have a minimum income but long service, their growth in pensions will be 23 percent in 3 years, ”said former Minister L. Kukuraitis.
The politician assured that this would lead to “certain inequalities” in the pension system.
“I would like to promote this the least, with a limited amount of money,” the parliamentarian said in the Open Talk show.
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What needs to change?
Deputy Minister of Social Security and Labor Audrius Bitinas reminded in the show that the pension consists of two parts.
“In my understanding, the fact that there is an individual pension is distributed, that’s fine. For each according to how much he paid. But the biggest problem with us is that the pension system is collapsed. Someone is affected by seniority somewhere, somewhere by contributions. We have calculated how much of the total part of the pension is financed from the state and is influenced by the length of service, and what percentage of the income is the individual part, which is purely the amount paid by the person, ”the interlocutor told the news radio show” Open Talk “.
“It turns out I was surprised myself that the total is as high as 60 percent. No matter how much you study into the system, it won’t have such a significant impact. This thing needs to be changed, ”said Deputy Minister A. Bitin in the show.
“We should go faster”
Vilnius University (VU) prof. Romas Lazutka said he was critical of government plans because they were not brave enough.
“But we are moving in that direction, I basically support them,” R. Lazutka, a lecturer at VU, taught his position.
In his opinion, the government should approach the national pension – to pay the general part of the pension from the state budget to all those who have reached old age.
“Because now those who are supposed to be disabled since childhood remain, have never worked and could not work. They are in old age receiving a welfare pension, which is even poorer. It’s known to have to go faster. The main issue in the discussions is length of service, “said R. Lazutka.
According to the economist, the application of seniority to the whole country is wrong if it is thought to reflect human merit.
“It’s like the one who worked longer, as if it deserved more and should get more. But by no means, “he said.
Ms Lazutka said that all people, regardless of their length of service, should receive a fixed pension.
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