LIETUVOS RESPUBLIKOS

LIETUVOS RESPUBLIKOS OFFICIAL TRANSLATION REPUBLIC OF LITHUANIA LAW ON STATE SOCIAL INSURANCE PENSIONS 18 July 1994  No I-549 (As last amended on 10 May 2007 – No X-1115) Vilnius CHAPTER I GENERAL PROVISIONS SECTION ONE PERSONS Article 1. Entitlement to a State Social Insurance Pension 1. The permanent residents of the Republic of Lithuania covered, on a compulsory basis, by state social pension insurance or self-insured during a period specified by this Law shall be entitled to a state social insurance pension. 2. Permanent residents of the Republic of Lithuania shall be the residents of the Republic of Lithuania whose data on the place of residence in the Republic of Lithuania or, in respect of those without a place of residence, on the municipality in which they are resident have been entered in the Residents’ Register of the Republic of Lithuania as well as the aliens permanently resident in the Republic of Lithuania. 3. The citizens of the Republic of Lithuania permanently residing abroad shall be entitled to a state social insurance pension where international treaties establish so or in accordance with the procedure laid down by the Government of the Republic of Lithuania. 4. The foreign citizens and stateless persons permanently residing in Lithuania shall be equally entitled to a state social insurance pension under this Law unless laws of the Republic of Lithuania or international treaties establish other conditions of the provision of pensions to these persons. 5. The citizens of other states and stateless persons permanently residing abroad who were covered, on a compulsory basis, by state social pension insurance or were self-insured during a period specified by this Law shall be entitled to state social insurance pensions under this Law where international treaties of the Republic of Lithuania establish so. Article 2. Persons Covered by State Social Pension Insurance 1. The following persons shall be covered, on a compulsory basis, by state social pension insurance: 1) the persons employed under employment contracts with legal or natural persons, notary candidates (assessors), the persons receiving remuneration for work and holding elected posts in elected organisations on the basis of membership as well as the persons receiving remuneration for work and appointed to constituency, town, region and polling district electoral and referendum commissions ; 2) the state politicians, judges, state officials and civil servants indicated in the Law on the Remuneration of State Politicians, Judges and State Officials and the Law on Civil Service (with the exception of the civil servants indicated in subparagraphs 3 and 5 of this paragraph) as well as the persons receiving remuneration for work and appointed by the Seimas, the Speaker of the Seimas, the President of the Republic or the Prime Minister; 3) officers of the system of the internal service, the Special Investigation Service and the Prisons Department under the Ministry of Justice of the Republic of Lithuania as well as the officials of the agencies and undertakings subordinate thereto; 4) servicemen in the professional military service of the system of national defence and the statutory servants in the civil national defence service at the Second Investigation Department under the Ministry of National Defence; 5) officers of the State Security Department system; 6) the spouses of civil servants and servicemen in the professional military service who have not attained the pensionable age and do not receive the income related to employment relations – during a period when they reside abroad together with a civil servant, where the civil servant has been transferred to a post at a diplomatic mission, consular post of the Republic of Lithuania, mission of the Republic of Lithuania at an international organisation, a foreign state’s institution, international organisation or institution, institution or agency of the European Union, institution established by the European Commission or the Council, organisation established jointly by the European Commission and the Member States of the European Union (consortium), international civil operation or mission, sent on a special mission, or when they reside together with a serviceman in professional military service, where the serviceman in professional military service has been assigned to fulfil military service at a diplomatic mission, consular post of the Republic of Lithuania, mission of the Republic of Lithuania at an international organisation, a foreign state’s or international military or defence institution; 7) the servicemen fulfilling mandatory initial military service in the armed forces of the Republic of Lithuania and servicemen fulfilling alternative national defence service; 8) owners of individual enterprises, members of general partnerships, members of limited partnerships as well as the persons who are engaged in individual activities as defined on the Law on Personal Income Tax, with the exception of the individual activities exercised under a business certificate; 9) the persons engaged in individual activities and holding a business certificate; Version of subparagraph 10 before 1 January 2008: 10) at the choice of a family, a mother (adoptive mother) or a father (adoptive father) who actually raises a child or a child’s guardian raising a child under 3 years of age; Version of subparagraph 10 after 1 January 2008: 10) at the choice of a family, one of the parents (adoptive parents) or a person appointed as a child’s guardian raising a child under 3 years of age; 11) clergymen of traditional and other religious communities and associations recognised by the State as well as the nuns and monks working only in a convent and monastery; 12) one of the parents (adoptive parents) of a person rated as requiring permanent special nursing care, where the parent has not attained the pensionable age, or a person who has been declared, in accordance with the established procedure, a guardian or custodian of the disabled person and who nurses the said person at home. This provision shall also apply to one of the parents, guardian or custodian nursing at home a totally disabled person rated as such before 1 July 2005. 2. The persons indicated in subparagraph 7 as well as subparagraphs 10-12 of paragraph 1 of this Article shall be covered, on a compulsory basis, by state social pension insurance with state funds in accordance with the procedure laid down by the Government of the Republic of Lithuania or an institution authorised by it. The persons indicated in subparagraph 12 of paragraph 1 of this Article shall be insured, on a compulsory basis, with state funds only where they do not receive a state social insurance pension, state pension, social assistance pension, social pension or social assistance pension for the nursing of invalids at home to which they are entitled. 3. Other persons may be covered by state social pension insurance on a voluntary basis at the administration agencies of the State Social Insurance Fund effecting this insurance in accordance with the procedure laid down by the Government. Article 3. Conditions of the Awarding of State Social Insurance Pensions Under this Law, state social insurance pensions shall be awarded to the persons indicated in Articles 1 and 2 provided they meet the requirements of the state social pension insurance record set forth by this Law for the awarding of the appropriate type of a pension and attain the age established by this Law, are rated as incapable or partially capable of work, and upon the death of such persons – to the members of their family. SECTION TWO TYPES OF PENSIONS Article 4. Types of State Social Insurance Pensions 1. As of 1 July, the following state social insurance pensions shall be established: 1) old-age pension; 2) work incapacity pension; 3) survivor’s and orphan’s pension. 2. In accordance with the procedure laid down by this Law, until the expiry of the term of payment or until the awarding of state social insurance old-age or work incapacity pensions in replacement thereof, the following pensions shall continue to be paid: 1) loss of breadwinner’s pensions awarded to the persons deceased before 1 January 1995 in accordance with the procedure effective before 1 January 1995 (hereinafter referred to as “loss of breadwinner’s pensions”); 2) retirement pensions awarded before 1 January 1995 (hereinafter referred to as “retirement pensions); 3) invalidity pensions awarded before 1 July 2005 (hereinafter referred to as “invalidity pensions”); Article 5. Right to Choose the Type of a Pension 1. The persons to whom invalidity pensions continue to be paid after 1 July 2005 in accordance with the procedure laid down by this Law and who are at the same time entitled to receive the old-age pension shall be paid the larger pension or one of these pensions at their own choice. Survivor’s or orphan’s pensions shall be paid alongside with old-age or invalidity or work incapacity pensions unless otherwise provided by laws. The persons who are entitled at the same time to receive both state social insurance survivor's and orphan's pensions shall be awarded the larger pension or one of these pensions at their own choice. Version of paragraph 2 before 1 July 2007: 2. The persons who are entitled to receive or who receive either state loss of breadwinner's pensions or state social insurance loss of breadwinner's pensions for a breadwinner who deceased before 1 January 1995 and who are entitled at the same time to receive the state social insurance old-age, work incapacity, invalidity, retirement, survivor's or orphan's pension shall be paid one of these pensions at their own choice, with the exception of the orphan's pension, which shall be paid together with the loss of breadwinner's pension for a parent who deceased before 1 January 1995. Version of paragraph 2 after 1 July 2007: 2. The persons who are entitled to receive or who receive either state loss of breadwinner's pensions or state social insurance loss of breadwinner's pensions for a breadwinner who deceased before 1 January 1995 and who are entitled at the same time to receive the state social insurance old-age, work incapacity, invalidity, retirement, survivor's or orphan's pension shall be paid one of these pensions at their own choice, with the exception of the orphan's pension, which shall be paid together with the loss of breadwinner's pension for the other parent who deceased before 1 January 1995. 3. The persons entitled to receive a state social insurance pension shall not lose the right to receive other state pensions as well as non-state pensions unless otherwise provided by laws. SECTION THREE STRUCTURE OF PENSIONS Article 6. Structure of State Social Insurance Pensions Version of paragraph 1 before 1 July 2007: 1. A state social insurance pension shall consist of the basic part and the supplementary part. Version of paragraph 1 after 1 July 2007: A state social insurance pension shall consist of the basic part and the supplementary part as well as a bonus for the length of the record. 2. The basic part of a state social insurance pension shall guarantee the minimum provision with pensions of the persons having the obligatory state social pension insurance record and fulfilling other conditions established by this Law. Version of paragraph 3 before 1 July 2007: 3. The measure of amount of the basic part of a state social insurance pension shall be the state social insurance basic pension (Article 13). Version of paragraph 3 after 1 July 2007: 3. The measure of amount of the basic part of a state social insurance pension and a bonus for the length of the record shall be the state social insurance basic pension (Article 13). Version of paragraph 4 before 1 January 2008: 4. The supplementary part of a state social insurance pension shall ensure a supplementary provision with pensions of the persons listed in subparagraphs 1-7 of paragraph 1 of Article 2 and covered by state social pension insurance as well as of the persons indicated in subparagraph 8 of paragraph 1 of Article 2 provided they are covered, on a compulsory basis, by state social pension insurance to receive the supplementary part of a pension, taking into account these persons’ insurance record and the insured income earned during the period of insurance (self-insurance). Version of paragraph 4 after 1 January 2008: 4. The supplementary part of a state social insurance pension shall ensure a supplementary provision with pensions of the persons listed in subparagraphs 1-7 and 10 of paragraph 1 of Article 2 and covered by state social pension insurance as well as of the persons indicated in subparagraph 8 of paragraph 1 of Article 2 provided they are covered, on a compulsory basis, by state social pension insurance to receive the supplementary part of a pension, taking into account these persons’ insurance record and the insured income earned during the period of insurance (self-insurance). 5. A bonus for the length of the record shall ensure a supplementary provision with pensions of the persons who have acquired a state social pension insurance record of over 30 years. SECTION FOUR Source of the Payment of Pensions Article 7. Source of the Payment of State Social Insurance Pensions State social insurance pensions shall be paid from the budget of the State Social Insurance Fund. SECTION FIVE STATE SOCIAL PENSION INSURANCE RECORD Article 8. A Person’s State Social Pension Insurance Record 1. An insured person's state social pension insurance record shall comprise the person's state social pension insurance record acquired while working under an employment contract or on the basis of membership or service and the person's state social pension insurance record acquired while the person was self-employed. 2. The state social pension insurance record shall be acquired by the persons listed in subparagraphs 1-5 of paragraph 1 of Article 2 while working under an employment contract or on the basis of membership or service.  This record shall comprise: 1) the period during which these persons pay themselves the contributions of state social insurance pension insurance as established by law for them or such contributions are paid or must be paid for them; 2) the period during which these persons receive sickness (including those paid by the employer during sickness), maternity, paternity, maternity (paternity) or vocational rehabilitation benefits paid under the Law on Sickness and Maternity Social Insurance, benefits for illness resulting from an occupational accident or occupational disease paid under the Law on Social Insurance of Occupational Accidents and Occupational Diseases and unemployment social insurance benefits paid under the Law on Unemployment Social Insurance. The period during which unemployment benefits were paid to the persons insured against unemployment under the provisions of the Law on Support of the Unemployed in force before 1 January 2005 shall also be included into the state social pension insurance record. The benefits listed in this subparagraph shall hereinafter in this Law be referred to as state social insurance benefits and unemployment social insurance benefits. The period during which these benefits were received shall be included only for the persons covered on a compulsory basis, in accordance with the procedure laid down by laws, by sickness and maternity social insurance, social insurance against occupational accidents and occupational diseases as well as unemployment social insurance (before 1 January 2005 – social insurance against unemployment). Version of paragraph 3 before 1 January 2008: 3. The time periods during which the persons listed in subparagraphs 6 and 7 of paragraph 1 of Article 2 were covered by state social pension insurance shall be held equivalent to a person's state social pension insurance record acquired while working under an employment contract or on the basis of membership or service. This period shall also be held equivalent to the periods during which the persons indicated in subparagraph 8 of paragraph 1 of Article 2 were covered, on a compulsory basis, by state social pension insurance to receive the supplementary part of a pension. In respect of the persons listed in subparagraph 7 of paragraph 1 of Article 2, the time periods of state social pension insurance shall be held equivalent to a person's state social pension insurance record acquired after 1 January 2005 while working under an employment contract or on the basis of membership or service. Version of paragraph 3 after 1 January 2008: 3. The time periods during which the persons listed in subparagraphs 6, 7 and 10 of paragraph 1 of Article 2 were covered by state social pension insurance shall be held equivalent to a person's state social pension insurance record acquired while working under an employment contract or on the basis of membership or service. This period shall also be held equivalent to the periods during which the persons indicated in subparagraph 8 of paragraph 1 of Article 2 were covered, on a compulsory basis, by state social pension insurance to receive the supplementary part of a pension. In respect of the persons listed in subparagraph 7 of paragraph 1 of Article 2, the time periods of state social pension insurance shall be held equivalent to a person's state social pension insurance record acquired after 1 January 2005 while working under an employment contract or on the basis of membership or service. In respect of the persons listed in subparagraph 10 of paragraph 1 of Article 2, the time periods of state social pension insurance shall be held equivalent to a person's state social pension insurance record acquired after 1 January 2008 while working under an employment contract or on the basis of membership or service. 4. The period during which the state social insurance invalidity and work incapacity pensions awarded under this Law or under the pension laws in force in the Republic of Lithuania before 1 January 1995 were received until attaining the pensionable age (Articles 21 and 57) shall be held equivalent to the state social pension insurance record acquired while working under an employment contract or on the basis of membership or service when awarding old-age pensions for the first time or when awarding old-age pensions in the cases specified in Article 42 of this Law. 5. The persons listed in subparagraphs 8 and 9 of paragraph 1 of Article 2 shall acquire the state social pension insurance record during self-employment, with the exception of the persons indicated in subparagraph 8 who shall be covered, on a compulsory basis, by state social pension insurance to receive the supplementary part of a pension (paragraph 3 of this Article). The insurance record acquired during self-employment shall comprise the period during which the persons listed in subparagraphs 8 and 9 of paragraph 1 of Article 2 pay the compulsory state social insurance pension contributions as established for them by law or during which such contributions are paid for them. Version of paragraph 6 before 1 January 2008: 6. The periods during which the persons listed in subparagraphs 10-12 of paragraph 1 of Article 2 were covered, on a compulsory basis, by state social pension insurance with state funds shall be held equivalent to a person's state social pension insurance record acquired during self-employment. The periods of the service which is indicated in subparagraph 7 of paragraph 1 of Article 2, where they occurred before 1 January 2005, when in accordance with the procedure laid down by the legal acts then in force servicemen of mandatory continuous initial military service and of alternative national defence service were insured with state funds only for the state social insurance basic pension, shall also be held equivalent to this insurance record. Version of paragraph 6 after 1 January 2008: 6. The periods during which the persons listed in subparagraphs 11 and 12 of paragraph 1 of Article 2 were covered, on a compulsory basis, by state social pension insurance with state funds shall be held equivalent to a person's state social pension insurance record acquired during self-employment. The periods of the service which is indicated in subparagraph 7 of paragraph 1 of Article 2, where they occurred before 1 January 2005, when in accordance with the procedure laid down by the legal acts then in force servicemen of mandatory continuous initial military service and of alternative national defence service were insured with state funds only for the state social insurance basic pension, shall also be held equivalent to this insurance record. Article 9. Calculation of the State Social Pension Insurance Record for the Persons Employed under an Employment Contract or on the Basis of Membership or Service 1. Where the earnings and other income of a person for whom the state social pension insurance record is calculated as acquired while working under an employment contract or on the basis of membership or service on which compulsory state social pension insurance contributions have been paid or had to be paid do not fall, per calendar year, below the aggregate amount of minimum wages for all months, the entire calendar year shall be included in the insurance record. Otherwise, the insurance record for that year shall be considered to be proportionally shorter. 2. In the retirement year, all months prior to retirement shall be included in the state social pension insurance record acquired while working under an employment contract or on the basis of membership or service, where the earnings and other income on which compulsory state social pension insurance contributions have been paid or had to be paid do not fall below the aggregate amount of minimum wages for all these months. Otherwise, the insurance record for the retirement year shall be considered to be proportionally shorter. 3. In the cases specified in paragraphs 1 and 2 of this Article, the minimum monthly salary as valid in the year of the acquisition of the state social pension insurance record and established by a resolution of the Government shall be used to calculate the insurance record. Where the resolution of the Government establishes different amounts of this salary, the minimum monthly salary of the smallest amount shall be used to calculate the state social pension insurance record. Article 10. Calculation of the State Social Pension Insurance Record Acquired while Working under an Employment Contract or on the Basis of Membership or Service for a Period during which a Person Received the State Social Insurance Invalidity or Work Incapacity Pension The insurance record acquired while working under an employment contract or on the basis of membership or service for the calendar year or retirement year during which a person received the invalidity or work incapacity pension shall be calculated as follows: 1) where during that year the person did not receive any remuneration for work and other income from which compulsory state social pension insurance contributions were paid or had to be paid, the period shall be calculated according to the person’s alternative insured income (Article 15) in accordance with the procedure laid down by Article 9 of this Law; 2) where during that year the person received remuneration for work and other income from which compulsory state social pension insurance contributions were paid or had to be paid, the period shall be calculated according to the aggregate amount of the income declared as received and the person’s alternative insured income (Article 15) in accordance with the procedure laid down by Article 9 of this Law. Article 11. Calculation of the State Social Pension Insurance Record during Self-employment 1. The insurance record for a calendar year of a person for whom the state social pension insurance record is calculated as acquired during self-employment shall comprise the number of the months for which he has paid the entire compulsory state social pension insurance contribution as established for him (or such contribution has been paid for him). 2. The state social pension insurance record of the persons holding business certificates shall be included in accordance with the state social pension insurance contributions actually paid to the budget of the State Social Insurance Fund. The state social pension insurance record from 1 January 1995 till 1 January 2004 shall be included in accordance with the same procedure in respect of farmers and their full aged family members who worked on a farm. Article 12. Calculation of the State Social Pension Insurance Record 1. A person's state social pension insurance record shall be calculated by adding up this person's state social pension insurance record for each year acquired while working under an employment contract or on the basis of membership or service and the state social pension insurance record acquired during self-employment. 2. Only one year of the state social pension insurance record may be included per one calendar year. 3. The insurance record hall be expressed in years. Where a part thereof has been calculated in months, the number of the months shall be divided by twelve. SECTION SIX AMOUNTS USED FOR THE CALCULATION OF THE BASIC AND SUPPLEMENTARY PART OF A PENSION Article 13. Amount of the State Social Insurance Basic Pension 1. The amount of the state social insurance basic pension may not be less than 110% of the minimum living standard (MLS). 2. The amount of the state social insurance basic pension shall be approved by the Government on the recommendation of the State Social Insurance Fund Council. Article 14. A Person's Insured Income Version of Article 14 before 1 January 2008: The insured income of the persons listed in subparagraphs 1-5 of paragraph 1 of Article 2 shall be their entire income from which compulsory state social pension insurance contributions have been paid or had to be paid as well as the state social insurance benefits and unemployment social insurance benefits received. The insured income of the persons listed in subparagraphs 6 and 7 of paragraph 1 of Article 2 during the period when they were covered by state social pension insurance to receive both parts of a pension shall be the amounts from which compulsory state social pension insurance contributions have been paid or had to be paid for these persons to the budget of the State Social Insurance Fund to receive the both parts of the pension. The insured income of the persons listed in subparagraphs 8 and 7 of paragraph 1 of Article 2 during the period when they were covered, on a compulsory basis, by state social pension insurance to receive the supplementary part of a pension shall be the amounts from which these persons have paid state social pension insurance contributions to the budget of the State Social Insurance Fund to receive the supplementary part of the pension. Version of Article 14 after 1 January 2008: The insured income of the persons listed in subparagraphs 1-5 of paragraph 1 of Article 2 shall be their entire income from which compulsory state social pension insurance contributions have been paid or had to be paid as well as the state social insurance benefits and unemployment social insurance benefits received. The insured income of the persons listed in subparagraphs 6, 7 and 10 of paragraph 1 of Article 2 during the period when they were covered by state social pension insurance to receive both parts of a pension shall be the amounts from which compulsory state social pension insurance contributions have been paid or had to be paid for these persons to the budget of the State Social Insurance Fund to receive the both parts of the pension. The insured income of the persons listed in subparagraphs 8 and 7 of paragraph 1 of Article 2 during the period when they were covered, on a compulsory basis, by state social pension insurance to receive the supplementary part of a pension shall be the amounts from which these persons have paid state social pension insurance contributions to the budget of the State Social Insurance Fund to receive the supplementary part of the pension. Article 15. A Person's Alternative Insured Income A person’s alternative insured income (hereinafter referred to as “alternative income”) shall be considered to be the insured income of the persons who received the invalidity or work incapacity pension during the period when the said pensions were received. It shall be calculated by multiplying the most recent coefficient (K) of a person’s insured income as recorded in an invalidity or work incapacity pension file by the insured income of the year (average monthly insured income of that year) as valid during the year for which the alternative income is calculated and by the number of the months during which that year the person was paid the invalidity or work incapacity pension. Where the supplementary part of the invalidity or work incapacity pension consisted of two separate parts (paragraph 2 of Article 56), the coefficient (k or K) of a person’s insured income of a part covering the year during which the person received the invalidity or work incapacity pension shall be used to calculate the alternative income. Where the coefficient of a person’s insured income has been changed in accordance with the procedure laid down by this Law, the coefficient valid prior to the first change shall be used. Alternative income shall be used when calculating the a person’s state social pension insurance record and the coefficient of the person’s insured income where state social insurance old-age pensions are awarded in the cases indicated in paragraph 4 of Article 8 of this Law. Article 16. Insured Income of a Year 1. The insured income of the current year shall, at least once per year, be approved by the Government on the recommendation of the State Social Insurance Fund Council when establishing the beginning of the application of this income. The insured income of the current year shall be calculated according to the methods approved by the State Social Insurance Fund Council taking into account the revenue and expenditure of the budget of the State Social Insurance Fund of the respective year or of a respective period of the year. This insured income shall be the basis for calculation of the supplementary part of the state social insurance old-age pension (Article 24). 2. The insured income of the past year shall, not later than until 1 March of the current year, be approved by the State Social Insurance Fund Council on the recommendation of the State Social Insurance Fund Board under the Ministry of Social Security and Labour (hereinafter referred to as “the State Social Insurance Fund Board”). The insured income of a year shall be calculated according to the methods approved by the State Social Insurance Fund Council taking into account the insured income of the current year as valid that year and approved by the Government. The insured income of a year shall be the basis for the calculation of a person’s annual coefficient of insured income (paragraphs 1 and 2 of Article 17). Article 17. Calculation of the Annual Coefficient of Insured Income 1. The coefficient of an insured person’s insured income for 1995-2001 shall be calculated by dividing the person's insured income of a calendar year by the number of the months included for such person in the state social pension insurance record acquired while working under an employment contract or on the basis of membership or service (hereinafter referred to in this Article as “the insurance record”) and by average monthly insured income of that year. The coefficient of an insured person’s insured income for 2002 and every subsequent year shall be calculated by diving the person’s insured income of a respective calendar year by the number of the months included for this person in the insurance record and by the insured income of that year (paragraph 2 of Article 16). 2. Where a pension is awarded prior to the approval of the insured income of the preceding year, the coefficient of a person’s insured income shall be calculated according to the insured income of the year before the preceding year. Upon the approval of the insured income of the preceding year, the pension awarded shall, taking account of this income, be recalculated of the awarding of the pension provided this is of benefit to the recipient of the pension. 3. Where it is expedient to calculate the coefficient of a person’s insured income according to the insured income received by the person during the retirement year, the coefficient of the current year shall be calculated by dividing the insured income received during the person’s retirement year by the number of the months included that year for this person in the insurance record and by the approved insured income of the current year. Upon the approval of the insured income of the retirement year, the pension awarded shall, taking account of this income, be recalculated of the awarding of the pension provided this is of benefit to the recipient of the pension. 4. Where a person who is, on a compulsory basis and in accordance with the procedure laid down by this Law, covered by state social pension insurance to receive the basic and supplementary part of a pension has selected to participate in the accumulation of pensions under the Law on Reform of the Pension System, calculation of the amount of his old-age pension shall involve calculation of his annual coefficient of insured income for every year of participation in the accumulation of pensions by multiplying the annual coefficient of insured income as calculated according to paragraph 1 of this Article by amount c, which is calculated according to formula c = (tp – tk) / tp, where: tp – a portion of the rate of the state social pension insurance contribution for that year established for the supplementary part of the state social insurance old-age pension and specified by the Law on the Approval of the Indicators of the Budget of the State Social Insurance Fund; tk – the rate of the cumulative pension contribution for that year as specified in the Law on the Approval of Indicators of the State Social Insurance Fund Budget. 5. Where during the year for which the annual coefficient of insured income is calculated the persons indicated in paragraph 4 of this Article received (receive) state social insurance benefits and unemployment social insurance benefits, amount c (paragraph 4 of this Article) shall be multiplied by the aggregate amount of a person’s income of that year from which compulsory state social pension insurance contributions have been paid or had to be paid. The state social insurance benefits and unemployment social insurance benefits received that year shall be added to the aggregate amount obtained, and the annual coefficient of insured income shall be calculated in accordance with the procedure laid down in paragraphs 1-3 of this Article. Article 18. Calculation of the Annual Coefficient of Insured Income for a Period during which a Person Received the State Social Insurance Invalidity or Work Incapacity Pension The annual coefficient of insured income of a calendar year or retirement year during which a person received the invalidity or work incapacity pension shall be calculated as follows: 1) if during that year the person received insured income (Article 14), the larger income shall be selected: either the aggregate amount of the insured income received by the person that year (in respect of participants in the accumulation of pensions, this aggregate amount shall be multiplied by amount c as indicated in paragraph 4 of Article 17 of this Law, if necessary provisions of paragraph 5 of Article 17 shall apply), or the alternative income calculated in accordance with the procedure laid down in Article 15 of this Law. The selected larger income shall be divided by the number of the months included in the insurance record that year for a person and by the insured income of that year (average monthly insured income of that year); 2) if during that year a person did not receive insured income (Article 14), the coefficient of the person’s insured income shall be calculated according to alternative income (Article 15), which shall be divided by the number of the months included in the insurance record that year for this person and by the insured income of that year (average monthly insured income of that year). Article 19. Coefficient of a Person's Insured Income 1. The coefficient of an insured person's insured income shall be calculated as the weighted average of annual coefficients based on the twenty-five most favourable calendar years of the person's state social pension insurance record after 1 January 1994 as selected by the person, where the period of insurance was acquired while working under an employment contract or on the basis of membership or service. The procedure for the entry into force of this provision shall be laid down in Article 56 of this Law. 2. If a person's state social pension insurance record acquired while working under an employment contract or on the basis of membership or service is less than the number of years specified in paragraph 1 of this Article, the coefficient of the person's insured income shall be calculated on the basis of the acquired insurance record. 3. If a person’s insurance record consists only of the insurance record acquired during the retirement month, the ratio of the monthly wage established for the insured person under an employment or other contract to the insured income of the current year as valid in the retirement month shall be considered to be the coefficient of insured income. Where no wage has been established, it shall be considered that it is equal to the minimum monthly salary as valid in that month and established by a resolution of the Government. Where different amounts of these salaries have been established – equal to the minimum monthly salary of the largest amount. CHAPTER II STATE SOCIAL INSURANCE OLD-AGE PENSIONS Article 20. Entitlement to the State Social Insurance Old-Age Pension 1. A person shall be entitled to the state social insurance old-age pension if he fulfils all of the following conditions: 1) attains the pensionable age as specified by this Law; 2) has the minimum state social pension insurance record as specified for the old-age pension. 2. A person must meet the requirements set forth in subparagraph 2 of paragraph 1 of this Article on the day he attains the pensionable age or on the day he applies for the pension already after attaining the pensionable age. Article 21. Pensionable Age 1. The pensionable age shall be: 60 years for females and 62 years and 6 months for males. 2. The procedure for the entry into force of this Article shall be laid down in paragraph 2 of Article 57 of this Law. Article 22. Minimum and Obligatory Insurance Record for the Old-Age Pension 1. The minimum state social pension insurance record for the state social insurance old-age pension shall be 15 years. 2. The obligatory state social pension insurance record for the state social insurance old-age pension shall be 30 years as of 1 January 1999 for males and as of 1 January 2004 for females. Article 23. Amount of the Basic Part of the State Social Insurance Old-Age Pension 1. The basic part of the state social insurance old-age pension shall be equal to the state social insurance basic pension provided the person has the obligatory state social pension insurance record for the old-age pension. 2. If a person does not have the obligatory state social pension insurance record for the old-age pension, but has the minimum period of state social pension insurance for the old-age pension, the basic part of the state social insurance old-age pension shall be calculated in proportion to the person’s insurance record by multiplying the basic pension and the person's insurance record and dividing by the obligatory insurance record. Article 24. Amount of the Supplementary Part of the State Social Insurance Pension The supplementary part of the state social insurance old-age pension shall be calculated for the persons entitled to the state social insurance old-age pension and having the state social pension insurance record acquired while working under an employment contract or on the basis of membership or service, according to formula 0.005 x S x K x D, where: S – the person’s state social pension insurance record acquired while working under an employment contract or on the basis of membership or service; K – the coefficient of the person’s insured income (Article 19); D – the insured income of the current year as valid in the month for which the pension is paid and approved by the Government. The Law shall be supplemented with Article 24¹ as of 1 July 2007: Article 24¹. Amount of a State Social Insurance Old-Age Pension Bonus for the Length of the Record The amount of a state social insurance old-age pension bonus for the length of the record shall be calculated by multiplying 3% of the state social insurance basic pension by the sum of every full year of the state social pension insurance record (paragraphs 1-3, 5, and 6 of Article 8, paragraph 1, subparagraphs 1-9 of paragraph 2, paragraphs 3 and 4 of Article 54) exceeding 30 years and acquired before the month of retirement. Article 25. Calculation of the State Social Insurance Old-Age Pension for a Person Awarded the State Social Insurance Old-Age Pension under the Law on the Early Payment of State Social Insurance Old-Age Pensions. In respect of a person who has received the state social insurance old-age pension under the Law on the Early Payment of State Social Insurance Old-Age Pensions (hereinafter referred to as “the early old-age pension”), the amount of the state social insurance old-age pension as calculated in accordance with the procedure laid down by this Law shall be reduced by the amount consisting of 0,4% of the calculated pension multiplied by the number of the full months for which the person has received the early old-age pension. Article 26. Reduction of the Pensionable Age and Obligatory Insurance Record for the Persons Suffering from Hypophyseal Nanism For the persons suffering from Hypophyseal Nanism (midgets), the pensionable age as specified in Article 21 shall be reduced by 15 years, and the obligatory and minimum insurance record as specified in Article 22 shall be reduced by 10 years. Article 27. Increase of the Old-Age Pension due to the Deferred Application 1. Where at a certain time a person becomes entitled to the state social insurance old-age pension under this Law and has the obligatory state social pension insurance record, but he does not take the pension and applies for it later, the pension shall be calculated for him according to the data at the moment of the application and shall be increased by 4% of the calculated amount for each full year lapsed after the person having the obligatory insurance record becomes entitled to the old-age pension. 2. At the request of the person who receives the old-age pension and has the obligatory state social pension insurance record, the payment of the pension may be deferred. In this case, his pension shall be calculated anew according to the data at the moment of the application and shall be increased by 4 percent of the calculated amount for each full year lapsed after the deferment of payment. 3. The payment of pension having been deferred for an incomplete year, the pension shall be paid for the months of the last incomplete year of deferment, but it shall not be increased. 4. If an application for the pension is deferred for more than five years, the pension shall be increased only for five years of deferment. 5. By a decision of the State Social Insurance Fund Council, a larger percentage of the increase of the pension due to the deferred application may be established.  CHAPTER III State Social Insurance WORK INCAPACITY PensionS Article 28. Entitlement to the State Social Insurance Work Incapacity Pension The persons who, in accordance with the procedure laid down by the Law on the Social Integration of the Disabled, have been established a level of capacity for work and who are rated as incapable or partially capable of work (hereinafter referred to as “the persons incapable or partially capable of work”) shall be entitled to the social insurance work incapacity pension where these persons fulfil the conditions established in Articles 30 and 31 of this Law. Article 29. Establishment of a Level of Capacity for Work and Percentage of Lost Capacity for Work 1. A person’s level of capacity for work, reason therefor, time of occurrence, time limit and percentage of the person’s lost capacity for work shall be established by the Disability and Capacity for Work Establishment Office under the Ministry of Social Security and Labour (hereinafter referred to in this Article as “the Office”). Percentage of lost capacity for work shall be entered in a certificate of a level of capacity for work issued to a person.   2. The State Social Insurance Fund Board shall have the right, in accordance with the procedure laid down by legal acts, to dispute decisions of the Office on a level of capacity for work, reason therefor, time of occurrence and time limit thereof. Article 30. Conditions of the Awarding of the Work Incapacity Pension 1. A person for whom a level of capacity for work is established for the first time and who is rated as incapable or partially capable of work shall become entitled to the state social insurance work incapacity pension, provided on the day of rating him as incapable or partially capable of work he has the minimum state social pension insurance record for the work incapacity pension. 2. A person not entitled to the state social insurance work incapacity pension under the condition indicated in paragraph 1 of this Article shall become entitled to it where he has the minimum state social pension insurance record for the work incapacity pension on the day of rating him as incapable or partially capable of work after a repeated examination or on the day of application for the pension. Article 31. Minimum and Obligatory State Social Pension Insurance Records for the Work Incapacity Pension 1. For the persons rated as incapable or partially capable of work, the following minimum state social pension insurance record for the work incapacity pension shall be established: until the person attains 22 years of age – 2 months, upon attaining 22 years of age, the minimum insurance record shall be increased each year by 2 months per year, upon attaining 38 years of age, the minimum insurance record shall be increased each year by six months per year, but may not exceed the minimum insurance record established for the old-age pension. 2. The obligatory state social pension insurance record for the work incapacity pension shall be established as follows: until the person attains 24 years of age – one year, upon attaining 24 years of age, the obligatory insurance record shall be increased each year by 4 months per year, upon attaining 38 years of age, the obligatory insurance record shall be increased each year by one year per year, but may not exceed the obligatory insurance record established for the old-age pension. Article 32. Calculation and Amount of the State Social Insurance Work Incapacity Pension Version of paragraph 1 before 1 July 2007: 1. The state social insurance work incapacity pension shall be calculated for the persons entitled to this pension by summing up the basic and the supplementary parts of the work incapacity pension. When calculating the supplementary part of the work incapacity pension, the period during which unemployment social insurance benefits (before 1 January 2005 – unemployment benefits) were received (subparagraph 2 of paragraph 2 of Article 8) shall be included in the state social pension insurance record, and the unemployment social insurance benefits (before 1 January 2005 – unemployment benefits) received during the period of unemployment as included in the insurance record – in a person’s insured income (Article 14), where this is of benefit to the person.  The same provision shall apply where a person received the unemployment social insurance benefit in the year of retirement due to the loss of capacity for work. Version of paragraph 1 after 1 July 2007: 1. The state social insurance work incapacity pension shall be calculated for the persons entitled to this pension by summing up the basic and the supplementary parts of the work incapacity pension as well as a bonus for the length of the record. When calculating the supplementary part of the work incapacity pension, the period during which unemployment social insurance benefits (before 1 January 2005 – unemployment benefits) were received (subparagraph 2 of paragraph 2 of Article 8) shall be included in the state social pension insurance record, and the unemployment social insurance benefits (before 1 January 2005 – unemployment benefits) received during the period of unemployment as included in the insurance record – in a person’s insured income (Article 14), where this is of benefit to the person. The same provision shall apply where a person received the unemployment social insurance benefit in the year of retirement due to the loss of capacity for work. 2. For the persons who have lost 75-100% of their capacity for work and have the obligatory state social pension insurance record for the work incapacity pension, the basic part of the work incapacity pension shall be equal to 1,5 basic pensions, and for the persons who have lost 60-70% of their capacity for work – to the basic pension. Where a person’s insurance record is shorter than the obligatory insurance record, the basic part of his work incapacity pension shall be calculated by multiplying the amount of 1,5 basic pensions for the persons who have lost 75-100% of their capacity for work and the amount of the basic pension for the persons who have lost 60-70% of their capacity for work by the insurance record acquired by them and dividing by the obligatory insurance record. 3. The supplementary part of the work incapacity pension shall be calculated for the persons who have the state social pension insurance record acquired while working under an employment contract or on the basis of membership or service, in the same manner as the supplementary part of the state social insurance old-age pension (Article 24), by including in the insurance record: 1) a person's entire state social pension insurance record acquired while working under an employment contract or on the basis of membership or service (paragraphs 2 and 3 of Article 8 as well as paragraph 1 and subparagraphs 1-9 of paragraph 2 of Article 54); 2) the number of years left until a person attains the pensionable age established for him (Articles 21 and 57). If the person's state social pension insurance record acquired while working under an employment contract or on the basis of membership or service is shorter than the obligatory state social pension insurance record for the work incapacity pension (Article 31), the insurance record shall not include the total number of years left until the pensionable age, but a proportionately smaller part thereof, which shall be obtained by multiplying the number of the years left until the pensionable age by the state social pension insurance record acquired by the person while working under an employment contract or on the basis of membership or service and dividing it by the insurance record obligatory for the work incapacity pension. 4. The state social insurance work incapacity pension for the persons who have lost 45-55% of their capacity for work shall be calculated in the same manner as for the persons who have lost 60-70% of their capacity for work and shall then be reduced by 50%. Article 32 shall be supplemented with paragraph 5 as of 1 July 2007: 5. A state social insurance work incapacity pension bonus for the length of the record shall be calculated in the same manner as a state social insurance old-age pension bonus for the length of the record (Article 24¹). In respect of the persons who have lost 45-55% of their capacity for work, the bonus thus calculated shall be reduced by 50%.   Article 33. Calculation the State Social Insurance Work Incapacity Pension for a Person who Received the Early Old-Age Pension For a person who had received the early old-age pension earlier or who was awarded the state social insurance work incapacity pension during the period of payment of the early old-age pension, the work incapacity pension shall be calculated in accordance with the procedure laid down by this Law without reducing amount thereof due to the awarding to the person of the early old-age pension prior to the awarding of the work incapacity pension Version of title of Chapter IV before 1 January 2007: CHAPTER IV STATE SOCIAL INSURANCE SURVIVOR'S AND ORPHAN'S (LOSS OF BREADWINNER’S) PENSIONS Version of title of Chapter IV after 1 January 2007: CHAPTER IV STATE SOCIAL INSURANCE SURVIVOR'S AND ORPHAN'S PENSIONS Version of Article 34 before 1 January 2007: Article 34. Entitlement to the Survivor’s or Orphan’s Pension 1. The spouse and children of a deceased person (or a person declared dead or missing in accordance with the established procedure) who was covered by state social pension insurance as well as other persons equivalent to them shall be entitled to the state social insurance survivor's or orphan's pension where the deceased person had been granted the right as established by this Law to receive the state social insurance work incapacity (before 1 July 2005 – invalidity) pension or old-age pension or received one of these pensions. If the person had not received one of the indicated pensions prior to his death, it shall be considered that he had been entitled to the work incapacity (before 1 July 2005 – invalidity) pension or old-age pension (depending on his age), provided he had the minimum state social pension insurance record for this pension on the day of his death. A widow or a widower who did not have children with the deceased spouse shall be entitled to the pension only if at least 5 years have lapsed from the day of marriage registration in accordance with the established procedure to the day of the spouse’s death. 2. The survivor's and orphan's pension shall not be awarded, and the payment of the pension already awarded shall be discontinued, to the persons who, by a court's judgement, have been convicted of a deliberate crime to the deceased for whom this pension is or has been awarded. Version of Article 34 after 1 January 2007: Article 34. Entitlement to the Survivor’s or Orphan’s Pension 1. The spouse and children (adopted children) of a deceased person (or a person declared dead or missing in accordance with the established procedure) specified in Articles 35 and 38 of this Law shall be entitled to the state social insurance survivor's pension (hereinafter referred to as the “survivor’s pension”) or the state social insurance orphan's pension (hereinafter referred to as the “orphan’s pension”) where the person fulfilled the following conditions on the day of his death (of declaring him missing): 1) had acquired the right to receive the state social insurance work incapacity (where the person died before 1 July 2005 – invalidity) pension or old-age pension (depending on the age of the deceased person) or received one of these pensions – work incapacity (invalidity) or old-age pension; 2) the deceased person had acquired the minimum state social pension insurance record or an equivalent record required for the pension of an appropriate type while working in the undertakings, agencies or organisations of Lithuania, EU Member States or the member states of the European Economic Area (with the exception of the political prisoners and deportees rehabilitated in accordance with the procedure laid down by laws of the Republic of Lithuania who acquired a part of their record during unlawful imprisonment or at the place of deportation and who shall not be subject to the requirement of acquisition of the minimum record while working in the undertakings, agencies or organisations of Lithuania, EU Member States or the member states of the European Economic Area). 2. The survivor’s or orphan’s pension shall be awarded to the spouse and children (adopted children) of the persons deceased after the entry into force of the Law on State Social Insurance, i.e., after 1 June 1991, provided a person was a resident of the Republic of Lithuania on the day when his death occurred. 3. The survivor's and orphan's pension shall not be awarded, and the payment of the pension already awarded shall be discontinued, to the persons who, by a court's judgement, have been convicted of a deliberate crime to the deceased for whom this pension is awarded or paid. Version of Article 35 before 1 January 2007: Article 35. Persons Entitled to the Survivor’s Pension 1. One of the following persons shall be entitled to the state social insurance survivor’s pension: 1) a widow or widower who raises the deceased person's children (adopted children) under 18 years of age (full-time pupils of general education and vocational schools – until their graduation, but not longer than until they attain 19 years of age) as well as nurses at home the deceased person's children (adopted children) who are rated as having lost 75-100% of their capacity for work (before 1 July 2005 – Group I invalids), where these children (adopted children) were rated as disabled (before 1 July 2005 – invalids) before attaining 18 years of age and where they are paid the state social insurance orphan’s or orphan’s social assistance pension; 2) a widow or widower who attained the pensionable age or were rated as incapable or partially capable of work (before 1 July 2005 – invalids) while raising the deceased person's children (adopted children) under 18 years of age (full-time pupils of general education and vocational schools – until their graduation, but not longer than until they attain 19 years of age) as well as nursing at home the deceased person's children (adopted children) rated as having lost 75-100% of their capacity for work (before 1 July 2005 – Group I invalids), where such children (adopted children) were recognised as disabled (before 1 July 2005 – invalids) before attaining 18 years of age and where they are paid the state social insurance orphan’s or orphan’s social assistance pension. Entitlement to the survivor’s pension shall be preserved where a widow or widower rated as capable of work after the awarding of the survivor’s pension are again rated as incapable or partially capable of work before the lapse of 3 years of the discontinuation of the payment of the survivor’s pension as well as where a widow or widower rated as incapable or partially capable of work (before 1 July 2005 – invalid) attain the pensionable age during the period of payment of the survivor’s pension; 3) a widow or widower who had attained the pensionable age or had been rated as incapable or partially capable of work (before 1 July 2005 – invalids) prior to the spouse’s death or attained such age or were rated as incapable or partially capable of work (before 1 July 2005 – invalids) within 5 years from the spouse's death. Entitlement to the survivor’s pension shall …