LIETUVOS RESPUBLIKOS

LIETUVOS RESPUBLIKOS Official translation REPUBLIC OF LITHUANIA LAW ON STATE SOCIAL PENSION INSURANCE PENSIONS 18 July 1994  No I-549 (As last amended on 24 April 2009 – No XI-232) 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 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 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 indicated in subparagraphs 1 and 2 of paragraph 1 of Article 4 of the Law on State Social Insurance; 2) the persons referred to in paragraph 4 of Article 5 of the Law on State Social Insurance; 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 professional military service of the system of national defence and the statutory servants in civilian 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 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 or a delegated person, where the latter has been delegated or 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, international institution or an institution of the European Union or a foreign state’s institution, 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.  The spouses of delegated persons shall be covered by insurance only where the remuneration of the delegated person and his social insurance contributions are paid by the delegating institution of the Republic of Lithuania which has delegated the person. A spouse of the President of the Republic who has not attained the pensionable age and who does not receive the insured income – during the term of office of the President of the Republic; 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 by the Law on Personal Income Tax (lawyers, assistant lawyers, notaries, bailiffs and other persons), with the exception of the individual activities exercised under a business certificate (hereinafter referred to as “self-employed persons”), also farmers and their partners as defined by the Law on State Social Insurance (hereinafter referred to as “farmers and their partners”); 9) the persons engaged in individual activities and holding a business certificate; 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 is not in the old-age retirement group, 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, with the exception of the state social insurance survivor's (loss of breadwinner’s) 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 record of state social pension insurance 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 work incapacity (invalidity) pensions are paid 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. 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 awarded 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 1. A state social insurance pension shall consist of the basic part and the supplementary part as well as a bonus for the length of record. 2. The basic part of a state social insurance pension shall guarantee the minimum provision with pensions of the persons having the obligatory record of state social pension insurance and fulfilling other conditions established by this Law. 3. The measure of amount of the basic part of a state social insurance pension and a bonus for the length of record shall be the state social insurance basic pension (Article 13). 4. The supplementary part of a state social insurance pension shall ensure a supplementary provision with pensions of the persons listed in subparagraphs 1-8, 10 and 12 of paragraph 1 of Article 2 and covered by state social pension insurance, taking into account these persons’ record of insurance and the insured income earned during the record of insurance (self-insurance). 5. A bonus for the length of record shall ensure a supplementary provision with pensions of the persons who have acquired the record of state social pension insurance exceeding 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 acquired record 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 and 3-5 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 allowances paid under the Law on Sickness and Maternity Social Insurance, allowances 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 allowances 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 allowances as well as the benefit listed in this subparagraph shall hereinafter in this Law be referred to as state social insurance allowances and unemployment social insurance benefits. The period during which these allowances and 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). *3. The time periods during which the persons listed in subparagraphs 2, 6-8, 10 and 12 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 record shall be held equivalent to the periods preceding 1 January 2009 during which the self-employed 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 subparagraphs 10 and 12 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. The time periods during which the persons referred to in subparagraph 2 of paragraph 1 of Article 2, also the farmers and their partners indicated in subparagraph 8 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 as of 1 January 2009. In respect of the persons indicated in subparagraphs 2 and 8 of paragraph 1 of Article 2, the period during which state social insurance allowances were paid 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. *Note. Provisions of paragraph 3 shall apply after 1 January 2009. 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 old-age retirement 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 state social pension insurance record shall be acquired by the persons referred to in subparagraph 9 of paragraph 1 of Article 2 during self-employment.  The record of insurance acquired during self-employment shall consist of the time period during which these persons pay, on a compulsory basis, the state social pension insurance contributions established for them by a law. The record of insurance acquired during self-employment shall also be held equivalent to the periods during which, prior to 1 January 2009, the self-employed 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. 6. The periods during which the persons listed in subparagraphs 11 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 service of the persons 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 in initial mandatory continuous military service and in alternative national defence service were insured with state funds only for the state social insurance basic pension, the periods during which the persons indicated in subparagraph 10 of paragraph 1 of Article 2 were raising a child under 3 years of age, where they occurred before 1 January 2008, when in accordance with the procedure laid down by the legal acts then in force and at the choice of a family, a mother (adoptive mother), a father (adoptive father) or a child’s guardian raising a child under 3 years of age were insure with state funds only for the state social insurance basic pension, and the periods during which the persons indicated in subparagraph 12 of paragraph 1 of Article 2 were nursing a disabled person at home, where they occurred before 1 January 2008, when in accordance with the procedure laid down by the legal acts then in force one of the parents (adoptive parents), a guardian or custodian of the disabled person who nurses the disabled person at home were insured with state funds only for the state social insurance basic pension, shall also be held equivalent to this record of insurance. 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 record of state social pension insurance 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 record of insurance. Otherwise, the record of insurance 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 record of state social pension insurance 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 record of insurance 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 record of insurance. Where a resolution of the Government establishes different amounts of this salary, the minimum monthly salary of the smallest amount shall be used to calculate the record of state social pension insurance. Article 10. Calculation of the Record of State Social Pension Insurance 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 record of insurance 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 record of insurance 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 record of insurance 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 Record of State Social Pension Insurance during Self-employment 1. The record of insurance for a calendar year of a person for whom the record of state social pension insurance 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 record of state social pension insurance 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 record of state social pension insurance 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 Record of State Social Pension Insurance 1. A person's record of state social pension insurance shall be calculated by adding up this person's record of state social pension insurance for each year acquired while working under an employment contract or on the basis of membership or service and the record of state social pension insurance acquired during self-employment. 2. Only one year of the record of state social pension insurance may be included per one calendar year. 3. The record of insurance shall 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 1. The insured income of the persons listed in subparagraphs 1 and 3-5 of paragraph 1 of Article 2 shall be their entire income (with the exception of the cases provided for in paragraph 2 of this Article) from which compulsory state social pension insurance contributions have been paid or had to be paid as well as the calculated state social insurance allowances and unemployment social insurance benefits. The insured income of the persons referred to in subparagraphs 6, 7, 10 and 12 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 indicated in subparagraphs 2 and 8 of paragraph 1 of Article 2 during the period when they were covered, on a compulsory basis, by state social pension insurance to receive both parts of a pension shall be the amounts (with the exception of the cases provided for in paragraphs 2 and 3 of this Article) from which state social pension insurance contributions have been paid to the budget of the State Social Insurance Fund, also the calculated state social insurance allowances (the insured income of the self-employed persons indicated in subparagraph 8 of paragraph 1 of Article 2 before 1 January 2009 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 amounts from which these persons have paid state social pension insurance contributions to receive the supplementary part of a pension). 2. The insured income of the persons who received income from sports activities, the persons who received income from performing activities and the persons who received income under commission agreements from which in 2009 and 2010 compulsory state pension social insurance contributions at a reduced rate were paid for those years shall be the amounts of received income calculated in proportion to the paid state social insurance contributions: the amount of income received in the appropriate year shall be multiplied by the amount calculated by dividing the appropriate year’s reduced rate of insurers’ and insured persons’ state pension social insurance contributions as applied to the income received from sports and performing activities or the income received under commission agreements (respectively received either from one’s employer or not from one’s employer) by that year’s general rate of state pension social insurance contributions for the insurers and insured persons as established in respect of the income received from sports and performing activities or the income received under commission agreements (respectively received from one’s employer or not from one’s employer). *3. The insured income of farmers and their partners, also other self-employed persons from which in 2009 and 2010 compulsory state pension social insurance contributions at a reduced rate were paid for those years shall be the amounts of received income calculated in proportion to the paid state social insurance contributions: the amount of income received in the appropriate year shall be multiplied by the amount calculated by dividing the appropriate year’s reduced rate of state pension social insurance contributions as applied to the income received by the farmers and their partners as well as the self-employed persons by that year’s general rate of state pension social insurance contributions as established for the farmers and their partners as well as the self-employed persons. *Note. Provisions of paragraph 3 shall apply after 1 January 2009. Version of Article 15 before 1 January 2010: 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 record of a person’s state social pension insurance 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. Version of Article 15 after 1 January 2010: 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, 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 record of a person’s state social pension insurance 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 record of state social pension insurance acquired while working under an employment contract or on the basis of membership or service (hereinafter referred to in this Article as “the record of insurance”) 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 record of insurance 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 record of insurance 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 and where a cumulative pension contribution was transferred to a pension fund from the entire amount of insured income received by him in the appropriate calendar year, 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 approved 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 approved by the Law on the Approval of Indicators of the State Social Insurance Fund Budget. Where the Law on the Approval of the Indicators of the Budget of the State Social Insurance Fund approves several rates of the cumulative pension contribution, the rates approved for an appropriate category of insured persons during separate periods shall apply, and the annual coefficient of these persons’ insured income shall be calculated in accordance with the procedure laid down by paragraph 5 of this Article. *5. Where during the year for which the annual coefficient of insured income is calculated the persons indicated in paragraph 4 of this Article had the insured income from which a cumulative pension contribution was transferred to a pension fund or/and received (receive) state social insurance allowances and unemployment social insurance benefits, the amount c (paragraph 4 of this Article) shall be multiplied by the aggregate amount of a person’s income of that year from which the cumulative pension contribution was transferred to the pension fund. The aggregate amount of the person’s income which was received that year and from which the cumulative pension contribution was transferred to the pension or/and the calculated state social insurance allowances and unemployment social insurance benefits shall be added to the aggregate amount obtained, and subsequently the annual coefficient of insured income shall be calculated in accordance with the procedure laid down in paragraphs 1-3 of this Article. Where several amounts c were calculated in the year for which the annual coefficient of insured income is calculated, the aggregate amount of the person’s income which was received for the appropriated period and from which the cumulative pension contribution was transferred to the pension shall be multiplied by the amount c of that period. The aggregate amounts shall be added up and the annual coefficient of insured income shall be calculated in accordance with the procedure laid down in paragraphs 1-3 of this Article. *Note. Provisions of paragraphs 4 and 5 shall apply after 1 January 2009. 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 record of insurance 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 record of insurance that year for this person and by the insured income of that year (average monthly insured income of that year). Version of Article 19 before 1 January 2010: 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 record of state social pension insurance after 1 January 1994 as selected by the person, where the record of insurance was acquired while working under an employment contract or on the basis of membership or service. The procedure for the entery into force of this provision shall be laid down in Article 56 of this Law. 2. If a person's record of state social pension insurance 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 record of insurance. 3. If a person’s record of insurance consists only of the record of insurance 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, it shall be equal to the minimum monthly salary of the largest amount. Version of Article 19 after 1 January 2010: Article 19. Coefficient of a Person's Insured Income 1. Where a person’s entire record of state social pension insurance acquired while working under an employment contract or on the basis of membership or service consists of the record of insurance acquired after 1 January 1994, the coefficient of a person’s insured income shall be calculated as the weighted average of annual coefficients based on the twenty-five most favourable calendar years of this record of insurance.  2. If a person's record of state social pension insurance acquired while working under an employment contract or on the basis of membership or service after 1 January 1994 is less than the number of years indicated in paragraph 1 of this Article, the coefficient of the person's insured income shall be calculated on the basis of the acquired record of insurance. 3. If a person’s entire record of insurance acquired while working under an employment contract or on the basis of membership or service consists only of the record of insurance acquired during the retirement month, the ratio of the monthly wage established for the insured person under an employment contract or another 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 – the minimum monthly salary of the largest amount. 4. Where a person has a record of insurance acquired by him while working under an employment contract or on the basis of membership or service before 1 January 1994, the coefficients of insured income shall be calculated in accordance with the procedure laid down in Article 56 of this Law. 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 old-age retirement age as specified by this Law; 2) has the minimum record of state social pension insurance 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 old-age retirement age or on the day he applies for the pension already after attaining old-age retirement age. Article 21. Old-Age Retirement Age 1. Old-age retirement 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 Record of Insurance for the Old-Age Pension 1. The minimum record of state social pension insurance for the state social insurance old-age pension shall be 15 years. 2. The obligatory record of state social pension insurance 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 110% of 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 record of state social pension insurance for the old-age pension, but has the minimum record 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 record of insurance by multiplying the amount of 110% of the state social insurance basic pension and the person's record of insurance and dividing by the obligatory record of insurance. Version of Article 24 before 1 January 2010: 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 record of state social pension insurance 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 record of state social pension insurance 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. Version of Article 24 after 1 January 2010: Article 24. Amount of the Supplementary Part of the State Social Insurance Old-Age 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 record of state social pension insurance 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 + 0.005 x S x K x D, where: s – the person’s record of state social pension insurance acquired while working under an employment contract or on the basis of membership or service before 1 January 1994; k – the coefficient of the person’s insured income (Article 56); S – the person’s record of state social pension insurance acquired while working under an employment contract or on the basis of membership or service after 1 January 1994; 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. Article 24(1). 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 Old-Age Retirement Age and Obligatory Insurance Record for the Persons Suffering from Hypophyseal Nanism For the persons suffering from Hypophyseal Nanism (midgets), the old-age retirement 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 per cent 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 1. 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. 2. Entitlement to the state social insurance work incapacity pension shall be preserved when the persons recognised as persons with incapacity for work or partial incapacity for work attain the pensionable age during the period of receiving the state social insurance work incapacity pension.  Where such persons are also entitled to the old-age pension, provisions of paragraph 1 of Article 5 of this Law shall apply. 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 Service”). 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 Service 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 Record 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 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 record. When calculating the supplementary part of the work incapacity pension, the period during which unemployment social insurance benefits (before 1 January 2005 – unemployment allowances) 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 allowances) calculated 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 150% of the basic state social insurance pension, and for the persons who have lost 60-70% of their capacity for work – to 110% of the basic state social insurance 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 150% of the basic state social insurance pension for the persons who have lost 75-100% of their capacity for work and the amount of 110% of the basic state social insurance 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 old-age retirement 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 old-age retirement age, but a proportionately smaller part thereof, which shall be obtained by multiplying the number of the years left until old-age retirement 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 per cent of their capacity for work shall be calculated in the same manner as for the persons who have lost 60-70 per cent of their capacity for work and shall then be reduced by 50 per cent. 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 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 and/or Participated in the Accumulation of Pensions 1. 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 In respect of a person who has received the early old-age pension and who, upon attaining the pensionable age, remains entitled to the state social insurance work incapacity pension (paragraph 2 of Article 28), the amount of the state social insurance work incapacity pension shall be reduced by the amount consisting of 0,4% of the pension multiplied by the number of the full months for which the person has received the early old-age pension. 2. In respect of a participant in pension accumulation who receives the state social insurance work incapacity pension, this pension shall be calculated in accordance with the procedure laid down by this law without reducing amount thereof due to the person’s participation in pension accumulation.  In respect of a person who participated in pension accumulation and who, upon attaining the pensionable age, remains entitled to the state social insurance work incapacity pension (paragraph 2 of Article 28), the annual coefficients of insured income shall be calculated anew by applying respectively provisions of paragraphs 4 and 5 of Article 17 and Article 18 of this Law. CHAPTER IV STATE SOCIAL INSURANCE SURVIVOR'S AND ORPHAN'S PENSIONS 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 La …