backwards Voluntary Social Insurance
Individuals Qualified for Voluntary Social Pension Insurance
Permanent residents of the Republic of Lithuania or any member state of the European Union not younger than 16 years old may be qualified for the state voluntary social pension insurance (further referred to as “voluntary pension insurance”) for the periods only, when they are no covered with compulsory state social pension insurance (further referred to as “compulsory pension insurance”), as well as individuals covered by compulsory pension insurance for the basic part of their state social insurance pension (further referred to as “pension") only, in compliance with respective legislation may be also qualified for the voluntary pension insurance.
Voluntary pension insurance shall be also available to:
- persons uncovered with compulsory pension insurance; they shall be entitled for voluntary insurance for the basic part of their pension, or the basic and supplementary parts of their pension;
- persons covered with compulsory pension insurance for the basic part of their pension only; they may be insured on voluntary basis for supplementary part of their pension.
The above mentioned persons shall be qualified for voluntary pension insurance for supplementary part of their pension only as long as they are covered with compulsory pension insurance for the basic part of their pension.
All and any persons shall be insured by voluntary pension insurance individually.
Rights of Individuals Covered by Voluntary Pension Insurance
Individuals covered by voluntary pension insurance shall be entitled to receive the pensions in pursuance with the Law on State Social Insurance Pensions of the Republic of Lithuania, provided that they are in compliance with requirements for the state social pension insurance record set by the aforementioned Law for the respective type of pension, as well as other conditions provided for therein, have attained the pensionable age as provided by the aforementioned Law, are recognized incapable or partly capable of work (before 1 July 2005 – as disabled). After the death of such individuals, the right to get the survivor's and orphan's pensions shall be passed to the family members of the mentioned individuals.
Contributions
Individuals covered by voluntary pension insurance shall pay respective contributions to a territorial office of the State Social Insurance Fund Board under the Ministry of Social Security and Labour (further referred to as “the Fund Board”) on an individual basis in accordance with the procedure as provided for in their voluntary pension insurance agreement (further referred to as “the insurance agreement”).
Individuals covered by voluntary pension insurance shall pay contributions calculated in accordance with the rates approved by the Law on Approval of the State Social Insurance Fund Board Indicators of the Republic of Lithuania, i.e. for 50 % of their basic pension. Monthly insurance contributions for supplementary part of pension shall be calculated as out of the amount not less than the minimum monthly wages approved by the Government of the Republic of Lithuania, applicable in calculation of the ratio for a person's insured income. The contribution rate for supplementary part of pension shall be 15 % out of the sum declared for social insurance purposes.
An individual covered by voluntary pension insurance shall calculate himself/ herself the contributions payable for a current quarter and transfer them to the state social insurance collection account of a respective territorial office of the Fund Board not later than by the 15th day of the last month of a given quarter.
Where respective contributions are not paid within 3 months after the expiration of a given quarter, the insurance agreement shall be terminated on the initiative of the territorial office of the Fund Board.
Where payment of contributions has been failed due to justifiable reasons, they can be paid for such an overdue period only under a written permission issued by the Director of the territorial office of the Fund Board (in this case, respective default interest shall be applied as provided for by the Law on the State Social Insurance of the Republic of Lithuania).
When an individual covered by voluntary pension insurance commences his/ her career under a respective employment agreement, on membership or service basis, or is engaged in activities according to section 8 of Article 2 of the Law on State Social Insurance of the Republic of Lithuania referred to as “the self-employed person”, the insurance agreement in question shall be terminated as of the date of such employment or commencement of the self-employed activities, or the date of incorporation of a legal entity in the Register of Legal Entities.
Where an individual having concluded an insurance agreement for the basic part or the basic and supplementary parts of his/ her pension is also covered with compulsory insurance for the basic part of his/ her pension, financed by the state, the insurance agreement shall be terminated as on the commencement date of the state-financed insurance, and contributions paid by the individual for the basic part of his/ her pension for the period covered by state-financed insurance shall be returned to such an individual. The contributions paid by such an individual for the supplementary part of his/ her pension for the period also covered by state-financed insurance shall be included into the insured income of such an individual. Upon a request of such an individual covered by state-financed insurance for the basic part of his/ her pension, a new insurance agreement for voluntary pension insurance may be signed for the supplementary part of his/ her pension.
Where an individual who concluded an insurance agreement for the basic and supplementary parts of his/ her pension is also covered with compulsory insurance financed by the state for the basic and supplementary parts of his/ her pension, the insurance agreement shall be terminated as on the date of commencement of the state-financed insurance, and the contributions paid by the individual for the period covered by state-financed insurance shall be returned to such an individual.
Where an insurance agreement is terminated as based on provisions of paragraph 1, clause 9 and clause 16 of the Rules on the Voluntary Social Pension Insurance, the contributions paid shall not be returned, and the period of payment of such contributions shall be included into the respective period of compulsory state social pension insurance and into the insured income, if the individual in question has had any such income pursuant to clause 4.1 of the aforementioned Rules.
Where an insurance agreement is terminated according to provisions of paragraph 3, clause 9 of the aforementioned Rules, the contributions paid until the date of commencement of employment or self-employed person's activities, or the first day of incorporation of the legal entity in the Register of Legal Entities shall not be returned, and the period of payment of such contributions shall be included into respective period of compulsory state social pension insurance and into the insured income, if the individual in question has had any such income pursuant to clause 4.1 of the aforementioned Rules. Where an employed individual or self-employed individual as referred to in section 8 of Article 2 of the Law on State Social Insurance of the Republic of Lithuania had already paid the contributions specified in the insurance agreement for the period after commencement of his/ her employment or self-employment, or the first day of incorporation of the legal entity in the Register of Legal Entities, the contributions paid for this particular period shall be returned 100 %.
Contributions shall be included into the State Social Insurance Fund Budget.
Data on the contributions paid shall be entered on the database of the Register of the Insured Covered by State Social Insurance and Recipients of State Social Insurance Benefits of the Republic of Lithuania.
Insurance Agreement
Individuals shall conclude the insurance agreements with a respective territorial office of the Fund Board. This office must inform the insured within a month in written on the legal acts having come into force which emend the conditions of the insurance agreements and (or) the regulation of order, as well as on the new pension guarantees established thereof.
An insurance agreement shall come into effect as of the date of its signature unless any other date is specified therein.
An insurance agreement shall be made at least for the period of 12 months. Unless the insured notifies on termination of the agreement prior one month of its expiration term, the effectiveness of the agreement shall be extended for an unlimited period. An insurance agreement may be concluded for a term shorter than 12 months, where less than 12 months remains until the date of an individual's qualification for his/ her old-age or work incapacity (before 1 July 2005 – as disability) pension.
Upon a request of an individual covered by voluntary pension insurance, the insurance agreement may be terminated at any time, with a month's prior written notice sent to the territorial office of the Fund Board. Where the person within the period of the effectiveness of the insurance agreement receives (received) a work incapacity (disability) pension, upon a request of an individual or on the initiative of a respective territorial office of the Fund Board and with a consent of an individual, the insurance agreement may be terminated as of the date of the commencement of reception of the aforementioned pension, but not prior to the effectiveness date of the Law on State Social Insurance Pensions as last amended (Official Gazette, No. 71-2555). In this case the contributions paid shall be returned for the period as of the termination date of the insurance agreement.
The form of an insurance agreement shall be set by the Fund Board.
Any disputes in relation to voluntary pension insurance shall be settled by the Fund Board. The insured shall be entitled to appeal against any resolution passed by the Fund Board, in pursuance with the procedure established by the Law on State Social Insurance Pensions and other laws of the Republic of Lithuania.
VOLUNTARY SOCIAL INSURANCE FOR SICKNESS AND MATERNITY BENEFITS
Agreement Conclusion Procedure
Permanent residents of the Republic of Lithuania or any member state of the European Union not younger than 16 years old shall be qualified for the state social insurance for sickness and maternity benefits on voluntary basis (further referred to as “the voluntary insurance for benefits”), provided:
- they are not covered with the compulsory sickness and maternity social insurance;
- they have not attained their retirement age;
- they have not been recognized incapable or partly capable of work (disabled) irrespective of the granted pension.
Agreements of voluntary insurance for sickness and maternity benefits shall be concluded with a respective territorial office of the State Social Insurance Fund Board under the Ministry of Social Security and Labour (further referred to as “the Fund Board”), according to the insured person's place of permanent residence. Males shall be entitled to making agreements for sickness benefits, and females – to making agreements for sickness and maternity benefits.
Agreements for voluntary insurance benefits shall be concluded for a period of one calendar year. Such an agreement may be further extended for the next year:
- upon the insured person's request;
- unless the insured person expresses his/ her wish for termination of the agreement with one month's prior written notice.
A voluntary agreement for benefits shall be invalid in the following cases:
- after the expiration of the insurance period specified in the agreement;
- the agreement is terminated by the insured himself/ herself;
- the agreement is terminated upon the decision passed by the Director of the territorial office of the Fund Board.
The insurance agreement is terminated upon the decision of the Director of the territorial office of the Fund Board in the following cases:
- the insured fails to pay his/ her insurance contributions for two quarters;
- the insurance conditions have changed, and the insured does not agree to accept such new conditions;
- the insured becomes one of the persons listed in parts 1 and 2 of Article 4 of the Law on State Social Insurance, and such an individual fails to renew the voluntary insurance agreement within 12 months after the suspension thereof;
- the insured attains his/ her age of retirement;
- the insured is acknowledged incapable of partly capable of work.
After the termination of a respective insurance agreement, the territorial office of “Sodra” must notify the insured in writing hereof.
Conditions for Granting and Payment of Benefits
Benefits shall be granted and paid out by the territorial offices of the Fund Board on the basis of incapacity for work or maternity leave certificates issued in accordance with Rules for Issuing Incapacity for Work and Maternity Leave Certificates approved by the Minister of Health and the Minister of Social Security and Labour on 30 June 2005 by Order No. V-533/A1-189 (Official Gazette, 2005, No. 83-3078).
The incapacity for work certificates are issued by respective health care institutions upon the submission of voluntary insurance agreements for sickness and maternity benefits.
Sickness and maternity benefits shall be granted and payable to the insured persons by the territorial offices of the State Social Insurance Fund Board in the following cases:
- short-term loss of working capacity occurred within at least 6 months after the date of effectiveness of insurance agreement;
- all insurance contributions for the 6 month period have been paid in full;
- sickness or maternity leave has started within the effective term of insurance agreement.
Sickness benefits shall be payable to the insured in the following cases:
- when the insured falls sick;
- when the insured is injured.
Maternity benefits shall be payable:
- as soon as the maternity leave is granted to an insured woman.
Sickness and maternity benefits shall be payable if they are applied for not later than within 6 months after:
- the sickness is over;
- the date of expiration of the maternity leave.
In case of death of the insured person, the benefit unreceived due to his/ death shall be payable to the persons to whom the property of the decedent is transferred by inheritance after they submit a certificate of the right of inheritance.
Contribution Amount
Upon conclusion of the insurance agreement for sickness and maternity benefits, the insured person shall select the amount of insurance contributions for a calendar year. Although, the contribution may not be:
- less than LTL 10 per month;
- in excess of LTL 200 per month.
Contributions shall be payable at least once in a quarter. They must be transferred on the last working day of the current quarter at the latest.
The insured may pay his/ her insurance contributions in:
- a post office;
- a banking institution.
Contributions shall be paid for the entire calendar month. The amount of monthly contributions may not be changed throughout the same calendar year.
Insurance contributions may be paid or not paid for the months of sickness. Where the insured person has failed to pay his/ her insurance contributions within the months of his/ her sickness, calendar months of sickness may not be included into the benefit insurance term.
EXAMPLE:
A sickness benefit has been paid to the insured person for the period from the 1st to 9th of July. Such a person has failed to pay the insurance contributions for this month. Thus the month of July will be excluded from the term of voluntary insurance for sickness benefits.
Where the insured person is willing to pay contributions for the months of his/ her sickness, such months will be included into the term of voluntary insurance for sickness benefits.
EXAMPLE:
A sickness benefit has been paid to the insured person for the period from the 1st to 9th of July. Such a person has also paid his/ her insurance contributions for this month. Thus the month of July will be included into the term of voluntary insurance.
Benefit Payment Duration
The duration for payment of a benefit is related to the duration of payment of insurance contributions. A person who has paid contributions for a longer period is entitled to the reception of benefits also for a longer period. The minimum term for payment of contributions is 6 months. A benefit shall be payable for the calendar days specified on the incapacity for work certificate, although the duration of the benefit payment may not exceed the term binding according to the insurance contribution payment period.
Dependency of sickness and maternity benefit payment duration on the duration of contribution payment period
| Contribution Payment Duration (by months) | Benefit Payment Duration (by days) |
| 6 | 10 |
| 9 | 15 |
| 12 | 20 |
| 15 | 25 |
| 18 | 30 |
| 21 | 35 |
| 24 | 40 |
| 27 | 45 |
| 30 | 50 |
| 33 | 55 |
| 36 | 60 |
| 39 | 65 |
| 42 | 70 |
| 45 | 75 |
| 48 | 80 |
Each time, upon granting of a benefit, the number of benefit payment days shall be summed up for the entire insurance period.
EXAMPLE:
After making a voluntary sickness benefit insurance agreement for a period of one year, and after 6 calendar months of insurance had passed, a person fell ill and was on the sickness leave for 15 days. The sickness benefit to such a person is paid for 10 calendar days of sickness. If the same person falls ill again after 9 insurance months, his/ her sickness benefit will be payable for the entire period specified on the incapacity for work certificate, although not exceeding 5 calendar days of sickness, as at falling ill after 9 months of insurance, the sickness benefit is payable for 15 calendar days of illness at longest.
A woman has made a voluntary insurance agreement for sickness and maternity benefits and after 12 months of such insurance a maternity leave was granted to her. The maternity benefit to such a woman will be paid for 20 calendar days.
Where an insured person attains his/ her age of retirement or is recognized the disabled during his/ her sickness, the respective benefit shall be payable thereto for all calendar days of his/ her sickness established according to the contribution payment term.
EXAMPLE:
A person had been paying insurance contributions for 9 months in accordance with the voluntary insurance agreement for sickness benefits. In the 10th month of such agreement, he/ she fell ill and stayed on the sickness leave for 15 days. On the 12th day of his/ her sickness he/ she reached his/ her age of retirement. In this case the sickness benefit is paid for all 15 calendar days of illness, and the voluntary insurance agreement is terminated on the date of reaching his/ her retirement age.
A person fell ill after 12 months of insurance and stayed on the sickness leave for 30 days. On the 10th day of illness he/ she was recognized the disabled. The sickness benefit to such a person is payable for 20 calendar days of illness, i.e. for the number of days qualified after 12 months of paying contributions. The voluntary insurance agreement will be terminated as of the date of establishment of respective disability category for that person.
Amount of Benefits
The amount of payable benefits depends on the amount of contributions. The amount of contributions shall be chosen by the insured person himself/ herself at the moment of making the insurance agreement for sickness and maternity benefits.
Relation between the Contribution Amount and Benefit Amount
Amount of Sickness and Maternity Benefits (in Litas)
| Monthly Contribution Amount (LTL) | Benefit Amount for One Day of Sickness (LTL) |
| 10 | 8.6 |
| 20 | 17.1 |
| 30 | 25.7 |
| 40 | 34.3 |
| 50 | 42.9 |
| 60 | 51.4 |
| 70 | 60.0 |
| 80 | 68.6 |
| 90 | 77.1 |
| 100 | 85.7 |
| 110 | 94.3 |
| 120 | 102.9 |
| 130 | 111.4 |
| 140 | 120.0 |
| 150 | 128.6 |
| 160 | 137.1 |
| 170 | 145.7 |
| 180 | 154.3 |
| 190 | 162.9 |
| 200 | 171.4 |
Upon any change in the contribution amount, the benefit amount shall also change proportionally.
EXAMPLE:
In accordance with the voluntary insurance agreement for sickness benefits, an insured person has been paying monthly contributions amounting to LTL 30 for 12 months. By extending the insurance agreement for the second calendar year, such a person has undertaken to pay LTL 40 as monthly insurance contributions. After 15 months of insurance, such a person fell ill and stayed on the sickness leave for 25 days. In paying out his/ her sickness benefit, such a benefit will amount to LTL 25.7 per day for 20 calendar days, and LTL 34.3 for the remaining 5 calendar days of sickness.
Contribution periods for voluntary benefit insurance, as well as periods of benefit payment shall not be included into the social insurance period.
Amounts of paid contributions and amounts of paid-out benefits may not be included into the insured income at calculation of social insurance pensions and benefits.
Where a person covered by voluntary benefit insurance has presented misleading information or is in breach of contractual conditions, he/ she must return all and any unqualified benefits paid out to him/ her.
