Inclusion into the accumulation system was used as one of the most effective methods to induce people to accumulate if they have not started yet. However, it is not a coercive mechanism because any employed person may refuse accumulation if he does not want or has some other priorities.
The employed persons under 40, who have not started accumulation yet, will be included into the pension accumulation system of the second level from 01 January in the randomly selected pension accumulation company.
I can do nothing and start accumulating pension in the company randomly selected by "Sodra".
If no refusal to take part in the pension accumulation system is received, the pension contributions shall be calculated from the 1st of July of the year of inclusion.
If you decide to participate in the pension accumulation system:
- You will not be able to cancel participation in the pension accumulation system until you attain retirement age or until the premature old-age pension is appointed to you.
- When you attain retirement age (or the premature old-age pension is appointed to you), the resources accumulated in the pension fund will be paid to you in the modes provided in the Law on Pension Accumulation.
I may conclude a contract of pension accumulation with the desired company of pension accumulation.
You may conclude a contract of pension accumulation with the company of pension accumulation of your choice at any time, without waiting for inclusion into the accumulation system in random order.
You may conclude a contract of pension accumulation with the company of pension accumulation of your choice at any time, without waiting for inclusion into the accumulation system, and to select a pension fund acceptable to you. You have to submit an application to the selected company of pension accumulation before 1st of July.
If you refuse to participate in pension accumulation by 1st of July, after this date you would be able to conclude a contract of pension accumulation with the company of pension accumulation of your choice independently.
Amount of contribution of pension accumulation in percent (from the participant’s income, from which national social insurance is withheld)
Amount of contribution of pension accumulation in percent paid from the State budget for behalf of the participant (from the mean of domestic average wages)*
2023 and later
* The domestic average wages, according to which the contribution transferred from the State budget for behalf of the participant in the pension accumulation system is calculated, will be 1 590,30 EUR in 2023 (mean of average monthly gross wages of domestic employees in four quarters announced by the Lithuanian Department of Statistics).
Person earns 1 000 EUR (before taxes) per month and his contribution of pension funds is 3 percent, his pension contribution will be 30 EUR (1 000 x 3 percent = 30 EUR). Another 23,85 EUR (1 590,30 x 1,5 percent = 23,85 EUR) will be transferred from the State budget to the pension fund. A total of 53,85 EUR would be allocated per month.
If you encounter financial difficulties, you will be able to stop paying contributions. Contributions may be suspended for a period of not less than 1 month and not more than 12 months throughout the accumulation period.
The application form must be submitted to your chosen company. In the end of this period, the payment of contributions will be resumed.