How is the pension calculated?

 IMPORTANT INFORMATION:

• The amount of pension depends on the work experience accumulated throughout the entire career, the total score, the basic pension indicator and the value of the accounting unit in the year of your retirement.
• The accounting units (points) you gained until 31 December 2018 were calculated according to the Law on Social Insurance Pensions of the Republic of Lithuania.
• If you worked before 1994 but you have not submitted any information to "Sodra " on the work experience obtained during that period, this period has not yet been included in the calculation of your work experience. If you wish to include the work experience you obtained during that period, please submit to "Sodra " the documents certifying this work experience. 
• During the time when you or your employer are providing more details on your salary before 31 December 2018, the acquired rights to the retirement pension may change.
• The amount of the basic pension and the value of the accounting unit (point) are indexed every year to payroll changes.

The right to receive the retirement pension is obtained:

• UPON GAINING WORK EXPERIENCE (by paying the pension social insurance contributions for a set amount of time).
• UPON REACHING THE RETIREMENT AGE.

The retirement pension comprises two parts:

General part of pension + Individual part of pension     

 THE GENERAL PART OF PENSION: 

General part of pension = Basic pension amount x Accumulated work experience / Compulsory work experience*

*In 2022 – 32,5 years                 

• The general part of pension depends on the pension social insurance contributions the person has made and on the basic pension amount for the year of the person’s retirement.
• The basic pension amount is indexed every year.
• One year of work experience is obtained when the employer or employee him/herself pays the pension social insurance contributions from the VALUE of his/her salary or income that is equal to at least 12 minimum monthly salaries (MMS) established for that year.
  • If less social insurance contributions were paid, a proportionate share of the annual work experience will be obtained. It shall not be possible to accumulate more than one year’s worth of work experience during one year.
• The compulsory work experience for the retirement pension in 2022 is 32,5 years and it will be increased every year by half a year until it reaches 35 years in 2027.

IMPORTANT:

The work experience calculation shall also include the periods when a person received social insurance benefits for sickness, vocational rehabilitation, maternity, paternity, child care, unemployment, part-time work, lost working capacity;

The minimum work experience to receive the retirement pension is 15 years. If a person has not accumulated 15 years of work experience, he/she shall not be entitled to receive the retirement pension.

 THE INDIVIDUAL PART OF PENSION: 

Individual part of pension = Point value* X Number of accumulated points  

• The individual part of pension depends on the total accounting units (points) the person has obtained and on the value of the accounting unit (point) for the year of the person’s retirement.
• The value of the accounting unit (point) is indexed every year.
• 1 point is obtained, if the employer or employee him/herself pays the pension social insurance contributions from the VALUE of his/her salary or income that is equal to 12 average monthly salaries (AMS) established for that year. In 2022, the AMS is EUR 1 504,10.
  • If less social insurance contributions were paid, a proportionate share of the accounting unit (point) will be obtained. If more contributions were made, more accounting units (points) will be obtained. The highest amount of points that can be obtained in one year is 5.

IMPORTANT:

When calculating points, the social insurance benefits for sickness, vocational rehabilitation, maternity, paternity, child care, part-time work are also taken into account.

AN EXAMPLE OF THE WORK EXPERIENCE AND POINT CALCULATION: 

* If the employer did not pay an additional contribution to reach the minimum total contribution.

AN EXAMPLE OF PENSION CALCULATION: 

Example: General part: EUR 215,09  Individual part: 4.70 x 19 = €89,30