After the Constitutional Court decided in this way, the Ministry of Social Security and Labor finally registered amendments to the law, which provide for the cases in which the accumulated money can be withdrawn.
They offer to consider not only advanced cancer, but also the need to fix the teeth, when it is not compensated by the Sick Funds, but also the destruction of the house.
The Ministry proposes that the participants of the pension accumulation can take all the accumulated money. Even those that were paid for by all other taxpayers through the state budget. And the total amount of own and other people’s money is really not small.
The Association of Lithuanian Investment and Pension Funds (LIPFA) estimates that currently 1.4 million 7.8 billion have accumulated in the funds of pension accumulation participants. property worth EUR. Thus, one saver has an average of 5,571 euros.
Not only for cancer or diabetes, but also for dental care
The draft amendment to the law proposed by the Ministry of Social Security and Labor foresees a non-exhaustive list of circumstances when people will be able to stop saving and withdraw money.
Such an opportunity is offered for at least one of the following reasons:
- a referral to receive inpatient, outpatient or day center palliative care service has been issued to the accumulation participant or his minor child (adopted child);
- the participant or his minor child (adopted child) has a critical illness;
- 70 percent is set for the participant. and higher lost participation;
- the participant’s minor child (adopted child) has a level of severe disability;
- dental and/or reconstructive surgery services are required for the participant or his/her minor child (adopted child), and they are not compensated;
- after the participant has used the targeted support provided by the municipality, when the only dwelling was affected by a natural disaster or fire;
- in other cases when the reasons for terminating pension accumulation are exceptional.
Although the draft mentions a list of critical diseases and conditions, there is no such official list. The closest thing to it is the minister’s order on serious diseases.
Among these, the list mentions: HIV, multiple sclerosis, conditions after organ transplant operations, chronic circulatory or respiratory failure, end-stage chronic kidney and/or liver failure, congenital and acquired dementia, stage III, IV cancer, diabetes mellitus, etc.
Tax payers money – property of the hoarder?
Some time ago, both the heads of the Ministry of Social Security and Labor and the Bank of Lithuania considered that if it was decided to stop pension accumulation before reaching retirement age, the residents should not have to give all the money that he had accumulated in the fund.
It is said that a person should not be paid the part that was paid for him from the state budget (that is, other taxpayers).
However, judging by the registered draft law, the ministry has changed its position. Thus, a hoarder of other people’s money could fix his teeth if the registered amendments are accepted by the Seimas.
“It is proposed that all pension fund units in the account be converted into money and paid out,” the ministry said in a comment sent to the portal tv3.lt.
Why all taxpayers’ money should be expropriated from those who stop saving, the ministry explained as follows:
“Such a decision is based on the provision of the law itself that the pension assets constituting the pension fund are the joint partial property of the participants of the pension fund, and the participant’s share in the pension fund’s joint property is determined by the number of pension fund units recorded in his pension account, and the provision of the law on inheritance – if at the time of accumulation a person would die, his relatives would inherit the entire accumulated amount.”
Criticizes the vagueness of the amendments
LIPFA director Tadas Gudaitis, commenting on the amendments to the law registered by the ministry, says that the proposed regulation leaves too much room for interpretation.
“The purpose of the II stage is to increase the pension assets of the savers so that the “poverty burden” on the state budget continuously decreases. Accumulators have already earned almost 3 billion from investing. euros, which they might not have at the moment, if they had decided not to save for retirement at the time.
This benefit is as much as 36 percent. of the total 7.8 billion at the end of March property worth EUR. I would like to encourage politicians to strive for the accumulation system to be sustainable, stable and able to continue to ensure maximum financial benefits for those who accumulate,” says T. Gudaitis.
According to the head of LIPFA, stage II is not intended to solve health, housing, other emerging problems, the state has other means, social policy implementation structures and instruments for that.
In turn, withdrawing money prematurely will create even more challenges for those who lack income in the future, both for themselves and for the state.
“An open, “not closed” list of reasons for leaving Tier II creates an additional “playground” for possible manipulations, attempts to exert illegal influence or pressure, and subjective decisions. Uncertainty in this case is a very strong factor that can cause far-reaching negative effects.
It can theoretically become an additional source of chaos and dissatisfaction in society, create a significant additional administrative burden not only for pension savings companies, but also for Sodra, the Bank of Lithuania, other institutions, and courts,” says the head of LIPFA.
Tags: Relevant thousands pension savers withdraw euros earlier
-
