Social security system in Lithuania

Introduction................................................................................................................................................
1. Regulatory Framework..........................................................................................................................
3
2. Reform of the Pension System..............................................................................................................
6
3. Health Policy.........................................................................................................................................
7
4. Conclusion.............................................................................................................................................
14
INTRODUCTION
The social security system in Lithuania is comprised of the social insurance system, the medical insurance system and the social support system. The most significant components of the State social security system are the social insurance system (including pension insurance) and the medical insurance system. Though the 30 June 1999 Law on Pension Funds came into effect on 1st January 2000 already, private pension funds do not actually function yet. At present, all employees are insured on a mandatory basis, but the reformed pension system started its functioning from 1st January 2004. Employers (i.e. Lithuanian economic entities or individuals that pay wages to employees) are required by the law to pay or withhold contributions in full on behalf of their employees. Additionally, the law also provides for voluntary social insurance.
Applicable Legislation
1. The 13 December 1990 Law No. I-864 "On Support of the Unemployed";
2. The 21 May 1991 Law No. I-1336 "On State Social Insurance";
3. The 28 July 1994 Law No. I-549 "On State Social Insurance Pensions";
4. The 21 May 1996 Law No. I-1343 "On Health Insurance";
5. The 3 June 1999 Law No. VIII-1212 "On Pension Funds";
6. The 23 December 1999 Law No. VIII-1509 "On Insurance of Occupational Accidents and Occupational Diseases";
7. The 12 September 2000 Law No. VIII-1926 "On the Guarantee Fund";
8. The 12 December 2000 Law No. IX-110 "On Social Insurance of Maternity and Illness";
9. The 3 December 2002 Law No. IX-1215 "On Pension Reform".
REGULATORY FRAMEWORK
The Ministry of Social Protection and Labor determines and implements policies regarding social support and social insurance, prepares drafts of legal regulations and adopts legal regulations within its competence. The Board of the State Social Insurance Fund (SODRA) and its territorial departments collect contributions and distribute insurance payments. The Ministry of Health determines medical...

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