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ERGO Lietuva Life Insurance
This summary of social security and customary employee benefit practice has been prepared in close cooperation with the above Insurope Company.
Social Security and Customary Employee Benefit Practice - 2006
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Social Security |
Customary Practice |
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Persons covered |
All employed, self employed and pensioned residents and their families are covered. |
All employees employed on not temporary basis. |
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Normal retirement |
Old pension age is increasing up to 60 and 62½ for females and males respectively at January 1, 2009 |
The same as social old pension one |
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Salary covered |
No ceilings. |
No ceilings. |
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Old age pension |
Pension is sum of flat basic social pension and contribution years and weighted average covered earnings depending part. |
Defined benefit schemes are usually designed. Lump sum as well, as annuity is available. |
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Early retirement |
Not available. |
Possible with actuarial reduction. |
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Late retirement |
Possible with increase in benefits. |
Possible with actuarial increase in benefits. |
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Lump sum on death |
A lump sum funeral grant in amount of 6 Minimum standard of living (MSL = 125LTL) is payable |
No common practice. |
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Spouse's pension conditions
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Children under 18 or inability to work. The 20% of second group disability benefit is paid. |
No common practice. |
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Orphan's pension conditions
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Payable for dependent children under 18, or 24 if studying. The 25% of second group disability benefit is paid. |
No common practice. |
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Disability benefits conditions
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Age dependent contributions years are required. Accrued basic disability pension based on contribution years to date, plus the accrued earnings related retirement pension. Amount of disability benefit is adjusted due to disability group. |
Lump sum is to be paid. |
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Index linking |
Indexing threw recalculated average covered earnings is done on regular basis. |
Profit share based indexing is available. |
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Medical insurance |
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medical expenses |
All main medical services are covered. No dental care compensation included. Only the basic drugs benefit is paid. | Supplementary Medical Insurance is available. | ||||||||||||
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sickness benefit |
80% of compensatory earnings covered by employer for the first 2 days of sickness and by the Social insurance fund during all the following. 100% of compensatory earnings are covered starting from the 31 day. | |||||||||||||
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maternity |
100% of compensatory earnings are covered the 80 days before the birth and 56 days after. | |||||||||||||
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Workmen's compensation |
Sickness, disability, survivors' pensions and lump sum death benefits are provided under mandatory insurance for work related accidents and illness. |
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Contributions |
On earnings:
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No common practice |
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Vesting |
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Termination indemnity |
18 months termination indemnity is paid to dismissed employees. |
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Taxation |
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Contributions |
Employers contributions are profit tax deductible. Employees contributions are income tax deductible | |||||||||||||
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Benefits |
Employees benefits are taxed only if they were financed by employers contributions. | |||||||||||||
Gelezinio Villko 6a
2600 Vilnius
Lithuania
Valerijus Cvetkovas
+370 52 683057
lt.insurope.com Use this link to access a local country specific site on Insurope from a local market perspective. It may be helpful to refer this site to local subsidiaries and advisers as it also covers the mechanics of multinational pooling from a local perspective in the local language.
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