M.Navickienė: The list of circumstances to stop pension accumulation would not be exhaustive Business

According to Minister Monika Navickienė, the list of important circumstances would not be exhaustive, it could also include an important reason indicated by the person himself, due to which saving for retirement would complicate his life, for example, if his home is destroyed or there is no longer a purpose to save for retirement.

“We would see two or three main circumstances that we will indicate: the first would be critical illnesses, the second would be a severe disability that would affect either the hoarder, or a member of the hoarder’s family, a minor child,” said M. Navickienė during the Government Hour in the Seimas on Thursday.

According to her, it is still being discussed whether to include in the list of exceptions cases where a person’s home is destroyed and as a result he needs funds.

“We recently had such an example regarding a fire, if it is not insured, wouldn’t it be possible to use this option by terminating the contract earlier. However, we are still coordinating and discussing this circumstance,” said the minister.

According to her, there could be more important circumstances, for example, when a person no longer sees the goal of saving for retirement.

“I would also not rule out the possibility that a person himself could point to a circumstance that, in his opinion, is extremely difficult, or that makes the accumulation pointless, which perhaps we did not think about,” asserted M. Navickienė.

According to her, the ministry will present the final version of the amendments in the second half of April, which will be considered by the Government and then by the Seimas.

At the beginning of March, the Constitutional Court announced that the Pension Accumulation Law does not provide for the possibility for people to terminate the pension accumulation contract for important reasons, which is contrary to the Constitution. As such, the court points to the fundamentally changed circumstances of a person’s life, which makes it extremely difficult to save for retirement.

According to the CT, the law must also determine other cases of ending the accumulation of old-age pensions in special pension funds, as well as the case when the accumulation of pensions is terminated at the initiative of the participant, when there are important reasons.