Lithuanian Finance Minister doubts pension hikes from 'Sodra' surplus

Lithuania's President and Prime Minister have reached an agreement to raise pensions by utilizing surplus funds from the state social insurance system, known as "Sodra." This proposal aims to provide additional financial support to pensioners.

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Finance Minister says that this measure would only be suitable on the condition that it does not harm state finances. Or the negative impact could be offset by other results.

However, the Finance Minister has expressed reservations about the plan, cautioning that it could negatively impact the nation's fiscal health. He suggested that such a measure would only be appropriate if it does not harm state finances or if any negative consequences are counterbalanced by other positive outcomes.

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President proposes to allocate from 20 percent to 75 percent of the surplus to pensions. Prime Minister proposes that the smallest part would be 15 percent.

President Gitanas Nausėda proposed allocating between 20% and 75% of the surplus to pensions, while Prime Minister Ingrida Šimonytė suggested a minimum of 15%. The Minister of Social Security and Labor, Monika Navickienė, believes the pension increase is feasible and would not jeopardize "Sodra's" reserves or the overall pension system. She clarified that the funds would come from the annual budget surplus, not the system's reserves.

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The Minister says that this would not harm the "Sodra" reserve or the pension system. Pensions would be increased only using "Sodra's" annual budget surplus, not the reserve.