REPUBLIC OF LITHUANIA

 

LAW

 

ON STATE SOCIAL INSURANCE

 

 

CHAPTER I

 

 

General Provisions

 

Article 1. State Social Insurance

 

State  Social  Insurance  shall  be  the  system  of  social

economic means  established by  the State,  which  shall  provide

insured residents  of the Republic of Lithuania, as well as their

family members  in cases  established by  law, with  finances and

services necessary for living if, for reasons established by law,

they are  unable to  subsist on  their  earned  income  or  other

income, or  for valid  reasons  established  by  law,  they  have

additional expenditures.  State Social  Insurance policy shall be

implemented by  organizations concerned with the interests of the

insurers and the insured.

 

Article 2.State Social Insurance Regulations

 

In addition  to this  and other laws, State Social Insurance

shall be controlled by Government-approved State Social Insurance

benefit   Regulations,    Regulations   of    social    insurance

institutions, and Regulations for the drafting and implementation

of the State Social Insurance budget.

 

Article 3. State Social Insurance Payments

 

The following  payments shall  be made from the State Social

Insurance budget:

1) State  pensions, according  to the  Law on Pensions of the

Republic of Lithuania;

2) sickness  allowances, maternity  and child birth benefits,

child care benefits, and funeral grants;

3)  payments   to  the   employment  fund  for  unemployment

insurance;

4) payments  to defray the expenses of medical treatment and

prevention.

 

Article 4. Persons Insured by the State Social Insurance

 

State Social Insurance shall be obligatory for:

1) persons working under employment;

2) deputies  who are  paid  for  work  in  their  respective

councils;

3) persons  who work  for organizations of a military nature

(firefighters,  rescuers,   signalers,  etc.)  if  they  are  not

eligible for special social provisions under other laws;

4) members  of partnerships  including agricultural partner-

ships receiving in them income from work;

5) shareholders  who receive income for their work in a stock

corporation ;

6) members of the College of Barristers;

7) sole proprietors;

8) farmers  and members  of their  families who  are over 18

years of age and who work on the farm.

 

Persons specified  in items  1-6 shall be obligatory insured

by all branches of State Social Insurance specified in Article 3.

Other persons  enumerated in  this Article  shall be compulsorily

insured by  State pension  insurance and  by  other  branches  of

insurance provided  for in this law. They may be insured by other

branches of State Social Insurance on a voluntary basis.

Persons specified  in items  1-6 shall  be  insured  by  the

enterprises, institutions,  or organizations  of which  they  are

employees or members, also they may be insured by themselves.

Persons who  are not  enumerated in  this Article  shall  be

insured by  the branches of insurance provided for in this law on

a voluntary  basis either  individually or  through organizations

which unite them.

 

Article 5. Period of State Social Insurance

 

The period  of State  Social Insurance  shall be  the period

when a  person's contributions  are  being  paid  by  the  person

himself or  are being  paid for  him, as well as any other period

which is  equaled by  law to the period of State Social Insurance

coverage.

 

 

CHAPTER 2

 

 

State Social Insurance Benefits

 

1.Sickness Allowances

 

Article 6. Eligibility for Sickness Allowances

 

Sickness allowances shall be paid:

1) in  the case  of incapacity  for  work  as  a  result  of

sickness or injury;

2) in the case a family member sickness requiring nursing;

3) in the case of an epidemic;

4) during treatment at a prosthetic-orthopedic hospital;

5) in  the case where a person is temporarily transferred to

another  workplace   because  he   or  she   has  contracted   an

occupational disease, tuberculosis, or virus.

Sickness allowances  shall also  be rewarded  to persons who

must  undergo   treatment  in   rehabilitation  institutions  for

tuberculosis or  other serious  diseases which  are enumerated on

the list  approved by  the Ministries  of Health  Care and Social

Security (part 3 of Article 24).

 

Article 7. The Right to Sickness Allowances

 

Insured persons  specified in items 1-6 of Article 4 of this

law shall be eligible for sickness allowances, provided that they

are released from work for reasons set forth in Article 6 of this

law  and therefore have no income from work. This right to obtain

allowances  shall   begin  from   the  first  day  of  employment

(insurance).

Allowances shall be paid according to the general procedure,

provided that the right to receive such allowances is acquired in

the period  of employment (including the probation period and the

day of  dismissal), and within 3 calendar days of leaving the job

voluntarily or  being  dismissed  from  job  with  the  right  to

discharge gratuity.

Persons who  are insured  pursuant to items 1-6 of Article 4

of this  law and  who loose  their  job  shall  be  eligible  for

sickness allowances  due to  disease or injury (item 1 of Article

6), provided that they become incapable of work during the period

when, pursuant  to law,  discharge gratuity,  all wage, or a part

thereof is  payable, and  they are  incapable of  work when  this

period ends.

Sickness allowances shall be paid on the basis of a sickness

certificate which  shall be  issued according  to the established

procedure.

 

Article 8. The Length of Sickness Allowance Payments

 

Sickness allowances  shall be  paid to  insured persons  who

become sick  as a  result of disease or injury (item 1 of Article

6) in  the periods  set forth  in Article  7, beginning  with the

first day that they become unable to work (not including the days

for which  discharge gratuities  or wages  were paid), and ending

with their  recovery from disability or when they acquire invalid

status.

Sickness allowances  for part-time  and seasonal workers who

become sick  during the  period of  employment contract  shall be

payable for  no more  that 30  calendar days after the employment

contract expires.

Allowances for  persons who  are  injured  at  work  or  who

contract  occupational  disease  or  tuberculosis,  and  who  are

employed as  part-time or  seasonal workers  shall be paid in the

manner established in part 1 of this Article.

The length  of sickness  allowance payments  to invalids who

are still  employed shall  be established  by  the  State  Social

Insurance Benefit Regulations.

 

Article 9. Sickness Allowance Payments during the Period of

Vacation

 

If a  person becomes  sick as  a result of disease or injury

during an  annual paid  vacation, allowance  shall be payable for

all sick  days from  work which  are  authorized  by  a  sickness

certificate.

If  a   person  becomes  sick  during  an  unpaid  vacation,

allowance shall  be payable  beginning with the day the person is

to resume working.

 

Article 10. The Amount of Sickness Allowance

 

Sickness allowance  shall be  payable in  the amount  of  80

percent of the sick person's compensatory wage.

If sickness  lasts for more than 30 calendar days, allowance

in the full amount of the compensatory wage shall be payable from

the 31st day of sickness.

A person  who is injured in the workplace or who contracts an

occupational disease  shall be  eligible for sickness allowance in

the amount of his or her full compensatory wage.

Sickness allowances payable under items 1-4 of Article 6 may

not be lower than the minimum wage established by the laws of the

Republic of  Lithuania, and  calculated pro rata to the period of

insured person'sservice or the work done.

 

Article 11. Calculation of Compensatory Wage

 

Wages which  are compensated  by sickness  allowances  shall

comprise the  sum of  all  average  earnings  in  all  places  of

employment wherein the person is insured, not exceeding 5 minimum

wages as  established by  the laws  of the Republic of Lithuania.

The payment  subject  to  compensation  shall  be  calculated  in

compliance with State Social Insurance Benefit Regulations.

In the  event of  injury in the workplace or the contraction

of an  occupational disease,  all average  wage in  the place  of

employment wherein  the incident  occurred shall  be  compensated

for, regardless of earnings in other places of employment.

 

Article 12. Conditions Under Which Allowances Shall not be

Payable

 

Sickness allownaces shall not be payable to:

1)  incapable   of  work  persons  who  were  injured  while

committing an offense;

2) persons  who damage  their own  health or  the health  of

their dependents,  or who  feign sickness, in order to avoid work

or other employment;

3) persons  whose sickness is the result of alcoholism, drug

addiction, or the use of toxic substances.

 

In cases  where a  person  voluntarily  undergoes  inpatient

treatment  for   alcoholism,  drug   addiction,  or  toxicomania,

sickness allowances  shall be  payable  for  no  longer  than  14

calendar days of a calendar year.

Persons  who   violate  the   treatment  or  nursing  regime

administered by a physician, or who, without a valid reason, fail

to report to a physician or to a lawfully established examination

of working-capacity,  shall either  not be paid their allowances,

or shall  have their  allowances  terminated,  according  to  the

procedure established  by  the  State  Social  Insurance  Benefit

Regulations.

 

Article 13. Sickness Allowances for Nursing Family Members

 

Allowances for  nursing sick family members shall be payable

only upon  certification from a physician that the person must be

nursed.

Allowances shall  be paid  for nursing family members for no

longer than 7 calendar days.

Allowances shall  be paid for nursing sick children under 14

years of age for no longer than 14 calendar days.

Allowances shall be paid for nursing inpatient sick children

under 5 years of age for the entire period of nursing.

 

Article 14. Sickness Allowances During Epidemic

 

If a  quarantine  is  being  enforced  in  the  nidus  of  a

particularly dangerous  infection, allowances shall be payable to

employees who are removed from work.

Insured persons  who are  temporarily removed from work by a

State hygienist  because they  are carrying an infection, and who

cannot be  transferred to  another place  of employment, shall be

paid sickness allowances during the entire period of removal from

work; these payments shall be calculated only on the basis of the

compensatory wages which they received in the place of employment

from which they were removed.

When State hygienists enforce regimes in order to confine the

spread of  an infection in childrens' institutions, and a need for

child care  arises as a result, allowances shall be payable in the

same manner  as for  nursing family members, pursuant to part 2 of

Article 13.

 

Article 15. Allowances Payable to Inpatients of Prosthetic-

Orthopedic Hospitals

 

When an  insured person undergoes treatment in a prosthetic-

orthopedic hospital,  allowances shall  be payable for the entire

period of  hospitalization, as  well as  for travel  to and  from

hospital.

 

Article 16. Allowances Payable upon Job Transferral

 

Insured persons  who are temporarily unable to perform their

work as  the result  of occupational  diseases, tuberculosis,  or

because they  are carriers  of an  infectious disease  (item 5 of

Article 6),  but who can perform other work without violating the

prescribed treatment  and thus, pursuant to medical findings, may

be transferred  to another  job, shall be paid allowances for the

entire period  of employment  in the temporary place of work, but

for no longer than two months, and in such an amount that the sum

of the  benefit and  the wage at the temporary place of work does

not exceed the average wage at the original place of work.

 

 

CHAPTER 2

 

 

2. Maternity Allowance

 

Article 17. Maternity Allowance

 

Maternity  allowance  shall  be  payable  to  women  insured

pursuant to  items 1-6  of this  Article from  the  State  Social

Insurance resources.

Maternity allowance shall also be payable to women on child-

care leave.

Women who  go through  child-birth after  28 weeks or more of

pregnancy shall  receive allowances for 70 calendar days preceding

delivery  and  56  calendar  days  after  delivery.  In  cases  of

complicated  deliveries  or  if  more  than  one  child  is  born,

allowance shall be payable for 70 calendar days after delivery.  W

omen who  go through child-birth after 22 weeks of pregnancy shall

be paid  allowance for  28 calendar  days after  delivery (if  the

child is  living, allowance  shall be  payable for  56 days  after

delivery).

Maternity allowance  shall be  paid in  the  amount  of  the

recipient's full compensatory wage.

Women who  are dismissed  from work  as the  result  of  the

liquidation of  an enterprise,  office,  or  organization  during

pregnancy or  maternity leave  shall be paid maternity allowances

in the  manner established  in parts  2 and  3 of  this  Article,

provided that discharge gratuities or wages are not being paid at

that time.

 

3. Child Care Benefits

 

Article 18. Child Care Benefits

 

Child care  benefits from  State Social  Insurance resources

shall be payable :

 

1) if  at least one of the parents is insured by State Social

Insurance pursuant to items 1-6 of Article 4 of this law;

2) if a mother is insured pursuant to items 1-6 of Article 4

of this  law, and  is dismissed  from work  as the  result of the

liquidation of  her place  of employment while she is pregnant or

while she  is on  child-care leave  for a  child under 3 years of

age.

 

Article 19. The Length and Amount of Child Care Benefit

Payments

 

Child care  benefits for  children under  18 months  of  age

shall be  paid for  each child  in  the  amount  of  the  minimum

standard of living.

Child care  benefits for children between the 18 months and 3

years of age shall be paid for each child in the amount of half of

the minimum  standard of living. Child care benefits shall also be

payable if the recipient is employed.

 

Article 20. The Right to Funeral Grant

 

Funeral grant  shall be payable upon the death of the insured

person (Article 4) or his or her dependent.

Upon the death of the insured person, funeral grant shall be

payable to  his or  her family  members or  to  the  persons  who

defraid funeral expenses.

Upon  the  death  of  an  insured  person's  family  member,

benefits shall be payable to the insured person.

Funeral grant  shall not  be payable if funeral expenses are

defraid by the State or local authorities.

 

Article 21. The Amount of Funeral Grants

 

Funeral grant  shall be payable in the amount of 3 times the

minimum standard of living.

 

Article 22. The Payment of Benefits Upon the Death of the

Eligible Recipient

 

Sickness allowance  and maternity  allowance which  are  not

received by the day of death of the recipient shall be payable to

the recipient's family members as well as to sick persons who are

dependents of the recipient.

Child care  benefits for children under 3 years of age which

are not  received by  reason of  death of  the eligible recipient

shall be  payable to  the living parent or to the guardian of the

child.

Such benefits  shall not  be ascribed to property subject to

inheritance.

 

 

CHAPTER 3

 

 

Payments to defray medical treatment

and prevention expences

 

Article 23. Reimbursement of Medical Treatment and

Prevention Expenses

 

Children under 1 year of age of insured persons specified in

Article 4  of this law, as well as insured persons who lose their

jobs  with  the  right  to  discharge  gratuity  or  unemployment

benefits, shall  be reimbursed  for the  cost  of  all  necessary

medicine and  medical treatment  (according to  an approved list)

used during  out-patient treatment  from State  Social  Insurance

resources.

80 percent of the cost of all necessary medicine and medical

treatment (according to an approved list) used during out-patient

treatment  shall   be  reimbursed  from  State  Social  Insurance

resources to:

1) children  between the ages of 1 and 7 of persons specified

in Article  4 of  this law,  as well as to children of said age of

insured persons  who lose  their jobs  with the right to discharge

gratuity or unemployment benefits;

2) not working pensioners who receive State Social Insurance

pensions and who are 65 years of age or older;

3) Group  I and II invalids who are eligible for State Social

Insurance pension.

In case  of an  illness enumerated  in the  official list of

diseases approved  by the  Ministries of  Health Care  and Social

Security, the  insured persons specified in Article 4 of this law

as well as disabled and dependent members of their families shall

be reimbursed  for the cost of all necessary medicine and medical

treatment from State Social Insurance resources.

The list  of necessary  medicine and medical treatment shall

be approved  by the  Ministry of  Health Care and the Ministry of

Social Security.

 

Article 24. Sanatorium Vouchers

 

Expenses  for   sanatorium  vouchers   shall  be  reimbursed

according to  standard daily  prices  for  sanatorium  treatment.

These prices  shall be  approved in the manner established by the

Government of the Republic of Lithuania.

Sick children  under the age of 7 and invalid children under

the age  of 16  of insured persons who are specified in Article 4

of this  law shall  be reimbursed  from  State  Social  Insurance

resources for  the total  standard cost  of the  entire period of

treatment in  a sanatorium, provided that they go to a sanatorium

with a  separate voucher. If they go to a sanatorium with a joint

voucher (for the child and the insured person), 90 percent of the

total cost shall be reimbursed.

After  being   sent  for   final  treatment  for  a  disease

enumerated in  the official list of diseases of the Ministries of

Health Care  and Social  Security, the following persons shall be

fully compensated  for the standard price of sanatorium treatment

from State Social Insurance resources:

1) insured persons specified in items 1-6 of Article 4;

2) persons  who were insured under items 1-6 of Article 4 of

this law  and who  have lost  their  job,  if  they  are  medical

treatment was  administered while receiving discharge gratuity or

sickness allowance granted during the period of employment;

3) persons receiving State Social Insurance pension;

4) dependents  of persons  specified in  items 1-3  of  this

Article.

In other cases, persons specified in items 1-6 of Article 4

shall be eligible for reimbursement of 50 percent of the standard

daily cost  of sanatorium  treatment from  the resources of State

Social  Insurance   ,  whereas  persons  receiving  State  Social

Insurance pensions  shall be  eligible for  reimbursement  of  80

percent of the standard cost.

 

Article 25. Reimbursement for Unpaid Vacations of Blood-

Donors

 

Blood-donors  who   give   blood   gratuitously   shall   be

compensated in  the amount of the average wage of 3 days from the

resources of  the State  Social Insurance.  Blood-donors who  are

paid to  give blood  shall be  compensated for  an average  2-day

wage.

 

Article 26. Reimbursement for Transportation Expenses

 

Insured persons  specified in items 1-6 of Article 4 who are

entitled to acquiring a special car by the appropriate invalidity

examination commissions,  shall be compensated for transportation

expenses in  the amount  of 75  percent of  the  minimum  monthly

standard of living, regardless of whether they have acquired such

a car or not.

 

Article 27. Conditions Under Which Medical Treatment and

Prevention Shall not be Reimbursed

 

Insured persons  shall lose  the right  to compensation from

the  resources  of  the  State  Social  Insurance,  specified  in

Articles 23-26 in cases defined in Article 12.

 

 

CHAPTER 4

 

 

State Social Insurance Finances

 

Article 28. The State Social Insurance Budget

 

State Social Insurance finances of the Republic of Lithuania

shall chiefly  be based on the independent State Social Insurance

budget of the Republic of Lithuania, which is included in neither

the State Budget nor local government budgets.

The budget  of State  Social Insurance  of the  Republic  of

Lithuania and  its annual  statement shall  be  approved  by  the

Government of the Republic of Lithuania.

The  State  Social  Insurance  budget  of  the  Republic  of

Lithuania shall  be drafted  for a  calendar year.  The budget as

well as  its annual  statement shall  be made public according to

the procedure  established by  the Government  of the Republic of

Lithuania.

The  State  Social  Insurance  budget  of  the  Republic  of

Lithuania shall  be drafted  and submitted  to the Government for

approval by the State Social Insurance Council.

Regulations for  the drafting  and execution  of  the  State

Social Insurance  budget shall  be approved  by the Government of

the Republic of Lithuania.

 

Article 29. The Relationship Between the State Social

Insurance Budget and the State Budget of the

Republic of Lithuania

 

Appropriations from  the State Budget shall be allocated for

State Social  Insurance if,  as a  result of  laws adopted by the

Supreme Council  of the  Republic  of  Lithuania,  or  for  other

unforeseen  reasons,  the  State  Social  Insurance  expenditures

either increase  or its revenue decreases, while social insurance

contribution rates rates remain unchanged.

 

Article 30. The State Social Insurance Budget Revenue

 

The revenue  of the  State  Social  Insurance  budget  shall

consist of:

1) compulsory  State Social  Insurance contributions paid by

legal and natural persons;

2)  the   revenue  of   the  State  Social  Insurance  Board

activities;

3) appropriations  from the State Budget, allocated pursuant

to Article 29 of this law.

 

Article 31. State Social Insurance Budget Outlays

 

State Social Insurance budget outlays shall consist of:

1) State Social Insurance pensions;

2) State Social Insurance benefits;

3)  deductions   to  the   employment  fund  in  the  amount

established by the Government;

4)  compensations   for  medical  treatment  and  prevention

(Articles 23-26);and

5)  expenditures   for  the   maintenance  of  State  Social

Insurance institutions.

 

Article 32. The State Social Insurance Reserve Fund

 

The State  Social Insurance  reserve fund  shall  be  formed

within the State Social Insurance budget, and shall consist of an

amount established  while approving  the State  Social  Insurance

budget. Its  resources, upon  the decision  of the  State  Social

Insurance Board, shall be used to defray unforeseen expenditures,

excepting administrative expenditures.

 

Article 33. Working Cash Assets

 

Working cash assets shall be created within the State Social

Insurance budget.  It shall  comprise the  budget surplus, and if

that is  insufficient, the planned revenue as well. The amount of

working cash  assets shall  be established  while  approving  the

State Social Insurance budget.

Working   cash assets  shall be used to defray temporary cash

income deficiencies  and must be restored by the end of the budget

year.

 

Article 34. State Social Insurance Contributions

 

Persons specified in items 1-6 of Article 4 shall pay a part

of their  State Social Insurance contribution from their personal

income, while  the remainder  of the contribution shall be met by

the resources  of the enterprise, office, or organization wherein

the person is employed. Contributions shall be based on the wage,

salary or  other income  of the  person, and  shall be calculated

according to  the Regulations  for the  drafting and execution of

the State Social Insurance budget.

Persons specified  in items  7 and  8 of Article 4 shall pay

State Social  Insurance contributions  based on  the sum of State

Social Insurance  which they  have declared.  This sum may not be

less than  the minimum  wage  established  by  the  laws  of  the

Republic of Lithuania.

Persons specified in items 7 and 8 of Article 4 shall not be

obliged to  pay State  Social Insurance  contributions  if  their

income subject  to taxation  under the  laws of  the Republic  of

Lithuania (  calculated before  deducting State  Social Insurance

contributions) is  less than  the minimum wage established by the

laws of  the Republic  of Lithuania,  or if  their income  is tax

exempt according to the lawfully established procedure.

Periods during  which a  person does  not pay  State  Social

Insurance contributions  shall not  be included  in State  Social

Insurance periods.

 

Article 35. State Social Insurance Contribution Rates

 

The  rates   of  the   compulsory  State   Social  Insurance

contributions shall  be established  by  the  Government  of  the

Republic of Lithuania.

The rates  of State Social Insurance contributions which are

paid by  persons specified  in Article  4 of  this law from their

personal income  shall be  established by  the Supreme Council of

the Republic of Lithuania.

 

Article 36. Procedure for the Payment of State Social

Insurance Contributions

 

State Social Insurance contributions shall be calculated and

paid to  the State  Social Insurance  budget by  the  payer  (the

insurer).

Insurers --  enterprises,  institutions,  and  organisations

wherein insured  persons specified  in items 1-6 of Article 4 are

employed, shall  calculate, deduct,  and pay contributions to the

State Social  Insurance budget  from the  income of  said insured

persons.

The  procedures   and   deadlines   for   the   payment   of

contributions shall  be provided  for in  the Regulations for the

drafting and execution of the State Social Insurance budget.

 

Article 37. Resposibility to State Social Insurance

 

Legal or  natural persons  through whose  fault State Social

Insurance institutions  must make  certain insurance payments, or

whose  actions   harm  State   Social  Insurance  property,  must

compensate for this damage in the manner established by law.

 

Article 38. Liability for the Fair Payment of Contributions

 

Persons who  fail to  pay contributions  to the State Social

Insurance budget  by the due date shall be liable for 0.5 percent

daily interest until the contributions are paid.

If the  contributions of  the insurer and persons insured by

them are  not transferred  into the State Social Insurance budget

on time,  State Social  Insurance institutions  shall recover the

premiums from  legal persons  without suing  for claims, and from

natural persons, in court.

If contributions  are reduced  unlawfully, the  total sum by

which the  contribution s  were reduced  and the penalty equal to

this sum  doubled  shall  be  recovered  into  the  State  Social

Insurance budget.  The unpaid sum and the penalty shall be sought

from legal  persons without  suing for  claims, and  from natural

persons in  court, but  only  for  a  period  not  exceeding  the

preceding 2 years.

 

 

CHAPTER 5

 

 

Administration of state social insurance

 

Article 39. The Administrative System of State Social

Insurance

 

The administrative  system of  State Social Insurance in the

Republic of Lithuania shall consist of:

1) the  Ministry of  Social  Security  of  the  Republic  of

Lithuania;

2)  institutions   authorised  to   implement  State  Social

Insurance;

3) the insurers.

 

Article 40. The State Social Insurance Council

 

The State  Social Insurance  Council  shall  be  established

under the Ministry of Social Security.

The Council  shall comprise the Minister of Social Security,

one  representative   of  the   Ministry  of   Health  Care,  one

representative of the Ministry of Finance, two representatives of

institutions authorised  to implement State Social Insurance, and

no more than three representatives of associations supporting the

interests of the insured and the insurers.

The members  of  the  Council  shall  be  appointed  by  the

Government, on  the recommendation  of  the  Minister  of  Social

Security.

The State Social Insurance Council shall:

1) establish the prospective and current objectives of State

Social Insurance;

2) submit  proposals to  the Government concerning the rates

of State Social Insurance contributions;

3) draft  the State Social Insurance budget and submit it to

the Government for approval;

4) approve  the norms  of State Social Insurance institution

personnel;

5) resolve  other issues  prescribed by  the Regulations  of

social insurance institutions.

 

Article 41. Institutions Authorised to Implement State

Social Insurance

 

The Ministry of Social Security shall authorise:

1) the  State Social Insurance Board to organise and conduct

State Social Insurance throughout the Republic of Lithuania;

2) other institutions to implement State Social Insurance.

 

Article 42. The State Social Insurance Board

 

The State  Social Insurance  Board shall be a nonprofit State

institution which shall:

1) implement  the  State  Social  Insurance  budget  of  the

Republic of Lithuania;

2) delegate  the execution  of State  Social Insurance to the

insurers;

3) conclude  agreements with  other institutions  which  are

authorised to implement State Social Insurance;

4)  be   responsible  for   timely  provision  of  insurance

protection prescribed by this law;

5)  carry   out  other   activities  provided   for  in  the

Regulations of social insurance institutions.

The Board  shall be  directed by  the State Social Insurance

Council.

The director  of the  Board shall  be appointed by the State

Social Insurance Council.

The Board  shall function according to the Regulations of the

State Social Insurance institutions.

 

Article 43. Local Institutions of the State Social Insurance

Board

 

Local departments  of the State Social Insurance Board shall

be established  in rural areas and towns, which shall be directly

responsible for:

1) the collection of State Social Insurance contributions;

2) timely and accurate pension payment;

3) executing  other functions provided by the Regulations of

State Social Insurance institutions.

The State  Social Insurance  Board and the local departments

thereof are  legal persons and shall have the seal with the State

emblem of the Republic of Lithuania.

 

Article 44. The Duties of the Insurers

 

Insurers  who   have   to   pay   State   Social   Insurance

contributions on behalf of insured persons specified in items 1-6

of Article  4 of this law, as well as persons enumerated in items

7 and  8 of  Article 4,  must register  themselves with the local

departments of the State Social Insurance Board.

The  insurers  shall  be  responsible  for  the  timely  and

accurate calcualtion  and payment of contributions into the State

Social Insurance budget.

The insurers shall pay the State Social Insurance benefits to

the insured  according to  the procedures  provided by  the  State

Social Insurance Benefit Regulations.

 

Article 45. The Right of State Social Insurance Institutions

to Exert Control

 

State Social  Insurance institutions authorised to implement

State  Social  Insurance  shall  have  the  right  to  check  the

documents on which the contributions and payments administered by

them are based.

While exercising  State Social Insurance control, officers of

State Social Insurance institutions shall have the rights provided

for in  Article 4  of the  Law of the Republic of Lithuania on the

State Tax Inspectorate.

Claims of  the insurers  and of  the insured  concerning the

actions of  officers of  State Social  Insurance institutions who

are exerting  control shall  be resolved by head (or deputy head)

of the  appropriate  institution,  while  claims  concerning  the

actions of  the latter  officers shall  be resolved  by the State

Social Insurance  Board. Applicant who disagree with the decision

of the  Board shall  have the  right to appeal to court within 10

days.

 

Article 46. The Settlement of Disputes Arising from Legal

Relations of State Social Insurance

 

Disputes  between   insurers  and   State  Social  Insurance

institutions shall  be settled  by  the  State  Social  Insurance

Board, the State Arbitration, or the court.

Disputes between  the insured  and  the  insurers  or  State

Social Insurance  institutions concerning  pensions, benefits, or

other means  of insurance protection shall be settled pursuant to

the law on pensions as well as other laws, and in accordance with

the procedures provided for in the State Social Insurance Benefit

Regulations.

 

 

Vytautas Landsbergis

President

Supreme Council

Republic of Lithuania

 

 

Vilnius

21 May 1991

No. I-1336