Translated by the Bank of Lithuania
Law published: Valstybės žinios (Official Gazette), 2003, No 75-3472
The new version of the Law:
No XI-2410, 13/11/2012, Valstybės žinios (Official Gazette), 2012, No 136-6964 (24/11/2012)
Article 1. Purpose of the Law
This Law shall lay down the conditions and procedure for the accumulation of a portion of the state social insurance contribution, a supplementary pension contribution paid out of the funds of a participant and a supplementary contribution paid for a participant out of the state budget funds (hereinafter ― the accumulation of pensions) as well as the conditions and procedure for organisation of the payment of pension benefits in the Republic of Lithuania.
Article 2. Scope of Other Laws
Republic of Lithuania Law on the Supplementary Voluntary Accumulation of Pensions (hereinafter — Law on the Supplementary Voluntary Accumulation of Pensions), Republic of Lithuania Law on Insurance (hereinafter — Law on Insurance), Republic of Lithuania Law on Companies (hereinafter — Law on Companies) and other laws shall apply to the relations of the accumulation of pensions and payment of pension benefits, set forth by this Law, to the extent that this Law does not set forth otherwise.
Article 3. Basic Definitions of This Law
1. Participation in the accumulation of pensions shall mean the accumulation of a portion of the state social insurance contribution as specified in the Republic of Lithuania Law on Reform of the Pension System (hereinafter — Law on Reform of the Pension System) upon the conclusion and registration, in accordance with the provisions laid down by this Law, of an agreement on the accumulation of pensions.
2. Financial instruments shall mean the financial instruments and deposits indicated in Article 3(4)(1), (2), (3) and (4) of the Republic of Lithuania Law on Markets in Financial Instruments (hereinafter — Law on Markets in Financial Instruments).
3. Life insurance undertaking (hereinafter — insurance undertaking) shall mean an undertaking established and operating in accordance with the provisions laid down by the Law on Companies and the Law on Insurance.
4. Pension fund shall mean the pension assets belonging to the natural persons who participate in the accumulation of pensions under the Law on Reform of the Pension System by the right of joint ownership, where their management has been transferred to a pension accumulation undertaking and they are invested according to the rules of that pension fund.
5. Benchmark of a pension fund shall mean the indicator chosen by a pension accumulation undertaking, value range of which is compared to a pension fund investment return.
6. Pension accumulation undertaking shall mean a management undertaking of a pension fund or an insurance undertaking holding a licence or authorisation issued by the Supervisory Authority to engage in the accumulation of pensions in the territory of the Republic of Lithuania as specified by this Law. A pension accumulation undertaking may be established by the state.
7. Pension spreadsheet shall mean a computer programme designed to calculate the amounts of a portion of a participant’s future state social insurance pension and the annuity as provided for in Article 24 of this Law, according to the economic indicators selected by the participant.
8. Supervisory Authority shall mean the Bank of Lithuania, performing the functions of supervision of management and insurance undertakings under the provisions laid down in this Law and other laws.
9. Member State shall mean a Member State of the European Union or a country of the European Economic Area.
10. Other definitions used in this Law shall be understood as they are defined in the Republic of Lithuania Law on State Social Insurance (hereinafter — Law on State Social Insurance), the Law on the Supplementary Voluntary Accumulation of Pensions, the Law on Reform of the Pension System, the Republic of Lithuania Law on Collective Investment Undertakings and the Republic of Lithuania Law on State Social Insurance Pensions (hereinafter — Law on State Social Insurance Pensions).
Article 4. Participation in the Accumulation of Pensions
1. The right to become a pension accumulation participant in the accumulation of pensions as provided for by this Law and by the Law on Reform of the Pension System shall be granted to the persons with insured income, from which the state social insurance contributions for the basic and supplementary parts of a pension are calculated, also the persons who, under the Republic of Lithuania Law on the Retention and Transfer of Pension Rights of Officials of the Institutions of the European Union and of Members of the European Parliament (hereinafter — Law on the Retention and Transfer of Pension Rights of Officials of the Institutions of the European Union and of Members of the European Parliament), have the right to transfer the funds from the pension system of the European Union institutions, with the exception of persons who have reached the pensionable age (hereinafter — the pensionable age) laid down in the Law on State Social Insurance Pensions.
2. Participation in the accumulation of pensions shall commence upon the conclusion of a pension accumulation agreement and registration in the register of pension accumulation agreements (hereinafter — Register of Agreements) established and administered by the State Social Insurance Fund (hereinafter — SSIF) Board (hereinafter — SSIF Board) under the Ministry of Social Security and Labour. A pension accumulation undertaking shall, within one month of the conclusion of a pension accumulation agreement, inform a participant of the registration of the pension accumulation agreement.
3. A pension accumulation undertaking may not refuse to conclude a pension accumulation agreement with a person who has the right to participate in the accumulation of pensions under this Law.
4. Upon signing a pension accumulation agreement, a pension accumulation undertaking shall inform (against a signed acknowledgment) a person, who is willing to participate in the accumulation of pensions, about the risk comparison of its pension fund investment.
5. Upon signing a pension accumulation agreement, a pension accumulation undertaking shall inform the person, who has less than 7 years left until he reaches the pensionable age, about the possibility to accumulate pension in a conservative investment pension fund. In that case, a pension accumulation agreement in other than a conservative investment pension fund is possible only in the case when a person confirms in writing that he is familiar with the risk comparison of pension fund investment administered by a pension accumulation undertaking and refuses to make a pension accumulation agreement regarding the accumulation of pensions in a conservative investment pension fund.
6. A pension accumulation undertaking shall open a pension account for every participant who has concluded a pension accumulation agreement with it. A participant may accumulate pension contributions at the same time only with one pension fund.
7. Pension accumulation agreement shall be registered by the SSIF Board in the Register of Agreements. The regulations of the Register of Agreements shall be approved by the Government of the Republic of Lithuania (hereinafter ― the Government) or an authority authorised by it. Where a pension accumulation company refuses to submit or accept the data necessary for the registration of pension accumulation agreements and (or) for the transfer of contributions according to the approved conditions for the submission of data, the transfer of pension contributions to the pensions funds managed by the said pension accumulation undertaking shall be suspended until the submission of the data and (or) renewal of acceptance thereof according to the conditions for the submission of the data. The duty of payment of the late payment interest as specified in Article 32 of this Law shall be borne by a pension accumulation undertaking, which fails to meet the requirements. Upon the renewal of transfer of contributions, the contributions shall be transferred in accordance with the procedure laid down in Article 10 of this Law. Pension accumulation undertakings shall be responsible for the correctness of the data submitted to the SSIF Board.
8. When administering the Register of Agreements and registering pension accumulation agreements and their termination, the SSIF Board shall ensure the continuity of every participant’s participation in the accumulation of pension.
9. Participation in the accumulation of pensions shall cease when:
1) a participant of the pension fund (hereinafter — participant) reaches the pensionable age, and the entire pension benefit is paid to him under a pension benefit payment agreement;
3) a participant terminates a pension accumulation agreement in accordance with the provisions laid down in Article 6(11) of this Law;
5) the funds accumulated by a participant are transferred to the pension system of the European Union institutions in accordance with the provisions laid down by the Law on the Retention and Transfer of Pension Rights of Officials of the Institutions of the European Union and of Members of the European Parliament.
Article 5. Rights of a Pension Fund Participant
1. A pension fund participant shall have the right:
1) to terminate, in accordance with the procedure laid down by this Law, a pension accumulation agreement with a pension accumulation undertaking and to conclude a pension accumulation agreement with another pension accumulation undertaking, with the exception of the cases specified by this Law;
2) to terminate a pension accumulation agreement at his own initiative in accordance with the provisions laid down in Article 6(11) of this Law;
3) to obtain information from a pension accumulation undertaking about the condition of the pension fund units and their value in his pension account, the investment strategy of funds and the investment return received under the strategy, the report of a pension accumulation undertaking a pension fund audit as well as other information specified by this Law;
4) to receive the pension benefits specified by this Law according to the amount of the pension assets accumulated on his behalf;
5) to postpone the commencement of payment of the pension benefit in accordance with the provisions laid down by this Law;
Article 6. Pension Accumulation Agreement
1. The parties of a pension accumulation agreement shall be a participant and a pension accumulation undertaking. A pension accumulation agreement may not be concluded for the benefit of a participant with his employer or other third parties.
2. A pension accumulation agreement concluded for the first time shall enter into force in the accordance with the procedure laid down by the Law on Reform of the Pension System. Where a person transfers to another pension accumulation undertaking, newly concluded pension accumulation agreements shall enter into force in accordance with the procedure laid down in Article 8 of this Law. A participant may transfer to a pension fund managed by another pension accumulation undertaking only upon termination, in accordance with the procedure laid down by this Law, of a concluded pension accumulation agreement. Where a person transfers to another pension fund managed by the same pension accumulation undertaking, newly concluded pension accumulation agreements shall enter into force in accordance with the procedure laid down in Article 7 of this Law.
3. Where several pension accumulation agreements have been concluded on behalf of the same person, the agreement which the SSIF Board receives and registers first shall be valid.
4. A pension accumulation agreement shall conclude in writing. The parties of a pension accumulation agreement may not, in this agreement, lay down such conditions of a pension accumulation agreement as would prejudice the situation of a participant compared with the one specified by this Law and by other laws of the Republic of Lithuania. The provisions of an agreement which do not meet the requirements set forth by this Law or related legal acts shall be deemed null and void.
5. Standard terms and conditions of a pension accumulation agreement shall be approved by the Supervisory Authority. A pension accumulation undertaking shall submit to the Supervisory Authority a draft standard pension accumulation agreement and amendment thereof.
6. The rules of a pension fund as approved by the Supervisory Authority shall constitute a part of a pension accumulation agreement.
7. A pension accumulation undertaking may not terminate a pension accumulation agreement without the approval of a participant, with the exception of the cases specified by this Law.
8. Upon the conclusion of a pension accumulation agreement, a pension accumulation undertaking shall, subject to agreement of the procedure for submitting data with the SSIF Board, submit to the SSIF Board by electronic means no later than within 3 working days of the conclusion of the agreement the data required for the registration of the agreements of pension accumulation. Pension accumulation agreements shall be registered in the Register of Agreements within 3 working days of the receipt of data by the SSIF Board. A notification of registration or non-registration thereof, with the reasons for the failure to register specified therein, shall be submitted to pension accumulation undertakings within the same time limit of 3 working days of the receipt of data by the SSIF Board. The procedure for adjusting the data submitted to the SSIF Board shall be laid down by the Government or an institution authorised by it. A pension accumulation undertaking shall, within one month of the conclusion of a pension accumulation agreement, notify the persons whose pension accumulation agreements have not been registered and specify the reasons for the failure to register them.
9. A pension accumulation undertaking wherewith a person intends to conclude a pension accumulation agreement shall have the right, in accordance with the procedure laid down by the SSIF Board, to inquire the SSIF Board about the eligibility of this person to become a participant in the accumulation of pensions as well as about the fact of conclusion of a pension accumulation agreement of this person and another pension accumulation undertaking. Upon the receipt of such an inquiry, the SSIF Board shall reply in writing or, subject to agreement of the procedure for submitting information with the pension accumulation undertaking, by electronic means no later than within one working day of the receipt of the inquiry.
10. Pension accumulation agreements and their end shall be registered in the Register of Agreements as managed by the SSIF Board, and information thereon shall be kept for a period specified by the Republic of Lithuania laws.
11. A participant shall have the right to unilaterally terminate a pension accumulation agreement concluded for the first time upon written notice to a pension accumulation undertaking within 30 calendar days of the conclusion of the agreement. Upon the receipt of a participant’s written notification of the termination of an agreement, a pension accumulation undertaking shall give notice thereof to the SSIF Board within 3 working days. A pension accumulation agreement shall be considered to have been terminated after the SSIF Board strikes it off from the Register of Agreements. A pension accumulation agreement shall be considered concluded for the first time also where a participant has already exercised the right to terminate a pension accumulation agreement on the ground specified in this paragraph. Upon terminating a pension accumulation agreement in accordance with the provisions laid down in this paragraph, a person shall have the right to conclude a pension accumulation agreement with a pension accumulation undertaking selected by him not earlier than on 1 January of the next year following the year of the termination of the pension accumulation agreement.
Article 7. Transfer of a Participant to Another Pension Fund Managed by the Same Pension Accumulation Undertaking
1. A participant shall have the right to transfer to another pension fund managed by the same pension accumulation undertaking.
2. Where a person transfers to another pension fund managed by the same pension accumulation undertaking, a new pension accumulation agreement shall be concluded. Upon the conclusion of a new pension accumulation agreement, a pension accumulation undertaking shall, subject to agreement of the procedure for submitting information with the SSIF Board, give notice thereof and of the termination of the previous agreement to the SSIF Board by electronic means within 3 working days of the conclusion of the pension accumulation agreement. Where the first pension accumulation agreement has not come into force, a newly concluded pension accumulation agreement shall come into force on the first day of the third month, from the date of its registration in the Register of Agreements and where the first pension accumulation agreement has come into force, the newly concluded pension accumulation agreement shall come into force upon its registration in the Register of Agreements.
3. The transfer of a participant from one pension fund to another shall proceed in compliance with terms and conditions identified in the rules of a pension fund from which he transfers and of a pension fund to which he transfers as laid down by a pension accumulation undertaking. A participant shall have the right to transfer to another pension fund of the same pension accumulation undertaking once per calendar year without any deductions. Where a participant transfers to another pension fund of the same pension accumulation undertaking more than once per calendar year, his transfer may be subject only to the deductions specified in Article 16(4) of this Law, where this has been laid down in the rules of the relevant pension fund.
4. When submitting the latest notification referred to in Article 52(1) of the Law on the Supplementary Voluntary Accumulation of Pensions, a pension accumulation undertaking shall notify a participant, who has less than 7 years before his retirement age, about a possibility to accumulate pension contributions with a conservative investment pension fund. The said information shall be accompanied by the following:
1) a detailed information about any possible risks of participation in a pension fund other than the conservative investment pension fund, and a comparison of the investment risk in the pension fund the participant whereof the said person is and in the conservative investment pension fund;
Article 8. Transfer of a Participant to a Pension Fund Managed by another Pension Accumulation Undertaking
1. A participant shall have the right to transfer to the pension fund managed by another pension accumulation undertaking, when at least one pension contribution or the funds from the pension system of the authorities of the European Union has/have been transferred to the pension fund in the said person’s name.
2. A participant who wishes to transfer to a pension fund managed by another pension accumulation undertaking shall conclude a new pension accumulation agreement with another pension accumulation undertaking and within 14 days of the conclusion of new agreement submit it to a pension accumulation undertaking with a pension fund whereof he accumulates pension contributions a request to terminate a pension accumulation agreement. A pension accumulation undertaking, with which a new pension accumulation agreement was concluded by a participant, shall, upon approval with the SSIF Board of the procedure for the submission of information, no later than within 3 working days from the date of conclusion of the agreement, submit, by electronic means, to the SSIF Board, the data necessary for the registration of the agreement. Upon the receipt of the participant’s request to terminate the pension agreement and after imposition of identity of the participant, the pension accumulation undertaking shall, within the time limit laid down for the notification of termination of a pension accumulation agreement in the rules of a pension fund from which the participant transfers, but not exceeding 14 calendar days, and subject to agreement of the procedure for submitting information with the SSIF Board, give notice thereof by electronic means to the SSIF Board.
3. Where a person transfers to a pension fund managed by another pension accumulation undertaking, a newly concluded pension accumulation agreement shall enter into force of the Register of the Agreement and notification of termination of the previous pension accumulation agreement in the Register of Agreements. Upon making an appropriate entry in the Register of Agreements, the SSIF Board shall, by coordinating the information submission provisions with pension accumulation undertakings within 3 working days, give notice by electronic means to both pension accumulation undertakings, informing from which (to which) pension fund (funds) a participant is transferred. Where it has refused to register a new pension accumulation agreement or an application to terminate a pension accumulation agreement, the SSIF Board shall, within 3 working days, give notice thereof to a pension accumulation undertaking with which a participant made a new pension accumulation agreement, and specify the reason for the refusal.
4. A pension accumulation undertaking a participant in a pension fund whereof wishes to transfer to a pension fund managed by another pension accumulation undertaking, shareholders thereof and other persons shall be prohibited from directly or indirectly restricting this right of the participant.
5. The transfer of a participant from a pension fund managed by one pension accumulation undertaking to a pension fund managed by another pension accumulation undertaking shall proceed in compliance with the terms and conditions provided for in the rules of the pension fund from which he transfers and of the pension fund to which he transfers. A participant shall have the right to transfer to a pension fund managed by another pension accumulation undertaking once per calendar year covering only the costs of the pension accumulation undertaking from whose pension fund he transfers which are related to the person’s transfer to a pension fund managed by another pension accumulation undertaking and indicated in Article 16(4) of this Law, where these costs have been provided for in the rules of the pension fund concerned.
6. If a pension accumulation undertaking intends to transfer the rights and duties, related to a pension fund managed by it and arising from pension accumulation agreements to another pension accumulation undertaking or where the pension fund is terminated due to the bankruptcy or liquidation of a pension accumulation undertaking, or where pension funds are merged, the participants of pension funds, which are transferred or terminated, or participating in the merger, have the right to transfer to another selected pension fund without any deductions within the required time limit, set forth by the pension accumulation undertaking, which shall not be shorter than 3 months from the date of dispatch of the information on the adoption of a relevant decision. Where, within the period indicated in this paragraph, participants have not concluded pension accumulation agreements with another pension accumulation undertaking, such participants as well as the funds belonging to them shall, in accordance with the provisions laid down by the legal acts, be transferred to a pension fund managed by another pension accumulation undertaking without any deductions. The information about the respective decision, indicated in this paragraph, shall be published by a pension accumulation undertaking on its website as well.
7. The SSIF Board, by coordinating the information submission provisions with pension accumulation undertakings, shall inform each pension accumulation undertaking about the bank account details of the pension funds administered by all the pension accumulation undertakings. A pension accumulation undertaking shall submit the information about the bank account details of the administered pension funds (name of the bank, name of the branch, bank code, bank account number) to the SSIF Board no later than within one working day after a bank account is opened or the bank account information is changed.
8. A pension accumulation undertaking from which a participant in a managed pension fund transfers shall, upon the receipt of a notification of the SSIF Board of the termination of a pension accumulation agreement with the pension accumulation undertaking of that pension fund and entry into force of a new pension accumulation agreement, transfer within 3 working days the monetary funds of the participant to a cash account of a pension fund managed by the receiving pension accumulation undertaking. A pension accumulation undertaking to whose pension fund a participant transfers shall, after the monetary funds of the participant reach the account of this pension fund, give notice to the participant of the amount of the pension assets in his pension account.
Article 9. Pension Assets
1. The pension assets making up a pension fund shall be the joint property of participants. A participant’s share in the joint property shall be determined according to the pension fund units in his pension account.
2. A pension accumulation undertaking shall manage, use and dispose of pension assets by holding the property in trust.
3. The pension assets making up each pension fund must be separated from other assets of a pension accumulation undertaking and from the pension assets of other pension funds managed by the same pension accumulation undertaking.
4. It shall be prohibited to levy execution against the pension assets to ensure performance of the obligations of the pension accumulation undertaking and the participants of the pension fund.
5. After a participant’s death, a part of pension assets belonging to him shall be inherited in accordance with the procedure laid down by Republic of Lithuania laws. The inherited assets must be paid out to successors in cash, but not prior to the transfer of pension contributions for the calendar month when the participant’s death occurred.
Article 10. Conditions of and Time Limits for the Payment of Pension Contributions
1. State social insurance contributions, which constituent part whereof is the pension contribution and additional contributions paid with the participant’s funds, indicated in Article 4(1) of the Law on Pension System Reform, shall be calculated and transferred to the budget of the SSIF in accordance with the provisions laid down by the Republic of Lithuania laws.
2. The SSIF Board shall, on the basis of information available in the Register of Agreements about the pension accumulation agreements concluded by participants, pension funds selected by them and information of the Republic of Lithuania register of persons covered by state social insurance and recipients of state social insurance benefits, about the state social insurance contributions calculated for each participant, transfer pension contributions to the relevant pension funds managed by pension accumulation undertakings. The pension contribution calculation and transference provisions are laid down by the Government or an institution authorised by it.
3. Pension contributions shall be transferred within 30 days of the day until which insurers must, in accordance with the procedure laid down by the Government, submit to agencies of the SSIF information about the amounts of insured income and social insurance contributions calculated for every insured person.
4. Pension contributions shall, prior to their transfer to the pension funds managed by pension accumulation undertakings, be held by the SSIF Board in trust in a bank separately from other funds. Pension contribution funds may be used only for a transfer to pension funds as pension contributions.
5. Pension contributions for the self-employed persons covered, on a compulsory basis, by state social pension insurance to receive the basic and supplementary part of a pension shall, in accordance with the procedure laid down by the Government or an institution authorised by it, be transferred to the pension funds managed by the pension accumulation undertakings selected by these persons according to the state social insurance contributions actually paid by these persons.
6. Upon the adjustment of a deceased participant’s insured income and state social insurance contributions for previous periods in accordance with the procedure laid down by legal acts, pension contributions for the previous periods shall not be recalculated.
7. The operating costs of the SSIF Board incurred in relation to the calculation and transfer of pension contributions and supervision of the information system of the SSIF Board shall be borne by pension accumulation undertakings on the basis of the approved amount of reimbursement and in accordance with the procedure approved by the Government. The amount of remuneration of the costs incurred by the SSIF Board shall be approved by the Law on the Approval of the State Social Insurance Fund Budget Indicators for the respective year.
Version from 01/01/2014:
7. The operating costs of the SSIF Board incurred in relation to the collection and transfer of the pension insurance contributions and supplementary contributions paid by a participant out of own funds shall be borne by pension accumulation undertakings on the basis of the approved amount of reimbursement and in accordance with the procedure approved by the Government. The amount of remuneration of the costs incurred by the SSIF Board shall be approved by the Law on the Approval of the State Social Insurance Fund Budget Indicators for the respective year.
8. When forming, in accordance with the format laid down in the Data Submission and Pension Contributions Agreement concluded between a pension accumulation undertaking and the SSIF Board, an electronic file of the participants under whose names the pension contributions shall be calculated, the SSIF Board shall have the right to suspend no later than 4 working days before the planned transfer of pension contributions to the pension accumulation undertakings, registration or deregistration of pension accumulation agreements referred to in Article 8(2) of this Law, until receipt by the SSIF Board, in accordance with the procedure approved with the SSIF Board, from pension accumulation undertakings of the information about the entry of pension contributions in the participant’s pension account. The time limits for registration or deregistration of the pension accumulation agreement, which could not be registered or deregistered under the provisions for this paragraph, may be extended by such number of working days by which the registration or deregistration of pension accumulation agreements was suspended, but for not more than 4 working days.
Amendments to the article:
No XII-683, 17/12/2013, Valstybės žinios (Official Gazette), 2013, No 140-7060 (30/12/2013)
Article 11. Security Requirements Set for Pension Accumulation Undertakings
Version from 01/01/2016:
2) form adequate technical provisions for the accumulation of pensions, where it, according to the rules of a pension fund, undertakes to guarantee participants a certain rate of profitability.
2. A management undertaking shall:
Version from 01/01/2016:
3. An insurance undertaking shall calculate the solvency capital according to the procedure laid down by the Supervisory Authority.
4. An insurance undertaking shall form technical provisions for the accumulation of pensions according to the methods of calculation of the amounts of insurance technical provisions as laid down by the Supervisory Authority. The investment of technical provisions for the accumulation of pensions shall be subject to the same requirements as the investment of insurance technical provisions.
5. The guarantee reserve shall be formed, invested and used in accordance with the procedure laid down by a management undertaking and agreed with the Supervisory Authority. The Supervisory Authority shall have the right to issue the guidelines on the amendment and/or supplementing of the procedure for formation, investing and using guarantees of reserve. The guarantee reserve shall be invested in a diversified financial instruments portfolio, which shall be subject to the same requirements as pension assets set in Articles 45, 47 and 49 of the Law on the Supplementary Voluntary Accumulation of Pensions.
6. The security requirements set for an insurance undertaking and a management undertaking in paragraphs 1 and 2 of this Article shall be as similar as possible in respect of their essence and amounts.
Amendments to the article:
No XI-2279, 16/10/2012, Valstybės žinios (Official Gazette), 2012, No 127-6387 (03/11/2012)
No XII-721, 19/12/2013, Valstybės žinios (Official Gazette), 2013, No 140-7082 (30/12/2013)
Article 12. Investment Principles
1. A pension accumulation undertaking shall continuously ensure that:
1) pension assets are invested in order to ensure safety, profitability and liquidity of the whole financial instrument portfolio of a pension fund;
2) implementation of the investment strategy or transfer thereof for implementation to another entity so as to generate the best possible result for the pension fund by taking into account the price of investment objects, the costs and speed of implementation of the investment strategy, the probability of implementation of and payment under the investment strategy, the size, contents and other important circumstances of the investment strategy;
2. The Supervisory Authority has the right to request a pension accumulation undertaking at any time to prove its compliance with the liabilities indicated in paragraph 1 of this Article, and a pension accumulation undertaking shall prove its compliance with the liabilities.
3. When the pension assets are invested in the collective investment undertaking managed by the same pension accumulation undertaking, the pension accumulation undertaking shall, no later than within one month, repay to the account of the pension fund the deductions made for the management of the pension assets invested in the collective investment undertaking. This provision shall also be applied to those collective investment undertakings of the same pension accumulation undertaking the management function or any part whereof has been transferred by the pension accumulation undertaking to other persons.
4. Deductions of a collective investment undertaking with pension assets invested in it or deductions related to investments in a collective investment undertaking returned by its management undertaking shall in all cases be included in the respective pension assets immediately, but no later than within 2 working days after their return.
Article 13. Conservative Investment Pension Fund
1. A pension accumulation undertaking must provide for persons a possibility to accumulate pension contributions with a conservative investment pension fund. These funds of the fund shall be invested only in:
1) bonds and other non-equity securities issued or guaranteed by a Member State or the governments, central banks of member countries of the Organisation for Economic Co-operation and Development and the European Central Bank;
2) the shares or investment units of the collective investment undertakings whose funds shall be invested only in the investment objects indicated in subparagraph 1 of this paragraph;
3) deposits with no longer than 12-month term, which may be withdrawn on demand and which are held in the credit institutions the registered office whereof is in a Member State or another state wherein the level of risk limiting supervision is at least as stringent as in the European Union;
Article 14. Specific Features of the Investment of Pension Assets
1. Pension assets may consist only of the transferable securities or money market instruments which are specified by the Law on the Supplementary Voluntary Accumulation of Pensions and are included in the market trade regarded by the Law on Markets in Financial Instruments as regulated markets and operating in a Member State or which are admitted to official listing on a stock exchange of a Member State on a regulated market situated in that country and operating in accordance with laid down rules, recognised and open to the public, provided this market has been indicated in the rules of a pension fund. Pension assets shall also include the new transferable securities, if the conditions of an emission indicate the liability to include these transferable securities in the trade of regulated market no later than within one year after their release (if the market is not in a Member State, it shall be indicated in the rules of a pension fund).
2. Pension assets shall be invested in other assets, including the investment in the risk capital markets, in accordance with the provisions laid down by the Law on the Supplementary Voluntary Accumulation of Pensions.
3. Up to 20 per cent of the net assets of the pension fund may be invested into the investment units or shares of the collective investment undertakings, which do not meet the conditions specified in Article 49(1) of the Law on Supplementary Voluntary Accumulation of Pensions provided that the said collective investment undertakings meet the following conditions:
1) a collective investment undertaking and (or) its head is authorised (licensed, has a permission to act or an analogous action has been performed in relation to it), and its supervision, which shall be as strict as supervision of the special collective investment undertakings carried out by the Bank of Lithuania, is performed by the Supervisory Authority of a respective country;
4. No more than 5 per cent of the net assets of the pension fund may be invested into each of the collective investment undertakings, which meet the conditions specified in paragraph 3 of this Article.
5. Pension assets shall be invested in financial derivatives only for the purpose of risk management. A pension accumulation undertaking shall use financial derivatives only when the rules of a pension fund identify which financial derivatives are to be used and for what purpose pension accumulation undertaking is going to use. Each financial derivative shall be justified by a certain investment transaction (investment position). Such transaction and the financial derivative used for its risk management shall be indicated in the pension accumulation undertaking’s operations and financial condition report.
Article 15. Benchmark of a Pension Fund
1. A pension fund shall have a benchmark. A benchmark of a pension fund shall allow the public to properly assess the financial results of a pension fund. A benchmark of a pension fund shall be selected taking into account the investment strategy of that pension fund.
2. A Supervisory Authority has the right to lay down the requirements for the selection and use of the benchmark of a pension fund.
3. Upon announcing the financial results of a pension fund, a pension accumulation undertaking shall compare the results with the benchmark of a pension fund in accordance with the provisions laid down by the Supervisory Authority.
4. A pension accumulation undertaking shall approve the rules, which shall lay down the criteria and procedure for selection and replacement of the comparative indicators of the pension funds managed by it, and shall submit the said rules to the Supervisory Authority. The comparative indicator of the pension fund shall also be specified in the activity and financial status reports drawn by pension accumulation undertakings.
Article 16. Deductions from Pension Assets
1. Deductions from pension assets for the benefit of a pension accumulation undertaking may be made only in compliance with the amounts specified in this Law and the rules of a pension fund.
2. Only the deductions, which are provided for in this Law and in the rules of the pension fund, may be made from the pension assets. Any currency exchange costs incurred as a result of the duty to recognise the currency exchange costs in the accounting on the basis of the official Litas and foreign currency exchange rate published by the Bank of Lithuania shall also be covered from the pension assets. All other expenses not provided for in the rules of the pension fund or exceeding the specified amounts shall be covered from the assets of a pension accumulation undertaking.
3. The deductions from pension assets indicated in paragraph 2 of this Article and made under every pension accumulation agreement concluded with a pension accumulation undertaking may not exceed 1 per cent of the average annual value of the funds in a participant’s pension account per year by 1 January 2013, from 1 January 2013 they may not exceed 0.65 per cent in the conservative investment pension fund and may not exceed 1 per cent of the calculated average annual value of the funds in a participant’s pension account in another pension fund. Deductions from the contributions paid on behalf of the participant by the year 2013 may not exceed 10 per cent, in the year 2013 may not exceed 2 per cent and are reduced every year by 0.5 per cent until they reach 0 per cent.
4. The costs of a participant’s transfer to a pension fund managed by another or the same pension accumulation undertaking shall consist only of the costs of the pension accumulation undertaking which are related to the closing of a pension account as well as the transfer of funds. These costs may not exceed 0.05 per cent of the monetary funds transferred on behalf of the participant. The costs of the conclusion of a pension accumulation agreement with this participant as well as the marketing costs of another pension accumulation undertaking shall not be included in the costs of a transfer to a pension fund managed by another or the same pension accumulation undertaking.
Article 17. Offer and Advertising of Services
1. A pension accumulation undertaking and other persons authorised by it or related to it otherwise shall be prohibited from:
1) urging a potential participant to become a pension fund participant or not to terminate participation in the pension fund by offering a benefit not related to the activity of the accumulation of pensions;
2. A pension accumulation undertaking and other persons authorised by it or related to it otherwise may make statements using forecast figures only in accordance with the procedure laid down by a legal acts of Supervisory Authority.
3. When providing information to a potential or current participant about possible pension contributions, a pension accumulation undertaking, representatives thereof or the persons otherwise related to the pension accumulation undertaking shall have the right to use a spreadsheet of pensions which shall meet the following requirements:
5) reduction of the state social insurance old-age pension for those participating in the accumulation of pensions as provided for by the Law on State Social Insurance Pensions shall be shown;
4. A pension accumulation undertaking to guarantee participants a certain rate of profitability shall have the right to make statements using forecast figures and publish information about expected investment income and other related forecasts, provided it does not exceed the liabilities undertaken.
5. The financial results of the pension fund managed by a pension accumulation undertaking, which are published in a promotional material about pension accumulation activity of the said pension accumulation undertaking, shall, in the procedure established by the Supervisory Authority, be compared with the comparative indicator of the said pension fund.
6. The promotional material about the pension accumulation activity may contain only the information, which is contained in the rules and periodic reports of the pension fund. For promotional purposes a pension accumulation undertaking may develop and disseminate a short version of the pension fund rules providing only the information, which is contained in the pension fund rules approved by the Supervisory Authority.
7. The Supervisory Authority shall prohibit publication of promotional material, which is incorrect, misleading or incomplete, and shall order that such promotional material, which has already been published, be negated, adjusted or supplemented.
8. A pension accumulation undertaking shall be responsible for a proper selection and training of the persons providing information about the activity of the accumulation of pensions and/or concluding pension accumulation agreements and shall ensure that these persons have a relevant qualification. Supervisory Authority shall have the right to set the qualification requirements for the persons providing information about the activity of the accumulation of pensions and/or concluding pension accumulation agreements.
9. Only the persons who are of sufficiently good repute and are familiarised with the legal acts regulating the activity of the accumulation of pensions may provide information about the activity of the accumulation of pensions and/or conclude pension accumulation agreements on behalf of a pension accumulation undertaking.
Article 18. Liquidation and Bankruptcy of a Pension Accumulation Undertaking
1. An insurance undertaking’s liquidation and bankruptcy procedures shall be carried out in accordance with the Law on Insurance. Liquidation and bankruptcy procedures of a management undertaking shall be carried out in accordance with the Law on the Supplementary Voluntary Accumulation of Pensions.
2. A pension accumulation undertaking shall have the right to initiate a voluntary liquidation procedure (with the exception of taking relevant decisions) only upon transferring the rights and duties arising from pension accumulation agreements to another pension accumulation undertaking.
3. Upon the receipt of the information that a pension accumulation undertaking has acquired the status of an undertaking in liquidation or that bankruptcy proceedings have been opened against it, a Supervisory Authority shall immediately — no later than the next day — give notice thereof to the SSIF Board as well as the Ministry of Social Security and Labour.
4. Where a pension accumulation undertaking acquires the status of an undertaking in liquidation or where bankruptcy proceedings have been opened against this undertaking, the payment of pension contributions shall be suspended and shall be renewed only upon transferring the rights and duties under pension accumulation agreements to another pension accumulation undertaking.
5. Until the transfer of the management of the rights and duties under pension accumulation agreements, the SSIF Board shall keep pension contributions by the right of property trust in a bank separately from other funds. These funds may be used only for a transfer to a pension accumulation undertaking as pension contributions.
6. The liquidator of a pension accumulation undertaking in liquidation, the Chairman of the Liquidation Commission or the bankruptcy administrator of a pension accumulation undertaking in bankruptcy shall provide the information related to this pension accumulation undertaking to the relevant Supervisory Authority and to other persons, in accordance with the provisions laid down by the Supervisory Authority.
7. The liquidator of a pension accumulation undertaking undergoing liquidation, the Chairman of the Liquidation Commission or the bankruptcy administrator of a pension accumulation undertaking in bankruptcy shall be responsible for the transferring of the rights and duties, originating from pension accumulation agreements of an undertaking in liquidation or bankruptcy, which are not yet transferred to other pension accumulation undertakings, the transferring is to be carried out in accordance with the requirements for Articles 21 or 22 of this Law.
Article 19. The merger of pension funds
1. The pension accumulation undertaking shall have the right to carry out the merger (in way of joining or connecting) of its administered pension funds only after it has received a prior authorisation of the Supervisory Authority.
2. Prohibited to join:
1) accumulation of a portion of contributions of the state social insurance pension fund (funds) with a supplementary voluntary accumulation pension fund (funds).
Article 20. Right of Management Undertakings to Engage in the Activity of the Accumulation of Pensions
1. The right to engage in the activity of the accumulation of pensions shall be granted to a management undertaking, which operates under the Law on the Supplementary Voluntary Accumulation of Pensions or the Law on Collective Investment Undertakings, has an office in the Republic of Lithuania and meets the additional requirements laid down by this Law.
2. A management undertaking may commence activity of the accumulation of pensions only upon the receipt of a licence allowing to commence activity of the accumulation of pensions in accordance with the provisions laid down by the Law on Collective Investment Undertakings and after a Supervisory Authority approves the relevant rules of a pension fund in accordance with the provisions laid down by it. The title of the rules of the pension fund shall indicate that this is a pension fund for the accumulation of a portion of the state social insurance contribution (an abbreviation of the combination of these words may be used).
Article 21. Right of Insurance Undertakings to Implement the Activity of the Accumulation of Pensions
1. An insurance undertaking shall have the right to engage in the activity of the accumulation of pensions provided it holds a licence issued for the class of assurance of the pension accumulation activity within the life assurance branch.
2. An insurance undertaking may commence the activity of the accumulation of pensions only upon the approval of the rules of a pension fund by the Supervisory Authority in accordance with the provisions laid down by it. The title of the rules of the pension fund shall indicate that this is a pension fund for the accumulation of a portion of the state social insurance contribution (an abbreviation of the combination of these words may be used).
3. The Law on Insurance shall apply to the insurance undertakings engaged in the activity of the accumulation of pensions to the extent this Law does not provide otherwise.
4. Insurance undertakings, which are engaged in pension accumulation activity, shall be mutatis mutandis subject to the provisions for Article 6 (except subparagraph 11 of paragraph 1), Articles 9, 12 (except subparagraphs 2 and 3 of paragraph 1), Articles 13, 21, 22, 29 (except paragraphs 1–6), Articles 32, 33 and 34, Sections Four, Five and Six (except Article 51, Article 55(1), (5), (6) and (7)) of the Law on the Supplementary Voluntary Accumulation of Pensions.
Article 22. Transfer of the Rights and Duties of an Pension Accumulation Undertaking Arising from Pension Accumulation Agreements
1. A pension accumulation undertaking has the right to transfer the rights and duties arising from pension accumulation agreements to another pension accumulation undertaking only upon obtaining an authorisation of the Supervisory Authority.
2. A pension accumulation undertaking shall transfer the rights and duties arising from pension accumulation agreements to another pension accumulation undertaking in the following cases:
4) where the Supervisory Authority requires so following a deterioration of the financial condition of the pension accumulation undertaking or where a real threat of deterioration of the financial condition or insolvency of the pension accumulation undertaking arises;
5) where activity licence of a management undertaking is cancelled and underwriting licence of an insurance undertaking is cancelled;
6) where a management undertaking’s activity license is suspended and an underwriting licence of an insurance undertaking is suspended;
3. A pension accumulation undertaking shall give notice of the intention to transfer the rights and duties arising from pension accumulation agreements to participants in accordance with the procedure and within the time limits laid down by the Supervisory Authority. The procedure for transferring the rights and duties under pension accumulation agreements shall be laid down by the Supervisory Authority.
4. In the event of transfer of the rights and obligations arising out of pension accumulation agreements, a participant shall have the right to transfer to another pension accumulation fund of own choice without making any deductions from his pension assets within 3 months from the date of sending to him the information about the intention to transfer the rights and obligations arising out of pension accumulation agreements. The information about the intention to transfer to the rights and obligations arising out of pension accumulation agreements shall also be published by a pension accumulation undertaking on its website.
5. Pension assets shall be transferred alongside with the transfer of the rights and obligations arising out of pension accumulation agreements.
Article 23. Right to Pension Benefits
1. Participants shall be entitled to a pension benefit from a pension fund only upon attaining old-age retirement age, except the case provided in paragraph 3 of this Article.
2. A person who has become entitled to a pension benefit shall have the right to defer the payment of the benefit. During the deferral period, such a person shall remain a participant in the accumulation of pensions. Where a participant does not apply in writing to a pension accumulation undertaking for the conclusion of a pension benefit agreement, the participant shall be considered to have exercised his right to defer the payment of the benefit.
3. The participants with assigned early payments of State Social Insurance old-age pensions under the Republic of Lithuania Law on the Early Payment of State Social Insurance Old-Age Pensions acquires the right to receive a pension benefit from a pension fund in accordance with provisions laid down by this Law.
Article 24. Pension Benefits
1. Pension benefits may be paid in the following ways:
1) by purchasing a pension annuity in accordance with the procedure laid down by this Law in an insurance undertaking effecting life assurance;
2. The benefits indicated in paragraph 1 of this Article shall be paid where a participant and a pension accumulation undertaking conclude a pension benefit agreement on the manner of and time limits for the payment of pension benefits. A pension benefit agreement shall be concluded after a participant submits to a pension accumulation undertaking a written application for the conclusion of the pension benefit agreement and the pension accumulation undertaking calculates the amount of the basic pension annuity in accordance with the procedure laid down in Article 25(1) of this Law. Upon the receipt of the participant’s application, a pension benefit agreement shall be concluded in writing no later than within 5 working days. The pension benefit agreement shall, in addition to other terms and conditions, indicate the amount for which the participant must purchase a pension annuity under the terms and conditions provided for in Article 25(2) of this Law, where the purchase of the pension annuity is compulsory. The pension accumulation undertaking shall give notice of the fact of the conclusion of the pension benefit agreement to the SSIF Board by electronic means within 3 working days in accordance with the agreed procedure for submitting information. This period may be extended by such number of days by which the registration or deregistration of pension accumulation agreements was suspended by the SSIF Board, but for no more than 4 working days. The pension benefit agreement shall enter into force upon its signing.
3. Upon receiving a participant’s request regarding the conclusion of a pension benefit agreement, the pension fund units included in a participant’s account are converted to money a day after the receipt of a participant’s request in writing in a pension accumulation undertaking, at pension fund unit value valid on the day when the said request is received in a pension accumulation undertaking.
4. The payment of pension benefits shall commence on the day indicated in a pension benefit agreement, but no later than within 30 days of the conclusion of the pension benefit agreement, with the exception of the cases when a pension benefit agreement provides for the payment of a pension benefit or part thereof by purchasing a pension annuity. In such a case, pension benefits shall be paid no earlier than after 35 days and in any case no later than within 40 days of the receipt by a pension accumulation undertaking from an insurance undertaking of information about a pension annuity agreement concluded by a participant.
5. A pension accumulation undertaking shall be responsible for a timely and correct payment of pension benefits under the terms and conditions laid down in a pension benefit agreement. The payment of pension benefits shall be supervised by the Supervisory Authority.
6. Pension contributions may not be paid on behalf of a participant who has concluded a pension benefit agreement. The calendar month prior to the calendar month when the pension benefit agreement was concluded shall be the last month for which pension contributions shall be calculated and transferred to a relevant pension fund’s account. The pension assets consisting of the funds transferred on behalf of a participant to a pension fund after the conclusion of a pension benefit agreement shall, in accordance with the procedure laid down in the pension benefit agreement, be paid to the participant (where pension benefits have already been paid) no later than within 5 working days of the receipt of the funds or added to payable pension benefits (where they have not been paid yet).
7. Lump sum or periodical pension benefits payable by a pension accumulation undertaking with which a participant has concluded a pension benefit agreement and not paid due to the participant’s death shall be inherit in accordance with the procedure laid down by the laws.
8. A pension accumulation undertaking with which a participant intends to conclude a pension benefit agreement shall have the right, in accordance with the procedure laid down by the SSIF Board, to inquire the SSIF Board whether the SSIF Board is going to calculate and transfer pension contributions for this participant. Upon the receipt of such an inquiry and subject to agreement of the procedure for submitting information with the pension accumulation undertaking, the SSIF Board shall reply by electronic means no later than within 3 working days from the day of the receipt of the inquiry.
9. A pension benefit agreement may be terminated by agreement between the parties to the pension benefit agreement, if the participant was not paid a pension benefit (or any part thereof) and (or) if a pension annuity was not purchased. A pension accumulation undertaking shall notify the SSIF Board about the termination of the pension benefit agreement by electronic means within 3 working days in accordance with the approved procedure for the submission of information.
Article 25. Selection of Pension Benefits
1. A pension accumulation undertaking shall calculate for every participant who has become entitled to a pension benefit and applied in writing for payment thereof the amount of his basic pension annuity (annuity without inheritance, which shall be paid in equal instalments and whose payment shall be terminated after the participant’s death) according to the pension assets accumulated by the participant on the day of the receipt of the participant’s written application by the pension accumulation undertaking. The methods of calculation of the basic pension annuity shall be approved by the Supervisory Authority.
2. A pension annuity shall be compulsory where the amount of the basic pension annuity calculated for a participant is not less than one half of the state social insurance basic pension. A pension annuity shall be purchased for all the pension assets accumulated on behalf of a participant with a pension fund, except for the exceptions indicated in this Article.
3. Where the amount of the basic pension annuity calculated for a participant is less than one half of the amount of the state social insurance basic pension, the participant shall be exempted from the duty to acquire a pension annuity. This participant shall have the right to receive a periodical or lump sum pension benefit from a pension accumulation undertaking.
4. Where the amount of the basic pension annuity calculated for a participant exceeds the amount of three state social insurance basic pensions, the participant shall be entitled to receive an accumulated portion of pension assets which exceeds a lump sum contribution for the acquisition of the basic pension annuity in the amount of three state social insurance basic pensions from a pension accumulation undertaking in the form of a periodical or lump sum pension benefit.
5. Entitlement to a periodical or lump sum pension benefit according to paragraph 3 of this Article shall not prohibit a participant from acquiring a pension annuity instead of the periodical or lump sum pension benefit.
6. A participant for whom it is compulsory to acquire a pension annuity shall have the right to select a payer of the pension annuity and, to the extent that this does not contradict this Law, the type of the pension annuity.
Article 26. Payment of a Pension Annuity
1. A pension annuity shall be paid on the basis of a pension annuity agreement covered by a lump sum contribution from the pension assets accumulated with a pension fund on behalf a participant. This lump sum benefit shall paid on the basis of a pension benefit agreement to an insurance undertaking with which a participant has concluded a pension annuity agreement on the terms and conditions of the payment of the pension annuity.
2. The right to engage in the activity of pension annuities shall be granted to an insurance undertaking which has obtained an underwriting licence, issued for insurance group activity indicated in Article 7(2)(1) of the Law on Insurance. The information, related to a pension annuity and its payment and set forth in the Law on Insurance and this Law, shall be referred in the rules of insurance of pension annuity agreements. The Supervisory Authority has the right to lay down any other information, which shall be indicated in the rules of insurance of pension annuity agreements.
3. An insurance undertaking engaged in the activity of pension annuities shall be prohibited from refusing to conclude or from otherwise avoiding the conclusion of a pension annuity agreement with a participant who, in accordance with the procedure laid down by this Law, is entitled to a pension benefit. When concluding a pension annuity agreement, it shall be prohibited to require, in any form, a participant’s health examination data and to use them.
4. An insurance undertaking with which a participant has concluded a pension annuity agreement shall give notice of the conclusion of the agreement no later than within one working day in writing (or, subject to mutual agreement of the procedure for submitting information, by electronic means) to a pension accumulation undertaking, where the participant’s pension assets are accumulated with a pension fund managed by the undertaking. Upon the receipt of a notification of the conclusion of the pension annuity agreement, the pension accumulation undertaking shall, in accordance with the procedure laid down in a pension benefit agreement, transfer the participant’s funds (or part thereof) to an account indicated by the insurance undertaking.
5. A pension annuity shall be paid to a former participant at least once per 3 months for his lifetime. It shall be prohibited to establish a decreasing annuity.
6. The payment of a pension annuity shall commence on the day indicated in a pension annuity agreement. The correctness of the payment of a pension annuity shall be supervised by the Supervisory Authority.
7. A pension annuity agreement may be terminated only when the other party does not perform or improperly performs the pension annuity agreement and this is considered to be the material breach of the agreement, or when the agreement is declared null and void, except for the case specified in paragraph 8 of this Article. Upon the effective date of the court order, which declares the pension annuity agreement null and void, or termination of the agreement due to the material breach of the agreement, an insurance undertaking shall transfer the received lump sum contribution (by deducting the amount of paid pension annuities, if the payment of such amounts has already begun) no later than within 3 working days from the date of receipt of the notification about the conclusion of a new pension annuity agreement, to another insurance undertaking with which the new pension annuity agreement was concluded by the participant. The insurance undertaking with which the new pension annuity agreement was concluded by the participant, shall notify the insurance undertaking, which keeps the transferred funds, in writing about the conclusion of the agreement no later than within one working day from the day of conclusion of the new pension annuity agreement. The insurance undertaking shall keep the funds, which are subject to transfer, until their actual transfer to another insurance undertaking, under the right of trust in a bank and separately from other funds. Those funds may be used only for the purposes of their transfer to another insurance undertaking with which the new agreement was concluded by the participant, as a lump sum contribution for the payment of the pension annuity agreement; those funds may not be used to levy execution for the performance of other obligations of the insurance undertaking. The funds, which have not been transferred to another insurance undertaking due to the death of the participant, shall be inherited in accordance with the procedure laid down by laws.
8. A pension annuity agreement shall be mutatis mutandis subject to the provisions for the Law on Insurance, which regulate the termination of insurance agreement on the basis of the preferential terms and conditions. When the insured terminates the pension annuity agreement on such grounds, a life insurance undertaking shall notify a pension accumulation undertaking, which manages the pension fund wherein the participant’s pension assets have been accumulated, about this within no later than one working day in writing (or, subject to mutual agreement on the information submission procedure, by electronic means).
Article 27. Ratio of State Social Insurance Pensions and Pension Benefits
1. In respect of the persons who participate in the accumulation of pensions, the amount of state social insurance old-age pensions shall be proportionately reduced in accordance with the procedure laid down by the Law on State Social Insurance Pensions.
2. The amount of state social insurance old-age pensions shall not be reduced for a period during which persons did not participate in the accumulation of pensions.
3. The participants who have been awarded and are paid the state social insurance work incapacity (before 1 July 2005 ― invalidity) pension shall be awarded the state social insurance old-age pension in accordance with the provisions of paragraphs 1 and 2 of this Article upon attaining old-age retirement age.
.
Article 28. Benefits to Migrant Persons
Persons moving for permanent residence to another state shall become entitled to pension benefits in accordance with the procedure laid down in this Law.
Article 29. Accounting and Reporting
1. The procedure for financial accounting and reporting of pension accumulation undertakings and the pension fund shall be laid down in the laws and other legal acts of the Republic of Lithuania.
Article 30. Rights of a Supervisory Authority
1. In addition to the rights specified in other laws, the Supervisory Authority shall have the right:
1) to adopt the legal acts specified in this Law and regulating the activity of pension accumulation undertakings;
2) to impose sanctions on pension accumulation undertakings and other persons who have violated this Law and/or other legal acts regulating the activity of pension accumulation undertakings or the interests of participants or where a threat of such a violation arises;
3) to impose administrative penalties on the persons who have violated this Law and/or other legal acts regulating the activity of pension accumulation undertakings;
4) to obtain data (including personal data), documents or copies thereof required for the supervision of the activity of pension accumulation undertakings from the state and municipal institutions, agencies and other persons;
5) the Supervisory Authority, in respect of the depositories of insurance undertakings, implements functions and has the rights indicated in Article 57(1)(2), (3), (7), (8), Article 58(1), (3), (4) and Article 59(1)(3) of the Law on the Supplementary Voluntary Accumulation of Pensions. Article 205 of the Law on Insurance shall be applied mutatis mutandis to the verifications for depositories carried out by the Supervisory Authority.
2. In addition to the sanctions specified in other laws, the Supervisory Authority shall have the right:
1) to impose an obligation on a pension accumulation undertaking to transfer the rights and duties arising from pension accumulation agreements;
3. The Supervisory Authority has the right to impose sanctions, indicated in the Law on the Supplementary Voluntary Accumulation of Pensions, on management undertakings. The Supervisory Authority has the right to impose sanctions, indicated in the Law on Insurance, on insurance undertakings engaged in the activity of pension accumulation. When imposing sanctions, the Supervisory Authority shall operate in accordance with the Law on the Supplementary Voluntary Accumulation of Pensions and the Law on Insurance to the extent that this Law does not stipulates otherwise.
4. The Supervisory Authority shall submit to the Ministry of Social Security and Labour information on the performance of pension accumulation undertakings, imposition of the sanctions indicated in this Article and related to restriction of the right to engage in the activity of the accumulation of pensions on the pension accumulation undertakings and other information specified in an agreement of the Ministry of Social Security and Labour and the Supervisory Authority on the exchange of information. The Supervisory Authority shall submit to the SSIF Board information on the requisites of pension accumulation undertakings, the licences issued to pension accumulation undertakings to engage in the activity of the accumulation of pensions, imposition of the sanctions related to restriction of the right to engage in the activity of the accumulation of pensions, reorganisation, restructuring, liquidation, bankruptcy of a pension accumulation undertaking, transfer of the rights and duties arising from pension accumulation agreements to another pension accumulation undertaking as well as other information related to the activity of the accumulation of pensions and necessary for the administration of the Register of Agreements. The procedure for and time limits of the submission of data shall be laid down by an agreement of the Supervisory Authority and the SSIF Board on the exchange of information.
5. The SSIF Board shall provide to the Supervisory Authority the information on participants in the pension funds managed by a specific pension accumulation undertaking, the monetary funds transferred to the account of a pension fund and other data required by the Supervisory Authority. The procedure for and time limits of the provision of data shall be laid down by an agreement indicated in paragraph 4 of this Article.
Article 31. Liability of Pension Accumulation Undertakings
1. Pension accumulation undertakings shall be held liable under the Republic of Lithuania laws for violations of this Law as well as other laws and legal acts of regulating the accumulation of pensions.
Article 32. Liability for Delay in the Payment of Contributions
1. The SSIF Board shall pay late payment interest to the pension funds managed by pension accumulation undertakings for the funds transferred to them with a delay through its own fault. The amount of and procedure for calculating late payment interest shall be laid down by the Law on State Social Insurance. Pension accumulation undertakings shall distribute calculated late payment interest among the participants in the pension funds managed by them for whom pension contributions have not been paid on time.
2. The liability of insurers for the funds not transferred on time or for the payment of unlawfully reduced contributions shall be laid down by laws.
3. Termination of pension contribution payments to pension accumulation undertakings or other payment violations cannot serve as a basis for the termination of a pension accumulation agreement or restrict the participants’ property rights or other rights.
I promulgate this Law passed by the Seimas of the Republic of Lithuania.
PRESIDENT OF THE REPUBLIC ROLANDAS PAKSAS
Amendments:
1.
Seimas of the Republic of Lithuania, Law
No IX-2254, 01/06/2004, Valstybės žinios (Official Gazette), 2004, No 96-3521 (19/06/2004)
LAW AMENDING AND SUPPLEMENTING ARTICLES 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 15, 19, 20, 22, 28, 30 OF THE LAW ON THE ACCUMULATION OF PENSIONS
2.
Seimas of the Republic of Lithuania, Law
No IX-2541, 04/11/2004, Valstybės žinios (Official Gazette), 2004, No 171-6301 (26/11/2004)
LAW AMENDING THE LAW ON REFORM OF THE PENSION SYSTEM, THE LAW ON the Supplementary Voluntary Accumulation of Pensions, THE LAW ON THE ACCUMULATION OF PENSIONS
The Law is in force since 1 January 2005
3.
Seimas of the Republic of Lithuania, Law
No X-208, 19/05/2005, Valstybės žinios (Official Gazette), 2005, No 71-2554 (07/06/2005)
LAW AMENDING AND SUPPLEMENTING THE LAW ON SOCIAL INTEGRATION OF THE DISABLED, THE LAW ON STATE PENSIONS, THE TEMPORARY LAW ON STATE PENSIONS FOR SCIENTISTS, THE LAW ON THE EARLY PAYMENT OF STATE SOCIAL INSURANCE OLD-AGE PENSIONS, THE LAW ON STATE PENSIONS FOR JUDGES, THE LAW ON THE ACCUMULATION OF PENSIONS, THE LAW ON THE STATUS OF The signatories of the lITHUANIAN Act of Independence
The Law is in force since 1 July 2005, except Article 3 of the section II
4.
Seimas of the Republic of Lithuania, Law
No X-374, 18/10/2005, Valstybės žinios (Official Gazette), 2005, No 127-4535 (27/10/2005)
LAW AMENDING ARTICLES 21, 22, AND 23 OF THE LAW ON THE ACCUMULATION OF PENSIONS
5.
Seimas of the Republic of Lithuania, Law
No X-972, 12/12/2006, Valstybės žinios (Official Gazette), 2006, No 144-5462 (30/12/2006)
LAW AMENDING AND SUPPLEMENTING ARTICLES 3, 4, 6, 7, 8, 10, 12, 13, 15, 17, 19, 20, 24, 28 OF THE LAW ON THE ACCUMULATION OF PENSIONS AND THE SUPPLEMENTING OF THE LAW WITH ARTICLES 131 AND 181
The Law is in force since 1 July 2007, except Article 3(1), Articles 5, 7, 8, 11, 12, 13, 14, 15 and 18.
The Government or an institution authorised by it shall prepare and confirm the provisions for the register of pension accumulation agreements by the 1 July 2007.
Pension accumulation undertakings shall prepare and submit to the Supervisory Authority the rules, which set out the criteria and provisions for the selection and amendment of the pension fund benchmarks of a pension acumulation undertaking by the 1 July 2007.
Pension accumulation undertakings shall co-ordinate the rules of their managed pension funds with the regulations of this Law by 1 July 2007 and submit them to the Supervisory Authority for confirmation. In this case, the amendments of the pension fund rules shall come into force after 30 days from their confirmation in the Supervisory Authority, but no earlier than Article 9 of this Law shall come into force. These amendments of the pension fund rules do not require the approval of participants of pension funds. Pension accumulation undertakings have the right to inform the participants about the amendments of the pension fund rules by presenting the nearest notice provided in Article 51(1) of the Law on the Supplementary Voluntary Accumulation of Pensions. In this case, the regulations indicated in the first sentence of Article 23(6) of the Law on the Supplementary Voluntary Accumulation of Pensions shall not be applied.
6.
Seimas of the Republic of Lithuania, Law
No X-1588, 05/06/2008, Valstybės žinios (Official Gazette), 2008, No 71-2714 (21/06/2008)
LAW AMENDING AND SUPPLEMENTING ARTICLES 3, 12, 13 OF THE LAW ON THE ACCUMULATION OF PENSIONS
7.
Seimas of the Republic of Lithuania, Law
No XI-476, 12/11/2009, Valstybės žinios (Official Gazette), 2009, No 141-6199 (28/11/2009)
LAW AMENDING AND SUPPLEMENTING ARTICLE 4 OF THE LAW ON THE ACCUMULATION OF PENSIONS
8.
Seimas of the Republic of Lithuania, Law
No XI-702, 25/03/2010, Valstybės žinios (Official Gazette), 2010, No 38-1776 (03/04/2010)
LAW AMENDING AND SUPPLEMENTING ARTICLES 9, 10, 22, 24 OF THE LAW ON THE ACCUMULATION OF PENSIONS
Article 2 and Article 3(2) of this Law is in force since 1 January 2011
9.
Seimas of the Republic of Lithuania, Law
No XI-1676, 17/11/2011, Valstybės žinios (Official Gazette), 2011, No 146-6822 (01/12/2011)
LAW AMENDING THE LAW ON THE ACCUMULATION OF PENSIONS
New version of the Law
The Law is in force since 1 January 2012
10.
Seimas of the Republic of Lithuania, Law
No XI-2279, 16/10/2012, Valstybės žinios (Official Gazette), 2012, No 127-6387 (03/11/2012)
LAW AMENDING ARTICLE 11 OF THE LAW ON THE ACCUMULATION OF PENSIONS
The Law is in force since 1 January 2016
The validity of the Law is amended:
10.1.
Seimas of the Republic of Lithuania, Law
No XII-721, 19/12/2013, Valstybės žinios (Official Gazette), 2013, No 140-7082 (30/12/2013)
LAW AMENDING ARTICLE 2 OF THE LAW AMENDING ARTICLE 11 OF THE REPUBLIC OF LITHUANIA LAW ON THE ACCUMULATION OF PENSIONS
11.
Seimas of the Republic of Lithuania, Law
No XI-2410, 13/11/2012, Valstybės žinios (Official Gazette), 2012, No 136-6964 (24/11/2012)
LAW AMENDING THE LAW ON THE ACCUMULATION OF PENSIONS
New version of the Law
The new version of Article 10(7), (8) of the Republic of Lithuania Law on Accumulation of Pensions laid down in Article 1 of this Law shall become effective on 1 January 2013.
The provisions of this Law shall be applied to all valid pension accumulation agreements, including those concluded before the effective date of this Law.
Within 3 months from the effective date of this Law, pension accumulation undertakings shall adjust the rules of the pension funds managed by them with the provisions of this Law and submit them for approval to the Supervisory Authority. Those amendments of the rules of pension funds shall not require the consent of the participants. Pension accumulation undertakings shall notify the participants about the amendments of the rules of pension funds in the procedure laid down in Article 21(6) of the Law on Supplementary Voluntary Accumulation of Pensions or when submitting the latest notification referred to in Article 52(1) of the Law on the Supplementary Voluntary Accumulation of Pensions.
12.
Seimas of the Republic of Lithuania, Law
No XII-683, 17/12/2013, Valstybės žinios (Official Gazette), 2013, No 140-7060 (30/12/2013)
LAW AMENDING ARTICLE 10 OF THE REPUBLIC OF LITHUANIA LAW ON THE ACCUMULATION OF PENSIONS
The Law is in force since 1 January 2014
*** The end ***
Edited by Aušrinė Trapinskienė (06/01/2014)