Problems of the new pension and social security reform concept in Lithuania implementing European and international strategies

Abstract

The aim of this article is to define the Lithuanian pension system model and implemented reforms following to the recommendations of European institutions and international organizations. Problems of the Lithuanian pension system are similar to the others European Union countries; therefore international organizations recommendations and indications for future reforms should be evaluated and implemented. The pension system reform of 2003 raised the wide discussion on the state social pension insurance system future development of Lithuania. This reform clearly demonstrates that the government opted for a liberal position - funded pension system’s participants on a voluntary basis (but actively promoting) has a possibility to transfer a part of the state social insurance contributions into private pension funds.