On the causes and direction of the development of the Lithuanian social policy model and its guarantees

Abstract

They do not stress the necessity of the larger scope of social security and social workers work performed in order to reintegrate marginal groups into normal life, in comparison with "usual inhabitants”. During twenty years of its independence, considering such indicators as high inequality level, high suicide rate, short lifespan, clientism, etc., Lithuanian social system has obtained the face of “inhuman nature”. High level of unemployment and emigration are still considered the main economic and social problems of the country. It is obvious that the worsening social conditions and inequality rates in Lithuania persisted even during the long GDP rise period from 2001 to 2008. The main social security object in Lithuania is the old age pension system. It is necessary to start a new complex reform of the system, the main goals of which are: to refuse privileged pay-offs, gradually raise retirement age, revise all social security system pay-offs, balance the proportion between the ones paying contributions and the ones receiving pay-offs, balance the budget of the social security fund, revise volumes of social security contributions (for instance, to apply health insurance contribution to pensions), change unemployment social security and early pensions system etc. State pension system creates a higher quality social security than private pension schemes. The goal of the pension system is to ensure sufficiency of pensions. Therefore, obligations of the state to the participants of the pension system should not be reduced. Establishing independent permanently operating institutions responsible for revision of the pension system or assessment of its course may help consolidate the management of the pension system. The pension system design must be focused on the economic-mathematical methods and not on political decisions.