This is because, upon withdrawing from pension accumulation and recovering the accumulated funds, although temporarily, a person’s financial situation changes, which is taken into account both when granting cash social assistance and when assessing financial capacity to receive social services.
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Cash social assistance for people in need is granted by assessing income and assets. Usually, income for assistance is calculated based on the average income of the three months prior to the month from which the assistance is granted.
It is important that this applies both when assessing eligibility for social benefits, housing heating and water expense compensations, social support for students, as well as additional child benefits for children from low-income families, etc.
This means that, for example, if a person who recovered accumulated funds in July applies for social benefits or housing heating expense compensation in September, the withdrawn funds will be considered as income and may affect the granting and/or amount of assistance in the short term – up to a maximum of 3 months.
It is important to know that the pension assets accumulated in the pension fund, when paid out, are not considered when granting cash social assistance in three cases: when a person withdrew from pension accumulation due to having a 70% or higher participation level, if palliative care is assigned, and if the person is diagnosed with a serious illness confirmed by the list of the Minister of Health and the Minister of Social Security and Labour.
It is also relevant that if a person has debts and the bailiff enforces recovery from the funds received from the second pension pillar, this amount is included in the person’s (family’s) income when assessing eligibility for cash social assistance, except in cases where the funds were recovered for child support, i.e., so-called alimony.
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The Ministry of Social Security and Labour (SADM) reminds that people whose income per person per month does not exceed 1.1 of the state-supported income (SSI) amount are entitled to receive social benefits. This year it is 256.3 euros.
For low-income residents, compensation for housing heating is provided for the part exceeding 10% of the difference between income and 2 SSI amounts (this year – 466 euros) per family member or 3 SSI amounts (this year – 699 euros) for a single person living alone. Compensation for drinking water can be received when drinking water expenses exceed 2%, and compensation for hot water when expenses exceed 5% of the person’s or family’s income.
Residents facing financial difficulties should apply for cash social assistance to their local municipality.
The Ministry of Social Security and Labour reminds that all information about social assistance and social services for different life situations can be found on the ministry’s website – Social assistance: what am I entitled to?
Relevant information related to changes in the second pension pillar, possibilities of cash social assistance and social services upon receiving funds from the second pension accumulation pillar can also be found on the SADM website homepage – the news ticker “Cash social assistance and social services possibilities upon receiving funds from the second pension accumulation pillar: frequently asked questions,” as well as an updated special FAQ section for residents on the SADM website subpage – (II pension accumulation pillar changes – Ministry of Social Security and Labour of the Republic of Lithuania).
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