State Social Insurance Funding: Contribution Collection Problems (article in Lithuanian)

Arvydas Guogis, Audrius Bitinas

Abstract


Today’s European Union Member States and European Union authorities, faced with economic recession and the globalization phenomenon, look for new ways to ensure adequate social protection systems and sustainability. One of the objectives is to increase the social security number of contributors, not only to attract new contributors, but also to collect revenue from non-observed economy (otherwise known as the “shadow economy”). As the number of social security contributors declines each year, the state looks for ways to make the counterparty eligible for all social security benefits (pension provision, sickness and maternity benefits, occupational accidents and occupational disease benefits, unemployment insurance and health benefits) payment. Of course, when fighting against a shadow economy it is necessary to introduce other reforms—with increasing life expectancy, extending the retirement age (or flexible as is determined by promoting longer work time to earn a higher pension), extending the length of insurance period, and so on. Fighting against shadow economy means not only the reduction of the public deficit or improvement of the management efficiency of the system, but also ensuring the efficiency of social spending and social insurance principles.

Keywords


social protection; financing; state social insurance; contributions; reform

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"Societal studies" ISSN online 2029-2244 / ISSN print 2029-2236