Assessment of regularity of 2021 set of accounts of the Pension annuity fund

The National Audit Office carried out a financial audit of the 2021 Set of Accounts of the Pension Annuity Fund. Its results show that the Fund’s accounts are correct in all material respects.

In 2004, a pension scheme, allowing residents to accumulate part of their state social insurance contribution in pension funds became operational in Lithuania. Since 1 July 2020, accumulated sum in the 2nd pillar pension fund, if it exceeds EUR 10,000, has been paid to the person by the State Social Insurance Fund Board (VSDFV) under the Ministry of Social Security and Labour, which administers the Pension Annuity Fund.

According to the data of the accounts of the Pension Annuity Fund, at the end of 2021 the Fund had 991 annuity beneficiaries, had assets of EUR 15.3 million at its disposal, the Fund’s management and administration costs amounted to EUR 0.3 million.

“We have established that the procedure under which the accounting of the Fund’s management and administration costs are kept does not include the reimbursement of all costs incurred by the VSDFV as a pension annuity payer. As a result, part of the costs is not recorded in the Fund’s accounts and is not measured accordingly in the calculation of its performance results. In order to ensure the correct accounting of the costs of the Fund, we recommended that this procedure be supplemented. The Board planned to implement the recommendation by the end of September", says Laura Janulevičienė, Senior Public Auditor of Financial Audit Department 2.

The National Audit Office, in accordance with the Law on the National Audit Office and the Law on the Accumulation of Pensions, will conduct the public audit of the Pension Annuity Fund every year. The annual set of accounts of this Fund, together with the Auditor‘s report issued by the National Audit Office on this set of accounts, is published on the website of the VSDFV no later than by 1 June of the following accounting year.

Currently, the National Audit Office is also carrying out an Assessment of Changes in the Pension System. It examines the old-age pension scheme and assesses whether the changes are geared towards a greater replacement of income in old age or towards reduction in poverty among people of retirement age. The results of this assessment will be published in July.

Assessment of regularity of 2021 set of accounts of the Pension annuity fund