2023-06-01
National Audit Office: The accounts of the Pension Annuity Fund are correct in all material respects
The National Audit Office carried out an annual financial audit of the 2022 set of accounts of the Pension Annuity Fund in accordance with the Law on the National Audit Office and the Law on the Accumulation of Pensions. "The results of the audit show that the Fund's accounts are correct in all material respects," said Laura Janulevičienė, Principal Public Auditor-Audit Team Leader.
If a person has accumulated in the second pillar pension fund EUR 10 000 (from 2023 - EUR 10.8 thousand) or more, the accumulated assets can only be paid out after the purchase of a pension annuity from SODRA, which is the payer of pension annuities. At the end of 2022, the Fund had assets of EUR 25.2 million and 1 943 annuitants, while 1 074 participants in the second pension pillar who had already reached retirement age and were entitled to a pension annuity postponed its the purchase o a later time.
Information on the reasons for postponing the purchase of an annuity is not collected, however, it would be useful for the purpose of planning the income of the Fund and for more efficient attraction of new members. In response to the suggestion of the National Audit Office, the Ministry of Social Security and Labour addressed the Lithuanian Association of Investment and Pension Funds to collect such data.
In 2022, the sharp fall in global stock prices also led to a fall in the value of the assets managed by the Fund, which was 3% lower than the Fund's liabilities to annuitants. In SODRA's assessment, this situation does not pose a risk to the long-term sustainability of the Fund, given the continuation of the chosen asset investment strategy.