Government prepares pension reform, bill consideration planned no later than autumn - MP
Kyiv • UNN
The government presented a reform concept where the pension will consist of base and insurance components. It is planned to reduce the gap between payments by this autumn.
The Cabinet of Ministers presented to the Verkhovna Rada a concept for the future pension reform, which they intend to submit for parliamentary consideration no later than this autumn. In particular, it is planned to establish that pensions will consist of two parts, fix a guaranteed minimum level of payments, and reduce the gap between minimum and maximum pensions. This was reported by MP Olha Vasylevska-Smagliuk, according to UNN.
Today, at the Coalition Council, the government presented to the Verkhovna Rada the concept of the future pension reform, which they want to submit for parliamentary consideration no later than autumn
According to her, the project envisages the introduction of a guaranteed minimum level of pension payments and a reduction in the gap between minimum and maximum pensions.
According to the idea proposed by the government, the pension will consist of a base part, funded by the state, and an insurance part, which will depend on the length of service and contributions paid. The government also proposes to gradually transition special pensions into a system of professional pension programs and to develop voluntary pension savings
She noted that the Ministry of Economy "primarily sees the logic of the reform in the redistribution of funds within the system."
By introducing the base part, they expect to eliminate the effect currently observed where payments depreciate three years after retirement. Meanwhile, "new" retirees receive significantly higher payments despite having similar service records and salaries. Many problematic issues were discussed, including the "elite" pensions of certain professional clans, the size of the Unified Social Tax (UST), etc. It was agreed to continue discussing the bill and accelerate the approval process
As a reminder
Ukrainians will be able to verify their insurance record in case of lost documents, which simplifies the granting of pensions for those who lost records due to war, occupation, or the liquidation of enterprises—the Verkhovna Rada has passed the relevant bill.