Pension reform is on the way. What will happen to the Ukrainians

Пенсионная реформа на подходе. Что ждет украинцев

The pension age will not raise, but for retirement, will need relevant experience.

In the political life of Ukraine is the eternal topic – the question of language, or, for example, pension reform.

However, it seems the country is now very close to resolving the issue of pensions.

The international monetary Fund expects that the pension reform in Ukraine is expected to be launched in 2018. learned that is now known about the order of carrying out of pension reform in Ukraine.

Time frame

According to the Memorandum, the IMF, the pension reform law should be adopted by the Verkhovna Rada until the end of April of the current year.

But Parliament is closed until may 16, so to carry out this provision within a period not exactly succeed.

The Minister of social policy Andrei Reva says that a government bill on pension reform in Parliament should wait for 16 may, just in time for the first meeting after the holidays.

The current situation

The problem of Ukraine’s low retirement age and the possibility of early retirement, making retirement affordable for many citizens.

Ukrainians retire much earlier on average than workers in other European countries. The average age of retirement for men is about 58.5 years, for women at least 56 years. For comparison: the average EU amount of 63.6 years for men and 62.6 years for women.

This led to the fact that now in Ukraine there are over 12 million pensioners – about 30% of the population.

The ratio of payers of pension contributions for retirees – almost 1 to 1, this is one of the lowest in the world.

Given the large number of pensioners, social insurance contributions cover only half of the funds necessary for the payment of pensions, although the pensions are small.

The Promises Of Groysman

Last week the pension reform announced by the Prime Minister Vladimir Groysman.

The statement of the Prime Minister, the reform of pensions will be increased to 5.6 million pensioners (more than 12 million), taxation of pensions will be abolished, raising the retirement age is not provided.

In addition, the government hopes to 2024 to make the Pension Fund deficit, and the pension system fair.

Пенсионная реформа на подходе. Что ждет украинцев


What will happen

IMF in talks with Ukrainian officials insisted on raising the retirement age. The Ukrainian authorities were trying to escape from the rigid age limits, and they succeeded – in the final version of the Memorandum specific age of retirement is missing.

At the end of last year, the head of the Ministry Andrey Reva commented that the time of the Exodus of Ukrainians to retire was linked with insurance experience, in which contributions are so-called single insurance contribution to the Pension Fund.

According to Reva, if a person 60 years will not be 20 years of insurance experience, hope to retire by this time he shouldn’t. But the missing experience can be “purchased”.

Ukraine agreed to set several options for retirement. Employees will be able to choose the time of exit, depending on seniority. In particular, they will receive incentive payments for later retirement.

In addition, for hazardous occupations will be additional rate of Single social contribution, which will pay employers. These funds will be accumulated in personalized accounts, and used as bridge financing between early retirement and described the system.

It is also possible to carry the amount of minimum pension from the social standards and the appointment of its in the amount of 40% of the minimum wage.

The point is that the minimum pension should be not less than 40% of the minimum wage and the average pension — not less than 40% of the average wage.