The Government's bill on pension reform which was introduced to the
wider public on May 17 - is a major and landmark decision
seek to restore social fairness principle and to preserve the pension
system of Ukraine in its capacity as such. This was stated by representatives
of the expert community during the meeting with Prime Minister of Ukraine
Volodymyr Groysman. The meeting in format of meaningful talk was held upon the
initiative of the Head of Government.
Volodymyr Groysman presented key aspects of future reform, inter alia
updating of pensions, introduction of a new formula for calculating payments
based on average pay as well as of schemes for pension entitlements and pension
insurance record that will provide an opportunity to reduce shadow employment,
to provide a possibility to increase additional payment for labor experience,
to remove in 2018 early retirement for teachers, doctors, social workers and to
extend the rate of unified social contribution (by 15 and 7%), for harmful and
heavy industries preferential retirement will be preserved for employees.
The Head of Government stressed that in case of approval by Parliament
of pension reform, retirement payments to be raised starting October 1 for 5.62 million pensioners in the medium term -
to achieve the deficit-free budget of the Pension Fund and to introduce in 2019
savings programs for workers of certain occupations, for example for miners.
The Prime Minister stressed that in order to implement offered
incentives it is necessary to allocate a sum worth UAH 12 billion and these funds will be provided
due to increased revenues to the Pension Fund after the doubling the minimum
wage. In 2018 Government's proposals will require UAH 30 billion. These resources
will be allocated through the further growth of incomes of the budget of the
Pension Fund, the deshadowing of the economy and
through improvement of the payment discipline in terms of payment of the
unified social contribution.
He recalled that the draft law had been already submitted to the
National Reform Council for further consideration under the President of
Ukraine and expressed hope that the Government's proposals will find support in
the National Reform Council and later in the Parliament where they will also be
“We specifically focused on the pension changes. We believe that we
found the format that can enable us to solve a number of problems pertaining to
pension system and will allow us to move on, to continue pursuing reform of the
pension system, underlined the Prime Minister. I would really like this reform to be kicked off. To this end, we
need support of the Parliament as well as of the expert community".
In turn, a group of experts commended the significant success of the
measures taken by the Government. Moreover, Executive Director of the Centre
for economic strategy Hlib Vyshlinsky determined the Government’s bill on
pension reform as a“ landmark decision for Ukraine”.
“I also wish to commend the work carried out by the Government
concerning this reform”. I would like to call it “momentous decision”. In my
opinion, this is one of the most crucial economic reforms which were
implemented in Ukraine, especially with regard to the approach regarding
improvement of social fairness principle due to amendments in term of labor
experience”, urged the expert.