The raise of pensions for over 9 million seniors in Ukraine
starting October is not a one-off decision, but a systemic change that has
triggered through the adoption of a pension reform. This was stated by Prime
Minister of Ukraine Volodymyr Groysman on air of Channel 5.
“I have been struggling for this reform. It is crucial. The
situation demanded change. And our current objective is not a one-time increase
of pensions, what used to give rise for abuse by politicians, but the
introduction of a fair pension system,” stressed Volodymyr Groysman, “The new
pension system provides an opportunity to raise pensions for 9 million retirees.
But above all, this system is not an ad-hoc solution. On annual basis, starting
2019, there will be applied indexation that will depend on the showings of economic
development and inflation rate.”
The Head of Government reminded that the pillars of the reform,
apart from improved pensions and preventing manipulation in superannuation payments,
include exemption from taxation of employed pensioners and the availability to
have an official length of service and, consequently, further process towards
official employment. "Those times when a person was hired encroaching on rights
and lacking necessary documents should become history," the Head of
He accentuated that another vital issue is to maintain the consistency
of change. "My commitment is to adhere to the reform so that none could
deprive the people of the future. I will protect and won’t allow anyone to
destroy the new pension system wishing to correct coefficients, for instance",
assured the Prime Minister.
The Prime Minister emphasized an assertion about the risk of
price hikes due to the increase of pensions is groundless. He also placed a
special emphasis to the fact that the price rise that people are witnessing
today caused by objective factors, including crop failure from some food
segments and a decline in national pig herd due to illness.
“I do not see any reasons for rising prices (because of
increased pensions)”, claimed the Prime Minister and added that the
Government is currently working out and regularly approves decisions that will
allow in the future to correct inflation figures because of the growth of
market offers including in the market of agricultural products.
He thanked President of Ukraine Petro Poroshenko and Speaker
of the Verkhovna Rada of Ukraine Andrii Parubii for the adoption of the pension reform and all
lawmakers who voted for the said reform. The Prime Minister stressed it is
essential to shape the accumulation model of the pension system. «The
Government has approved a plan of action for the introduction of such a system.
We will work to ensure that it will be implemented on transparent, stable and
guaranteed basis. We will adopt responsible and well-reasoned approach concerning
this issue», underscored Volodymyr Groysman.