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Volodymyr Groysman assures the launch of pension improvement being a systemic decision rather than an ad-hoc solution, and it should not affect the growth of prices
13.10.2017 | 10:28

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 Government stressed.

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 wont 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.


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