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29.9 30.45
Economy 2019-03-15T05:24:02+02:00
Ukrainian news
Cabinet Seals Bill On Pension Reform

Cabinet Seals Bill On Pension Reform

The Cabinet of Ministers of Ukraine has endorsed a bill on the pension reform.

The Cabinet of Ministers endorsed the bill at its sitting on Wednesday, Ukrainian News Agency reports.

During the presentation of the bill Prime Minister of Ukraine Volodymyr Groysman said the minimal pension insurance record would be increased from 15 to 25 years.

Prime Minister Groysman voiced hope that the pension reform bill would be adopted by the Verkhovna Rada before the summer holidays and would take effect from October 1, 2017.

The bill will be handed to the National Reforms Council before submission to the Verkhovna Rada.

Prime Minister Groysman estimates at UAH 30.7 billion the sum required to increase pensions in 2018.

The bill of the Cabinet of Ministers of Ukraine on the pension reform introduces an opportunity of buying of up to five years of lacking pension insurance record.

As Ukrainian News Agency earlier reported, in April 2017, Jerome Vacher, the IMF's resident representative in Ukraine, said the privatization, the pension reform and the land reform would be a test for the Cabinet of Ministers headed by Prime Minister Groysman.

On March 11, 2015, the International Monetary Fund approved the crediting program for economy of Ukraine using the EFF (Extended Fund Facility) program worth the total of USD 17.5 billion for the period of four years.

According to the memorandum between Ukraine and the IMF on economic and financial policy of Ukraine, the Verkhovna Rada of Ukraine shall adopt comprehensive pension reform before late April 2017 to take effect Japan 1, 2018.

This reform shall have the following features: a new set of retirement options, with a wider range of retirement ages than at present, offering an important degree of choice and dependent on total years of service, and with pension benefits that provide incentives for longer employment and later retirement; savings of at least 3 percent of GDP over the long term, including by lengthening the effective years of service at retirement; and an assurance that Ukrainian citizens have pensions that are proportionate to their contributions and adequate in real terms.