A pension reform offered by the Government, envisaging the modernizing of
pensions since October 1 for 9 million retirees, the abolition of taxation of
pensions for working pensioners and the resumption of justice for people with
high seniority, aims to eliminate a ‘leveling’ principle through which over 80%
of pensioners have been obtaining the minimum pension, as well as to promote
de-shadowing of economy through increased financial discipline. This was stated
by Prime Minister of Ukraine Volodymyr Groysman during a meeting with
representatives of regional media.
Describing the key pillars of the pension reform, the Prime Minister reiterated
again that an issue of raising the retirement age is
excluded. "We are not going to raise the pension age,
we are restoring justice”, explained Volodymyr Groysman. Pension means labour achievement, it shouldn’t
be treated as pecuniary aid. Which is why we assume that a person should have
the minimum employment record, he was quoted as saying.
The Prime Minister explained that the threshold for assigning the
minimum pension set at 25 years is considered a real figure. "Even if you were
employed at 25, by the age of 50 you will have the required 25 years of
service. And the retirement age will be 60", explained Volodymyr Groysman.
He accentuated it impossible to let the situation go as it is.
"The fact is that the Pension Fund’s deficit is growing. It is now over
UAH 140 billion – it exceeds funding for education, science and culture as a
total. It exceeds the defense budget. But the system is far from perfect. If we
waste time, in 3-5 years the Pension Fund will become insolvent”, said the
Prime Minister. “However, we have found a formula of how, avoiding an increase
in the retirement age, to build a new model - the normal system. The pension
reform shall annul leveling and shrink the shadow economy, and in a few years we
will be able to eliminate the deficit of the Pension Fund", he explained.
In this regard, Volodymyr Groysman added that along with the
introduction of pension changes, the Government will maintain the course
towards strengthening economy of the country - through the launch of programs
on support of industry, development of national product and opening up new
markets for Ukrainian exports. According to him, the Government is currently
developing a draft budget resolution planning further GDP growth in it.
"And speaking about the pension reform, I can tell that according
to the preliminary agreement, the next week the President of Ukraine will summon
a meeting of the National Council of Reform, during which we are to discuss the
key pillars of the pension reform. Aftermath, we will go to the Parliament. However, our basic proposals have been already announced", summed
up Volodymyr Groysman.