The Ministry of Social Policy plans to submit a draft law on a new pension reform to the Verkhovna Rada in September. It provides for a transition to a three-tier pension system, a voluntary accumulation model instead of a mandatory one, and changes to the principles of accruing special pensions for certain categories of employees.
The Ministry of Social Policy plans to submit a draft law on a new pension reform to the Verkhovna Rada in September. It provides for a transition to a three-tier pension system, a voluntary accumulation model instead of a mandatory one, and changes to the principles of accruing special pensions for certain categories of employees.
This is reported by Forbes Ukraine with reference to the response of the Ministry of Social Policy.
According to the ministry, the law may come into force on January 1, 2027, and the accumulation system will actually start operating from 2028.
According to the assessment of the Ministry of Social Policy, the launch of the new system will require significant expenditures from the state budget: 2027 — UAH 169 billion; 2028 — UAH 140 billion; 2029 — UAH 157 billion.
The first nine months after the adoption of the law are planned to be used to create the institutions necessary to launch the savings system.
The Ministry of Finance is not yet commenting on the reform, as the final text of the draft law has not yet been received by the ministry.
The Ministry of Social Policy proposes to build a pension system with three levels:
At the first stage, the solidarity system will change. The pension will consist of two parts:
According to Danylo Getmantsev, the head of the Verkhovna Rada’s tax committee, who has reviewed the concept, the starting amount of the basic payment may be UAH 3,000, and the minimum pension may be UAH 6,000. If the amount of the insurance and basic parts is less, the state will compensate for the difference.
At the same time, the basic payment will be gradually reduced for people with a higher insurance pension. If the total pension exceeds UAH 10,000, the basic supplement may not be accrued at all.
One of the main differences between the new concept and the previous ones is the abandonment of mandatory pension savings.
Employees will be automatically included in the savings system, but they will have the right to refuse participation (auto-enrollment model). Contributions to this system are planned to begin from January 1, 2028.
The reform also proposes to change the system of special pensions for prosecutors, judges, security forces and other categories of employees. Instead of the current model, it is planned to introduce professional pension insurance. A separate pension account will be opened for each employee, to which the employer will pay additional contributions in addition to the Social Security Contribution. These funds will be invested, and in the future a similar mechanism may be allowed to be used by private employers as part of a social package.
