Currently, even with the same length of service and salary level, Ukrainians receive different pensions. A three-tier system should correct this and balance the situation.
Currently, even with the same length of service and salary level, Ukrainians receive different pensions. A three-tier system should correct this and balance the situation.
As Minister of Social Policy, Family and National Unity Denis Ulyutin told RBC-Ukraine in an interview, the idea is to divide payments into three components: a solidarity system, special pensions, and a accumulative part.
In addition, he reported that they want to raise the pension in Ukraine to 6,000 UAH from the current 3,400 UAH, and such a change will affect at least a third of pensioners. But there is a condition — reform of the solidarity system.
«If a person receives 6 thousand hryvnias instead of 4 thousand, then this is a different quality of life, the opportunity to receive medicines, less need for subsidies,» the official believes. The revision of payments will affect a large group of state employees — those who worked in jobs with low salaries. «They all receive an increase. This is a significant number of people — a third of pensioners,» the minister said. As part of the reform, according to Ulyutin, special pensions will not increase, which will allow to level out imbalances in the solidarity system.
Currently, according to him, the relevant bill is being finalized, but coordination with colleagues in the government and international partners is still ahead.
The official explained how the pension system will be reformed and what types of payments to expect.
Solidarity pension - should depend on contributions to the solidarity system. And with this approach, for example, the pension of a teacher with 40 years of experience will grow by about one and a half to two times. «The more a person worked, even for an average salary, he will still receive a normal pension in the end. And it will be much higher than now,» he said. There may also be a basic payment that should cover the needs of those people who do not have sufficient insurance experience.
«It will be determined by the budget for the relevant year and ideally should provide a basic subsistence minimum,» said Ulyutin, clarifying that currently the subsistence minimum of 2,595 hryvnias is not actual.
Professional (special) pension. According to the Cabinet of Ministers' plan, existing special pensions will remain, but they should not be paid from the solidarity system.
«You can retire early if you have a preferential length of service, but until the general retirement age you will not receive anything from the solidarity system. Payments will only be from the professional part,» the minister added.
According to him, conditions must be created where both professional and general experience will be taken into account.
«In fact, we are not counting the years spent in the profession, but the amount of money you paid during this time. We are moving to a different approach to pension formation. A pension is what you earned,» the minister emphasized.
To convert special pensions into professional pensions, it takes at least 13 years, if you start from 2026 or even 2027.
Funded pension. The third element of the reform is a voluntary funded pension. This part should not be mandatory.
For a savings fund, for example, starting in 2027, you can start making deductions in addition to the SSC, which is paid into the solidarity system.
«You can refuse this. But this will lead to your pension being at a lower level,» Ulyutin explained.
