The Cabinet of Ministers presented to the people’s deputies the concept of the future pension reform, which is planned to be submitted to the Verkhovna Rada for consideration no later than the fall of 2026.
The Cabinet of Ministers presented to the people’s deputies the concept of the future pension reform, which is planned to be submitted to the Verkhovna Rada for consideration no later than the fall of 2026.
This was announced by MP Olga Vasilevska-Smaglyuk after a meeting of the Coalition Council.
According to her, the reform involves changing the approach to the formation of pension payments. In particular, the pension will consist of two parts:
The government also proposes to introduce a guaranteed minimum level of pension payments and reduce the gap between minimum and maximum pensions.
One of the key elements of the reform could be the gradual transfer of special pensions to the system of occupational pension programs. In addition, the government plans to stimulate the development of voluntary pension savings.
The Ministry of Economy explains that the logic of the reform lies primarily in the redistribution of funds within the pension system. According to the authors of the reform, the basic part of the pension should eliminate the situation where payments to pensioners who retired several years ago significantly lag behind payments to new pensioners, even with the same length of service and salary level.
During the discussion of the concept, the deputies raised a number of debatable issues, in particular, regarding the so-called «elite» pensions of certain categories of citizens and the size of the single social contribution (SSC). According to Vasilevska-Smaglyuk, the meeting participants agreed to continue work on the draft law and speed up the process of its approval.
For now, it’s just a concept for the reform. The final parameters of the future bill are to be presented to parliament in the coming months.
