Experts told what you should think at the start of the reform.
In Ukraine, 11 October launched the long-awaited and sometimes “sour” pension reform. In this regard, the Ukrainians are a number of important innovations.
The end of the old order
In Ukraine since Soviet times acted solidary system. That is, until retirement all working Ukrainians threw into one pot, and from there the payments were distributed to pensioners.
This practice would continue to exist, however, the demographic situation in Ukraine is such that pensioners have become more and more, and working people and youth — less. In addition, not all Ukrainians pay contributions to the Pension Fund, preferring to receive the salary “in envelopes”.
As a result, in this year’s budget deficit PFCs exceeded 140 billion, so that in a few years, the Fund would not go bankrupt. In particular, this spring, said Prime Minister Vladimir Groisman.
To avoid this it was decided to introduce a funded system, which comes into effect from 2019. What is it? This collection of contributions of citizens on the individual accounts in the special Fund. First, an additional contribution will be 2%, and then smoothly increases to 7%. Under this system, the Ukrainians after retirement, in addition to payments from the pension Fund would receive funds from another Fund.
Moreover, the law provided for the possibility of voluntary insurance that will solve the problem of pensions for those who have long worked abroad.
This practice is prevalent in many developed countries, that seems a positive sign. However, the IMF has already expressed concern that Kiev is in a hurry with innovations, and the country is not yet ready for such a radical change.
In the opinion of the Fund, we first had to reduce the shortage and to reduce the inflow of new pensioners, i.e. to balance the existing system, and then start a new one.
However, on 10 October, Finance Minister Alexander danyluk said that Ukraine intends to conclude a cooperation program with the IMF in 2018. If the government really implements his plan, the creditors will no longer have to worry.
Retirement age and insurance period
One of the main horror stories, which he loved to frighten Ukrainians opponents of reform is raising the retirement age. But this will not happen.
The retirement age has decided to leave unchanged, but strengthened the role of insurance.
The government considered that the Ukrainians, spent 35 years and receiving even the minimum wage, will be able to earn a minimum pension. But problems will arise for those who do not pay insurance premiums. Now, they will not receive pensions at the expense of others, and be forced to work longer (to 65 years).
Who will be able to retire early?
Also, the law identifies several categories of people who will be able to retire early.
This right is reserved for:
military/combatants ( 55 years);
artists (subject to availability of service from 20 to 35 years);
Chernobyl (with a reduction in the retirement age)
– mothers who raised 5 children or disabled since childhood (50 years);
– midgets and disproportionate dwarfs (40/45 years);
journalists (in the case of wounds and injuries received in the performance of official duties);
A little more positive
Also, the new law removed the restriction on payment of pensions to working pensioners. Thus the government hopes to encourage Ukrainians to work after retirement. Previously, the state did not pay these people 15%. However, the salaries of working pensioners will be to calculate the contributions to the Pension Fund and to take taxes.
Besides, the Verkhovna Rada managed to push through important amendment that extends the lists of activities under which the accrued insurance period. To take into account will be the following periods:
– military service (until the end of 2017);
– leave to care for a child up to 6 years (since 2004);
– maternity leave (2004 to 2013);
enterprise on “simplified tax system” (1998 to 30 June 2000 and from July 2000 to the end of 2017);
– study on the budget of higher education institutions on full-time.
The Cabinet opposed this amendment, which is contrary to the policy of reduction resulting in the budget of the Pension Fund deficit, but was forced to agree.
From 1 January 2018 the pension age will be appointed:
– if you have experience on the first of January 2018 25 years – 60 years. The range of the required experience will annually increase by 12 months, until reaching 35 years in 2028;
– if you have experience on the first of January 2018 from 15 to 25 years in 63. The range of the required experience will be increased annually by 12 months to achieve the range from 25 years to 35 years in 2028;
– in the presence of seniority on January 2019 – 15 years, but less than 16 years of age who would be eligible for retirement at 63, to grant a pension at 65. The range of the required experience will increase annually by 12 months. That is, 2028 pension at 65 will get a person with 15-25 years of experience.
The government provided a “lifeline” for those who have not built up enough stanovogo experience. They can buy insurance experience in the state. One year will cost about 16,8 thousand UAH for two years – 25,3 thousand UAH.
The pension will increase?
Yes, of course. From 1 October the minimum pension for those who have enough seniority now account for 1452 UAH (previously — UAH 1312). A minimum pension for those who have not acquired enough experience will increase from 949 1373 UAH to UAH.
The size of pension payments for each will be calculated individually taking into account the wages and seniority.
The Cabinet promise that the improvements in pensions over and by increasing revenues in the state Budget will try to pavleti on social programs.
© 2017 – 2019, paradox. All rights reserved.
