In Ukraine, modernization of pensions will be conducted until 2021.
The process of modernization of pensions will be completed by 2021.
This was stated by Minister of social policy of Ukraine Andriy Reva.
“We can’t in one step to overcome the 11 dimensions of the average wage on which pensions were calculated. The first step will involve 5.6 million pensioners – those who pensions were paid from 2008 to 2014 To 2019 pensions will modernize the one who went on a holiday in 2015 – 2016 the level of 2018 And so on…”, said the Minister.
Besides, already in 2021, according to Reva, will begin its normal process of indexing (increase of pensions, respectively the increase of inflation and growth of average wage), in order to avoid return to the gap between the size of payments to new pensioners and those who will retire a year early. Today, such gaps in pensions reach three or more times.
As regards indexation, the draft law on pension reform provides that, in 2021, the indexing will be done automatically in the amount of not less than 50% of the level of inflation and not less than 50% of the average wage.
“For five months of the current year, the wage Fund in Ukraine grew by 37%, that is, was the increase in average wages, noted Reva. – Last year we had planned that the current average wage will be 6.3 thousand UAH, however, in April, it was 6.7 thousand UAH. The government has revised projections for 2017 and calculated that at the end of the year, the average salary will reach UAH 7104”.
Reva also noted that the draft law on pension reform, which was already supported by the Verkhovna Rada in the first reading, waiting for the final stage in September. “It has to happen in the first half of September to the 1 October to launch the process of modernization of pensions”, – concluded the Reva.
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