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Ukrainians told what to expect from the pension reform

 Украинцам рассказали, чего ждать от пенсионной реформыThe Cabinet has found a way to get rid of the excessive number of pensioners.

Between Ukraine and the IMF actively there are discussions on the pension reform, the option offered by the Prime Minister Volodymyr Groysman. Information on the proposals of the Cabinet is extremely small, the work goes on in secrecy. The main conclusion that can be drawn on publicly available information — refusal of the introduction of a cumulative model in favor of “cosmetic repairs” solidarity system. This writes analyst Anton avksentiev.

The author concludes that de facto Ukraine refuses intentions to bring the Pension Fund to self-sufficiency in the near future. Meanwhile, he has become a “black hole” for the budget – this year on subventions allocated 141 billion UAH. Subsidies only grow.

“Secondly, the logic of the reform is to reduce the number of Ukrainians eligible to receive a pension. How correct (from the standpoint of law and ethics) to change the rules after the fact? This question can ask the current generation of 50-year-old or citizens had under the current law the right to early retirement, not waiting 60 years of age,” writes the author.

Having worked all his life by the same rules, to retire at others they are less favorable. The only exceptions are military personnel.

In addition to the abolition of the right of early retirement, Groisman decided to reduce the number of pensioners in two ways. The first and major – increase required for the minimum pension insurance period from 15 to 25 years. The second way – increase the retirement age: those who have insurance record of more than 15, but less than the required 25 years can retire at 63 years, who experience less than 15 years – 65 years.

Recall that the International monetary Fund approved a draft pension reform, which was proposed by the government of Ukraine. This was reported by a source in the Cabinet of Ministers, who commented on the results of the work of the IMF mission in Kiev. It is noted that the IMF has stated claims to the government’s initiative of modernizing pensions on an ongoing basis and the abolition of taxation of pensions for working pensioners.

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