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Pension reform: increase of pensions will be transferred to the auto mode

Пенсионная реформа: повышение пенсий переведут в автоматический режим“From now on pensions will grow constantly, and not less than the amount of 50% of the average wage and 50% of the rate of inflation.”

According to the draft pension reform, proposed by the Prime Minister of Ukraine Volodymyr Groysman, from October 1, 2017 must be radically changed the mechanism of indexation of pensions — now payments will automatically be recalculated upwards.

This was stated by Deputy Minister of social policy Mykola Shambir, the press service of the Ministry.

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“In case of acceptance by Parliament of the pension reform already in the month of October will be a modernization of pensions, i.e. to increase their size in accordance with the existing economic indicators. In the future, will be launched ongoing indexation of pensions”, — he assured.

According to officials, this step will allow the process of increase of pensions in automatic mode, will make impossible a repetition of the situation where those who retired later, will have better conditions than those who have retired early.

Shambir explained that before the legislation was a mechanism of indexation of pensions, but subject to the availability of funds, which allowed not to.

“From now on pensions will grow constantly, and not less than the amount of 50% of the average wage and 50% of the rate of inflation. I emphasize — at least in this index, and if additional funds become available, even more”, — concluded the Deputy Minister.

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