Reva predicted the collapse of the pension system

The main problem of the Ukrainian pension system is that it is unfair.

Ukraine is waiting for the collapse of the pension system after a maximum of ten years if the government will not take the necessary measures in order to warn him.

About this on air of one of the channels on Monday said the Minister of social policy Andrei Reva, reports UKRINFORM.

“If not urgently take measures to change this situation in the pension system, we have 5-7, a maximum of 10 years will come the collapse of the pension system with all the possible negative consequences that you can imagine,” said the Minister.

According to Reva, the reason for the catastrophic situation in the pension system is that it is “unfair” because of “egalitarianism” that exists in this area. Also among the problems is the gap in the amount of pensions between “former” and “new” pensioners, “unthinkable,” the minimum pension and only half of private Pension funds to “pay this meager pension”.

Reva said that to solve such a situation need pension reform, which includes raising the retirement pension, the restoration of social justice and the cessation of “egalitarianism”, the establishment of a clear dependency of the size of the pension from earnings, that is payment of the premium and terms of its payment and liquidation of the pension Fund deficit by increasing the number of taxpayers”.

Earlier, Prime Minister of Ukraine Volodymyr Groysman noted that the government’s draft pension reform, which will be presented in the near future, entail an increase in the retirement age. His goal – the building of a just pension system, which will allow to increase payments and reduce the budget deficit of the Pension Fund.

As reported, according to a new Memorandum between Ukraine and IMF, released April 4, the Verkhovna Rada should adopt a law on pension reform before the end of the month, and the reform should enter into force from the beginning of 2018.

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