On Tuesday, 3 October, Parliament adopted a pension reform, which envisages the modernization of pensions since October, and raising the minimum insurance period for retirement from 15 to 25 years from 1 January 2018.
For the bill in the Parliament voted 288 deputies (with 226 required).
The bill was supported by 122 of the people’s Deputy from the Bloc of Petro Poroshenko , 75 – from the popular front, 23 extra fractional deputies, 22 from group Renaissance, 17 – from the faction of the Radical party, Oleg Lyashko, 15 from the group, the Will of the people, 14 from the samopomich faction. Not a single vote for not given the MPs from the factions of the Opposition bloc and Batkivschyna.
The reform provides for the recalculation of pensions from October 1, 2017 using a single average wage, which is used for a pension in 2017 in the amount, according to the Minister of social policy Andrei Reva, 3 764,4 UAH cost factor year of insurance at 1 (at the moment – 1,35).
The law would increase the maximum amount that is paid a single social contribution (ERU), up to 15 times the minimum wage (currently – 48 thousand UAH). The rate of ERUs will not change.
It is also expected to recover from October 1, 2017 payment of pensions to working pensioners in full.
The minimum insurance period will increase annually by 1 year until you are 35 years of age in 2028.
The law provides for the introduction from 1 January 2019 the cumulative system of compulsory pension insurance.
Annually from 2021 there will be automatic indexation of pensions by raising the average wage which the pension is calculated at 50% of wage growth over the previous 3 years and 50% growth of the consumer price index over the last year.
In addition, it is proposed to eliminate pensions for years of service, leaving grace retirement for some categories of the population.
The maximum pension cannot exceed 10 sizes of the subsistence minimum established for persons incapacitated.
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