The government has proposed the IMF’s own version of pension reform

The Cabinet of Ministers of Ukraine rejected the proposal of the International monetary Fund and offered his own version of pension reform.

The Cabinet of Ministers is prescribed in the draft of the Memorandum of Ukraine and the International monetary Fund his version of pension reform.

In particular, the IMF demanded to be taken before the end of March 2017 pension reform, which includes increasing the age of retirement for men for 4 months each year, beginning July 1, 2017, and for women in the future to raise the age by six months every year after until 2021 until men and women reach retirement age at 63 years (2027 – ed.).

The IMF wants to cancel in Ukraine, the payment of utility bills in installments
Also, at the suggestion of the IMF, the pension reform should provide for further narrowing of the possibilities of early retirement, in particular by transferring workers in the sector of education and health to the General regime retirement July 1, 2017.

The Cabinet of Ministers rejected the proposal of the Foundation and offered his own version of pension reform.

In the draft Memorandum notes that the Verkhovna Rada will take until the end of April 2017 comprehensive pension reform, which will enter into force on 1 January 2018.

“The reform will involve a new set of options for retirement with more than the existing range of retirement age, which involves considerable choice, depending on the General seniority, and retirement benefits, which encourage people to continue working and later retirement,” reads the government’s proposals.

Also the new reform provides for cost savings in the amount of not less than 3% of GDP in the long term (compared to the level of expenditure in 2016), including by increasing the effective seniority for retirement.

In addition, it must ensure that citizens of Ukraine will receive pensions that are relative to that paid their contributions and adequate in real terms.

“This common system will be applied to all types of employment, with the exception of a limited list of hazardous occupations”, – the document says.

It is worth noting that these items still remain inconsistent.

On Monday the managing Director of the IMF Christine Lagarde said that the Fund talks with Ukraine on allocation of next tranche to go well and a number of key issues have been resolved.

“Our team still has to clarify a few points with the Ukrainian authorities”, – she said, but declined to go into details.

Earlier, the head of the NBU Valery Gontareva predicted the receipt of the next tranche from the International monetary Fund in late February or early March.

In September 2016, the IMF approved the granting Ukraine of the 3rd transam $ 1 billion dollars.Go to the Main page

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