The minimum pension in Ukraine is the lowest in Europe – only 1247 UAH ($45). For example, the Belarusians on retirement receive no less than $ 145. According to the Pension Fund, not all Ukrainians live in poverty in retirement. So, thousands of Ukrainians receive more than 20 thousand hryvnias for pension. The website “Today” figured out why the Ukrainians receive various pensions and who were more fortunate of all.
“Special” pensions
More than half of Ukrainian pensioners receive less than minimum wage – 1,500 hryvnia. However, not all Ukrainians in retirement accounts to make ends meet. 19 thousand pensioners receive more than 10 thousand, 2.2 thousand people – more than 20 thousand hryvnias. Mostly retired judges, said senior researcher of the Institute of demography and social studies Lydia Tkachenko.
Judges, like other officials, on retirement are entitled to 80% of their earnings. At the same time, the average pension in the country is only 33% of the average wage. “The pension of government employees appointed at 80 per cent of the sum of their salaries, which are charged premiums for obligatory state pension insurance”, – says in article 37 of the law.
Since January of this year, as he wrote on his page in the social networks of ex-Finance Minister, MP Viktor Pynzenyk, the salaries of the judges can reach 315 thousand, respectively, and the pension will be ten times higher than the average. “In Poland the payment of the judges of the Supreme court is three times less – 105-120 thousand hryvnias. In the Czech Republic, Latvia, Lithuania it is even less,” says Pynzenyk.
Photo: archive
By the way, for ordinary Ukrainians, there is a limit of the pension is higher than 10.7 thousand hryvnia is not assigned. However, for the military, some civil servants, including judges, this limitation is removed by the decision of the constitutional court.
“People are irritated by this inequality. When the bulk gets 1.5 thousand, and the judge gets 21 thousand. What the judge retired in our poor country… then Let all 21 thousand to pay. Somehow it does not work. Whatever measure of responsibility for their work, they’re retired, they do not work. This responsibility is already there – why should I pay 20 thousand?”, – Lydia Tkachenko.
“People are irritated by this inequality. When the bulk gets 1.5 thousand, and the judge gets 21 thousand. What the judge retired in our poor country… then Let all 21 thousand to pay. Somehow it does not work. Whatever measure of responsibility for their work, they’re retired, they do not work. This responsibility is already there – why should I pay 20 thousand?”, – Lydia Tkachenko.
The older the pensioner, the lower the pension
In 2008, the ratio of length (a measure that is taken into consideration at calculation of pensions) increased from 1 to 1.35, the old pensions are not counted, and new ones were appointed based on the updated indicator. In the result, those who retired early, were in a less advantageous position.
Pension in Ukraine is calculated by the formula:
P = SN * KS
P – pension
SN – salary (average salary over the three years prior to retirement multiplied by the ratio of wages and insurance experience).
COP – coefficient of experience (depends on experience)
Wage coefficient – the ratio between average pay in the country and that which at that time had been retired. This factor directly determines the amount of pension. So, if, for example, the salary for the selected period in two times higher than the national average, the ratio is equal to 2, if 35% of 1.35.
Until 2012, the pension increased by 20% from the growth of the average wage in the country – for several years this rule of law does not apply. As a result, according to the Ministry of social policy, more than 7 million Ukrainians have calculated the basic amount of the pension is less than subsistence minimum. As explained by the expert organization “Actuarial-pension consultant” Alexander Tkach, officials decided that for the “actualization” of pensions will be sufficient to index the whole amount of the pension to the inflation rate (previously indexed only the part that is within the limits of the subsistence minimum).
“Since 2012, the modernization of pensions stopped. This means that those who retired before 2012, the year actual payments frozen. And people with considerable experience and a good income at the time, now do not get recalculated pensions”, – commented Andriy Reva.
The majority receives less than 1500 UAH
In Ukraine the minimum pension 1247 hryvnia lives of almost 400 thousand pensioners. By the way, as reported “Today” in the Pension Fund, the vast majority of Ukrainians are retired receive pensions below the subsistence minimum. Of the 11.9 million pensioners, 6.1 million receives less than 1500 UAH per month.
The average pension in the country – more than 1800 hryvnias. The highest pensions in Kiev more than 2400 UAH, and the lowest in Ternopil region (1560 USD). The size of pensions depends directly on the wage levels in the region. Most residents earn capital, and the poorest Ukrainians live in the Ternopil region. By the way, according to PF, most Ukrainians “retirement” living in the Dnipropetrovsk region – more than a million people.
Photo: archive
In 2017 in addition to the indexation of pensions 10.1% provided for in the draft budget, the Ukrainians are “modernizing”. Pension plan to increase by an average of 300 hryvnia five million Ukrainians, says the Vice-Prime Minister Pavlo Rozenko.”Details can not tell, because the decision is still pending. But what is the pension modernization? This is, in fact, a solution to the underlying problem, when the newly appointed pension much higher pensions of older pensioners. Modernity involves bring the “old pension” to the new. How this will be done immediately or in stages – this issue is still under discussion,” – said the Deputy Chairman of the Pension Fund Mykola Shambir.
However, as the official said, to modernize the pension will by changing the average wage, which is taken into account when calculating pensions. “If we are talking about the fact that in the year we have assigned approximately 450-500 new pensions, of course, all those who were appointed before 2016, are inconsistent with the newly appointed pensions. If we have 12 million pensioners, you can calculate how much we need to modernize. It is clear that each pensioner individually. It is clear that if the updating will be done, will be done for each pensioner, depending on wages and seniority. It is clear that the modernizing not everyone will get a raise, because sometimes due to different bonuses pension is bigger than when modernizing. This also is”, – says Deputy Chairman of the Pension Fund.
