# By what formula will consider pensions to Ukrainians after the reform

In Ukraine in October, promised to recalculate the pensions of all Ukrainians. As a result, almost six million Ukrainians payments will rise from 50 to 1000 hryvnia. In the formula for calculating pensions will reduce the assessment ratio of insurance and to pensioners from next year will increase the minimum seniority required for retirement, up to 25 years.

How is the pension:

P = SN * KZ * KS

P – pension
SN – salary (average salary over the three years prior to retirement)
KZ – coefficient of wages (the ratio of his salary to the national average)
COP – coefficient of insurance (each year is multiplied by 1.35)

According to the Ministry of social policy, the pension calculated taking into account the average salary 1917,91 hryvnia. For example, the pension for the Ukrainian, who has worked for 35 years and received an average salary, can be calculated as: 1917,91 * 1 * 0,47 = 901,4 hryvnia. Given that the pension age in Ukraine can not be lower than 1247 hryvnia, the hryvnia 345,6 pay from the Pension Fund.

Last year the Minister of social policy Andrei Reva announced the coming of “modernity” of pensions based on the new average wage. As the source told “Today” in the working group of the Ministry for the preparation of the “modernization”, the pension will increase based on the average salary 3764 UAH. The coefficient of insurance will be reduced from 1.35 to 1.
After “modernizing” the same pension will be recalculated according to the formula: P = 3764 * 1* 0,35 = 1317 UAH. However, if wages, for example, was twice the national average, is now retired (with 35 years of experience) gets 1800 hryvnia, and after the “modernization” will be to 2634 hryvnia.

The Ministry of social policy plans to increase pensions for 5,6 million Ukrainians (in Ukraine 11.9 million pensioners). Some pensioners after “modernizing” will receive two times more. So, more than 1,000 hryvnia rich 1.1 million pensioners. Increase from 900 to 1000 hryvnia unable to 487 thousand pensioners, from 700 to 800 UAH 460 thousand. The rest (and more than 3.5 million Ukrainians) the pension will rise from 50 to 700 hryvnia.