The tax on pensions canceled for 500 thousand Ukrainians

The abolition of tax on pensions for working pensioners, scheduled to be held in the framework of the pension reform, will affect half a million Ukrainian citizens. This was stated by the Deputy Chairman of the Board of the Pension Fund (PF) Vladislav Mashkin, reports “UKRINFORM”.

“The abolition will affect about half a million people, that is people who are retired and work at the same time, they shall be paid pension at 85% from the designated size, but not less than half the size of the subsistence minimum”, – he said.

Mashkin is also stressed that the possible repeal of the relevant provisions of the legislation directly to the budget of the Pension Fund “will not critically affect”.

As reported, the Cabinet of Ministers of Ukraine on may 17 approved a bill on pension reform and submitted it for consideration of the national Council of reforms under the President of Ukraine.

The reform raises the retirement age, but introduces requirements insurance experience: for retirement at age 60 will need to have 25 years of experience. If you experience 15 – 25 years of retirement will be to go in 63 years, less than 15 years – 65 years. People who have no insurance experience, can apply for social assistance upon reaching the age of 63. The amount of assistance will be determined on the basis of the family income of the pensioner.

All of the minimum insurance period will increase by 1 year every 12 months until 2028. Thus, from 2028 to retire at 60 will need to have 35 years of insurance experience.

The reform also cancels the appointment of civil servants pension for years of service and enters a single formula for calculating pensions, which binds it to the volume of contributions to the Pension Fund for life.

In the framework of the pension reform is also planned from October 1 this year to increase pensions, and to abolish the taxation of pensions to working pensioners.