Pension revolution: reform is already in Parliament, what is its essence

Pension reform came to the finish line. The Cabinet passed in Parliament four bills amending a number of pension laws. Preserved all previously announced the government’s proposals to increase work experience for future pensioners, the abolition of the 15% underpayment to the pensions of working pensioners, the pension modernization and others. But in General, experts postrecovery called proposals of the Cabinet “cosmetic”.

THAT WILL CHANGE. The full text of the reform last week published the news Agency “Ukrainian news”. According to the document, the insurance period will gradually increase to 20 years the ratio of years of work in the calculation of the pension will decrease from 1.35 to 1 (the digit affects the amount of payment, and, if it is lower, and lower pension) and the introduction of personal savings accounts and disappeared.

Innovations can be divided into two groups for current and future retirees. For the present — two of them: from 1 October 2017 at the working pensioners will cease to hold 15% of their pensions, and anyone who receives a pension, it will recalculate based on new average salary, which is three times higher than previously in the calculation experts Pensfond, but less than one third will be “worth” the year of postage — its coefficient in the formula of calculation of pension is reduced from 1.35 a year of work and 1. So in the end, the pension three times, unfortunately, will not grow.

Future retirees will have to work more to have a decent pension. From 1 January 2018 for 10 years (from 15 to 25 years) increases the minimum insurance (labour) experience granting the right to claim a pension upon reaching 60 years of age, she may be even less than the minimum.

And to qualify for the minimum pension and higher can men with stratagem at least 35 years and women with experience of at least 30 years. For those who have less to get as earned, even if it is below prozhminimuma for the disabled (now UAH 1249). We will remind, today, men can retire at 60, women at 57.5, with 15 years of experience.

Those who worked hard and paid contributions in Pensfond promise for each year in excess of the minimum 35 years to pay, but not above 1% of the minimum pension (currently UAH of 12.49 per year).

From January 1, 2019 experience increasing annually by 1 year, and by 2028 will be for 35 years. Women and men without 25 years of service will continue to work or wait until they turn 63 years old. 2018 such people the right to a pension will provide an experience of 15-25 years (the more experience, the higher pension), in 2019 will need experience 16-26 years, and so forth, from 2028 to claim a pension can 63-year-old with experience of 25 to 35 years.

Those who have and for 63 years has accumulated 15 years of experience, must wait another two years. From January 1, 2019 have the right to retire 65-year-old people with stratagem at least 15 years, from January 1, 2020, with stratagem at least 16 years of age and so on, with January 1, 2028 strahler must be at least 25 years. Those who have not, the government will pay support at 65 years, it is calculated as a percentage of mentorplace. Today, such assistance is equal to 949 UAH.

GLAD NOT GLAD. Parliamentarians say that quickly changes make will fail. We surveyed MPs think that the government should introduce a funded pension reform and not “patch” the existing joint system. It is expected that the bill will be submitted a lot of revisions, and only after consideration we can say that the majority will vote for a government document or returns it for revision.

EXPERTS: EXPECT MORE. Experts say that the draft document is not reform. “The government just redistributed the document collected in Pensfond single sotsvznosa between current and future retirees, says an expert on the pension system “Reanimation package of reforms” Galina Tretyakov. — Due to changes in the formula for calculating pensions for future retirees will receive less and retire later. Contributory pensions are not even mentioned”.

Former Deputy head of the Pensfond, and now independent expert Viktor Kolbun supports the Cabinet that the government did not agree with the recommendations of the Council to delay the increase of insurance and the reduced “cost” year: “These standards as the funded system, it is necessary to take, as the deficit Pensfond is constantly increasing”.