Rada voted for the pension reform

The Verkhovna Rada of Ukraine adopted in the first reading and the basis for government bill No. 6614, which gives the start of the pension reform. “For” vote of 282 deputies of the minimum required for decision-making 226 people’s deputies.

The head of the Committee on social policy, employment and pension provision, an MP from the faction “people’s front” Lyudmila Denisova during the presentation of the document reported that the Committee recommends the Parliament to adopt a package of government bills on pension reform at first reading. “The bill of the Cabinet – this is not pension reform, but very important, step to it,” said Denisov.

According to her, the pension reform in Ukraine is necessary, as the average pension in the country is 1 879 UAH, which is less than minimum wage, and the Pension Fund deficit has already increased to 140 billion. In addition, in the opinion of the Committee, it’s time to repeal the tax for working pensioners.

Prime Minister of Ukraine Volodymyr Hroisman thanked the MPs for consideration of pension reform and assured that he is ready to take responsibility for the adoption of pension reform.

“The time has come when we must make decisions in the interests of Ukrainian pensioners, solutions that protect working people. I am convinced that we all are elected to ensure that we were not ashamed to look people in the eye. This is the solution that will enable us, starting from 1 October 2017 to do what no one before us ever did, to change the pension system in the interests of Ukrainian pensioners, to destroy the Pension Fund deficit, which runs today against raising pensions. We have done everything to leave the retirement age at 60 years, and women less. We are all made to start the process of increase of pensions in our country”, – said Groisman during the discussion of the bill.

According to him, the purpose of reform is to do everything possible to increase pensions and the system of indexation of pensions for every pensioner in Ukraine. “To make this system and the annual” – added the Prime Minister.

At the same time, among the comments of deputies to the bill was voiced the lack of regulations in the bill providing for the introduction of a funded pension system and the establishment of a register of social benefits. Deputies also noted that the paper indirectly raises the retirement age. Thus, according to the calculations of the Radical party, 6 million Ukrainian pensioners will receive no increase in pensions as the result of modernization.

The Minister of social policy Andrei Reva said that all the proposals of MPs will be reflected in the preparation of the bill a second reading. “This is our common law,” said Reva.

That the government will consider proposals of all parliamentary factions, assured and Prime Minister.

As you know, the government’s draft pension reform does not directly increase 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 planned from 1 October this year to increase pensions, and to abolish the taxation of pensions to working pensioners.

As reported, the Verkhovna Rada also introduced in the agenda of the five alternative government billsconcerning pension reform.