When to retire: how changed the reform and what will happen to the Ukrainians

In Ukraine in the next few weeks will vote in the second reading the government’s pension reform. Instead of raising the retirement age, which was previously proposed that the IMF, the Cabinet decided to tighten the requirements for the experience and to introduce a flexible retirement age corridor. The social policy Committee, which prepares the document for the second reading, made a number of edits. So, in insurance experience will be considered military service and maternity leave. However, as before, study in universities and other educational institutions to experience “padded with” will not. Even with the edits, many Ukrainians may face with lack of experience. According to estimates of the Ministry of social policy 35 years of service in 2028 will be only 55% of 60-year-old Ukrainian. The website “Today” found out, when Ukrainians will retire after the reform and who will toughen the rules.

How to count experience

In the insurance experience will consider only the period when the Ukrainians paid contributions to the Pension Fund. However, until 2000, when it is not working the registry, these payments are virtually no controlled, says senior researcher of the Institute of demography and social studies Lydia Tkachenko.

The Committee in the preparation of the reform project for the second reading considered more than two thousand edits. As proposed by the Cabinet, next year for retirement at age 60 will take 25 years of experience, each year this requirement will increase to 12 months. After 10 years in order to “time” to go out on a “deserved rest”, you will need to have at least 35 years of experience. Those who by this time will last 15 to 25 years, will be able to retire at 65 years of age, with 25-35 years of experience in 63.

The social policy Committee made several amendments regarding accounting for seniority. So, people’s deputies propose to consider in the length of maternity leave (up to three years) and military service. It should be noted that for seniority in excess of the pension is based on the raise. So for Ukrainians, that without the decree and the army have enough time, edits parliamentary Committee will allow to increase pensions. Now one year above the norm gives the retiree the right to an additional 1% of their payments. Three maternity year can get a pension at the rate of 3%.

“Higher education is at least four years of study, and if with master’s degree plus a year or two. Further studies, any internships, and generally breaks associated with the change, they are the place to be. It turns out, people physically will not have time 60 years to earn 35 years of experience. “Corridor” retirement age and it is designed. So many were not “first”, but at least the “second” door, and push the actual age of retirement,” explains Lydia Tkachenko.

The expert believes that for students it is necessary to adopt more lenient rules of seniority. To create such conditions for the employer that it was beneficial to formalize a working student.

Note, higher education is not considered as experience since 2004. All who have received higher education before, you can “burn” it to your work experience.

When to retire

Another important innovation, as stated by the Minister sotspolitiki Andrey Reva, what with 40 years seniority you can retire even earlier than 60 years. But this rule will work only in 2028. As a result, the Ukrainian who, for example, began incessantly to work at age 18 can retire at 58. However, it will affect not all. Last time, the length of experience of Ukrainians, who retire, are reduced. This is due to the fact that a “deserved rest,” come the Ukrainians, the peak performance that occurred in the 90-ies.

In this case, as told “Today” in the Institute of demography, 35 years of experience in high-demand considered impossible: “In many countries put a maximum of 40 and even more years of experience. And if less, the pension is already reduced. And it may not just affect the size of pension, but even on the size of the state/of the basic pension paid by the state regardless of seniority. For example, in Denmark, Norway, Sweden, Finland, Iceland, Canada, Australia, New Zealand if you have lived 40 years in the country – you are given that this sum, if spent less, this amount is proportionately reduced.”

Recall that the full requirements for experience earn only in 2021. Up to this point, those who fail to earn the required number of years of service, are eligible for financial aid until such time as they reach 63 or 65 years.

But those who have will not even 15 years seniority, as now, on a pension does not qualify. Such estimates of the Pension Fund of about 100 thousand people. Instead of a pension they are entitled to social assistance, the amount of which depends on the total family income.

At the same time, pension, superannuation employees of the health, welfare and medicine overturned. Until 2015, the teacher could go out on a “deserved rest” after 25 years. After 2015 the rate was increased to 30 years. And now – even offer to cancel. But if the right to retirement has already begun, then take advantage of them it will be possible later. For example, if a 55-year-old teacher already has 30 years of experience, but continues to work, to retire before the age of 60 he will be able after the adoption of the reform.