The future of pension reform could be the introduction of three-level system with a storage level and private insurance.
The foundations for future pension reform in Ukraine should be discussed widely in society, and one of these basics can be the introduction of three-tier pension system, involving the introduction of the funded pillar non-state insurance. As reported in a press-service of the government, this was stated by Vice Prime Minister of Ukraine Pavlo Rozenko during a meeting with regional mission Director Susan Fritz.
“We need to move away from discussions that do not have long-term effect, about whether to raise or not to raise the retirement age or length of pensionable service, to change or not to change the formula for calculating pensions, need to work on the strategic vision of the development of the pension system. What it will be not only tomorrow, but at least in 3-5 years, – quotes Rozenko press service. – I believe that in General the ideology of development a three-tier pension system, providing for the introduction of the funded pillar and the development of private pension insurance, can be a wonderful basis for further pension reform in Ukraine”.
Rozenko reminded that over the past two years the government managed to restore some order in the Pension Fund and twice to conduct his audit. “In the last two years has undergone extensive work to restore order in the Pension Fund of Ukraine. We do not pay “dead souls”, we have no double or triple payments, there is no corruption in pension provision. Also, the Pension Fund significantly reduced adminrashody and optimized state. Now we are working on improving the quality of services to citizens. In particular, from 1 January 2017 people already have the ability to draw a pension without reference to the place of residence”, – said Rozenko.
He also drew attention that the government has already submitted to Parliament a draft law on the principles of a funded system and private pension insurance, as well as about improvements in the existing solidarity system. According to Rozenko, the weakest point in the solidarity system at the moment is the lack of receipt of funds in the budget of the Pension Fund due to the significant size of the shadow economy.
As reported, carrying out in Ukraine the pension reform is one of the key reforms announced major creditor countries, the International monetary Fund. The task of reform is to reduce the budget deficit of the Pension Fund, which currently exceeds $ 150 billion UAH and will be covered mostly through grants from the state budget. According to government estimates, the deficit of the PF is possible due to the legalization of salaries and increase of level of payment discipline, particularly discipline of payment of the single social contribution as a key payment to the Pension Fund. Currently 16 million working citizens of Ukraine ERUs do not pay more than $ 10 million.
Earlier, Deputy Prime Minister Rozenko stressed that Ukraine is not assumed fixed commitments to raise the retirement age in the pension reform, the government will not make any steps in this direction.
In turn, Prime Minister Vladimir Groisman noted that the key task of the pension reform to be undertaken in Ukraine, increase pensions and reduce Pension Fund deficits.
