The Cabinet of Ministers wants to introduce changes in the pension system

In Ukraine, a significant reform of the pension system is planned, which may radically change the way pensions are calculated. The government has developed a project of law No. 9212, which provides for the introduction of accumulative pension provision. This project has already been returned to the Verkhovna Rada for finalization, and after making the recommended amendments by the government, it can be resubmitted to the parliament in September of this year.

Minister of Social Policy of Ukraine, Oksana Zholnovych, spoke about the comprehensive approach to the development of this draft law. She noted that the new system must include several components, as a single element will not be able to function effectively. In particular, the pension system of Ukraine provides for:

  • Compulsory storage system.
  • Voluntary savings system.
  • Solidarity pension system.

The minister also reported that Ukraine plans to introduce a professional savings system. The new pension system will take into account two main criteria: the number of years a person has worked and the number of contributions he has paid every month. These indicators will be converted into a certain number of points, where each point will be equal to 30% of the average salary for a specific year.

According to the new rules, if a person has worked for 35 years and received an average monthly salary, he can count on a pension of at least 30% of his salary in the solidarity pension system.

In addition, Zholnovich emphasized the importance of guaranteeing the minimum pension level. If a person has worked for at least 15 years and has become a member of the pension system, he is entitled to 30% of the minimum wage in the relevant year. In general, this will provide replacement at the level of 40% of earnings only in the solidarity pension system, which is significantly higher than the contribution amount of 18%.

The introduction of professional savings is planned from 2026. The minister noted that a corresponding draft law has been prepared, which provides for a reduction of the tax burden on employers. This will allow workers to accumulate another 20% of their earnings during their lifetime, which will add up to 60% of their pension.

Zholnovych expressed hope that the new pension systems will start working from 2026, but for this, significant work needs to be done, including the implementation of IT solutions to automate processes. The government is counting on the support of the parliament to implement these plans in early 2025.

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