The IMF is preparing proposals for reforming the pension system in Ukraine

The IMF and World Bank experts are preparing proposals for changes in the pension system of Ukraine, which, according to experts of the International Monetary Fund, will contribute to the support of vulnerable segments of the population. This is stated in the IMF memorandum.

The changes are called a "comprehensive conceptual framework for improving pension provision" and include a review of the implementation of the second level of pension provision. The memorandum states that the growth of pension expenses should take place only if the pension fund's resources are balanced, in particular through a medium-term analysis of fiscal sustainability and an analysis of the debt burden.

What restrictions does the IMF propose in the pension system and social benefits? The IMF proposes to prohibit the introduction of new special pensions or the provision of additional benefits to existing pension payments. It is also not recommended to increase benefits through discretionary increases or changes to existing obligations to reduce the retirement age.

The mechanism for supporting vulnerable segments of the population involves improving the targeting and verification of benefits for vulnerable segments. Different social support programs will be combined into a single package of social support based on individual need, regardless of the status of the recipient, be it an internally displaced person or a citizen with another status. However, these changes in social security are still project-based, and the memorandum does not specify the time frame for the implementation of the pension reform and social benefits.

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