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Pension modernization in Ukraine to last till 2021, - Ministry
20:11, 17 July 2017
Pension modernization in Ukraine to last till 2021, - Ministry

The first stage will concern more than 5 million pensioners

20:11, 17 July 2017

Open source

Modernization of pensions in Ukraine will last for another four years, until 2021. This was stated by the Minister of Social Policy of Ukraine Andriy Reva, according to the press service of the ministry.

 “We cannot in one step overcome 11 average wages on the basis of which pensions were calculated. The first step will concern 5,6 million pensioners - those who had pensions from 2008 to 2014. In 2019, pensions will be modernized for those who went on a well-earned rest in 2015 and 2016 according to the level of 2018. And so on,” Reva said.

According to the minister, since 2021 the normal process of indexing will begin, which will allow avoiding the gap between the payments to new pensioners and those who will retire a year earlier.

Today such gaps make up the difference in the amount of pensions by three or more times.

Related: Pension reform fail to have consequences for Ukraine-Bank cooperation, - World Bank Director

Concerning indexation, pension reform stipulates that from 2021 the indexing will be carried out automatically by the size of not less than 50% of the inflation rate and, less than 50% of the average wage level.

As it was reported earlier G7 Ambassadors urged Ukrainian Parliament to adopt a pension reform next week. The G7 Ambassadors are sure that the government-suggested pension reform plan will “restore a proper social contract between the State and its citizens”.

Related: Ukraine's slow road to state pension reform

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