The Verkhovna Rada, Ukraine’s parliament, has approved the pension reform after today’s consideration of the draft law in the second reading. 288 MPs supported the bill on Tuesday’s session.
The minimal pension’s size was increased; now, it makes 1,452 Ukrainian hryvnas (approximately USD 53).
Currently, people are required to have worked at least 15 years before retiring and claiming the right to receive pension. What kind of changes will take place when the law takes effect?
- To retire in 60, one is required to have worked for 25 years (in 2018), with the pensionable service increasing by 12 months year-on-year basis. That is, in 2019, the pensionable service in 2019 will equal 26 years, in 2020 – 27, and so on – up to 35 years in year 2028.
- To retire in 63, one is required to have worked for 15-25 years (2018), with the pensionable service increasing by 12 months year-on-year basis.
- To retire in 65, at least 15 years of service are required in 2019, with the upper limit increasing year by year – up to 15-24 years of service in 2028.
An individual can ‘buy’ up to 2 years of pensionable service, which means paying depositions to the state pension fund as if he/she was working all this time. One year will cost twice more than fees from the minimal wage, and two years will cost 1.5 times more than that.
Since January 1, 2028, pensions will be awarded regardless of the current age, on the condition that the overall pensionable service made 40 years or more.