International Monetary Fund (IMF) did not endorse the draft pension reform, offered by the Cabinet of Ministers. This was reported by the source in the government, commenting on the results of IMF mission work in Kyiv, according to Ukrainian News.
Particularly, IMF disputed government’s initiative to bring pension payments up to date constantly and exemption for working retirees.
"These two initiatives are not supported by the IMF," source said.
Beyond that, IMF opposes government’s plans to decrease coefficient estimating the cost of employment term within the formula of pension payment from 1.35 to 1. The actual abolition of this coefficient may lead to significant reduction of pension — by 30-40%.
It is noteworthy that the fund’s statement on the results of work says that drafting process should be continued, including pension reform.