The Cabinet will present the concept of pension reform: the Verkhovna Rada expects a revision of the payment calculation formula
On June 8, the Cabinet of Ministers is to present the concept of the upcoming pension reform at the Coalition Council. This was reported by a member of parliament.
The Verkhovna Rada expects that the reform will ensure a fair mechanism for calculating pensions and their indexation, as well as eliminate existing imbalances.
Earlier, the Ministry of Social Policy, Family and Unity of Ukraine announced work on pension reform, which involves transitioning from special pensions to professional ones.
According to the Minister of Social Policy, Family and Unity, Denys Ulyutin, a professional pension will allow accumulation formation already after the first year of professional contributions and retain them even if changing the field of activity.
Currently, special pensions operate under strict parameters: one must have 25 years of service. If there are only 24 years, the person will not receive a special pension and automatically loses all service years. In contrast, a professional pension will allow accumulation after just one year of professional contributions.
Thus, this will also help correct the injustice regarding mobilized individuals, noted Ulyutin.
"Separately, the reform will correct the injustice towards mobilized persons. Today, a soldier who has been on the front and served 2–3 years may have no right to a pension for long service because the law requires a minimum of 25 years of service. We propose that even one year of service should form the right to a professional pension. A separate state allowance is also being considered for combatants. If a mobilized person decides to remain on contract after the war, their professional pension will increase with the length of service," said Ulyutin.
The Ministry of Social Policy emphasizes that professional pensions will not be funded from the state budget but through additional accumulations paid by employers.
Regarding citizens who already receive special pensions, they will not lose anything. All assigned payments will be preserved, and for those currently serving, the transition to the new system will be gradual: years of service before the reform launch will be counted under the old rules, after the launch — under the new ones.
It is also noted that if a person has more than half of the required service (over 13 years), they will also retire under the special pension rules.
"Therefore, the transition from special pensions to professional ones will take some time. The transition period may be approximately 12-13 years. This will happen gradually so that people entering the profession can accumulate professional contributions for their pension payments," says the head of the Ministry of Social Policy.
The bill that will launch the pension reform is currently being finalized. The ministry is completing the necessary financial calculations to ensure the system's sustainability for decades. The reform is announced for this year.
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