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 Social policy minister: retired military to have their pensions reviewed retroactively in three stages from Jan. 1, 2018

Recalculation of military pensions will be carried out retroactively from January 1, 2018. Revaluation will be implemented in three stages after adoption of the law on the pension coverage of the retired military personnel.

Minister of Social Policy Andrii Reva said in an interview with Censor.NET.

"A formula-based [pensions] recalculation is an innovation for the military. But our assessments show that pension payments calculated under the new law for those who are going to retire will be higher than the payments calculated under the old scheme. Those who took part in combat operations in the anti-terrorist operation (ATO) zone will have the most substantial increase in pension payments. As for the review of pensions of the already retired military personnel, it will be carried out in three stages: at the first stage, the recalculation will be made according to their pension records based on Ukraine’s average salary of 3,264.40 hryvnia. Each military will be able to get an extract on any period of one’s pension coverage and submit it to the Pension Fund. The Pension Fund will pick two years with the highest rates and carry out additional recalculation, again from Jan. 1. And finally, we’ll carry out the third revaluation from Dec. 1 already based on the new average salary in Ukraine amounting to 5,266 hryvnia," he said.

The ministry estimated that the pension should rise by an average of 2,300 hryvnia.

"The general pension formula that we adhere to is the following: 3,264.40 hryvnia is multiplied by the personal pensionable service rate. In 2018 we will take 5,266 hryvnia as a basis, 5,800 hryvnia - in 2019, and 6,300 hryvnia - in 2020. That is, this indicator will increase proportionally to the average salary while a person's pension will even increase depending on the year of retirement.

“We currently have 544,000 military pensioners. There aren't that many of them compared to the total number of pensioners standing at 11,700,000. 60 billion hryvnia annually is required to increase pension payments to all the pensioners (which we have already done). Raising military pensions require 10 billion hryvnia in 2018 and 17 billion hryvnia in 2010. That is, we actually allocate greater funds for the military than for civilians. If civilians had their pensions increased by about 30 percent, we are going to increase payments for the military pensioners (those who have already retired) by 77 percent," he said.

The minister referred to a specific example of increase in pensions payments for the military personnel: "Here is a specific example: there are two majors with the same service record. One of them retired in 2012, while the other in 2016 after receiving combat experience. The first one receives 1,747 hryvnia and the second one – 3,930 hryvnia (since he has got a combat record). Following recalculation, the first one will have 3,275 hryvnia, while the second one will get more than 5,000."

Источник: https://en.censor.net.ua/n3045983
 
 
 
 
 
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