Minister of Social Policy Pavlo Rozenko said during a meeting of Ukraine's Pension Fund Board, Censor.NET reports citing the ministry's press service.
"Solidarity pension system is unable to secure decent level of pension benefits. In the future, this tendency will not get better. There is no alternative to introducing the second level of pension benefits, as there is no alternative to preserving the insurance principle," the minister said.
According to Rozenko, the elimination of the insurance principle as well as the liquidation of the Pension Fund are inadmissible, while retaining unfunded pensions will lead to a "complete leveling of pension benefits."
According to the minister, with recent amendments to tax legislation and the reduction of unified social tax, Pension Fund's receipts will shrink in 2016. "But we will not allow the bankruptcy of the Pension Fund or delays in pension payments," he stressed.