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 "Pension Fund should be unsubsidized, benefits must grow," - Hroisman

The Cabinet of Ministers of Ukraine intends to make the Pension Fund unsubsidized and significantly improve state's social support system as part of a medium-term development plan until 2020.

As reported by Censor.NET citing UNIAN, Prime Minister Volodymyr Hroisman announced when presenting the draft medium-term plan.

"The Pension Fund should be unsubsidized, and benefits must grow. It is necessary to improve the social support of citizens," the head of government said.

He stressed that the current system and its management are inefficient, because two thirds of pensioners receive the minimum pension at the moment while the Pension Fund deficit makes 150 billion hryvnia ($5.535 billion).

As reported, the presentation of a model of pension reform is one of the signs of the reform program approved by the International Monetary Fund, the country's key creditor.

Read more: Hroisman: 'We need to implement high-quality land reform by 2020"

The government notes several such models are being considered while the implementation of the pension reform will not necessarily mean an increase in the retirement age. The key objective is to reduce the deficit of the Pension Fund.

According to the Ministry of Social Policy, only 8 percent of men and 10 percent of women will be receiving retirement benefits in Ukraine by 2025 while the pension age will differ. Each retiree will choose their pension age depending on the amount of contributions paid to the Pension Fund.
 
 
 
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