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 Society, Ukrainian Politics, Economics
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 Social Policy Ministry expects 141.5 billion hryvnia Pension Fund gap in 2017

The final version of pension reform has not yet been developed. The Ministry of Social Policy of Ukraine is considering various options and principles of reform. It will be possible to talk about the final version only after it is publicly discussed, considered by the Cabinet of Ministers, and submitted to the Verkhovna Rada of Ukraine.

Censor.NET reports citing the press service of the Social Policy Ministry.

Minister of Social Policy Andrii Reva believes the pension reform should start with pensions. According to him, such pension reform is designed to reestablish justice as for pension coverage. This means that those who have been working all their lives making pension contributions cannot be in the same situation with those who worked less and made smaller contributions. Besides, the pension system desperately needs incentives for everyone to understand the need to fairly pay unified social tax and, therefore, expect to receive a decent pension in the future.

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

The Pension Fund shortfall will amount to 141.5 billion hryvnia (about $4.88 billion) in 2017.

"Yes, it is less than last year, when it was 145 billion hryvnia (about $5 billion), but it's more than the country's security and defense budget, which amounts to 129 billion hryvnia this year. On the one hand, such a huge Pension Fund shortfall makes it impossible to increase pensions. On the other hand, it imperils Ukraine's national security. Therefore, implementation of a fair pension reform is the current government's high-priority task. I want to stress in this context that we are implementing the reform not for the IMF, not for the external creditors - Ukraine needs it above all others," Reva said

Read more: Pension should be earned, not aged to, - Social Policy Minister Reva

According to the Social Policy Minister, this reform will benefit both the state and the people.

 
 
 
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