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 Pension system to disintegrate in decade at most unless steps taken, - Minister Reva

Ukraine is faced with the collapse of its pension system unless necessary measures are taken to deal with the situation.

As reported by Censor.NET citing Ukrinform, this was announced by Minister of Social Policy Andrii Reva.

"If we don't take urgent measures to change this situation in the pension system, in 5, 7, 10 years at most it will collapse with all possible negative consequences that you can imagine," he said.

According to the minister, the unfairness of equalization underlies the catastrophic situation in the pension system. Other problems include a gap in the amount of benefits of "former" and "new" pensioners, the "unthinkable" size of the minimal pension and the availability of only half of Pension Fund's own money to "pay off this meager pension."

Reva said, a pension reform is necessary in order to deal with the situation, which would provide for raising pensions, restoring social justice, stopping "equalization" and establishing clear dependency of a pension size on the amount of all earnings, eliminating the Pension Fund deficit through increased number of tax payers.

Read more: PM Hroisman names land, pension, education reforms, state property privatization as government priorities

According to a new memorandum between Ukraine and the International Monetary Fund, released on April 4, the Verkhovna Rada must adopt a law on pension reform before the end of this month, while the reform itself should enter into force as soon as early 2018.
 
 
 
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