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 Rada adopts government's pension reform draft in first reading

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The Verkhovna Rada of Ukraine has adopted the pension reform draft bill as proposed by the government.

As reported by Censor.NET parliamentary correspondent, the bill No. 6614 was supported by 282 MPs, with 226 required.

Minister of Social Policy of Ukraine Andrii Reva during the consideration of the bill in the sessions hall promised to take into account all suggestions by MPs before the draft goes on second reading.

"If we do not vote in the first reading and postpone it to September, this means we would not be able to increase pensions on Oct. 1. I promise you to include all suggestions that have been voiced here, in particular on the register on social aid recipients and cancellation of single pension tax (for poisoned chalice) in the bill before the second region," Reva said.

Rada adopts governments pension reform draft in first reading 01

The government's draft pension reform provides for modernizing pensions by recalculating them from Oct. 1, 2017 using a single indicator of the average salary, which is used to designate pensions in 2017 in the amount of 3,764.4 hryvnia ($144).

It is planned to absorb temporary increases, allowances, fixed indexations in the structure of pension payments.

When assigning pensions in 2018, the cost factor of the insurance period will be 1, and the average wage for the last two years will be used, and from 2019 - the average wage for the last three years.

It is also planned to restore payment of pensions to working pensioners in full from Oct. 1, 2017.

Revision of terms of appointment of pension by age from Jan. 1, 2018: citizens aged 60 will be able to retire after having 25 years of pension insurance record.

The minimum insurance record is increased annually by one year, until it reaches 35 years in 2028.

Citizens might retire aged 63 after having 15 years of insurance record as of Jan. 1, 2018 (it will be also increased by one year annually over a decade).

The conditions for indexing pensions and monthly insurance payments are also being revised. In 2019-2020 the indexation will be carried out under a separate decision of the Cabinet.

It is supposed to instruct the Cabinet to prepare a separate bill on modernizing military pensions by Oct. 1 and draft a separate bill on introduction of a professional pension system within six months.



 
 
 
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