In Zhytomyr region the Ministry of social policy on the prospects of introduction of pension reform
Why we need a pension reform? In Ukraine, 11.7 million pensioners, of which 8 million (68 per cent) receive a pension of a minimum amount. That is, in fact, the size of pensions does not depend on the duration of the work experience and earnings that the person has paid the dues. It eliminates the motivation of people to work legally and pay the fees. pensions are payable to more than 20 laws with different "special" pensions (civil servants, researchers, prosecutors, judges, MPs, journalists, teachers, etc.). Certain categories of pensioners are exempt, in particular the right of early retirement. It robs the pension system of the principle of fairness and creates substantial financial pressure on the Pension Fund of Ukraine. The rules for calculating pensions are not transparent and include a variety of odds, bonuses, allowances and irregular indexation. A considerable part of pension payments actually refers to the insurance of pensions, and as such just charge to pensions to the level of a living wage for certain categories of pensioners. Statistics show that 1 pensioner there is only 1 employee who regularly pays contributions to PFC. And it is in no way connected with the demographic situation – because in Ukraine, there are 26 mingaladon age from 18 to 60 years, insurance and pension contributions are paid continuously for only 10,5 million people, and over 1.5 million paid by the state. Therefore only 75% of the employed population, employers and the state pay fees, and 25% of the employed population does not pay ERUs – they work in the shadow economy. The aim of the pension reform The draft law "On amendments to some legislative acts of Ukraine on increasing of pensions" (no. 6614) proposed amendments in 32 legislative acts. The law should come into force from 1 October 2017 – in part, and from 1 January 2018 in full. From 1 October 2017 through the mechanism of modernization will increase the pensions of 9 million people. This also restored the payment of pensions to working pensioners in full. Pension reform involves the introduction of transparent and clear rules for determining the amount of pension payments. So, under the new rules a pension will be affected: • the average wage of the insured person. In the calculation of pension takes into account personal wages of the person for all periods starting from 1 July 2000. • the average salary in Ukraine, which paid the insurance premiums, according to the Pension Fund of Ukraine for the previous 3 years (2014-2016 in the amount of UAH 3764,4 (8.2 million people, the pension is calculated according to an outdated wage rate – 1198 UAH to 2007); • duration of insurance for which the person paid pension contributions. Work experience prior to 2000 is recorded on a level with the insurance; The introduction of mandatory annual indexation of pensions in 2021, which would occur by increasing (recalculation) of the average salary from which the pension is calculated, not less than 50% growth in the average wage over the previous 3 years and not less than 50% increase in the consumer price index for the previous year. In 2019-2020, the indexation of pensions will be carried out by a separate decision of the Cabinet of Ministers of Ukraine. The abolition of special pensions – abolition of special pensions for everyone except military personnel and employees of enterprises with harmful production conditions. In addition, to 01.10.2017 will be prepared a separate draft law on pension modernization of the military and within 6 months from the date of adoption of the law a draft law on the introduction of professional pension system for certain categories of professions that now have preferential pension conditions). Pension reform protects the rights of citizens from vulnerable categories Retain the right to early retirement for mothers who have raised 5 children or children with disabilities since childhood (50 years); military – combatants (55 years); individuals with disorders of some functions of growth (40/45 years); Chernobyl (with a reduction in the retirement age). Set a quota for employers on the employment of persons before retirement age have 10 or less years (at least 1 person in the average number of full-time employees. Provides for the payment of state social assistance (including time for individuals who have reached retirement age, but has not acquired the right to pension payments) and payments to the subsistence level for disabled persons – at the expense of the state budget. Resource for implementation of reforms This was reported in the Zhytomyr regional state administration.Ïåðåâåäåíî ñåðâèñîì "ßíäåêñ.Ïåðåâîä÷èê": translate.yandex.ru.
Source: http://uzinform.com.ua/
