In Zhytomyr region Prime Minister presented the government's draft pension reform
Prime Minister of Ukraine Volodymyr Groysman at a Government meeting on may 17 presented the main provisions of the draft Law of Ukraine "On amendments to some laws of Ukraine regarding the improvement of pensions" that the Government offers in the framework of the pension system, which should start operating after the adoption by the Ukrainian Parliament on 1 October 2017. During the presentation the Head of Government noted that the task of the Cabinet of Ministers has been and remains the development of the national economy and the opportunity to give Ukrainian citizens that "rightfully theirs". That is why since the beginning of the year in Ukraine increased the minimum wage, and now discussed the decision to increase pensions. "During the year we doubled the minimum wage, we will raise pensions for Ukrainian pensioners. Let's move on to accumulate funds in order to give more people. The pension should not be a charity - it should be enough payment for what the person is adequately worked. The restoration of social justice and the abolition of egalitarianism, which completely discourages all", - stressed the Head of Government. He noted that now the government lays the opportunity and the annual automatic indexation of pensions, which will contribute to the welfare of citizens and the sense of caring about working people. "Our main task is to pay tribute to those who work and produces national product who develops the national economy. At the same time we must not forget those who for decades worked for the good of our country and is retired, but unfortunately, in complex and difficult conditions," - said Vladimir Groisman. He stressed that the Government's proposed changes is a system work that changes the mechanisms that existed previously and provides new financial and social bases of relations between government and citizens. However, Volodymyr Groysman thanked the President of Ukraine Petro Poroshenko and former Prime Minister of Ukraine Arseniy Yatsenyuk for their contribution to stabilizing the economic situation in the country, which allowed to carry out the necessary reforms. During the meeting, the Government approved the draft of the proposed revisions and circulate it for further consideration at the national Council of Reforms. The Prime Minister will appeal to the President of Ukraine with a request as soon as possible to hold such a meeting. Further, the draft law will be sent to Parliament for discussion and adoption as required by the action Plan of the Government and duties of Ukraine, enshrined in the programme of cooperation with international partners. "After the adoption of this law, I take full responsibility for the introduction of this law and for a positive result for the Ukrainian pensioners. Ready to take over this brand completely his personal political responsibility," - said the Prime Minister. Presenting the bill, the Prime Minister stressed that the pension system, in which the majority of pensioners are below the poverty line, requires immediate change. Thus, of the 12 million seniors 8 million receives only the minimum pension 1312 UAH (may this year), which is only about 50% of the "market basket" actual subsistence minimum for persons incapacitated. The average pension in Ukraine is UAH 1828 (as of 1 April 2017). In addition, the system for calculating pensions is unfair. The calculation formula, which involves the use of coefficients, bonuses and allowances, amount of indexing, the strange, and this allows people to calculate their future pension, and negative impact on incentives to pay contributions. Also completely lost the differentiation of pensions depending on the income. Currently, 8 million is assigned to Supplement the minimum pension. Also, there is discrimination based on the year of retirement. The current system also produces discrimination based on the year of retirement. The last modernization of pensions was carried out in may 2012, while the minimum wage increased 9 times. As a result, there is discrimination of pensioners by year of retirement pension for the same amount of insurance and earnings can vary by more than 3 times, and pensioners get poorer with time. Unfairness in the payment of contributions to shape the future of pension provision gave rise to a low level of coverage of pension insurance of the employed population, 25% of the employed population does not pay a single social contribution (16.3 million people – the employed population). Of the 26 million population aged 18 to 60 years premiums on a regular basis they will pay 10.5 million, 1.5 million - paid by the state. Government initiatives to ensure the increase of pensions and sustainability of pension system The first step of the pension reform proposed by the Government, provides for the modernization of pensions. For this, the Government introduces single rules of determining the size of pension payments. Introduces a new formula for calculating pensions for a uniform approach to the "old" and "new" pensioners using the average wage level 3764,40 UAH (previously - depending on the year a pension from 1197,91 3764,40 UAH to UAH), i.e. the metric on which pensions are calculated, will be increased almost three times. As a result of increase of pensions in the case of modernizing wage to UAH 3 764,40 more than 5 million Ukrainian pensioners with 1 æîâòíÿ2017 years after the adoption of this bill by Parliament will receive an increase of pensions up to UAH 200 and more than 1 thousand UAH per month, of which about 4 million Ukrainian pensioners will receive 300 UAH and more than 1 thousand UAH monthly increase, said the Prime Minister. The aim of the pension reform - ensuring a balanced budget for the Pension Fund in the medium term, what will happen through the establishment of requirements to the duration of insurance and the minimum size of the insurance premium. Earlier a person pay to the Pension Fund less than received. So, as of 1 January 2015, the worker on average pay 392 194 thousand UAH to the Pension Fund and in return received after retirement 204 984 thousand UAH, in 2016, this difference increased from 127 to 327 thousand UAH 231 984 thousand UAH. This difference formed the Pension Fund deficit. "Pay less - get more, in fact, due to those who faithfully worked and paid their dues. A road to nowhere, the elimination of the pension system," - said Vladimir Groisman.This is what the years have proven, some Ukrainian politicians, who have increased "handouts" at the level of the minimum pension, took away from citizens the possibility to get a fair pension, increasing the Pension Fund deficit and destroyed the system itself, he said. After raising the Government minimum wage in the country contributions to the Pension Fund amounted to 295 680 UAH and exceeded the expenditures - UAH 269 352. The Prime Minister stressed that developing the pension reform, the Government managed to avoid raising the retirement age. "The retirement age remains at 60 years for people who have an insurance period of 25 years", - said the Head of Government. This introduces a flexible corridor in the retirement age and the possibility of compensation of losses of insurance - citizens who do not have enough years of experience to satisfy the requirement regarding minimum experience, will be able to pay contributions for the missing years (maximum 5 years). "The pension system is not social assistance, and these are contributions a person who works to ensure her old age. In fact, are all the pension systems of the world," he said. The government has also provided for the abolition of the special conditions of retirement, excluding military personnel. In this context, it is envisaged to replace the mechanism of compensation of old age pensions on preferential terms for the payment by the employer increased the rate of single contribution rate of 15% and 7% for employees on the work provided by the lists ¹1 and ¹2, which will be expanded, and the introduction from January 1, 2019 through Accumulative pension Fund occupational pension programs for certain categories of persons under the age of 35 years. From 1 January 2018 to revoke pensions for years of service for employees in education, health, social protection and other, "which was more profitable to retire through low wages". In this context, the Prime Minister noted that the Government last year increased the salaries for teachers and doctors and will continue this increase. "The Ukrainian teacher, a Ukrainian doctor needs to obtain decent wages", - he stressed. The government aims to achieve stability of the pension system that will provide fair pension in the future. In this context, the Cabinet proposes to cancel the limitation of pensions for working pensioners (85% of the pension amount, but not less than 150% of the subsistence minimum for persons who lost their disability). The Government also provides for the bill an automatic rate of annual indexation (recalculation) of pensions to protect against inflation: taking into account the financial possibilities of the joint system, but not less than 50% growth of average monthly wages for three years and 50% of the consumer price index. "It's a guarantee that no one else in the country will not leave the needs of the Ukrainian pensioners later. We build a system rule that would ensure modernization and increase of pensions annually. This is an extremely important step, before us no one did," - said Vladimir Groisman. In addition, the Government proposes to provide for 2017 a second increase of social standards by 5% from 1 October rather than 1 December, as planned by the State budget. Thus, this reform from October 1, will allow to increase pensions to 9 million Ukrainian pensioners with 12 million Speaking about the financial basis of the pension reform, Volodymyr Groysman noted that the additional need for funds for the "modernization" of pensions from October 1, 2017 is 11.2 billion and about UAH 800 million to bring the increase of social standards from 1 October instead of 1 December. Together this amounts to 12 billion UAH. For 4 months of 2017 the Government has provided income to the Pension Fund additional 7.9 billion UAH after the increase in the minimum wage. It is expected that by the end of the year additional revenues to the Pension Fund will make more than UAH 4 billion, which will be used to pay the necessary 12 billion UAH. Thus, the "means October 1, we already have", - said Vladimir Groisman. This was reported in the Zhytomyr regional state administration.Ïåðåâåäåíî ñåðâèñîì "ßíäåêñ.Ïåðåâîä÷èê": translate.yandex.ru.
Source: http://uzinform.com.ua/
