Department of Labor: The Government approved the Concept of further pension reform in Ukraine
The Government approved the concept further for pension reform in Ukraine. The draft document, Minister of Labor and Social Policy of Ukraine Lyudmyla Denisova presented at the next meeting of the Government.
She said that the draft Concept provides: to balance the pension system and alleviate the financial pressure on it caused by aging, gradually overcome the disparities of pensions assigned in different years or different terms of pensions, enhance differentiation of pension to persons who worked all his life, but received a small wage, increase voluntary private pension savings and interest of workers and employers in their formation to improve the efficiency of state regulation and control in the field of private pension savings, complete the formation of three-pillar pension system, vprovadyvshy mandatory funded pension system.
According to the Minister, the financial balance will be achieved through two areas - internal features of PAYG and unloading through the PAYG transfer part of its expenditure funded pension system and the professional pension programs.
"We expect to achieve a more equitable distribution of financial resources of solidarity between those who have many years of retirement, and those persons who retired recently appointed. This mechanism will be introduced progressively earlier modernization intended to pensions so that their size does not depart from the newly appointed pensions ", - said Lyudmila Denisova.
The Minister stressed that for people who are engaged in hazardous and difficult working conditions (miners, chemists, metallurgists), provides for additional retirement savings in the professional pension programs. At the same time for people who already have experience in such circumstances, continuing their acquired pension rights.
"The introduction of second pillar is possible after the financial-economic crisis and to restore conditions for economic growth and the capacity of the state budget to compensate the" outflow "of funds from PAYG to fully funded mandatory pension system. This delays the introduction of second pillar is unacceptable given the prospect of growing demographic pressure on pension systems "- said official.
So, according to Lyudmila Denysova, the introduction of mandatory funded system is divided into two phases. The first is complete formation of the institutional and technical components of the system (2010 - 2013 years) and second (2014 - 2017 years) - gradual implementation.