The Minister explained how the pension would be formed

29 April 2015 15:06  3997613 098618
The Minister explained how the pension would be formed

Funded pension system is to be introduced on January 1, 2017.

This was stated by the Minister of Social Policy Pavlo Rozenko, who also asked to send the relevant bills to the Parliament.

The Minister said that the pension reform would "allow to pay pensions from three different sources: from the PAYG system, the funded system and the private pension insurance system".

"We suggest to launch the funded system on January 1, 2017. We need time for the preparatory phase of the pension system reform, to create a savings fund. The development and implementation of such a system is possible only when the economy and wages start growing. We hope that Ukraine's economy will start growing on January 1, 2017," - Rozenko said. 

In turn, the Prime Minister Arseniy Yatseniuk supported the bill.

"Our bill provides state guarantees for the funded system. That is, anyone, who pays an additional contribution and saves funds for their retirement, receives 100% state guarantee that those funds will not only be preserved, but will be multiplied, for they are another factor in the development of the Ukrainian economy and will be invested in the Ukrainian economy and creation of new jobs" - Yatsenyuk said.

"And then, when a rerson retires, he or she will have two sources of pension - the first is thw standard system that exists today, and an additional source - through the funded system guaranteed by the state. This will result in a fairer European pension. The process is slow, but we will launch it and in several years it will allow to change the pension protection of our citizens," - Yatsenyuk said.

Ukrainska Pravda

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