The pension reform will allow Ukrainians to inherit pensions of dead relatives

6 May 2015 08:53  1998016 099022
The pension reform will allow Ukrainians to inherit pensions of dead relatives

The government of Ukraine told about some details of the upcoming pension reform.

According to the officials, the funded system, which will be mandatory for all citizens under the age of 35 years, will start working in two years, the TSN informed.

"After the introduction of a funded pension system, the state guarantees the safety and monitoring of the funded system," - the Minister of Social Policy Pavlo Rozenko said.

In the first phase, the reform will cover 6 million Ukrainians. Every month, a certain amount will be transferred to their personal pension accounts. First, it will be 2% of the salary. Then, every year the percentage will grow, until it reaches 7% in 2022.

The total amount of social contributions from the employee and the employer will not change and will be distributed to various accounts, since the reform provides for the traditional PAYG too.

"All the accumulated pension assets, which will be on the personal account of a person, who died before he or she had a chance to use them, will be inherited," - the head of the Pension Fund of Ukraine Oleksiy Zarudny said.

Ukrainska Pravda

Tags: pension

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