In Ukraine, they plan to change the principle of calculating pensions by introducing a new system based on the calculation of points for the number of years of insurance experience and the level of wages. This was stated by the Minister of Social Policy, Oksana Zholnovich, during the presentation of the “Social Portal”.
According to her, the basis of the new system will be two key factors: the duration of the insurance period and the amount of contributions to the pension system. These criteria will be converted into points that will be calculated for each month of work.
“As part of the pension reform, we want to make such changes that would show a very simple mechanism for calculating and paying pensions”, she said.
The minister emphasized that this approach is the most objective, as it reflects the real level of income in the country. According to her, the average salary is an indicator that reflects the economic situation, and the pension calculation system will be based on it.
“And therefore it will be the most fair format and accumulation of our joint pension contributions”, she said.
We will remind, earlier the Minister of Social Policy Oksana Zholnovich noted that frequent changes in the pension system of Ukraine significantly complicated the process of calculating pensions. In this regard, the Ministry of Social Policy seeks to create a simpler and more understandable mechanism for calculating pension payments.
