Ministry of Social Policy made public draft law proposing the reform of the joint pension system. The new approach assumes that pensions will consist of basic and insurance parts.
The basic pension will be fixed and the same for all pensioners, guaranteeing a minimum level of social security. Its size will be 30% of the minimum wage after taxes.
The insurance part of the pension will depend on the length of work experience and the amount of wages. The calculation will be made according to the point system: every month of official work, citizens will receive pension points, and the amount of the insurance pension will be determined by multiplying the total number of points by the value of one point. The value of the pension point will be revised annually in March, taking into account the average salary in the country: this will replace the traditional indexation.
To retire at the age of 60, it will be necessary to have 35 years of work experience. Those with 15 or more years of experience will be able to receive a pension at the age of 65. The reform is expected to enter into force on July 1, 2025.
If the initiative of the Ministry of Social Policy is successfully implemented, a three-level pension system will work in Ukraine. This will allow pensioners to receive benefits, the amount of which will exceed half of their previous salary. Such prospects are promised by the authors of the draft law.
