16:37 24.05.2016

Deputy premier Rozenko hopes to retain defined contribution pension system in pension reform

2 min read
Deputy premier Rozenko hopes to retain defined contribution pension system in pension reform

Deputy Prime Minister Pavlo Rozenko is surprised with information from Social Policy Minister Andriy Reva that there is an agreement with the International Monetary Fund (IMF) to withdraw bill No. 4608 on the pension reform from the Verkhovna Rada.

The bill envisages the introduction of the second tier of defined contribution pension insurance.

"We do not have any decisions to withdraw the document. I hope there won't be. Frankly speaking, I am surprised with this information," he wrote on his Facebook page on Monday.

"This should be the decision of the government. There were no decision and not even a discussion," he added.

Reva in an interview with RBK explained the necessity of dropping the idea to introduce the second tier of defined contribution pension insurance by a large deficit of the unfied Pension Fund of Ukraine estimated at UAH 145 billion a year and the absence of guarantees of having income of the defined contribution fund that would protect it from inflation.

According to Interfax-Ukraine's information, the new top managers of the Finance Ministry also proposed to postpone the introduction of the measure.

However, the draft plan of top priorities of the government for 2016 presented by Volodymyr Groysman on May 19 the introduction of pension provision along with development of private pension provision is mentioned as a key step to be made in the medium-term outlook. The plan approval is scheduled for May 26.

AD
AD
AD
AD
AD