19:17 04.04.2017

Pension reform expected to be approved by Rada before May – memo with IMF

The pension reform could obtain parliamentary approval by end-April 2017, according to a memorandum between Ukraine and the International Monetary Fund (IMF) published on the IMF's website.

The pension reform will become effective by January 1, 2018.

This reform will have the following features: a new set of retirement options, with a wider range of retirement ages than at present, offering an important degree of choice and dependent on total years of service, and with pension benefits that provide incentives for longer employment and later retirement.

The reform will have savings of at least 3% of GDP over the long term, including by lengthening the effective years of service at retirement; and an assurance that Ukrainian citizens have pensions that are proportionate to their contributions and adequate in real terms.

According to the materials attached to the memorandum, average affect pension age in Ukraine is 58.5 for men and 55.9 for women, while in EU it is 63.5 and 62.5 on average respectively.

Social Policy Minister of Ukraine Andriy Reva told Interfax-Ukraine that this does not mean the increase of pension age. It only implies the liquidation of a deficit of the Pension Fund during 10 years.

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