The bill on pension system reform could be prepared by the middle or the end of April / Photo UNIAN
Ukraine’s Ministry of Social Policy intends by May submit to the Verkhovna Rada a draft law on introducing a contribution-based pension system in Ukraine, Minister of Social Policy Pavlo Rozenko said at a briefing in Kyiv on Thursday.
Earlier, the minister said that the contribution-based pension system should work in an experimental mode from January 2016. Initially the experiment is planned to involve funds from citizens of an amount of at least $1 billion.
Rozenko said that funds for retirement accounts - so-called "long" money - would be invested in securities, including government ones. The contribution-based pension system reforms will put to use the experience of Western countries, especially Poland, where a similar individual contribution-based pension system was introduced in the late 1990s.
As UNIAN reported earlier, in February, the Cabinet of Ministers approved the Pension Fund budget for 2015 with revenues of UAH 234.4 billion, and a deficit, which will be covered directly from the state budget, of UAH 19 billion.
There are about 13.5 million pensioners in Ukraine. In mid-March Ukraine enacted a law on a 15% reduction in the pensions of working pensioners whose pensions exceed UAH 1,453, and the temporary abolition of special pensions for pensioners who had had special public duties.