Rozenko says Ukrainians deserve decent pensions / Photo from UNIAN
Ukrainian Social Policy Minister Pavlo Rozenko says the Cabinet of Ministers has not yet finalized a pension reform model, but he claims it will certainly be a defined contribution pension system, according to the Ukrainian online newspaper lb.ua.
"The Cabinet has no final version of the pension reform at the moment. There is still dialogue, discussions and consultations with experts are very serious now. However, I will never back a pension system without full-fledged second and third tiers of pension insurance. No more populism and overtures. Ukrainians deserve decent pensions, which can be guaranteed by a three-tier pension system," Rozenko said, lb.ua reported.
Read alsoIMF Memo has no obligation to raise retirement age – GroysmanThe minister claims Ukraine should have introduced a three-tier model, which is based on the 60%–30%–10% ratio for solidarity system, defined contribution, and non-state pension insurance, at least 15 years ago.
"For the fifteen years, our officials' response has been the following: it's not time, there are no proper conditions; there is no stock market for investment; there is no possibility, etc. For the fifteen years, we have heard the same old song, although everyone is well aware that the stock market won't work without resources. Non-state pension funds will not work until there is an obligatory defined contribution pension system," Rozenko said.
As UNIAN reported, the government should submit its version of pension reform for debates by the public.
Prime Minister of Ukraine Volodymyr Groysman said earlier that the updated Memorandum of Cooperation with the IMF did not stipulate the debated norm on raising the retirement age.
Ukraine approved the memorandum with the IMF in early March. The IMF Executive Board will meet in the second half of March to discuss the Ukrainian issue.