Ukraine prime minister on pension reform: We will do our utmost to pass bill

"We will do our best, everything in our power to adopt a pension reform," he said.

In his words, politicians' statements about the overestimated criteria for the required employment record as part of the pension reform are plain populism.

"How can you say that 15 years of employment record is enough for retirement? This means the plundering of those people who have been working all their lives and paid contributions. We must adopt the reform, look people in the eyes, give them their money, change the pension system, make the pension fund deficit-free, and start thinking about raising pensions rather than close off the loopholes. Some 25% of people pay no taxes to the Pension Fund, and then they come and say: 'Give us pensions.' And at whose expense do they get pensions? At the expense of those who work today. It shouldn't be so, we need to make a fair system," Groysman said.

As UNIAN reported, Ukraine's Cabinet of Ministers had approved a bill on pension reform and sent it to the National Reform Council under the President of Ukraine.

Read alsoUkraine's finance minister: No more money from IMF without pension reformAs part of the pension reform, the Ukrainian government plans to raise pensions UAH 200 to UAH 1,000 from October 1, which, according to preliminary estimates, will affect some 5.6 million Ukrainians. The government will also cancel taxation of working pensioners' old-age benefits.

The pension reform does not provide for raising the retirement age, at the same time introducing requirements for a minimum insurance period. So, a person will need to have a minimum insurance period of 25 years to retire at age 60, from 15 to 25 years – at 63, and less than 15 years – at 65. At the same time, people without pension insurance record will be able to qualify for social assistance when they reach 63. The amount of assistance will be determined based on the income level of the pensioner's family.

All standards of minimum insurance period will increase by one year every 12 months until 2028. Thus, starting 2028, a person needs to have 35 years of pensionable service to retire at 60. At the same time, the government version of the reform provides for the possibility of buying up to five years of the pensionable service. So, if a person had to buy the pension insurance record now, under these rules, he or she would have to pay UAH 16,896, or about US$642, for the first year.

Read alsoPension reform: Ukrainians to be able to "buy" up to five years of pensionable serviceThe reform also abolishes special long service pensions to state officials, introducing a single formula for calculating the amount of pensions, which ties it to the total sum of contributions paid to the Pension Fund.