Pension Fund needs extra UAH 5 bln to increase pensions in Oct

"An extra UAH 5 billion is needed to resume pension reform in October this year," the report said.

Since the beginning of the year, an additional resource of over UAH 26 billion ($980 million) has been created in the Pension Fund, in particular, due to additional revenues from raised minimum wages and their deshadowing. Re-calculation of  Ukrainian pensions will be made at the expense of the funds received, the press service added.

"We have all the resources to ensure that pensions are recalculated for 9.7 million pensioners this year. Nearly 6 million pensioners are subject to pension upgrade. An increase in pensions for the rest of them will be provided along with the growth of the subsistence minimum," the press service quoted Zarudnyi as saying.

Read alsoPM Groysman: Poroshenko enacts pension reformAs a result of the pension reform, the minimum pension will be at UAH 1,452 ($55) compared to the previous UAH 1,312 ($49). The average pension will increase by almost UAH 700 ($26) from UAH 1,890 ($71) to over UAH 2,500 ($94).

In addition, the mechanism of automatic indexation (recalculation) of pensions will function, which will lead to increased payments for pensioners.

Moreover, the state will continue to pay preferential pensions to those who have a right to them, the press service added.

Read alsoUkraine committed to IMF, still expects aid tranche this year - finance minister"The payment of preferential pensions, special long-service pensions, will continue. Those who today (at the time of the adoption of the law) were entitled to these pensions will continue to be able to exercise this right. In the future, it is assumed that all pensions will be assigned according to one law and with a single approach, except for military personnel, ballet artists, etc.," Zarudnyi said in a statement.

According to the report, the implementation of pension reform will allow the Pension Fund to deduct expenses unnatural for its operations. As a result, only retirement benefits associated with the insurance record will be paid out.

"It will unload the Pension Fund gradually and reduce its deficit," the press service summed up.

Read alsoRada unblocks signing of pension reformAs UNIAN reported earlier, the Verkhovna Rada on October 3 passed bill No. 6614 "On Amending Certain Legislative Acts of Ukraine Regarding Increasing Pensions." Some 288 lawmakers voted for its adoption with the required minimum being 226 votes.

On October 6, Ukrainian President Petro Poroshenko enacted the bill into law, which was published in the official newspaper of the Verkhovna Rada "Holos Ukrainy" on October 10. The law came into force from the day after the publication, that is, from October 11.

The International Monetary Fund earlier stated that the adoption of the pension reform is critical for new disbursements to Ukraine.