Social policy minister names condition for pension increase

Ukrainian Minister of Social Policy Maryna Lazebna has said the ministry is developing a pension system that would increase the size of pensions by 33.4%-66.7% without raising the Pension Fund deficit.

"The average pension will grow from UAH 3,500 (US$126) to UAH 7,000 (US$252). Pension funds accumulated over the years of employment could be passed to heirs. It will be nice if people finally had an opportunity to have alternative sources of pension payments," she said during a meeting at the President's Office chaired by President Volodymyr Zelensky, the president's press service said.

The minister said it is necessary, first of all, to change the philosophy in the approach to pension provision: it's not only the government that provides funds, but also citizens who accumulate money for own pensions.

Read alsoPensions increase in Ukraine – Cabinet of MinistersLazebna also said the ministry is actively working with the Ministry of Digital Transformation on the introduction of e-services in the social sphere – up to 125 services will be available online.

In turn, Zelensky said the older generation should receive decent pensions.

"Ukraine should become a country where everyone feels comfortable. The older generation should be provided with decent pensions. We must help the poor socially and motivate them toward official employment," the president said.

Background

On February 18, 2021, the Cabinet of Ministers approved the budget of the Pension Fund of Ukraine for 2021, in which the total amount of revenues is UAH 495.5 billion (US$1.79 billion). The total expenditure side of the budget of the Pension Fund of Ukraine for 2021 is provided at the level of UAH 495.502 billion.

Earlier, Prime Minister Denys Shmyhal the Cabinet of Ministers plans to start introducing a funded pension system in Ukraine in 2021.