The Verkhovna Rada, Ukraine's parliament, has supported a government bill on pension reform at first reading.
A total of 245 lawmakers out of the 381 registered in the parliament’s session hall on Thursday voted for the document. In particular, 187 Regions Party MPs, 13 Our Ukraine-People’s Self-Defense MPs, 15 deputies from the Reform for the Sake of the Future group, 20 People’s Party lawmakers and ten individual lawmakers voted for the document.
Deputies from the BYT-Batkivschyna and Communist Party factions did not participate in the vote.
The new pension reform bill proposed by the Ukrainian government highlights several innovations. In particular, the maximum pension is proposed to be limited to the amount of ten living wages (it is Hr 7,640 now).
Such a provision, stipulated in the bill, will be applied to payments that have already been assigned.
In addition, the proposed bill foresees that the retirement age of male civil servants and nine categories of employees who are entitled to the rank of a civil servant will rise to 62 years, by adding six months every year to the retirement age within four years, starting from 2013.
The document envisages a three-year transition period for women during which they will be able to choose whether to retire under the former or new law (at an older age but with a higher pension).
If a person does not retire when he or she reaches full retirement age, then every year when he or she works within the first five years after reaching the retirement age will bring an additional 6% increase in their pension, and 9% starting from the sixth year.
If retirees continue working, they do not need to report to the Pension Fund.
Upon retirement, the one-time payment worth ten pensions will be paid to doctors, teachers and social workers.
Pensions for civil servants will be calculated based on the amount of their wage not exceeding Hr 14,400.
It means that the restriction of the wage will be taken into account for the assignment of pensions for all retirees, the amount of which is paid for obligatory state social insurance.
MPs will be equated with other retirees.
However, they will be able to retire one-and-a-half years before reaching the retirement age.
The length of service of the military will be increased to 25 years, by adding six months every year within ten years.
One year will be added to the length of service for every six months of study at higher military educational institutions.
Pension reform in Ukraine is one of the main conditions for the disbursement by the International Monetary Fund of the third tranche to the country under the Stand-By Arrangement.
It should be met by the middle of June.
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