Prime Minister: Government submits a draft pension reform to the Parliament, 12 million retirees await its adoption

The Cabinet of Ministers of Ukraine pledges readiness to submit to the Verkhovna Rada of Ukraine the final agreed draft pension reform, thus the adoption of which envisages the modernization of pensions for 9 million retirees already from October 1, the abolition of taxation of pensions for working pensioners, the reduction of the Pension Fund deficit and an automatic norm of annual indexation of pensions. The Head of the Government noted in his opening statement at the session of the Cabinet of Ministers of Ukraine.

«Today we will submit a package of bills on pension reform to the Parliament. Our essential task is to ensure a decent standard living for the Ukrainian pensioners. An initiated by the Government reform will meet these goals. It will offer an opportunity to raise pensions to 9 million retirees. We are committed to return the utmost respect for the human work. Those who for decades have been working would get fair retirement payments», stressed the Prime Minister.

Volodymyr Groysman reiterated that the modernization of pensions encapsulates a threefold increase of calculating the size of pension payments and next year the indexation of pensions will become automatic. The focal point is to ensure a deficit-free budget of the Pension Fund which today exceeds UAH 140 billion and does not allow to change the current situation when 80% of seniors receive only the minimum pension. «We will ensure the deficit-free system in 7-10 years. The Pension Fund will work steadily», assured the Head of Government. 

He put an emphasis to the fact that the Government’s initiatives had been drafted in synergy with the experts as well as with support of the President of Ukraine and MP’s. «The Nation Council of Reforms backed our proposals. I am personally thankful to the President of Ukraine, members of the Cabinet of Ministers and MPs.  Now we are moving on to a new stage, thereby to the process of adoption of the pension reform in the Parliament. I am deeply convinced that Government jointly with both the President of Ukraine and the Verkhovna Rada of Ukraine regardless of political views will consolidate efforts in order to adopt a decision on which 12 million retirees waited for years. This is a shared responsibility as well as a joint reform. We will spare no effort to ensure the best interests of the Ukrainian citizens», underscored the Prime Minister.