Complete introduction of the accumulative pension system in Ukraine requires the creation of appropriate infrastructure.
Minister of Social Policy of Ukraine Yulia Sokolovska stated in an interview with Interfax-Ukraine Information Agency.
"In order to introduce an accumulative system, we first need to create a design: who pays what percentage, make updated calculations to find out whether it is for the benefit of the person. Plus, accumulation means long money, that is, saving. Normally, this works in a way that the money is invested, which means that there must be a market where one can invest. Currently, there is, in fact, no such market in Ukraine. You know that a split bill has been passed and that stipulates that the National Securities and Stock Market Commission exercises control over the activities of non-state pension funds. These are probably the first steps that we can talk about and if we move in this direction effectively, then over a certain period of time we will be able to introduce the accumulative system as well”, said Yulia Sokolovska.
According to the Minister, the introduction of the accumulative pension system in Ukraine will take place in line with the leading world practices. At that, Yulia Sokolovska stressed, a crucial element is an information campaign to explain the essence of the reform: “I believe that with our pension system, no matter it is an accumulative or non-contributory one, a person does not really understand how much money he/she will receive through the paying the UST (unified social tax). This is also a problem, and I would like to address this issue in the coming months, just to explain to people how our solidarity system works."