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  • Prime Minister: We plan to introduce a new system in the calculation of pensions to level out the disproportions
    Communications Department of the Secretariat of the CMU, posted 22 September 2023 17:48

    The main goal of the pension system renovation is to ensure that every Ukrainian pensioner receives a solidarity pension of at least 30% of their average lifetime salary. Prime Minister Denys Shmyhal emphasized during a Government meeting on September 22.

    He added that together with the accumulative component, which the Government planned to launch in 2025, the pension would amount to at least 50% of the average life-long wage.

    "Starting 1 March 2024, we will index pensions for the second time during the great war. Next year, we plan to make this indexation, as well as the entire solidarity system, more fair, understandable, and transparent," said Denys Shmyhal.

    According to the Prime Minister, a scoring system will be introduced in the calculation of pensions. It is aimed to equalise the disproportions between pensioners who have retired long ago and those who have done so recently. Accordingly, payments to pensioners who retired earlier will be adjusted to the current level.

    "Employed people pay a monthly contribution to the Pension Fund. The contribution will be converted into scores according to the ratio between the person's salary and the average salary in Ukraine at a given time. If you paid contributions from a salary that is the national average, you will receive 10 points. Above the national average - you get, for example, 12 or more points, below the average - 8 points," the Prime Minister said.

    These points will then be transferred back to the pension each year in the same way, depending on the current average wage. According to the Prime Minister, this will make the solidarity pension system protected from inflation and devaluation.

    Prime Minister: We plan to introduce a new system in the calculation of pensions to level out the disproportions