“The Pension reform which has been started three years ago could be fulfilled only due to the conditions of stable economic growth”, Prime Minister of Ukraine Viktor Yanukovych stated at press conference after the sitting of the board of the Ministry of Labour and Social Policy of Ukraine, Cabinet press office informs.
Among the important positive results of the Pension reform the Head of Government noted the fact that in 2004 we have succeeded to increase provision of pensions to a living wage. Today, the living wage and correspondingly minimum pension provision equal to 380 UAH. If in the beginning of the pension reform an average pension in Ukraine equaled to 178 UAH then now it has reached 478 UAH.
“The pension increase today is higher than GDP growth. We repay pensioner debts. But we have not solved this problem yet and it is necessary to continue the fulfillment of Pension reform”, Viktor Yanukovych said.
Among the measures on continuing changes in pension provision the Prime Minister noted the bill on introducing the second level of accumulative system submitted by the Cabinet of Ministers to the Verkhovna Rada in December last year. As soon as the Parliament passes this bill the Government will establish new system of pension provision allowing labouring people to deduct funds from salary for their future pension.
According to the Prime Minister, the Pension reform is designed for many years. First of all, it is necessary to create conditions for stable pension increase. The difference in minimum and maximum pensions shall not be essential as we have today. The highest verge should be limited and the lowest should not be lower than a living wage.
“We will succeed in reformation of the pension system only under significant wages growth. The labouring people can provide pension deduction for almost 14 million pensioners only if their wages will increase annually at least by 25%. Thus, the pension reform will be fulfilled and, undoubtedly, the second level of accumulative system will be created”, Viktor Yanukovych said.
Answering the questions on eventual introduction of one social deposit the Head of Government said that the corresponding bill was submitted by the Cabinet of Ministers to the Parliament. In his opinion, this system is advanced and can improve the social situation in the country.
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