Appeared details about the new phase of pension reform

In Ukraine a political decision on the introduction from 1 January 2019 the cumulative system. Photo: Today

The introduction of a funded pension system will not lead to an increase in taxes for the employees nor for their employers.

This was reported in the Facebook press service of Vice Prime Minister Pavlo Rozenko.

“Ukraine has made a political decision to introduce from 1 January 2019 the cumulative system. I think it will be a turning point for the pension system,” said Rozenko.

He believes that there are several mechanisms for the formation of contributions to the funded system.

“This is the personal contributions of the people. In addition there is a resource that you can use through the reallocation of current taxes. For example, for a certain amount to reduce the tax on the income of individuals and to forward that amount to the funded pension scheme. Or reduce the rate of the unified social contribution”, – said Deputy Prime Minister.

Rozenko noted that taxes will not increase neither the employers nor the employees.

“Already operates in Ukraine non-state pension insurance. Anyone can choose a pension Fund and make back the means not to be dependent on the state in the future,” he added.

On 3 October the Verkhovna Rada adopted the bill “On amendments to some legislative acts of Ukraine concerning increase of pensions.” Most pension payments increased in those who had a lasting insurance experience and legal high salary. After recounting the pension is increased by an average of 559,78 UAH. Prior to the law the average pension in Ukraine amounted to UAH 1886,78. Now 2446,56 UAH.