Pension reform law comes into force

Pension reform law comes into force

The law of Ukraine on the introduction of amendments to certain legislative acts of Ukraine on increasing pensions came into force on October 11.

The text of the law was published in the parliament's Holos Ukrainy newspaper. 

Prime Minister Volodymyr Groysman said in a video address on his Facebook page on Tuesday that the process of raising pensions would begin on Wednesday, October 11.

As Ukrinform reported, on October 3, the Verkhovna Rada adopted a pension reform bill, which envisages the recalculation of pensions from October 2017 and an increase in the minimum insurance period for retirement from 15 to 25 years from January 1, 2018.

The recalculation of previously assigned pensions from October 1 will be carried out using a single average salary figure for the last three years (2014-2016) in the amount of UAH 3,764.4.

The parliament also established the recalculation of pensions using the ratio of one year of service at one percent (now the ratio is 1.35%).

The following rules will be applied for the transitional period in 2017-2019 - the use in 2017 of the average salary for 2014-2016 in the amount of UAH 3,764.4 and the ratio of one year of service at 1.35%; the use in 2018 of the average salary for 2016-2018 and the value of one year of service at 1%.

Starting from 2019, pensions will be assigned using the average wage for the past three years and the ratio of one year of service at 1%.

The minimum age pension is set at the level of the living wage for disabled people who have 30/35 years of service (for pensions awarded before October 1, 2011 - in the case of 20/25 years of service).

The bill preserves the right to assign an age pension at the age of 60 for persons who have a full pensionable service period. From January 1, 2018, the age pension will be set at the age of 60 for people who have 25 years of work as of January 1, 2018. The range of required length of service will grow annually by 12 months and reach 35 years in 2028.

Those citizens who will have 15-25 years of pensionable service by January 1, 2018, will be able to retire at 63. From 2028, pensions at the age of 65 will be awarded to persons who will have 15-25 years of pensionable service.


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