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Basic pension and balances for paying contributions: the project of large-scale pension reform has been publicized

The Ministry of Social Policy supported the pension reform project. It introduces the provision of a basic pension, which is 30% of the minimum wage, and a system of points for insurance contributions.

RBC-Ukraine informs about this after submitting the draft law, placements for discussion on the FPU website.

The Ministry is promulgating the law “On the State Pension Insurance” in a new edition.

The Ministry is pleased to announce that the bill will be allowed to move forward vipay for 80% pensioners and avoid inequality between the sizes of pensions assigned to different families.

In addition, it is predicted that the scope of pension rights will be simplified and that the size of your future pension will be reduced to a reasonable size.

Proposition of the project

As indicated in the explanatory note before the project, proclamation reducing the disproportion in the system of joint pension security, promoting uniform approaches to pension insurance, ensuring a clear correlation between the size of the paid amount of the insurance contribution and the size pensions.

In order to calculate the size of the pension, it is necessary to collect information about the amount of paid insurance contributions, instead of information about wages (income), from which insurance contributions have been paid.

Up to size The joint pension is not subject to the maximum amount.

It is also proposed to increase the basic pension to replace the continuous cumbersome and unclear system of numerical additional payments and “extras” of non-status character.

“In fact, we are going to cover such additional payments with one sum – the basic part of the pension. In addition, the basic part of the pension will ensure a minimum level of pension security in the solidarity system of the legal obligation of the sovereign pension insurance for individuals who have acquired the right to a pension after retirement,” is included in the document.

The concept of “pension” is also introduced for all allowances, other payments, which may have a status character and other privileges (as established by other laws) and which are paid for the distribution of funds to the state budget. The legal norms for such additional payments (benefits) are reflected in one law on state social additional payments to pension holders and other payments received from them under various laws.

Basic pension and balance

The pension for a century consists of the basic part of the pension for a century and the insurance part of the pension for a century.

The amount of the basic part of a pension for a century becomes 30% of the minimum wage for the current year rik, changed to the amount of taxes and other obligatory payments.

The amount of the insurance part of the pension is calculated as it is similar to the amount of contributions that the person has paid throughout the entire period of his or her employment.

The value of one point is calculated according to the formula, based on the average salary for which insurance contributions were paid for the front line, and 4200 – the average number of points earned by a person for 35 years of insurance experience with payment of contributions.

The value of one point is determined by the Cabinet of Ministers and is confirmed within 1 week.

Indexation of pensions

The bill changes approaches to pension restructuring in connection with indexation. Physicians that the key criterion for the level of pension security is the replacement rate, which is the percentage of wages, as well as those that the rate of growth of wages in the average In the long-term periods, as a rule, the rate of inflation exceeds, then it is proposed to increase the insurance part of the pension in line with the increase in the average salary.

“The increase in pensions will follow the processes that occur in the economy: an increase in wages (increase in the amount of contributions from contributions) – an increase in pensions, an increase in wages payments – the increase in pensions is increased,” is included in the explanatory note.

The approach to pension adjustment is also changing for those who have continued to work in retirement. For current pensioners, pension changes will occur automatically soon. The size of the pension will increase depending on the amount of accumulated additional work experience.

Special pensions

To ensure a clear and fair pension system, as practiced by a mathematical model based on actuarial forecasts and without “manual” input, additional preferences (additional payments, allowances, promotions, multiples of length of service, etc.) in the pension security, as established by various legislative acts, are derived from the pension structure in the solidarity system in addition to additional payments – state social additional payments to pension holders.

All current additional payments, allowances, additional pensions, allowances and other additional payments to the pension, which may be of a mental status nature, or were established for personal merits and particularities of work (do not fall under insurance principles) will be saved and consolidated in a single law (new edition of the law “On pensions for special merits”). Apparently, the rules that define such payments in special laws will be specified in this law.

The amount of additional state social payments before retirement for each category of individuals is established as a fraction of the base value, the amount of which at the start of the reform will be equivalent to the size of the subsistence a minimum for people who have lost their productivity. Subsequently, the size of the base value will be confirmed by the Verkhovna Rada in the law on the state budget of Ukraine for the independent river with the growth of the economy.

Government social additional payments to pension holders and All other payments are made for the share of the state budget and continue to be paid by the Pension Fund of Ukraine along with the payment of the pension, which is determined according to the explanatory note.

Pension for people with minimum experience

The bill proposes to expand the coverage of pension benefits for those who have reached the 65th century, but do not have enough insurance experience, although they have paid quite a large amount of insurance contributions.

Zokrema, it is proposed to grant the right to a pension beyond the age of age regardless of the obvious insurance period (the minimum benefit is 15 years) to individuals who have reached 65 years, for the reason that up to this hour they have paid contributions in the amount, equivalent amount of deposits for 30 years of service with a minimum salary.

In case of which other basic parameters for determining the right to a pension (possible before the insurance period and at the age of retirement) are forfeited without changes.

Previously, the Minister of Social Policy Oksana Zholnovych stated that the pension system of Ukraine was often subject to changes, as a result of which the pension system became more complex. Therefore, the Ministry of Social Policy wants to simplify the mechanism and introduce the system of points. There will be only as many fates as people have worked and contributed to the insurance system.

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