Ukraine plans to completely change pension calculation system
Ukraine is preparing a major pension reform that would completely overhaul the pension calculation system.
According to Censor.NET, this was announced by MP Olga Vasylevska-Smahliuk while commenting on the government’s reform proposal. Under the proposed changes, pensions would consist of two parts: a basic component and an insurance component.
What the government is proposing
The basic portion of the pension will be funded by the state. The insurance portion will depend on a person’s length of service and the contributions they have paid.
The government is also proposing to introduce a guaranteed minimum pension level and to narrow the gap between the lowest and highest pensions.
According to the reform’s authors, the current system leads to pensions gradually losing their value just a few years after a person retires.
Furthermore, citizens with the same length of service and salary may receive different pensions simply because they retired at different times.
What else is planned to change
During the discussion of the reform, the issue of so-called special or "elite" pensions for certain categories of citizens was also raised.
The government proposes to gradually transfer such payments to the system of occupational pension programs.
The issue of the single social contribution rate and the development of voluntary pension savings is being considered separately.
The plan is to submit the draft law to the Verkhovna Rada no later than the fall of 2026.
