Poroshenko signed a law on pension reform

Poroshenko signed a law on pension reform

The President of Ukraine Petro Poroshenko has signed the Verkhovna Rada adopted laws on pension reform. The Prime Minister Volodymyr Groysman wrote on Facebook.

“President Petro Poroshenko signed the laws on pension reform. As I promised, all retirees in October will receive the new increased pension! Thank you to everyone for your support!” — stated in the message.

Earlier, on October 3, the Ukrainian Parliament approved a law on pension reform, the adoption of which is one of the requirements to receive the next tranche of lending from the International monetary Fund (IMF).

Reform does not require raising the retirement age, however, provides for an increase in the minimum required for retirement insurance record from 1 January 2018 from 15 to 25 years and subsequent annual increase of 1 year. Citizens will also provide an opportunity to compensate for the lack of insurance, with contributions to the Pension Fund.

The pension will increase from October for 9 million people. The increase will be from 200 to more than a thousand hryvnia (7,5− $ 37).

The law eliminated special pensions for civil servants, prosecutors, judges, and scholars. The only exception is military. From 1 January 2018 it is planned to abolish the right to pension for length of service for employees in education, health, social protection and other categories. Thus, the authorities intend to reduce the number of pensioners in the country.

To obtain a new IMF tranche in the amount of $ 1.9 billion Kiev should start a pension reform, to create anti-corruption court to improve privatization legislation and to raise tariffs for utilities.

The total amount of IMF assistance program Ukraine amounts to 17 billion dollars. But because of the delay in the enactment of laws was in Kiev in 2017, only one tranche of $ 1 billion.