“The Ministry of Social Policy is the second largest spending ministry in Ukraine.”, — write: www.unian.ua
The Ministry of Social Policy is the second largest spending ministry in Ukraine.
The Ministry of Social Policy proposes to develop a “more understandable and honest solidarity system” / photo UNIANIn Ukraine, it is currently premature to introduce a mandatory accumulative pension system, since the country actually lacks reliable instruments for investing such funds.
According to the correspondent of UNIAN, this was announced by the Minister of Social Policy Denys Ulyutin at the Kyiv International Economic Forum.
According to him, the main problem is not in the very idea of savings, but in where exactly to direct pension contributions. Currently, the only instrument in Ukraine for such investments is domestic government loan bonds (OVDP), however, this market is currently already filled with investments from state banks and private investors.
“If you add pension investments in OVDP to this, the market will be a little tight,” said Ulyutin.
The Ministry of Social Policy emphasized that the experience of other countries shows that the success of the savings system does not depend on the contributions themselves, but on developed financial markets where this money can be effectively placed.
“These are directly countries like Denmark, the Netherlands, Australia or the well-known Swedish model. But there are deep markets, strict regulation, mature infrastructure and strong managers. In Ukraine, we are only building it while we are on our way,” he said.
Instead of a hasty transition, the Ministry of Social Policy proposes to develop “a more understandable and honest solidarity system.”
“This is a payment upon reaching the age. And the system of distribution of the solidarity part is clearly understood, which is completely based solely on the fact that the share of each person who contributed his funds to the solidarity system, he will receive them upon reaching retirement age,” Ulyutin said.
In addition, the department proposes to gradually reform the system of special pensions and replace them with professional ones, without privileges for certain categories.
“Then the second part is the restructuring of special pensions into professional pensions. That is, there cannot be any special conditions, special pensions, because it destroys the pension system in general,” the minister believes.
At the same time, the third element is a voluntary accumulation system.
“Maybe with some elements of mandatory subscription, as it is in the same Poland, with the option to refuse. But in any case, it is voluntary. Because we, as a country, have to be honest. We have nowhere to invest these funds,” Ulyutin added.
At the same time, the minister considers it a promising direction to attract international partners and foreign managers who could help in creating modern financial instruments, that is, so-called “green” and “social” bonds, which will allow investing in the development of the Ukrainian economy.
In addition, Ulyutin noted that the Ministry of Social Policy is currently the second largest spending ministry in Ukraine after the Ministry of Defense.
Pensions in Ukraine – the latest newsOn September 13, the Minister of Social Policy Denys Ulyutin said that the Ministry of Social Policy is preparing a pension reform, which plans to create a deficit-free system of pension payments, distributing only the amount of money that is actually collected through the single social contribution (SSC) in a particular year. The minister then emphasized that an important component should be the introduction of a accumulative pension system, without which it will be impossible to provide a decent pension in the long term.
Volodymyr Dubrovsky, senior economist of CASE-Ukraine, specialist of the Economic Expert Platform, said that the current joint pension system of Ukraine works according to the principle of a financial pyramid and is doomed to gradual collapse. According to him, if no real reforms are carried out, Ukrainians risk being left without pensions in 10-15 years.
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