Ministry of Social Policy on the solidarity pension system: special pensions should not be paid from these contributions

In Ukraine, the pension system is quite unstable. The approaches of the solidarity pension system need to be changed. From these contributions, no special pensions, increased pensions should be paid. This was announced by the Minister of Social Policy, Family and Unity Denys Uliutin on the air of the telethon, reports UNN.

Solidarity pension system”The pension system is quite unstable, we all know about its deficit, about low pensions, this is what everyone is talking about. People do not trust the solidarity pension system. This is what we have to change, we have to change the approaches of the solidarity pension system. The solidarity pension system should be about solidarity. From these contributions, no special pensions, increased pensions, or any things that overload the solidarity system should be paid,” Uliutin said.

The Minister noted that the solidarity pension system should be clear and transparent.

“How much you contributed to this system, that’s how much you will receive in the future,” Uliutin said.

Uliutin commented on the transfer of special pensions to professional pensions.

“The second part is the transfer of special pensions to professional pensions. That is, any additional things that an employer wants to do for his employee on a professional basis should be financed from another accumulative part, without overloading the solidarity system. Ideally, such pensions, these additional parts on a professional basis should be paid from the employer’s contributions, or from the body that creates such pensions,” Uliutin said.

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The Minister noted that the employer can encourage a person with a certain increase in bonuses in the future in the pension system.

“A large layer that we have to solve and we are now actively communicating with experts inside is the pensions of servicemen. This is quite a big issue. It is really complex. We will develop this in the bill on professional pensions,” Uliutin said.

Accumulative systemUliutin stated that the main task is to protect personal pension contributions in Ukraine.

“This is when to start thinking about a pension. These should be exclusively your own, personal contributions, those that you wish to receive in the future. The main thing is to ensure the protection of these contributions. It is necessary to create a financial mechanism that will protect contributions in the future, in 10, 20, 30 years. Currently, we have started talking with our international partners about the fact that until the Stock Market is created in Ukraine, we can talk about some international instruments to protect such contributions,” the minister said.

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AdditionIn early August, the Ministry of Social Policy stated that the model of citizen support in Ukraine would be changed, with pension provision and targeted support being priorities.