PM of Ukraine Charged to Limit Extremely High Pensions
OREANDA-NEWS. December 09, 2010. The Prime Minister of Ukraine Mykola Azarov met with the Chairman of the Pension Fund of Ukraine Borys Zaichuk.
During the meeting the Head of the Fund informed the Prime Minister on the status of the pension system in Ukraine. In particular, he emphasized that despite the difficulties in filling the Fund, all pensions are paid on time and in full volume.
"Pension benefits are paid out in full volume in the statutory term. November was funded, and till December 25, we will fully pay all the pensions for December"- the head of the Pension Fund said.
However, he stressed that despite the revenues increase by 19%, compared to last year, the Pension Fund deficit this year is 26.6 billion UAH. Last year the country lost almost a million jobs, again payment of shadow wages and under-paid illegal wages are spread, the simplified tax system left unchanged, which gives very little solidarity in the Pension Fund. Therefore, the same deficit is expected next year. Thus, the Pension Fund is forced to make loans. Self-supporting work of the Fund, according to the Chairman, is possible only at optimization of pension benefits and legislative changes in the pension system as a whole.
The Prime Minister of Ukraine Mykola Azarov entrusted the Chairman of the Pension Fund together with the Ministry of Finance to prepare primarily urgently a bill on limiting the amount of pension.
"It is absolutely wrong and unfair that some people get the pension of 800 UAH and others get 50 thousand UAH, and they get them from the solidarity fund - the Head of the Government emphasized. - Develop such a bill so that already since January 1, next year, we could eliminated this social injustice created by the previous government. Make calculations how we can reasonably limit the maximum amount of pension - perhaps it would make 10-12 minimum pensions - and calculate what savings it would give."
In addition, the Prime Minister instructed to consider changing the retirement age for certain categories of citizens: "We have to start with civil servants. Do the math, what savings would be with increase of retirement age for officials. At the same time, sort things out and propose how and for whom we might reasonably limit the scope of preferential retirement, sometimes it happens at 35 years. How to encourage people to work longer and delay receiving pensions. After overcoming the deficit of the Pension Fund we would be able to return the "postponed" retirement payments".
The Prime Minister is confident that we should immediately move to fully funded pension insurance. This will encourage people first, not to get wages "in an envelope", and secondly, to work as long as possible and fill the personal retirement account. The Prime Minister instructed to immediately develop a bill.
Mykola Azarov underlined that all the bills that are part of the pension reform should take into account international experience of pension reforms, and must be thoroughly worked with unions, employers, experts, and NGOs.
Комментарии