Vice PM of Ukraine Discusses Pension Reform
OREANDA-NEWS. January 24, 2011. Pension reform became more actual theme in media. This was announced during a meeting with journalists, Vice Prime Minister - Minister of Social Policy of Ukraine Sergiy Tigipko.
According to him, launching a wide public discussion draft "On measures to ensure the legislative reform of the pension system", Government is interested in, to listen to all reasonable proposals and consider them in the new document.
Asked about the inclusion in the seniority of maternity leave, Sergiy Tigipko said: "The duration of maternity leave will be included to seniority. But mothers are entitled not to consider the years of being on maternity leave for calculating the ratio of wages to be determined at retirement". Thus, the official marked, referred to strengthen social protection of mothers.
In key moments that led the Government to take decisive action to reform the pension system, Sergiy Tigipko carried away the need to improve social protection of the poorest pensioners. In addition, the ratio of payers of pension contributions to retirees today is almost one to one.
The Vice Prime Minister - Minister of Social Policy considers it appropriate to translate into budgetary commitments unusual for retirement benefits. This is a supplement to people whose pensions are not stopping short of the minimum size. To date, the amount of payments for them is 25 billion UAH.
According to Sergiy Tigipko provided pension reform measures will provide more opportunities to raise pensions for those who now found himself among the poor.
"This is especially true of quite a number of labor pensioners who retired 15-20 years ago, when wages were low - and is a little under their pension. We have 64% of pension will not even reach 1000 UAH, - he underlined.
In addition, the official said, raising the retirement age will reduce the number of new retirees and expand the circle of employees.
Answering the questions of journalists on the need to extend the work experience needed for a full pension, Sergiy Tigipko relied not only on the experience of most countries, but also for domestic statistics. The average seniority of workers in Ukraine is 37,5 year.
In his view, the Government now takes steps to help remove the most critical problems of the pension system in 5-10 years.
"In other words, we do not dramatically help themselves, and subsequent governments. But reform the pension system, we'll begin," - is sure Vice Prime Minister.
He emphasized that the Government initiated a new law norms does not affect current retirees: "Innovations will cover only those people who come out to well-deserved rest after the enactment of the law "On measures to ensure the legislative reform of the pension system".
Speaking on a one-time payment in the amount of pension tenfold for doctors, teachers and cultural workers, Sergiy Tigipko not exclude that this list may include also social workers who have put forward such a proposal during the public discussion of pension reform.
"After appropriate calculations we consider probability and the step" - Sergiy Tigipko explained. He also pointed out to consider the possibility of retirement to allow charge to earnings in 2000, before the introduction of personalized account of contributors. Eliminates the Vice Prime Minister likelihood of problems with personnel support to law enforcement. "For military personnel changes will only affect the length of service, which will be 25 to 20 years, as in Soviet times. It retains all the military positions for working - they will receive their full pension,"- Sergiy Tigipko marked.
Answering a question whether the pension reform will not threaten the national unemployment level, Vice Prime Minister noted that in the near term priority for Ukraine will be no problem of unemployment and labor shortage.
"Even now in some sectors there is a lack of workers, particularly in the mines of Lugansk region. Acute lack of workers, including mechanics and turners, on the plants, factories of Dnipropetrovsk and Kharkiv. We expect the influx of specialists in such fields as construction and engineering industry. And these companies are engaged in software. Here in the next five years is expected to need at least 50 thousand jobs. Specialists in this field are turning to the Government with proposals for training and establishment of appropriate training programs,"- Sergiy Tigipko marked.
According to him, not less important is the legalization and wages and pulling the economy out of the shadows. Today, average wages in the public sector is 2400 UAH, and in private - 1800 UAH. If earnings in the business to raise at least the state enterprises and organizations, we would receive in tax 19 billion UAH of additional revenue.
Balance the pension system and differentiate depending on the pension and earnings is intended to introduce a cumulative level.
"We should study the experience of countries where it was introduced. We plan to analyze in detail the achievements of Poland, Slovakia and Kazakhstan. That the second level began to work valuably, we need also to take a series of new laws, particularly the insurance, securities market development, etc.,"- summed up by Vice Prime Minister - Minister of Social Policy of Ukraine.
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