The adopted changes will mean that, as of October 1, the minimum pension amount will increase from 1312 ($49.52) to 1452 ($54.80) hryvnia.
The pension reform envisages an incremental lengthening of the necessary contribution period before retirement to 25 years in 2018 and to 35 years in 2028.
From 2019, there are plans to introduce a contributory scheme. Persons who, according to current legislation, will be subject to the statutory state pension contribution on January 1, 2019, will be participants in the contributory scheme.
Insured persons who have fewer than 10 years until retirement age on January 1, 2019, will have the right to decide not to make contributions to the scheme. Persons who have already reached retirement age will not make contributions to the pension fund.
The Cabinet of Ministers has been instructed to ensure the creation of the institutional components of the contributory pension scheme’s functionality by July 1, 2018. The initial net asset value of one pension unit will be 1 hryvnia on the date that contributions are transferred to the pension fund.
The reform also envisages the allocation of a pension regardless of age after a 40-year contribution period, as of January 1, 2028.