IMF and World Bank approve pension reform plan in Ukraine
A bill to reform Ukraine’s pension was approved by the IMF and the World Bank, as reported on the Ukrainian government’s website.
The plan was developed by the Ministry of Social Policy of Ukraine in accordance with direction from Prime Minister Volodymyr Groysman. The Ukrainian government approved the bill in May.
According to the bill, the retirement age will not be increased, but the minimum insurance period required for retirement will increase from 15 to 25 years. Also, special conditions for retirement and the right to receive a retirement pension for certain professions will be abolished.
Pension reform was one of the conditions set by the IMF in order for Kyiv to receive $17.5 billion in financial assistance.
There are 12 million people receiving a pension In Ukraine. Eight million of them receive a minimum pension of 1,312 hryvnia (about $50 USD).