Minister Discusses Pension Reform Strategies with ILO
Denis Ulyutin, the Minister of Social Policy of Ukraine, held a significant meeting with representatives of the International Labour Organization, led by Aida Lindmaier.
«Our goal is to establish a modern and resilient social protection system that supports both citizens and the economy. It is not just about payments, but also about creating conditions for growth,» Ulyutin emphasized.
During the meeting, Helmut Schwarzer, head of the ILO's Department of Financial Services, presented forecasts regarding the financial sustainability of Ukraine's pension system in the medium and long term.
The study provides an objective assessment of the financial stability of Ukraine's pension system. It highlights that without reforms, the Pension Fund's deficit will grow due to demographic changes and a decrease in the working-age population, while systemic changes can help stabilize the situation. Thus, the analysis serves as a reliable foundation for further improvement of the pension system, emphasizing social justice, transparency, and financial responsibility.
The Ministry is currently collaborating with international partners to develop legislation that will define a modernized pension model for Ukraine.
This model will include key elements such as:
- a basic payment for the elderly: a guaranteed basic payment is proposed for citizens reaching 65 years of age or those with a full insurance record at 60. This will ensure a decent living for older people and protect the most vulnerable from poverty;
- restoration of solidarity principles: the Ministry proposes a unified formula where pension amounts depend on contributions made. This will keep the Pension Fund solvent, and citizens' contributions will directly determine their pension amounts, making the system transparent and fair;
- transformation of special pensions into professional ones: it is planned to standardize the solidarity pension rules for everyone and create professional pensions for certain categories of workers funded by additional contributions. This will balance the system and enhance the fairness of payments;
- updating approaches to the accumulative system: a model of voluntary accumulative pensions with state incentives and capital protection guarantees is being developed. This will complement the solidarity system and encourage personal savings for retirement;
- adequate support for veterans: this refers to providing dignified support for veterans defending Ukraine in the war. Plans include the introduction of additional pension payments based on combat experience with clearly defined and transparent criteria, ensuring fair compensation for veterans’ service and contributions to the nation's defense.
