“Even though the government is promising to increase pensions as early as this year, 56% of people will not receive any additional money at all” – Samopomich

Government initiatives on the pension system reforming cannot be called a reform it all, say people’s deputies from the Samopomich Union faction – Tetiana Ostrikova and Roman Semenukha. The “reform” of the Cabinet does not only offer no systemic changes, it also jeopardizes the hopes of future generations for a decent pension.

Roman Semenukha dispels the myths about the government’s pension strategy:

– The Prime Minister has noted that one of the main tasks of the reform is to reduce the deficit of the Pension Fund. However, the budget resolution submitted by the government to the parliament shows that the fund’s deficit in the next three years will remain at the level of around 141 billion hryvnias;

– We are being reassured that 8.5-9 million people will receive an increase this year. At the same time, in accordane with the financial calculations provided by the government, only 5.5 million pensioners will receive such increases. The increase of pensions this year will concern only 44% of pensioners, other people will not get a single hryvnia more;

– They say that pensions for new pensioners will grow. However, the length of service assessment coefficient will decrease from 1.35 to 1 starting from 2018;

– We are offered to modernize pensions for current pensioners. This year about 11 billion hryvnias are planned. Next year – 30 billion hryvnias, while in 2019 – slightly less than 16 billion.

Is this double reduction in the number connected with the next presidential and parliamentary elections?

“It is obvious that the government has failed to do its homework,” concludes Roman Semenukha. Consequently, representatives of the Samopomich faction have registered in the parliament an alternative bill on pension provision for Ukrainians. This bill provides for the increase of pensions, the creation of mechanisms to overcome the deficit of the Pension Fund, the creation of an all-Ukrainian registry of all recipients of social payments, including pensions. Only the last initiative alone, says Samopomich MP Tetiana Ostrikova, will save 1.5 billion hryvnias a month.

“Our bill is not aimed at humiliating the government, but at showing where they made mistakes. The government’s bill is repairing of holes in the system. Without introduction of an accumulative system, we will not be able to ensure a decent life for pensioners,” said Tetiana Ostrikova.

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