12 March 2011, 11:21
The bill on prevention of deterioration of pension provision of Ukrainian citizens (Reg. No.8042) imposes moratorium until 1 January 2030 on: increase of age limit for the old age pension to be provided for women in order defined by clause 26 of the Law "On Compulsory State Retirement Insurance" and in other normative-legal acts of Ukraine; increase of minimal length of service rate for men and women for all types of pension defined by the Laws "On Retirement Insurance" and "On Compulsory State Retirement Insurance."
The parliamentarians scrutinized one more bill (Reg. No.8042-1) on moratorium on the increase of retirement age for women that imposes moratorium on the increase of age limit for the old age pension to be provided for women until 1 January 2020.
The Committee members admitted that an attempt to solve existing problems in financial situation of the Pension Fund by raising the retirement age for women and increasing the minimal length of service rate for men and women will not settle the Pension Fund deficit, as reduction of expenses in 2011 due to these measures will comprise only UAH 1 billion, while the total shortfall in the Pension Fund in 2012 comprised UAH 34,4 billion.
The People´s Deputies believe that comprehensive economic reforms will facilitate improvement of life standards, enhancement of the medical services and health protection, solution of environmental problems, and improvement of the demographic situation and life duration in Ukraine. This step shall be preceded by improvement of the situation in labour market and willngness of this market to use middle-aged working power. The Committee members emphasized that the important factors on the way to increase the retirement age shall be systemic changes in pension provision, stabilization of solidarity system, implementation of second level of pension insurance, etc.
The Committee recommends the Verkhovna Rada to adopt both bills as a basis and submit a single harmonized bill on prevention of deterioration of pension provision of the Ukrainian citizens to the second reading.