In Ukraine, a point system will be introduced when calculating pensions. This should equalize the amount of payments for people who retired a long time ago and those who did so recently.
This was announced by Prime Minister Denys Shmyhal during a government meeting.
He noted that from March 1, 2024, pensions will be indexed for the second time during the full-scale war in Ukraine.
According to him, next year they plan to make indexation, as well as the entire pay-as-you-go system, fairer, clearer and more transparent.
"A point system will be introduced in the calculation of pensions. It will even out the disparities between pensioners who retired a long time ago and those who did so recently. Accordingly, payments to pensioners who retired earlier will be brought up to the current level," the prime minister said.
How will it work?
Shmyhal explained that every month employed citizens pay a contribution to the pension fund. This contribution will be converted into points in accordance with the ratio between a person's salary and the average salary in Ukraine at that time.
"If you paid contributions from a salary that is average in the country, you get 10 points. Above the national average, you get, for example, 12 or more points, less than the average — 8 points," he said.
These points will then be transferred back to the pension in the same way every year according to the current average wage.
The Prime Minister noted that in this way they want to protect the pay-as-you-go pension system from inflation and devaluation.
We will remind you that earlier we wrote at what age, with what insurance experience they will be able to retire by age Ukrainians 2023.