Uliutin advocates for voluntary funded pension system, not mandatory one
Minister of Social Policy, Family and Unity of Ukraine Denys Uliutin states the need to introduce a voluntary funded pension system, not a mandatory one.
"The issue of pension reform is not a new one. It has been around for a long time. It is quite complex on both the expenditure and revenue sides," Uliutin said during the Hour of Questions to the Government in the Verkhovna Rada on Friday.
He noted that the pension system has many distortions that have formed over the years, such as special and preferential pensions and early retirement.
"All of this creates pressure and prevents a decent level of pension provision. This requires a comprehensive change," the minister added.
In particular, it is necessary to change the approach to the solidarity system, replace special pensions with a professional component, and determine who will finance this component. Additionally, a funded part must be introduced.
"It should not be mandatory, since we have no means to finance it. It would put more pressure on public finances in the future. A voluntary funded system would be better," Uliutin emphasized.
When asked which products can be purchased with the minimum pension — UAH 2,361 for working pensioners and UAH 3,038 for the unemployed — the minister replied: "You can't buy anything with this money."
In September 2023, then-Prime Minister Denys Shmyhal announced that a reform of the solidarity pension system would be carried out in 2024.