Ukraine's Social Policy Ministry, together with the Defense Ministry and the Ministry of Internal Affairs, plans to work out solutions to increase pensions for retired military personnel.
That's according to Social Policy Minister Maryna Lazebna who spoke at a traditional Q&A session in the Verkhovna Rada, Ukraine's parliament, on June 4, an UNIAN correspondent reported.
"We will work out solutions, together with the Defense Ministry and the Ministry of Internal Affairs. We have four options for how to settle ecalculation of pensions for [retired] servicemen. They are costly, from UAH 40 billion to 60 billion (US$1.4-2.1 billion), so we will have to negotiate to find resources," Lazebna said.
The minister said that 500,000 retired military personnel are awaiting "fair pensions."
Read also Women's pensions on average 30% lower than men's – OpenDataBot "Had the indexation not been canceled in 2017, the [ex-]servicemen would have already received 30% more," she added.
National budget 2021, pensions
- On December 15, 2020, the Verkhovna Rada, Ukraine's parliament, passed the country's budget for 2021.
- On the same day, Finance Minister Serhiy Marchenko, while commenting on a question from a lawmaker about cutting the Pension Fund's expenses by UAH 8 billion (US$286 million) in preparation for the budget's second reading, said there were enough funds in the 2021 budget to cover pension payments.
- Pensions are to be increased by 11% as of March 1, 2021. In April, payments to pension-age citizens who are still working are to be automatically recalculated, taking into account the amount of salaries or wages, as well as overall duration of service.
- Starting from January 1, 2021, Ukraine has increased pensions for certain categories of pensioners. In particular, pensions have risen by UAH 300 (US$10.73), to UAH 2,400 (US$86), for those who are over 65 years old and whose employment term is 30 years for women and 35 years for men. This rise is pegged to the minimum wage, which will be increased for the second time on December 1, 2021, and accordingly, pensions for that category of pensioners will grow again, from UAH 2,400 (US$86), to UAH 2,600 (US$93).
- On January 27, the Cabinet of Ministers approved a bill on indexing pensions for all pensioners as of 2022. The draft is to be submitted to parliament for consideration.
- On February 17, 2021, the Cabinet approved the budget of the country's Pension Fund for 2021.
- In addition, in 2021, Ukraine will see the minimum pension grow twice (by 9.3% in total) along with the growth of the living wage for persons who have lost their ability to work.
- On March 1, 2021, pensions were automatically indexed in the country, growing by 11%.
- The average surcharge is UAH 308 (US$11), while the minimum one UAH 100 (US$3.56). According to the Pension Fund, the majority of Ukrainian pensioners (about 7 million people) receive a pension within the range of UAH 2,000 (US$71) to UAH 4,000 (US$143). Thus, the indexation surcharge for them stands at UAH 220 (US$7.84) – UAH 440 (US$15.68).