Prime Minister Volodymyr Hroysman presented a draft pension reform during the Q&A hour of the Cabinet in the parliament on May 19, UNIAN reports.
According to him, the minimum pension of USD 114 or 189 in Ukraine is not yet possible. "I, too, want to see the minimum pension payment of USD 114 or 189 in our country, but this will lead to the increase of the Pension Fund deficit. Today it is USD 5.3 billion, multiply it by 3, and you'll see that it will be more than 15 billion deficit, which is 40-50 percent of our state budget. This is not possible today, the economy will not allow us doing so", - Hroysman said.
As part of pension reform, retirement age will not be increased. The head of government tells that the payment of pensions will depend on the length of service.
According to him, the pension reform proposed by the government will allow liquidating the Pension Fund deficit within 7-10 years. "This reform gives us an opportunity to build a deficit free budget for the Pension Fund, and within 7-10 years we will reach a zero deficit of the Pension Fund", - Hroysman said.
As previously reported, Prime Minister promised to increase pensions to servicemen from January 1, 2018.