IMF and Ukraine have discussed the introduction of a funded pensions

On 1 June the Minister of social policy Marina Lazebnaya and specialists of the Ministry discussed with the IMF mission the introduction in Ukraine the funded pension system.

МВФ и Украина обсудили введение накопительных пенсий

As reported in the press service of the Cabinet of Ministers of Ukraine, discussion of the pension reform was held in the videoconference mode.

It is noted that the pension expert of the IMF mission to Shaba fehér said that the Fund supports the introduction of a funded pension system in Ukraine, as announced earlier assertion that the IMF is against such reforms, is not true.

Feher also noted that the introduction of a funded pension system is a positive development, but reforms need to create the necessary conditions to be effective, and it didn’t have some time to turn.

During the discussion the participants of the meeting discussed to consider in Parliament a legislative initiative.

The parties also discussed the need for legalization of employment and legalization of wages. This, according to the participants, will help to stabilize the PAYG pension system.

Marina Lazebnaya said that from 2021 it is necessary to return to the practice of indexation of pensions from March 1. Experts of the IMF mission expressed support for this initiative and consider it important.

The Minister also noted the importance of Ukraine’s commitments under ILO Convention No. 102.