The economy Ministry does not support introduction of a second phase of pension reform in Ukraine

The Minister of economic development, trade and agriculture of Ukraine Ihor Petrashko said that it did not support the introduction of a second stage of the pension reform providing increase of the load on the wage Fund. He said this during a meeting of the Federation of employers of Ukraine (FEU), UNIAN reports.

Министерство экономики не поддерживает введение второго этапа пенсионной реформы в Украине

According to the Minister, to reform the pension system is necessary, but not at the expense of increasing the load on the wage Fund.

“On the contrary, it is necessary to reduce these things. Because it is our position that we discussed. Reforming the system is necessary, but certainly in any case should not be any additional load,” said Petrashko.

Before that, the head of the Federation of metallurgists of Ukraine Sergey Belenky noted that the transition to the second level of pension reform, which is now actively lobbied by the relevant Committee of the Verkhovna Rada of Ukraine, provides additional tax burden on workers and employers.

“What essentially makes this second level of pension reform? This is a compulsory level, which provides the first stage in addition to the ERUs, the tax to incomes of physical persons about 2% with both workers and employers. This bill No. 2683 Galina Tretyakova, which was approved by the relevant Committee of the Verkhovna Rada,” explained white.

The burden is now on the payroll is 41.5%, and the first phase will increase by 4%, explained white. This equals to around 100 billion hryvnia annually.

“Given that we have no stock market at all how and where these funds will be invested is unknown,” — said the head of the Federation of metallurgists.

On what the Chairman of the Executive Committee of reforms Mikheil Saakashvili responded as follows: “Disaster! On the contrary, it is necessary to reduce”. It was supported by the head of the Ministry of economy. Note that Saakashvili also expressed concern that the lobbying bill can be attributed to such position on the requirements of the IMF.

“There was a recent press release on the website of the Ministry of social policy. They met with an expert on pension issues, the IMF. He is so very tolerant answered the question whether they support the introduction of a second level. Said that in principle we are not against, but Ukraine needs to meet certain conditions. And the Ministry is interpreted as that the IMF supports. Actually does not support — said Belenky. — This is actually two problems – the increase and preservation of these resources. How to protect against inflation, to compensate for the administrative costs of managing these funds. You must earn at least 15% annually in local currency. It’s not easy”.