The Prime Minister announced the launch of accumulative pension system

Despite the fact that the law on accumulative pensions only written but not yet adopted, the Prime Minister of Ukraine Denis Shmyhal announced the launch of accumulative pension system in 2021.

Премьер-министр анонсировал запуск накопительной пенсионной системы

According to “Country”, document prepared by the Ministry of social policy of Ukraine has all chances to go through Parliament.

It is noted that the bill referred to by Prime Minister, will affect only certain categories of Ukrainians – citizens, engaged in heavy manufacturing. In parallel, the Parliament works on a bill on the introduction of a funded pension system for all.

Consider the 6 basic questions that most concern Ukrainians.

Whether to keep regular pension if the person will go to the savings?

Regular pension, which is calculated depending on length of employment, rates of wages and other indicators would be paid without reference to the cumulative. In turn, the funded pension will be in this case a nice bonus.

When can I start to save for retirement?

Private pension funds will start operating from October 2020, and to save pensions will be in 2021.

Who will be able to save the pension?

To participate in the accumulative system will be able Ukrainians under 35, which are divided into 3 groups.

Group # 1: the Employees of enterprises with harmful and severe conditions, full employment. The payment of these workers will be able to get in 50 years.

Group 2: Employees from the preferential list No. 2, plus tractor-operators of farms, operators and construction trucks, workers of textile industries, the drivers of urban passenger transport, milkmaids, pig. They will be able to receive money under the program of payments in 55 years.

Group # 3: “Volunteers” in companies that have concluded collective agreement. For them the accumulation of pensions will be engaged by the employer by payment of ERUs increased from 22% to 25-40%. Payments they also receive 55. But to deduct funds to the account of the employee, the employer will be as long as the employee occupied on harmful manufacture.

When you can start receiving the pension?

The minimum period through which employees can receive contributory pension – after 20 years, i.e. 2040.

Would it be possible to get all the accumulated funds from?

Yes, such an option is prescribed in the law. The man decides to get the entire amount once or monthly.

What guarantees that the accumulated pension is not impaired and it sure paid?

There are no guarantees that the accumulated pension is not inflation will eat and that the chosen private Pension Fund will not disappear with the money. It is assumed that private Pension funds will be the money to invest and get some profit. But in Ukraine, many of them work in zero or even negative. This must be addressed by a separate law on the work of private Pension funds. In the Verkhovna Rada similar projects exist, and they still were not accepted.

However, even after making a hundred percent citizen will not be able to promise him the money after 20 years will not turn into wrappers, as was the case with the Soviet savings Bank.