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Automatically translated version. May contain inaccuracies compared to the original.
The government plans to switch to a new pension system model as early as 2027, MP Olha Vasylevska-Smahliuk said on 18 August. The Ministry of Social Policy has prepared pension reform proposals several times already, and now the Cabinet’s Program of Activities records a shift from the current fragmented system to a new four-component model. The MP explained what will be included in the updated pension provision structure. She also explained the mechanism for automatically enrolling workers in savings, which already operates in the United Kingdom and Poland.
MP Olha Vasylevska-Smahliuk wrote about the government’s plans on her Telegram channel. According to her, the government plans to implement the new model in 2027, and the new system will contain four components instead of the current disparate arrangement.
The MP listed what the updated pension system will consist of:
basic age-related protection;
an insurance pension, the amount of which will depend on the contributions paid;
occupational pension mechanisms;
voluntary pension savings with automatic enrollment (auto-enrollment).
Alongside basic provision and the insurance pension, occupational pension programs and a voluntary savings mechanism should operate. Vasylevska-Smahliuk separately explained the principle of auto-enrollment into the funded system.
"Auto-enrollment means that a worker is automatically included in the funded system without a separate application on their part, and payroll deductions begin by default," MP Olha Vasylevska-Smahliuk wrote on her Telegram channel.
The MP added that it is possible to opt out of the system, but a separate application will have to be submitted for that. According to her, this approach is currently used in the United Kingdom and Poland, and it significantly increases coverage of the funded system compared with a model where a person must initiate enrollment themselves.
What to expect from the new pension model
Earlier the Ministry of Social Policy already outlined details of the upcoming reform: the bill envisions a three-tier system with a basic state payment, an insurance component, and a funded level. The proposed starting amount of the basic payment was discussed at 3000 UAH, and the minimum pension at 6000 UAH; however, this figure disappeared from the final draft of the government program.
Special attention is being given to special pensions for prosecutors, judges, and security service personnel. Instead of the current model, the plan is to introduce occupational pension insurance with a separate account for each employee, to which the employer will pay additional contributions on top of the single social contribution.
Earlier Informator reported that the Ministry of Social Policy promised equal retirement rights regardless of the year of retirement, as well as efforts to combat ageism and encourage declared wages. At that time, Deputy Minister of Social Policy Daryna Marchak explained that the system should equalize pension amounts for people with the same rights who retire in different years.
We also wrote that as early as 2024 a pension reform was supposed to take place in Ukraine, which foreseen introducing a points system to level out disparities between pensioners from different retirement years. Then Prime Minister Denys Shmyhal promised a "fair indexation" of pensions regardless of the time of retirement.
Document: PDF proof of the original version of the news item "Уряд вчерговий раз планує пенсійну реформу - подробиці". It records the publication content at the moment of the first scan, the preservation date and the source: Informator.
