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Posted On

03
December
2021

MPs propose revised bill on mandatory funded pension system

KYIV. Dec 3 (Interfax-Ukraine) – MPs have submitted to parliament a revised version of bill No. 2683 on the introduction of a mandatory funded pension system, which provides for the payment of mandatory funded contributions from 2023.

As follows from the bill promulgated on the parliamentary website, it is proposed to make citizens under 55 years old who do not receive retirement or seniority pensions as participants in the second tier of the pension system.

According to the revised version of bill No. 2683, funded contributions will be collected from the unified social security contribution, which remains at the same level – 22%.

At the same time, the amount of the contribution will be: 1% of the employee’s salary in 2023, 1.5% – in 2024, 2% – in 2025.

However, in the bill, the MPs also propose to charge an additional contribution at the expense of the state budget on a parity basis. Accordingly, in 2023, an additional contribution will be provided in the amount of 1%, in 2024 – 1.5%, in 2025 – 2% of the base for calculating the funded contribution.

According to the proposals of the MPs, until 2026, funded pension contributions will be paid exclusively to the authorized pension fund to the individual pension account of a participant. From 2026, at the choice of participants, it is proposed to include authorized pension funds in the system, including an authorized fund, as well as authorized banks.

In addition, it is proposed to establish that the authorized fund shall be created by the Cabinet of Ministers. At the same time, pension payments to its participants in the amount recorded in individual pension accounts are guaranteed by the state.

It is proposed that the regulator in the system of compulsory pension savings is the National Securities and Stock Market Commission of Ukraine.