In Ukraine, the possibility of introducing a cumulative level of the pension system is being discussed, but this step is being postponed until the end of the war.
This is reported by Finway
Pension Reform: Government Plans
The Minister of Social Policy, Family, and National Unity, Denys Uliutin, has reported that the government is preparing a pension reform project. An important component of this reform will be the introduction of a cumulative level of the pension system; however, participation in it will be optional for Ukrainians. At this moment, the relevant document is still being refined and has not yet taken its final form.
Financial Constraints During Martial Law
The former Deputy Head of the Pension Fund of Ukraine, Viktor Kolbun, is convinced that the introduction of a cumulative level is impossible until the end of the war. The main reason is the limited funds that need to be directed towards the defense sector at this time. According to the expert, only after the cessation of hostilities can this issue be revisited, and the allocation of a portion of taxes, for example, 2%, to the cumulative fund by both employees and employers can be considered.
“However, based on the conditions that will be established at the end of the war, it will be appropriate to raise the question of having individuals contribute a portion of their taxes – say, 2% – to the cumulative fund, as well as the employer,” the expert said in a comment to the publication. “Then we can seriously talk about the effective introduction of a cumulative pension system. At the stage of the country’s development, it will be able to bring significant benefits, as these accumulations can be invested in infrastructure, business, and production.”
Thus, the issue of implementing a cumulative pension system directly depends on the end of the war and the restoration of the country’s financial stability. Given the appropriate economic conditions and the cessation of hostilities, the cumulative level of the pension system could become a source of additional investments for the development of the economy, infrastructure, and production.