According to data from the publication "On Pension," the reform proposes to divide pension payments into two components:
The basic pension amounts to 30% of the minimum wage after tax deductions.
The insurance pension is based on earned pension points, the average salary from the previous year, and a fixed coefficient of 30%.
This system aims to provide a more equitable foundation for retirees, regardless of when they retire or how salaries and inflation rates change over time.
Under the proposed system, an individual with 35 years of insurance contributions and an average salary could receive:
Insurance pension: approximately 4292 hryvnias.
Total pension: 6140 hryvnias.
This represents a significant increase compared to the current formula, under which the same retiree would receive around 4745 hryvnias. If the law is passed, pensions for some citizens could rise by more than 20%, amounting to an additional 1395 hryvnias.
However, due to financial constraints, the reform is unlikely to result in immediate widespread increases. The process of implementing these changes may take some time to fully materialize.