The Ministry of Social Policy explained that the State Budget Law includes provisions that apply restrictive coefficients to pensions that exceed the national average by four times or more, or exceed 10 minimum living standards for disabled individuals.
The Ministry emphasized that the current system is unfair, with some pensions reaching exorbitant amounts—60,000, 80,000, or even 100,000 hryvnias and more. The restrictions aim to narrow the gap between "special" pensions and general pension payments.
Coefficients will gradually reduce the amounts of pensions that exceed certain threshold values:
Pensions that are above 10 minimum living standards (23,610 hryvnias) but not exceeding 11 minimum living standards (25,971 hryvnias) will have a coefficient of 0.5.
Amounts exceeding 11 minimum living standards but not surpassing 13 (30,693 hryvnias) will be subject to a coefficient of 0.4.
For amounts between 13 minimum living standards and 17 (40,137 hryvnias), the coefficient will be 0.3.
For payments between 17 minimum living standards and 21 minimum living standards (49,581 hryvnias), the coefficient will be 0.2.
Any portion of the pension exceeding 21 minimum living standards (49,581 hryvnias) will be reduced using a coefficient of 0.1.
However, these restrictions will not apply to the pensions of individuals currently serving on the front lines or those who have participated in the defense of Ukraine against Russian aggression since 2014.
The restrictions will only affect the non-insurance part of pensions, such as:
- State supplements and bonuses for certain professions.
- Additional pensions for special merits to Ukraine.
- Targeted financial assistance, indexations, and other additional payments defined by law.
This reform aims to enhance the fairness of the pension system, ensuring a more equitable distribution of state resources while addressing systemic imbalances.