The Ministry of Social Policy says that contributions to accumulated pensions should be increased to 10% of salary

In order to cover all necessary expenses and save funds in the future, it is necessary to pay at least 8-10% of earnings into the accumulated pension system, since the 3% provided for by the draft law is not enough. This was reported by the Minister of Social Policy, Oksana Zholnovich, Ukrinform reports.

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What is provided by draft law No. 9212

According to Zholnovich, draft law No. 9212 provides for mandatory payment of contributions to the accumulative system by both employers and employees. Initially, mandatory payment is provided only for employers. At the beginning of the reform, the employee can make these contributions voluntarily.

“In the future, this moment will be more clearly regulated. Because the average contribution, which would cover all the necessary expenses and preserve funds and their equivalents for a person, should be equal to at least 8-10% of earnings. The obligatory contribution from employers up to 3% provided today is not enough. It is obvious that the worker himself must contribute with his own means,” said the minister.

In addition, she noted that the introduction of mandatory pension savings is possible only if the appropriate infrastructure is created, which requires at least an hour to set up all the tools.

Read: The draft law on accumulative pensions was registered in the Council

“In order to fully launch the savings system, we need to create a state savings bank, because, according to sociologists, most people trust state banks. Although in the future, both private structures and non-state pension banks will enter the system. That is, people will have a choice where to invest their funds.

But first you need to build digital systems for collecting and administering these funds. This takes at least an hour. So, the adoption of the law and the start of its implementation does not mean that funds will be collected tomorrow. No, first you need to prepare everything,” Zholnovich emphasized.

Let’s remind

Earlier, the Ministry of Finance wrote that the Verkhovna Rada registered draft law No. 9212 on the launch of the accumulative pension system from 2023.

The draft law provides for mandatory participation in the system of accumulative pension provision of all categories of working persons until they reach 55 years of age and mandatory payment of pension contributions by employers for the benefit of such employees.

So, employers will pay 1% in 2023, 1.5% – in 2024, 2% – in 2025 of the amount of employees’ wages, and the state will co-finance such contributions on a parity basis from the state budget.

The accumulative pension system will work in a combined version, until 2026, citizens’ contributions will accumulate in the state pension fund, and from 2026, system participants will be able to choose any authorized non-state pension fund to which contributions will be paid.

Source: Ministry of Finance

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