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Ukrainians will be offered a defined contribution pension system

The Ukrainian Cabinet of Ministers offers the Verkhovna Rada to introduce a Defined Contribution Professional Pension System (DCPPS) for certain categories of workers under the age of 35 who are entitled to preferential pension benefits, Forinshurer reports.
Ukrainians will be offered a defined contribution pension system

The bill provides for the three following professional pension programs:

Program #1 gives the right to receive pension payments upon attainment of the age of 50 having a 25-year pension insurance record with 10 years of unhealthy trade work (the so-called list No. 1) in men and a 20-year pension insurance record with 7.5 years of unhealthy trade work in women;

Program #2 entitles to receive pension upon attainment of the age of 55  having at least a 30-year pension insurance record with over 12.5 years at work on the #2 list in men and a 25-year pension insurance record with over 10 years at work on the #1 and #2 list in women.

Program #3 gives the opportunity to voluntarily join the DCPPS under terms specified in collective agreements and to receive pension payments upon reaching 55 years of age.

The source of financing of pay-as-you-go pension system (until the full transition to payments from the DCPPS) and the formation of retirement assets in the accumulative professional system will be employers' insurance premiums to be paid by increasing the rate of SSST for compulsory retirement insurance to replace the mechanism for reimbursing the costs of payment and delivery of preferential pensions.

Thus, under the program No. 1, employers will have to pay another 15% in addition to 22% of SSST, program No. 2 - 7%, and program No.3 - from 3% as agreed with the employees.

According to the bill, the Pension Fund of Ukraine will be sending the insurance premiums received for the participants of the DCPPS to private pension funds (PPF). The system participants will be able to choose a PPF independently.

Source: https://forinsurer.com/news/20/11/19/38758

Photos are from open sources.

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