While Ukraine is making additional payments of 600 hryvnias to some categories of pensioners, the people's representatives are proposing to solve the issue radically and change the formula for calculating future pensions. According to the initiator of such a change, this will establish fairer payments, and significantly higher than now.
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People's Deputy of Ukraine Danylo Hetmantsev writes about this in his blog for “NV”. According to the politician's calculations, within the framework of the formula he proposed, the increase could be up to 75%.
So, the essence of the policy proposal boils down to using the actual salary for 1 year instead of the arithmetic average salary for 3 years when calculating. In numbers, this looks like a serious increase in the amount by about 75%.
As an example, Danylo Getmantsev cited an employee who receives a salary at the level of the average salary — 26,499 hryvnias. Provided that there is a retirement experience (32 years) and honest payment of contributions, the current pension calculation formula uses not 26,499 hryvnias, but a conditional “calculated” figure — 15,057 hryvnias (average salary for 2022−2024 for calculating the pension).
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“With the necessary insurance experience (32 years) for retirement by age, instead of 32% of 26.5 thousand (i.e. 8.4 thousand UAH of pension), a person receives only 32% of 15 thousand UAH — about 4.8 thousand UAH of pension, which is less than the actual subsistence minimum for disabled citizens. The pension is almost halved,” the politician claims.
According to Danylo Getmantsev, in EU countries, on average, at the solidarity level of the pension system (without accumulative contributions), the pension is about 40% of the salary. He also criticized the indexation of pension payments, which is carried out in Ukraine in March of each year. The politician called them not reflecting the real decline in purchasing power, but a “manual” process, based on the budget's capabilities.
Meanwhile, some Ukrainians are entitled to triple pensionable service, in which 1 month worked is counted as 3 months at once.
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