In 2024, pension indexation will take place according to a new mechanism, and thus the payments of the majority of retirees will increase. But for some citizens, the reform means reducing pensions.
The new point system for calculating pensions in Ukraine, which should come into effect in 2024, suggests that payments to some citizens will decrease. We are talking about former officials, said Roksolana Pidlasa, head of the Budget Committee of the Verkhovna Rada.
Important
According to him, the payments of Ukrainians receiving small pensions will increase next year.
“We also plan to reduce the pensions of civil servants who retire and receive astronomical amounts. All this is being done to make the common pension system more fair,” he said.
Pidlasa also noted that the state plans to index payments for all categories of retirees in 2024.
“Pensions, salaries of doctors and teachers, social benefits are protected expenditure items, they are all protected. In addition, the indexation of pensions is planned for March 1. In general, all payments that people receive from the state will be indexed next year,” emphasized Roksolana Pidlasa.
Point-based retirement indexing system: what is it?
On September 22, Prime Minister Denis Shmygal announced that the reform envisages converting contributions to the Pension Fund into points based on the ratio between the person’s salary and the average salary in Ukraine at that time.
That is, if the contributions were paid from a salary equal to the national average, the retiree will receive an average of 12 – 8 minus 10 points. These points will be transferred back to the pension annually, taking into account the current average salary. .
Important
Let us remind you that payments to retirees who have not used a bank account for more than six months may be suspended. To avoid this situation, it is sufficient to make a retirement card transaction at least once every six months. Moreover Focus He said that Ukrainians have the opportunity to increase the size of their pension payments. Some bonuses are calculated automatically, but for others you need to personally contact the Pension Fund of Ukraine.
Source: Focus
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