A new pension law on legislative measures to ensure pension reforming, which was implemented on 1 October, raises the retirement age to 60 for women and 62 for man who in public service, and increase the insurance qualifying period to 30 years for women and 35 years for men.

 

Besides, this law gradually raises the length of service to 25 years for military personnel. Moreover, each six months of studies in military high schools will qualify as one year of military service.

 

The maximum pension will be limited to ten minimum incomes to equal 7,840 Hryvnia (UAH) and UAH8,000, as from 1 December.

 

The law also decreases the wage ceiling taken into account for calculating public employees' pension benefits from 90 to 80 per cent. However, the maximum pension will be limited to ten minimum incomes.

 

A three year transition period is set for women to opt for an old-age pension either under the old or new pension legislation, which, if the deferred retirement is chosen, provides for a bigger pension. Specifically, if the person defers his/her retirement the pension's increase will be 6 per cent for each of the first five years, and 9 per cent beginning from the sixth year.

 

A lump sum equal to ten times the monthly entitled pension will be granted to medical professionals, teachers and persons employed in the social sector, if they stop their working activities.

 

The pension for public employees will be calculated based on a salary of up to UAH14,400.

 

Parliamentary deputies will no longer enjoy higher pension benefits compared to other citizens. However, they will have the right to retire one and a half years before reaching the retirement age.

 

When calculating a pension benefit, it will be possible to exclude one-tenth part of a period when the person was unemployed and officially registered as unemployed. Until 1 January 2016, the wage for 60 months (five years) before 2000 may be taken into account when calculating the pension.

Source: http://rus.newsru.ua/finance/04aug2011/pens.html; http://rus.newsru.ua/finance/08jul2011/reformaz.html; http://www.apsf.ru/

Implementation date: 10.2011