KYIV. Sept 6 (Interfax-Ukraine) – World Bank Country Director for Belarus, Moldova and Ukraine Satu Kahkonen has said that the automated indexation of pensions in Ukraine should be introduced from 2018 and not from 2021 as it is outlined in the existing bill on pension reform proposed by the Ukrainian government to the Verkhovna Rada.
She said that the pension indexation envisaged in the bill should apply to 2019 and 2010, not only from 2021. This is important for transparency and stability of pension payments and for avoiding the reduction of pensions, she said at a round table in Kyiv on Tuesday.
Kahkonen said that one of the goals of the reform is the creation of a system based on rules, not on a biased decision of the government machine.
She said that the goal would not be reached if the indexation in 2019 and 2020 is left to the discretion of authorities.
She believes that the vagueness with the pension indexation in 2019 and 2019 could shatter confidence of citizens to the pension reform and this must be avoided.
As reported, the government’s bill on pension reform says that in 2019-2020 the pensions will be indexed under a separate decision of the government.
