New Realities for Ukrainian Pensioners: Agreements with IMF.
The updated agreements between Ukraine and the International Monetary Fund (IMF) foresee a future pension reform aimed at reducing costs related to pension provision and simplifying the pension system.
One of the main aspects of the reforms is making legislative changes to eliminate legal uncertainty, which leads to court cases and financial burdens on the budget.
According to the IMF, court decisions made in favor of citizens affect the stability of the Pension Fund.
To avoid additional costs and complications, the IMF and the Ukrainian government agreed on:
- Legislative amendments that will eliminate uncertainties in pension legislation.
- A ban on making changes to the pension system through non-core laws.
- Limiting additional pension payments, especially concerning special pensions.
The Ukrainian authorities also plan to increase the targeting of pension supplements and optimize the indexation mechanism.
In addition, measures will be taken to strengthen the social protection of vulnerable groups with the support of the World Bank.
The reform is aimed at stabilizing the Pension Fund's expenditures, ensuring transparency and fairness in providing pensions and social payments, and preventing the adoption of new pension benefits that increase budget commitments without proper analysis of their impact on the economy.
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