Ukraine adapts its pension system to EU standards and IMF requirements.

Ukraine plans to start reforming its pension system by July 2025 in accordance with the Memorandum concluded with the International Monetary Fund. This initiative came after Ukraine received a tranche from the IMF at the beginning of the year.

The main goal of the pension reform is to create a stable system that complies with European legislation. The reform aims to simplify the complex system, reduce special pension mechanisms, and lower legislative risks.

It is planned that by the end of March 2025, the government will adopt amendments to the legislation that will come into force immediately and prohibit changes to the pension system through other laws. The main aspect of the reform will be the consolidation of laws and the replacement of various sectoral regulatory documents with a single act.

With the support of the World Bank, the authorities are working to improve the mechanisms to support vulnerable groups of the population and implement a second tier of the pension scheme. Ukraine has also committed not to introduce new special pensions and benefits, as well as not to reduce the retirement age established by law.

Pension Fund of Ukraine

Ukraine also plans to limit the amount of additional payments to certain categories of pensioners and propose a unified approach to the annual increase of all pensions through indexing mechanisms. Particular attention will be paid to improving the targeting of social assistance and preventing abuses in the calculation of pension supplements.

The implementation of changes will be accompanied by an analysis of fiscal and debt sustainability, as well as the identification of the necessary resources for changes to the budget of the Pension Fund of Ukraine.

Earlier, the Cabinet of Ministers of Ukraine amended the procedure for the appointment and payment of pensions and monetary assistance to servicemen.