Ukrainians have been deprived of 'labor pensions', what will pensioners receive instead.

Ukraine has changed its pension provision system, shifting to an insurance model instead of 'labor pensions'. This information was published in the newspaper 'Hvylya'.

The Ukrainian pension system used to be quite complex, as it included several types of pensions, such as old-age pensions, for the disabled, for families who lost their breadwinner, based on lengthy work experience, and social pensions for those who lacked sufficient official employment.

Mechanism of the new pension system

According to the Law No. 1058-IV adopted on July 9, 2023, significant changes have taken place in the Ukrainian pension system. A new structure of pension payments has been established, which includes pensions for old age, disability, and for families that have lost their breadwinner.

However, the main difference of the new system is that the amount of pension payments now depends on the amount of insurance contributions. Modern pensioners must understand that the size of their pensions is formed based on insurance contributions rather than past labor. This means that citizens need to be more attentive to forming their pensions and timely paying insurance contributions.

Compliance with the new legislation

Overall, the new pension legislation in Ukraine complies with international standards in social policy. The transition to an insurance model allows for making the pension provision system more transparent, predictable, and fair.