Publication date: 26.05.2024
The Parliament Regulated the Issue of Calculation of Insurance Length of Service and Pension Insurance
Introduction
On May 24, 2024, the Verkhovna Rada of Ukraine adopted a law regulating the calculation of insurance length of service and pension benefits. This decision is aimed at increasing transparency and fairness in the social security system, as well as at improving the conditions for receiving pensions.
Basic Provisions of the Law
1. Calculation of Insurance Period
The new law establishes clear rules for calculating insurance length of service, which is the basis for calculating pension benefits. Key changes include:
Definition of Insurance Length of Service: The length of service includes periods during which insurance premiums were paid, as well as separate periods defined by legislation (for example, service in the army, maternity leave, etc.).
Electronic Register: Introduction of a single electronic register of insured persons, which will allow more accurate accounting of periods of insurance experience and provide access to information in real time.
2. Pension Insurance
The law also provides for important changes in the pension system:
Procedure for calculating pensions: A new procedure for calculating pensions is established, which takes into account not only the insurance experience, but also the amount of wages from which insurance contributions were paid.
Increase of Pensions: A mechanism of automatic indexation of pensions is foreseen, which will ensure their compliance with the level of inflation and the increase of the average salary.Flexible Retirement Conditions: The possibility of early retirement for certain categories of citizens, as well as the mechanism of postponing retirement in order to receive increased pension payments in the future, has been introduced.
3. Additional Benefits and Protection
Social Protection: The level of social protection has been increased for vulnerable categories of the population, including persons with disabilities, mothers with many children, and combatants.
Additional Benefits: The law provides for additional benefits for certain categories of pensioners, such as discounts on utility services and free travel on public transport. You may be interested in the following articles: lawyer's consultation, lawyer's consultation, document analysis, legal situation analysis, written consultation, document review by a lawyer, lawyers' documents, lawyer's help online, lawyer online, legal opinion, lawyer's legal opinion, lawyer online.
Purpose and Expected Results
1. Transparency and Justice
The introduction of a single electronic register and clear rules for calculating insurance length of service will contribute to increasing transparency and fairness in the social security system. This will help to avoid errors and abuses when calculating pensions.
2. Raising the Standard of Life of Pensioners
Thanks to the new procedure for calculating pensions and the mechanism of their indexation, pensioners will be able to receive more stable and fair payments, which will contribute to an increase in their standard of living.
3.Social Security
Strengthening social protection and introducing additional benefits for vulnerable categories of the population will help reduce social inequality and ensure decent living conditions for all citizens.
Conclusion
Adoption of the law regulating the calculation of insurance length of service and pension provision is an important step towards improving the social protection system in Ukraine. These changes will improve transparency, fairness and the standard of living of pensioners, providing them with a more stable and dignified future.
