Yatsenyuk's Cabinet of Ministers proposes levying a 15% tax on working pensioners' pensions. The Cabinet of Ministers submitted this bill, No. 2212, "On Amendments to Certain Legislative Acts of Ukraine on Pension Provision," to the Verkhovna Rada.
The bill stipulates that the pension tax for working pensioners will not be levied if the pension is less than 949 UAH per month, i.e., less than the subsistence minimum established for disabled persons.
In addition, the Cabinet of Ministers is initiating a gradual increase by five years of the preferential retirement age for women. The current retirement age for women is 60. They also plan to increase the insurance period required for those eligible for a preferential pension. The insurance period required for a length-of-service pension is planned to be gradually increased by five years.
The Cabinet of Ministers proposes not to pay special pensions to serving members of parliament, civil servants and equivalent individuals, judges, prosecutors, and other individuals entitled to special pensions. An exception is made only for civil servants in law enforcement agencies, the Ministry of Defense, and the Armed Forces of Ukraine, and only during the special period.
If this bill is passed, it will come into force on March 1, 2015.
In December 2014, the Ukrainian Ministry of Finance announced that it planned to take a number of measures to save public funds and would soon introduce pension reform.
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