Cabinet Prepares Reform: Unified Predictable Pension System and Accumulated Pensions

The Cabinet of Ministers of Ukraine has announced the launch of a new pension system that implements a unified predictable approach to the formation of pension payments. The main idea of the reform is to create a clear dependence between the amount of insurance contributions, the duration of their payment, and the size of the future pension.

This is reported by AgroReview

Key Aspects of the Pension Reform

The planned changes involve a gradual abandonment of special pensions and a transition to professional pension programs. One of the main innovations will be the introduction of a mandatory accumulation system, which will complement the solidarity component and provide greater transparency and predictability of payments for citizens.

Among the priority tasks is the improvement of mechanisms for calculating pensions and accounting for pension rights. A separate issue is the adoption of a new law on accumulated pension provision, which is expected to enhance the financial stability of the system and encourage official payment of contributions.

“The goal of the reform is to create a more equitable and financially sustainable system that will encourage official payment of contributions and reduce imbalances in pension provision.”

Government Plans for 2025–2026

By the end of 2025, the government plans to submit a number of draft laws to the Verkhovna Rada concerning:

• the introduction of an accumulated pension system;
• amendments to the current law “On Mandatory State Pension Insurance”;
• improvement of accounting for pension rights and professional programs;
• regulation of pension payments and lifetime monetary maintenance for retired judges.

In 2026, the mechanisms for calculating pensions will be improved. According to preliminary estimates by the government, at least five million citizens will receive pensions of at least 4000 hryvnias.