10 Million to Receive Higher Pensions

The cabinet passed a resolution Saturday, increasing the minimum pension amount to equal the disabled people’s subsistence level: UAH 284.6. Premier Viktor Yanukovych declared that such pensions woud start being paid already the following week, meaning that over 10 million pensioners would receive 284.6 hryvnias a month, reports Interfax Ukraine. The cabinet resolution “On Raising the Pension Amount” has it that “target-oriented state aid” will be provided to disabled citizens receiving pensions below the subtsistence level (UAH 284). In addition, old- age pensioners with shorter service records than required under the law (25 years for men and 20 years for women) will receive an additional 152 hryvnias. Such target-oriented aid will be also rendered to persons handicapped from birth. Such individuals with Group 1 and Group 2 disability are currently paid 191 and 115 hryvnias, respectively. They will be paid extra to increase their allowances to the subsistence level. Handicapped persons from birth with Group 3 disability will receive an additional 152 hryvnias a month.

First Vice Premier and Finance Minister Mykola Azarov says additions to pensions will not affect subsidies. He told journalists that increasing pensions is a long-term policy of the government, reminding that in 2000, pensions averaged UAH 84 a month, 102 in 2001, 135 in 2002, and 146 in 2003. The first vice premier and finance minister noted that such payments will be made partially at the expense of the pension fund’s proficit, and partially from privatization proceeds, considering that the amount received there exceeds plan — in accordance with Item 109 of the State Budget. Mr. Azarov stressed that the 13.6% GDP increment in eight months and its expected stability point to the availability of resources for such pension payments. His statistics show that tax returns in June had increased by 43.6% compared to the same period last year; in July, when it was 51.8%, and in August, 43.5%. Mr. Azarov refuted the allegation that increasing pensions to the subsistence level at UAH 284.69 would produce a higher inflation rate. It is impossible, considering that the sums involved are insignificant and market supply is abundant in Ukraine, the first vice premier assured those present.