Will Pension Arrears Increase One and a Half Times on September 1?

The Cabinet of Ministers, in pursuance of the Law of Ukraine «On Increasing Minimal Pensions» dated July 15, 1999, passed on August 19 the resolution on a one-and-a- half-time increment in pensions. To effect this increment, UAH 100 million must be found.

According to Deputy Minister of Labor and Social Policies Olena Horiacha, «the Pension Fund is not yet in full possession of this money, but a number of previously-taken measures showed that it is still possible to raise these funds.» In other words, new taxes will soon be imposed on the industries that still draw at least a small profit. In the nearest future, it will be decided to make amendments to the law of Ukraine «On Compulsory Pension Insurance Fees,» under which it will be obligatory for tobacco producers and suppliers, individuals who decided to sell their real estate, and mobile phone owners to transfer money to the Pension Fund. Special hopes are being pinned on debtor enterprises: they will have to provide in-kind payments to pensioners. For example, Ms. Horiacha said, this year «pensioners have received a UAH 266-million-worth of foodstuffs and fuel.» As to the increased and rather illusory pensions, the law sets a minimum pension at UAH 24 and 90 kopecks. The maximum amount for those who did hazardous work (miners, metallurgists, chemists) is to increase by UAH 13.12, reaching UAH 99.60. Pensions in other categories will go up by UAH 14.84 and reach UAH 74.70. In case the pension does not reach UAH 46 after recalculation (with due account of all increments), a UAH 21.70 target- oriented lump sum will be paid off. The state thus «guarantees» that all employment-related pension earners will be eligible for at least UAH 46 a month.