From 1 January 2019 Ukrainians expect new increase of pensions — this time a raise will military retirees receive. Also the authorities promise from April next year to introduce automatic indexation of all pensions depending on inflation and growth of average salaries, as well as transfer to the pension Fund, the right of control over timely and full payment of ERUs. Experts say that only one control will not help, we need measures which will significantly increase revenues to the pension Fund due to the conclusion of the shadow wage, reports “Today”.
As explained by the Minister sotspolitiki Andrey Reva, pensions to people in uniform will increase on average by 25%. According to the Minister, we have about 550 thousand pensioners of the security forces, and their average pension – UAH 4900, so the increase will amount to UAH 1225, which will require additional 8 billion UAH per year. Civil (labour) pensioners, of which more than 11 million people, predicted to rise from April, when the state Statistics will finally count as increased average salary in 2018, will add 50% growth and 50% inflation.
“If inflation this year will be 12%, as projected, then the calculation takes 6%. The wage Fund increased by 25%, is taken into account for 12.5%. In the amount of 18.5 per cent”.
That is, for example, a pension of 3000 UAH can be increased from April from 555 UAH! But for this to the pension Fund (PF) should not 8 billion a year on military retirees, and much more.
Tighten the nuts
To provide such payments, the government approved a bill which proposes, firstly, to increase revenue collection to the pension Fund (single social contribution from employers ERUs), and secondly, to strengthen control over the recipients of pensions. Importantly, the Cabinet wants to take control of the collection of SSC Gospitalniy service and return it in Pensfond, as it was until 2013. As well as give PF the right to impose sanctions against heads of the enterprises and firms of defaulters ERU: to deprive of the right to drive a car, travel abroad, own firearms, to hunt. That is, the same sanctions will be applied to defaulters of the alimony and has already shown its effectiveness. Plus the Fund will have the right to penalize the business for delay in the payment of ERUs, the penalty is 20% of the outstanding amount. According to Reva, the Ukrainian enterprises have PF in excess of 12 billion UAH, that in ways I hope to recover.
Pensioners the hassle
The innovation will add to the problems of pensioners. Most importantly – they will have to reissue a pension certificate with a photo taken where a document is issued, to exclude the possibility of gluing someone else’s photo and leaving the prints of two fingers. Also every six months the pensioner should come to the PF office or the Bank, which puts him a pension, and personally fill out a registration card. This measure is directed against fraudsters who receive pensions for the dead, and against pensioners, allegedly registered in Ukraine, but temporarily residing in the controlled territories, as now may be retired for three years to issue a power of attorney to receive a pension. Recipients of pensions in hand, and not on the card, the money will be delivered only at the place of registration (residence permit). Lawyer Vladimir Stolitny says that in the presence of electronic registers to force seniors to celebrate silly and difficult for the elderly, including many with limited mobility:
“We have not so many people receive pensions by proxy, and if the PF to provide access to the register of the deceased, then the problem is easily solved. The same applies to those who regularly crosses the border with the occupied territories”.
Experts: “white salary”
Economists doubt the effectiveness of the proposed measures.
“It is proposed to create a parallel structure of GFS in Pensford only for administration of ERUs, as now such specialists in the PF there, told us the Executive Director of the Economic discussion club Oleg Pendzin. But it is unlikely to give the effect of: if you can not cope GFS, and PF is unlikely to do more“.
But measures to impose sanctions against heads of the enterprises, which hold ERUs, expert support.
The President Ukranalittsentra Alexander Ohrimenko believes that the collected additional 12-15 billion a year will be of little help PF deficit which is over 140 billion.
“Tough measures are needed for the whitening of wages. According to the Ministry, after the increase in the minimum wage in 2017 to RS 3200 only in Kiev, the number of Directors that receive a minimum of two years doubled to 84 thousand. SFS should strengthen inspections of such firms, it will give much better results”.
We will remind, Ukrainians showed the new terms of monetization of subsidies.
As previously reported, “Know.ia” the Ukrainians can turn off the gas.
Also “Know.Eeyore” wrote about a possible increase in utility tariffs.