Ukraine is preparing to implement a cumulative pension system. When will these changes take effect?

The Cabinet of Ministers of Ukraine has received for consideration a draft law that aims to introduce a cumulative pension system. Following this, the document will be submitted for a vote to the deputies of the Verkhovna Rada. This was reported by the First Deputy Minister of Social Policy Daria Marchak.

According to Marchak, it is currently unknown when the draft law will be reviewed by parliament. She expressed confidence that the members of parliament will support the document in two readings. It is anticipated that the new pension system will be operational no earlier than 2026.

“We are convinced that this draft law should receive support,” she noted.

The Deputy Minister explained that the draft law was prepared after consultations with trade unions, employers, and international experts. As a result, the document has addressed shortcomings and incorporated suggestions that had previously caused delays in earlier initiatives.

“We have taken into account, I believe, absolutely all significant comments that had previously hindered legislative initiatives,” Marchak emphasized.

It is worth noting that the Ministry of Social Policy assures that the introduction of cumulative pensions will not involve tax increases.

As previously reported by “The Judicial and Legal Gazette”, the pension reform process in Ukraine is expected to begin before July 2025. The Ukrainian authorities plan to submit changes to pension legislation to parliament by the end of March 2025. This is stated in the Memorandum with the IMF.

“The authorities will initiate the pension reform process by July 2025, aiming to introduce a system that is sustainable and compatible with EU law, reduce numerous special pension mechanisms, and diminish legal risks associated with the current complex pension system,” the document states.