90 times higher than the minimum wage: Expert discusses 'golden pensions' in Ukraine.

Social policy expert Oleg Popenko reveals the problem of inequality in Ukraine's pension system. According to him, there is a critical difference in pension payments between ordinary pensioners and former employees of the judicial system.

Most Ukrainian pensioners receive a minimum pension of 2900 hryvnias, while former judicial system employees receive pensions that are several dozen times higher.

Oleg Popenko: 'Here is a specific example – Bohdan P., a retired Supreme Court judge, receives a pension of 262,000 hryvnias per month. Anzhela Zh., a former judge of the Zhytomyr Appellate Administrative Court, received almost 2 million hryvnias in 2023, which amounts to approximately 166,000 hryvnias per month.'

The problem lies in the fact that former judges are guaranteed a large pension through the 'lifetime maintenance' system. However, for business representatives, pension provision is limited to 20,000 hryvnias, regardless of the amount of their contributions to the Pension Fund.

Popenko suggests solving the problem by suspending 'lifetime maintenance' for former judges and prosecutors and establishing a common maximum of 20,000 hryvnias for all. This would free up additional funds to increase pensions for ordinary pensioners.

Oleg Popenko: 'If we bring the pensions of these three thousand people to a common maximum of 20,000 hryvnias, we will free up 360 million hryvnias monthly. This amount would be enough for an additional payment of 1,000 hryvnias for 360,000 ordinary pensioners.'

Additionally, Popenko believes that an audit of the Pension Fund should be conducted and the legislative framework revised to bring order to the pension system.

Oleg Popenko: 'In the last ten years, not a single audit has been conducted through the Pension Fund. This is unacceptable for an institution upon which the well-being of millions of pensioners depends.'

Popenko believes that redistribution of funds will improve the situation for the most vulnerable pensioners, who are currently below the biological survival threshold.

Oleg Popenko: 'In any normal civilized country, it is impossible for some pensioners to receive 90 times more than others. This requires immediate legislative intervention.'

The expert notes that this problem is exacerbated against the backdrop of a general decline in living standards in the country, as many pensioners cannot meet their basic needs.

It was previously announced that a new pension system would be launched in Ukraine.