OREANDA-NEWS. September 24, 2010. After the tax reform the Government is reforming the pension system, which will be based on the implementation of personalized accounts. Prime Minister of Ukraine Mykola Azarov said this at the program "Exam for power" at First National TV channel.

Mykola Azarov has noted that the pension system reform is now urgent because in Ukraine there is a situation, in which incomes are hidden, and charges to the Pension Fund are minimal. According to him, this is the reason of the annual deficit growth of the Pension Fund, which already exceeds 30 billion UAH. Thus, as the Prime Minister stressed, costs of the Pension Fund are financed from the budget, which does not exist anywhere in the world, except in Ukraine. "But situation exists that we are financing these expenses. Now it becomes a very serious problem and yet does not give our pensioners a decent pension, able to provide old-age security", he said.

Therefore, according to Mykola Azarov, the next step of the Government after the tax reform will be the pension reform, which will be based on implementing a system of personalized accounts and increasing incomes of pensioners. However, as the Head of the Government stressed, this system should be well thought out that both employer and employee were interested to create such personalized accounts. "We must create incentives so that they both are interested to create such personalized accounts and these accounts accumulate resources to be used for economic development in order to put them into production. Money can not lie idle capital within 40 years, they have to work, because this is the only way to bring income to future retirees, the state and directly to those entrepreneurs who will loan these funds", the Prime Minister emphasised and added that we should create such incentives for working citizens to make everyone think about his/her retirement from the very moment when he/she first starts to earn.

At the same time, Mykola Azarov has stressed that today there are attempts to discredit the forthcoming pension reform by bindings it only to retirement age increase: "Now for us the issue of retirement age is not principle. When a person retires - this issue is derived from how we'll develop a system that would motivate person to work longer, better, earn more, save more. "Under this system the man himself will decide when he retires", he added.