OREANDA-NEWS. July 08, 2011. The implementation of the pension reform will solve the problem of deficit of the Pension Fund of Ukraine. This was started by vice Prime Minister - Minister of Social Policy of Ukraine Sergiy Tigipko in an interview.

According to him, the pension system of Ukraine already is on the brink. The situation with the Pension Fund we can save only through the support of the central budget. Sergiy Tigipko said that last year the pension fund deficit was 34 billion UAH, and worrying is the ratio of means of Fund to GDP. Expenditures on pensions in 2009 reached 18.1% of GDP in 2010 - 17.6%. It should not be forgotten that the size of pension contributions is 35% - that was one of the largest rate in Europe.

"We are going to relieve the Pension fund not expenses peculiar to it, in particular surcharges to the minimal pensions to carry out due to the state. Owing to pension reform the economy will receive change of the tendency of a budget deficit of the Pension fund. We shall reduce the general budget deficit – it will be loans less, and we shall not get into debts which push to bankruptcy. The confidence of investors to the state will increase. And people will receive the stable prices, more workplaces, growth of wages and, certainly, stability in payment of pensions. Their payments will constantly increase for percent which will advance a rise in prices", - vice Prime Minister declared.

He noted that today the problem of the Pension Fund has not single solution. According to the official, it must be elaborated a system of decisions that ultimately will give the money to increase pensions. "The bill - is just one of those steps that we have done. In September we plan to pass to the Parliament the laws regarding the legalization of wages and jobs.

In addition, it is necessary in the near future to consider in the second reading a new Labor Code. By early next year it is expected to adopt amendments to the legislation regarding the second pillar of the pension reform with clear definition of its introduction. But first we'll be engage in pension modernization, which will require next year at least 13 billion UAH"- Sergiy Tigipko said.

He noted that the relevant calculations are made. Vice Prime Minister is confident that pension reform will give the results: the situation with means of the Fund annually will improve approximately 2.5-3 billion UAH.

Sergiy Tigipko added that for pension modernization Government is preparing a special law, "The mechanism is processed. If take as a basis for converting the average salary for 2007, which is more than 1 100 UAH, it will give the possibility to increase pensions next year. With this decision 60% of elderly people who receive low pensions, will be able to receive by 100 UAH more monthly."