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"We, the G7 Ambassadors, wish to express our strong support for the pension reform plan proposed by the Ukrainian government, and we call on the Rada to adopt the legislation without delay during its plenary session next week," reads the statement by G7 which was posted on the website of the Italian Embassy in Ukraine.

Pension reform is one of the greatest challenges for any government, the G7 ambassadors said. "And we commend Ukraine's leaders for undertaking this overdue reform with political courage and vision," the statement reads.

According to it, today, pensioners in Ukraine represent more than one fourth of the population; while average pensions are extremely low, Ukraine pension spending – totaling 11% of GDP - is among the highest in Europe.

The ambassadors noted the need to swiftly adopt a pension reform that improves the fairness, predictability, and sustainability of the system.

"We believe that the pension reform proposed by the Government, which was developed in close cooperation with the IMF and World Bank, meets these objectives. The draft law foresees a more transparent and fairer pension calculation formula that more closely ties pension benefits to pension contributions and improves the adequacy of pensions. The reform also establishes a flexible retirement age, linked to the length of the formal career of an individual and incentivizing participation in the system," the statement reads.

The proposed reform will also generate fiscal savings by improving the accounting and sustainability of the Pension Fund and Ukraine's overall state budget, the ambassadors said.

"It is now the responsibility of all the elected parliamentarians to ensure that this reform is approved and implemented, providing a better future for present and future generations of Ukraine,' the statement reads.

FM-TV

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