A major reform is being prepared in Ukraine that could revolutionize the concept of pension provision for military personnel. The Ministry of Social Policy, Family and Unity proposes moving away from the rigid service tenure requirements that currently leave many mobilized citizens in a dead end. The initiative is to grant the right to form a professional contributory pension even after just one year of service.
The Problem of "Lost" Service Tenure
Denis Yulyutin, Minister of Social Policy, Family and Unity, highlighted the main pain point of the current system in an interview with ArmyInform. Today, legislation requires 25 years of service to receive a special pension. This creates an unfair situation for citizens who worked in civilian professions before the full-scale invasion and then went to the front.
Currently, a person who has gone through the fire and served for 2–3 years risks being left without pension guarantees because they will not accumulate the necessary tenure. The Minister emphasizes that the new model must correct this inequality: every year of service will form the right to a professional pension.
The Mechanics of Accumulation
The essence of the reform is the transition to a contributory model. The professional pension will work on the principle of "your own wallet." If a person serves or works for a year in a profession where additional contributions are provided, these funds are retained by them. They do not expire upon changing fields of activity or dismissal.
An important aspect is financing. In the new model, professional pensions will be formed not at the expense of direct deductions from the state budget, but thanks to additional savings made by employers. These funds will be tied to a specific person serving in the relevant field.
State Support for Combatants
Alongside the pension reform, the ministry is considering the introduction of a state allowance for combatants. Yulyutin admits that the current combatant allowance is too low and does not fulfill its social function. It is planned to increase payments specifically taking into account actual combat service tenure.
At the same time, the reform will not affect the rights of current pensioners. Those who already receive special pensions will not lose their payments. Service periods before the launch of the reform will be counted according to the old rules, and after — according to the new ones. For those who have already accumulated more than half of the necessary tenure, the possibility of retiring under the current system will be preserved.
Timelines and Transition Period
The bill launching these changes is in the finalization stage. The ministry is completing financial calculations to guarantee the sustainability of the system in the long term. Estimates suggest that the transition period may take about 12–13 years, however, the launch of the reform is planned for the current year.
The government is also working on a decree regarding additional payments. Although the document has not yet been adopted, specific figures are already being discussed: a payment of 100,000 hryvnias per month for participation in combat operations and 40,000 hryvnias per day for stormtroopers is proposed.