On August 19, 2026, Ukrainian society is discussing one of the most significant social reforms of the last decade. Danilo Hetmantsev, Head of the Finance Committee of the Verkhovna Rada, outlined the government's ambitious plans to restructure the pension system in an interview with RBC-Ukraine. The key goal, which he identified as "task number one" for the cabinet and a direct directive from the President, is to raise the minimum pension to the level of 6–7 thousand hryvnias. To implement this plan, it is proposed to radically change the calculation formula for benefits and introduce a full-fledged accumulation level.
Changing the Formula and Abolishing "Clan" Privileges
Hetmantsev critically assessed attempts to reform the pension system over the last 15 years, calling them "half-hearted." According to him, the current calculation formula contains mechanisms due to which citizens lose up to 20% of their entitled amount, while indexation is tied to the outdated 2017 base, making payments inadequate to current economic realities. The new model assumes a strict link between the pension amount and the growth of the average wage in the country. This will allow achieving a replacement rate of at least 40%, meaning the pension will constitute a significant portion of a person's former income.
The politician also warned that the reform would be unpopular for certain groups. "It is unpopular only for those who will lose special pensions and 'clan' privileges," the deputy emphasized. This indicates that within the framework of the reform, a review of preferential payments for civil servants and other categories with special status is planned, in favor of equalizing conditions for all citizens.
Mechanics of the Accumulation Level and Protection Against Inflation
The second pillar of the reform is the introduction of an accumulation level. Hetmantsev proposed a specific co-financing model: if an employee transfers 1% of their salary to an accumulation account, the state adds another 1% (total 2%); if the employee pays 2%, the state doubles this amount (total 4%). Such a mechanism is designed to encourage citizens to plan their future in the long term.
Special attention in the draft law is paid to the protection of savings. Non-state pension funds (NPFs) must receive clear guarantees of protection against inflation so that citizens' savings do not depreciate over time. The draft law regulating these issues has already been prepared and is at the discussion stage. This is critically important for restoring public trust in financial institutions after crisis periods.
Investing "Long Money" in Housing Construction
One of Hetmantsev's most innovative proposals was the use of pension fund funds to develop the construction industry. "Long money" attracted for 20–30 years is proposed to be directed to a program to build one million apartments. This solution is designed to solve two problems at once: ensure investment returns for pension funds and solve the housing issue for socially vulnerable layers of the population.
The program provides for the construction of quality housing costing $30,000–$50,000, which will be available to teachers, medical workers, military personnel, and large families. Purchase conditions include an installment plan for 25 years at 3% per annum. Earlier, the Minister of Social Policy Denys Shmyhal confirmed that the reform would be based on a three-level system covering solidarity payments, professional pensions, and personal savings, which fully corresponds to the declared strategy.
