The memorandum on cooperation between Ukraine and the International Monetary Fund in the framework of the new stand-by credit program states that Ukraine should abandon the introduction of the second pillar of pensions (cumulative pensions) in 2019, Hromadske reports.

In addition, the government pledged to cancel the upper limit of accruing a single social contribution for large salaries.

“At the beginning of 2019, we will abolish restrictions on the basis of the calculation of ECV,” the document says.

Also, the government pledged not to carry out tax amnesties, not to replace the corporate income tax with the tax on the withdrawn capital. In addition, Ukraine should postpone the introduction of the second cumulative pillar of pensions.

It should be noted that the cumulative level of the pension system should have been introduced in Ukraine since 2019. It means that each citizen will have his own pension account, which will accumulate funds. From it, Ukrainians should have received pensions in the future. This system operates in most developed countries of the world and allows reducing public spending on pensions, as well it attracts additional investment in the economy.

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