Archive for January 21st, 2011

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A quick return to Pension Reform

January 21, 2011

Well dear readers, quickly returning to the pension reforms, “The pension reform will be carried out according to the following algorithm: we will balance the solidarity system and will introduce the accumulation system on which every person will allocate a certain amount every month for the pension,” according to Vice Prime Minister Serhiy Tihipko.

Much rejoicing from the IMF at yet another promise seemingly being kept and quiet acknowledgement from others within Europe that Ukraine is trying to get its future finances in order……..but……for implementation of the pension reform, according to Tihipko, it is necessary to overcome two problems; to increase the number of the working people and to legalize the wages. It is planned to form the law on the pension reform till March 2011 and to fully implement it till 2013.

What he means is, first it is necessary to move a good proportion of the black economy into at least the grey, if not white economy (increase the number of working people) and then tax them (legalize wages)……just like most countries do when trying to fill the State coffers.

2013 is rather conveniently after the next elections in October 2012.

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