OREANDA-NEWS. December 15, 2010. The Prime Minister of Ukraine Mykola Azarov is convinced that the pension reform in Ukraine is required to be made, but must be explained to the public. The Head of the Government said that introducing the new head of the Ministry of Social Policy of Ukraine – Vice Prime Minister - Minister for Social Policy Sergiy Tigipko.

"There is a serious task in front of your Ministry and Sergiy Leonidovich: explanatory and consultative work on this reform as for citizens so for social partners, trade unions and employers, military personnel and all others whom it touches" - Mykola Azarov said.

Mykola Azarov reminded that pension reform was launched by the Government of Ukraine led by Viktor Yanukovych in 2003. "Unfortunately, since that time no one touched this issue" – the Prime Minister of Ukraine said.

"We cannot escape the pension reforms, because Ukraine today may be the last country in the world with the outdated pension system, which deprives our retirees a chance for decent pensions. I would like to emphasize that we start the pension reform not to reduce the Pension Fund deficit. Yes, the problem of deficit does exist, but not such that we could not solve it. In 3-4 years will have non-deficit functioning of the State Pension Fund. Therefore, the deficit is not the main problem. The main thing is to make the pension system modern and fair"- Mykola Azarov said.

The Prime Minister reminded that during Yulia Tymoshenko government the pension system has undergone major imbalances associated with excessive payments to high rank officials.

"Do we have the right to keep that distorted system whereby a person who worked 40 years, has 750 UAH pension, and another one has couple of years of work on good position and receives 40 thousand pension? What is that – a normal system? No, this system is completely strange and twisted. Till 2004 this disparity in pensions did not exist. It appeared after Ms Tymoshenko has imposed excessive payments to officials, prosecutors, judges and others. As a result disparities have been increased, and 10% of pension fund was for paying these exorbitant pensions" - Mykola Azarov said, summing up at the same time that pension reform is overdue, for the Government, in particular, has to correct imbalances in the name of social justice.