Canada looks to help Ukraine reform pension system using its own as blueprint

"I had the privilege with Sergii to meet a number of pension funds and a number of very important investors to look at what's going to come next," he said, speaking at a press conference with Ukrainian Finance Minister Serhii Marchenko at the start of the G7 meetings in Banff, Alberta.

He said Canada has a lot to offer to Ukraine's recovery, adding that he and Marchenko have met with representatives of some of Canada's largest pension funds, such as Fairfax and others.

"We thought also how we could work together eventually, to share best practices in building a pension system in Ukraine," Champagne said.

G7 financial leaders' meeting agenda

Support for Ukraine is expected to be a topic of discussion at the meeting of the Group of Seven financial leaders in the Canadian mountain resort town.

Champagne said that Canada's support for Ukraine since the start of the war will continue in 2022.

Canada is the rotating host of the G7 this year and will host a series of meetings of financial leaders through Thursday. The meeting is a precursor to the main meeting of heads of state in June.

Ukraine is attending the meeting as a guest.

"The fact that we have Minister Marchenko with us here in Canada as a special guest, is a big signal to the world that we are standing side by side with our Ukrainian friend."

"We are going to hold Russia to account, and we are going to all be part of this reconstruction for Ukraine," Champagne said.

Earlier, G7 officials said that the G7 meeting is also likely to discuss how to attract and mobilize private investment for reconstruction, which the World Bank estimates will require more than $500 billion over a decade.

Pension reform in Ukraine

Attempts to reform the PAYG pension system and introduce funded pensions have been periodically recorded in Ukraine since at least the early 2000s. However, none of them have been successful.

Last year, the Ukrainian Ministry of Social Policy prepared a draft law on Compulsory Accumulative Pension Provision. It was proposed to introduce mandatory payments to state or non-state pension funds for both employees and employers.

It was planned that this draft law would be adopted in the summer of 2025. At the same time, the latest Memorandum with the IMF shows that the reform and the introduction of the funded pillar have been postponed indefinitely.

Canada's pension system is one of the most stable and multi-pillar systems in the world. It is based on a combination of public, private, and individual provision.