scholarly journals Financial sustainability of the state pension system of Ukraine

2018 ◽  
Vol 15 (2) ◽  
pp. 17-28 ◽  
Author(s):  
Olena Horbunova ◽  
Viktoriia Kartseva ◽  
Nataliya Pedchenko ◽  
Myroslav Ostapenko
Keyword(s):  
Financial Management ◽  
Pension Fund ◽  
Pension System ◽  
The State ◽  
Standard Of Living ◽  
Financial Sustainability ◽  
Pension Insurance ◽  
Effective System ◽  
State Pension ◽  
General Standard

The financial situation of the Ukrainian pension system and the problems of its reforming play an important role in determining the general standard of living in the country. The institutional weaknesses in the financial management of the state pension system have led to an unbalanced budget of the Pension Fund of Ukraine and a low standard of living for pensioners. In order to identify the potential for building an effective system of pension insurance, it is necessary to study the modern aspects of financial provision of the Ukrainian pension system. The article defines the economic interrelations between the processes of forming the financial resources of the Pension Fund of Ukraine and the volume and structure of the gross domestic product. In view of this, the financial sustainability of the state pension system of Ukraine has been researched and the determinants of its stable functioning in the years 1999–2017 have been identified, which enables to influence the process of effective formation and use of pension resources and to identify the strategic directions of reforming the pension system.

scholarly journals Legal Regulation of Financing of the Solidarity System of Compulsory State Pension Insurance

2020 ◽  
pp. 249-256
Author(s):  
Iryna MYKHAILOVA
Keyword(s):  
Pension Fund ◽  
Pension System ◽  
Financial Burden ◽  
Legal Regulation ◽  
The State ◽  
Pension Insurance ◽  
State Budget ◽  
State Pension ◽  
Education Science ◽  
Compulsory State

The article analyzes the legal regulation of financing the solidarity system of compulsory state pension insurance. It is established that the main financial burden in the pension system of Ukraine lies at the solidarity level of pension provision. It has been found that the solidarity pension system is unable to properly perform the priorities assigned to it, and is solvent only through financial support from the state, which negatively affects other social spheres: health, culture, education, science, etc. The author analyzes the incomes of the Pension Fund of Ukraine, which are divided into its own funds and the additional funds. Own source revenues are funds received from enterprises, institutions and individuals, as mandatory and voluntary contributions, as well as income from investments and income from financial sanctions for violations of current pension legislation. And additional funds are transferred to the Pension Fund of Ukraine from the State Budget of Ukraine, as well as from state trust funds. It has been established that in connection with the spread of COVID-19 on the territory of Ukraine, the state has provided measures to exempt certain categories of payers of the single social contribution from its payment. It is substantiated that the legally defined sources of budget formation and mechanisms of their accumulation do not contribute to a rapid increase in revenues to the Pension Fund of Ukraine and improve the level of pensions, so it is urgent to unload the solidarity level of mandatory state pension insurance and introduce accumulative level. It has been proved that the reform of the pension system of Ukraine should be aimed at minimizing the degree of dependence of the pension system of Ukraine on the solidarity level of pensions, because in modern conditions the joint responsibility of generations, which was relevant and effective in Soviet times, cannot effectively solve the problem of pensions, taking into account the development of unfavourable trends in demographic processes, rising unemployment, low wages, the formation of shadow payroll funds to distrust people’s pension system in Ukraine as such, as well as legal illiteracy in this area.

scholarly journals NOWADAYS CHALLENGES OF PENSION REFORM

2021 ◽  
Author(s):  
Nataliia Dudchenko
Keyword(s):  
Information Technologies ◽  
Pension Fund ◽  
Pension System ◽  
Pension Reform ◽  
Standard Of Living ◽  
Pension Insurance ◽  
Human Needs ◽  
Advantages And Disadvantages ◽  
Tier System ◽  
State Pension

The paper examines current challenges of the pension reform. The State should guarantee every citizen an adequate standard of living; take care of both present-day and future pensioners. It is noted that the pension reform in Ukraine, which began in 2003, is moving slowly, especially with regard to non-state pension provision; the introduction of a three-tier system is still far away. The number of pensioners is growing year on year, despite the fact that the requirements for the retirement age and insurance experience are increasing, and the amount of pension payments remains, in most cases, extremely small that they fail to provide not only a decent standard of living, but also in most cases the most necessary human needs. The reform of the domestic pension system, which aims to reduce the deficit of the pension fund of Ukraine and ensure its self-sufficiency, is currently taking place by modernizing the methodology for calculating and paying pensions, introducing modern information technologies for managing the functioning of the pension fund of Ukraine, improving national legislation by bringing it closer to the requirements of the European administrative space. This is what will largely determine the depth of changes made within the framework of the pension reform. In scientific circles, the questions about the characteristics, essence and content of the pension system, as well as the very definition of the concept of “pension reform” are still not sufficiently studied, which is also due to the rapid changes in the external environment of the pension system functioning. The article analyzes the current state of the pension system of Ukraine, reveals the essence of the pension reform, and studies the relationship and impact of the financial crisis on the pension system. The prospects for the development of the pension system, the importance of the funded system and the system of non-state pension insurance are substantiated and proved, the main innovations of the pension system, advantages and disadvantages of the pension reform are identified. The analysis of the level of pension provision in Ukraine in comparison with other countries is carried out and the problems of implementing the funded system and the system of non-state pension provision in Ukraine are identified.

scholarly journals DEVELOPMENT OF NON-STATE PENSION FUNDS OF UKRAINE: PROBLEMS AND PERSPECTIVES

2021 ◽  
Author(s):  
Natalya Tataryn ◽  
Kateryna Zakorko ◽  
Sofia Kozar
Keyword(s):  
Pension Fund ◽  
Pension System ◽  
Public Awareness ◽  
Pension Funds ◽  
The State ◽  
Private Pension ◽  
State Pension ◽  
Private Pension System ◽  
State Pension Funds ◽  
Legal Entities

The article considers topical issues of determining the current state of development of the private pension system in Ukraine, and defines the concept of "private pension fund". In economic essence, the system of non-state pension fund is defined as an integral part of the system of accumulative pension provision, based on voluntary participation of individuals and legal entities in the formation of pension savings in order to receive additional pension contributions. Problems that hinder the development of private pension funds, namely the shadowing of wages and labor relations, lack of public awareness, lack of legislation are identified. The functioning of private pension funds in the country depends not only on reforming the existing pension system, but also on the growth of incomes, their de-shadowing and development of the financial market in general. The current pension system is not able to provide the population with the necessary pension assets. This problem can be solved by intensifying the activities of private pension funds. Emphasis is placed on the need and importance of a voluntary private pension system and its role in ensuring the development of the state economy. As world experience shows, in a market economy, the development of private pension funds is one of the important components to ensure effective functioning of the state. Private pension funds are powerful investment investors because they can mobilize additional investment resources. The main purpose of investing pension assets is to preserve the savings of the population. The main indicators of activity of non-state pension funds are analyzed, namely: pension contributions, pension payments, the number of concluded pension contracts, the amount of investment income, etc. Further trends in the development of private pension provision in Ukraine are noted, substantiated the necessary measures to intensify activities in modern economic conditions, proposed recommendations for solving existing problems of institutions. However, in implementing the proposed measures should be remembered participation of both individuals and legal entities.

scholarly journals REASONS AND FEATURES OF IMPLEMENTING BLOCKCHAIN TECHNOLOGY IN THE PENSION SYSTEM OF THE RUSSIAN FEDERATION

2020 ◽  
Vol 30 (3) ◽  
pp. 333-339
Author(s):  
T.G. Volkova
Keyword(s):  
Russian Federation ◽  
Pension System ◽  
Current System ◽  
The State ◽  
Pension Insurance ◽  
Advantages And Disadvantages ◽  
Blockchain Technology ◽  
Registry System ◽  
The Russian Federation ◽  
State Pension

Due to the introduction of the digital economy on the territory of the Russian Federation and the urgency of the problem of implementing the distributed registry system (Blockchain) in various financial spheres, including the system of accounting for pension rights and obligations in the state and non-state pension systems, an attempt was made to assess the principles of implementing the Blockchain mechanism in the system of accounting for pension rights, insurance premiums and pension payments. The current system of centralized registries is based on the full confidence of its participants-clients. In particular, persons insured in the pension system. The non-transparency of the non-state pension component and the periodic changes in the state pension system seriously undermine this trust of citizens. Thus, the system of distributed registries that will solve this problem operates on the principles of transparency, availability for verification, reliability (security of transactions), economy, and trust on the part of customers. The article also considers the problem of formation and distribution of the accumulative pension component. The analysis of its losses and features of transfer to different pension organizations - participants of the state pension insurance system is carried out. It is proposed to solve the problems associated with these processes by implementing a system of distributed registries and smart contracts. In conclusion, the advantages and disadvantages of the distributed registry system are presented, as well as the difficulties of its implementation in the near future in the pension system of the Russian Federation are analyzed.

scholarly journals АДМІНІСТРУВАННЯ ПЕНСІЙНИХ ВНЕСКІВ В КРАЇНАХ – ЧЛЕНАХ ЄВРОПЕЙСЬКОГО СОЮЗУ: ДОСВІД ДЛЯ УКРАЇНИ

2020 ◽  
pp. 3-12
Author(s):  
Єлагін Віктор Павлович ◽  
Мартиненко Наталія Василівна
Keyword(s):  
European Union ◽  
Pension System ◽  
The State ◽  
The European Union ◽  
Pension Insurance ◽  
State Management ◽  
Social Contribution ◽  
Funded Pensions ◽  
State Pension ◽  
Compulsory State

The article analyzes the state management of pension systems for the organization of the exercise of powers to administer pension contributions in the countries − members of the European Union. The models of organization of administration of pension contributions are investigated. As suggestions for priority areas of modernizing the pension system of Ukraine on the example of the experience of countries − members of the European Union, the following are highlighted: attracting employees to participate in financing the pension system; the introduction of mandatory funded pensions with the payment of additional contributions by employees in excess of the unified social contribution to compulsory state pension insurance and the transition to a conditional savings system; differentiation of the unified social contribution rate for compulsory state pension insurance taking into account the state of economic development of the regions (high, medium, below average).

scholarly journals NON-STATE PENSION INSURANCE AS A SUPPLEMENT TO SOLIDAR PENSION SUPPLY

2019 ◽  
pp. 102-109
Author(s):  
O. Boiko
Keyword(s):  
Life Expectancy ◽  
Pension Fund ◽  
Pension System ◽  
Insurance Companies ◽  
Retirement Age ◽  
Pension Insurance ◽  
Average Life Expectancy ◽  
The World ◽  
The Right ◽  
State Pension

The main prerequisites for the emergence of problems of the pension system functioning in Ukraine, namely the solidarity system, are considered in the article. The budget, expenditures and deficit of the Pension Fund of Ukraine in the period 2010-2018 are analyzed. The amount of pensions was calculated taking into account the change in the dollar exchange rate and the inflation rate for the analyzed period and it was proved that the increase in the size of the pension does not lead to its actual growth. Emphasis is placed on the principle of calculation of pensions and attention is paid to the concept of a single social contribution, which has the minimum and maximum possible sum of payment. Based on the data, the author compared the size of the minimum (state) pensions in different countries of the world and in Ukraine and showed that the size of the pension is the lowest among the compared countries. An important aspect of the study was the comparison of average life expectancy. This suggests that the increase in life expectancy is causing the states of the world to raise the retirement age in order to delay the payment of state pensions. Alongside this the alternative to state pensions are private pensions. During the working period, every citizen has the right to make savings in different financial institutions as they have the right to invest. Funds that have been saved and multiplied are the main source of retirement income. Voluntary pension institutions are also envisaged in Ukraine. However, despite the legislative support and the general need to have their own retirement savings, citizens do not actively take the opportunity to create additional pensions. The reasons for this are lack of awareness of the population by the state about the essence of the pension reform, the general economic situation in the country, as well as the lack of financial literacy of the population itself, the unwillingness to take responsibility for their future and the low level of income. On the basis of these data, the need for active involvement of both public administration and citizens in the cumulative system is substantiated. Keywords: retirement age, pension fund, cumulative insurance, life insurance companies.

scholarly journals ANALYSIS OF ECONOMIC-FINANCIAL EXPERIENCE OF THE WORLD COUNTRIES IN THE SYSTEM OF PENSION INSURANCE

2020 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Natalia Koval ◽  
Natalia Priamuhina ◽  
Inna Zhmurko
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Pension Funds ◽  
Standard Of Living ◽  
Main Task ◽  
Pension Insurance ◽  
Insurance System ◽  
The World ◽  
State Pension ◽  
Pension Insurance System

The purpose of this article is to analyze the experience of pension insurance systems in Europe, Asia, North and South America, Australia. The defining feature is that the existing pension insurance system in Ukraine does not perform its main task properly, since the rate of pension, for the most part, does not make it possible to maintain a decent standard of living for current pensioners. After analyzing the implementation of the pension reform in Ukraine, it should be emphasized that during the twelve-year period after the pension reform in the country there remain a number of unresolved issues regarding the pension provision of citizens, namely: aging of the population, which is one of the main factors that prompt the government to a new stage of reforming the pension system; the presence of arrears on contributions to compulsory state pension insurance; lack of proper differentiation of pension payments; shadow wages; lack of sound financial instruments for investing pension assets; unsatisfactory level of legal and financial awareness of the population in matters of pension provision; lack of interest of employers in financing non-state pension programs for employees, lack of confidence in the pension system of non-state pension funds. Methods. In most countries of the world, the problems of the pension system, same to what we have in our country, arose. But due to pension reform, they achieved successful results. Each country chose its own way of building a pension system based on its own demographic and socioeconomic features. However, despite this, the main task of any pension system is to secure from poverty and provide a pension that could guarantee a decent standard of living for a pensioner. Results. Ukraine is trying to build the pension insurance system, drawing on the best practice of the countries studied. Practical implications. It is found that the most effective and successful model of the pension system is considered to be Chilean, since the country has been using cumulative and voluntary pension systems for a long time, which are priority and allow to resolve the pension of their citizens financially, prudent and efficient investing of pension funds with lower rates of public investment income. The same model was taken as the basis in Peru, Argentina, Colombia and Kazakhstan. Value/originality. Analyzing the pension reforms implemented in Eastern Europe, it should be noted that part of the changes was due to the need to protect pensioners from poverty in the context of a sharp decrease in the rate of pensions because of the reduction of total pension contributions and the inability of the state to finance previous pension obligations. The real way to reduce the financial burden on employers and the state in the context of a solidarity pension system was to develop levels II and III of the pension system. It is noteworthy to study the foreign experience of the Eastern European country, such as Poland, which was one of the first to introduce a compulsory funded pension system.

scholarly journals NON-STATE PENSION PROVISION IN THE SYSTEM OF SOCIAL PROTECTION OF THE UKRAINIAN POPULATION

2019 ◽  
pp. 121-138 ◽  
Author(s):  
Iryna PRYIMAK ◽  
Bohdana VYSHYVANA
Keyword(s):  
Financial Institutions ◽  
Life Insurance ◽  
Pension Fund ◽  
Social Protection ◽  
Pension System ◽  
Pension Funds ◽  
Insurance Companies ◽  
Pension Insurance ◽  
State Pension

Introduction. The Ukrainian system of social protection, which is mainly financed by the budget funds and funds of state social insurance funds, is currently unable to provide a decent level of pensions. Involving non-state financial institutions in solving this problem allows to increase the efficiency and flexibility of the system of social protection of the population in old age. Purpose. The purpose of the article is to analyze the situation, outline the problems of development and develop practical recommendations for improving the non-state pension provision as an instrument of social protection for people of retirement age. Results. The essence and structure of the system of the population social protection is uncovered, which unites state and non-state constituents. The dynamics of budget expenditures on social protection and expenditures of the Pension Fund of Ukraine are analyzed. The increasing deficit of the Pension Fund has been revealed, which indicates a profound financial crisis in the pension system. There has been made an evaluation of the development of nonstate pension provision as a mechanism for the formation of additional financial resources for the payment of pensions. It has been established that non-state pension funds (NPFs) are the main financial institutions that provide accumulation of pension assets. The analysis of NPF activity in Ukraine shows a reduction in their number, exceeding the number of NPF participants over the number of contracts concluded, a small amount of contributions from individuals, an increase in retirement benefits, a slight increase in the value of retirement assets, as well as imbalances in the volume of assets by types of NPFs. There has been highlighted the role of life insurance companies in non-state pension provision, which consists in entering into life insurance pension insurance contracts with an NPF participant, calculation and payment of an additional pension. The directions of activity of banking institutions in the system of non-state pension provision regarding the establishment of an NPF, the role of the custodian bank of NPF, maintenance of insurance companies engaged in pension insurance, and the attraction of pension funds through the opening of pension deposit accounts are disclosed. Conclusions. The proposals on the necessity of developing well-balanced rational and effective of socio-economic, normative-legal, organizational management decisions for the preparation and implementation of an effective strategy for the development of non-state pension provision, are substantiated.

scholarly journals Economic and social indicators of solidarity pension insurance in Ukraine

2021 ◽  
pp. 16-22
Author(s):  
Olha BEZPALENKO
Keyword(s):  
Pension Fund ◽  
Social Protection ◽  
Pension System ◽  
Social Indicators ◽  
Employment Policy ◽  
Pension Insurance ◽  
State Budget ◽  
State Pension ◽  
The Impact ◽  
Economic And Social Indicators

Problems of pension provision, in particular, solidarity pension insurance, are under constant concern of scientists, the majority of the working population, pensioners, government officials and other stakeholders. The main issues of discussion are: social justice and insecurity, material security, financial imbalance and insolvency of the pension budget and others. The solution of these issues and the adoption of the appropriate decisions for further reform of the pension system should be based on a detailed assessment of various socio-economic factors. The aim of this work is to substantiate the problem of financial balance of the Pension Fund budget, generalize the impact of economic and social indicators on the level of solidarity pensions in Ukraine, and identify key aspects for solving urgent issues of reforming the national pension system. Ukrainian scientists have studied the following: the analysis of revenues and expenditures of the Pension Fund budget, the impact of certain factors on the development of pension insurance, foreign experience of pension provision and the possibility of its application in the pension system of Ukraine. The system of state pension insurance needs a deeper assessment, outlining the main directions of its further development and solving urgent issues in this area. The paper uses a systematic method to determine the role and place of pensions in social protection of the population; methods of synthesis, analysis, comparison to consider the demographic situation of the population, the number of retirees, the size of pensions, individual indicators of income; factor analysis in order to determine the influence of factors on the development of the solidarity pension system; graphical method for displaying the structure of budget revenues of the Pension Fund of Ukraine and its dynamics; hypothetical-deductive method for formulating conclusions and further prospects for the development of the national pension system. There were proposed the following main directions for solving the problems of solidarity pension insurance: joining the accumulative component to the existing solidarity pension system and their full functioning; reducing budget deficit of the Pension Fund due to the transfer of non-insurance functions of the solidarity system to the State budget; revision of the formula for calculating pensions and establishing closer relationship between insurance contributions and insurance payments; improving employment policy and investment policy in the pension assets management.

scholarly journals FORMATION OF PENSION RIGHTS OF CITIZENS OF THE RUSSIAN FEDERATION IN THE SYSTEM OF COMPULSORY PENSION INSURANCE

2021 ◽  
Vol 42 (1) ◽  
pp. 54-63
Author(s):  
A.L. Safonov ◽  
◽  
M.A. Anyushina ◽  
O. A. Dubrovskaya ◽  
◽  
...  
Keyword(s):  
Old Age ◽  
Russian Federation ◽  
Transition Period ◽  
Pension System ◽  
The State ◽  
Pension Insurance ◽  
Insurance System ◽  
The Russian Federation ◽  
State Pension ◽  
Pension Insurance System

The present paper defines that the changes made to the pension legislation in the process of the ongoing pension reform have seriously modernized the mechanism for the formation of pension rights of persons insured in the compulsory pension insurance system, and have tightened the conditions for assigning old-age pensions. The analysis made it possible to identify the features of the formation of pension rights in terms of insurance and funded pensions for various categories of insured persons. Assessment of the pension rights for 2017 of 27,015 thousand employees of medium and large organizations and individual entrepreneurs insured in the compulsory pension insurance system (CPS), made it possible to conclude that under the current rules for the formation of pension rights to persons insured in the compulsory pension insurance system, in the conditions of the economic crisis prevailing in the Russian Federation, after the end of the transition period in 2024, a significant category of employees will need more than 15 years of insurance experience to be eligible to assign an old-age insurance pension. Starting from 2024, the number of people who have not received the right to an old-age insurance pension and who can expect to receive a social old-age pension only after five years will significantly increase among those who have reached retirement age. Among those retiring, the number of persons who have formed the minimum retirement points will increase; accordingly, in the future, the number of pensioners receiving the minimum pension, the size of which is lower than the pensioner's subsistence minimum, will increase. The authors concluded that to improve the situation with the formation of pension rights, first of all, it is necessary to stabilize the economic situation in the country, to ensure the development of the economy, to increase the income of the insured in the compulsory pension insurance system. In addition, it is necessary to activate the state policy in the field of legalization of labor relations, make changes to the mechanism for the formation of pension rights, linking this mechanism with the real contribution of the employee throughout his labor activity, thereby increasing his interest in the formation of pensions, and for categories of employees with traditional low incomes and those employed in socially significant spheres of activity (for example, education, health care, science) to make the transition to the state pension system.

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