scholarly journals Individual Pension capital: Prospects of implementing

2020 ◽  
Vol 25 (2) ◽  
pp. 170-191
Author(s):  
M.A. Bundin
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Current System ◽  
Consumer Price Index ◽  
Research Information ◽  
Advantages And Disadvantages ◽  
Refusal To Participate ◽  
The Individual ◽  
High Level ◽  
State Pension

Subject. The paper examines the Russian pension system. Individual pension capital is an alternative direction to the current system of non-State pension funding. Objectives. The author is to consider the embedding of the individual pension capital concept. He also aims at analyzing the advantages and disadvantages of the concept. Methods. The study uses the correlation-regression analysis and the analysis of the research information base on the surveyed topic. Results The article allows acknowledging the dependence between the expansion of the incapacitated group of citizens and the consumer price index growth. Besides, it allows to determine the main risks of the proposed concept. Conclusions and Relevance. The main internal risks of the proposed pension reform include: a massive refusal to participate in the new system; the decreasing of participants' contributions tariffs to funds up to 0.1 percent; high-level costs (for funds).

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 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 Problematic aspects of the regulatory and legislative framework for calculating pensions in Ukraine

2019 ◽  
pp. 71-80
Author(s):  
Lina Diakovych
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Legal Framework ◽  
Retirement Age ◽  
European Economic Area ◽  
Defined Contribution ◽  
Average Life Expectancy ◽  
Legislative Framework ◽  
State Pension ◽  
Pension Payments

Introduction. In order to further move towards the European Economic Area, Ukraine needs to take pension reform measures. Pension provision in Ukraine has to be profoundly reformed in terms of regulatory and legislative framework for calculating pensions in Ukraine. What is of particular importance is improving Ukraine’s laws and methods for calculation and pension payments to citizens. Another important focus of the reform agenda is to define categories of people eligible for old-age pensions, disability pensions, and long- service pensions. Purpose. The purpose of the article is to interpret the regulatory and legislative framework for calculating pensions in Ukraine; to describe changes in pension payments before and after the reform was implemented; to highlight ways of improving pension payments in terms of regulations and legislation. Methods. The research methods used in the article include: analysis; comparison; historical method to consider the legislative framework for calculating pensions at different periods of time. Results. The regulatory and legal framework for calculating pensions in Ukraine is a complex system comprising the Constitution of Ukraine, the Laws of Ukraine, the Labour Code of Ukraine, decrees, Presidential decrees, International agreements and laws of the USSR. Some of these regulations and legislation need to be revised and amended in order to bring them in line with contemporary practices and modern standards. It is claimed that since 2017, Ukraine’s government has been implementing the pension reform aimed at relieving the pressure on the working-age population and improving living standards for retired people. In particular, the retirement age has been raised, eligibility criteria for preferential pensions have been revised, and methods for calculating pensions have been changed. The Ministry of Social Policy of Ukraine argues that the new pension reform is expected to enhance social, labour and post-retirement relations, to increase tax revenues through reporting real salaries, to develop a framework of social justice when calculating pensions. The author points out that the regulatory and legislative framework for calculating pensions is outdated at this stage and it requires changes. The considered changes are as follows: the establishment of a working group for entitlement of preferential pensions; the introduction of wage differentials by industries and occupations; the increase of pensions in line with inflation and age; the implementation of notional defined contribution pension system; the introduction of the new Labour Code and Pension Code, which are expected to regulate labour and post-retirement relations and meet modern standards. It is also indicated that continued employment should be enforced by legislation and a system of granting advantages and social security benefits to those who retire later needs to be developed. In terms of legislation, sufficient regard should be given to non-state pension schemes, defined contribution pension systems, and the principle of fairness when it comes to pension entitlements. It is also crucial to adjust pension amounts and retirement age to align with the sustainability ratio and the average life expectancy. Discussion. Further research of regulatory and legal framework for calculating pensions in Ukraine should be focused on the development of the Pension Code and improvement of the existing laws relative to pension calculation and payment. The author also suggests differentiating minimum wages by industries and regions and countering the illicit labour market and campaigning against payments ‘in envelope’, because official wages are the basis for calculating pensions.

Institution of Banking Pension Provisions: Preconditions, Nature, Competition with Traditional Institutions

2015 ◽  
Vol 2015 (2) ◽  
pp. 27-55
Author(s):  
Yuriy Ezrokh
Keyword(s):  
Financial Institutions ◽  
Pension Fund ◽  
Pension System ◽  
Pension Reform ◽  
Banking System ◽  
Pension Funds ◽  
Econometric Analysis ◽  
Traditional Institutions ◽  
State Pension ◽  
Pension Benefits

The article analyzes the pension reform implemented in Russia in 2013–2014, provides the modeling of possible pensions, determines the efficiency boundaries for the use of insurance and savings-insurance schemes offered by the Pension Fund of Russia. The author examines the activities and effectiveness in managing pension savings and reserves from non-state pension funds, especially the system of voluntary savings insurance. The study identifies the challenges faced by these financial institutions, which constrain the development of the Russian pension system. Drawing on logical and econometric analysis the author identifies the competitive opportunity for banks to participate in the Pension Benefits Act, calculates the proposals’ efficiency for future retirees and the banking system as a whole, determines the contribution of the proposed solutions to enhanced competition and more competitive banking environment.

scholarly journals REFORMS OF FINANCING PENSION INSURANCE SYSTEM IN CONDITIONS OF TRANSITION

2017 ◽  
Vol 1 (12) ◽  
pp. 51
Author(s):  
Aleksandar Stojanović
Keyword(s):  
Old Age ◽  
Pension System ◽  
Pension Reform ◽  
Current System ◽  
Intergenerational Solidarity ◽  
Pension Insurance ◽  
Current State ◽  
The Social ◽  
Pension Insurance System

A serious crisis of the pension system has been present in Bosnia and Herzegovina, as well as in many other countries for many years. The current system, which functions on the concept of intergenerational solidarity is financially unsustainable, due to negative demographic and economic movements, as well as reduced number of the employed, and an increase in the number of pensioners. As the main objective of the pension system (the social security of citizens, ie protection against the risk of old age, disability and death) is not fulfilled, it seems that the reform of the pension system is necessary. It is necessary to answer the question: how to transform the pension system of intergenerational solidarity in a system of individual capitalized savings in a socially painless and affordable way?! The implementation of the pension reform aims to establish a long-term sustainable pension system that will provide quality protection from risk, old age, death, disability, and at the same time be consentaneous with economic and demographic movements andensure an adequate level of benefit to citizens in the later age.The aim of the paper is to define the wider, objective picture of the current state of the position of the pension system, as well as providing basic guidelines for the reform and development courses in the future.

scholarly journals Ukraine Pension System and Financial Markets: Conceptualization Problems

2011 ◽  
Author(s):  
Nataliya Rad
Keyword(s):  
Financial Market ◽  
Pension System ◽  
Pension Reform ◽  
Domestic Investment ◽  
Factors Analysis ◽  
Investment Resource ◽  
State Pension ◽  
Social Economic Development ◽  
Relationship Of ◽  
Market Infrastructure

The paper analyzes some aspects of Ukrainian pension system formation. All its three levels taken as a whole are a real source for the formation of domestic investment resources and implementation of their potential through financial market instruments. At the present stage relationship of these two institutes is pronounced in the frameworks of non-state pension funds. Implementation of the accumulative level of pension system has only to accelerate processes at work. Investigation is focused on the problems of integrating pension system investment resource into financial market infrastructure. It is noted that in the current conditions infrastructure of domestic financial market is being formed. Its instruments are developed and are functioning irregularly. However, there exist general problems that require their solution. They are related to insufficient operational capacity and efficiency of financial market regulating mechanism and other factors. Analysis of the quality of implementation of financial market basic macroeconomic function associated with redistribution of pension savings allowed us to make conclusion on the incompatibility of the achieved level of its development with the current needs adjusted for pension reform. Proposals for improvement of the concept of pension system and financial market along the lines of their harmonization and enhancement of the functioning efficiency in the context of social-economic development of Ukraine are worked out.

scholarly journals PRIVATE AND PUBLIC PENSION SYSTEMS WORLWIDE: CASE OF RUSSIA

2016 ◽  
pp. 258-264
Author(s):  
A. V. Pudovkin
Keyword(s):  
Pension System ◽  
Practical Interest ◽  
Pension Systems ◽  
Current State ◽  
The Future ◽  
Private And Public ◽  
System Review ◽  
High Level ◽  
State Pension ◽  
Further Development

The article deals with the Russian pension system and make recommendations for its further development on the basis of international experience. The Russian pension system is in a state of transition. The reform of 2013-2015 is not completed, since in its current state pension system is still characterized by very low replacement rate value at a very high level of government spending. Moratorium on pension accumulation introduced in the course of recent reforms calls into question the future of the mandatory funded pension system. Review of international pension systems formation suggests that the most successful of them are not limited solely to public system, and use a combination of distribution and accumulation units. When choosing between mandatory or voluntary options they are guided by the characteristics of the national economy. Studying the successes and mistakes of world practice of voluntary and mandatory funded pension systems is of great scientific and practical interest, since it can contribute to a more accurate choice of the future path of development of the national pension system.

RISK ASSESSMENT METHODS AND FEATURES OF THEIR USE IN HOUSING CONSTRUCTION FINANCING

2017 ◽  
Author(s):  
Olena Balanska ◽  
◽  
Vasyl Kozyk ◽  
Anna Panchenko ◽  
Volodymyr Melnyk ◽  
...  
Keyword(s):  
Mathematical Modeling ◽  
Risk Assessment ◽  
Assessment Method ◽  
Assessment Model ◽  
Housing Construction ◽  
Advantages And Disadvantages ◽  
Financing Mechanism ◽  
Expert Assessments ◽  
The Individual ◽  
High Level

The article examines modern methods of risk assessment, analyzes their advantages and disadvantages, as well as features of use. In particular, it is determined that most of them are based on the use of statistical data and postulates of probability theory. In the case when obtaining the necessary initial data is difficult, the methods of analogues or expert assessments are used, but they are subjective. In a separate group, we can distinguish methods that are based on the use of mathematical modeling, such as the scenarios method , project sensitivity analysis or game theory. Housing construction is characterized by a high level of risk, and the specifics of the industry complicate its unambiguous assessment and, consequently, its management. Therefore, to effectively manage the risks of financing the housing construction, it is necessary to choose an assessment method that can provide the most accurate result. The amount of risk in housing construction financing directly depends on the chosen financing mechanism, and its total value will consist of the sum of individual risks that arise at different stages of the process, and the amount of which can be estimated using different methods. It is necessary to develop a combined assessment model that not only combines different risks, but also considers them as a single object, the individual parts of which are not only related, but can also cross-influence each other. Such a model will combine economic-statistical, expert methods and methods of mathematical modeling.

Paying for Our Futures: The Political Economy of Pension Reform in the UK

2006 ◽  
Author(s):  
Paul Johnson
Keyword(s):  
Political Economy ◽  
Pension System ◽  
Pension Reform ◽  
Radical Change ◽  
The Political ◽  
Economic Knowledge ◽  
Current State ◽  
The Uk ◽  
State Pension ◽  
The Cost

The development of pension provision in Britain since January 1909, when the first public old-age pension was paid, should be celebrated as one of the greatest achievements of collective action in the twentieth century. This chapter examines what has and has not changed in terms of demographic and economic knowledge of pension systems. It then considers the causes and consequences of this delusional consensus and offers some suggestions about how a more responsible set of political and popular attitudes to pensions might be created, beginning with a fundamental reform to the state pension system. The rationale advanced by the Pensions Commission for maintaining much of the complexity of the current state system is the cost and disruption that would be entailed by radical change. This chapter discusses the political economy of pension reform in Britain, focusing on the link between demography and pensions as well as between pensions and economics.

scholarly journals The Pension System in Ukraine – Some Aspects of Reforming

2021 ◽  
Vol 6 (521) ◽  
pp. 176-183
Author(s):  
M. M. Furdak ◽  
Keyword(s):  
Social Protection ◽  
Pension System ◽  
Pension Reform ◽  
Pension Insurance ◽  
State Institutions ◽  
Accumulation System ◽  
Asset Value ◽  
State Pension ◽  
Pension Payments ◽  
Compulsory State

This publication is aimed at studying the processes and defining the main problems in reforming the pension system of Ukraine. The article analyzes the state of functioning and development of three levels of pension provision at the present stage of socio-economic development of the country. It is determined that only level 1 actually works in Ukraine – the solidarity system of compulsory State-controlled pension insurance, while the mandatory accumulation system has not acquired its development, and the voluntary accumulation system has an extremely low share in the general pension system. Some financial results of the Pension Fund of Ukraine for 2020 and the approved budget for 2021 are analyzed. Substantiated conclusions have been drawn about the problems of the solidarity system, such as: the existing budget deficit of the Fund, which leads to the formation of its debts; low, socially unadapted level of pensions; disparities in the size of pensions assigned in different years. The rating of currently operating non-State pension funds of Ukraine (the third level of pension provision) are analyzed according to the criteria of asset value, number of participants, amounts of pension payments and profitability, as well as the dynamics of some basic indicators of their activity. It is determined that the functioning of the non-State pension system in the country is hampered, in particular, for psychological reasons due to the population’s distrust of non-State institutions. Since the second level of pension provision – the mandatory accumulation system – has not yet started working in the country and taking into account the problems of the first and third levels, a reasonable conclusion has been made on the inhibition of the pension reform in Ukraine and the need to intensify the work on the implementation of all three levels of pension provision in order to achieve a sufficient level of social protection of citizens.

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