scholarly journals Challenges and Perspectives of Development of Private Pension Funds in Serbia

2019 ◽  
Vol 52 (1) ◽  
pp. 69-80
Author(s):  
Marija Đekić ◽  
Miloš Nikolić ◽  
Tamara Vesić
Keyword(s):  
Pension System ◽  
Private Insurance ◽  
Pension Funds ◽  
Private Pension ◽  
Successful Implementation ◽  
Pension Insurance ◽  
The World Bank ◽  
Investment Opportunities ◽  
Further Development ◽  
Compulsory State

Following the successful implementation of the Chilean reform, the World Bank proposed a solution from three pillars of the pension system: compulsory state, compulsory private and voluntary private pension insurance. Serbia, like many other developed and undeveloped countries, has only adopted the third pillar, in addition to the already existing state. The introduction of compulsory private insurance was also considered, however, there are no market conditions or financial possibilities for achieving this idea. Voluntary pension funds in Serbia were introduced by the 2005 laws. There are seven voluntary pension funds in Serbia, managed by four management companies. So far, the funds have achieved positive yields, although due to limited investment opportunities, these rates were very modest. In addition to limited investment opportunities, one of the problems is the accumulation of funds. The problem of population savings has many sides, and it is certain that some of the causes can be sought in bad experiences from the past. The paper analyzes the limitations and possibilities for further development of private pension funds.

scholarly journals REFORMING THE PENSION SYSTEM OF UKRAINE TAKING INTO ACCOUNT THE EXPERIENCE OF POLAND

2021 ◽  
pp. 128-141
Author(s):  
T. Kravchenko ◽  
◽  
O. Moroz ◽  
Keyword(s):  
Banking Sector ◽  
Pension System ◽  
Pension Reform ◽  
Private Insurance ◽  
Private Pension ◽  
Insurance Companies ◽  
Pension Insurance ◽  
Financial Condition ◽  
Development Scenarios ◽  
Investment Returns

The state, stages of formation and problems of the pension system of Ukraine are considered. The main directions of pension reform are identified, taking into account the experience of Poland. The attitude of citizens to the current state and readiness for changes in the pension system of Ukraine is analyzed. The survey showed that the respondents are ready and support the reform of the Ukrainian pension system and the introduction of the accumulative component, but there is a big problem in the form of distrust of private pension funds and private insurance companies. It is determined that the pension system is no longer able to withstand the load and requires changes in the near future. Analysis of the pension system has shown that it has always been formed taking into account only short-term objectives, which makes it ineffective in strategic terms. It is substantiated that without the growth of the welfare of the population, the de-shadowing of the labor market and the introduction of accumulative pension insurance, the financial condition of the Ukrainian solidarity pension system will deteriorate every year. However, along with the expected positive effect of the introduction of the accumulative component in Ukraine, there are also risks, as fluctuations and instability of the domestic economy may lead to deterioration of the banking sector and insurance companies, which will reduce investment returns in the system or even partial loss of pension savings. Two development scenarios (pessimistic and optimistic) for the pension system of Poland and Ukraine are analyzed. It is determined that for the successful reform of the old solidarity system of Ukraine into a cumulative one it is necessary to: ensure sustainable GDP growth; create a centralized information system for collecting contributions; to personify and register all insured persons in the Pension Fund; identify the needs for qualified personnel, equipment and funds needed to meet the requirements of the new system; provide absolutely all conditions for the effective implementation of the private pension system.

Private Pension Funds' Problems

2004 ◽  
pp. 123-131
Author(s):  
O. Khmyz
Keyword(s):  
Financial Markets ◽  
Pension System ◽  
Pension Funds ◽  
Private Pension ◽  
System Reform ◽  
Financial Assets ◽  
The Past ◽  
Funds Management ◽  
Further Development

Private pension funds in Russia have been growing in number dramatically over the past few years. The increasing importance of private pension funds as holders of financial assets means that their impact on the functioning of financial markets is steadily growing. The article discusses the range of factors that can stimulate further development of the pension system reform — principles of private professional pensions' regulation as well as the structure and mechanisms of pension funds' management.

scholarly journals ANALYSIS AND PROSPECTS OF PRIVATE PENSION FUNDS IN RUSSIA

2014 ◽  
pp. 82-87
Author(s):  
A. Pudovkin
Keyword(s):  
Growth Factors ◽  
Pension System ◽  
Pension Reform ◽  
Pension Funds ◽  
Private Pension ◽  
Pension Insurance ◽  
Pension Schemes ◽  
The Russian Federation ◽  
Key Drivers ◽  
Near Future

The article under the title "Analysis and prospects of private pension funds in Russia" deals with the pension system of the Russian Federation and the problems that the private pension funds will be facing with the introduction of the new pension reform. In addition, the article also deeply studies the private pension funds market in Russia. The study presented in the article also aims to thoroughly analyze the key drivers of the recent boom of the private pension funds sector. In addition, the study also reflects on the prospects of development of private pension funds and the major growth factors for the future taking into considerations the latest pension reform. It is exactly the pension capital that constitutes the major role to the growth of the the private pension funds market. In addition, taking into account the latest developments in the pension legislature, which imply no pension capital available to the private pension funds for the period 2014-2015 years, it is easy to foresee that the only growth factor left is pension reserves. Overall it obviously means that private pension funds should develop private pension schemes. Moreover, private pension insurance may become the major driver of the whole pension industry in the near future.

Private Pension Funds in Hungary

2005 ◽  
Vol 55 (3) ◽  
pp. 287-315 ◽  
Author(s):  
Ichiro Iwasaki ◽  
Kazuko Sato
Keyword(s):  
Trade Unions ◽  
Pension System ◽  
Pension Reform ◽  
Legal Framework ◽  
Pension Funds ◽  
Negative Influence ◽  
Private Pension ◽  
Pension Scheme ◽  
Special Interest Groups ◽  
Governance Reform

The new pension system launched in Hungary in 1998 is epoch-making for having introduced a mandatory private pension scheme (MPPS). However, the political decision-making on pension reform and the scheme operations have been greatly influenced by conflicts of interests among ministries, political conflicts between parties, and the presence of special interest groups, including trade unions and financial institutions. This situation may have had a certain negative influence on the legal framework of the MPPS and on the management performance of private pension funds. In order for the MPPS to be sustainable in the future and to make insurance beneficiary profits a top priority, the corporate governance reform of pension funds and reinforcement of the monitoring system over them, and political neutralisation of the public pension system are necessary.

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 COMPREHENSIVE ANALYSIS OF REGULATORY IMPACTS ON PERFORMANCE OF SLOVAK PENSION FUNDS

2021 ◽  
Vol 22 (3) ◽  
pp. 735-756
Author(s):  
Mário Papík ◽  
Lenka Papíková
Keyword(s):  
Pension System ◽  
Factor Model ◽  
Five Factor Model ◽  
Pension Funds ◽  
Private Pension ◽  
Government Interventions ◽  
Regulatory Interventions ◽  
Market Factors ◽  
Fama And French ◽  
Sustainability Challenges

Standard pay-as-you-go pension system is facing long-term and short-term sustainability challenges in several countries. Possible replacement of standard pension system might be in a form of private pension savings. Private pension savings are meaningful only if they provide sufficiently high returns. The aim of this manuscript is to analyse performance of Slovak pension funds and factors impacting this performance, especially government interventions. This manuscript is focused on enhanced Carhart four-factor model, Bollen and Busse four-factor model, and Fama and French five-factor model based on 23 pension funds from Slovakia from period starting September 2012 and ending September 2019. These models have been extended by other variables describing bond market factors and impact of regulatory interventions on performance of pension funds. Results of analysis have proved that legislative interventions have impact on performance of analysed pension funds. Each legislative intervention has caused average daily yield to decrease by about 0.01% to 0.03%. Findings described in this manuscript can contribute to better knowledge of pension funds for both contributors who need to decide whether to participate in the second pillar or not, as well as for regulators who develop legislation measurements in this area.

scholarly journals Tax Incentives as a Part of Governments’ Applied Mechanisms for the Third Pension Pillar in Estonia, Latvia, and Lithuania

2020 ◽  
Vol 1 (14) ◽  
pp. 146-155
Author(s):  
Evija Dundure ◽  
Biruta Sloka
Keyword(s):  
Pension System ◽  
Tax Incentives ◽  
Pension Funds ◽  
Private Pension ◽  
Pension Scheme ◽  
Pension Systems ◽  
The Third ◽  
Baltic Countries ◽  
Tax Exempt ◽  
The Baltic

The main objective of the improvements to public pension systems is to create a balanced three-pillar pension structure and increase public accountability for pension capital formation. Most pension systems are based on the first two pension system pillars – mandatory contributions in the state compulsory unfunded pension scheme and the state-funded or accumulated pension scheme in pension funds. However, the pension level adequacy has been reached by adding the third pension system pillar - voluntary investments in private pension funds. Governments are private pension system policymakers by defining a legal framework and providing tax incentives for voluntary investments for retirement. In the Baltic countries – Estonia, Latvia, and Lithuania, the third pension pillar is at an early stage of its development, and as such, should be particularly stimulated. This research focuses on the tax incentives utilized by the governments of Estonia, Latvia, and Lithuania and aims to ascertain and compare the effectiveness of the tax incentive policies applied to the third pension pillar by the governments of the three Baltic countries. It questions the effectiveness of the incentive mechanisms the governments of the Baltic countries have chosen, which include involving most of the population in the private pension saving programs. The research methods used are the analysis of scientific publications on the previously conducted research, acts of legislation of Baltic countries, as well as an analytical study of statistical data on the development of voluntary pension fund contributions in Estonia, Latvia, and Lithuania. The research results indicate that the tax incentives are the mechanism to motivate the population to create savings in the third pension pillar in all three Baltic countries. However, Latvia being the country with the highest coverage rate of the third pension pillar has the most unfavorable conditions for creating savings. There are no tax incentives on returns on investment and tax-exempt withdrawals in Latvia, while Estonia and Lithuania have all positions tax-exempt. A more detailed analysis of the tax incentives at the contribution stage explains the underdeveloped third pension pillar in Lithuania, as Lithuanian personal income tax reliefs are targeted at low or medium wages or gross income. The research has highlighted the impact of tax incentives on voluntary savings for retirement in the three Baltic countries, opening a discussion about the effectiveness of governments' applied mechanisms.

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 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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