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 MODELLING THE DYNAMICS OF PENSION CONTRIBUTIONS ACCUMULATION IN NON-GOVERNMENTAL PENSION FUNDS

2018 ◽  
pp. 106-113
Author(s):  
Ruslana Ruska
Keyword(s):  
Pension System ◽  
Financial Burden ◽  
Pension Funds ◽  
State Regulation ◽  
The State ◽  
Actuarial Methods ◽  
State Pension ◽  
Pension Payments ◽  
State Pension Funds ◽  
Individual Accounts

Introduction. Pension provision in any country depends both on the state of the national economy and on the state regulation of social processes. The solidarity pension system in Ukraine does not provide a decent standard of living. Alternative, which allows creating an additional source of pension benefits, which are guaranteed by the state, and reducing the financial burden on the state, are non-state pension funds. Non-state pension funds provide non-state pension provision services by individualizing the accumulation of funds. Their main purpose is to ensure that people receive additional mandatory state pension insurance payments. After analysing different approaches to improving the system of non-state pension funds, the main indicators influencing pension payments are revealed. Purpose. The article aims to model the dynamics of key indicators, on which the payment of pensions in non-state pension funds depends. Methodology. In the process of writing a paper, we have used a number of scientific methods. The system approach is used as one of the main methods of scientific research. The MARSPline module is a component of Data Mining technology in the application package Statistica, techniques of mathematical modelling, in particular approximating polynomials in the process of modelling the dynamics of receipts and payments. The use of actuarial methods helps show how to determine the accumulated amount on individual accounts of participants in non-state pension funds. Results. Different methods and approaches to the evaluation of the activity of non-state pension funds have been analysed. The use of the sixth grade polynomial has made it possible to follow the dynamics of contracting for subsequent periods. It is determined by actuarial methods of accumulated amount on individual pension accounts with different options for contributing and charges interest thereon, allowing depositors to predict the amount of their investments. Using the MARSPline module Statistics program is constructed: a regression model of the dependence of a retirement asset on one person from contributions and investments of investments; Dependence of pension payments on contributions to individual accounts, income from investment of assets, expenses and the number of paid pensions, which allows calculation of future payments to participants, is revealed. The application of the fourth-level approximation polynomial makes it possible to determine the amounts of future retirement benefits in dynamics.

scholarly journals Private pension funds: pragmatics and problems of activity in Ukraine

2021 ◽  
pp. 41
Author(s):  
Zoriana Matsuk
Keyword(s):  
Asset Management ◽  
Pension Fund ◽  
Pension System ◽  
General Structure ◽  
Pension Funds ◽  
Private Pension ◽  
Investment Horizon ◽  
Investment Funds ◽  
Bank Deposits ◽  
State Pension

Introduction. Nowadays, the pension system in Ukraine is being transformed, which necessitates analytical research on the activities of private pension funds, namely, open-ended, identifying problems of their activities and finding ways for further effective development.Methods. In the article author uses methods of analysis and synthesis, graphic research methods, economic and statistical methods for information collection and processing, in particular, sample surveys, groupings, statistical comparisons, trend analysis - in the process of evaluating the activities of private pension funds in Ukraine, and the method of logical generalization in formulating conclusions.Results. Author did an analytical assessment of indicators that characterize both the quantitative side of the activities of private pension funds in Ukraine and the qualitative side of their effectiveness in the domestic financial market. Attention is focused on the peculiarities of the structure of the portfolio of open non-state pension funds and it is concluded that the biggest quote (about 95%) in it belongs to cash on bank deposits and government securities. Author analyzed the indicators of profitability of the five most profitable open pension funds of Ukraine (according to the results of 2020) and their comparative characteristics, both in terms of the level of profitability and with the inflation rate. The tendency to decrease the profitability of investment portfolios during the analyzed period is noted. It was found that the structure of the portfolio of the most profitable open private pension funds is practically the same as the general structure of all pension funds of Ukraine. Discussion. Author proposed to form the portfolio structure of a private pension fund based on the characteristics of its depositors, and for the part of the portfolio with the largest investment horizon include risky instruments: direct investment funds, venture funds and real estate funds. This will allow using part of the pension savings as a long-term investment resource for the modernization of the domestic economy.Prospects for further research necessitate consideration of the main methods used in the process of selecting an asset management company, the administrator of a private pension fund, and assess the effectiveness of its asset management of private pension funds.

scholarly journals Chile's private pension system at 35: impact and lessons

2016 ◽  
Vol 32 (1) ◽  
pp. 57-73 ◽  
Author(s):  
Silvia Borzutzky ◽  
Mark Hyde
Keyword(s):  
Pension Fund ◽  
Pension System ◽  
Transition To Democracy ◽  
The State ◽  
Private Pension ◽  
Pension Scheme ◽  
Defined Contribution ◽  
Funded Pensions ◽  
Massive Accumulation ◽  
Private Pension System

This paper provides an analysis of Chile's 35 year experience with defined contribution, fully funded pensions and argues that this pension approach should not be emulated by countries seeking to reduce the state role in the provision of pensions. The paper shows that 35 years of privatized pensions have led to a massive accumulation and concentration of capital and profits in the hands of the pension fund administrators and insufficient and unequal pensions for the retirees. This legacy of the Pinochet dictatorship has experienced marginal reforms after the transition to democracy. However, those reforms have not altered the system's structure and have augmented the fiscal role as the state attempts to repair some the most damaging outcomes of the private pension scheme.

scholarly journals IMPACT OF GOVERNMENT REGULATION OF PRIVATE PENSION FUNDS DEVELOPMENT IN UKRAINE

2019 ◽  
pp. 165-178
Author(s):  
Dmytro LEONOV
Keyword(s):  
Pension System ◽  
Pension Funds ◽  
State Regulation ◽  
The State ◽  
Financial Resources ◽  
Public Authorities ◽  
National Economic ◽  
Multi Level ◽  
State Pension ◽  
State Pension Funds

Introduction. The development of an effective pension system is one of the cornerstones of forming a socio-economic model of state development for any country. The mechanisms of formation and use of financial resources of the pension system affect all aspects of the functioning of such model. Assignment of tasks of the organization of future provision of pensions only on some one of the parties of this process (state, employer, individual) is historically demonstrated the vulnerability of such “single-level” models. Accordingly, most countries in the world are developing multi-level models of national pension systems to create various organizational forms of retirement provision, to attract as many participants as possible, and to provide the financial resources needed to secure future retirees. The introduction of a multi-level pension system in Ukraine is still continues. Therefore, the study of problems of state regulation of the functioning of new forms of pension provision for the national pension system and the prospects for their development remains relevant. Purpose of the research is to investigate the problematic aspects of the activity of non-state pension funds as a component of the multi-level pension system of Ukraine and determine the prospects for their development, taking into account the influence of the state. Results. The place of the non-state pension funds in the multilevel pension system of Ukraine is defined. Influence and interdependence of activity of NSPF and other elements of an accumulative component of the national pension system is reasonable. Negative aspects of influence of the state on functioning of non-state level of the pension system in general and NSPF in particular and also consequences for development of activity of NSPF slowing down of development by public authorities of the accumulative making pension system of Ukraine are revealed. Conclusions and recommendations on stimulation of structural reform of the national pension system and development of activity in it the non-state pension funds are formulated. Conclusions. During of pension reform in Ukraine the state focuses attention on reforming of a solidary component of the pension system which covers a considerable part of electorate (pensioners) and slows down introduction of mandatory funded pension system as it will not have fast influence on the electorate presented by the working citizens. Development of nonstate level of the pension system in the context of social and economic development by the government is practically not considered and restrains by subjective factors: a voluntary nature, low level of awareness and trust of citizens and the enterprises concerning activity of the nonstate pension funds and also purposeful (or spontaneous) actions / inaction of public authorities which complicate operating conditions of institutions of non-state pension provision. Objective factors that hamper the development of non-state pension provision are the problems of the national economy, caused by the global and national economic crises (high level of shadowing of the economy and wages, outstripping growth of the share of current consumption in monetary incomes of the population, inflation and currency devaluation, reduce the possibility of the diversification of domestic investments and insufficient accumulated pension assets in foreign currency equivalent for effective foreign investment, etc.). Necessary condition of effective influence of state regulation on development of the national pension system is observance of the legislation by public authorities and appropriate performance of the tasks assigned to these bodies, prevention of emergence of legal collisions between rules of various acts of the legislation, full economic grounding of regulatory measures. The leverage of the development of non-state pension funds may be the introduction of a mandatory accumulation level of the pension system with the involvement of non-state pension funds in the maintenance of mandatory retirement savings. It can stimulate additional voluntary pension savings, a legalization of wages of the working citizens, increase in sources of provision of pensions of the citizens and increase in level replacement of labor income in an old age and also formation of a powerful source of investment resources for financing of national economic development.

The impact of adaptability on the competitiveness of non-State pension funds

2021 ◽  
Vol 27 (11) ◽  
pp. 2606-2636
Author(s):  
Ekaterina S. YAROVAYA
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
High Variability ◽  
Current Time ◽  
Factors Affecting ◽  
Existing Problems ◽  
State Pension ◽  
The Impact ◽  
State Pension Funds

Subject. This article deals with the analysis of competitiveness, which is an important component of the strategic management of a non-State pension fund. Objectives. The article aims to study the existing approaches to the analysis of competitiveness, determine the role of the indicator of adaptability of competitiveness of non-State pension funds in conditions of high variability of the external environment, and formulate recommendations for drawing up criteria for the enterprise competitiveness taking into account the specifics of the activities of the funds. Methods. For the study, I used analysis, and the systems, and structural and functional approaches. Results. The article defines and classifies the factors affecting the competitiveness of non-State pension funds in modern market conditions. It substantiates the influence of the indicator of adaptability on the competitiveness of non-State pension funds. The article also proposes an approach to ranking this indicator, which can be applied regardless of the chosen method for assessing the competitiveness of non-State pension funds. Conclusions. The article concludes that the testing of the assessment of the non-State pension fund competitiveness using the author-proposed adaptability indicator helps determine the level of non-State pension fund competitiveness at the current time, track the changes, and identify the existing problems, the causes of their occurrence, and thereby ensure the conditions under which the non-State pension fund has the opportunity to promptly respond and adapt to external changes thus ensuring its stability in the market.

Problems of financial and legal regulation of private pension funds’ activity

2021 ◽  
pp. 162-168
Author(s):  
R. Polischuk
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
State Intervention ◽  
Legal Regulation ◽  
Pension Funds ◽  
Private Pension ◽  
Eu Directive ◽  
National Bank ◽  
State Pension ◽  
State Pension Funds

The problem of lack of interest of the population to participate in the formation of pension savings is one of the key problems of private pension funds. Accounting and registration of various rights, licensing and accreditation of institutions, establishment of norms, quotas and other restrictions, control and supervision, as well as the application of material sanctions and measures of administrative coercion are state regulation of private pension provision. The National Securities and Stock Market Commission, the National Bank of Ukraine, and the Antimonopoly Committee of Ukraine exercise state supervision and control over the activities of non-state pension funds. The current distribution of powers to oversee the activities of private pension funds between regulators is not effective enough. State intervention in the field of private pension funds should be timely, appropriate and limited. The need to invest heavily in setting up an administrator and an asset management company significantly reduces the attractiveness of private pension provision for potential investors, and the over-regulation of the institution under review reduces the level of confidence of ordinary citizens, employers and investors. The lack of components in the management system of non-state pension funds responsible for risk management and internal audit, the purpose of which is to protect against risks and exercise internal control, respectively, is a significant shortcoming of today. Ways to solve the above problems are, in particular: the unification of state regulators of the financial market in Ukraine and the creation of a mega-regulator for the activities of NPFs; abolition of normative legal acts, which in practice have proved their ineffectiveness, in terms of regulating the activities of NPFs, with the simultaneous adoption of new legislation that would “reduce the cost” of the mechanism of creation and operation of the institution of NPFs; implementation of EU Directive 2016/2341 of 14 December 2016 into the legislation of Ukraine regarding the functions of risk management and internal audit of NPFs; introduction of legal norms prohibiting, in particular, the National Bank of Ukraine from interfering in the activities of NPFs in terms of return of their assets by insolvent banks and investment activities, on grounds not expressly provided by the Law of Ukraine “On Non-State Pension Provision” and establishing legal grounds for personal liability persons for such actions.

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.

EXPERIENCE OF EUROPEAN COUNTRIES IN THE FIELD OF ORGANIZATION OF PENSION FUND MANAGEMENT

2017 ◽  
Author(s):  
Andrii Ishchuk ◽  
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
European Countries ◽  
The European Union ◽  
Fund Management ◽  
Association Agreement ◽  
Pension Fund Management ◽  
Foreign Countries ◽  
State Pension ◽  
State Pension Funds

The article is devoted to highlighting the experience of some foreign countries in the field of organization of pension fund management and identifying opportunities for its application in Ukraine. The author proves that in Ukraine the need for pension reform is long overdue, which also includes reforming the public administration system in this area. It is argued that taking into account the foreign experience of some countries, in particular European ones in the field of pension fund management will not only increase the efficiency of reform in Ukraine, but also fulfill a number of international obligations, the main of which are defined by the Association Agreement between Ukraine. , and the European Union, the European Atomic Energy Community and their Member States, of the other part. Based on the analysis of scientific sources, the article summarizes the existing models of pension fund organization in the world and clarifies the features of the organization and types of pension funds in some European countries. In particular, it has been established that in most European countries state and non-state pension funds are formed according to the form of ownership, and the private form of pension funds is a priority.]Based on a study of scientific sources and legislation of foreign countries, the author substantiates that in most European countries the state manages state pension funds and constantly monitors the functioning of non-state funds. The article develops proposals on the possibility of applying the positive experience of some European countries in the field of organization of pension funds for the successful reform of the pension management system in Ukraine. In particular, it is proposed to ensure the organization of reliable and cost-effective long-term private pension funds; to ensure the state's constant control over the functioning of non-state pension funds, as well as to ensure transparency and openness of information about the activities of such funds; to involve employers, trade unions and other participants in social dialogue in the organization and management of such funds and take other measures.

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