The impact of adaptability on the competitiveness of non-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

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.

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

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.

Private Pension Funds in Ukraine: The Problems and Prospects for Development

The article analyzes and evaluates the current state, problems and prospects for the development of the non-State pension funds in Ukraine. The issue of introduction of the pension system reform is considered, since pension provision is an important component of the socio-economic strategy of the country. The pension provision should function according to the principles of social justice and insurance principles, namely: all citizens of Ukraine are entitled to pensions, including the condition that those citizens who pay a larger amount of contributions or have more work experience than others have full right to and should receive a higher pension. The main purpose of the third level system is receiving additional pension payments to the mandatory State pension insurance by its participants, the advantage of which is to ensure a high level of return on pension assets compared to the level of inflation and attract investment resources necessary for the modernization of the domestic economy on a long-term basis. Currently, only the first and third levels of the pension system are operating in Ukraine. However, the third level of the domestic pension system still does not work with proper efficiency. The authors identify the problems of introduction of the accumulation system of pension provision in Ukraine (level 2) and the reasons for the inefficiency of the current system of the non-State pension provision (level 3). In order to develop a reliable and efficient system of the non-State pension provision, it is proposed to implement a number of measures that will contribute to economic growth and the effective functioning of the non-State pension funds in our country.

FACTORS OF THE EFFICIENCY OF MANAGING PORTFOLIO PENSION RESERVES OF NON-STATE PENSION FUNDS

The article is devoted to the consideration of approaches and assessment of the efficiency of management of investment portfolios of non-state pension funds. This article is a logical continuation of the previously conducted research on assessing the effectiveness of pension savings management and contains an analysis of the effectiveness of the second component of investment portfolios of non-state pension funds (NPF) — pension reserves. The article examines the factors influencing the efficiency of managing the portfolios of pension reserves of non-state pension funds on the basis of statistical data on 28 NPFs for 2013–2018. The factors chosen were the volumes and growth rates of the funds attracted from pension reserves, the share of pension reserves in the economies of scale of non-state pension funds, the presence of risk strategies (the share of shares and investment units), and the amount of remuneration of management companies. The aim of the study is to assess the influence of the selected factors on the efficiency of managing the portfolio of pension reserves of NPFs based on the construction of econometric models. The construction of one-factor and multi-factor econometric models confirms the absence of dependence of the effectiveness of portfolios of pension reserves of APFs, determined by the Sharpe ratio, on the size of attracted pension reserves per one insured person; from the share occupied by NPFs in the non-state pension market, as well as from remuneration to management companies paid by non-state pension funds. The influence of the chosen investment strategy and the growth rate of pension reserves on the efficiency of managing pension reserves of NPFs is revealed.

ACTIVITIES OF NON-STATE PENSION FUNDS IN THE FIELD OF EARLY NON-STATE PENSION PROVISION

The system of early retirement pensions was inherited from the USSR and every third Russian pensioner receives a preferential pension. It is assigned to metallurgists, oil workers, coal miners, ballerinas, trolleybus drivers, teachers - the lists of early retired pensioners are huge. The conduction of pension reform involved seeking resources within the system itself. To solve the problem of financing preferential pensions, a system of early non-state pension provision was created, implemented through non-state pension funds. However, the existing legislative regulation does not stimulate employers of hazardous and dangerous industries to create corporate pension programs due to the fact that they will not exempt employers from paying additional insurance premiums in favor of employees on preferential lists. As a result, there are no employers in the country who will not only pay wages on time, transfer insurance premiums in a timely manner, but for this category in an increased amount, but will also form additional contributions for the same employees under the early non-state pension system. The non-state pension paid in the frame of this system does not replace the early insurance old-age pension, that is, it does not entail a decrease in federal budget costs. The purpose of this study is to consider the main legal acts and the process of development of legislation on early non-state pension provision. The result of the study is practical proposals for improving the legal framework of the early retirement pension system.