The Features of Financing the System of Compulsory State Pension Insurance in the Conditions of Financial Crisis

Abstract

The article covers the issues of financial provision of the system of compulsory State pension insurance in the conditions of financial crisis. The financial status of the solidarity pension system, constituting the first level of the national pension system was analyzed. The article researches the financial failure of the solidarity pension system to confront the challenges of the financial crisis in the society, the absence of mechanisms of prompt response to it. It has been determined that a multilevel pension systems can react more quickly to the manifestation of financial crises. Attention is drawn to the fact that accumulative pension programs have considerable financial potential and thus are an important source of raising pension amounts for citizens of retirement age. The necessity of introduction of the second level of the national pension system, i.e. the compulsory State accumulative pension insurance, has been substantiated. The model of financial provision of the system of compulsory State pension insurance in the conditions of financial crisis has been proposed.

Keywords

• pension reform
• national pension system
• financial crisis
• stabilization fund
• compulsory State accumulative pension insurance
• solidarity pension system