Bìznes Inform (Nov 2021)
Development of Private Pension Provision in the Conditions of Reforming the Pension System of Ukraine
Abstract
The efficient functioning of the non-state pension system, which forms the third level of the domestic pension system, is essential for increasing the incomes of citizens of retirement age. The article is aimed at defining the main ways of further development of the non-state pension system in the context of reforming the national pension system, creating favorable conditions for attracting an increasing number of the population to participate in voluntary accumulation pension programs. The article provides an assessment of the status of the non-state pension system in Ukraine, analyzes its main indicators for the last three years. The results of the study showed that today voluntary accumulation pension programs, which form the basis of the system of non-state pension provision, are not popular among the population. The main challenges and factors that hinder its development in our country are determined. The main directions of development of the system of non-state pension provision for the near future are proposed. Particular attention is paid to the expediency of introducing the tax-free voluntary automatic individual savings pension accounts in banks. Among the priorities for improving the functioning of the third level, an important place is to find ways to further develop the non-state pension funds (NSPFs), among which an increase in their reliability is to be highlighted. To assess the reliability of NSPFs as a socio-economic system, it is necessary to analyze such parameters as: presence of public trust in the fund; the fund’s ability to cash payments; financial condition of the fund. It is proved that the improvement of the legislative framework of the third level of the domestic pension system should ensure the protection of property rights and interests of participants in the non-state pension provision, as well as ordering the taxation of participants in the accumulation pension system. An extremely important direction for the further development of the third level of the national pension system is the reduction and optimization of the costs of administering individual pension accounts of participants in the accumulation pension programs.
Keywords
