Legal bases of functioning of provision of pension system
DOI:
https://doi.org/10.31548/law2020.02.014Abstract
The paper studies the existing pension system. The legislation regulating its functioning has been analyzed and it defines the main basis and principles. The basic legislative act regulating pension relations defines the Law of Ukraine «On Compulsory State Pension Insurance». In spite of the fact that the law constituted the three-level pension system (the first level – solidary, the second – accumulative, the third – non-state pension provision), the obligatory solidary and to some extent non-state voluntary systems really work in the country.
The Draft Law of Ukraine «On Compulsory Accumulative Pension Provision» has been registered in the Verkhovna Rada of Ukraine. The proposed amounts of accumulative contributions and peculiarities of their payment have been studied. The types of pension payments to which participants will be entitled from the funds of the individual pension account of the accumulative system have been analyzed. The advantages and disadvantages of the accumulative system of compulsory pension provision have been partially studied.
It has been established that the current pension system is unable to ensure a decent level of pensions for the current and future generation. Therefore, despite fears and certain shortcomings, it is necessary to launch an accumulative system of compulsory pension insurance for the proper functioning of the three-level pension system. If it does not begin, in the future it will not be possible to achieve success in the development of the pension system itself, as well as the functioning of both the third and financial stability of the first levels.
Keywords: provision of pension, accumulative system, financing, compulsory insurance, contributions, insurers
References
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