Экономические науки/3.Финансовые отношения

Posternikova О. О.

Donetsk National University of Economics and Trade

named after Mikhail Tugan-Baranovsky

PROBLEMS OF FINANCING PENCION INSURANCE

Pension reform in Ukraine aims to develop a reliable and appropriate market conditions for the social protection of the population unable to work. Today, the financial viability of the pension system depends directly on the welfare of about 30% of the population. Sustainability of the pension system also contributes to strengthening social protection of workers, legalization of employment and income, provides more efficient use of budgetary funds and stable socio-economic environment. However, demographic perspectives and changing economic environment give reason to say that pension reform is not a single event and continuous process that never ends.

The main element of the pension system and the main source of income of pensioners in Ukraine is and will remain for a long time, the joint system.
In traditional pension system, which is the state pension system in Ukraine, pensioners not receiving their money and benefits from the contributions of new members. That is, mandatory fees that all workers make to the pension fund, there is accumulated and paid to current pensioners.

It reflects the impossibility of a threat to decent pensions citizens in the future.
In addition, in recent years difficult financial situation of enterprises led late payment of contributions to a pension and, as a result, arrears in payment of pensions to the population.

Cash of budget Pension Fund of Ukraine (PFU) is the main source of funding pensions of citizens of Ukraine. The basis of budgetary Pension Fund of Ukraine are entrusted to the basic macro economic and social development of state institutions ¬ you for a planned year are included in state budget performance and changes in legislation this year.

The average size of public pensions in Ukraine in March 2010 year consisted 1033 UAN a month. At the same time the state needs to pay its enormous reach over 14.2 billion UAN a month. PFU expenditures for 2009 amounted to 165.7 billion UAN, while institutions own revenues amounted to only 103.1 billion UAN.

Today Ukraine is the most deployed support mechanism for PFC: transfers to the Pension Fund from 2003 to 2009 grew from zero to 65.3 billion.

The current demographic situation as soon as possible requires a second pillar, as the joint system is effective only if the expanded reproduction of generations. Under conditions of depopulation, which remain the main trend of demographic development of Ukraine in the next 50 years, the joint system will be financially unable to provide a decent level of pensions.

Excessive pension-insurance burden on the economy narrows the base and source of payment of pension income. Much of the individuals and entities do not pay pension contributions. A deep and prolonged economic crisis bare shadow economy and unemployment, seriously eroded the financial base and deformed pension system. 

The current pension system came into conflict with the new realities of the market economy and hinders reform at the same time pay and increase in legal income, economic development in general.

It should be noted that delays in pension reform will inevitably lead to or increase the amount of pension contributions, the introduction of additional fees and increased burden on the economy, or reduction of pensions, the delay in their payments. It finally discredits the existing pension system, exacerbate the economic situation and increase social tension. This situation confirms the increase in premiums relative to the minimum and maximum wages subject to tax.

Research found that pension systems are improved almost everywhere, and especially in countries with highly developed social relations. This is due to aging population trends. Therefore, besides increasing the retirement age, introduced others, built on a fundamentally new basis, the pension system, which weaken influence of risk.

Thus, further pension reform proposes to take following measures:

1) establish an effective mechanism for income distribution of individual rights during the period of her life. It is in this its social, public mission, so that every participant saves during labor and consumes these savings and they received income in retirement period. This has to be directed and state pension and pension from the accumulation system.

2) the person must create conditions to ensure a decent pension in the future. But it should protect only those who through various circumstances could not earn a decent pension. It support the following categories related to payments for disabilities, occupational injuries or illnesses should be separated from the mechanism of the pension system by age and carried by the budget.

3) should gradually generation by generation, to replace the old system, which is on the brink of collapse.

4) the pension should depend only on the personal rights of deposit and retirement age should not matter. On the contrary, people decide - to work longer to receive a small pension, or have a rest.

5) the necessary design decisions on issues related to money wages.
Thus, implementation of pension reform in full supply growth and stable pensions, investment will be a powerful factor in the domestic economy.