State pension insurance in Ukraine: current trends and challenges

Abstract

The article considers the essence of pension insurance and its necessity. The analysis of the domestic practice of functioning of the Pension Fund of Ukraine as the main institute in the field of state pension insurance is conducted. Trends in the formation of budget revenues of the Pension Fund of Ukraine in recent years are revealed. The reasons for the growth in the budget deficit of the Fund and increase of the share of fixed income are indicated. Based on the analysis of reporting of the Pension Fund of Ukraine, the directions of use of its funds are analyzed, as well as the level of pension payments and the ability to meet the consumer needs are compared. The assessment of the control and analytical measures conducted by the authorities of the Pension Fund of Ukraine with respect to the implementation of the verification of pension payments and the mechanism for their computing is submitted. The necessity of pension insurance reformation through the reforming the solidarity system, creation of the accumulative system, development of the system of voluntary pension provision is substantiated. It is proposed to introduce a large-scale verification of pension payments in all regions of Ukraine in order to verify the reliability of payments and save budget funds. At the same time, it is necessary to harmonize the legal and regulatory framework for this; to ensure the formation of a unified database of the recipients of all types of pensions and its constant monitoring; to coordinate joint actions of the Pension Fund of Ukraine, the State Fiscal Service of Ukraine and the State Service of Ukraine on Labor concerning the fact-finding on the use of labor of undocumented workers; to ensure broad information-related activity in mass media on the need to implement the personal pension savings in the form of open lectures, discussions, creation of toll-free hotlines etc.