Aspekti Publìčnogo Upravlìnnâ (Mar 2017)
tate management of the mandatory funded pension system in Ukraine
Abstract
Methods of public administration of the introduction of compulsory cumulative pension system in Ukraine have been analyzed in the article. The public management of the compulsory cumulative pension system is described by the author as a purposeful action, done by the subjects of management on the whole system. It consists of structure maintenance, providing the activity, implementation of the program, regime, and objectives in order to achieve the desired result. Due to this, the compulsory cumulative pension system management processes have their own characteristics. These processes, on the one hand, are aimed at the regulation of activities of subjects of the system and its participants, and on the other hand, at the management of certain economic entities. In addition, an author has identified the separate governmental level – regulation, control and supervision – in the sphere of state formation and investment of pension savings. Furthermore, regulations in the field of pensions have been studied by the author. The scheme of formation and use of compulsory pension savings has been analyzed according to its role in control processes. Levels of pension provision system in Ukraine have been clarified: the solidarity system of compulsory state pension insurance, which is based on principles of solidarity and subsidies, and the implementation of pension payments and social services at the expense of the Pension Fund; the funded system of compulsory state pension insurance, based on the principles of the accumulation of funds of insured persons and Saving Fund or the relevant non-state pension funds; non-state pension system, which is based on the principles of voluntary participation of citizens, employers and their associations in the formation of pension savings in order to obtain pension benefits by citizens under the conditions and in the form, which is prescribed by the legislation on private pension provision. The first and second levels of the pension system in Ukraine are systems of compulsory state pension insurance. The second and third levels of the pension system in Ukraine are the accumulative pension systems. The algorithm for creating an accumulative pension fund has been analyzed. According to the opinion of the author, the mechanism of creation and use of pension savings is an ongoing management decision. Its activity is controlled not only by the state but also by other actors and participants of the funded system.
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