Accumulative Pension Research Articles

REASONS AND FEATURES OF IMPLEMENTING BLOCKCHAIN TECHNOLOGY IN THE PENSION SYSTEM OF THE RUSSIAN FEDERATION

Due to the introduction of the digital economy on the territory of the Russian Federation and the urgency of the problem of implementing the distributed registry system (Blockchain) in various financial spheres, including the system of accounting for pension rights and obligations in the state and non-state pension systems, an attempt was made to assess the principles of implementing the Blockchain mechanism in the system of accounting for pension rights, insurance premiums and pension payments. The current system of centralized registries is based on the full confidence of its participants-clients. In particular, persons insured in the pension system. The non-transparency of the non-state pension component and the periodic changes in the state pension system seriously undermine this trust of citizens. Thus, the system of distributed registries that will solve this problem operates on the principles of transparency, availability for verification, reliability (security of transactions), economy, and trust on the part of customers. The article also considers the problem of formation and distribution of the accumulative pension component. The analysis of its losses and features of transfer to different pension organizations - participants of the state pension insurance system is carried out. It is proposed to solve the problems associated with these processes by implementing a system of distributed registries and smart contracts. In conclusion, the advantages and disadvantages of the distributed registry system are presented, as well as the difficulties of its implementation in the near future in the pension system of the Russian Federation are analyzed.

Пенсійна реформа у Польщі: питання та відповіді для України

З'ясовано, що зростання витрат на фінансування пенсійних систем як Польщі, так і України відбувається через демографічну кризу, соціальні зміни та економічну кризу як на глобальному, так і національному рівнях, змушуючи до реформи цих систем. Сьогодні Україна активізує процес запровадження недержавного пенсійного забезпечення. Йдеться про систему накопичувального пенсійного забезпечення і, зокрема, про недержавну систему пенсійного забезпечення. Саме недержавне пенсійне забезпечення породжує в українському суспільстві низку питань, на які змогла відповісти своєму суспільству Польща після того, як запровадила нову пенсійну реформу. Запровадження тристовпеневої польської пенсійної системи (перший стовп – фонди установ соціального страхування, другий стовп – відкриті пенсійні фонди, третій стовп – пенсійні програми працівників, індивідуальні пенсійні рахунки) пояснило польському суспільству який вік виходу на пенсію згідно з новою пенсійною реформою, наявний мінімальний соціальний стаж у разі виходу на пенсію, чи вигідно приховувати або знижувати доходи під час декларування їх у новій польській пенсійній системі і чи будуть оподатковуватись майбутні пенсійні виплати з податку на прибуток. Отже, бачимо, що Польська тристовпенева пенсійна система є дещо подібна до трирівневої пенсійної системи, яку задекларовано в Законі України "Про загальнообов'язкове державне пенсійне страхування". Проте запровадження недержавного пенсійного забезпечення в Україні (другий та третій рівні) перебуває на початковій стадії. Для активізації системи накопичувального пенсійного забезпечення необхідний розвиток страхового ринку України, який ще мало розвинений, а тому нам треба використовувати досвід як країн Європейського Союзу, зокрема Польщі, так і інших країн світу, що досягли високих результатів у цьому питанні.

Development of life insurance market in Ukraine

Purpose. The aim of the article is to study the main problems faced by the domestic life insurance market, substantiation of the negative impact and identification of opportunities for its future development. Methodology of research. The research is based on scientific and practical developments of scientists and specialists. The following methods are used to achieve this purpose, among them are analytical (when analyzing the main components of the life insurance market); generalization (when compiling data on the assessment of the life insurance services segment functioning in order to identify patterns of its trends); evaluation and inference (to summarize the subject of the research). Findings. Insurers’ dynamics in the domestic insurance market in recent years in terms of their numbers have been analyzed; an assessment of the structure in terms of gross and net insurance premiums and payments has been substantiated. The comparative characteristics of digital indicators of the Ukrainian and European life insurance markets have been considered. The issue of inclusion of insurance services in social programs and urgent deterrents of its solution in Ukraine has been studied. The advantages and disadvantages of life insurance areas (the accumulative pension, the insurance against accidents at work) have been analyzed. An assessment of the composition of the social package in the Ukrainian insurance market and the importance of each component, namely the basic social guarantees and additional material benefits, taking into account the available potential has been done. Originality. Theoretical and practical foundations of life insurance market development have been deepened on the basis of cooperation between the state, which at the same time assumes responsibility for maintaining the minimum income of all citizens, and also maximally stimulates the development of various forms of non-state insurance in order to save life, health and income. Practical value. The results of the research can be the basis for future scientific exploration in the field of effective development and functioning of the life insurance market. Key words: insurance, life insurance, accumulative pension insurance, insurance of working accidents, life insurance market.

LEGAL PREREQUISITES FOR INTRODUCTION OF MANDATORY ACCUMULATIVE PENSION INSURANCE

Introduction. The priority of overcoming social tensions in society is a decent pension, which is one of the types of social guarantees of the state to its citizens, which should be protected by the legislation of Ukraine. Legislation and regulations are important means of regulating relations between the state and citizens in the field of pension insurance. Accumulative pension provision has been under discussion for more than a year, and it is the lack of a reliable legal framework that suspends its implementation. The article analyses the legal aspects of the introduction of funded pension insurance, studies the legislation, considers changes and their impact on pensions, in particular on the funded component. Thus, the legislative regulation of the accumulative pension provision is an important component both for improving the trust of citizens and the standard of living of the elderly, and for filling the income part of the Pension Fund of Ukraine. The question of whether the state will be able to pay accumulative pension contributions is relevant for society, which first of all needs legal guarantees of receiving their pension savings, so this question needs constant further research. Creating legislative preconditions for the functioning of funded pension provision is an urgent requirement of the time and a necessary condition for the existence of an effective, socially just system of relations in the field of social security. Purpose. To characterize and systematize the accumulative pension provision by studying the legal aspects of its introduction. Improving the legislation of Ukraine on the functioning of the accumulative pension insurance system will make it unified and improve the pension provision of future generations of pensioners. Method (methodology). The research methods are the historical method, because the pension legislation changed at different times and the evolution of the country's development was postponed. The article also uses methods of comparison and analysis to draw appropriate conclusions about the legal and legal framework of pensions and its progress in accordance with the requirements of the time. Results. The article considers the legislative and normative – legal acts that regulate pension legal relations in Ukraine. The legal aspects of launching private pension insurance are analyzed and the draft law «On accumulative pension provision» is characterized, the introduction of which will allow introducing the stock market in Ukraine, which will allow it to be independent of external investors.

ОРГАНІЗАЦІЙНІ ПРОБЛЕМИ ФУНКЦІОНУВАННЯ НАКОПИЧУВАЛЬНИХ ТА РОЗПОДІЛЬЧОЇ ПЕНСІЙНИХ ПІДСИСТЕМ В УКРАЇНІ

Despite the number of reforms, the issue of improving the pension system in Ukraine remains quite acute. The low replacement rate and the marked increase in public pension expenditures, caused by the sharp increase in the budget deficit of the pension fund of Ukraine, show that the national pension system is one of the least efficient pension systems in the world. The article considers the structure of pension systems of developed countries, which in their absolute majority are combined. The mixed type of pension system is the most effective in terms of financial stability and the level of paid pensions. In its pure form, cumulative and distribution models are not common in world practice. The indicator of the coefficient of replacement of pension subsystems of OECD countries is presented and conclusions are drawn about their efficiency. The basic models of management of accumulative pension funds are summarized. Based on the analyzed data, it is obvious that in most leading countries of the world the basis of pension provision is the distribution subsystem. With rare exceptions, the bulk of the substitution factor is created within distribution systems. Accumulation systems can also play a significant role. Comparing data on replacement rates in Ukraine with the countries of OECD, it is clear that by 2019 the situation in Ukraine is one of the worst. The ratio of the average pension to the average salary in Ukraine is 2 times lower than the average for the OECD countries. Analysis of world practice leads to the conclusion that to increase the level of pensions requires simultaneous strengthening of the distribution and development of the accumulative parts of the pension system. The analysis of functioning of each subsystem of pension provision in Ukraine is carried out. The problems of functioning of the distribution pension subsystem in Ukraine during the last years are described. The dynamics of the budget deficit of the Pension Fund of Ukraine is graphically presented. The reasons for refusing to introduce the compulsory pension subsystem have been identified. The results of the activity of the voluntary accumulative pension subsystem are analyzed. The directions of im-provement of functioning of the pension system of Ukraine are defined.

Шляхи вдосконалення механізму державного регулювання загальнообов’язкового накопичувального пенсійного забезпечення

The article is aimed at identifying the ways to improve the mechanism of the State regulation of compulsory accumulative pension provision. Both the effective development and the ways to improve the introduction of compulsory accumulative pension provision are analyzed. A financial cluster of the subjects of pension system is built up. The association of pension system subjects of Ukraine into a financial cluster will accelerate the full functioning of all levels of pension provision. The core of the cluster is the levels of the pension system. The main risks on the ways to improve the mechanism of the State regulation of compulsory accumulative pension provision are identified, namely: long-term investment; diversification of sources of coverage of the risk of disability; ensuring financial sustainability and balance; valuation of assets; corruption schemes of money laundering of pension assets; shadow economy of Ukrainian enterprises; audit and actuarial evaluation; procedure for accrual and the level of pension payments. The hierarchy of risk impact on the ways to improve the mechanism of the State regulation of compulsory accumulative pension provision is built up, where the risk of long-term investment holds the highest level. The following ways of improving the mechanism of the State regulation of compulsory accumulative pension provision are proposed: monitoring of elements of accumulative, redistribution and the State-based funding; introduction of the possibility of using investment projects of the financial market; improvement of the current system of the non-State pension provision, focused on protecting pension savings from the risks of a non-State pension fund; reducing socio-economic risks by increasing employment, increasing incomes of citizens, exercising the State supervision and controlling the diversification of financial instruments, balancing the financial resources of citizens through the reduced administrative costs.

Кваліметрична модель оцінювання внутрішньої системи управління комплаєнс-ризиками в системі накопичувального пенсійного забезпечення

The article discusses the issues of developing a qualimetric model for assessing the internal compliance risks management system in the system of accumulative pension provision. The object of the research is the compliance risks management in the system of accumulative pension provision. One of the least developed issues is the lack of research on the assessment of the internal risk management system on the basis of a qualimetric approach. This hinders the practical aspects of introspection regarding the assessment of the quality of the internal compliance risk management system in the system of accumulative pension provision. Using the methods of analysis and synthesis, the general components for the development of a qualimetric model of quantitative assessment of the internal system of compliance risk management in the system of accumulative pension provision are defined. A qualimetric approach was used during the research. Thus, the article, using the factor-criterion modeling (qualimetric approach), develops a qualimetric model of quantitative evaluation of the internal system of compliance risk management in the system of accumulative pension provision. The proposed qualimetric model has a number of features, including organizational and informational, methodological and process components of compliance risk management in the system of accumulative pension provision. This provides such an advantage as the possibility of introspection and internal control of the formed internal system of compliance risk management in the system of accumulative pension provision. Also, the developed model allows the application of a qualimetric approach to solving the scientific task of assessing the internal system of compliance risk management in the system of accumulative pension provision, which will provide a multi-criteral approach to the management of these risks.

В УКРАЇНІ З’ЯВИТЬСЯ НОВЕ ПЕНСІЙНЕ ВІДОМСТВО

The reform of the Ukrainian economy, namely its transition from a planned, centralized, to a market economy and one that acts as a fully functioning functioning system in the world, requires the creation of a number of effective mechanisms of social protection for its citizens. In this context, the most important task facing the state is the issue of pension provision for citizens. In the last 30 years, social reforms have begun in many countries of the world, which are part of the reform of pension systems. The purpose of social and pension reforms is to increase the effectiveness of public social protection and social insurance, including ensuring the financial stability of compulsory social security funds and pension systems. The latter is necessary to protect future retirees from the rapid reduction of public pensions in the future. The time when the state was fully responsible for solving virtually all social problems of its citizens has passed. As a result of the above-mentioned reforms, new types of state and non-state but public funds are emerging in the countries. These are compulsory social insurance funds of the population (which by their economic nature are so-called solidarity funds) and accumulative pension funds (which by their economic nature are so-called funds). The need for effective regulation of relations regarding the formation, management, distribution and use of funds of new types of public funds requires clear resolution of many practical and theoretical problems, as well as the creation of appropriate new legislation. It is noted that in order to restore an adequate level of pension provision in Ukraine, it is necessary to introduce a mandatory funded pension provision as an additional element of the pension system (the so-called second level), in order to form pension savings and increase the aggregate replacement rate as the main indicator of adequacy of pension payments.

THE ROLE OF SOCIAL AND PERSONAL INSURANCE IN PROVIDING PUBLIC WELFARE IN UKRAINE

Introduction. Achieving public welfare is impossible without an effective social protection system, which combines pension insurance, social insurance, health care, as well as material support in difficult life situations. Low budget funding for social protection of population necessitates the use of insurance instruments to neutralize major social risks. However, the role of social and personal insurance in the financial provision of social protection remains insufficient, and its potential in improving the welfare of Ukrainians is underestimated. However, the role of social and personal insurance in the financial provision of social protection remains insufficient, and its potential in improving the welfare of Ukrainians is underestimated. The purpose is to define the role and outline the prospects for the development of social and personal insurance in the context of ensuring public welfare in Ukraine. Results. The essence and main components of social welfare are revealed. It was found that the level of well-being of Ukrainians is ten times lower than in European countries. There are the main negative factors which influence the social protection system defined, in particular: low income and rising expenditures of the Pension Fund of Ukraine and the Social Insurance Fund of Ukraine, the widespread practice of minimizing SSPs by refusing to enter into classic employment contracts in favor of civil agreements with individual entrepreneurs, reduction of the number of insured persons working for hire, high level of labor emigration of Ukrainians. The health care system impact on the growth of public welfare in Ukraine is analyzed. The inefficiency of the current financial support model of the health care system is substantiated, which makes it necessary for households to pay for most of the cost of medical services. Tendencies in the development of the domestic health insurance market are highlighted. Perspectives. It is proposed to revise the principles of building accumulative pension insurance and introduce a budget-insurance model of financing the health care system, which will help to improve the welfare of the population of Ukraine.

Analysis of Reforming the Pension System of Ukraine: Implementation Problems and Development Prospects

Pension provision is an element of the pension system that ensures sustainable socio-economic development of the state as a whole. The article discusses the current problems of the pension system in Ukraine, ways to overcome and directions for its improvement. Determination of the further development and reform of the pension system aimed at ensuring the financial stability of the solidarity system. Introduction of the development of the pension system, taking into account the peculiarities of the current situation in the country, ways of reforming social insurance. The compulsory accumulative pension system is considered. Its introduction to retirees for two centuries. The advantages of the funded system, what it is based on, and its main contingent of citizens are analyzed. Principles of pension accrual, pension entitlements, old-age pensions, pension transfer, minimum and maximum pension in the course of reforms. Analyzed, introduced by introducing amendments to some legislative acts of Ukraine regarding the increase in pensions. The demographic state of the population is considered. The article proves that the main strategic directions for improving the pension reform is the introduction of changes in the demography of the population; percentage of ERUs, when calculated for each entrepreneur separately (respectively, from the group of an individual entrepreneur to the type of activity); open your deposit account for the savings system in the public domain; to enable pensioners to work (to improve their knowledge with practitioners, to provide an opportunity to work with modern equipment, programs) to determine the dates for the introduction of the second level and the age category of participants; to establish and improve the work of the organization of pension provision; to show confidence in the reforms of the Pension Fund bodies to the population. Nowadays, constant monitoring of the achievement of the strategic goals of the reform of the pension system and pension provision and the adoption of fundamental decisions to overcome strategic gaps is quite an urgent issue and requires further research.

Comprehensive approach in public pension system management as one of the directions of European integration development of Ukraine

The main problems of the improvement of the efficiency of public pension system management in Ukraine are analyzed by the authors in this paper. The necessity of application of the comprehensive approach to these processes is substantiated due to the results of scientific investigations. The authors analyze the impact of wage shadowing on the budget of the Pension Fund of Ukraine. Conditional wages calculation is carried out. According to this calculation the state actually has revenues about a third of the amount of funds paid to the employee in the form of wages taking into account all deductions, taxes and charges However, the investigation also shows that for VAT companies there is indirect tax burden on sole proprietorships, which in some cases increases the «tax» almost by half. Special attention is paid to the problem of labor migration from Ukraine to EU. The investigation indicates that Ukraine is introducing changes to reform the social insurance system, using the long-term experience of Central and Eastern Europe, as well as the Baltic States. In addition, such reforms have previously been carried out in Chile, Kazakhstan and other countries. The need to introduce the state accumulative pension component in Ukraine, to which contributions should be paid in the form of payroll deductions is also pointed out, as the EU experience shows that this fact stimulates workers and makes them more responsible for their pension savings. Within the framework of comprehensive approach, it is proposed to apply the marketing approach to the pension system management. The importance of the implementation of the Association Agreement with the European Union in terms of cooperation in the field of employment, social policy and equal opportunities, as well as the impact on the functioning of pension system for certain terms of national legislation is indicated. On the basis of analysis carried out in theoretical and practical terms, the need to develop not only three-level pension system, but also to take into account the recommendations of the World Bank concerning five-level system formation is substantiated. The government should achieve the new quality in public administration, both by the processes of pension reform and in relation to the socio-economic development of the country in general actively adapting the EU experience in the application of comprehensive approach tools.

ТЕНДЕНЦІЇ РОЗВИТКУ НАКОПИЧУВАЛЬНОГО ПЕНСІЙНОГО ЗАБЕЗПЕЧЕННЯ:МІЖНАРОДНИЙ ТА ВІТЧИЗНЯНИЙ ВИМІР

Identifying problems and rethinking approaches to the development of an effective pension system in Ukraine is an urgent task that requires a comprehensive analysis of the features of its functioning in Ukraine and the world.The functioning of the domestic pension system is accompanied by many problems, including imbalance in financial flows and a deficit of the Pension Fund of Ukraine, underdevelopment and lack of confidence in the accumulative pension provision on the part of the population. It is important to search for directions of modernization of the domestic pension system and its adaptation to modern conditions of economic development of the state.The formation and development of the domestic pension system are highlighted in the scientific works of such scientists as N. Balaniuk, N. Bakhmach, O. Bobyr, V. Voskoboinikov, O. Kyrylenko, H. Kozak, A. Svyrydovska, V. Prokopenko, N. Tkachenko and others.Research requires the peculiarities of the functioning of the domestic funded component of the pension system and positive experience in the development of such systems in foreign countries.It is necessary to cover the mechanisms of pension provision in Ukraine, to characterize the international experience of such provision in order to determine strategic guidelines for the further improvement of the domestic pension system.In this article, the author describes two main approaches to the formation of the structural structure of pension systems, which have become widespread in world practice, in particular: pay-as-you-go and funded. Their advantages and disadvantage are determined. A comprehensive assessment of the problems of modernization of the domestic pension system is provided. Proposals to activate accumulative pension provision in Ukraine are given.The need for the development and practical implementation of a set of measures aimed at enhancing the development of the funded component of the pension system is pointed out.

New regulations in the development of a financial market

Effective functioning of a financial market has a key role in the development of a country's economy. Developing countries experience lack of funds, one of the best ways to attract investment capital is the development of the right direction of the securities market, credit market and insurance market that are served by the regulations adopted in this field, which are derived from the Association Agreement.
 It can be said that a new phase starts with new regulations on the market of financial institutions. Current regulations are directed to the solvency of the insurance company, the use of mechanisms for maintaining financial sustainability, and the rule of formation and placement of reserves. However, there are no regulations for the development of life insurance. According to the new regulations, we think that in 2019 banking sector will be significantly different from the 2017 situation. In the short term, it will bring down retail lending, increase expenditures in the sector, increase demand on capital and reduce profitability, and in the long term we should hope that it will contribute to the improvement of the financial system of Georgian financial system, which will ensure financial sustainability of the banking system. Regulations concerning the development of the securities market, here a pension reform is important, which has come into force since January, 2019. As a result of this, the state accumulative pension system started in which large amounts of accumulated funds will be invested in local securities, in the local economy.
 The research objective: To determine the effectiveness of new regulations on the financial market, the purpose of implementing regulations is to improve the quality of the banking system, the securities market, the insurance market, and the sustainable development of the economy.

Prospects of introduction of the funded pillar of the pension system of Ukraine

The article analyzes the current state of the pension system of Ukraine. It is determines that the diversification of pension financing of sources is low, the solidarity component is dominates in the pension system of Ukraine. The increase in the role of accumulation principle is due to the influence of demographic and socio-economic factors, and low population incomes to constrain by its development. The essence of the new three-tier pension system of Ukraine is also considered, the comparison with pension systems of other countries is carried out. The non-state pension funds activity is analyzed, the differences between the solidarity and accumulation systems of pension provision, the role of accumulative pension insurance in the system of population social protection, the mechanism of transition to accumulation system of pension provision, the peculiarities of accumulation fund functioning and non-state pension funds, the investment potential of pension savings, and also implementation prospects of mandatory retirement pension systems in Ukraine are considered. The pension provision system is associated with implementation of a cumulative system of compulsory state pension insurance, therefore, in the future it is necessary to look for solutions to the problems of pension provision, to use new approaches to Pension Fund financing, to develop the second level of pension provision, and also reduce the risk of pension accumulations

Окремі проблеми правового регулювання у сфері пенсійного страхування в Україні

The article deals with some legal problems of realization of the rights of insured persons in the field of compulsory state pension insurance in Ukraine on the basis of analysis of legal acts, practice of their application, judicial practice and research in the field of pensions. Attention is focused on the lack of a mechanism for implementing the introduction and functioning of the accumulative level of the pension system. The world tendencies of functioning of accumulative pension schemes are analyzed.

The Pension System of Ukraine: On Its Way to a Fundamental Reform

Research focused on the sphere of the Ukrainian pension system is an important element of welfare research as a whole. Being an integral part of the economy, the pension system is subject to both positive and negative trends. The article examines legislative changes in the field of special pension, which are observed to be intensifying, and the introduction of an accumulative pension system is noted. The problems that exist with Ukraine’s pension legislation and its application by the courts are examined.

Perspectives of accumulation of funds in the accumulative pension insurance system of Ukraine

The pension system existing in Ukraine does not correspond to the modern requirements of society and needs radical reforms in which the main focus should be on the introduction of a mandatory accumulative pension system. It is shown that accumulation of funds in accumulative pension system (APS) requires complex calculations. A model for accumulation of funds in the accumulative pension insurance system used in this paper makes it possible to determine a set of interrelated parameters – insurance premium rates, reasonable insurance periods, the desired rates of profitability, the required amount of savings, investment potential of accumulative pension system, etc. The amount of funds in accumulative pension insurance system depends not only on the basis of insurance (number of payers of insurance premiums), the amount of contributions (rate and object) and (primarily) on the term of beginning of payments of insurance premiums, the coefficient of profitability of invested funds and guarantees of their safety at all stages of functioning of the accumulative system. The analysis has shown that it is necessary: to cover all people employed in the economy with accumulative pension insurance; a rate of contributions should be determined not only by wages, but also by income; prior to the introduction of accumulative pension system – to create the necessary infrastructure, to develop a legal framework, to organize the management of accumulative funds, to solve the issues related to the protection of funds from the risks of losses. The beginning of introduction of the accumulative system should be postponed till 2020.

Pension reform in Ukraine: realities and requirements of the present time

The objective of this study was to consider the main legal and regulatory framework for the regulation of pension in Ukraine to make its analysis, and to characterize it. It has been emphasized the importance of insurance companies as innovators and recognized worldwide leaders in the field of planning of retirement and savings programs.The process of pension reform in Ukraine has a complex and ambiguous character. Most experts agree on that the new reform of pension legislation cannot be regarded as a reform. Low pensions, high retirement age, the lack of means for payment of pensions do not constitute a complete list of problems facing the state and its citizens. One to protect himself and his family in case of unforeseen unpleasant situations and to have the ability to age with dignity is provided with a help from insurance companies that are recognized leaders worldwide in planning for retirement and savings programs. On the basis of researched materials the task is to analyze legal and regulatory acts concerning the regulation on provisions of pensions in Ukraine, and to highlight possible alternative directions for further improvement of pension reform in Ukraine. According to the State statistics service of Ukraine one-third of population of Ukraine are pensioners. So, for the first half of 2016 there were 12, 2 million retirees registered in the Pension Fund of Ukraine and the total expenditure of the Pension Fund is 92, 7 billion hrn., 44, 1 billion of which were financed at the expense of independent means. The Minister of social policy Pavlo Rozenko has said that Ukraine needs both pension reform and accumulative pension system to be implemented in 2017. Pension reform, which the government plans to implement in 2017, will allow to pay pensions from three different sources: solidarity system, accumulated systems and private pension insurance. There are legal organizations which the State has granted the right to deal with non-state pension insurance and they are the following: pension funds, banks, insurance companies, which are licensed for long-term savings and life insurance. The first two organizations have government guarantees, hence in case of crises they may go bankrupt. According to the Law of Ukraine "Upon insurance" insurance companies are not to be declared as a bankrupt. As foreign experience shows the leading role in this system belongs to the insurance companies, which provide financial protection for a person and his family in case of unforeseen unpleasant situations and the ability to age with dignity. In conclusion, legislative framework of Ukraine concerning regulations of pension relations based on multi-level principle that is, the finance of pensions, on the basis of the distributive and cumulative approach is fully formed. However, the analysis of fundamentals of non-state pension provision system shows that the development of private pension funds is still in its infancy. Therefore, we should learn from foreign companies such as MetLife concerning the development of the domestic insurance companies, security for pension savings which results in a dignified old age. Based on above mentioned, there is the necessity to strengthen the role of funded principles in the finance of pensions in the future. This will allow to individualize the process of accumulation of pension's capital, to raise the standards of living of pensioners in the face of growing demographic burden on people of working age. It will also contribute to the development of financial and credit spheres of the country, to the improvement of social and labor relations, and to the formulation of the source for domestic investm.

Definition and parameter analysis of the accumulative pension system

The article studies the parameters of the accumulative pension system, particularly, the rate of contribution into the accumulative system, contribution period of the system’s participants, the coefficient of replacement of the salary with pension after the retirement, the number of years of the future pension payments, alternatives of profitability of the funds accumulated by the system. The structure of the accumulative system is based on the methods and models of determining the parameters during the period of accumulation of resources after the retirement of the participant. The calculations are based on a variant basis. There are 6 interconnected parameters of the system’s determination. The author has carried out formalization of determining the system’s indicators and variant calculations. The most realistic for Ukraine is the introduction of accumulative system with the following parameters: contribution ‒ 14% of salary (or preferably of income); contribution period ‒ 35 years with the retirement of men at the age of 65 and women at the age of 60; the percentage of return on the savings ‒ 3%. That is, in this case, the accumulation system will provide a pension with the income-replacement ratio of 0.6 over 18.4 years. The model can be used at the state level (when determining the rate of contribution into the accumulation system, the contribution period and the income-replacement ratio with the fixation of other parameters) and by the system’s participants (when determining the number of years using the accumulated pension, the income-replacement ratio and monitoring one’s own resources).

INTERNATIONAL EXPERIENCE OF RETIREMENT INSURANCE AND ITS IMPLEMENTATION IN UKRAINE

The article attempts to provide an overview of world experience in functioning and development of retirement insurance system based on insurance principles. The world experience in the sphere of retirement insurance and realization of pension reforms in countries with different economic development will help to apply certain elements to Ukrainian pension program. The importance of functioning of multilevel pension models is considered in the study. The analysis has shown that pension models based on redistributive and accumulative pension programs give an opportunity to receive differential pensions to citizens of retirement age.