Pension Insurance System Research Articles

ОСОБЛИВОСТІ ФУНКЦІОНУВАННЯ СИСТЕМИ НЕДЕРЖАВНИХ СТРАХОВИХ ПЕНСІЙНИХ ФОНДІВ В УКРАЇНІ

У статті розглянуто особливості функціонування недержавних страхових пенсійних фондів в межах третього рівня системи пенсійного забезпечення в Україні в сучасних умовах розвитку національної економіки. Обґрунтовано необхідність вирішення актуальних проблем щодо розширення обсягів залучення населення до системи недержавного пенсійного страхування.

ОСНОВНЫЕ ВЫЗОВЫ УСТОЙЧИВОСТИ СИСТЕМЫ ОБЯЗАТЕЛЬНОГО ПЕНСИОННОГО СТРАХОВАНИЯ В РОССИИ

The article discusses the influence of demographic factors on key parameters of functioning of mandatory pension insurance, analyzed the dynamics of the ratio of the subsistence minimum of pensioners and average size of labor old-age pension, the change trends of the main participants in the system of mandatory pension insurance. In conclusion, conclusions are drawn regarding the current conditions for the functioning of the mandatory pension insurance mechanism in our country.

Improving Supervision of Pension Asset Management: Transition to Prudential (Risk-Based) Supervision

The Object of the Study is the management of pension assets - investment / placement of pension funds (pension savings and pension reserves). The Subject of the Study is the introduction of prudential (risk - oriented) supervision in order to improve the financial stability of non-state pension funds (NPF), ensuring the safety of pension assets. The purpose of the article is to analyze the main positions and principles of this supervision, its advantages and disadvantages. The Main Theoretical Aspects of the article: one of the basic goals of macroprudential supervision is creating conditions under which non-state pension funds would implement effective risk management which would improve the safety of pension assets. Among the tools of such supervision: stress testing, creating a risk management system in NPF and management companies participating in the pension system, proportional regulation. At the same time, macroprudential supervision does not exclude the establishment of capital requirements, corporate governance, restrictions on investment objects and the structure of the investment portfolio. In view of the introduction of such supervision, it is proposed to revise a number of requirements for non-state pension funds, as well as for the established restrictions on investing pension funds, e.g. to provide for the possibility of reducing the established requirement for the minimum amount of NPF's own funds, without reducing the requirements for the adequacy of assets for performance and obligations to depositors, participants, and insured persons). In view of the convergence of mandatory pension insurance (МPI) and non-state pension provision (NPP) systems and in connection with the new concept of the pension system under discussion it is proposed to abandon proportional regulation of the NPF's activities depending on the type of activity and to abandon differences in investment requirements in the MPI and NPP systems.

COMPULSORY STATE PENSION INSURANCE WITHIN THE PENSION SECURITY SYSTEM OF UKRAINE

Ukraine has been reforming its pension provision for a long time, and in particular, such an important component as compulsory state pension insurance. The changes that have taken place as a result of these reforms have not yielded adequate results, and serious problems continue to exist regarding the balancing and long-term financial stability of the budget of the Pension Fund of Ukraine. Therefore, the study of the processes taking place in the solidarity system of pension insurance and the search for solutions to problems in this area is extremely relevant. The purpose of the study is to identify trends in the development of compulsory state pension insurance in Ukraine and substantiate its role in providing disabled citizens with adequate pension protection. The article is devoted to the study of the current state of compulsory state pension insurance and substantiation of its role in providing disabled citizens with decent pension benefits. The analysis of incomes, expenses and deficit of the Pension Fund of Ukraine is carried out, their comparison in national and foreign currencies is carried out. It is established that nominal revenues to the Pension Fund of Ukraine and its expenditures tended to increase, but when they were converted into foreign currency there was a decrease in these indicators (except for 2013), which indicates contradictory trends related to the depreciation of income and fund expenses. It has been proven that the Pension Fund of Ukraine constantly lacks its own funds to meet its pension obligations, as a result of which significant budgetary resources are absorbed and the majority of pensioners are not provided with decent pension benefits. Factors influencing the deficit of the Pension Fund of Ukraine have been identified. It is concluded that the problem of low pensions is largely a consequence of the general economic conditions in the country and to a lesser extent - a consequence of the structure or functioning of the solidarity system itself. After all, the basis for calculating insurance premiums is wages, which are low for most employees. Factors that negatively affect the functioning of the state pension insurance have been identified and measures to overcome them have been identified.

Effectiveness of investment activities of managers in the mandatory pension insurance system

This article examines reasons for the low efficiency of investment activity by pension asset managers, and pension investment rules are formulated. These rules are based on the Asset Allocation strategy, taking into account the long-term pension investments and the life-cycle investment strategy. All pension portfolios of Russiаn managers have weak diversification by asset classes, a high share of fixed income financial instruments, and a mismatch of the portfolio structure with the risk profile of the beneficiary. The pension industry has high costs. We evaluated the real efficiency of investment activity by pension asset managers according to the classical theory of investments, and compared it with the risk-return benchmarks of the Russian financial market. The real cumulative return by pension asset managers is negative for the period 2008–2018. At the same time, the Russian financial market provided opportunities for real growth of pension savings. Bank deposits allowed to defend capital from depreciation. Modeling of index pension portfolios (conservative, balanced, and aggressive) in the Russian financial market, according to pension investment rules, showed a positive impact on investment management efficiency of regular rebalancing of the portfolio containing stocks. The management of index pension portfolios by the proposed rules protect pension savings against inflation. Pension asset managers improve the investment policy efficiency following the pension investment rules.

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.

Transformation of the Principles of Formation of Insurance Pension Rights in the Context of Increased Retirement Age

The presented study examines the impact of macroeconomic and demographic factors and increased retirement age on the formation of the pension rights of insured persons within the distributive component of the compulsory pension insurance system.Aim. The study aims to use actuarial calculations to substantiate the procedure for the formation of insurance pension rights within the compulsory pension insurance system in the context of population ageing.Tasks. The authors develop methodological approaches to the actuarial substantiation of the formation of pension rights within the distributive component of the compulsory pension insurance system. They also formulate proposals for improving pension legislation to increase the efficiency of the formation of insurance rights within the compulsory pension insurance system and for the Pension Fund of the Russian Federation to achieve fiscal balance, raising the level of pension for the period up to 2050.Methods. This study uses general and special scientific methods of cognition – analysis (economicstatistical, financial, systemic, comparative) of theoretical and practical materials and synthesis, expert assessment, actuarial modeling and forecasting – to examine the formation of pension rights by insured persons within the context of the pension system in various aspects (legal, historical, temporal) and to develop proposals for implementing measures aimed at improving the efficiency of the formation of pension rights in the long term.Results. Analysis of the leading approaches and principles in the formation of the pension rights of insured persons and legislative regulation of this process within a time interval of more than 30 years as well as the conducted actuarial calculations show that it is necessary to create a new mechanism for calculating pension rights in the context of population ageing. There is an obvious need to develop constructive measures based on the results of actuarial calculations to improve pension legislation.Conclusions. Examination of the way the formation of pension rights of insured persons transformed over time makes it obvious that this process is continuously affected by macroeconomic and demographic factors, including natural population ageing, and the measures taken to increase the retirement age. The resulting situation calls for the development of a set of measures aimed at improving the efficiency of pension reforms in the future to fully make allowance for the pension rights of insured persons in the amount of the future pension.

Reducing Endowment Insurance Contribution Rate and Potential Economic Growth Rate

Facing the downward trend of economic growth year by year, in order to promote the sustained and stable development of China’s economy, and smoothly achieve two hundred-year goals, reducing the tax burden of enterprises, especially reducing the contribution rate of enterprise endowment insurance, has become an important policy grasp. On May 1, 2019, China reduced the contribution rate of enterprise endowment insurance to 16%. Under this background, will reducing the contribution rate of enterprise endowment insurance to 16% promote the real potential economic growth rate in the future, and to what extent can reducing the contribution rate of enterprise endowment insurance promote economic growth? Is it true that the lower the contribution rate of enterprise endowment insurance, the better the China’s future economic performance? These become the urgent question to be answered.In response to the above key scientific questions, by constructing a dynamic general equilibrium model and simulating with realistic and feasible parameters, it is found that although reducing the contribution rate of enterprise endowment insurance to 16% cannot change the downward trend of economic growth, it indeed increase China’s potential economic growth rate, especially in the short term. Taking into account the experience of OECD countries, further simulation shows that the above conclusions are still robust. Reducing the contribution rate of enterprise endowment insurance to 16% will increase the average economic growth rate by 0.912%, 0.132% and 0.211% between 2019-2021, 2022-2050 and 2019-2050, respectively. Meanwhile, it is not true that the lower the contribution rate of enterprise endowment insurance, the better the China’s future economic performance. There is an optimal contribution rate of 16.454%. If we reduce the contribution rate of enterprise endowment insurance, meanwhile increase the contribution rate of individual account endowment insurance, that is, from the pay-as-you-go system to the funding pension insurance system, we can not only reduce the negative impact of reducing the enterprise contribution rate on the future welfare of current working population, but also promote economic growth, especially in the long run.The contribution of this study lies in the timely and quantitative assessment of the impact of the reduction of enterprise endowment insurance contribution rate to 16% and further reduction of the contribution rate on the real potential economic growth rate in the future, which may provide a numerical basis and decision-making reference for the formulation of public policy. Compared with the previous research methods, in the model setting, a new mechanism that the impact of reducing the contribution rate of enterprise endowment insurance on economic growth is added by affecting human capital and labor productivity, this may provide an extensible theoretical framework for scholars to analyze the impact of reducing the contribution rate of enterprise endowment insurance on economic growth.

Управление средствами пенсионных накоплений в системе обязательного пенсионного страхования: анализ текущего состояния, проблемы и пути совершенствования

The study analyzes the current situation of pension savings funds management in the mandatory pen-sion insurance system. It identifies the main modern problems of this management: a moratorium on the transfer of pension savings from Pension Fund of the Russian Federation to non-state pension funds and private management companies, participating in the pension system; the inertial nature of the devel-opment of the mandatory pension insurance sys-tem, and the absence of financial instruments that allow for stable and long-term accumulation of pen-sion funds. In this regard, it is proposed to reform not only the pension system, but also the entire work of the stock market, to determine the develop-ment of the accumulative component of the manda-tory pension insurance system, to develop financial instruments with fixed income for the long term.

Deposit policy of Ukrainian banks: current realities and prospects

Deposit policy of banks is defined as an important component of the banking strategy, since banks operate mainly with attracted resources. Therefore, volume and quality of the resource base of banks determine their opportunities for lending and investment activity. An important component of the study is the impact of the National Bank of Ukraine on the deposit policy of commercial banking institutions in terms of interest rate policy and deposit insurance system, which needs to be improved. The author’s definition of the term “deposit program” is proposed, and a determining factor in a bank’s deposit program is that it is developed individually and is aimed at providing the required amount of attracted resources in order to maximally meet the needs of customers and taking into account the priorities of the bank. The prospects for improving the deposit policy of the banks are highlighted as providing marketing innovations is a prerequisite for ensuring competitiveness. They need to be implemented systematically and interconnected with other business processes, including introducing new types of accounts and modern channels for selling banking products. In particular, due to the pension reform in Ukraine, the non-state pension insurance system is developing, and opening of IRA for clients is a promising direction for attracting funds by commercial banks.

Modern tendencies of functioning of nongovernmental pension funds in the system of obligatory pension insurance

This article summarizes and systematizes key trends in the development of non-state pension funds (NPFs) in the exercise of the functions of trust management of pension savings of citizens for the period from 2005 to 2017. The participation of non-state pension funds in the compulsory pension insurance system has led to their emergence as the largest insurer, so starting from 2016, the NPF, as a large institutional investor, began to concentrate more than half of all pension savings funds transferred to management. A quantitative analysis of the institutional structure of the Russian system of trust management of the pension system means allows determining the main directions of its transformation; there is a clear tendency to a reduction: the total number of NPFs operating in the OPS system. The article defines the strategy of investing APFs in various classes of assets during the study period, it has been revealed that of the total amount of invested pension savings in corporate securities, 2/3 of them fall on NPF investments. Over the last analyzed period, there has been a sharp increase in the investment of pension savings of NPFs in government securities, which is largely due to the tightening of regulatory requirements for the risk level of portfolio investment. Important areas of research are evaluating the effectiveness of the functioning of APFs in the system of compulsory pension insurance from the position of comparing the accumulated return on the NPF portfolio with accumulated inflation for the period analyzed, and also according to the criterion of actually accumulated investment income with indexed income on inflation.

Pension Insurance as a Topical Direction of Life Insurance Development in the Current Context

The pension insurance system, that includes mandatory and voluntary instruments, stands out as a basics of financial security of the social society. The balanced structure of the system of voluntary and compulsory insurance allows to ensure a high social protection degree for citizens of retirement age. This circumstance stands out as a major argument in favor of taking measures by the government and the insurers community aimed at promoting voluntary pension insurance as a significant direction for the life insurance development. All this explains the relevance of research in this field of insurance. The article examines the role of voluntary pension insurance as a topical direction developing life insurance in general. It presents the main problems of the current system of compulsory pension insurance which can be solved only by adequate development of the voluntary form of pension insurance. It specifies the advantages of development and use of products of this insurance type for the government, insurers and policyholders. It brings forth practical examples and calculations that demonstrate the relevance of concluding the contract of voluntary pension insurance for individuals in the current context.

How to prolong labour market participation in the Republic of Croatia?

The paper analyses the labour market for older workers from the point of view of prolonging their participation in the labour market in the Republic of Croatia. Due to unfavourable demographic situations, longer life spans and the threats to pension insurance systems, there have been many initiatives, in a number of countries, in the last couple of decades that have the goal of facilitating longer working lives. The current analysis has shown that older workers in the Republic of Croatia, despite their economic activity being lower than that of other countries, do have the additional working capacity that can permit longer labour market participation, without compromising the employment of younger cohorts. It has also shown that the labour market of the Republic of Croatia is not well suited to older age groups and that those with higher education and financial security, those who generally have the most opportunities, have the best chances for longer labour market participation; while the odds are against longer labour market participation for those with lower education, socioeconomic status and health, even if they might sometimes be willing to participate in the labour market.

Social Consequences of Retirement Age Raising

Raising the retirement age traditionally is considered a main way to stabilize in the medium term financial position of RPF and reduce the transfer from the federal budget to the budget of Fund. At the same time essential decrease in a share of the population living up to a new retirement age is not taken into consideration. The reserves of stabilization of pension system which are behind its framework and demand change of economic policy (for example, fight against the hidden salary and shadow employment), as a rule, are not considered, and extremely limited opportunities of pension system to self-regulation reduce space for maneuver and therefore demand radical institutional reforms. The first problem which is solved by raising the retirement age in the state insurance pension system – financial security of pension liability before everyone insured persons and these obligations have to be adequate to the pension rights, i.e. insurance pensions have to correspond to the contribution of a person to pension system during able-bodied period of life. The second task is a guarantee for the population of an opportunity to realize the worthy standard of living during the disabled period. The third task – long-term financial stability of pension system allowing to realize both social tasks. Results of a research on actuarial justification of retirement age are presented in article. Unlike numerous works on justification of its increase, proceeding from dynamics of life expectancy of the population, the retirement age is considered within demographic and macroeconomic restrictions. Not only cut in expenditure on not granted pensions, but also a condition for realizing of the insurance pension rights of various categories of the insured persons is accepted by criterion of estimation of a retirement age. Proceeding from this criterion, maximum permissible borders of increase in a generally established retirement age within the system of mandatory pension insurance for the purpose of the solution of the tasks set in the government strategy of long-term development of pension system of the Russian Federation are confirmed.

Суперечності понятійного апарату в дослідженні системи пенсійного забезпечення

Мета статті. Встановлення елементів системи пенсійного забезпечення, а також логічного зв’язку між основними поняттями в дослідженні даної системи.
 Наукова новизна. У статті проведена систематизація основних понять системи пенсійного забезпечення, вказані їх відмінності, встановлено елементи зазначеної системи.
 Висновки. Державна політика є родовим поняттям по відношенню до державної соціальної політики, яка включає в себе політику соціального захисту і політику соціального забезпечення. У свою чергу їх складовими є пенсійна політика і політика пенсійного забезпечення.
 Підсистемами системи пенсійного забезпечення є солідарна система загальнообов’язкового державного пенсійного страхування; накопичувальна система загальнообов’язкового державного пенсійного страхування та система недержавного пенсійного забезпечення. Ці підсистеми системи пенсійного забезпечення можна розглядати як окремі самостійні системи зі своїми елементами: особами, від імені та на користь яких здійснюється накопичення та інвестування коштів; підприємствами, установами, організаціями та фізичними особами, що здійснюють перерахування внесків до системи накопичувального пенсійного забезпечення; юридичними особами, які здійснюють адміністративне управління пенсійними фондами та управління їх пенсійними активами; зберігачами; страховими організаціями.
 Термін «пенсійний фонд» має два значення: цільовий фонд, який створюється відповідно до законодавства і акумулює страхові внески застрахованих осіб; центральний орган виконавчої влади, що реалізує державну політику з питань пенсійного забезпечення. Поняття «солідарний рівень» доцільно застосовувати до осіб, які отримують забезпечення на цьому рівні, а солідарну систему слід розглядати як сукупність елементів, що, виконуючи визначені функції, реалізують завдання щодо забезпечення пенсіонерів саме на цьому рівні.

Necessity of introduction of pension disability insurance reform

Life is a natural course, full of the uncertainty and temptation of every human being. In order to make our lives peaceful and have a peaceful future, we try to provide various ways to ensure that we make our lives safer. The pension insurance system is very important for every country from a social, economic and financial point of view. Pensions are primarily a social category because they represent the income of people who are unable to earn a living due to age or illness and as such reflect the social function of the state. In most of the transition countries, reforming processes in the field of pension insurance have been initiated or are under way in order to establish a sustainable functioning model. In Serbia, in the period from 2001 to 2016, attempts were made to reform the pension insurance system in order to solve the inherited unfavorable situation, but still without significant effects. An integral part of the paper is the results of the research conducted with the aim of obtaining the attitude of Belgrade residents about the existing mandatory pension insurance and trust in the same, as well as the view on the need to take additional measures and activities in order to realize a comprehensive reform in the field of pension insurance. Starting from the established goal of the research, it can be concluded that the hypothesis was established that the inhabitants of Belgrade are not satisfied with the existing situation in the pension insurance system, that they consider the pension fund to be vacant and that as such it does not guarantee safe pensions. This indicates that additional measures and activities of the competent state authorities and institutions should be undertaken in the forthcoming period in order to fully implement the projected reform goals in the field of pension insurance.

Pension reform in Ukraine: reality and prospects

The pension is a kind of indicator of the welfare of the state. According to Article 46 of the Constitution of Ukraine, citizens have the right to social protection, which includes the right to provide them in case of complete, partial or temporary disability, unemployment, as well as old age. Similar safeguards are found in the fundamental laws of many European states, since social protection is one of the main functions of a state and means recognizing its responsibility to help the weak and disadvantaged, those who are unable to earn a decent living and secure their old age. At the present stage of socio-economic development of Ukraine, one of the priorities is social security of the person, which is becoming the main driving force of society rather than a production factor. It is the state's responsibility to guarantee every citizen sufficient standard of living, to take care of both current and future retirees. At the same time, it should be noted that the pension reform in Ukraine, which started in 2003, is moving slowly, especially with regard to non-state pension provision; there is still a long way to go before introducing a three-tier system. The number of pensioners is increasing year by year, despite the increasing requirements for retirement age and seniority, and pension payments remain, in most cases, extremely small, which is unable to provide even the most necessary human needs, let alone decent standard of living. The article analyzes the current state of the Ukrainian pension system, reveals the essence of pension reform, analyzes the relationship and impact of the financial crisis on the pension system. Prospects for the development of the pension system, the importance of the accumulation system and the system of non-state pension insurance are substantiated and proved, the main innovations of the pension system, the advantages and disadvantages of the pension reform are identified. The analysis of the level of pension insurance in Ukraine in comparison with other countries is carried out and the problems of implementation of the accumulation system and the system of non-state pension insurance in Ukraine are identified.

НАКОПИЧУВАЛЬНЕ ПЕНСІЙНЕ ЗАБЕЗПЕЧЕННЯ ЯК ФАКТОР РОЗВИТКУ ЕКОНОМІКИ

Важливою метою накопичувального пенсійного забезпечення є створення ефектів економічного розвитку, оскільки пенсійні виплати з усіх компонентів пенсійної системи, накопичувальних чи ненакопичувальних, фінансуються за рахунок обсягів виробництва у країні.У контексті фінансового посередництва накопичувальне пенсійне забезпечення (накопичувальна система загальнообов’язкового державного пенсійного страхування та система недержавного пенсійного забезпечення) сприяє економічному зростанню завдяки, по-перше, трансформації довгострокових заощаджень у довгострокові інвестиції, а по-друге, забезпеченню технологічних змін і структурних зрушень в економіці.В Україні накопичувальне пенсійне забезпечення не дістало належного розвитку (активи системи накопичувального пенсійного забезпечення становлять лише 0,14% від сукупних активів фінансових корпорацій), а отже, не має будь-якого істотного впливу на економіку.Потужними поштовхами для розвитку накопичувального пенсійного забезпечення в Україні здатні стати, по-перше, запровадження з початку 2019 р. накопичувальної системи пенсійного страхування, а по-друге, якісне оновлення інституційних умов недержавного пенсійного забезпечення у зв’язку з імплементацією вимог Директиви 2016/2341 від 14 грудня 2016 р. про діяльність установ трудового пенсійного забезпечення та нагляд за ними (IORPs) (переглянута) та реалізацією заходів, передбачених Комплексною програмою розвитку фінансового сектору України до 2020 року.Позитивний економічний ефект від впровадження корпоративних пенсійних програм також може бути досягнутий на рівні окремих корпорацій. Корпоративне пенсійне забезпечення як прояв корпоративної соціальної відповідальності сприяє зростанню соціального ресурсу корпорацій і одночасно виступає гнучким інструментом управління персоналом в умовах наростаючого дефіциту робочої сили та посилення на ринку праці конкуренції з боку роботодавців.

PENSION INSURANCE AND PENSION REFORM IN UKRAINE

Pension provision is an essential component of social protection of the population, it is one of the most urgent problems of the state's social policy, and the welfare of Ukrainian citizens depends on the success of the pension system. Therefore, the purpose of the article is to study the system of pension insurance of Ukraine and the prospects for its reformation. To address this goal, the historical-comparative method, systematic and structural analysis have been used. The article deals with the basic principles of pension insurance and the mechanisms of implementation of the three-tier pension insurance system. It is determined that in Ukraine there is a solidarity system of pension insurance based on the principles of solidarity and subsidization and implementation of pension payments and provision of social services at the expense of the Pension Fund. The prospects of transition to a pension insurance system based on the principles of compulsory accumulation of pension funds and financing of expenditures for payment of life insurance pension contracts and one-time payments on conditions and in the manner prescribed by law and non-state pension insurance based on the principles of voluntary participation of citizens, employers and their associations in the formation of pension savings for the purpose of obtaining pension benefits by citizens, which will be complementary to retirement benefits from the first and second levels. The main stages of the formation of pensions in Ukraine are outlined, in particular key changes in the pension legislation and their impact on the pension provision of Ukrainian citizens.

V. Kоzlova, The socio-economic essence of the pension insurance system of the population.

The article conducted a study of the socio-economic essence of the pension insurance system in Ukraine. The rationale is given that one of the most important components of state activity in the field of social policy is legislative regulation and organization of pension provision for citizens. Pension provision is a system of social relations, ensures the well-being of citizens upon retirement age, disability, loss of the breadwinner at the expense of the compulsory state pension insurance, funded system, budget support, informal financial and non-financial support for the elderly at the expense of the family or public organizations. Since pensions can also be provided from informal sources within a family or community, it should not be identified with the pension system, which is understood as a complex of institutions, relations and mechanisms through which financial resources are formed and distributed among the disabled population upon occurrence social risks in the form of pensions. It is substantiated that the essence of pension provision is manifested in various aspects such as social, economic, financial and legal. Based on various aspects, the objectives of the pension plan are to protect from poverty and ensure a decent standard of living, redistribute incomes from the active working generation to the benefit of a generation of pensioners, form financial sources and pay pensions, and ensure equal rights of participants in the pension plan. It was concluded that in order to ensure social justice in the pension system it is necessary: to improve the procedure for recalculating pensions to working pensioners; eliminate disproportions in the pension provision due to the preservation of special pension programs for certain categories of citizens who have certain conditions of pension provision, and gradually make the transition to uniform rules for granting pensions; to streamline the size of the allowances and increases to the pension for different categories of persons, depending on the subsistence minimum for disabled persons, in order to avoid using different approaches to determining their size.