REFORMING THE PENSION SYSTEM OF UKRAINE IN THE CONDITIONS OF TRANSFORMATIONAL CHANGES
DOI:
https://doi.org/10.34132/pard2022.16.12Keywords:
Pension system, pension reform, levels of the pension system, accumulative pension systemAbstract
The need to reform the pension system is due to a number of factors: economic, demographic, socio-political. This problem is currently relevant in many countries of the world, regardless of the level of economic development, which is due to both demographic factors (population aging, changes in its age structure) and economic factors related to the global crisis. However, it must be solved by carefully weighing all the factors and possibilities of both the state and its citizens, taking into account national traditions and peculiarities of mentality. At the current stage of the development of the national economy in the state, the problem of pension provision of the population is becoming more and more relevant. As you know, pension provision is one of the types of social security for disabled citizens in Ukraine.
The pension system of Ukraine is a set of legal, economic, organizational institutions and norms created in the state, the purpose of which is to provide citizens with financial support in the form of a pension. With the adoption of the Law of Ukraine "On Universal Mandatory State Pension Insurance" [1] in 2004, the implementation of the system reform of pension insurance began, which was especially discussed by the public and experts in the pre-war period. After the end of the war, the issue of reforming the pension system became more urgent. The government plans to finally launch the second, accumulative link of the pension system, so that employees not only "discount" payments to current pensioners, but also save money for themselves.
In early April 2021, Prime Minister Denys Shmyhal promised to introduce such a system by the end of 2021. Although back in May 2020, he assured Ukrainians about the realism of launching the storage link from January 1, 2021.
Almost every government has promised to carry out pension reform, but none has done so. This has been going on for 18 years - that's how long the law has been in effect, which provides for the existence of a cumulative level of pension provision.
In the article, the author tries to reveal the reasons that prevent the authorities from carrying out the reform, thanks to which every Ukrainian will receive a decent pension in old age.
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