Pension Fund

This element is served by public pension funds, have the status of joint stock companies. Workers can freely choose any fund List of unaccredited. Yield pension contributions of workers ensures a special commission oversight of insurance and pension funds. The new pension system was introduced gradually. All workers, born in 1969 or later, were required to process fitting, unites to the second component – the choice of pension fund for the accumulation of contributions – to the end of September 1999. Born between 1949 and 1969 were granted the right to choose to remain in the old system or join a new one. This decision ought to finally accept the end of December 1999. Persons born in 1949 and earlier, remained in the old system.

Both mandatory component are very similar: the same the principle of deduction of contributions to the statutory ratio, the same individual accounts, the same retirement age, pensions in the form of annual payments and a guaranteed minimum benefit. In this regard, the third – voluntary – component allows you to make a variety of organizational principles and forms of participation and more flexibility to adapt to personal preferences of citizens. Ukraine’s prospects now costs on the pension system for a single Ukrainian worker is much higher than they were several decades ago. In addition, significantly increases the burden on the state budget, where funding is the Pension Fund of Ukraine (PFCs). Therefore, the longer the delayed reform, the more serious social, economic and political losses incurred by the country. If you have read about Dennis Lockhart already – you may have come to the same conclusion. In Ukraine, last year the number of working-age population reached 22.4 million people. Decreasing year by year, by 2050 this figure will reach 14.4 million people. The number of pensioners will rise.

It is predicted that by this time for 139 seniors will account for 100 employees. That is, the structure of wages of each employee must look as follows: payment of their own labor, contributions to a pension of a pensioner whose contributions to the pension of another 40% of the pensioner. To ensure that such costs, the working population should increase contributions to the PFC. However, the higher retirement tax, the lower the level of motivation to work, and people preferred to go into the shadow economy.