GENESIS OF PENSION DEVELOPMENT IN UKRAINE

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GENESIS OF PENSION DEVELOPMENT IN UKRAINE

Journal Title: Юридичний бюлетень - Year 2018, Vol 8, Issue

Abstract

The article deals with the stages of the development of pension provision in Ukraine since the beginning of the nineteenth century and to the present. The formation of pension systems, which took place during a long historical period – from initial forms of religious social assistance and voluntary insurance funds to the national social protection systems that are created and regulated by the state, are analyzed. Through the processes of the evolution of forms of social protection, the formation and the pension system in Ukraine took place. This affected the stay of Ukrainian lands in certain historical periods as part of different states. It is revealed that deep traditions have the accumulation principle of pension provision and the practice of organizing non-state pension insurance. Four major periods have been investigated: “prehistoric”; the emergence and formation of an organizational, economic and legal institution (the second half of the 18th – the beginning of the 20th century); “Soviet” (1917–1991); period after Ukraine’s independence. The paper examines pension relations, which are the main form of social relations that make up the social security system. Relationships in the field of retirement provision are a mutually agreed and interconnected independent form of social relations. Particular attention is paid to the so-called three-tier pension system. It was emphasized that on July 9, 2003 the Verkhovna Rada of Ukraine adopted the Laws “On Compulsory State Pension Insurance” and “On Non-State Pension Provision”. With the above-mentioned laws, which came into force on January 1, 2004, a full-scale pension reform began in Ukraine, the introduction of a three-tier pension system: a solidarity system, a mandatory cumulative system and a system of non-state pension provision. The three-tier pension system has allowed to divide among its three components the risks associated with changes in the demographic situation. This risk sharing allowed the pension system to be more financially balanced and sustainable, which insures workers from lowering the total income after retirement and is fundamentally important and beneficial to them. It is noted that despite the fact that pension provision has been around for hundreds of years, it cannot be argued that it was finally formed. The study of domestic and world experience in the formation of pension systems proves that this system is dynamic and needs constant improvement.

Authors and Affiliations

Олена Анатоліївна Сокуренко

Keywords

EP ID EP625841
DOI -
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