SOCIAL INSURANCE IN UKRAINE IN THE CONTEXT OF THE PENSION REFORM
Journal Title: Економіка розвитку - Year 2012, Vol 62, Issue 2
Abstract
Main problematic aspects in the current Ukrainian social insurance system functioning have been studied. It has been demonstrated that the main problem of the proper pension reform implementation is the absence of necessary conditions. Business entities social responsibility has been specified. Special attention has been paid to the problems of business entities' social responsibility implementation and the necessity to reduce common load on businesses in the form of obligatory payments. Pension system hard state regulation mode implementation expediency has been emphasised.The social responsibility of business entities in Ukraine can develop only with substantial incentives, which take into account generally weak local business entities financial position. Contribution rates on different social insurance types should be coordinated considering the need to reduce overall burden on businesses in the form of obligatory payments. One of the most important tasks is increase in the share of wages in the GDP, because the reduced wage levels will lead to insufficient insurance contributions to social insurance funds. The main obstacle to the Ukrainian pension reform completion pension reform is the lack of conditions necessary in order to introduce the second pension system level. Until these conditions are created, the most promising way for the pension reform is the further development of the third pension system level (professional pension schemes and corporate pension plans introduction) and finding ways to exonerate the first pension system level from certain unjustified possibilities for early retirement. Pension system effective state regulation of the grows in importance during pension reform implementation.
Authors and Affiliations
Olga Kozmenko, Julia Konoplina
Keywords
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