Pension Providing of Civil Servants in Ukraine: Reality and Reform Mechanisms

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Pension Providing of Civil Servants in Ukraine: Reality and Reform Mechanisms

Journal Title: Право та державне управління - Year 2016, Vol 1, Issue

Abstract

Problem Setting. Professional activity of civil servants is aimed at practical Implementation of tasks and functions, which are set for the governmental bodies. These persons are highly responsible for accomplishing of their duties and have special restrictions as for taking part in other activities, which might improve material state of civil servants and their families. According to this, legislation should provide appropriate provision of pensions. Right for civil servant pension is given to those who were working in the governmental bodies and their apparatus as for the 1 January 1994, since the Law of Ukraine on Civil Service came into force. Since then the system of provision of pensions for civil servants has faced dramatic legislative changes, however some problems are still unresolved, e.g. special pensions. Recent research and publications analysis. In the works by P.D. Pylypenko, I.M. Syrota, S.M. Synchuk, V. Ja. Burak historical aspects of development as well as different approaches to necessity of reforming of provision of pensions system for civil servants were analyzed. Some aspects of provision of pensions for civil servants were analyzed in the works by Ju.P. Bytiak, S.D. Dubenko, T.L. Zheliuk etc. Aim of the article: basing on the analysis of real situation in the area of provision of pensions for civil servants in the process of formation of the state policy in this area to produce mechanisms of support of stable social guarantees for special category of working citizens, who have gained the right for pension of civil servants and to resolve the problem of fair unified social tax. Main Body. Financial and social security of civil servants has great impact on quality and efficiency of public service. Financial and social warranties for civil servants include: right for remuneration of labour (monetary remuneration), pension provision, legal regulation of working hours and resting time, right for annual and additional holidays, additional warranties of social provision. According to the Law of Ukraine “On mandatory state pension insurance” of 9 July 2003 №1058-IV pension is a monthly payment in united system of mandatory state pension insurance, which is paid to the insured person when he or she reaches retirement established by the Law or becomes a disabled person, or it is paid to his/her relatives according to legally identified cases. Main laws which determine the pension of civil servants are Law of Ukraine “On the Civil Service” and Act of the Cabinet of Ministers “On Some Issues of Improvement of Setting Wages Amount for Pension Calculation” of 31 May 2000 №865. According to the documents mentioned above such types are: fixed official salary, additional payment for rank and seniority pay, which is calculated in amount, set at the moment of retirement of the civil servant. According to the Law of Ukraine “On mandatory state pension insurance” pension system of Ukraine consists of 3 levels. The first level is a united system which is based on the principles of solidarity and subsidizing and pension remuneration out of the funds of Pension Fund under terms and in consequence as provided for in the legislation. The second level is a storage system, which is based on the principles of equity accumulation of insured persons in the Saving Fund or in appropriate non-governmental pension funds – subjects of the second level. The third level is the system of non-governmental provision of pensions, which is based on the principles of voluntary participation of the citizens, employers and their unities in the formation of pension savings for receiving pension expenses under the terms and in consequence as provided for in the legislation on non-governmental provision of pensions. In general, there is no “ideal” scheme for provision of pensions for civil servants. It’s the matter of priorities and conditions that exist in the country under the question. In spite of this, it’s worth underlining several main principles, which are equal for all governmental bodies. Efficient pension system for civil servants should be stable, trustworthy and flexible enough to be adjusted to economical, demographical and other changes. It should be understandable and easy to manage. Such a scheme should be perceived as fair and it should be linked with the results of the work, which are measured by the amount of salary and amount of pension. Pension expenses and expenses on the pension financing should be reasonable and predictable. Conclusions. As a conclusion it’s worth saying that the problem of provision of pensions for civil servants requires further reforming on the bases of rights of a human being. Changing stages of political decisions subvert system of provision of pensionary charges and don’t stimulate applications for civil service posts and staying at the service. In the state policy of social safety mechanisms of pension accounting and payment to civil servants and payment of unique social tax should be prescribed by adopting of correspondent legislative acts in the framework of general pension reform. Adopted by the Parliament of Ukraine Law of Ukraine “On Civil Service” ensures working civil servants with appropriate period of service right for higher pension. Restrictions that civil servants have, which concern prohibition of other paid activity, participation in strikes etc. should be compensated with social importance, status value of work in civil service as well as increased regulations of social security of the civil servant, appropriate pension provision in particular.

Authors and Affiliations

С. В. Заболотна

Keywords

pension pension providing pension of civil servant single social contribution public service experience insurance period

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