The National Transport University Bulletin

Abstract

The article examines mechanism of functioning of non-state pension funds in Ukraine, identified problems and prospects for the development of the non-state pension system. Object of study – mechanism of functioning of non-state pension funds in Ukraine. Purpose – research of organizational and economic mechanism of functioning of non-state pension funds, identification of problems and prospects of development of the system of non-state pension provision. Method study – generalization of fundamental works of Ukrainian and foreign scientists of economists is in the internal checking system, dialectical going, fundamental positions of economic theory, system-logical approach near research of the economic phenomena and processes. Ukraine's pension system has undergone significant transformations in recent decades. At present, the system of compulsory state pension provision contains all the contributions paid by employers for the benefit of employees. The amount of pension benefits depends on the level of wages from which they were paid and the term of their payment. A great achievement for Ukraine is the introduction of the third level of the pension system – private pension provision, which is based on non-state pension funds that are subject to state regulation. However, despite the introduction of pension reform, many problems remain unresolved: the first level of the pension system is not able to fully provide people of retirement age with decent pensions, the second level – not yet implemented and under development, the third level – does not play a significant role life of the country's citizens, and therefore cannot fulfill its main purpose – the social protection of workers in the future and the development of the domestic stock market and the economy as a whole. In Ukraine, private pension funds act as financial institutions that form long-term financial resources through citizens' pension contributions and transform them into investment capital, which in the future ensures that pension fund participants receive pension contributions. Non-state pension funds are responsible for the results of their activities. The activities of non-state pension funds are aimed at attracting funds from individuals and legal entities in the form of pension contributions in order to protect them from inflation and increase, and when participants reach retirement age to make them pension payments. Thus, the formation of the investment portfolio is carried out in the interests of fund participants in order to obtain maximum profitability with minimal risk and guarantee the protection of pension assets.

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