Pensions Under Threat: Ukrainians Pointed Out the Main Problems of Pension Reform.

Non-state pension funds are not ready for responsibility

The Ukrainian pension system is pushing for changes. According to the new law, it will consist of a state pension fund and non-state pension funds. However, advisor to the NCSCF and the Institute of Economics and Forecasting of the NASU, Serhiy Zubik, believes that non-state funds are still not ready for responsibility towards system participants. According to information from ZN.UA, the results of the activities of non-state pension funds in the field of voluntary savings raise doubts.

The main functions of non-state pension funds are collecting pension contributions, managing capital, and paying pensions to participants. However, the work of these funds is accompanied by three problems. Firstly, the founders of the funds do not bear financial and legal responsibility for their actions. Secondly, the obligations of the management to the depositors are not clearly defined. And thirdly, the management system of these funds is outdated and does not meet modern standards of corporate governance. All these problems create risks for people who rely on their pension savings in non-state funds.