FUNDED PENSION PROVISION AS A FACTOR OF ECONOMIC DEVELOPMENT

The important goal of the funded pension provision is to create developmental effects since pension payments from all components of the pension system, funded or non-funded one, are financed out of a country’s output. In the context of financial intermediation, the funded pension provision (compulsory state system of funded pension insurance and system of non-state pension provision) contributes to economic growth through, firstly, transformation of long-term savings into long-term investments, and secondly, promotion of technological changes and structural shifts in the economy. In Ukraine, the funded pension provision have not been adequately developed (assets of the system of the funded pension provision accounts for 0.14% of the total assets of financial corporations), and, consequently, has no significant impact on the economy. Strong impetus for the development of the funded pension provision in Ukraine should be, firstly, the introduction of the funded pension insurance system beginning 2019 and, secondly, qualitative upgrading of institutional conditions of non-state pension institutions in connection with the implementation of the requirements of the EU Directive 2016/2341 of December 14, 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (recast) and the realization of the measures provided for by the Complex Program for Development of the Financial Sector of Ukraine by 2020. The positive economic effect from introduction of corporate pension programs can also be achieved at the level of corporate units. Corporate pension schemes, as a component of corporate social responsibility, contribute to the growth of the social resources of corporations and at the same time serve as a flexible tool for personnel management under conditions of growing labor shortage and increasing competition from employers in the labor market.