13:59 11.10.2017

Govt approves plan on introduction of funded pension system by 2019

2 min read
Govt approves plan on introduction of funded pension system by 2019

The Cabinet of Ministers of Ukraine has approved an action plan on the introduction of the funded pension system for 2017-2018 with the necessity of submitting a bill on the size of insurance deductions paid to the funded system.

An Interfax-Ukraine correspondent has reported that the decision was made at a government meeting on Wednesday.

According to the draft decision, a copy of which has been sent to Interfax-Ukraine, in Q1 2018, it is planned to draw up and submit a bill on the size of insurance deduction and the insurance deduction base amount in the funded pension system. The bill will determine the rules and general requirements to the obligatory and voluntary programs of the funded pension system.

Until the end of 2017, it is planned to draw up bills on the criteria for selecting non-state pension funds; creation of conditions for free movement of capital and introduction of new financial instruments for investment; ensuring transparency of activities and reporting of the funded pension system participants; improvement of requirements to the companies that manage pension assets; determining the rules of selecting and changing the non-state pension fund, which takes into account contributions to the funded pension system, and submit them to parliament.

Until April 2018, it is planned to submit bills on guaranteeing the rights of participants in the funded pension system to the Verkhovna Rada.

In addition, before 2018, it is planned to submit to the parliament a bill on the redistribution of powers between the National Commission for Financial Service Markets Regulation and the National Commission for Securities and the Stock Market in regulating the activities of participants of non-state pension funds, including taking into account the need to introduce supervision over the activities of the participants of the funded pension system on the basis of the risk assessment.

As reported, on October 11, 2017 the law on pension reform took effect. The law envisages the introduction of the funded pension system from January 1, 2019.

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