The Pension Fund of Ukraine: Rethinking Risk Management during the Creation

Abstract

during the The article is dedicated to the establishment and first steps of the work of the Pension Fund of Ukraine. After the declaration of independence and the creation of a democratic new Ukraine among other issues, the question arose of the formation in Ukraine of its own financial body that would provide retirees with retirement benefits. In early 1990, a special working group was set up under the USSR Council of Ministers, and the necessary legal framework was developed during the year. On December 21, 1990, the decision was made to establish the Ukrainian Republican Branch of the USSR Pension Fund. The resolution testified not only the emergence of a new financial institution in the state, but also the beginning of new revolutionary changes in the ideology of the functioning of the pension system, which now did not rely mainly on the state budget, but received targeted sources of replenishment, its own mechanisms for their accumulation and the distribution and, most importantly, the opportunity to involve other social partners — employers and employees — in financial participation in the resolution of retirement benefits.