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

• Author: Vasyl H. Fatkhutdinov
• Position: Doctor of Law, Associate Professor, Honored Lawyer of Ukraine, Head of the Main Department of Pension Fund of Ukraine in Kyiv region (Kyiv, Ukraine)
• Pages: 15-23

Ukrainian Policymaker, Volume 6, 2020 15

The Pension Fund of Ukraine:

Rethinking Risk Management during the Creation

Vasyl H. Fatkhutdinov1

Doctor of Law, Associate Professor, Honored Lawyer of Ukraine,

Head of the Main Department of Pension Fund of Ukraine in Kyiv region

(Kyiv, Ukraine)

E-mail: mfkoorg@gmail.com

https://orcid.org/0000-0003-1231-5379

Fatkhutdinov, Vasyl H. (2020) The Pension Fund of Ukraine: Rethinking Risk Management

during the Creation. Ukrainian Policymaker, Volume 6, 15-31. https://doi.org/10.29202/up/6/2

The article is dedicated to the establishment and rst 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 nancial body that would provide

retirees with retirement benets. 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 testied not only the emergence of a new nancial 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 nancial participation in the resolution

of retirement benets.

Keywords: pension fund, Ukraine, socio-economic processes, risk management, pension fund

stabilization

Received: December 20, 2019; accepted: February 5, 2020

Introduction

According to the analysis of data collected by Soviet representatives in the international

organizations, of which the USSR was a member, as well as by Soviet diplomatic missions, in

the vast majority of countries the most eective source of nancial resources for the pension

system was not only and not so much the state budget, but the contributions from the population

and target funding by the employers.

© Fatkhutdinov, Vasyl H., 2020