The funded level of the pension system is effective only in countries with stable financial system – expert

Накопительный уровень пенсионной системы эффективен только в странах со стабильной финансовой системой – эксперт

The funded level of the pension system can be introduced only in those States where a stable financial system works in General.

This commentary, ГолосUA said political analyst Alexei Yakubina.

“You have to understand that such a system can work only if there is a retirement savings banks and the clear understanding that they will not be exposed to significant risks of closure, bankruptcy, and so on. Next, the storage system can operate only in those countries where there is relatively low devaluation of the national currency. In countries where a high level of national currency devaluation, for example, in Ukraine. Imagine, people would retirement savings, and there is inflation, which reduces it 2-3 times. And their savings, they worked many years, automatically decrease, depreciate significantly,” – said the expert.

A. Yakubina added that if the state where the financial system is stable, promise retirees a rich future thanks to the introduction of the funded pillar, these statements – lies and manipulation.

“When we say that the transition to a funded system is a rich future, it is manipulation. Because while Ukraine has not resolved the issue with the stability of the financial system, plus the devaluation nuances, it is difficult to say that the change will be positive for the population. But such a change is possible only in those countries where there is a stable financial system where there are no large devaluation of currency where the government can be an effective checker and can not encounter fraudulent pension Fund, which in a few years, collect the money, will be abroad and all, it appears that Pension Fund is bankrupt,” the analyst added.

Recall that in 2019, the second (accumulation) level of the pension system will not be introduced, however, agreed with the Cabinet bill since the spring ready for submission for consideration to the Parliament. This was reported by Minister of social policy of Ukraine Andriy Reva, reports the Country.

During the final press-conference on results of work in 2018 on Saturday in Kiev, Reva reminded that the bill on the storage system was agreed and approved by the relevant Committee of the Verkhovna Rada in the spring of this year, but after that was never introduced in the Parliament hall.

“No obstacle from the government for this bill, no,” Reva added.

At the same time, the Minister said that later this topic was the subject of negotiations with the International monetary Fund. “And we asked the question: in a year you are considered in the Verkhovna Rada the law (to the storage system – Approx.Ed.) and if now you will be in haste to enter it, it may unbalance your financial system,” he said.