Pension Fund of Ukraine is a central body of executive power, the activity of which is directed and coordinated by the Cabinet of Ministers of Ukraine through the Minister of Labour and Social Policy.
Pension Fund of Ukraine in its activity is guided by Constitution of Ukraine, the Law of Ukraine on Obligatory State Pension Insurance dated July 9, 2003 and other laws of Ukraine, by the President’s Decrees and Parliament’s regulations accepted according to Constitution and laws of Ukraine, by acts of the Cabinet of Ministers of Ukraine, other legal documents and by Regulations on Pension Fund of Ukraine approved by the President’s Decree dated March 1, 2001.
Pension Fund of Ukraine organizes within its powers the fulfillment of legislative acts, carries out the control of their realization, generalizes the practice of legislative application on matters that belong to its competence, develops propositions of legislation’s improvement and introduces them to Minister of Labour and Social Policy.
The main tasks of Pension Fund of Ukraine are:
- participation in forming and realization of state policy in the sphere of provision of pensions and social security;
- guidance and management of solidary system of obligatory state pension insurance;
- ensuring of gathering and accumulation of contributions on obligatory state pension insurance, taking stock of them;
- appointment (re-calculation) of pensions, of monthly permanent supply for judges retired and preparation of documents for their payment;
- ensuring of timely and full financing and pension payment, burial aid, other payments which according to legislation are carried out at the expenses of Pension Fund’s assets and other sources determined by legislation;
- effective and targeted usage of assets, improvement of methods of financial planning, of reporting and of control system over assets expenses.
The sources of forming the assets of Pension Fund of Ukraine are:
- insurance contributions;
- funds of State budget and state special-purpose funds that are remitted to the Fund in cases envisaged by legislation;
- charitable contributions of legal entities and natural persons;
- voluntary contributions for obligatory state pension insurance;
- other earnings according to legislation.
The Fund’s budget is confirmed by the Cabinet of Ministers of Ukraine annually.
The assets of Pension Fund of Ukraine are directed at:
- financing of the pension payment in a solidary system of obligatory state pension insurance, burial aid and other payments which according to legislation are exercised at the expense of Fund’s assets;
- service payment on pay-off and delivery of pensions;
- forming the provision of Fund’s assets;
- functioning and development of personalized calculation system of data in the sphere of obligatory state pension insurance;
- maintenance of a central machinery and central authorities of the Fund in Autonomous Republic of Crimea, oblasts, Kyiv and Sevastopol cities, departments in regions, cities and regions in cities, development of their material and technical basis;
- holding of information and explanatory work among people and fulfillment of other activity according to Fund’s tasks.
Pension Fund’s management is exercised by the Fund’s Board notably head of the Board and his deputies, quantity and personnel of which is approved by the Cabinet of Ministers of Ukraine.
Scientific, methodological and expert councils, other advisory bodies for consideration of proposals concerning realization of main tasks, discussion of the most important issues of activity may be created. The composition of such bodies and regulations about them is approved by the Head of Fund’s Board.
Pension Fund of Ukraine is a legal entity, has its own balance, accounts in authorized bank which is determined by the Cabinet of Ministers of Ukraine.
According to the transitional provisions of the Law of Ukraine on Obligatory State Pension Insurance dated July 9, 2003 the system of Pension Fund’s governing will be changed. Fund’s governing will be exercised on an equal base with state, representatives of insured persons and of employers. Board and Executive Directorate of Pension Fund will be Pension Fund’s authorities. Superior body of Pension Fund will be the Board. Board of Pension Fund will be formed on an equal base of state, representatives of insured persons and of employers in a quantity of 5 persons from each side. Board of Pension Fund will be headed by the chief elected from the members of the Board for two years term. Board of Pension Fund will charge its functions by holding meetings.
Executive bodies of Fund’s Board will be Executive Directorate of Pension Fund and correspondent to it territorial bodies. Fund’s Executive Directorate will be permanent executive body, will organize and ensure the fulfillment of Board’s decisions, will act on behalf of Pension Fund in the range and in order, which will lay down in its Statute and Regulations on Executive Directorate of Pension Fund, and will be accountable to the Fund’s Board. Territorial bodies of Fund’s Executive Directorate will be central authorities of Pension Fund in Autonomous Republic of Crimea, oblasts, Kyiv and Sevastopol cities, departments in regions, cities and regions in cities. Central authorities and departments of Pension Fund will be legal entities.
Supervisory Board of Pension Fund will be established to ensure the control over the fulfillment of legislation on obligatory state social insurance by the Fund, statutory tasks and target usage of Fund’s assets.
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