Pension system in the context of developing informal institutes.

Abstract

In the paper we consider some aspects of developing modern three-pillar pension (retirement) plans of Ukraine in the context of institutional theory. We analyze the concept of insurance as amechanism for accomplishment of social tasks. It is emphasized that its components consisted of joint system of obligatory retirement insurance and defined contribution pension plans are universal instruments to improve not only social security system but also the country’s economic growth. Insurance contributions are after all substantial sources for forming domestic investment resources, investment environment and innovative development of the economy. Our study is focused on the problems related to the integration of the reformed pension (retirement) plans into domestic public infrastructure. We point out that one of the reasons for occurrence of the problems related to the three-pillar pension system is imperfection of the institutional environment. Analysis of its informal component enabled us to make conclusion on the peculiar role of this component in efficient functioning of pension system. Separating and analyzing the major categories of the informal institutional sector we outline the focus of their influence on the formation of the problem-plagued trends inside the boundaries of pension relations. We note that from viewpoint of the institutional theory accomplishment of such problems lies in the adjustment of system imbalances between formal and informal components. In our study we employed a complex of general scientific methods: data generalization, grouping and comparison of the categories being investigated. Abstractive generalizations and conclusions were being made in terms of logical method. Proposals have been developed for improvement of the concept of modern pension system of Ukraine for the purposes of further social and economic development of society and accomplishment of social tasks