The state shall bear full responsibility for the activity of the non-governmental pension funds, offering their legislative support, and preventing abuse, financial fraud and bankruptcy.
This statement is made in the article "Comprehensive Pension Reform Progressive Country" by Volodymyr Lytvyn, Chairman of The Verkhovna Rada of Ukraine, published in the Holos Ukrainy newspaper on February 16.
V.Lytvyn believes that the system of non-governmental pension plans should rely on the clear-cut procedure of pension fund personification; compulsory capitalization of savings; optimal diversification of investment objects; strict governmental control over the financial activity of non-governmental pension funds.
Dwelling upon the long felt changes in the system of non-governmental pension plans, V.Lytvyn focused on the prospects of the non-governmental pension funds. He believes that the public should be informed about both the advantages of the non-governmental pension plans, and the possible risks of this large-scale undertaking.
The Head of the Parliament supposes that introduction of a new pension scheme in Ukraine should be accompanied with a strict observance of applicable legislation and common international standards, "It concerns the safety of investment, which presupposes diversification of pension funds allocation, independent auditing and expert review of trust management, development of the stock market and support of liquidity of the securities, etc."
He believes that the State Commission for the Regulation of Markets of Financial Services, which regulates the non-governmental pension funds, insurance companies (in part of pension insurance), banking (in part of pension deposits), and credit unions should become more efficient.
The Head of the Parliament supports the voluntary choice of a pension scheme to fix the procedure and rates of pension fee payment, and the title to the savings in case of their investment, "It is high time we studied the increased level of the social role of the non-governmental pension funds, when the paid pension fees should be de jure property of the citizens, and their payment should be effected to the family of the payer if case of the early death of the latter."