INTRODUCTION
Pension provision in the world faces two significant and reinforcing chal-lenges. Demographic change and global economic pressure affect the provision of public pensions by increasing social spending and depending on the method of financing. The base of government's revenues from which these programs are funded argues that “permanent crises of social security budgets caused by in-creasingly competitive global markets, persistent unemployment and demograph-ic ageing remind that social policy seems to be about adapting welfare states, in-cluding pension systems, to harsher economic climates”.
The basic subject of pension reform is presented as "re-establishing the compatibility of social policies with socioeconomic changes by means of econom-ic competitiveness and cost containment in the area of pension system. Thus, all modernization in pension provision should be based on the overview of the economy-based perspective on the financial aspects of state and local public pen-sions.
Based on all the foregoing, the purpose of this work is a structural and the-oretical analysis of the pension provision. To achieve the goal in the work the fol-lowing tasks are planned:
- to characterize the term “pension provision”;
- to look through the pension system in the United Kingdom;
- to show the dependence of the pension reform in Belarus;
- to analyze the pension schemes in Belarus.
Pension provision occupies an important place in the economic and social policy of any state. Today, the pension system, in most countries have reached their maturity. This means that the majority of workers is covered by pension plans and are eligible for a full pension.
Over the past 15-20 years, many economically developed countries have taken steps to modernize their pension systems in order to adapt them to chang-ing demographic and economic conditions, as well as to give them greater flexibil-ity and financial stability.
Pension allowances in the Republic of Belarus are a vital component in the social protection system. Pension provision covers every disabled person perma-nently residing within the country, regardless of citizenship, past activities or other circumstances.
Pension reform in Belarus is necessary and long overdue. Yet raising the re-tirement age alone will not eliminate all strains on the social security system. In the end, the state should diversify its strategies and develop funded pension plans. However, this option will be viable only in the conditions of a stable econ-omy, thus requiring genuine commitment to structural reforms.
1. PENSION PROVISION – A MATTER OF NATIONAL IMPORTANCE
Pension provision occupies an important place in the economic and social policy of any state. Today, the pension system, in most countries have reached their maturity. This means that the majority of workers is covered by pension plans and are eligible for a full pension.
In many modern states decided to take care of his old age for many years before its occurrence. In most countries the retirement age out in 65-70 years. Now in Europe due to the financial crisis, discuss the issue of increasing the re-tirement age to 75 and even 80 years. According to experts, this would make pension and health care more accessible and reduce the demographic burden on employment. Raising the retirement age allows people to work longer, which is somewhat easier heavy burden on the young.
Pension systems use two financial mechanisms - distribution and accumula-tion. The distribution system is based on an agreement generations of pension contributions paid to disabled workers, when current employees become disa-bled, they will pay pension contributions of future generations.
With contributions funded system that deducts the employee to accumu-late, and are not earmarked for pensions current generation of pensioners. Upon reaching retirement, age pension will be paid to the employee of his savings.
The basic premise is now deployed pension reform - modernization. Mod-ernization - this update, rebirth, which is based on the existing scheme pension and social protection policies population.
An important part of social protection policies in the developed countries is the special working conditions for older people - the ability to use a flexible work schedule, maintain the quality and care for the health. Often, a few years before retirement people change their work: start work as consultants, craftsmen training, go into the family business or just starting a new activity [5].
Old distribution system is completely built on the principle of solidarity - that is, people kept working pensioners. In retirement age was numerically small generation past war, famine and deprivation, while the working age entered the largest generation of people born in the postwar decade, when there was a baby boom.
The key idea of the new pension system is the accumulation. Citizens have the opportunity to save money for retirement in the period of active employment.
The two employees with the same seniority and wages pension amount can vary considerably. Everything depends on how conscious worker came to the formation and accumulation of their retirement capital.
These people will be retiring over the next 15-20 years. In the same age working in this period will include the paucity of the generation born in the 90s of last century, when there was a serious decline in fertility. Since cumulative pension mainly formed due to pension contributions from employers, then de-scribed the demographic imbalance will inevitably lead to a reduction in pen-sions.
2. PENSION PROVISION IN THE UNITED KINGDOM
UK Pension Provision falls into seven major divisions; Basic State Pension, State Second Pension, Occupational Pensions, Stakeholder Pensions, Group Per-sonal Pensions and Personal or Individual Pensions. Personal Accounts, auto-matic enrolment and the minimum employer contribution will be new policies joining these from 2012.
The state provides basic pension provision intended to prevent poverty in old age. Men over the age of 65 and women over the age of 60 are entitled to claim state pension, although from 2010 the state pension age will start to be equalized and for women will rise, eventually reaching the age of 65 by 2020.
The basic state pension was introduced in the United Kingdom in January 1909. A pension of £19 per week, or £28 per week for a married couple, was payable to a person with an income below £21 per annum (equivalent to £1,600 today), following the passage of the Old Age.
The qualifying age was 70, and the pensions were subject to a means test.
State pension comprises three main elements - the basic pension, additional pensions and pension guarantee.
Qualification for Basic State Pension is a "contribution based" benefit, and depends on an individual's National Insurance contribution history. For someone with the full number of qualifying years (years in which National Insurance con-tribution was paid - typically 44 for a man and 39 for a woman, although this re-duces to 30 years on 6 April 2010), it is payable at a flat rate of £90.70 per week. Less pension is paid for someone with fewer qualifying years. An "Age Addition" was introduced in 1971, with 25p per week added to the State Pension for people aged 80 or over. It remains at this level.
State Pension can be claimed from State Pension age: currently 65 for men and 60 for women (rising to 65 by 2020). It is also possible to defer claiming the State Retirement Pension at pension age. Deferring claiming in this way currently gives an enhancement of approximately 10.4% to the pension per year deferred, or a lump sum and an unenhanced pension. The enhancement is actually 1% per 5 weeks the pension is not claimed, and the lump sum is the amount not claimed plus interest at 2% over the Bank of England's base rate [4].
Political pensions either reward a career in domestic politics or are awarded in the colonial context not on grounds of justice, contract or socio - economic merits, but as a political decision, in order to take a politically significant person (often deemed a potential political danger) out of the picture by paying him or her off, regardless of seniority.
3. PENSION PROVISION IN BELARUS
Pension allowances in the Republic of Belarus are a vital component in the social protection system. Pension provision covers every disabled person perma-nently residing within the country, regardless of citizenship, past activities or other circumstances.
As of early 2016, almost a third of the Belarusian population received a pension. Most do so according to the law ‘On Pension Provision’. Pension provi-sion for military persons, for civil servants, for those affected by the Chernobyl disaster and for some others follows special rules.
Pensions are paid:
- according to age and/or disability;
- in cases of loss of breadwinner (including to parentless children);
- on the basis of career length;
- for special merits to the Republic.
Labour pension is paid to men on turning 60 (on condition of having worked for at least twenty-five years) and to women on turning 55 (having worked at least twenty years). In addition, compulsory insurance contributions must have been paid for at least fifteen years: into the State Extra-budgetary Fund of Social Protection for the Population of the Republic of Belarus.
To allow early pensions for parents of children with disabilities, mothers who have raised five or more children, citizens disabled since childhood, war in-valids, and mothers of soldiers who have died during their performance of mili-tary duty, payments must have been made for at least five years.
To realize a pension due to disability or loss of a breadwinner, special cir-cumstances are set regarding career length and the duration of insurance pay-ments is disregarded.
Retirement pensions are determined based on length of service (up to forty-five years for men and forty for women) and earnings from which insurance payments were calculated. These are limited to four times the average wage in the country for individuals (with experience of thirty-six years or more for men and thirty-one years or more for women). The disability pension also depends on the degree of disability.
The career length calculation of pensions includes periods of work for which insurance payments were made, as well as other socially significant activi-ties, such as military service, care for children aged up to three years and care for a disabled child or an invalid of the first group [1].
In 2015, labour pensions were calculated based on earnings across twenty-one consecutive years of work. During periods of work or entrepreneurial activi-ty, actual income is taken into account. For other periods of activity, actual earn-ings are calculated based on 40 % of an average Belarusian salary, in the corre-sponding months.
From 2016, the period of calculation of earnings will increase by one year. The calculated pension cannot be less than the minimum amount set by legisla-tion.
CONCLUSION
Recent measures in the field of pension provision aim to encourage citizens into long-term legal employment, contributing towards their pensions. They mo-tivate able-bodied citizens to receive pensions in their old age, as well as to pre-vent parasitical approaches.
Pension schemes are the most important component of the social protec-tion system. At present, more than 2.4 million people receive various types of pensions from the agencies of labour, employment and social protection.
Pension reform in Belarus is necessary and long overdue. Yet raising the re-tirement age alone will not eliminate all strains on the social security system. In the end, the state should diversify its strategies and develop funded pension plans. However, this option will be viable only in the conditions of a stable econ-omy, thus requiring genuine commitment to structural reforms.
Pension provision is of vital importance to the state, all individuals and employers. Through taxes, contributions and payments, it affects at nearly all stages in people’s lives. Yet it is little understood and rarely subject to rigorous analysis.
The pace of change in pension provision, both public and private, has been rapid in recent decades. Such change is particularly difficult to analyze and un-derstand in an area where the consequences of decisions and policies early in an individual's working life can still be having an effect 70 years later. The aim of the work has been to demonstrate that further change is inevitable, even where it appears to take the form of unchanged government policy. For many individuals, their pension will be the largest asset they ever own; careful consideration of the future development of the pensions sector, and the role of government in it, is vi-tal.
In conclusion, it must be recognized that all the changes do not radically re-form pension provision. These measures are aimed at further improving the sys-tem while preserving its basic principles. Modernization of pension includes rais-ing the retirement age for women, the union of all existing pension funds into one, maintaining the mandatory occupational pension contributions provided by employers. This article analyzes the pension reform focusing on the advisability of raising the retirement age for women and the unification of pension funds.
АННОТАЦИЯ
Основным показателем уровня развития общества является степень социальной защиты населения. Одним из видов такой защиты, предоставляемой государством, является пенсионное обеспечение.
Пенсионное обеспечение - обеспечение обществом доходов престарелых, инвалидов и семей, потерявших кормильца, в порядке, установленном законодательством.
Пенсионная реформа, проводимая на протяжении многих лет, позволила существенно изменить условия пенсионного обеспечения в лучшую сторону. Она представляет собой совокупность мер и решений экономического, организационного, политического и правового плана.
Реформа позволила осуществить подход накопительного принципа в пенсионном обеспечении. Величина выплат в таком случае зависит от взносов и их инвестирования. Это позволяет обеспечить стабильный рост государственной экономики в целом.
За это время в мировой практике разработаны различные модели пенсионных систем. Социальная модель предоставляет пенсионерам определенный минимум средств независимо от трудового вклада: стажа работы, уровня оплаты, суммы страховых взносов и т.д. Другие модели пенсионной си-стемы считаются трудовыми пенсиями. Первая устанавливает зависимость величины пенсии от трудового стажа, оплаты труда, суммы страховых платежей. Вторая предполагает формирование пенсии по накопительному принципу: страховые взносы зачисляются на пенсионный счет в лицензированную финансовую компанию, которая для увеличения этих средств размещает их на финансовом рынке. Существуют, как правило, проблемы современного этапа и необходимость дальнейшего совершенствования системы пенсионного обеспечения.
Предметом исследования в данной работе является сущность пенсионного обеспечения в разных государствах.
Актуальность темы не оставляет сомнений, так как затрагивает интересы каждого гражданина на любом этапе его жизни.
Существующая система пенсионного обеспечения предусматривает максимальную информированность населения обо всех возможностях инвестирования и преумножения своих пенсионных накоплений. Следовательно, изучение и освещение данной темы уже сейчас закладывает основу стабильного и обеспеченного будущего.
Работа состоит из введения, трех глав и заключения.
Во введении обосновывается актуальность выбранной темы, формулируется цель и определяются задачи.
Первая глава посвящена изучению понятия «пенсионное обеспечение», его основных условий, проблем.
Во второй главе дано описание пенсионного обеспечения в Объединен-ном Королевстве.
В третьей главе дана информация о пенсионном обеспечении в Республике Беларусь, реформах и схемах.
Заключение содержит выводы об изложенной в главах информации.
