The NSSMC: results of the private pension provision system at the end of the second quarter of 2021

The NSSMC informs about the results of the development of the PPP system (private pension provision) as of 30.06.2021.

As of June 30, 2021, the State Register of Financial Institutions contained information on 63 PPFs (private pension funds), including 58 existing ones, as well as 19 administrators of such funds. The total number of PPF participants was 888.3 thousand people, while in 2020 there were 879.9 thousand.

As of June 30, 2021, the administrators of PPFs concluded 92.4 thousand pension contracts, which is 12.8% (10.5 thousand) more than in the same period of 2020.

The number of depositors as of June 30, 2021 was 86.2 thousand, of which the majority were individuals – 84.1 thousand (97.6%). Compared to the same period in 2020, this figure increased by 13.1% (10.0 thousand).

The total value of assets formed by PPFs as of June 30, 2021 amounted to 3,712.9 million UAH, which is 9.4% (320.1 million UAH) more than in the same period of 2020.

As of June 30, 2021, pension payments amounted to1,196.2 million UAH , which is 16.2% more than in the same period of 2020. Payments were made to 88.2 thousand participants, i.e 9.9% of the total number of participants.

One of the main qualitative indicators that characterize the PPF system is the paid pension contributions. The amount of pension contributions as of June 30, 2021 amounted to 2,496.7 million UAH. This figure increased by 10.1% 228.7 million UAH) compared to the same period in 2020.

“The pension system also feels the lack of financial instruments. For quite a long time, government securities and cash on deposit have been the main areas of investment for PPFs. The NSSMC is working on the development of financial instruments in the capital markets both in the direction of regulation and in the direction of working on specific cases. We hope that PPFs will have a high-quality range of instruments for the development of pension capital soon”, – Yuriy Boyko, the Commissioner, said.

Additional information:
The PPF system is the third level of the pension system. Its development has been carried out since 2004 after the entry into force of the Law of Ukraine on Private Pension Provision. The basis of such system is PPFs.
The main purpose of investing pension assets is to receive non-state pension provision participants additional pension payments to the mandatory state pension insurance, together with ensuring the return on pension assets above inflation and attracting long-term investment resources needed to modernize the economy.