Economic Mechanism of Public Pension Liabilities Formation (Pension Formula)

#5. The Forerunners of Memory

Functioning and development of the national pension system today is constantly dependent on external factors (macro-economic, demographic, etc.), which directly influence the pension amount, the indexation rate, the size of the premium tariffs and other pension characteristics. The global financial crisis had a negative impact on macro-economic and demographic parameters of the country. In these sircumstances the problem of state regulation of the pension system development, creation of favorable macroeconomic and demographic conditions for its long-term financial stability becomes especially urgent. In the context of elaboration of the pension system long-term development strategy (up to 2030), the most pressing problem of pension reform at the present stage seems to be the need to modernize the formula of calculating the retirement pension in accordance with the insurance principles.