PENSION SECURITY - Regulation of insurance activities


One of the main issues in the social and economic policy of the state is to ensure the income of the population in old age, which can take place in a variety of forms:

1) support from working family members;

2) the possibility of continuing work after reaching retirement age;

3) the use of personal savings;

4) use of personal insurance mechanisms;

5) the acquisition of rights to receive pensions in the framework of the social insurance system or non-government pension provision.

The last two components are the basis of modern pension systems.

In terms of its economic essence, the pensions guarantee the coordination of the financial interests of the disabled members of society with the rest of it, creating material goods.

The term pensions can also be viewed in various ways.

1. In legal terms, pensions are a branch of legislation that regulates relations related to the maintenance of disabled people by society. Many legal provisions for pensions are at the same time part of labor legislation, which reflects the close relationship of pension provision, especially pensions, with difficulty.

2. In the social aspect, it is the totality of the types and forms of maintenance by the society and at the expense of the society of the disabled due to age (old people, children) or in connection with the state of health that prevents the performance of paid work. Ensuring the income of the population in old age can be carried out in a variety of ways. In a broad sense, they include support from working family members, the possibility of continuing work after reaching retirement age, the use of personal savings, the acquisition of rights to receive pensions in the social insurance system or non-government pension provision.

3. In the economic aspect, pensions are part of the national income used for consumption for the purpose of keeping disabled members of society.

Thus, pension provision is a state system of legal, economic and organizational and administrative measures to support and protect persons from material insecurity due to the onset of old age, disability or loss of breadwinner. By means of such a state system, payments of pensions are provided (and not established), conditions for calculating them based on the actual amounts of deductions of compulsory or voluntary pension contributions received during the period of employment. And in the accumulative pension systems, the conditions for the duration of the insurance period, i.e. the duration of the accumulation of insurance premiums, which also significantly affect the amount of pensions.

In developed economies, the state considers one of the most important tasks of concern for the well-being of older citizens. This approach corresponds to a post-industrial understanding of the role of the family in caring for the older generation and removes this task from the institution of the family. Government intervention also significantly reduces the level of poverty in the elderly, due to the fact that people at young and middle age underestimate the risks of old age. That is why the pension system is an indispensable institution of a developed state, and its device and functioning are given so much attention.

Mandatory pension programs now operate in almost all countries of the world. It is difficult to find the optimal arrangement of the pension system, it depends on the internal demographic and economic characteristics of the country, on the tasks that the state sets for itself, on the development of other institutions. However, it is possible to identify some general trends. In practice, the world has the following types of models of pension systems:

• The English model of Beveridge - a model of the social security profitability (covering the social security of English-speaking countries with strong labor movements: Canada, Australia, New Zealand, etc.);

• Bismarck's insurance model of solidarity (Germany, France, Belgium, Austria and some other European countries);

• Eastern European model, which is reforming the social security of the countries of Central and Eastern Europe (post-communist countries, according to the definition of Western experts - poor relatives of Europe);

• a model of the Nordic countries - a state and decentralized social security system (Denmark, Sweden and Finland);

• The mixed model of social security - is used by some southern countries of Europe (Spain, Italy, Portugal and Greece).

All of the above types are formed taking into account the norms, values ​​of the society of a particular country, as well as the level of socio-economic development. When building existing pension systems, the basis was laid of basic social-democratic principles based on the joint responsibility of generations: the rich pay for the poor; healthy pays for the patient; the worker pays for the unemployed.

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