Cooperation between the state and business in the field of pension provision: current trends and prospects

Dombrovska Sofiia
PhD in Economics, Senior Lecturer at the Department of Financial Management and Stock Market, Odesa National Economic University, Odesa, Ukraine, E-mail:sonyadombr@gmail.com, ORCID: https://orcid.org/0000-0001-5589-7837

Received: 12.04.2025    Аpproved: 23.04.2025    Рublished online: 12.05.2025

Cite this article:

Dombrovska S. (2025) Cooperation between the state and business in the field of pension provision: current trends and prospects. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Spivpracja derzhavy I biznesu u sferi pensijnogo zabezpechennja: suchasni tendencii ta perspektyvy.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 4 (329), pp.62-67.

Abstract

The purpose of this study is to provide a comprehensive analysis of current trends in the cooperation between the state and the business sector in the field of pension provision, with a particular focus on identifying key challenges and outlining prospects for the development of funded pension systems in Ukraine. The research is grounded in a combination of quantitative and qualitative methods, including the analysis of statistical indicators, content analysis of regulatory and legal documents, comparative review of international practices, and expert assessments. This methodological approach enables a thorough understanding of both the institutional and practical aspects of public-private cooperation in pension provision. The findings of the study reveal several strategic directions in the evolution of non-state pension provision in Ukraine. In particular, the research highlights the increasing role of private businesses in the formation and functioning of non-state pension funds, both through direct financial participation and by acting as employers that facilitate access to pension schemes for their employees. Additionally, the analysis uncovers a number of institutional and legislative barriers that continue to hinder more effective collaboration between government bodies and the private sector. The study also underscores the insufficient level of public trust in private pension institutions and the limited financial literacy of the population, which negatively affect the development of a sustainable and efficient multi-pillar pension system. In light of these findings, the research proposes practical recommendations aimed at optimizing public policy in this area. These include enhancing the transparency and regulatory framework of private pension funds, creating more favorable tax conditions for employers participating in pension schemes, and fostering public awareness campaigns to improve understanding of the benefits and mechanisms of non-state pension provision. The practical significance of this study lies in its potential to inform policymaking and strategic planning in both the public and private sectors. By encouraging a more balanced and cooperative approach to pension reform, these recommendations are expected to contribute to strengthening the financial sustainability of the national pension system and improving the overall level of social protection for the population.

Keywords

cooperation between the state and business, pension provision, non-state pension funds, funded pension system, financial sustainability.

JEL classification:H550; J320; G230;DOI: https://doi.org/10.32680/2409-9260-2025-4-329-62-67

UD classification:336.2:355

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