Funding of social benefits and the social service system in Ukraine

Economic Reform in Ukraine: The Unfinished Agenda

Volumn , Issue , 2019, Pages 232-251

  Góralska, Helena ^a  

^a Centrum Analiz Społeczno Ekonomicznych   (Poland)

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EID: 85078965915     PISSN: None     EISSN: None     Source Type: Book    
DOI: 10.4324/9781315500096-12     Document Type: Chapter

References (19)

1. This article is based on materials of the Ministry of Finance, the Ministry for Social Protection, the Ministry of Labor, the Pension Fund, the Social Insurance Fund, the Employment Fund, and the Fund for the Social Protection of invalids.
2. It is not easy to assess the financial condition of a fund because of oddities in the bookkeeping. Thus funds tend to have large surpluses, but the question is to what extent these are real. For example, the revenues of the centralized part of the
3. Employment Fund in 1992 equaled 4.8 billion krb, expenses amounted to 984 million krb, and the balance of the account by the end of the year was 3.9 billion krb. Local Fund branches received 28.3 billion krb, while their expenditures equaled 5.8 billion krb, and year-end the Fund’s balance amounted to 22.8 billion krb. In 1992, the income of the Pension Fund was 508.2 billion krb and the expenditures were 360.8 billion krb. The Social Insurance Fund also had an excess of income over expenses. It is important to note that the Fund’s expense structure featured a sizable proportion of expenses incurred in the provision of sanatorium treatments, which are not related to mandatory types of expenditures. These nonvital treatments accounted for 20 percent of the Fund’s outlays in 1992 and 35 percent in 1993.
4. In Poland, the cost of room and board for one person in a nursing home is equal to 1.3 average wages, but wages are much lower in Ukraine.
5. This corresponds to the standard that was in effect in Poland between 1982 and 1991.
6. There are three categories of disability allowances: Group I disability allowance is paid in the event of complete incapacity to work; Group II disability allowance is paid in the case of limited capacity to perform individual kinds of work; and Group III allowances are paid to partially incapacitated people. This division into three disability groups existed in the USSR and CMEA member countries; to date, it has been retained in Poland, Russia, and Kazakhstan.
7. According to data from the Ministry of Statistics.
8. The aggregate rate of deductions to the Pension Funds and the Social Insurance Fund is applied in Kazakhstan where it equaled 37 percent before 1994, and 30 percent since 1994. Russia also uses an aggregate rate of deductions to the Pension Fund, Social Insurance Fund, and Medical Insurance Fund equal to 37 percent.
9. Data from the management of the Social Insurance Fund.
10. According to data from the management of the Social Insurance Fund. In Kazakhstan, the expenses of the Social Insurance Fund for sanatorium treatment and the rehabilitation of children in 1994 and 1995 were equal to 20 percent of the Fund’s total expenditures.
11. Information from the management of the Social Insurance Fund.
12. Information from the administration of the Employment Fund.
13. Data for 1995.
14. Information from the Fund management.
15. It is to be noted that in Western Europe one teacher educates an average of twenty-five pupils and in Poland this figure is seventeen pupils. From data available on Ukraine, it can be concluded that the load of an individual teacher is lower than that in Western Europe.
16. Information from the Ministry of Finance of Ukraine.
17. Until 1995, deductions to the Employment Fund were calculated on the basis of the wage fund.
18. Fee collection indicators should not be the same for all enterprises because they remit them separately to the accounts of individual funds and they have different motivations in doing so, for example, contributions made to the Social Insurance Fund are returned to an enterprise in the form of benefits.
19. The number of war participants grows in Poland and Greece as well.