Improving management of non-State pension funds in conditions of corporatization
Importance Corporatization of non-State pension funds (NPF) is one of the elements of the current stage of pension reform in the Russian Federation. Objectives The study aims to assess the feasibility of a change in the organizational and legal form of NPF, the connection of funds corporatization with other elements of the new phase of pension reform, the organizational and legal bases adequacy of the NPF functioning to improve the management of pension accumulation and pension reserves. Methods The paper provides an analysis of the statistical data on the NPF activities, which enabled to arrive at a conclusion about the legal form of limited funds to ensure the NPF financial sustainability in terms of growth of pension savings and pension reserves, and also analyzed the experience of private pension funds, reflecting the organizational forms diversity. I identified the positive effects of NPF incorporation and the risks, as well as guidelines for improving the management of funds. Results The first results of the NPF corporatization do not permit to conclude on their financial sustainability enhancement. The incorporated form of private pension funds is not a special rule in the practice of foreign countries. The main areas of improving funds management include extending the rights of participants and insured persons, as well as setting requirements to the time-frame of ownership of the NPF shares. Conclusions and Relevance An essential condition for the pension system functioning is stable pension legislation based on long-term nature of liabilities.