Pension insurance in the 21st century

Formation of the pension insurance institutions carried out in the country over the past 25 years has not been completed yet. This is mainly due to the fact that from the outset there was no doctrine of formation of the pension insurance institutions, including mechanisms of the interrelation between the most important components of population income integrally related to the system of work remuneration, as well as to the demographic policy and policy on the labour market. For a systemic assessment of the older generation’s quality of life, the author proposes an indicator of the relation of the total expenditure on the pension and health insurance, social services for the elderly as a share of GDP to the share of pensioners in the total population of the country. Its application would allow us to analyze on a consistent basis the society’s expenses on the vital activity of the elderly people in different time periods and between different generations of the elderly, as well as between counties. Russia’s significant lagging behind in development of the pension insurance is aggravated by new challenges. Changes in the employment structure and the phenomenon of ‘population ageing’ bring about a rapid growth in the number of pensioners that requires significant financial resources and necessitates transformation of the existing social security system to pension insurance, formation of a new model of the financial loading, its distribution between the main subjects of legal relations. The author proposes development and implementation of a state programme for harmonization of the systems of pension insurance, work remuneration and taxation, followed by conceptual substantiating and enshrining in law a new contract of generations concerning the size of contributions and pensions, a new scheme of the insurance loading distribution.