OREANDA-NEWS. November 15, 2011. In execution of the National Action Plan for 2011 and the Program of Economic Reforms 2010-2014 Prosperous Society, Competitive Economy, Effective State, the Ministry of Finance of Ukraine has drafted a bill "On Future Generation Fund".

The purpose of the Future Generation Fund is to accumulate financial resources for funding social reforms, including the introduction of second mandatory accumulative tier of the pension and health insurance system in Ukraine.

It is worth saying that this Fund will in the long run finance actions aimed at reducing negative impact of cyclical factors of the economy development and demographic aging of Ukrainians.

Future Generation Fund is supposed to be created within the framework of the State Budget Special Fund. This will allow to:

- avoid the Fund misuse risks;

- ensure openness and transparency of transactions with the Fund, its accountability and controllability before the Parliament;

- apply Budget Code provisions being standards for any budget spending agency, to the Fund’s transactions.

The Future Generation Fund replenishment sources will be annually specified by the State Budget Law of Ukraine.

Thus, the adoption of the Future Generation Fund Law of Ukraine will facilitate the pension reform implementation and prevent the Pension Fund imbalance in terms of introduction of second-tier pension system and in worsening demographic situation and in introducing the health insurance.