The Pension Fund of Ukraine is a central executive body that manages a solidarity system of compulsory state pension provision, collects, accumulates and records insurance premiums, allocates pensions and prepares documents for their payment, provides timely and full financing and payment pensions, burial assistance and other social benefits.According to the law, all pension payments are made from the Pension Fund of Ukraine.

The Pension Fund of Ukraine shall, in accordance with the established procedure, submit proposals to the Ministry of Labor and Social Policy of Ukraine on the issues of formation of the state pension policy and control the implementation of official legislative acts.

Activities of the Pension Fund of Ukraine are subordinated and coordinated by the Cabinet of Ministers of Ukraine through the Ministry of Social Policy of Ukraine.

The implementation of pension reform proceeds through the gradual introduction of a three-tier pension system: The main objectives of the pension reform are: The three-tier pension system will allow the distribution of the three components of the risk associated with changes in the demographic situation (which is more sensitive to the solidarity system) and fluctuations in the economy and in the capital market (which is more experienced by the accumulation system).

Such risk-republican sharing will make the pension system more financially balanced and sustainable, which will protect employees from lowering the total income after retirement.