CPF Chernomorneftegaz Sees More than 50% Rise in Net Assets Value for 2007
Founded by Chernomorneftegaz State-owned Joint-Stock Company, its Corporate Pension Fund – CPF Chernomorneftegaz – has presented its key performance indicators for 2007. As of December 31, 2007, the key profitability index of pension assets i.e. net value of contributions to pension scheme was UAH 1.5.
According to ARTA Asset Manager Andrey Smolin, corporate pension schemes are now considered to be the most efficient staff incentive program. ‘Also’, he says: ‘pension payments do not bring an additional tax burden for the company. An employer may account such payments, amounting to 15% of employee salaries, as gross expenses and reduce its tax base’.
CPFs allow the employer to save UAH 0.25 in withheld income tax per UAH 1, while a salary raise of UAH 1 would increase the employer’s expenses by UAH 1.53. The employer could therefore save approximately UAH 0.78 through redistribution of funds intended for staff incentives and benefits and pensions schemes.
Having reported net assets value of UAH 6 461.5 thousand as of early 2008, CPF Chernomorneftegaz now ranks as one of the best CPFs given that the first deductions were made in only February 2006.
Moreover, CPF Chernomorneftegaz takes the lead among other domestic CPFs in number of CPF members. More than 5,000 members have joined CPF Chernomorneftegaz by early 2008.
NOTE:
ARTA Investment Group includes ARTA Investment Partners Ltd., ARTA Securities Ltd., and ARTA Assets Management Ltd.
In 2002, ARTA was pleased to offer the widest range of investment banking services including but not limited to brokerage, corporate finance and asset management. Approximately $1.5 billion has been invested in Ukraine with ARTA’s assistance.