Can Employment in Kyrgyzstan Be Counted Towards a Pension in Ukraine?
Modern life has made Ukrainians increasingly mobile, with many Ukrainian citizens living and working abroad for significant periods of their lives. Some eventually return to Ukraine for retirement, which raises important questions concerning the recognition of foreign employment and insurance records for pension purposes.
Under the general rules of Ukrainian pension legislation, entitlement to an old-age pension depends on reaching the statutory retirement age and having the required insurance record. But what happens if a person has spent a significant part of their working life outside Ukraine, for example in Kyrgyzstan? Can periods of employment in Kyrgyzstan be taken into account when determining pension entitlement in Ukraine?
International agreements concerning pension and social security matters may apply different approaches to pension entitlement. Traditionally, two main principles can be distinguished: 1) the territorial principle, under which pension provision is generally governed by the legislation of the state in which the pensioner resides; and 2) the proportional principle, under which each state grants and pays the part of the pension corresponding to the insurance or employment record accumulated within its territory.
Pension relations involving employment periods accumulated in Kyrgyzstan have historically been governed by international arrangements based on the territorial principle, including the Agreement on Guarantees of the Rights of Citizens of the CIS Member States in the Field of Pension Provision.
To understand how employment in Kyrgyzstan may affect pension entitlement in Ukraine, several important principles of the relevant international legal framework should be considered.
First, under the territorial approach, pension provision for citizens covered by the relevant international arrangements and their family members is generally governed by the legislation of the state in which they reside. Accordingly, a person residing in Ukraine and applying for a Ukrainian pension must primarily meet the requirements established by Ukrainian pension legislation.
Second, the relevant international rules have historically provided for the recognition of employment periods accumulated in participating states, as well as certain periods of employment completed within the territory of the former USSR, when determining pension entitlement. Such rules may also be relevant to pensions on preferential terms and pensions for years of service. Consequently, qualifying periods of employment accumulated in Kyrgyzstan may be relevant when determining whether a person has sufficient service to qualify for a pension in Ukraine, subject to the international rules applicable to the particular period of employment.
Third, the calculation of a pension and the recognition of foreign employment periods are separate issues. The applicable international rules may contain specific provisions concerning the use of salary or income earned during periods of employment recognised for pension purposes, including rules governing the conversion of earnings where different national currencies are involved.
What happens if a pension has already been granted in Kyrgyzstan?
Under the territorial model of pension provision, relocation from one participating state to another may affect which state is responsible for pension payments. Historically, the relevant international arrangements provided that, where a pensioner moved permanently to another participating state, payment at the former place of residence could be discontinued if the same type of pension was available under the legislation of the new state of residence.
Therefore, a person who has worked in Kyrgyzstan and subsequently resides in Ukraine should determine which international rules apply to the specific periods of employment, whether those periods can be recognised for Ukrainian pension purposes, and what documents are required to confirm them. If the Pension Fund of Ukraine refuses to recognise qualifying employment periods accumulated in Kyrgyzstan without sufficient legal grounds, such a decision may be challenged before an administrative court.
