Military Pension Recalculation in Ukraine: When the 12-Month Limit Does Not Apply
There are generally several grounds for recalculating a pension, including:
1. An application submitted by the pensioner together with the relevant supporting documents.
2. A decision by the Cabinet of Ministers of Ukraine introducing changes that provide grounds for recalculating pensions for certain categories of pensioners.
The distinction between these grounds is particularly important for military pensioners, as it may determine the date from which the recalculated pension and the corresponding arrears must be paid. The Supreme Court has addressed this issue in its case law.
The Court noted that pensions previously granted to military pensioners are recalculated on the basis of documents already contained in their pension files, as well as additional documents subsequently submitted by pensioners.
Recalculation based on additional documents submitted by the pensioner
Where a pensioner submits additional documents establishing entitlement to a higher pension, the recalculation may be subject to the statutory rules governing payment for the preceding period. In particular, the additional pension amount may generally be paid for no more than the previous 12 months from the date on which the relevant documents were submitted, and not earlier than the date on which the legislation establishing entitlement to such recalculation entered into force.
Recalculation following changes to monetary allowances
A different situation arises where the Cabinet of Ministers of Ukraine adopts a decision increasing one or more components of monetary allowance for the relevant category of persons or introducing new monthly additional payments, allowances, supplements, increases or bonuses. Such changes may create grounds for recalculating pensions granted under the special legislation applicable to military personnel and other eligible persons.
In such circumstances, the competent state authorities are required to exchange the information and documents necessary for recalculation. The relevant pension authorities identify pensioners whose pensions are subject to recalculation, while authorised bodies prepare information and certificates concerning the applicable monetary allowance and its components. These documents are subsequently transferred to the authorities responsible for recalculating pension payments.
What happens if a pensioner was not included in the recalculation lists?
If a pensioner was entitled to recalculation but was not included in the relevant lists due to the fault of the Pension Fund of Ukraine and/or another state authority responsible for preparing the documents necessary for recalculation, a different rule applies.
According to the legal position expressed by the Supreme Court, where the failure to carry out the recalculation was caused by the competent state authorities rather than by the pensioner, the pension should be recalculated from the date on which the right to such recalculation arose, without applying the 12-month limitation applicable to certain recalculations based on documents subsequently submitted by the pensioner.
Therefore, it is important to distinguish between a recalculation initiated on the basis of new documents submitted by the pensioner and a recalculation that the competent authorities were required to carry out following changes in monetary allowance. If the pension was not recalculated in due time because of the fault of the Pension Fund or another authorised state body, the pensioner may be entitled to recalculation and payment of the resulting pension arrears from the date the right arose, without limitation to the preceding 12 months.
If the Pension Fund refuses to carry out such a recalculation or limits the payment of arrears without sufficient legal grounds, its decision may be challenged before an administrative court.
