Preferential Pension for Refractory Workers in Hot Work Areas

Preferential Pension for Refractory Workers Employed in Hot Work Areas

The Constitution of Ukraine guarantees citizens the right to social protection in old age. Under the general rules of Ukrainian pension legislation, a person becomes entitled to an old-age pension upon reaching the statutory retirement age and having the required insurance record. However, employees working in particularly difficult or hazardous conditions may be entitled to retire earlier.

One such form of pension is a preferential old-age pension. It allows employees who have worked in certain hazardous occupations to retire before reaching the general retirement age.

The occupations and types of work that may qualify for preferential retirement are defined by Ukrainian legislation and are generally divided into List No. 1 and List No. 2.

List No. 1 covers underground work and occupations involving particularly hazardous and particularly difficult working conditions. List No. 2 covers work involving hazardous and difficult working conditions that does not fall within List No. 1.

This classification affects the conditions for early retirement. Employees covered by List No. 1 may generally qualify for a pension from the age of 50, while employees covered by List No. 2 may qualify from the age of 55, provided that all statutory requirements concerning insurance record and preferential service are satisfied.

List No. 1 includes numerous occupations in rolling, wheel-rolling, bandage-rolling, tinplate, tinning, galvanising and lead-coating production, as well as rail fastening production, hot-metal cutting and scarfing, heat treatment and calibrated metal production. Among the occupations included in List No. 1 are refractory workers employed in hot work areas.

What conditions must a refractory worker employed in a hot work area satisfy to qualify for an early retirement pension under List No. 1?

As a general rule, the employee must reach the age of 50. Men must have at least 25 years of total insurance record, including at least 10 years of qualifying preferential service. Women must have at least 20 years of total insurance record, including at least 7 years and 6 months of qualifying preferential service.

Although these requirements may appear straightforward, difficulties often arise when applying for a pension. One of the principal documents used to confirm a person’s employment history is the employment record book. In practice, entries may contain errors, be incomplete, lack the employer’s stamp or fail to provide sufficient information to establish the preferential nature of the work.

Where the employment record book does not contain sufficient information to confirm preferential service, it may be necessary to obtain an employment clarification certificate from the employer or, where appropriate, from an archive.

However, the Pension Fund of Ukraine may sometimes require such additional certificates even where the employment record book contains sufficient information about the employee’s occupation and employment. A refusal to recognise preferential service solely because an additional certificate was not provided may therefore be subject to legal challenge.

Ukrainian courts have repeatedly considered disputes concerning formal deficiencies in employment documents. The Supreme Court has expressed the position that formal errors in documents should not automatically deprive a person of pension rights. Relevant conclusions can be found, among others, in the Supreme Court decisions of 20 February 2018 in case No. 234/13910/17 and 7 March 2018 in case No. 233/2084/17.

In its decision of 24 May 2018 in case No. 490/12392/16-a, the Supreme Court also emphasised that an employee cannot be held responsible for the proper and complete preparation of documents by the employer.

Therefore, errors or deficiencies in employment documents do not necessarily mean that a refractory worker loses the right to an early retirement pension under List No. 1. If the Pension Fund refuses to recognise preferential service or denies the pension, its decision may be challenged before an administrative court.