Recognition of Employment in Russia for Pension Purposes in Ukraine

In Ukraine, the issue of including periods of employment in the Russian Federation in a person’s pensionable service often causes uncertainty and raises questions among those who intend to use employment periods acquired in Russia to qualify for a pension in Ukraine. To understand this issue, it is important to consider the relevant legislation and the conditions under which the Ukrainian Pension Fund authorities recognise such periods of employment.

It should be noted that the recognition of periods of employment in the Russian Federation after 1 January 1991 for the purpose of granting a pension in Ukraine has been regulated by international agreements concluded between Ukraine and the Russian Federation.

On 13 March 1992, Ukraine and Russia became parties to the Agreement “On Guarantees of the Rights of Citizens of the Member States of the Commonwealth of Independent States in the Field of Pension Provision”. According to Article 6 of the Agreement, for the purpose of establishing entitlement to a pension, including a pension on preferential terms and a pension for years of service, citizens of the states participating in the Agreement were entitled to have their employment record acquired in the territory of any of those states, as well as in the territory of the former USSR before the Agreement entered into force, taken into account.

An analysis of this provision indicates that periods of employment are calculated in accordance with the legislation of the state in whose territory the employment activity was carried out. Preferential employment periods acquired in the territory of one of the states were also subject to recognition by the other state.

However, on 1 January 2023, Russia ceased its participation in the Agreement on Guarantees of the Rights of Citizens of the Member States of the Commonwealth of Independent States in the Field of Pension Provision dated 13 March 1992. Ukraine also withdrew from the Agreement: on 29 November 2022, the Cabinet of Ministers of Ukraine adopted Resolution No. 1328 “On Withdrawal from the Agreement on Guarantees of the Rights of Citizens of the Member States of the Commonwealth of Independent States in the Field of Pension Provision”, which entered into force on 2 December 2022.

As a result of these developments, since the beginning of 2023, the Pension Fund authorities have refused in certain cases to include periods of employment in Russia from 1 January 1992 in a person’s general insurance record and preferential employment record. Consequently, some pensioners receive lower pension payments, while others are denied a pension altogether because they are considered not to have the required number of years of pensionable service. Are such refusals lawful? In our view, they are not, and this position has already been supported by court practice.

Article 58 of the Constitution of Ukraine provides that laws and other regulatory acts do not have retroactive effect, except where they mitigate or abolish a person’s liability.

Accordingly, before Resolution of the Cabinet of Ministers of Ukraine No. 1328 dated 29 November 2022 entered into force, Ukraine, as a state participating in the Agreement, was bound by the obligations undertaken under the Agreement “On Guarantees of the Rights of Citizens of the Member States of the Commonwealth of Independent States in the Field of Pension Provision” dated 13 March 1992. Therefore, the termination of participation in the Agreement does not, in itself, eliminate rights relating to periods of employment completed while the Agreement was in force.

Where the provisions of the Agreement were in force during the relevant period of a person’s employment and provided for recognition of that employment record, the subsequent termination of the Agreement should not result in adverse consequences for that person in the form of a refusal to include the disputed period of employment in their insurance record.

Unfortunately, the Pension Fund authorities do not always voluntarily recognise periods of employment in Russia, which may make it necessary to file a claim with the court to protect the pensioner’s rights. Our company has specialised in pension disputes of varying complexity for many years. We have also successfully assisted clients with the inclusion of periods of employment in Russia in their pensionable service. One example of our work is court case No. 520/26141/23, in which the court agreed with the arguments presented by our lawyers and found the actions of the Pension Fund authority in refusing to recognise the relevant period of employment in Russia to be unlawful.

If you are facing a problem similar to the one described in this article, please contact us. We have experience handling such pension disputes and are ready to help you protect your rights and obtain the pension benefits to which you are legally entitled.