How to Switch from a Pension for Years of Service to an Old-Age Pension

Ukrainian legislation provides for several different types of pensions, including old-age pensions, disability pensions, survivor’s pensions, pensions for years of service, and others.

Old-age pensions and pensions for years of service are among the most common types of pensions.

An old-age pension is granted to men and women upon reaching the age of 60, provided that they have accumulated the required insurance record. In 2024, at least 31 years of insurance record were required to retire at the age of 60. For the purpose of granting an old-age pension, it is the existence and duration of the required insurance record that matters rather than the specific positions held by the pensioner during his or her working life.

A pension for years of service is granted to individuals whose professional activities may result in the loss of professional capacity or ability to perform their work before they reach the standard retirement age required for an old-age pension.

Accordingly, eligibility for a pension for years of service depends on having the required length of service in positions or occupations that qualify a person for this type of pension. Depending on the relevant profession and applicable legislation, specific requirements regarding the length of qualifying service may apply.

Categories of employees who may be entitled to a pension for years of service include certain education professionals, healthcare workers, pilots, seafarers, and other categories of employees specified by Ukrainian legislation.

At the same time, receiving a pension for years of service does not prevent a pensioner from subsequently switching to an old-age pension.

A common situation arises when a pensioner who has been receiving a pension for years of service reaches retirement age and decides to switch to an old-age pension in order to increase the amount of pension benefits. However, such individuals may face unlawful decisions or incorrect calculations by the Pension Fund of Ukraine.

For example, the Pension Fund may refuse to switch a person to another type of pension due to an allegedly insufficient insurance record after unlawfully excluding certain periods of employment for formal reasons, such as incorrect entries in the employment record book, errors in the pensioner’s name in employment-related documents, or other documentary discrepancies.

Moreover, even where the Pension Fund approves the switch to an old-age pension, the pension may still be calculated and paid in an amount lower than that to which the pensioner is legally entitled.

One of the important indicators used when calculating a pension is the average salary in Ukraine for the three calendar years preceding the year in which the person applies for the pension. This indicator directly affects the final amount of pension benefits.

Under Ukrainian pension legislation, where a person switches to a type of pension provided for by a different law, the average salary indicator applicable to the three calendar years preceding the year of application for the new type of pension should be taken into account.

Therefore, since a pension for years of service may be granted under the Law of Ukraine “On Pension Provision,” while an old-age pension is granted under the Law of Ukraine “On Compulsory State Pension Insurance,” when switching from the former to the latter, the new average salary indicator should be applied when the relevant statutory requirements are met.

However, as practice demonstrates, the Pension Fund of Ukraine may continue to use the previous average salary indicator when calculating the old-age pension — namely, the indicator that was applied when the pension for years of service was originally granted. This can significantly reduce the amount of the pension.

At the same time, Ukrainian court practice supports the protection of pensioners’ rights in such disputes. Courts have recognized that where a new pension is granted under a different law, the Pension Fund must apply the appropriate average salary indicator in accordance with the requirements of pension legislation.

To effectively protect your pension rights, it is important to understand them and identify possible violations in a timely manner. A lawyer specializing in pension law can assist you with this process.

The specialists of the Pension Center have many years of experience protecting pensioners’ rights both in court and through pre-trial procedures. Our lawyers and attorneys are ready to help you determine whether the Pension Fund has violated your rights and identify the most effective ways to restore them.

We offer a comprehensive review of your pension file and an independent recalculation of your pension amount in accordance with Ukrainian legislation.

Upon completion of our review, we will provide you with a report explaining whether the Pension Fund of Ukraine has violated your right to receive the correct pension amount and outlining the available options for resolving the situation.

If you are looking for reliable professional assistance in protecting your pension rights, contact the Pension Center today!