Preferential Years of Service for a Long-Service Pension: Supreme Court Position

Pension provision for persons who served in certain Ukrainian state authorities and services is regulated by a number of legislative and regulatory acts. One of the important issues is the calculation of calendar years of service on preferential terms, which may significantly affect entitlement to a long-service pension under paragraph “a” of Article 12 of the Law of Ukraine “On Pension Provision for Persons Discharged from Military Service and Certain Other Persons.”

Calendar years of service determine the duration of a person’s service in the relevant authorities and institutions for pension purposes. At the same time, Ukrainian legislation provides for preferential calculation rules under which certain periods of service are counted at an increased rate. For example, for rank-and-file and commanding officers of the State Criminal-Executive Service of Ukraine, years of service may be calculated using a special preferential ratio, including one month of service being counted as 40 days or more in cases provided for by law.

Despite the legislative provisions governing this issue, the Pension Fund of Ukraine may refuse to count calendar years of service on preferential terms when considering applications for long-service pensions. As a result, applicants may be denied a pension on the grounds that they do not have the required calendar years of service.

It should be noted that Ukrainian court practice on this issue has not always been consistent. However, with regard to employees of the State Criminal-Executive Service, the Supreme Court recently adopted an important judgment – its decision dated 26 February 2025 in case No. 560/14729/23 – which once again confirmed the right to preferential calculation of years of service.

According to the circumstances of the case, the claimant, who was discharged from service in the State Criminal-Executive Service in 2018, applied to the court after the Pension Fund refused to grant him a long-service pension. The refusal was based on the conclusion that, as of the date of his discharge, the claimant did not have the required calendar years of service necessary for the pension. In particular, his years of service had not been calculated on preferential terms.

The court of first instance granted the claim, referring to the case law of the Supreme Court, including cases Nos. 805/3923/18-а and 480/4241/18, which recognized the right to preferential calculation of calendar years of service.

The appellate court overturned the judgment and stated that, as of 27 June 2022 (the relevant date concerning the pension) and 27 June 2023 (the date of application to the Pension Fund), the amended version of paragraph 3 of Procedure No. 393 provided for preferential calculation of calendar years of service only for determining the amount of pension benefits, rather than for establishing entitlement to a long-service pension.

Upon reviewing the case, the Supreme Court concluded that the appellate court had incorrectly applied the substantive law. The Supreme Court emphasized that the right to preferential calculation of years of service for rank-and-file and commanding officers of the State Criminal-Executive Service is established not only by Procedure No. 393 but also directly by the Law of Ukraine “On the State Criminal-Executive Service of Ukraine.”

Under parts 3 and 4 of Article 23 of this Law, pension provision for rank-and-file and commanding officers of the State Criminal-Executive Service is governed by the Law of Ukraine “On Pension Provision for Persons Discharged from Military Service and Certain Other Persons.”

For rank-and-file and commanding officers of the State Criminal-Executive Service, preferential calculation of years of service for the purpose of granting a pension is established at the rate of one month of service being counted as 40 days.

Therefore, since the claimant’s right to preferential calculation of years of service specifically for the purpose of establishing pension entitlement is provided directly by law, which has higher legal force than regulations adopted by the Cabinet of Ministers of Ukraine, the claimant was entitled to preferential calculation of his service and, consequently, to have that calculation taken into account when determining his entitlement to a long-service pension.

ARES Law Firm specializes in resolving pension disputes with the Pension Fund of Ukraine through administrative court proceedings. If you have been refused a pension, including a long-service pension, because the Pension Fund did not calculate your years of service on preferential terms, contact our pension lawyers for professional assistance. We will analyze your documents and the Pension Fund’s decision, assess the prospects of challenging the refusal in court and provide legal representation throughout the entire process – from preparing and filing the administrative claim to obtaining the court judgment and submitting it to the Pension Fund for enforcement.