Switching from a Long-Service Pension to an Old-Age Pension in Ukraine
A long-service pension is granted to certain categories of employees whose work may lead to a loss of professional capacity or ability to continue performing their duties. The right to a long-service pension is available to categories of employees specified by law who have completed the required period of service in qualifying positions. A mandatory condition for receiving a long-service pension is termination of the employment that gave the person the right to such a pension.
The main advantage of this type of pension is the possibility of retiring earlier than under the standard old-age pension rules. In essence, it is an additional social guarantee provided by the state for certain professions. The categories of positions qualifying for this type of pension and the applicable eligibility requirements are set out in the Laws of Ukraine “On Compulsory State Pension Insurance” and “On Pension Provision”.
If you are wondering how a long-service pension is calculated, we can review the amount of your pension and provide professional legal advice.
Upon reaching the statutory retirement age for an old-age pension under the applicable legislation, a person receiving a long-service pension has the right to switch from a long-service pension to an old-age pension. However, when such a switch is made, the Pension Fund usually recognises the pensioner’s entitlement to the new type of pension but does not use the average salary indicator for the three years preceding the application for the old-age pension when calculating its amount.
As a result, for example, healthcare professionals receiving a long-service pension who wish to switch to an old-age pension may be entitled to a higher pension amount. The problem arises because the Pension Fund treats this situation as a transfer from one pension to another rather than the granting of a new pension and therefore applies a different calculation approach.
Why is the average salary indicator so important when switching from a long-service pension to an old-age pension? This indicator directly affects the amount of the pension: the higher the applicable average salary indicator, the higher the pension may be. However, despite established court practice in favour of pensioners, the Pension Fund continues to apply an incorrect calculation approach in such cases.
The Supreme Court’s position: switching from a long-service pension to an old-age pension constitutes the granting of a new pension rather than a transfer. One example is the Supreme Court judgment dated 31 January 2025 in case No. 200/1478/24. The Court once again protected the pensioner’s rights and stated that switching from a long-service pension to an old-age pension constitutes the granting of a new type of pension rather than merely a transfer between pensions. Therefore, the average salary indicator for the three calendar years preceding the application should be used in the pension calculation.
If you are already entitled to switch from a long-service pension to an old-age pension, it is important to properly assess the financial consequences before submitting your application. In practice, Pension Fund employees may even discourage pensioners from switching to an old-age pension by stating that the new pension amount would be lower than the pension they currently receive.
How can you switch from a long-service pension to an old-age pension? Based on our experience in handling such cases, there may be strong prospects for achieving a positive result where the relevant legal requirements are met. At the document review stage, we can calculate the difference between the pension you currently receive and the amount you may be entitled to after the correct calculation.
How do we work with clients who want to switch from a long-service pension to an old-age pension through court proceedings?
- We obtain the necessary documents from you or request them from the Pension Fund.
- We analyse the documents and pension calculations.
- We offer clear financial terms for our legal services and conclude a legal services agreement.
- We handle the case. We offer comprehensive legal representation, from submitting the necessary documents and obtaining the Pension Fund’s refusal to ensuring the actual enforcement of the court judgment.
If you still have questions or would like to speak with one of our pension lawyers, please write to us or call us. We will be pleased to assist you.
