How to Check Whether Your Pension Is Calculated Correctly in Ukraine
Our pension lawyers are often contacted by clients asking: where can I check whether my pension has been calculated correctly, and who can do it? You might assume that the Pension Fund is the right place to contact, but can it actually provide such a review? Let us explain.
The Pension Fund does not provide an independent service for checking whether a pension has been calculated correctly. As a result, pensioners often have to seek assistance from pension lawyers who know how to verify pension calculations. The lawyers of our Pension Center provide consultations on pension calculations, can independently recalculate an existing pension in Ukraine and help clients take the necessary steps to obtain the pension amount to which they are legally entitled. We provide the following services.
1. Pension Recalculation
As part of this service, we request the client’s employment record book, certificates, other relevant documents and materials from the pension file. We usually ask clients to provide the pension file materials available through their personal online account. If this is not possible, we independently request the necessary documents from the Pension Fund.
We then analyse all documents and materials received. We independently calculate the client’s insurance record and verify all relevant pension indicators. We determine whether all periods of employment have been taken into account and whether the applicable salary indicators and coefficients have been correctly applied. We also carefully review pension indexation to determine whether it was carried out correctly and whether the proper coefficient for increasing the average salary (income) indicator in Ukraine was applied.
In addition, we check:
- whether preferential or multiplied service periods have been properly taken into account;
- whether the correct average salary indicator was applied when switching from one type of pension to another;
- whether any periods of insurance record were excluded because the employer failed to pay insurance contributions;
- whether all relevant payments were included when determining the salary used for pension calculation.
The final stage is the preparation of a written report based on our pension recalculation. We are confident in the quality of our work, which is why we provide our clients with a detailed written report explaining the indicators used in their pension calculation and identifying any errors or deficiencies we discover. Most importantly, the report contains specific recommendations on what should be done to correct those errors and potentially increase the pension amount.
After completing the pension audit, our lawyers can also provide additional legal services, including collecting the necessary documents or initiating court proceedings to increase the pension. We realistically assess the prospects of achieving a positive result and do not recommend additional legal services where we believe that the expected outcome is unlikely to be favourable.
2. Pension Recalculation Based on Salary
At first glance, the pension calculation formula may appear complicated, but our Pension Center lawyers regularly work with pension calculations and understand how each component affects the final amount. Based on our experience in recalculating numerous pensions, we can confirm that the salary indicator can have a significant impact on the overall pension amount.
At the pensioner’s request, a certificate confirming salary for 60 calendar months before 2000 may be taken into account when calculating the pension, subject to the applicable legal requirements. In some cases, such a certificate can significantly increase the individual salary coefficient and, consequently, the overall pension amount.
3. Incorrect Pension Indexation
Another common issue concerns pension indexation. Current legislation guarantees pensioners the right to proper indexation of their pensions. But is this requirement always correctly implemented in practice?
Incorrect indexation of previously granted pensions by the Pension Fund may result in pensioners receiving less than they are legally entitled to over time. The Supreme Court has addressed this issue in favour of pensioners, ordering pension recalculation with the application of the relevant coefficients for increasing the average salary indicator in Ukraine from which insurance contributions were paid during 2021–2024.
Unfortunately, the Pension Fund has not automatically corrected this approach for all pensioners. As a result, in certain cases, pensioners may need to apply to court in order to obtain the correct indexation of their pensions.
The issues listed above are not exhaustive, and other errors may also be identified during a detailed pension calculation review. If you would like to learn more about the cost of our pension recalculation services or have questions about how to check whether your pension has been calculated correctly, contact us!
