Supreme Court Confirms the Pension Fund Must Recalculate Pensions Automatically Without an Application
"The Supreme Court Confirms That the Pension Fund Must Recalculate Pensions Automatically—Without Applications and Without Time Limits"
One of the key issues in pension litigation remains the automatic recalculation of pensions and the application of procedural time limits when the Pension Fund fails to carry out such recalculation. This is particularly important in cases involving the recalculation of existing pensions following changes in monetary allowances rather than the initial granting of a pension.
In case No. 560/5395/25, the Supreme Court clarified the relationship between the general procedural rules and the special provisions of pension legislation.
The claimant was registered with the Main Directorate of the Pension Fund of Ukraine in the Khmelnytskyi Region and received a pension under Law No. 2262-XII. On 6 March 2025, she obtained a certificate issued by the Central-Western Interregional Department for the Execution of Criminal Sentences of the Ministry of Justice of Ukraine confirming the amount of her monetary allowance as of 1 January 2023.
She applied to the Pension Fund requesting that her pension be recalculated effective from 1 February 2023. The Pension Fund refused, arguing that the certificate did not comply with the requirements of Procedure No. 45. Considering the refusal unlawful, the claimant filed a lawsuit. The Khmelnytskyi District Administrative Court upheld her claim, and its judgment was subsequently affirmed by the Seventh Administrative Court of Appeal, ordering the Pension Fund to recalculate her pension. In its cassation appeal, the Main Directorate of the Pension Fund argued that the claimant had missed the statutory time limit for filing a claim.
The Supreme Court emphasized that pension benefits for certain categories of citizens are governed by special legislation reflecting the nature of their work, working conditions, and level of public responsibility. In deciding the case, the Court relied on Part 3 of Article 51 of Law No. 2262-XII, which requires the Pension Fund to recalculate pensions whenever monetary allowances increase, without any limitation period, provided that the failure to recalculate resulted from the actions or omissions of state authorities.
The Court also referred to Article 55 of the same Law, which provides that pension amounts not received due to the pensioner's own fault may be paid retroactively for no more than three years prior to the application. However, where pension payments were not made due to the fault of the Pension Fund or another state authority, the unpaid amounts must be reimbursed for the entire period without any time limitation, together with compensation for the loss of income.
The Supreme Court established that the Pension Fund's obligation to recalculate the claimant's pension arose automatically because the statutory subsistence minimum for able-bodied persons increased on 1 January 2023, resulting in a corresponding increase in monetary allowances. Under the applicable legislation, the Pension Fund was therefore required to recalculate the pension automatically, without requiring the pensioner to submit any application.
The Court further explained that the certificate confirming the amount of monetary allowance merely verified the data necessary for recalculation and did not itself create the legal entitlement. Accordingly, the claimant's right to a recalculated pension and the corresponding increase in pension payments arose automatically on 1 January 2023.
The Supreme Court held that the Pension Fund's failure to perform its statutory duty constituted a continuing unlawful omission. Referring again to Part 3 of Article 51 of Law No. 2262-XII, the Court noted that this case differed fundamentally from the precedents relied upon by the Pension Fund because those cases involved different factual circumstances and therefore could not be applied here. The Court emphasized the importance of the special legal framework, which obliges the state to recalculate pensions automatically, without requiring any additional request from the pensioner, while simultaneously excluding the application of procedural limitation periods.
Accordingly, the Supreme Court upheld the judgments of the lower courts, confirmed the Pension Fund's legal obligation, and ordered the recalculation and payment of the claimant's pension effective from 1 February 2023. This judgment confirms that the Pension Fund's duty to recalculate pensions arises automatically once the statutory conditions are met. Furthermore, where the Pension Fund fails to fulfil that duty, the pensioner's right to recalculation and payment of the resulting pension arrears remains fully enforceable and is not lost because of any procedural time limits. Missing a filing deadline cannot serve as a lawful ground for denying judicial protection of a violated pension right.
