Switching from a Long-Service Pension to an Old-Age Pension
In practice, switching from a long-service pension to an old-age pension is often accompanied by errors made by the Pension Fund of Ukraine (PFU) and frequently becomes the subject of administrative court proceedings.
The principal legal framework governing this issue is the Law of Ukraine "On Mandatory State Pension Insurance" No. 1058-IV (hereinafter – Law No. 1058). This law establishes the conditions and procedure for granting an old-age pension, determining its amount, calculating the insurance record, and taking earnings into account.
Under Law No. 1058, an individual becomes entitled to an old-age pension after reaching the statutory retirement age and accumulating the required insurance record.
The key legal question is whether switching from a long-service pension to an old-age pension should be treated as a transfer from one type of pension to another. The answer to this question has a direct impact on the amount of the future pension.
The Pension Fund frequently relies on Article 45 of Law No. 1058, which regulates the transfer from one type of pension to another. Under this approach, the Pension Fund may continue using the same average salary indicator that was applied when calculating the previous pension. However, the case law of the Supreme Court of Ukraine has established an important legal principle: where an individual previously received a long-service pension granted under different legislation and, after reaching retirement age, applies for an old-age pension under Law No. 1058, this is not a transfer between pension types but rather a new pension award.
This legal distinction is of fundamental importance because it allows the Pension Fund to apply the current average salary indicator used for pension calculations, which in many cases significantly increases the amount of the pension.
Article 45 of Law No. 1058 governs only transfers between different types of pensions that were both granted under the same law. However, if a person's previous long-service pension was awarded under the Law of Ukraine "On Pension Provision" and the individual applies for an old-age pension for the first time under Law No. 1058, such an application cannot legally be regarded as a transfer within the meaning of Article 45. Instead, it constitutes a new application for an old-age pension, requiring a completely new calculation under the current legislation.
In practice, the Pension Fund does not always correctly apply either the legislation or the legal conclusions established by the Supreme Court. As a result, applicants may receive an unlawfully reduced pension or even a refusal to grant the pension altogether. In such circumstances, the Pension Fund's decision may be challenged through an administrative appeal or before the administrative courts. Court practice demonstrates that applicants frequently succeed in protecting their rights and obtaining a proper pension calculation based on the current average salary indicator.
Pension disputes require careful analysis of both legislation and judicial practice. Every pension case has its own legal and factual circumstances, and an incorrect classification of the pension type may result in significant financial losses. If you intend to switch from a long-service pension to an old-age pension, have received a refusal from the Pension Fund of Ukraine, or believe that your pension has been calculated incorrectly, obtaining professional legal advice is strongly recommended.
An experienced pension attorney or pension lawyer can review your case, assess the legality of the Pension Fund's actions, prepare all necessary legal documents, and represent your interests before the courts whenever necessary.
The correct application of Law No. 1058 together with the current case law of the Supreme Court of Ukraine enables many pensioners to receive the pension benefits to which they are legally entitled while ensuring effective protection of their social security rights.
