Insurance Record, Employment Record and Preferential Employment Record in Ukraine

When discussing the length of service required for a pension in Ukraine, it is important to distinguish between three concepts: insurance record, employment record and preferential employment record.

Since 1 January 2004, the insurance record used for pension purposes generally includes only those periods during which insurance contributions were paid in an amount not less than the minimum insurance contribution. This is known as the insurance record. It is calculated on the basis of information contained in the personalised records system. Information from the personalised records system can be accessed through a personal account on the web portal of the Pension Fund of Ukraine or by applying directly to a territorial office of the Pension Fund.

For periods before 1 January 2004, the employment record documented in the employment record book is generally included in the insurance record. It is important that the entries are properly completed, legible and contain the necessary details of the organisation, enterprise or institution where the person worked. Under the applicable rules, certain other periods may also be included in the employment record, including full-time study at higher and secondary specialised educational institutions, military service and maternity or childcare leave until the child reaches the age of three.

There is also a separate concept of preferential employment record, which may entitle a person to retire earlier than the standard retirement age.

Preferential employment record includes, in particular, employment in harmful and difficult working conditions under the relevant statutory lists, as well as employment in certain professions for which special pension rules apply.

Certain healthcare workers may also be entitled to have qualifying periods of employment counted at a double rate.

Thus, pursuant to Article 60 of the Law of Ukraine “On Pension Provision”, employment in leprosy and anti-plague healthcare institutions, institutions (departments) providing treatment to persons infected with the human immunodeficiency virus (HIV) or suffering from AIDS, other infectious disease healthcare institutions (departments), pathology and intensive care departments of healthcare institutions, as well as institutions providing psychiatric care, is counted towards the employment record at a double rate.

Preferential employment periods in healthcare institutions are generally confirmed by information contained in the employment record book. If the employment record book does not contain sufficient information, additional certificates from the healthcare institution or internal documents may need to be submitted to the Pension Fund. These may include regulations governing the institution, documents concerning its organisational structure, staffing schedules, accreditation certificates and other relevant documents.

In practice, the Pension Fund authorities sometimes count qualifying healthcare employment at a double rate only for periods before 1 January 2004, while periods from 1 January 2004 onwards are counted at the standard single rate. However, Article 60 of the Law of Ukraine “On Pension Provision” does not establish such a time limitation on the application of the double-rate calculation for qualifying employment. Therefore, a refusal by the Pension Fund to apply the preferential calculation may constitute grounds for challenging its decision in court. Ukrainian courts have issued decisions protecting pensioners’ rights in such disputes.