How to Buy Pensionable Service for Retirement in Ukraine
To qualify for a pension in Ukraine, a person must reach the statutory retirement age and have the required amount of pensionable insurance service. While the retirement age is relatively straightforward, questions and difficulties often arise regarding the required insurance record. One of the most common problems is having insufficient pensionable service to qualify for a pension.
What can you do if you do not have enough pensionable service to qualify for retirement?
One possible solution is to continue working officially until you acquire the required period of insurance and then apply for a pension. However, this option has several disadvantages. First, additional time will be required, during which the pension will not yet be paid. Second, finding official employment can be difficult for people approaching retirement age. Therefore, it may be worth considering alternative options provided by Ukrainian legislation.
One such option is to purchase additional pensionable service in Ukraine. Ukrainian legislation provides mechanisms for voluntary participation in the compulsory state social insurance system, allowing individuals, subject to applicable requirements, to make voluntary social insurance contributions and acquire additional pensionable service.
Purchasing pensionable service may be possible through voluntary payment of the Unified Social Contribution (USC). The applicable procedure, amount of contributions, and possibility of crediting particular periods depend on the period for which additional pensionable service is required and the specific voluntary contribution mechanism being used.
In particular, Ukrainian legislation provides for voluntary payment of social insurance contributions and, in certain circumstances, payment of the Unified Social Contribution for previous periods during which a person was not covered by compulsory state social insurance. The cost of obtaining such pensionable service is calculated in accordance with the contribution rates and requirements established by applicable Ukrainian legislation.
Before deciding to purchase additional pensionable service for retirement in Ukraine, it is advisable to verify your existing insurance record. Information about pensionable service is maintained in the Register of Insured Persons administered by the Pension Fund of Ukraine. It is also important to determine exactly how many months or years of service are missing in order to qualify for a pension.
The financial feasibility of purchasing additional pensionable service should also be considered. In some cases, purchasing several missing months of insurance service may allow a person to qualify for a pension significantly earlier. However, if several years of pensionable service are missing, the required contributions may be substantial. Therefore, it is advisable to calculate the expected costs and potential benefits before making a decision.
Therefore, if you do not have enough pensionable service to qualify for a pension in Ukraine, this does not necessarily mean that you must continue working for several more years. Depending on your individual circumstances, Ukrainian legislation may allow you to make voluntary social insurance contributions and acquire the additional pensionable service required to qualify for retirement benefits.
