How Is Far North Employment Record Calculated for Pension Purposes in Ukraine?

Many citizens of the former USSR once worked in the Far North or in areas treated as equivalent to the Far North. At that time, numerous regulations provided for preferential calculation of such periods of employment for pension purposes. Today, however, Ukrainian citizens are granted pensions under Ukrainian legislation. This raises an important question: how does employment in the Far North affect pension entitlement in Ukraine?

Employment periods in the Far North may still be calculated on preferential terms. This is provided for by the Law of Ukraine “On Compulsory State Pension Insurance,” which establishes that periods of employment before 1 January 1991 in the Far North and areas treated as equivalent to the Far North of the former USSR, as well as on the island of Spitsbergen (Svalbard), are included in the insurance record in accordance with the procedure and conditions established by the legislation that was in force before 1 January 1991.

Under the legislation in force before 1 January 1991, employment in the Far North for pension purposes is calculated as follows:

1) for periods of employment from 1 August 1945 to 1 March 1960 – one year of employment is counted as two years;

2) for periods of employment from 1 March 1960 to 1 January 1991 – one year of employment is counted as one year and six months.

Preferential calculation of the insurance record is carried out on the basis of an employment record book, a written employment agreement, or a certificate specifying the period of employment in the Far North or in areas treated as equivalent to the Far North, as well as confirming that the employee was entitled to the benefits provided for by the relevant regulations.

It should also be noted that Ukraine and the Russian Federation entered into the Temporary Agreement on Guarantees of the Rights of Citizens Who Worked in the Far North and Areas Treated as Equivalent to the Far North in the Field of Pension Provision, dated 15 January 1993. Under this Agreement, citizens who worked for at least 15 calendar years in the Far North or at least 20 calendar years in areas treated as equivalent to the Far North may, regardless of their permanent place of residence within the territories of the two states, qualify for an old-age pension:

men – upon reaching the age of 55 and having at least 25 years of total employment record;

women – upon reaching the age of 50 and having at least 20 years of total employment record.

But what happens if a person does not have the required period of qualifying employment? How is a pension calculated with an incomplete Far North employment record?

In such circumstances, the periods of employment may still be relevant for pension purposes. For example, where a person has a mixed Far North employment record, one year worked in an area treated as equivalent to the Far North is counted as nine months of employment in the Far North. If the person does not have sufficient qualifying service to obtain a preferential pension, the relevant periods of employment may still be taken into account when determining pension entitlement under the general rules. Therefore, an incomplete Far North employment record does not in itself prevent a person from qualifying for a pension.