What to Do If the Pension Fund Does Not Comply with a Court Judgment

Court disputes with the Pension Fund are among the most common pension-related legal disputes in Ukraine. Unfortunately, another widespread problem is the failure of the Pension Fund of Ukraine to comply with a court judgment.

Even when a court judgment has entered into legal force, the Pension Fund may delay its enforcement, formally interpret the judgment in its own favour or fail to take all actions required by the court. This may concern both the granting or recalculation of a pension and the payment of pension arrears pursuant to a court judgment.

In this article, we will explain what to do if the Pension Fund does not comply with a court judgment.

Ukrainian legislation provides several legal mechanisms that may be used to ensure the enforcement of a judgment against the Pension Fund.

First, judicial control over the enforcement of a court judgment may be established. The court that delivered the judgment may require the Pension Fund to submit a report on its enforcement within a period established by the court. After reviewing the report, or if the Pension Fund fails to submit it, the court may set a new deadline and, where there are legal grounds, impose a fine on the responsible official in the amount prescribed by law.

Second, the person in whose favour the judgment was delivered may apply to the court regarding unlawful decisions, actions or inaction committed by the Pension Fund in the course of enforcing the judgment. This mechanism may also be used where the Pension Fund, while formally implementing the judgment, continues to violate the rights of the claimant that were confirmed by the court. If the court establishes a violation, it may take procedural measures aimed at eliminating the causes and circumstances that resulted in non-compliance with the judgment and, where appropriate, inform the competent authorities if there are indications of a criminal offence.

Third, if the court judgment has been submitted for compulsory enforcement, it is necessary to actively use the mechanisms available within enforcement proceedings. In particular, the claimant may request that the enforcement officer take the measures prescribed by law in connection with the Pension Fund’s failure to comply with the judgment, including the imposition of penalties where the relevant statutory requirements are met.

Fourth, intentional failure to comply with a court judgment may constitute a criminal offence. Liability for intentional non-compliance with a court judgment that has entered into legal force, as well as obstruction of its enforcement, is provided for by Article 382 of the Criminal Code of Ukraine. Depending on the circumstances and the person responsible, criminal liability may include severe sanctions.

Fifth, particular attention should be paid to cases where the court orders the Pension Fund to reconsider an application for granting or recalculating a pension. Sometimes the Pension Fund formally complies with such a judgment by reconsidering the application but fails to take into account the legal conclusions established by the court and issues another refusal.

In such circumstances, additional legal action may be necessary. Depending on the wording of the original judgment and the actions taken by the Pension Fund, it may be appropriate to use judicial control mechanisms, challenge the actions taken in the course of enforcement or, where there is a new decision that gives rise to a separate dispute, file a new administrative claim. The previous court judgment and the legal conclusions contained in it may be of significant importance when protecting the pensioner’s rights.

Therefore, obtaining a favourable court judgment against the Pension Fund does not always mean that the pension dispute has been completely resolved. If the Pension Fund does not enforce a court judgment, the pensioner has several legal mechanisms available to compel the authority to comply with the judgment and restore the rights confirmed by the court.

It is important not to abandon the enforcement process after winning the case. A court judgment that has entered into legal force is binding, and the pensioner has the right to seek its full and proper enforcement using the legal remedies provided by Ukrainian law.