Pension Recalculation for Working Pensioners in Ukraine

Pensioners are one of the most financially vulnerable categories of the population in Ukraine, despite the fact that many of them have accumulated substantial pensionable insurance service during their working lives.

Many pensioners face situations in which the Pension Fund of Ukraine refuses to recalculate their pensions or fails to take into account certain periods of insurance service or earnings. In practice, disputes may arise because of errors in the calculation of a pension, incomplete information in the pension file or different interpretations of pension legislation.

It is increasingly common for a person to continue working after retirement while receiving a pension. There may be various reasons for this: the pension may not be sufficient to cover everyday expenses, or the pensioner may simply wish to remain professionally active.

The procedure for recalculating pensions for working pensioners is regulated, in particular, by Article 42 of the Law of Ukraine “On Compulsory State Pension Insurance.” Ukrainian legislation provides for periodic recalculation of pensions for persons who continue to work after their pension has been granted.

As a general rule, a working pensioner who has accumulated at least 24 months of additional pensionable insurance service after the pension was granted or last recalculated may become entitled to a further recalculation. The relevant periods of employment do not necessarily have to be continuous.

In addition, Ukrainian legislation provides for an automatic annual recalculation of pensions for working pensioners who have acquired the required right to recalculation. Such recalculation is carried out by the Pension Fund on the basis of information available in the state registers and generally does not require a separate application from the pensioner.

The amount of the recalculated pension depends on the individual circumstances of the pensioner, including the additional pensionable insurance service accumulated after retirement and, where applicable, the person's earnings.

When recalculating a pension, the Pension Fund may take into account the additional insurance service acquired after the pension was granted or last recalculated. Earnings may also be taken into account where this results in a more favorable pension calculation for the pensioner.

Particular attention should be paid to situations where a pensioner's earnings after retirement are lower than the earnings previously used to calculate the pension. In such circumstances, it may be more advantageous to recalculate the pension taking into account only the additional pensionable insurance service, without replacing the previous earnings indicator with a less favorable one.

A pensioner who has acquired the required additional insurance service may also have the right to apply independently for a pension recalculation rather than waiting for the next automatic recalculation. The specific date from which the recalculated pension is payable depends on the grounds for recalculation and the date on which the application and necessary documents are submitted.

Depending on the circumstances, the following documents may be required:

• passport or another identity document;
• taxpayer identification number;
• employment record book or other documents confirming periods of employment and pensionable service, where such information is not available in the relevant registers;
• salary certificate for periods before 1 July 2000, where permitted and necessary for the pension calculation;
• documents confirming a special legal status, where applicable;
• other documents required for the particular type of pension recalculation.

If a pensioner acts through an authorized representative, documents confirming the representative's authority may also be required. Depending on the circumstances, this may include a properly executed power of attorney, a court decision or other documents confirming legal representation.

An application for pension recalculation in Ukraine may be submitted to the Pension Fund of Ukraine through the available service channels, including electronically through the Pension Fund's web portal. The Pension Fund must consider the application and make a decision within the period established by law.

If the Pension Fund refuses to recalculate the pension, fails to take into account additional pensionable service or incorrectly determines the amount of the recalculated pension, its decision may be challenged. Depending on the circumstances, the pensioner may submit an application or complaint to the Pension Fund or challenge the refusal before an administrative court.