Can Employment in the Czech Republic Be Counted Towards a Pension in Ukraine?
Historically, many people worked in different republics and countries and therefore accumulated employment and insurance periods under different legal systems. After Ukraine gained independence, determining pension rights based on periods of employment accumulated abroad became more complicated because each country developed its own social security legislation. International social security agreements provide an important mechanism for resolving such issues.
Today, Ukrainians are increasingly mobile, and many Ukrainian citizens live and work abroad for significant periods of their lives. Some subsequently return to Ukraine upon reaching retirement age, while others remain abroad. In both situations, an important question arises: how will foreign employment and insurance periods affect their pension rights?
Entitlement to an old-age pension in Ukraine depends on reaching the statutory retirement age and having the required insurance record. But what happens if part of a person’s insurance record was accumulated outside Ukraine — for example, in the Czech Republic? Can Czech insurance periods be taken into account when determining pension rights in Ukraine?
Pension and social security relations between Ukraine and the Czech Republic are governed by the Agreement between Ukraine and the Czech Republic on Social Security, signed on 4 July 2001. The Agreement establishes rules concerning equal treatment, applicable legislation and the coordination of social security rights between the two countries.
One of the fundamental principles of the Agreement is the proportional principle. This generally means that each country calculates and pays the part of the pension corresponding to the insurance periods accumulated under its own legislation.
For example, if a person accumulated 12 years of insurance record in Ukraine and 18 years in the Czech Republic, the pension entitlement is determined in accordance with the Agreement and the legislation of each state. Ukraine is responsible for the pension component attributable to the Ukrainian insurance periods, while the Czech Republic is responsible for the component attributable to the Czech insurance periods.
At the same time, insurance periods accumulated under the legislation of both countries may be aggregated for the purpose of determining entitlement to a pension, provided that those periods do not overlap.
This distinction is particularly important. Aggregation of Ukrainian and Czech insurance periods does not necessarily mean that one country pays a pension for all years worked in both countries. Foreign insurance periods may be taken into account to establish whether a person satisfies the minimum conditions for entitlement, while the amount payable by each country is generally determined according to the periods completed under its own legislation.
Where entitlement to a pension under the legislation of one country arises only after taking into account insurance periods completed under the legislation of the other country, the competent institution applies the coordination mechanism established by the Agreement.
In general, the competent institution:
1) determines the theoretical amount of the pension that would be payable if all qualifying insurance periods accumulated under the legislation of both countries were treated as periods completed under its legislation;
2) determines the amount actually payable in proportion to the insurance periods accumulated under the legislation of that country compared with the total qualifying insurance periods taken into account.
The Agreement also contains special provisions for situations where a person has accumulated a relatively short insurance period in one of the countries. In certain circumstances, where the period completed under the legislation of one state is less than one year and does not independently give rise to entitlement to a pension, that period may be taken into account by the competent institution of the other state in accordance with the rules established by the Agreement.
The Agreement also coordinates certain circumstances relating to family members. Where the amount of a particular social security benefit depends on the number or status of family members, the competent institution may be required to take into account qualifying family members residing in the other contracting state, subject to the applicable provisions of the Agreement and national legislation.
Another important guarantee concerns persons who move between Ukraine and the Czech Republic after a pension has already been granted. As a general principle under international social security coordination, a pension should not be reduced, suspended or withdrawn solely because the pensioner resides in the territory of the other contracting state, subject to the rules applicable to the particular type of benefit.
Therefore, a Ukrainian pensioner who moves permanently to the Czech Republic does not automatically lose the right to pension payments solely because of the change in country of residence. The practical procedure for receiving payments abroad depends on the applicable pension legislation, international agreement and payment arrangements in force at the relevant time.
For Ukrainians who have worked in the Czech Republic, it is particularly important to retain documents confirming employment and insurance periods in both countries. When applying for a pension, the competent Ukrainian and Czech institutions may exchange information and confirm insurance periods in accordance with the procedure established by the international social security framework.
Thus, employment in the Czech Republic may directly affect a person’s pension rights in Ukraine. Ukrainian and Czech insurance periods may be aggregated to determine entitlement to a pension, while each country generally calculates and pays its respective share in accordance with the insurance periods accumulated under its legislation.
