Can Employment in Spain Be Counted Towards a Pension in Ukraine?

Thousands of Ukrainians work abroad, and many eventually return to Ukraine. However, when taking up employment in another country, people do not always consider how foreign employment will affect their future pension rights. This raises an important question: can insurance periods accumulated abroad be counted towards a pension in Ukraine?

Entitlement to an old-age pension in Ukraine depends on reaching the statutory retirement age and having the required insurance record. Therefore, periods of employment accumulated abroad may be particularly important where a person does not have sufficient insurance record exclusively in Ukraine.

Whether foreign insurance periods can be taken into account depends on the applicable international social security framework between Ukraine and the country in which the person worked.

International pension agreements may generally be based on two principal models:

• Territorial principle – pension responsibility is generally connected with the pensioner’s country of residence, while qualifying periods accumulated in another contracting state may be taken into account in accordance with the relevant international agreement.
• Proportional principle – each contracting state generally calculates and pays the part of the pension corresponding to the insurance periods accumulated under its own legislation. At the same time, periods accumulated in the other country may be taken into account when determining whether the person qualifies for a pension.

Pension and social security relations between Ukraine and Spain are governed by the Agreement between Ukraine and the Kingdom of Spain on Social Security, which provides for coordination of pension rights between the two countries and is based on the proportional principle.

Accordingly, if a person has worked in Spain and subsequently applies for a pension in Ukraine, qualifying Spanish insurance periods may be aggregated with Ukrainian insurance periods for the purpose of determining entitlement to a pension, subject to the conditions established by the Agreement.

For example, if a person does not have sufficient Ukrainian insurance record to qualify for an old-age pension solely on the basis of periods completed in Ukraine, qualifying insurance periods accumulated in Spain may be taken into account when determining whether the minimum insurance requirements have been satisfied.

However, aggregation of Spanish and Ukrainian insurance periods does not mean that Ukraine must pay a pension for all years worked in Spain. Each country generally calculates and pays its respective pension component according to the insurance periods accumulated under its legislation.

The same principle applies when a person applies for a pension in Spain. Where necessary to establish entitlement, the competent Spanish institution may take qualifying Ukrainian insurance periods into account together with periods accumulated in Spain, provided that the relevant periods do not overlap and the requirements of the Agreement are satisfied.

Once entitlement has been established, the amount payable by each country is determined according to the coordination mechanism established by the international agreement and the applicable national legislation. Therefore, recognition of Ukrainian insurance periods by Spain, or Spanish insurance periods by Ukraine, should be distinguished from the actual calculation of the pension component payable by each state.

An important practical issue is confirmation of foreign insurance periods. A person applying for a pension should provide the competent pension institution with all available information and documents relating to employment abroad.

At the same time, international social security coordination provides for cooperation between the competent institutions of Ukraine and Spain. Where necessary, they may exchange information and obtain official confirmation of insurance periods accumulated under the legislation of the other country.

Therefore, applicants should retain documents confirming their employment and participation in the Spanish social security system, including information concerning employers, periods of employment and social insurance contributions. Such documents may significantly facilitate the verification procedure.

Thus, insurance periods accumulated in Spain may affect a person’s pension rights in Ukraine. Ukrainian and Spanish insurance periods may be aggregated to determine pension entitlement, while Ukraine and Spain generally calculate and pay their respective pension components according to the insurance periods for which each country is responsible.