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

Applying for a pension usually requires collecting and submitting a substantial package of documents. Additional difficulties may arise where a future pensioner has worked not only in Ukraine but also abroad.

Foreign employment and insurance periods can be particularly important where a person does not have sufficient insurance record in Ukraine to qualify for a pension. Whether periods accumulated abroad can be taken into account depends on the international social security framework applicable between Ukraine and the country in which the person worked and on confirmation of those periods by the competent foreign institutions.

A significant number of Ukrainians live and work in Canada. Consequently, questions concerning pension rights between Ukraine and Canada are particularly relevant.

Can employment in Canada be counted towards a pension in Ukraine?

Recognition of Canadian employment or pension insurance periods in Ukraine depends on whether the international social security arrangements applicable between Ukraine and Canada provide for aggregation or mutual recognition of such periods.

In the absence of an applicable social security agreement providing for such coordination, periods accumulated under the Canadian pension and social security system cannot automatically be added to Ukrainian insurance periods for the purpose of establishing entitlement to a Ukrainian pension. Likewise, Ukrainian insurance periods cannot automatically be treated as Canadian contribution or residence periods when determining entitlement to Canadian pension benefits.

It is important to distinguish between recognition of Canadian insurance periods for the purpose of establishing pension entitlement and payment of an already granted Ukrainian pension to a person permanently residing in Canada. These are separate legal issues.

Historically, Ukrainian pension legislation contained provisions under which pension payments to persons permanently moving abroad depended on the existence of an international agreement between Ukraine and the relevant country. Ukrainian legislation also provided for payment of a pension in advance for a limited period before departure for permanent residence abroad.

However, in Decision No. 25-rp/2009 of 7 October 2009, the Constitutional Court of Ukraine held that making the exercise of pension rights dependent on whether Ukraine had concluded an international agreement with the pensioner’s country of residence was inconsistent with constitutional guarantees.

The Constitutional Court’s position is important because a person’s acquired right to a Ukrainian pension should not depend solely on whether that person continues to reside in Ukraine or permanently moves to another country, including Canada.

Ukrainian courts have subsequently considered disputes concerning the suspension and resumption of pension payments to Ukrainian citizens permanently residing abroad. Judicial practice has recognised that permanent residence outside Ukraine should not, by itself, deprive a person of an already acquired pension right.

Therefore, a Ukrainian pensioner living in Canada should distinguish between two different questions. The first is whether periods of employment or participation in the Canadian pension system can be used to establish entitlement to a Ukrainian pension. The second is whether a pension already granted in Ukraine can continue to be paid while the pensioner resides in Canada.

The absence of an international mechanism for aggregating Ukrainian and Canadian pension periods may affect the first issue. However, it does not automatically mean that a person loses an already granted Ukrainian pension merely because they permanently reside in Canada.

Persons who have worked in Canada should retain all available documents confirming their employment, contributions and participation in the Canadian pension system. Depending on the circumstances, relevant information may include employment records, contribution history and documents concerning participation in the Canada Pension Plan or other applicable pension programmes.

When applying for a pension, it is necessary to verify the international social security framework actually applicable between Ukraine and Canada at that time. International agreements and domestic pension legislation may change, and the rules applicable to a particular case depend on the relevant periods of employment and the date of the pension application.

Thus, recognition of Canadian pension or insurance periods in Ukraine and payment of a Ukrainian pension while residing in Canada are separate legal questions. The first depends on the applicable rules governing coordination between the pension systems of the two countries, while the second is also protected by Ukrainian constitutional principles concerning acquired pension rights.