Can Employment in Latvia Be Counted Towards a Pension in Ukraine?
For residents of the western regions of Ukraine, it is quite common to have worked in another European country, accumulated insurance periods there and subsequently returned to Ukraine to apply for a pension. However, international pension coordination can be complex, and applicants may not know how foreign insurance periods should be confirmed and taken into account. This article explains the main rules applicable to pension rights where a person has accumulated insurance record in the Republic of Latvia.
Pension and social security relations between Ukraine and Latvia are governed by the applicable international social security framework between the two countries. Its purpose is to coordinate pension rights and prevent people who have worked in both states from losing social security protection merely because their employment history is divided between two national systems.
Ukrainian citizens who work in Latvia are generally subject to Latvian labour and social security legislation during the relevant periods of employment, while Latvian citizens working in Ukraine are generally subject to the corresponding Ukrainian legislation, subject to the rules established by the applicable international agreements.
The international arrangements between Ukraine and Latvia provide mechanisms for recognising and confirming periods relevant to social security rights. The competent authorities of both countries may exchange the information and documents necessary to determine a person’s pension entitlement.
Particular rules apply to employment and insurance periods accumulated before the restoration of Latvian independence and the dissolution of the Soviet Union. Historical periods of employment may be taken into account in accordance with the applicable international agreement and the legislation of the contracting states, including rules intended to prevent the same period from being used to obtain duplicate pension payments from both countries.
For later insurance periods, the international social security framework generally applies the proportional principle. This means that where entitlement to a pension arises only after taking into account insurance periods accumulated in both Ukraine and Latvia, the relevant periods may be aggregated for the purpose of determining pension entitlement.
At the same time, aggregation does not mean that one country must pay a pension for all years worked in both states. Each country generally calculates and pays the pension component attributable to the insurance periods completed under its own legislation.
For example, if a person does not have sufficient Ukrainian insurance record to qualify for a pension solely on the basis of periods completed in Ukraine, qualifying Latvian insurance periods may be taken into account when determining whether the person satisfies the conditions for pension entitlement, subject to the applicable international rules. Ukraine and Latvia then determine their respective pension obligations in accordance with the periods for which each state is responsible.
Special rules may also apply to preferential or special service. Where pension entitlement depends on employment under particular working conditions or in a particular occupation, periods accumulated in the other contracting state may be taken into account if the relevant type of work or working conditions are recognised for such purposes under the applicable legislation and international social security rules.
Consequently, a person seeking recognition of Latvian employment as preferential service in Ukraine should not assume that any period recognised as insurance record will automatically qualify as preferential service. The nature of the work, occupation, working conditions and supporting documents may need to be separately confirmed.
The international framework also contains rules intended to protect pensioners whose pension entitlement depends on periods accumulated in both countries. The precise amount payable is determined by the competent institution of each state under its legislation and the applicable provisions of the international agreement.
An important practical advantage of the international social security system is cooperation between the competent authorities of Ukraine and Latvia. If information necessary for determining pension entitlement is unavailable to the applicant, the competent authorities may exchange requests and obtain confirmation of relevant insurance periods and other information from the other contracting state.
Therefore, a person applying for a Ukrainian pension should not necessarily be required to independently obtain every document concerning their Latvian insurance history where the applicable international procedure provides for direct cooperation between the competent institutions.
At the same time, applicants should retain all available documents confirming employment in Latvia, including employment documents, information concerning social insurance contributions and documents relating to the nature and conditions of work where preferential pension rights may be involved.
Thus, insurance periods accumulated in Latvia may affect a person’s pension rights in Ukraine. Ukrainian and Latvian insurance periods may be coordinated or aggregated to establish pension entitlement, while the amount payable by each country is generally determined according to the insurance periods for which that country is responsible under the applicable international social security rules.
