Pension Rights Between Ukraine and Syria

Applying for a pension is an important administrative procedure that most people eventually face. An essential part of the pension application process is collecting and submitting documents confirming employment, insurance periods and other circumstances relevant to pension entitlement. Additional issues may arise where a person has worked not only in Ukraine but also abroad.

Recognition of foreign employment and insurance periods for Ukrainian pension purposes depends on Ukrainian legislation and the applicable international social security framework. Where an international agreement provides for the recognition or aggregation of insurance periods accumulated in different countries, such periods may be taken into account subject to confirmation by the competent authorities of the relevant foreign state.

Some Ukrainians have accumulated employment or insurance periods in the Syrian Arab Republic. Consequently, questions concerning the recognition of Syrian employment periods, pension entitlement and the payment of Ukrainian pensions to people residing abroad may be particularly important.

Recognition of employment or insurance periods accumulated in Syria depends on the international social security arrangements applicable between Ukraine and the Syrian Arab Republic. In the absence of an agreement providing for the aggregation or mutual recognition of insurance periods, employment in Syria is not automatically included in the insurance record required for a Ukrainian pension. Likewise, Ukrainian insurance periods are not automatically recognised for Syrian pension purposes solely on the basis of Ukrainian legislation.

A separate issue concerns the taxation of pension income. Ukraine and the Syrian Arab Republic have concluded an agreement for the avoidance of double taxation. The relevant provisions determine which state has the right to tax pensions and other similar remuneration, depending on the nature and source of the payment and the recipient’s tax status.

Special provisions apply to pensions and other payments connected with government service. Depending on the circumstances, such payments may be taxable in the state in connection with whose government service they are made or in the other contracting state, taking into account factors including the recipient’s residence and nationality.

Another important issue concerns the payment of an already granted Ukrainian pension after a pensioner moves abroad for permanent residence. Ukrainian legislation previously contained provisions under which pension payments to persons permanently residing abroad depended on whether Ukraine had concluded an international pension agreement with the relevant country.

However, in its Decision No. 25-rp/2009 of 7 October 2009, the Constitutional Court of Ukraine declared unconstitutional provisions that made pension payments to persons permanently residing abroad dependent on the existence of such an international agreement. The Court’s position confirmed that the exercise of an acquired pension right cannot be made conditional solely on whether Ukraine has concluded a pension agreement with the pensioner’s country of residence.

Accordingly, the absence of a bilateral pension or social security agreement should not, by itself, constitute grounds for terminating an already granted Ukrainian pension solely because the pensioner permanently resides in Syria. Ukrainian courts have also considered disputes concerning the restoration of pension payments to persons residing abroad and, depending on the circumstances, have ordered the Pension Fund of Ukraine to resume such payments.

It is important to distinguish between the recognition of Syrian insurance periods when determining entitlement to a Ukrainian pension, the taxation of pension income and the right to receive an already granted Ukrainian pension while residing abroad. These are separate legal issues and may be governed by different provisions of national and international law.

Ukrainians who have worked in Syria should therefore retain documents confirming their employment, earnings and participation in any applicable Syrian social insurance system. When applying for a pension or arranging pension payments abroad, the legislation and international arrangements applicable at that time should be examined to determine how the relevant foreign periods affect the person’s pension rights.