Pension Rights Between Ukraine and Slovakia

At some point in life, most people need to apply for a pension. This procedure usually involves 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 international social security framework applicable between Ukraine and the relevant country. Where an international agreement provides for the aggregation or mutual recognition of insurance periods, periods accumulated abroad may be taken into account subject to confirmation by the competent authorities of the foreign state.

Many Ukrainians work or have previously worked in the Slovak Republic. Consequently, questions concerning the recognition of Slovak employment and insurance periods, pension entitlement and the payment of pensions between Ukraine and Slovakia are particularly relevant.

Recognition of employment and insurance periods accumulated in Slovakia for Ukrainian pension purposes depends on the international social security arrangements applicable between Ukraine and the Slovak Republic. The rules in force at the time of the pension application should therefore be examined to determine whether and under what conditions Slovak insurance periods may be taken into account in Ukraine and Ukrainian insurance periods may be recognised in Slovakia.

A separate issue concerns the taxation of pension income. Ukraine and the Slovak Republic have concluded an international 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 of the payment, its source and the recipient’s tax status.

Special rules 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, permanent residence in Slovakia should not, by itself, deprive a person of the right to receive an already granted Ukrainian pension. Ukrainian courts have also considered disputes concerning the restoration of pension payments to persons permanently residing abroad and, depending on the circumstances of the case, have ordered the Pension Fund of Ukraine to resume such payments.

It is important to distinguish between the recognition of Slovak 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 in Slovakia. These are separate legal issues and may be governed by different provisions of national and international law.

Ukrainians who have worked in Slovakia should therefore retain documents confirming their employment, earnings and participation in the Slovak social insurance system. When applying for a pension, it is advisable to verify the international agreements and legislation applicable at that time and, where necessary, obtain official confirmation of the relevant insurance periods from the competent Slovak authorities.