The Verkhovna Rada proposes to change how pensions are calculated and paid

The Committee suggests that the Verkhovna Rada of Ukraine address several pension-related issues for citizens who have worked or are currently working abroad and enhance the rights of Ukrainians to receive pensions.

The Committee of the Verkhovna Rada of Ukraine on Social Policy and Veterans' Rights has made a decision to recommend that the parliament include the government's draft Law on Amendments to Certain Laws of Ukraine regarding the proportional calculation of insurance experience for individuals who worked abroad under registration number 9453 and the outcomes of its first reading, for consideration during the session and accept it as a basis.

The proposed law aims to address the issue of the proportional calculation of insurance experience for individuals who worked outside Ukraine due to the termination of agreements on pension provision with the member states of the Commonwealth of Independent States. This includes the termination of the agreement with the Russian Federation, which regulated the mutual recognition of labor experience acquired in the territories of both states. The law proposes considering the paid Unified Social Contribution in Ukraine to determine the pension amount, while the right to pension eligibility will be based on work experience abroad. This will affect approximately 1 million future pensioners. Additionally, the provisions of the proposed law apply to all citizens who found work during forced immigration. It is hoped that they will return to Ukraine, and their work experience abroad will be counted towards their overall employment record during pension calculations.

Furthermore, the draft law proposes to legislatively prohibit the inclusion of military service (service) from February 19, 2014, in the armed forces, state service positions, local self-government bodies, other state bodies of the Russian Federation, and the occupation administration of the aggressor state, into the length of service. The purpose is to avoid ambiguities in legislation and clearly define that during these periods of military service or work in organizations such as the Pension Fund, social protection, for example, in the territory of the occupied areas, it should not be included in the insurance experience.

Another issue addressed by the presented draft law is the recognition of work experience for Ukrainian citizens in Crimea on a declarative basis. Citizens who resided in Crimea, reached the pension age, and moved to the territory controlled by Ukraine cannot currently receive a pension. According to current legislation, in order for the Pension Fund of Ukraine to grant pensions to such citizens, Ukrainian citizens are required to provide a certificate from the pension authority of the Russian Federation stating that they are not receiving a pension from the aggressor state. However, there are no communications with the aggressor country, and our citizens are not issued such certificates. Consequently, these citizens currently cannot receive their pensions. If the draft law is adopted, Ukrainian citizens will declare that they are not receiving a pension from Russia when applying for a pension. The state will trust this information and verify these facts in the future.

The presented draft law also addresses the possibility for citizens temporarily residing abroad, who cannot physically appear before the Pension Fund of Ukraine to complete bureaucratic procedures, to apply for pension benefits through consular institutions. Additionally, the draft law expands mechanisms for physical identification of individuals.

Representatives of the Cabinet of Ministers of Ukraine assure that the draft law will significantly strengthen the rights of Ukrainians to receive pensions and will resolve numerous issues that prevent individuals from receiving proper pension payments.

The Members of the Verkhovna Rada of Ukraine, who are members of the Committee, unanimously voted in favor of introducing and supporting the draft Law on Amendments to Certain Laws of Ukraine regarding the proportional calculation of insurance experience for individuals who worked abroad, registered under number 9453, in the parliament's hall.

The rapporteur for the plenary session of the Verkhovna Rada of Ukraine on this matter is appointed as the Chairperson of the Committee, Halyna Tretiakova.