The Law of Ukraine
On Pension Provision
Date of Entry into Force:
January 1, 1992
The Law determines the procedure of state pensions payment to the Ukrainian citizens. Foreign citizens who live in Ukraine shall receive pensions equally with Ukrainian citizens on conditions envisaged by the intergovernmental agreements.
According to this Law shall be appointed:
a) labor pensions:
- by old age;
- by disability;
- in case of bread-winner loss;
- for long service;
b) social pensions.
The persons who have the right to different state pensions shall be appointed only one pension on their choice.
Pension provision shall be conducted by bodies of Pension Fund of Ukraine. The citizens may apply for pension in any time after arising grounds for its receipt. Complaint on the decision of body appointing pensions shall be given to district (city) council or local court.
Pensions shall be paid from funds of Pension Fund of Ukraine. The latter is an independent financial banking system which does not refer to the State Budget of Ukraine. The Pension Fund of Ukraine is formed from funds allocated by enterprises and organizations for social insurance measures. Pensions shall not be subject to taxation.
Old Age Pensions
The right to old age pension shall have:
- men - after 60 years old and with record of service not less than 25 years;
- women - after 55 years old and with record of service not less than 20 years.
Old age pensions shall be appointed in amount of 55 per cent of income, but not less than minimum pension amount. For each full year of work over 25 years for men and 20 years for women pension shall be increased for 1 per cent of income, but not less than 1 per cent of minimum pension amount.
Minimum amount of old age pension shall be set within the amount of minimum consumption budget. In conditions of economic crisis and production slump minimum amount of old age pension shall be set in amount not lower than limit of insufficient provision.
Article 13 of the Law also determines the categories of employees who receive old age pension on privileged conditions. For example, the employees doing unhealthy trades and difficult works, public passenger transport (busses, trolley busses, trams) drivers and trucks drivers working on plants with unhealthy and difficult technological process.
Old age pensions shall be appointed life-long regardless of health condition.
Disability pensions shall be appointed to the citizens who became disable as a result of:
- labor cripple or professional decease;
- general decease (including cripple not connected with job, disability from childhood).
Disability pension caused by labor cripple or professional decease shall be appointed regardless of seniority.
The pension amount depends on disability group. Depending on decease the disabled are divided into three groups. Disability reasons, group and time shall be determined by the bodies of medical social examination.
Pensions shall be appointed for the whole term of disability determined by the bodies of medical social examination. Disability pensions to disabled men older than 60 years old and to disabled women older than 55 years old shall be appointed life-long.
Pensions in Case of Bread-Winner Loss
The right to pension in case of bread-maker loss shall have unable to work members of family of the dead or missing person who were their dependants. Members of family who are considered unable to work are enlisted in part three of Article 37, and members of family who are considered dependants - in Article 38 of the Law.
Pensions in case of bread-maker loss shall be appointed to each unable to work member of family in amount of 30 per cent of the bread-maker's income, but not less than a social pension.
Long Service Pension
Long service pensions shall be appointed to the citizens doing works which cause loss of professional ability to work before the pension age. Categories of employees who have the right to long service pension are enlisted in Article 52 of the Law. For example, these are some categories of aircraft employees, some categories of theatre actors, sportsmen.
Social pensions shall be appointed and paid to not working citizens who do not have the right to labor pension. Amounts of social pensions shall be determined according to Article 94 of the Law in per cent to minimum old age pension amount for each category of not working citizens.
The Law also sets responsibility of legal entities and pensioners for violation of requirements of this Law.