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Ukrainians continue to receive pensions and other social benefits — and many retirees keep working after reaching retirement age. For such individuals, an annual pension recalculation is provided. The Main Department of the Pension Fund of Ukraine (PFU) in the Luhansk region explained how this process works.
If a person continues to work after being granted a pension, the recalculation is carried out considering at least 24 months of insurance record after the pension was first assigned (or last recalculated). The recalculation is based on the same salary (income) used to compute the pension, unless the new income earned after retirement is more beneficial.
“The pension can be calculated based on the earnings already used for the previous calculation, or — if advantageous — include the salary received while working after retirement,” the PFU noted.
If a working pensioner has less than 24 months of insurance record since the last recalculation, a new recalculation can only be made after two years from the previous one.
“The recalculation takes effect from the first day of the month in which the pensioner applies, provided the application with all required documents is submitted by the 15th inclusive. If it’s submitted after the 15th, the recalculation is applied from the first day of the following month,” the Fund added.
For retirees who have continued working and accumulated 24 months of insurance record by March 1 of the current year — or for those who have worked less than 24 months but at least two years have passed since their last recalculation — the PFU automatically recalculates their pensions every year from April 1.
“For working pensioners, pension increases related to the growth of the subsistence minimum are applied only after they leave work,” the PFU stated.
Pensioners must inform the Fund about starting or ending employment, as certain bonuses or supplements are available only to non-working pensioners — for example, the supplement for those supporting children under 18.
“No deductions from the pension are made due to the fact that a person continues to work,” the PFU concluded.
