Retirees May Lose Their Supplementary Payments at Age 60: The Pension Fund of Ukraine Has Issued a Clarification
3 July 20:11
Early retirement does not guarantee an automatic increase in benefits upon reaching the age of 60. This applies to Ukrainians who began receiving state benefits under preferential terms. This was reported by "Komersant Ukrainian", citing the Pension Fund of Ukraine.
Many Ukrainians retire before the generally established age. For example, parents caring for a child with a disability can do so at age 50, and the government classifies such payments as old-age pensions.
However, reaching the age of 60 does not change a person’s pensioner status. Legally, the person is already receiving the appropriate benefits, so there is no automatic adjustment to the amount based solely on reaching this age milestone.
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The Pension Fund notes that simply reaching the age of 60 does not entitle a person to additional money. This is a common misconception among citizens.
Pension Amount: How to Increase It
However, it is possible to increase the amount of your pension. There are clear legal mechanisms in place for this. Working retirees have two main options.
The first option is to accumulate insurance coverage. You must work for at least 24 months after your pension is granted. Only then are you eligible for a recalculation.
The second option is annual indexation. This is carried out in accordance with resolutions of the Cabinet of Ministers. It usually takes place in March or April.
Recalculation System
The government uses various formulas to adjust pension payments. It all depends on which option is more beneficial for the individual.
Options for calculating the supplement:
- taking into account only the additional insurance period;
- revising the amount based on both the length of service and the new official salary.
The second method is used if the pensioner’s earnings have increased. This allows for a higher adjustment factor. The recalculation is performed either automatically in April or upon the individual’s personal request.
Other Types of Pensions
The law does not provide for a separate recalculation specifically upon turning 60. This is not possible if the pension has already been granted on the basis of age under preferential terms.
If a retiree were switching from one type of benefit to another (for example, from a length-of-service pension to an old-age pension), the rules would be different. In that case, the new national average wage figure could be applied. In the case of a preferential old-age pension, this mechanism does not apply.
Right now, retirees should keep track of their years of service. Every two years of work provides a legal opportunity to apply for an increase in benefits. This is the surest way to improve one’s financial situation.
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