Pension provision for persons discharged from military service

Pension provision for persons discharged from military service is regulated by the Law of Ukraine No. 2262-XII “On Pension Provision for Persons Discharged from Military Service and Certain Other Persons”. This law establishes a special procedure for the appointment and payment of pensions to military personnel, police officers, employees of internal affairs bodies, the Security Service of Ukraine, the State Emergency Service and other persons who have served. The peculiarity of such pension provision is that it is not related to the insurance period, but to the years of service and the amount of the financial provision.

The law provides for three main types of pensions: a pension for long service, a disability pension and a pension in connection with the loss of a breadwinner.

Long service pension

A long-service pension is awarded upon completion of the statutory length of service. As a rule, the right to such a pension arises upon completion of 25 calendar years of service or a mixed length of service including military service. The amount of the pension is determined as a percentage of the amount of cash benefits, which includes the official salary, salary by rank, and monthly additional types of benefits.

The basic amount is 50% of the corresponding amounts of cash benefits with a further increase depending on the length of service. It is important that the pension is calculated based on cash benefits, and not according to the general formula of the solidarity system.

Disability pension

A disability pension is awarded to persons who became disabled during service or as a result of an illness related to it. The amount of the pension depends on the disability group and the causal connection with military service. The law establishes increased guarantees for persons whose disability occurred as a result of an injury or illness received during the performance of official duties.

Pension in connection with the loss of a breadwinner

Members of the families of deceased military personnel are entitled to a pension in connection with the loss of a breadwinner. Such a pension is awarded regardless of the length of service, if the death was related to the performance of official duties or occurred during service. The amount of the pension is determined as a percentage of the deceased's financial security.

Problems of recalculating pensions for military pensioners

Despite clear legislative regulation, the most acute issues arise precisely at the stage of recalculating pensions already assigned. Law No. 2262-XII provides for mandatory recalculation in the event of an increase in the cash benefits of active military personnel. However, in practice, the Pension Fund of Ukraine often refuses to carry out such recalculations or carries them out partially.

Recalculation based on certificates of cash benefits as of 2019

After the judicial annulment of certain provisions of the Cabinet of Ministers Resolution No. 103, a widespread practice of issuing new certificates of cash benefits, taking into account all monthly additional types of benefits, arose. These certificates are the basis for recalculating the pension.

However, the Pension Fund often refuses to take such certificates into account, citing the alleged lack of regulatory grounds for taking into account certain allowances.

Judicial practice sides with pensioners, noting that if the certificate is issued by an authorized body, the Pension Fund does not have the authority to assess its appropriateness or independently exclude components of the cash benefits.

Recalculation taking into account the subsistence minimum

After changes in the approaches to determining the salaries of military personnel (dependence on the subsistence minimum), a new wave of disputes has arisen. Pensioners apply with certificates in which salaries are determined by multiplying tariff coefficients by the subsistence minimum.

The Pension Fund often refuses to recalculate, arguing that there are no grounds for such consideration or that the relevant government decisions do not provide for automatic recalculation.

At the same time, administrative courts emphasize: if the component of monetary support that directly affects the size of the pension changes, recalculation is mandatory. The refusal contradicts the principle of legal certainty and Article 63 of Law No. 2262-XII.

The problem of the monthly supplement of 2,000 hryvnia

A separate category of disputes is the termination or non-renewal of the monthly supplement of UAH 2,000 established by government decisions. In practice, there are situations when, after the pension is recalculated, such a supplement is not paid from the moment of the increase.

In fact, this leads to a decrease in the total amount of payments. Judicial practice shows that if a pensioner meets the conditions for receiving the supplement, its termination without legal grounds is unlawful and subject to cancellation.

Limitation of the pension to the maximum amount

Another common problem is the application of the maximum limit on the amount of pension. The Pension Fund refers to the general provisions of the legislation on the maximum amount of payments.

At the same time, the courts draw attention to the need to assess the specific circumstances of the case and the inadmissibility of narrowing the content of an already acquired right. A number of decisions indicate that the restriction may contradict the principle of fairness and Article 22 of the Constitution of Ukraine, which prohibits narrowing the content of existing rights and freedoms.

Judicial protection of the rights of military pensioners

The refusal to recalculate the pension or limit its size can be appealed in an administrative court. The courts verify the compliance of the Pension Fund's actions with the norms of Law No. 2262-XII and take into account the legal positions of the Supreme Court regarding the mandatory full consideration of the components of monetary security.

In most cases, courts recognize the refusal to recalculate as unlawful, oblige to recalculate on the basis of appropriate certificates and pay off the debt for the past period. Thus, the judicial procedure remains an effective mechanism for restoring the violated rights of military pensioners.