RETURN OF MILITARY PENSIONS: 30% INCREASE

A significant event in the field of appointment and transfer of military pensions is the decision of the Sixth Administrative Court of Appeal of January 29, 2020 in case № 826/6453/18. This decision declared illegal and repealed paragraph 6 of the resolution of the Cabinet of Ministers of Ukraine dated 21.02.2018 № 103 " On the recalculation of pensions for persons discharged from military service and certain other categories of persons. "

 The above decision entitles military retirees to transfer their pension, which will increase the military pension by 30%.

What exactly was canceled?

 Repealed paragraph 6 of the Resolution of the Cabinet of Ministers № 103 provided for amendments to paragraph 4 of the Resolution of the Cabinet of Ministers of August 30, 2017 № 704 “On financial support of servicemen, privates and officers and some other persons”. Clause 4 of the Resolution of the Cabinet of Ministers of Ukraine № 704 provides for the procedure for calculating the cash security of military retirees.

 Clause 4 of the Resolution of the Cabinet of Ministers of Ukraine № 704 as amended by the Resolution of the Cabinet of Ministers of Ukraine № 103 stipulates that:

 The size of salaries, salaries for military (special) ranks of servicemen, privates and officers is determined by multiplying the subsistence level for able-bodied persons established by law on January 1, 2018, by the appropriate tariff rate in accordance with Annexes 1, 12, 13 and 14 .

 Paragraph 4 of the Resolution of the Cabinet of Ministers of Ukraine №704 after the court repealed paragraph 6 of the Resolution of the Cabinet of Ministers of Ukraine № 103 provides that:

 The size of salaries, salaries for military (special) ranks of servicemen, privates and officers is determined by multiplying the subsistence level for able-bodied persons established by law on January 1 of the calendar year (but not less than 50% of the minimum wage established by law on 1 January of the calendar year), by the relevant tariff coefficient in accordance with Annexes 1, 12, 13 and 14.

 Given the fact that the amount of 50 % of the minimum wage is naturally less than the subsistence level, the minimum wage is used in calculating the salary.

 Thus, as we see, paragraph 6 of the Resolution of the Cabinet of Ministers №103, which was repealed by the court, significantly reduces the amount of cash benefits for military retirees.

 A military pensioner asked Prikhodko & Partners to check the correctness of his pension. After analyzing the submitted documents, we offered him to transfer the pension, as the pension accrued to him did not take into account the provisions of the Resolution of the Cabinet of Ministers № 103 repealed by the court.

Consider, for example, how much cash benefits and military pensions will increase.

Our client was charged a pension as follows:

Given the abolition of paragraph 6 of the Resolution of the Cabinet of Ministers № 103, after the recalculation of the pension, the cash security of our client will be determined as follows:

 Thus, as we see, after the transfer of our client's pension will increase by UAH 5,119. For the year, this amount is UAH 61,428, which is a very significant increase to the pension.

 Unfortunately, due to the abolition of paragraph 6 of the Resolution of the Cabinet of Ministers № 103, the Pension Fund does not recalculate military pensions on its own. Therefore, this recalculation is possible only on the basis of a court decision. Prikhodko & Partners Law Firm will be happy to help you transfer your pension!