Ukrainians working abroad will be able to count their foreign experience towards their total work record for receiving a pension in Ukraine. However, the procedure depends on international agreements that Kyiv has with specific states. This was stated by Tatyana Korol, Deputy Chairman of the Pension Fund of Ukraine (PFU), in response to a request from RBC-Ukraine.
The system for recording work experience is not universal: it is based on bilateral treaties. There are two main approaches to resolving the issue — proportional and territorial. Depending on which principle is enshrined in the agreement with a particular country, it determines exactly how the future payment will be calculated.
Proportional principle: division of work experience
Under this method, each country pays a pension only for the period that the person worked specifically on its territory. If the work experience in one country is insufficient to retire, experience working in another country participating in the agreement is added to it.
Currently, Ukraine has nine bilateral agreements based precisely on the proportional principle. These are treaties with:
- Austria;
- Bulgaria;
- Hungary (in the part not covered by Soviet treaties);
- Georgia;
- Italy;
- Latvia;
- Lithuania;
- Poland;
- Romania (in the part not covered by Soviet treaties).
Citizens of Ukraine who have legally worked in these states can count this period towards their work experience for receiving a pension in Ukraine. Upon reaching the retirement age established in the country of residence, the person will also receive a separate payment there — for the years worked on its territory.
Territorial principle: single pension
Under the territorial principle, the pension is granted by the state where the person actually resides. In this case, all work experience acquired in any of the contracting countries is taken into account, as well as work during the times of the USSR.
Ukraine continues to fulfill the obligations of the former USSR under three such treaties — with Mongolia, Romania, and Hungary. This means that Ukrainians who worked in these countries can expect their entire work experience to be taken into account when assigning a pension at their place of residence.
Expected changes
The PFU also reported on treaties that have already been signed but are still awaiting ratification. These include agreements with Germany, Israel, and Moldova. The latter is being prepared precisely on the proportional principle, which will expand opportunities for counting work experience for citizens who worked in Moldova.
Additional facts about work experience
Previously, RBC-Ukraine reported that time served in the combat zone is counted at a ratio of one to three — one year on the front is equivalent to three years of regular work experience. This allows participants in hostilities to accumulate the necessary work experience for a pension faster.
It is also known that Ukrainians who have not accumulated a single day of work experience by retirement age do not receive a labor pension, but a social allowance. Its amount depends on the duration of the existing work experience, if any.