Ukraine Pension Fund explains why a benefit equivalent to 10 pensions may be denied

Employees of the state and municipal sectors are entitled to a one-off benefit equivalent to 10 pensions. However, the Pension Fund of Ukraine (PFU) emphasised a key restriction that may deprive citizens of these funds.

Four mandatory conditions for receiving the payment

The mechanism for awarding such a benefit is regulated by paragraph 7-1 of the final provisions of the Law of Ukraine "On Mandatory State Pension Insurance" and the Procedure approved by the Cabinet of Ministers of Ukraine on 23 November 2011.

According to PFU clarifications, to receive the payment, four criteria must be met simultaneously:

• The old-age pension is awarded after 1 October 2011.
• On the day of reaching pensionable age (defined by Article 26 of the law on pension insurance), the individual was working in a state or municipally owned institution or establishment in a position that grants the right to a length-of-service pension under items "e"–"g" of Article 55 of the Law of Ukraine "On Pension Provision".
• Length of service in the relevant positions is at least 35 years for men and 30 years for women.
• The individual has not previously received any form of pension provision.

Why a disability pension voids the right to the benefit

The PFU examined a specific situation illustrating the application of the fourth condition. It concerns a woman who was awarded a Group III disability pension for a period of one year in 2022. In October of the current year, she reaches pensionable age and has over 30 years of teaching experience.

The citizen was interested in whether she could receive the benefit equivalent to 10 pensions. The Pension Fund explained that she had lost this right.

Specialists noted that the prohibition applies to any previously awarded pension. Even a temporary award of a disability pension in the past voids the possibility of receiving the one-off benefit upon retirement at old age.