In modern Ukraine, where justice sometimes seems unattainable, pensioners decided to change the rules of the game. They don’t just wait for their legal payments – they fight for them in court, and win. Courts are increasingly siding with the elderly, recognizing their claims as fair. This not only gives them the money they deserve, but also shows us all that it’s never too late to fight for our rights.
Ombudsman Dmytro Lubinets repeatedly raised the issue of pension provision for Ukrainians, emphasizing numerous problems and the need for reforms. He stated that about 70% of Ukrainians receive a pension at or below the poverty line defined by the UN for the countries of Central and Eastern Europe.
“I constantly receive appeals from citizens regarding the low amount of the pension, the inconsistency of its amount with the duration of the insurance period and social injustice in the appointment of the pension. As of the beginning of 2024, almost 70% of Ukrainians received a pension in an amount below and at the level of the poverty line. It causes concern and a decrease the number of pensioners in Ukraine by almost 400 thousand. If at the beginning of this year 10.5 million people received a pension, now only 10.1 million people” – believes Lubinets
Problems of the pension system
The ombudsman emphasizes that the pension system has accumulated a number of problems over the past 20 years, which have been trying to be reformed. One of the stages of the pension reform was the adoption of the Law of Ukraine “On Mandatory State Pension Insurance” in 2003, which determined the structure of the general pension system. Instead, the system of special pension legislation did not undergo any changes, which created more favorable conditions for special pensions of civil servants, employees of local self-government bodies, people’s deputies, scientists, journalists, judges and prosecutors.
The 2011 law “On measures to provide legislative support for the reform of the pension system” became the next stage of the reform, which aimed to balance the solidarity system and introduce a mandatory accumulation system. The law introduced restrictions on special pensions and raised the retirement age for women from 55 to 60.
Current status and future changes
Dmytro Lubinets notes that the next changes took place in October 2017 with the adoption of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Regarding the Increase of Pensions”, which introduced uniform approaches to assigning pensions from January 1, 2018. The decrease in the assessment of one year of insurance experience from 1.35% to 1% led to a decrease in the amount of previously assigned pensions.
At the moment, in the solidarity system, a person with 30 years of insurance experience receives three times less income. According to the Convention of the International Labor Organization, the pension should be at least 40% of the salary.
Debts and reforms
The timeliness of the payment of the single social contribution by the employer has a direct impact on the amount of the pension. Salary arrears at state-owned enterprises as of the beginning of 2024 amounted to 2.23 billion hryvnias, which violates the right of citizens to adequate pension provision. According to the DPS, as of January 1, 2024, the amount of arrears for the payment of the single installment is 20.5 billion hryvnias.
Lubinets believes that the problem can be solved by making changes to the Law of Ukraine “On Mandatory State Pension Insurance”. He also noted that the Ministry of Social Policy has developed a draft law on the comprehensive reform of the pension insurance system.
