Retirement work: how it affects your benefits

In Ukraine, pensioners who continue to work after retirement can significantly change the size of their pension benefits due to additional insurance experience and salary.

According to the Law “On Mandatory State Pension Insurance”, a pensioner’s salary affects the amount of the pension, as it may be recalculated.

Since April 1, 2018, the Pension Fund of Ukraine automatically reviews pension payments for working pensioners every year without additional applications, if they acquired the relevant right on March 1.

Recalculation occurs in two cases:

When a pensioner has received at least 24 months of experience after appointment or previous recalculation (the most advantageous option is analyzed – either expertise or expertise with salary);
When two years have passed since the last review, only the new experience is considered. For this, data from the register of insured persons is used.
The salary of a working pensioner serves as an individual earnings coefficient: the higher the income, the higher the coefficient and, accordingly, the greater the increase in the pension.

Restrictions for working pensioners

At the same time, the law establishes certain restrictions for those who receive a pension for years of service. These persons cannot engage in the activity for which the retirement is intended while receiving payments.

If a pensioner decides to work in a similar position, his pension is temporarily suspended, and he receives only a salary. After dismissal, the pension is restored. However, if a pensioner works in another position unrelated to years of service, he can receive both a salary and a pension.

Earlier, the issue of dismissing pensioners and the obligation to work for another half a month was reported.

Information was also provided about new supplements and an increased minimum pension, which promise to improve the lives of pensioners.

In addition, there was talk of a new indexation of pensions and possible percentage increases in payments.