One of the most complex and controversial topics is the indexation of pensions. In Ukraine! there is a legislative restriction that pensions assigned in the last three years are not subject to indexation in full. According Pension indexation to the Cabinet of Ministers’ resolutions! this rule was introduced because pensions assigned during this period have not yet had time to become “obsolete” in the economic sense. However! such restrictions often cause a wave of discontent among pensioners.
It is necessary to understand that indexation is a right of citizens
Not a privilege! and any restriction of this right is a matter home owner data of expediency. In some cases! pensioners have the right to demand indexation in full! even if the pension was assigned within the last three years. Fair indexation should be carried out on the basis of real changes in the cost of living! and not on the basis of Pension indexation arbitrary decisions of the Pension Fund bodies.
Article 7 of the Law of Ukraine “On Mandatory State Pension Insurance” defines clear principles for the functioning of the pension system. However! real practice shows that the implementation of these principles at the level of state bodies is not always flawless. In particular! the issue of pension indexation and differentiation of pension sizes depending on salary or insurance experience continues to remain in the spotlight! provoking discussions among lawyers and pensioners.
The legislative definition of the conditions and procedure
For pension insurance is the basis for creating a stable system. This ensures equality and transparency for all participants in the pension system! which should guarantee access to fair conditions for accrual of pensions. At the same time! situations arise when the application of these norms can cause difficulties. For example! the inconsistency of who wants to pursue a career regulatory legal acts with the Constitution or international standards! which leads to numerous legal disputes and even violations of citizens’ rights.
The size of the pension is determined not only on the basis of the length of service! but also on the basis of the salary from which contributions to the Pension Fund were paid. This principle is designed to ensure equality and fairness! as well as to stimulate citizens to formal employment. However! in reality! there are numerous cases when these principles are not properly atb directory implemented! which in turn creates difficulties associated with the recalculation of pensions or their indexation.
