Ukrainians warned: information about pension indexation from January 15 is fake

14 January 02:16

Telegram channels have posted information about the alleged indexation of pensions starting January 15, 2025. The Pension Fund has warned Ukrainians that this is a fake, Komersant ukrainskyi reports

It is reported that in order to receive an indexed pension, pensioners need to fill out a questionnaire.

“Please note that this is a manipulation! It is designed to encourage gullible users to click on the link, where further registration to a closed information channel and phishing activities will take place,” the Pension Fund said.

To avoid becoming victims of scams, Ukrainians are asked not to click on these links.

The Pension Fund noted that indexation of pensions does not require additional applications and filling out questionnaires. The indexation will be determined by a separate resolution of the Cabinet of Ministers.

“Such recalculation is carried out without additional application and does not require filling out any questionnaires! The issue of pension indexation in 2025 will be determined by a separate resolution of the Cabinet of Ministers of Ukraine. The Pension Fund of Ukraine will inform about this through its official (verified) information channels,” the statement said.

According to Ukrainian law, the next pension indexation will take place on March 1, 2025. UAH 44.7 billion is allocated for additional payments determined by the resolutions on indexation of pensions and social benefits.

Pensions in 2025: how much, who will receive them and how they will be indexed

Ukraine is continuing the pension reform that was introduced seven years ago. Every year, the requirements for the insurance period for retirement in different age groups are increasing. In 2024, to retire at age 60, you will need to have at least 31 years of service. By 2025, this requirement will increase to 32 years. In the following years, this requirement will increase further. For retirement at 63 or 65, there are also requirements for length of service, which will also increase every year.

If a person does not have the required length of service, they can buy it. An agreement on voluntary payment of pension insurance contributions can be concluded with the tax office, and this will be taken into account as insurance experience. You can also conclude an agreement on a one-time payment of contributions for the past period. The monthly minimum contribution under such an agreement is equal to the minimum unified social tax (UST).

For non-working pensioners, pensions are indexed annually, and for working pensioners, they are recalculated. Indexation takes place once a year, based on the average salary and consumer price growth. The pensions of working pensioners are recalculated automatically, increasing the coefficient of insurance record for each additional 24 months.

The draft budget for 2025 provides for indexation and recalculation of pensions. The government will determine the terms and dates of these procedures. Nevertheless, the Prime Minister has promised that resources will be allocated for pension indexation. The Pension Fund’s budget for the next year is also expected to be deficit-free, which gives rise to expectations of pension increases.

Thus, Ukraine continues to implement a parametric pension reform, under which the retirement age requirements are gradually increasing. If you do not have enough years of service, you can buy it through an agreement with the tax authorities. Pensions are indexed and recalculated annually, taking into account the growth of average wages and consumer prices. The government has already announced plans to index pensions, and resources will be allocated for this purpose.

In Ukraine, it is unclear how much pensions will be indexed until official figures are approved. The Cabinet of Ministers plans to publish a decree on indexation and recalculation only at the end of winter. However, based on the available indicators, it is possible to preliminarily calculate the percentage of indexation. For example, the consumer price index for September is 6.5%, and the difference between average salaries for different periods is 8.4%. Thus, at the moment there are grounds for indexation by 7.45%.

Working pensioners will also receive an automatic recalculation, but they will only receive it in the summer, as the latest data on unified social contribution contributions, which are submitted within 40 days after the end of the quarter, must be taken into account. At the same time, the head of the Pension Fund of Ukraine reminds of the planned reform of the pension system, which is to be implemented in July 2025. It is expected to change the principle of pension calculation and revise payments for those who already receive pensions. Instead of salary and length of service coefficients, the plan is to introduce a system of points that will be awarded depending on the insurance premium for each month of work.

The legislation also contains the concept of a minimum pension, which depends on age and length of service, as well as on the status of the pensioner (working or not working). The Cabinet of Ministers can set the amount of the minimum pension, as well as introduce additional payments for higher rates. For example, non-working pensioners aged 65 with a certain length of service should be paid a supplement of up to UAH 3,370. Pensioners who are internally displaced and pensioners temporarily residing abroad will also have to undergo annual identification.

The identification requirement was suspended during the quarantine, but was reinstated more than a year ago. Internally displaced pensioners need to undergo physical identification every six months, and pensioners temporarily residing abroad need to be identified in person, via video conference, through an electronic cabinet or with the help of a diplomatic mission. This requirement was introduced this year. For the first time, such identification must be completed by the end of this year.

Дзвенислава Карплюк
Editor