Mechanism of annual recalculation of pensions changed
Law of Ukraine «On Amending Certain Laws of Ukraine on appointment and indexation of pensions» (№ 231-VII), into force from 1 July 2013, changes the mechanism of annual recalculation of pensions from 1 March.
Under the current legislation the right to recalculation of pensions is determined depending on the increase of a person's pension the previous year, while following the amendments in a new law, this will not matter. Effectively, all pensions, previously designated by the Law of Ukraine "On Mandatory State Pension Insurance", are subject to recalculation. The salary on which the pension is appointed (listed previously) will be raised by the coefficient corresponding to no less than 20% growth rate against the previous year of the average salary (income) in Ukraine from which insurance premiums have been paid. Each retiree is guaranteed increase in the salary from which the pension is appointed (recalculated previously) by the coefficient not less than the growth rate of inflation (CPI) over the past year.
The order of such recalculation, as before, will be determined within the Pension Fund budget by resolution of the Cabinet of Ministers of Ukraine.
