Pension Amount by Age: What It Depends On and How It Is Calculated
The amount of the age pension is calculated according to the formula provided in Article 27 of the Law of Ukraine "On Compulsory State Pension Insurance" (hereinafter – Law No. 1058). The components of the formula are the insured person's salary, determined in accordance with Article 40 of Law No. 1058, and the insured person's insurance period coefficient, calculated according to Article 25 of Law No. 1058. This was reminded by the Pension Fund.
It is noted that the amount of the age pension is determined individually for each pensioner and depends on the length of the acquired insurance period and the amount of salary from which insurance contributions were paid.
The salary for pension calculation is determined as the product of the average salary indicator in Ukraine, from which insurance contributions were paid, for the three calendar years preceding the year of pension application, and the individual's salary coefficient (calculated as the arithmetic mean of the individual's salary coefficients for each month of the insurance period for which the salary is taken into account).
The Pension Fund added that if there is no data on the salary in Ukraine for the previous three years on the day of pension assignment, the available salary is taken into account with a subsequent pension recalculation after receiving the necessary data.
The salary for pension calculation is considered for the entire insurance period starting from 01.07.2000 based on data contained in the personalized accounting system. At the pensioner's request and upon confirmation of the salary certificate by primary documents, the salary for any 60 consecutive calendar months of the insurance period before 30.06.2000 may also be taken into account regardless of interruptions.
The insured person's salary coefficient for each month of the insurance period is determined by the ratio of the insured person's salary, from which insurance contributions were paid for the month for which the salary coefficient is calculated, to the average salary in Ukraine, from which insurance contributions were paid for the same month.
The mechanism for calculating average salary (income) indicators for pension calculation for the respective month and year is defined by the Procedure for Determining Average Salary (Income) Indicators in Ukraine, from which insurance contributions are paid and which, according to the Law of Ukraine "On Compulsory State Pension Insurance," are taken into account for pension calculation, approved by the Pension Fund of Ukraine Board Resolution dated 01.02.2008 No. 4-4, registered with the Ministry of Justice of Ukraine on 22.02.2008 under No. 146/14837.
The length of the insurance period is determined in months for the entire period during which the person was subject to compulsory state pension insurance.
The insurance period coefficient is determined by the formula as the ratio of the total months of the insurance period to 1200.
The insurance period and salary coefficients are determined with rounding to five decimal places.
Subscribe to our Telegram channel t.me/sudua and to Google News SUD.UA, as well as to our VIBER and WhatsApp, page on Facebook and on Instagram to stay informed about the most important events.
