A Ukrainian National Residing in Israel Wins Court Case for Pension Recalculation and Compensation

The Dnipropetrovsk District Administrative Court ruled in favour of a Ukrainian citizen, a permanent resident of Israel, ordering the Pension Fund to recalculate his pension. The court deemed unlawful the reduction of his pension, his classification as a working pensioner, the non-payment of the 'child of war' allowance, compensation for delayed pension payments, and the failure to disburse pension payments to his nominated bank account.

Case Circumstances

The plaintiff resided in Ukraine and received an age pension until 2011. Upon his permanent relocation to Israel, the Pension Fund ceased his pension payments. Subsequently, the pensioner initiated several lawsuits, which compelled the Pension Fund to reinstate payments. However, following the execution of these decisions, the plaintiff alleged that the Fund determined his pension amount without the legally mandated recalculation, classified him as a working pensioner, and failed to accrue legally due payments. These grievances formed the basis of a new lawsuit.

Specifically, the plaintiff contended that the Pension Fund had unjustifiably classified him as a working pensioner, despite a lack of evidence of his employment. Additionally, he sought a pension recalculation in accordance with the Law of Ukraine "On Compulsory State Pension Insurance," payment of the 'child of war' allowance, compensation for loss of income due to delayed pension payments, and assurance of payments to his chosen bank account.

Court Findings

After reviewing case materials 160/13952/26, the court noted that, in light of the Constitutional Court of Ukraine’s decision of 7 October 2009, residing abroad no longer constitutes grounds for discontinuing pension payments. The court also considered the Supreme Court’s established practice and the European Court of Human Rights' ruling in the case "Pichkur v. Ukraine," which affirmed that the right to pension provision cannot be contingent on a citizen’s place of residence.

The court emphasised that legislation permits the submission of applications for pension reinstatement or recalculation via a representative holding a power of attorney. The absence of a specific mechanism for citizens residing outside Ukraine cannot restrict their right to social protection.

Status of 'Working Pensioner' Deemed Unfounded

The court separately assessed the Pension Fund’s grounds for classifying the plaintiff as a working pensioner. The Pension Fund attributed this classification to the absence of documents confirming the individual’s unemployment.

However, the court stressed that the burden of proof for the legality of its decisions rests with the Pension Fund. The defendant failed to provide any evidence that the plaintiff was, in fact, employed. Consequently, the court deemed the plaintiff’s classification as a working pensioner unlawful.

'Child of War' Allowance and Compensation

The court also established that the plaintiff holds the status of a 'child of war', having been under 18 at the end of World War II. Therefore, he is entitled to the allowance stipulated by law.

Furthermore, the court concluded that due to delayed pension payments, the plaintiff is entitled to compensation for lost income. The court referenced the Law of Ukraine "On Compensation to Citizens for Loss of Part of Income Due to Violation of Payment Deadlines" and the Supreme Court’s practice, which mandates such compensation irrespective of whether the corresponding amounts were previously accrued by the Pension Fund.

Court Decision

The Dnipropetrovsk District Administrative Court upheld the claim. The court declared unlawful the actions of the Main Department of the Pension Fund of Ukraine in the Dnipropetrovsk region concerning the reduction of the pension amount, the plaintiff’s classification as a working pensioner, and the inaction regarding the non-payment of the 'child of war' allowance, compensation for lost income, and pension payments to his specified bank account.

Additionally, the court obliged the Pension Fund to recalculate the pension from October 2021 in accordance with the Law of Ukraine "On Compulsory State Pension Insurance," classify the plaintiff as a non-working pensioner, accrue the 'child of war' allowance, pay compensation for lost income for periods determined by the court, and reimburse the plaintiff’s court fee in the amount of 1064.96 UAH.

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