Not all work experience counts towards a pension: the Pension Fund explained an important difference
Ukrainians continue to receive pensions and other social benefits, but each year the requirements for insurance experience necessary for retirement by age increase. The Pension Fund of Ukraine explained the difference between employment and insurance experience and which of them is decisive today for pension assignment.
Employment experience and insurance experience: what is the difference
The Main Department of the Pension Fund of Ukraine in the Volyn region noted that employment experience is the period of a person's labor activity confirmed by records in the work book or other documents.
The Fund reminded that this concept was mainly applied before January 1, 2004, when the Law of Ukraine "On Compulsory State Pension Insurance" came into force.
In contrast, insurance experience is the period during which a person was insured in the compulsory state pension insurance system and for which insurance contributions were paid in an amount not less than the minimum insurance contribution.
The Pension Fund emphasized that today insurance experience is the main condition for assigning an old-age pension and directly affects its amount.
Periods of work under an employment contract, entrepreneurial activity, and other periods defined by law can be counted towards insurance experience, but only if insurance contributions were paid.
The main difference between the two concepts is that employment experience confirms the fact of work or other activity, while insurance experience confirms the payment of contributions to the social insurance system.
Thus, for counting insurance experience, not only official employment is important but also the actual payment of insurance contributions.
Which experience is considered when assigning a pension
The Pension Fund explained that periods of work before January 1, 2004, are counted towards insurance experience based on documents of labor activity according to the legislation in force at that time.
At the same time, after January 1, 2004, the decisive factor for counting experience is the payment of insurance contributions. Information about such contributions is contained in the Register of Insured Persons.
The Pension Fund stresses that future pensioners should not only work officially but also monitor whether their employer properly pays insurance contributions for them. Ukrainians are also advised to regularly check information about their insurance experience, as it determines the right to a pension and the amount of future payments.
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