Pensions can be “cut” by 20%: who does it concern?

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In Ukraine, some pensioners face a fine of 20% of the pension payment. The Pension Fund explained the situations in which a pension can be cut and how to prevent it.

Whose pensions will be cut by 20% in 2024

As noted, the Pension Fund has the legal right to reduce pension payments to citizens. The punishment may affect working pensioners. Such a development awaits if, during employment, an elderly person does not contact the Pension Fund authorities with a notification of the relevant fact, because the availability of work affects the amount of the pension.

If this is not done, the PFU, after consulting with the registers, can reduce the pension payment by 20% to collect the overpaid funds. At the same time, the money will be forcibly collected through the court if the pensioner does not pay this amount voluntarily.

How to avoid punishment for pensioners

In order to avoid punishment, pensioners need to notify the Pension Fund about employment within a few days.

Yes, ten days are allotted for notification to the PFU after a person has been employed.

“Please note pensioners! Be sure to report your employment or dismissal! In the event of employment or dismissal, a pensioner must notify the Pension Fund authorities of this fact within 10 days. The corresponding requirement is contained in Part 2 of Article 16 of the Law of Ukraine “On Mandatory State Pension Insurance,” the PFU notice states.

The fund must also be notified of:

• beginning of entrepreneurial activity;
• dismissal/termination of entrepreneurial activity.

To report the fact of employment, a citizen has two options. You can contact the Pension Fund of Ukraine in person or do it remotely thanks to:

• e-services web portal;
• Diya state services portal.

When applying via the Internet, you must use a qualified electronic signature (KEP).