Indexing of Civil Servants' Pensions: When and How Their Payments Will Increase.


Retired Civil Servants: Legislative Changes and Prospects
Recently, retired civil servants are facing difficult times due to many changes in legislation. Some receive a decent pension, while others live on low payments. Pension expert Sergey Korobkin explains why this situation has occurred and what changes await former civil servants.
History of Changes in Pension Provision for Civil Servants
In 1993, the Law 'On Civil Service' No. 3723 was adopted, which guaranteed a pension to civil servants of up to 90% of their salary. It also provided for automatic recalculation of pensions when salaries increased. Privileges were gradually reduced:
- Starting from 2011, the maximum pension amount was reduced to 80%.
- Since 2015 - down to 60%.
- Since 2015, civil servants lost the right to indexation and recalculation of pensions.
On May 1, 2016, a new Law 'On Civil Service' No. 889 came into force, which envisaged pensions for civil servants on general grounds.
Three Categories of Retired Civil Servants
As a result of the changes, three categories of retired civil servants were formed:
- Those who retired before May 1, 2016 - have a special pension, but payments are not increased.
- Those who do not qualify for a special pension - receive a regular age pension.
- Those who fell into the transitional period - retain a pension of 60% of their salary.
According to expert Sergey Korobkin, the situation is uneven. Modern retirees receive payments based on the current salary, while former civil servants who retired ten years ago receive payments based on outdated salaries.
Recent Changes in Pension Provision
The last indexing of pensions for civil servants took place in 2024. Furthermore, in 2022, the provision for pension indexing was restored. At the beginning of 2024, the Constitutional Court recognized unconstitutional provisions of the Law 'On Civil Service' No. 889, which prohibited recalculation of pensions for civil servants.
According to the Constitutional Court's decision, after the end of martial law, civil servants will receive the right to recalculation of pensions, considering current salaries. This could be a breakthrough moment for many retirees who have long awaited justice.
Conclusions for Retired Civil Servants
For recipients of 'frozen' special pensions for civil servants, it is important to know that the indexing of these pensions has been restored and takes place annually. Also, after the end of martial law, pensions will be recalculated based on the current salaries of civil servants. It should be understood that each civil servant has their unique situation, and the approach to pension recalculation should be calculated individually.
Read also
- Fight against Counterfeiting: Businesses are Invited to Test the e-Excise System
- Car insurance in Ukraine: drivers told how much the cheapest will cost in 2025
- Up to 400 hryvnias per kilo: beef, lard, and sausage prices have jumped in Ukraine
- Ukraine has regulated border crossing for two categories of citizens
- Reuters: Britain and France finalize peace plan for Ukraine to be presented to Trump
- Germany prepares for a new wave of Ukrainian refugees: what's the matter