Resolution No. 1046 and Its Scope
On August 19, 2026, the Ukrainian government adopted Resolution No. 1046, setting out how pension liabilities arising from court rulings are to be funded. Officially titled “Some Issues of Using the Pension Fund of Ukraine’s Budget Resources for Pension Payments (Monthly Lifetime Cash Maintenance),” the measure lays down a proportional allocation mechanism. Under that mechanism, all recipients named in the electronic pension files and in the generated pension list receive payments in proportion to available budget appropriations. The move is a follow-up to a budget provision that separates court-ordered pension liabilities from routine Pension Fund spending.
Financing Rules for Court-Mandated Pension Payments
The new rules build on Clause 14 of the transitional provisions of Ukraine’s 2026 State Budget Law. Since January 1, 2026, funds from the Pension Fund budget for retroactive court-awarded payments and for pensions recalculated under court orders have to be directed through separate channels, following the procedure established by the Cabinet. Resolution No. 1046 now specifies the details of that procedure for pensions originally calculated or recalculated based on judicial decisions.
A key safeguard in the resolution concerns individuals whose pensions a court has ordered to be granted directly. For those recipients, the monthly payout after the proportional distribution cannot fall below the legally defined subsistence minimum for persons who have lost work capacity. At the same time, the actual payment must stay within the monthly allocations set out in the state budget schedule and the Pension Fund’s revenue and expenditure plan, and cannot exceed the amount owed to the person as recorded in the pension list.
The pension list is compiled as of the first day of the month immediately preceding the one in which the payment is made. The overall goal of Resolution No. 1046 is to create a more equitable and transparent funding process for Ukrainian citizens whose pension entitlements were confirmed by courts only after prolonged delays.
This resolution represents a meaningful step forward in strengthening Ukraine’s social protection system, notably for people who have obtained court rulings that a pension must be granted.
By guaranteeing a minimum floor for these payouts, the measure may help raise living standards among people who have lost work capacity. A clearer financing framework is also intended to curb corruption risks and bolster public confidence in state institutions.
In addition to the recent changes regarding court-ordered pension payouts, it's important for beneficiaries to be aware that voluntary pension contributions now affect subsidy calculations. This development could significantly impact the financial planning of retirees and those seeking benefits, as it introduces new considerations for how pensions and subsidies are interlinked under current regulations.