Revised Pension Payment System for State-Supported Retirees
Starting the first day of next month, a new system for pension payments will take effect for retirees in full-time state care at specialized institutions. Under these rules, an individual receiving full state support will personally receive only 25% of their total pension amount. The remaining funds will be allocated to the institution to cover the costs of their care and accommodation. This change is part of a broader effort to streamline social support funding in Ukraine's pension system.
The core principle is that the retiree is guaranteed a minimum of 25% of their pension as a personal allowance. If the total pension amount significantly exceeds the actual cost of their care, the retiree will receive the difference between the pension sum and the institution's expenses, provided their personal payment does not fall below the 25% threshold.
Social Protection Safeguards
Certain groups are exempt from these reductions. Individuals with recognized special merits to Ukraine will continue to receive their full pension without any deductions. Orphaned children receiving a survivor's pension are entitled to 100% of the awarded sum. Other children under state care will receive 50% of their pension. All funds for children are to be transferred directly to their personal bank accounts.
Furthermore, the payment restrictions are lifted if a pensioner temporarily leaves the institution, for instance, for a hospital stay or a vacation. For the entire period of their absence, they will receive their full pension amount. Experts from the Ukrainian Pension Fund clarify this provision:
From the date of departure until the date of return inclusive, the pension will be paid in the full assigned amount.
These new distribution rules represent a significant shift in how pensions are managed for those in full-time state care, aiming to balance institutional funding with a baseline level of financial autonomy for retirees.
The introduction of these rules is intended to optimize the financing of specialized care facilities, allowing them to manage resources more effectively and potentially improve service quality. It is crucial that this restructuring does not adversely affect retirees' standard of living, necessitating vigilant oversight by state authorities during implementation.