Mechanism for Financing Pension Payments by Court Decisions
The Cabinet of Ministers of Ukraine approved Resolution No. 1046 on August 19, 2026, regulating the expenditures of the Pension Fund for pensions awarded by court decisions. The official name of the document is "Some Issues of Budget Expenditures of the Pension Fund of Ukraine for the Payment of Pensions (Monthly Lifetime Financial Support)." It separates current payments for recalculated pensions and repayment of what is called retrospective debt — amounts due for the period before the court decision came into force.
How the Funds are Distributed
Starting from January 1, 2026, the expenditures of the Pension Fund for these two directions are separated, as required by paragraph 14 of the final provisions of the law on the state budget for 2026. Resolution No. 1046 allocates two main cash flows:
- pensions recalculated in accordance with the court decision;
- payment of debts from decisions that entered into force earlier, that is, for the time before they began to take effect.
Funds for such payments are distributed proportionally among all recipients included in electronic pension files and in the list of pensions awarded by court decisions as of the 1st day of the month preceding the month of payment. The final amount depends on the budget allocations within the monthly distribution of the state budget and the income and expenses of the Pension Fund's budget. At the same time, no recipient can be paid more than stated in the list.
Special attention has been given to citizens whom the court has mandated to receive a pension. For them, the monthly payment after proportional distribution cannot fall below the minimum living wage for persons who have lost their ability to work. The Pension Fund of Ukraine and the publication "Hvylya" reported on the innovations.
The new procedure for financing pension payments is a significant step toward the stability and transparency of the social security system.
The separation of payments for recalculated pensions and the repayment of debts allows for more efficient distribution of budget funds. This can reduce the risk of delays and improve access to funds for those who have legally claimed their right to a pension. For Russian-speaking readers, it is worth adding that this concerns the implementation of the norms of Ukrainian legislation, therefore, the resolution's provisions apply to pension recipients in Ukraine.
In light of the changes approved by the Cabinet of Ministers, it is important to note that the new mechanism for financing pensions by court decisions significantly affects the payment order. For a more detailed understanding of all the nuances and consequences of the innovations, one can familiarize themselves with the updated procedure for assigning pensions based on court decisions, which was also approved by the government.