How to Prevent Your Pension Payments from Being Frozen Due to Inactive Bank Cards

Ukraine Tightens Oversight of Dormant Pension Accounts

According to ХВИЛЯ: Starting in May 2024, Ukrainian banks will implement stricter monitoring of pension accounts that show no financial activity. Under new rules, banks must report to the Pension Fund of Ukraine (PFU) any pension cards that have had no transactions for a six-month period. Consequently, the transfer of pension payments to such cards may be suspended.

While the pension funds continue to be accrued by the PFU, they will not be transferred to the inactive card. To resume payments, pensioners must personally contact their bank or the PFU to confirm they are still using the account. As noted by the channel "Chesnyy Informer,"

"the funds continue to accumulate and wait in the PFU's accounts, but they do not reach your card."

Steps to Avoid Payment Suspension

To prevent your pension payments from being blocked, it is sufficient to perform any transaction with your card once every few months. Recommended actions include:

• Withdrawing any amount from an ATM;
• Paying a utility bill using the card;
• Making a purchase at a store.

This simple step will help you avoid the hassle of a suspended payment.

This warning is particularly relevant for elderly pensioners who receive payments via Ukrposhta but have not collected them for an extended time, as well as for individuals who have left Ukraine while leaving their card behind. This policy is part of broader financial monitoring reforms in Ukraine aimed at increasing transparency, but it places a new burden on vulnerable groups. Family members and caregivers of elderly pensioners should be aware of this change to assist them in keeping their accounts active and ensuring uninterrupted access to their funds.

As the new regulations take effect, it's crucial for pensioners to be aware of potential issues that may arise, especially for those living abroad. To understand the implications and challenges faced by pensioners outside Ukraine, it’s important to delve into the reasons why their cards may be blocked and how to navigate these changes effectively.