The state owes pensioners 66 billion due to lost court cases
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The amount of the state’s debt according to the decisions of the courts, in which pensioners managed to recalculate their pensions, has increased to 66 billion hryvnias – these are debts for the recalculation of pensions that people received in previous periods.
About this reported First Deputy Minister of Social Policy of Ukraine Daryna Marchak in the “Economic Chronicles” podcast.
“The problem of arrears due to court decisions is very large today. I would say that it is such a “sword of Damocles” over the pension system. We currently have a debt of 66 billion hryvnias due to court decisions in the pension system. And this amount is growing very rapidly,” – she informed.
The majority of this debt – 57% – arose from court cases of former military personnel and employees of law enforcement agencies, for whom the special pension legislation. In particular, it provides for tying the size of the pension payment to the current amount of monetary support or salary received by the military and representatives of law enforcement agencies today.
Another 26% of the amount owed by the state for pension matters concerns payments to Chernobyl victims.
As Marchak explained, the state has no debt for current payments. At the same time, when the courts decide on the recalculation of a pension for an individual claimant, they usually oblige the state to pay the recalculated pension for the previous 5-10 years. It was based on these calculations that the debt arose.
According to her, one of the reasons why the state loses in courts against pensioners is the excessive complexity of the legislation. “It is not difficult to find many conflicts in such complex legislation, scattered over more than 10 laws, which then give grounds for challenging the way the legislation is interpreted.”
Another problem is that certain provisions of the legislation are canceled by the Constitutional Court, after which the plaintiffs demand that the state pay them according to the provisions that were in force in the previous editions of the laws.
At present, the state almost does not pay off its debt due to lost pension cases. Every year, about 100 million hryvnias are allocated to pay off this debt. According to Marchak, in 2023, the government found only about UAH 360 million to repay debts.
We will remind that in August 2023, the state’s debt due to lost pension cases amounted to approx. UAH 50 billion.
Read more about the nature of these debts in the article: Ukraine lost over 50 billion hryvnias to pensioners in court. There is no money for this. What’s next?
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