Future retirees and those already receiving a pension, are constantly faced with the problem of calculation of the insurance experience. To know what it is, is easy. Much more difficult is to prove all their months and years of employment.
BBC News Ukraine gathered information about what we need to know and do to set your insurance experience and bring greater pension.
The concept of insurance appeared in Ukraine in 2004, and is the period during which you or somebody else you have paid insurance contributions to the Pension Fund of Ukraine. From the availability of insurance depends on the amount of the pension.
All data on paid contributions, since 2004, included in the State register of compulsory state social insurance. Therefore, since 1 January 2004, to confirm the experience is actually the work book is not necessary, because all information about the employee in the registry that can be accessed by the Pension Fund of Ukraine.
It may be a situation where people work, but the employer does not pay for his insurance premiums. Such months or years does not take into account seniority, when the time comes to retire. All the other years before 2004 will be considered in the workbook and other documents.
Experts say that elderly people who worked in Soviet times, to prove the experience easier than those who started labour activity in times of economic crisis after independence.
How do you know your experience
Check your insurance experience through the Internet — portal of electronic services of the Pension Fund, but first you need to register. To use this portal, it is necessary or to create your electronic signature, or to obtain a registration code in the Department of the Pension Fund. And for this we need to go.
Experience shows that this whole procedure is quite complicated not only for older people but for younger.
In addition, many branches of the Pension Fund installed “information kiosks”. But to get information from there only with the certificate on compulsory state social insurance shall issue the employer. The device reads the bar code and a few seconds shows the desired information on the screen.
But, perhaps, the easiest way is to appeal to the inspector of the Pension Fund, which has access to the portal, and maybe for a few minutes to print information about your experience. This is necessary to have a passport and identification code of the taxpayer.
What is included in the insurance experience
The list of periods of employment included in the experience is determined by the law “On compulsory state pension insurance”:
work experience prior to January 1, 2004 (which turned into insurance);
periods of study in higher, secondary and special schools, in colleges, courses training, advanced training, post-graduate education, doctoral studies and clinical internship with daytime form of study before 1 January 2004;
from January 1, 2004 — official project, but subject to the payment of insurance premiums;
service in the army;
stay at the front of or participation in hostilities;
the care of the child till 3 years;
care group I disability, for a disabled child under 16;
stay on the account in the employment Center
Of course, for inclusion in the insurance experience of these kinds of activities need supporting documents.
The one who works full time, has a right to insurance experience included a full month, not half or quarter of the month. But this will only be possible if the insurance premium will not be less than the minimum.
Statistics of the Pension Fund shows that the vast majority of pensioners receive a pension in the amount from 1500 to 3000 UAH.
If necessary, the insurance periods you can buy. It is very important for those who work informally, not only receives “white” wages. Also this service is available to students enrolled in private educational institutions and institutions, which after 1 January 2004 do not pay the premiums. If the student decides to pay it himself, then finishing training, he will already have 2-5 years of experience.
The purchase experience may need to the unemployed who do not work and do not consist on the account in the employment Center. And employees who work outside Ukraine is illegal.
To buy insurance experience, to come to the Tax office and enter into an agreement about voluntary payment of the insurance premium.
Where to buy experience on the future and the past. Only in the first case to pay the insurance premium can be monthly, and over time will have to pay the necessary amount immediately.
Note that experience is not cheap. To buy one month of insurance, you must pay the insurance contribution in the amount of 22% of the minimum wage in Ukraine. The minimum wage by the beginning of 2020 is 4723 hryvnia. Monthly insurance premium is almost 1,040 USD. The minimum wage in Ukraine is constantly growing, and hence the amount of the contribution will increase.
To prove their experience should he retired
Of course, everyone is interested in the fact that his insurance experience was as much as possible, because this will depend on the size of the pension. However, a clear answer for all the question of what should be the size of insurance experience, no.
If, for example, a person has the right to retire by age 60 years, but insurance experience is not sufficient, he will appoint a pension later — in two, three, four years.
In addition, starting in 2018, the requirement for a minimum of insurance is constantly growing.
If in 2018, the 60-year-old man had to have at least 25 years of pensionable service, in 2019 the minimum is 26, in the 2028-m — at least 35 years. That is, the minimum insurance period will increase annually by one year.
This requirement will be weakened if people will work for several years to 63 or to 65 years. Then the insurance period will be called a “fork” in 63 years — 25-35 years old, and 65 — from 15 to 25 years.
It would seem that all of these requirements and explanations are quite clear. But every future retiree must be ready for a situation when he would have to defend his experience not only to the Pension Fund, but also in court.
First, branches of the Pension Fund working live people who are wrong. And they may inadvertently not take into account any period of service person. This is especially true of periods prior to 2004, when experience was considered in the workbook.
Secondly, according to lawyers involved in the judicial pension matters, to gather more experience and to prove it is up to the pensioner, and not of the employee Pension Fund.
Collection of certificates, certificates, letters from enterprises, institutions and organizations, as well as the search for witnesses who worked with you and who will confirm your employment, is something that may have to do not one month or even a year, if you find that the insurance period is not enough or there’s no information in the workbook.