Pension payments – monetary payment to the participants of private pension provision or his heirs carried out due to the accumulated pension funds and accounted on the individual pension account of funds in cases provided by the Law of Ukraine "On private pension provision." Pension payments from pension funds are made independently of receiving payments on obligatory state pension insurance or other sources.
Pension payments may be of the following types:
- pension for a specified period;
- single pension payment.
Grounds for the pension payments by pension fund are:
- Achievement by the Fund participant of retirement age set under the Law of Ukraine "On private pension provision."
- Confession of the participant of fund an invalid.
- In the case of acquisition by the participant the right to get disability pension for the mandatory state pension insurance, the payment of pension at the expense of the pension fund is allowed before the retirement age. In this case, the fund member has the right to determine his retirement age after the appearing of disability and apply to the administrator.
- Medically confirmed critical state of health (cancer, stroke, etc.) of the Fund participant.
- Departure of the fund's participant for permanent residence outside Ukraine.
- The death of the Fund participant.
Retirement age, after reaching which, the fund member has the right to obtain pension payments is determined by the Fund participant’s statement, the form of which is set by the State Commission for Regulation of Financial Services Markets of Ukraine. Retirement age, that is determined by the member of the fund may be lower or higher of the age of retirement, which gives the right to receive a pension for obligatory state pension insurance, but not more than 10 years. In a statement of the Fund participant, the date of beginning of his retirement age is determined, the participant is also required to indicate chosen type of pension payment. The application is submitted to the administrator of the pension fund no later than two months before the beginning of retirement age set by the member of the fund. A participant may change determined by him retirement age by submitting a declaration to the administrator no later than 15 working days before the beginning of retirement age prescribed by him.
Pension for a specified periodFrequency of pension payments for a specified period is determined by the participant and calculated independently for at least ten years from the start of the first payment. The pension for a definite period starts from the date of achieving by the fund participant of the age specified in his application to the administration with the first payment during 45 working days.
Single pension payment
Grounds for the single pension payment are:
- Medically confirmed critical state of health (cancer, stroke, etc.) of the Fund participant or confession of the participant of fund an invalid;
- The amount of pension funds, that are owned by the participant, does not reach the minimum amount of pension savings on the date of the beginning of retirement age, which is set by the state (in 2011 this figure was 45 000);
- Departure of the fund's participant for permanent residence outside Ukraine;
- The death of the Fund participant.
Inheritance and distribution of pension funds
Pension funds may be inherited by the person (s) who is the heir of the owner of such funds. Inherited pension funds are paid to the heirs as a single pension payment.
Pension funds of the participant that are accumulated during the stay of one of the spouses in marriage are a joint property of spouses, unless otherwise is stipulated in the marriage contract. In the case of the distribution of pension funds as a result of the divorce, each of the parties determine the pension fund due to transfer her/her pension money.