1. The subject matter of the dispute in this case is the inaction of the Main Department of the Pension Fund of Ukraine regarding the failure to index the plaintiff’s pension using the established coefficients for increasing the average salary from which insurance contributions were paid, and the obligation to conduct such indexation.
2. The Supreme Court, in considering the case, noted that pension indexation is an integral part of pension payments, aimed at maintaining the purchasing power of citizens in the face of inflation. The court emphasized that the Cabinet of Ministers of Ukraine does not have the right to establish a basic calculation value for indexation, as this contradicts the Law of Ukraine “On Mandatory State Pension Insurance”. The court departed from its previous position regarding the application of the provisions of Procedure No. 124 in the part that contradicts Law No. 1058-IV, emphasizing that the average salary indicator that was directly taken into account when assigning the pension should be used when recalculating the pension. At the same time, the court took into account the deadlines for appealing to the court, noting that the right to pension indexation is not absolute and is limited to a six-month period for appealing to the court. The court also noted that if the indexation amounts were not actually accrued, then there are no grounds for applying the rule regarding the absence of any time limit for the amount of pension unpaid to the pensioner.
3. The Supreme Court overturned the decisions of the courts of previous instances and issued a new decision on partial satisfaction of the claims, recognizing as illegal the refusal to conduct pension indexation from a certain date and obliging to recalculate and pay the pension taking into account the established coefficients, but only within the six-month period for appealing to the court.
