Good afternoon! I will gladly help you understand this court decision.
1. The subject of the dispute is the appeal against the refusal of the Main Department of the Pension Fund of Ukraine in the Mykolaiv region (GU PFU) to recalculate the pension by indexing it using the coefficients for increasing the average wage indicator.
2. The court of cassation established that the GU PFU acted illegally by not applying the increase coefficients (1.14, 1.197, 1.0796) to the average wage indicator that was used to calculate the plaintiff’s pension when it was indexed in 2022-2024, and 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 Compulsory State Pension Insurance.” At the same time, the court took into account the terms of applying to the court and limited the period for recalculating the plaintiff’s pension, noting that the right to index the pension is not absolute and the protection of this right is limited by the term of applying to the court. At the same time, the Supreme Court deviated from previous conclusions regarding the application of terms in such cases, noting that in this case it is not about amounts accrued but not paid through the fault of the state, but about the accrual of indexation.
3. The Supreme Court overturned the previous court decisions and partially satisfied the claim, recognizing the inaction of the GU PFU as illegal and obliging it to recalculate and pay the pension, taking into account indexation, but limiting the recalculation period from March 19, 2024.
