1. The subject of the dispute is the appeal against the inaction of the Pension Fund regarding the failure to recalculate the pension by indexation using the appropriate coefficients.
2. The court of cassation, when considering the case, noted that, according to the legislation, the recalculation of pensions should be carried out by increasing the indicator of the average salary (income) in Ukraine, from which insurance contributions were paid, and which is taken into account for calculating the pension. The court emphasized that the Cabinet of Ministers of Ukraine does not have the right to establish a basic calculation value, as this contradicts the very essence of indexation, which consists in maintaining the purchasing power of citizens. The court also took into account previous decisions that established the coefficients for increasing the average salary for the recalculation of pensions in previous years. Therefore, in the opinion of the court, the Pension Fund acted unlawfully by not applying these coefficients when recalculating the plaintiff’s pension. **:** The court departed from previous practice, indicating that Procedure No. 124 (which is used by the PFU bodies) contradicts the Law of Ukraine “On Compulsory State Pension Insurance”.
3. The Supreme Court overturned the decision of the appellate court and ordered the Pension Fund to recalculate the plaintiff’s pension, taking into account all due indexation coefficients.
