Good day! I will gladly analyze this court decision for you.
1. The subject of the dispute is the appeal against the refusal of the Main Department of the Pension Fund of Ukraine to index the plaintiff’s pension using the government-established coefficients for increasing the average wage.
2. The court of cassation noted that, according to the law on pension insurance, the recalculation of pensions should be carried out by increasing the average wage indicator that was taken into account when assigning the pension. Instead, the government procedure provides for indexation based on the average salary indicator as of October 1, 2017, which contradicts the law. The court emphasized that the law has higher legal force than a subordinate act, and it is the legal provisions that should be applied when recalculating pensions. **** The court departed from the previous position regarding the application of the provisions of Procedure No. 124, which contradicts Law No. 1058-IV. At the same time, the court took into account the terms of appeal to the court, establishing that the payment of underpaid pension amounts should be made only for a period not exceeding six months before the plaintiff applied to the court. The court also took into account that the indexation amounts were not accrued to the plaintiff, therefore there are no grounds for applying the rule regarding the unlimited period of pension payment.
3. The court of cassation overturned the decisions of the previous instances and issued a new decision, which partially satisfied the claims, recognizing the actions of the pension fund as illegal and obliging it to recalculate the pension taking into account the established coefficients, but with a restriction on the period of payment of underpaid amounts.
