The Grand Chamber of the Supreme Court Clarified the Reasoning Part of the SC Administrative Cassation Court's Judgment in the Model Case of Granting a Pension on Favourable Terms

The person filed a lawsuit to declare illegal and cancel the decision of the department of the Pension Fund of Ukraine (the PFU) of August 17, 2020 to refuse to grant a pension on preferential terms on the grounds of age in accordance with paragraph 2, part 2, Article 114 of the Law of Ukraine On Compulsory State Pension Insurance; to oblige the PFU to grant her a pension on the grounds of age on preferential terms according to list No. 2 in accordance with paragraph "b" of Art. 13 of the Law of Ukraine On Pension Provision.

At the time of applying to the PFU, the plaintiff was 50 years old, she had more than 31 years as a contribution period, including more than 20 years on list No. 2. The PFU refused to grant her a pension on the grounds of age on preferential terms, arguing that the plaintiff had not reached retirement age, which under paragraph 2, part 2, Art. 114 of the Law of Ukraine On Compulsory State Pension Insurance (as amended on the day of the application) was 55 years old.

The Luhansk District Administrative Court appealed to the Administrative Cassation Court within the Supreme Court with a request to consider this typical case of the Supreme Court as a model one. The Administrative Cassation Court within the Supreme Court satisfied the claim of the person. This decision is exemplary in cases where the subject matter of the dispute is an appeal against the actions of the territorial body of the PFU to decide on the granting of a pension on favourable terms for full-time employees working in harmful and difficult conditions, and it describes the circumstances of the model case which determine the typical application of substantive law provisions.

In reviewing the model case, the Grand Chamber of the Supreme Court changed the reasoning part of the judgment of the Administrative Cassation Court within the Supreme Court, set it out in the wording of this resolution, and left the rest unchanged.

The Grand Chamber of the Supreme Court proceeded from the fact that the Law of Ukraine of March 2, 2015, No. 213-VIII On Amendments to Certain Legislative Acts of Ukraine on Pension Provision (which entered into force on April 1, 2015) increased the previously provided for in paragraph "b" of Art. 13 of the Law of Ukraine On Pension Provision age of acquisition of the right to a pension on preferential terms, in particular, for women from 50 to 55 years.

The decision of the Constitutional Court of Ukraine of January 23, 2020 No.1-р/2020 declared unconstitutional Art. 13 of the Law of Ukraine On Pension Provision as amended by the Law of Ukraine On Amendments to Certain Legislative Acts of Ukraine on Pension Provision.

Thus, at the time of the disputed legal relationship there was a conflict between the provisions of the Law of Ukraine On Pension Provision, on the one hand, and the Law of Ukraine On Compulsory State Pension Insurance - on the other hand, in terms of determining the age of acquisition of the right to a pension on preferential terms. The first of these laws set such an age at 50, while the second set it at 55. Since the provisions of these laws regulate the same range of relations, the Grand Chamber of the Supreme Court came to the conclusion that they clearly contradicted each other.

The Grand Chamber of the Supreme Court noted that in case No. 520/15025/16-а a legal conclusion was formulated that in case of ambiguous or multiple interpretation of the rights and obligations of a person in the national legislation, public authorities were obliged to apply the approach that would be most favorable to the person.

Therefore, in this case the provisions of the Law of Ukraine On Pension Provision are subject to application, taking into account the Decision of the CCU No. 1-р/2020, but not the Law of Ukraine On Compulsory State Pension Insurance.

The resolution of the Grand Chamber of the Supreme Court of November 3, 2021, in case No. 360/3611/20 (proceedings No. 11-209заі21) – https://reyestr.court.gov.ua/Review/101211541.

This and other legal positions of the Supreme Court can be found in the Database of Legal Positions of the Supreme Court - lpd.court.gov.ua.