Pension supplements: when the minimum wage 'eats up' the pension and experience doesn't save.

Understanding pension calculations: how is the disability pension calculated?

Understanding the intricacies of pension calculations, including experience supplements and specific features of disability pensions, is important for many citizens. Often, when looking at their personal cabinet on the Pension Fund portal, people encounter figures that can be difficult to interpret.

'This is far from the first instance when a person looks into their personal cabinet on the Pension Fund electronic services portal but cannot figure out what is what. So let's consider this situation using a specific example,' - notes expert Korobkin.

Pension expert and journalist Serhiy Korobkin, in his video blog 'On Pension', examined a viewer's question regarding the additional payment for overwork experience for individuals receiving a disability pension of group III. He explained in detail how this type of pension and the additional payments for extra experience are calculated.

Calculation of additional experience for disability pension

When assigning a disability pension, the period from the day of disability establishment until reaching retirement age is also counted. This is done to calculate the potential pension by age. For example, in Vitaliy's case, the additional experience amounted to 4 years, as he received the pension at 37 years old and the retirement age (conditionally) is 60 years.

• Age at the Time of disability establishment - 37 years.
• Period until reaching retirement age (additional experience) - 23 years.
• Actual insurance experience - 17 years 5 months.
• Total experience for calculating potential pension by age: more than 35 years is considered as overwork experience.

'Anything over 35 years for men is considered as overwork experience. Thus, in this case, we see 4 full years of overwork experience,' - explains Korobkin.

The calculation of additional experience affects the size of the pension and the supplement for overwork experience, which can amount to up to 1% of the main pension by age for each full year beyond the norm.

The minimum pension payment for individuals under 70 years with sufficient experience and disability pension is guaranteed by government regulations.