Pension Fund of Ukraine

The Pension Fund of Ukraine is the central executive authority with a special status that manages the solidarity pension system, appoints and pays pensions and social benefits to over 10 million citizens. It is accountable to the Cabinet of Ministers and is funded from its own revenues and state budget subsidies. Since July 1, 2025, it has received additional powers to pay 39 types of state social benefits that were previously managed by social protection bodies.

A chronic challenge for the fund is its budget deficit: every year the state compensates tens of billions of hryvnias due to the demographic crisis, population aging, and losses caused by the war. A separate threat is large-scale corruption in the system of MSEC — medical and social expert commissions — whose decisions serve as the basis for disability pension appointments: law enforcement agencies uncovered thousands of fictitious disabilities among prosecutors, judges, and officials, resulting in illegal payouts from the Pension Fund budget amounting to hundreds of millions of hryvnias. Following extensive inspections in 2024–2025, at least 445 MSEC decisions regarding officials were annulled, and the Pension Fund, together with the State Bureau of Investigations, National Police, and Security Service of Ukraine, is conducting a comprehensive audit of disability payments to civil servants.