The reduction primarily affects retirees who either return to work or resign without notifying the Pension Fund of Ukraine (PFU). Such situations may result in retirees receiving additional payments they are not entitled to, such as benefits intended solely for non-working pensioners. If any overpayments are discovered, retirees are obligated to return the excess funds received.
According to the PFU, retirees can voluntarily return the overpaid amount.
However, if they fail to do so, the fund has the right to deduct up to 20% from their monthly pension payments until the debt is settled.
To avoid such issues, retirees must inform the PFU of any relevant changes within 10 days. This includes notifying the fund about the commencement or cessation of any form of entrepreneurial activity.
Even if a sole proprietor does not earn income, they are still considered employed, which disqualifies them from receiving certain benefits and additional payments.