Refund of illegally obtained pensions, subsidies and benefits

Vladislav Borysenko, managing partner of Borysenko & Partners Law Firm, commented for Segodnya on the draft law simplifying the recovery of pensions, subsidies, and benefits received by Ukrainians illegally.

First of all, Vladislav noted that government agencies do not always have the right to demand the return of unjustified government payments.

According to Article 1215 of the Civil Code of Ukraine, even when funds were received illegally, they are only obligated to return them if there is a calculation error on the part of a government agency or the recipient’s bad faith. Moreover, the plaintiff, i.e., the government agency, must prove the error or bad faith. Therefore, courts often side with citizens and deny such claims.

Vladislav also added that Bill No. 3551, as currently drafted, does not exempt all government agencies from paying the court fee, so the provisions for pensions and stipends remain unchanged.

After the bill was registered in parliament, concerns arose that its adoption would increase the number of payments collected from Ukrainians and the number of lawsuits.

“Whether the number of lawsuits will increase after the court fee is abolished is difficult to say, but it is likely to happen, as limited budgetary allocations for these purposes currently represent a serious deterrent to initiating legal proceedings,” says Vladislav.

For a more detailed analysis of this topic, read the study by Segodnya.