Banks will monitor pensioners’ accounts: whose payments may be suspended by the Pension Fund?

Banks introduce monitoring of pensioners’ accounts — the Pension Fund may suspend payments for those who have been receiving pensions by proxy for more than a year, have not undergone physical identification, or have not made any outgoing transactions; to restore payments, identity confirmation will be required in person or online.
Bank control and suspension of pension payments: analysis of the changes
Ukraine’s modern pension system is undergoing reforms aimed at improving transparency and the protection of citizens’ social rights. In 2025, the government and the Pension Fund announced a draft regulation obliging banks to introduce additional monitoring of pension accounts. These changes concern not only verification procedures but also the rules for assigning and suspending pension payments for certain categories of pensioners.
Reasons for enhanced control
The introduction of new rules responds to risks of fraud, abuse of social benefits, and the need to align Ukraine’s pension system with European standards. Monitoring pensioners’ accounts gives the Pension Fund and banks tools to combat misuse and double payments.
How the new mechanism will work
Every month, banks will submit information to the Pension Fund about pensioners who:

• have received pensions by proxy for more than a year (without personal presence);
• have not undergone physical identification (in person, at a branch, or via online checks);
• have not made outgoing transactions for a prolonged period.
  Who may have payments suspended?
  The Pension Fund will receive automated signals from banks about “risky” pensioners and may initiate suspension:
• if the account holder has not been identified for a year;
• if no account activity has occurred for a long time;
• if funds are received by proxy without personal identification.
  Payments can be restored only after identification — in person at a bank or via online video confirmation.
  Legal and practical features
  Banks are required to:
• exchange data monthly with the Pension Fund;
• maintain updated information on the last identification date;
• ensure personal data protection.
  Certain changes will affect the procedures for receiving unpaid pensions and funeral assistance. Where relatives of a deceased pensioner live in government-controlled territory, payments will be made as usual; otherwise — only with documented confirmation in the Fund.
  Why this control?
• To prevent pension fraud;
• Improve accuracy and relevance of data;
• Prevent losses to the Pension Fund from uncontrolled or double payments;
• Align with European compliance standards.
  Risks for pensioners
• If the account is not used or identification not passed, payments may be suspended;
• People residing abroad or in occupied areas may encounter extra verification and documentary demands;
• Automation mandates regular status checks, which could be challenging for elderly or less mobile individuals.
  Outlook and consequences
  The reform is a step toward a transparent pension system. The new mechanism will help detect violations faster, protect funds, and reduce duplications. The main thing is to follow verification requirements and be informed about the process.
  Advice
• Check your status with the bank and Pension Fund at least once a year.
• Follow identification requirements to avoid payment suspension.
• If suspended, promptly contact your bank or the Fund for identity verification.
• Never share personal data with unknown persons or dubious websites.
  Bank monitoring will help minimize risks and build European-level citizen protection in Ukraine’s pension system.

Author: Ihor Yasko, Managing Partner of JSC “Legal Company WINNER”, Ph.D. in Law.