Mandatory State Pension Plan (the first level) - there is mandatory automatic enrolment in the state pension plan (as part of the Unified Social Contribution (USC) paid by employers). All payments to individuals within this system are paid from the State Pension Fund.

Mandatory Accumulation Pension Plan (the second level) - provides for the mandatory accumulation of funds of the relevant individuals in the special State Accumulation Fund or in relevant non-state pension funds. The accumulation plans have not yet been implemented.

Additional (Voluntary) Pension Plan (the third level) - this is voluntary for employees, employers, and their associations. This system is based on non-state pension funds, insurance companies, and banks. Additional pension plans are not common in Ukraine.

It is important to identify whether the employer has any debts with respect to the missed payment of contributions under state and/or additional (voluntary) pension plans. The existence of such debts, as well as the potential fines and claims of employees (i.e., for employer's failure to contribute to the relevant plans as required by law and/or the applicable CBA (if any)), can affect the purchase price. However, neither type of pension plans should generally impact deal timings or corporate reorganisation steps (unless there are outstanding debts or other complications). For instance, if the employer provides additional (voluntary) pension plans (which, in practice, is a rarity), assessment on a case-by-case basis of the employer's pension-related obligations is necessary. If employees participate in the state pension plan only (which is usually the case), assess whether there are any USC-related debts of the employer.