A case initiated with respect to norms that set the minimal amount of the state old-age pension
On 22 January 2020, the 1st Panel of the Constitutional Court initiated the case “On Compliance of Sub-para 2.2. of the Cabinet Regulation of 5 December 2011 No. 924 “Regulation on the Minimal Amount of the Old-age Pension”, Sub-para 2.1. of the Cabinet Regulation of 22 December 2009 No. 1605 “Regulations Regarding the Amount of the State Social Security Benefit and Funeral Benefit, Procedures for the Review thereof and Procedures for the Granting and Disbursement of the Benefits” (in the wording that was in force until 31 December 2019) as well as Para 2 and Sub-para 3.2. of the Cabinet Regulation of 3 December 2019 No. 579 “Regulation on the Amount of the Minimal State Old-age Pension” with Article 109 of the Satversme of the Republic of Latvia”.
The Contested Norms
Sub-para 2.2. of the Cabinet Regulation of 5 December 2011 No. 924 “Regulation on the Minimal Amount of the Old-age Pension”: “The minimal amount of the state old-age pension may not be smaller than the state social security allowance, which has been determined in accordance with the regulatory enactments on the amount of the state social security allowance, to which, depending upon the insurance period (in full years) accrued by the person, the following coefficient is applied:
[..]
2.2. for persons, whose insurance period is from 21 to 30 years, –1.3.”
Sub-para 2.1. of the Cabinet Regulation of 22 December 2009 No. 1605 “Regulations Regarding the Amount of the State Social Security Benefit and Funeral Benefit, Procedures for the Review thereof and Procedures for the Granting and Disbursement of the Benefits” (in the wording that was in force until 31 December 2019): “The amount of the State social security benefit shall be as follows:
2.1. for the persons referred to in Section 13 (1) of the Law On State Social Allowances, except persons disabled since childhood, – 64.03euro per month.”
Para 2 of the Cabinet Regulation of 3 December 2019 No. 579 “Regulation on the Amount of the Minimal State Old-age Pension” (hereafter – Regulation No. 579):
“The basis for calculating the minimal old age pension is 80.00 euro, for persons disabled since childhood – 122.69 euro. The basis for calculating the minimal old-age pension shall be reviewed by the Cabinet upon proposal by the Minister for Welfare in accordance with the possibilities of the state budget, assessing the economic situation in the state.”
Sub-para 3.2. of Regulation No. 579 3.2.:
“The amount of minimal old-age pension is determined by applying to the basis for calculating the minimal old-age pension, depending on the person’s insurance period (in full years), for which the old-age pension of the Republic of Latvia has been granted (re-calculated), the following coefficient:
[..]
3.2. for persons, whose insurance period is from 21 to 30 years, – 1.3.”
The Norm of Higher Legal Force
Article 109 of the Satversme of the Republic of Latvia (hereafter – the Satversme): “Everyone has the right to social security in old age, for work disability, for unemployment and in other cases as provided by law.”
The Facts
The case has been initiated on the basis of an application by the Supreme Court. The Supreme Court is hearing an administrative case, in which the applicant request issuing of a favourable administrative act, by which the applicant’s pension would be re-calculated, by applying the average salary of insurance contributions defined in the state. In this case, it has to be established, whether the State has provided to the applicant the social security – the state old-age pension – in a sufficient amount. Hence, it has to be verified, whether the amount of the applicant’s old-age pension complies with Article 109 of the Satversme, taking into account, inter alia, the norms of international law binding upon Latvia.
The Supreme Court holds that the contested norms are incompatible with Article 109 of the Satversme. The legislator had introduced measures to realize the right to social security; however, the State has not ensured realization of this right in at least the minimum amount, in view of the requirements included in the Revised European Social Charter as well as derived from the principle of human dignity and the principle of a socially responsible state. I.e., the minimal amount of the state social security is said to be below the threshold of poverty.
The Legal Proceedings
The Constitutional Court has requested the Saeima to submit a written reply on the facts of the case and the legal reasoning by 23 March 2020.
The term for preparing the case is 22 June 2020. The Court will decide on the type of procedure and the date for hearing the case after it has been prepared.
Linked case: 2020-07-03