A case on amendments to the Law on State Funded Pension has been initiated
The Second Panel of the Constitutional Court has initiated a case “On Compliance of Section 4 (1) of the Law on State Funded Pension with Article 1 and Article 109 of the Satversme of the Republic of Latvia”.
Article 1 of the Satversme provides that Latvia is an independent democratic republic, whilst Article 109 of the Satversme provides that everyone has the right to social security in old age, for work disability, for unemployment and in other cases as provided by law.
The Contested Norm provides: “Contributions in a funded pension scheme shall be part of the actual contributions for State pension insurance”. The norm came into force on 1 January 2011.
The Applicants, namely, members of the 10th Saeima [Parliament] indicated that previously the law established that actual contributions into the State funded pension scheme only shall be taken into account. Consequently, the law permits that an employer fails to fulfil its legitimate duty, namely, fails to make social contributions in respect of an employee. Therefore this should not be the employee who suffers from consequences of default.
Linked case: 2011-08-01