A judgment in the case on reduction of early old-age pensions has been adopted
The Constitutional Court has adopted a judgment in the case No. 2010-29-01 “On Compliance of Para 30 of Transitional Provisions of the Law “On State Pensions” with Article 1, Article 91 and Article 109 of the Satversme of the Republic of Latvia”.
Article 1 of the Satversme [Constitution] provides that Latvia is an independent democratic republic, Article 91 of the Satversme guarantees equality of persons before the law and the courts, whilst Article 109 of the Satversme ensures 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 that for persons who have been granted early old-age pension from 1 July 2009 shall be disbursed this pension at the amount of 50 percent of the estimated old-age pension amount up to the date of reaching of the general retirement age. However, persons who have been granted early old-age pension before 30 June 2009 shall be disbursed this pension at the amount of 80 percent of the estimated old-age pension amount up to the date of reaching of the general retirement age.
The applicants Ramona Pabērza, Jānis Ozoliņš, Valdis Graudiņš, and Olga Nosenko have indicated, among the rest, that the contested norm infringes the principle of legitimate expectations and that of proportionality; likewise, it restricts, without reason, the right to social security. The contested norm causes unequal situation for persons who have been granted early old-age pension after 1 July 2009 if compared to those persons who were granted the pension before 30 June 2009.
The Constitutional Court concluded that early old-age pension is financial aid of the State that is granted to persons who have ceased working wage labour due to different considerations. Taking into account the particular character of early old-age pension, the State ensures it to persons proportionally to budget resources.
The applicants might have been given grounds to legally count on the fact that the legislator would ensure them the possibility, before 31 December 2011, to take an early retirement; however, they could not count on a particular amount of pension to be disbursed. Neither persons who submitted applications for early retirement to the State Social Insurance Agency [Valsts sociālās apdrošināšanas aģentūra] (VSIA) before coming into force of the contested norm could count on a particular amount of early old-age pension because at that time the VSIA had not yet assessed compliance of the applications with requirements of the Law “On State Pensions” and had not yet granted early old-age pensions to particular persons.
The legislator has granted a person the freedom of choice – either to take an early leave before reaching of the general retirement age and receive early old-age pension at the amount that the legislator has established as the most appropriate one, or not to take an early retirement. In the event if a person chooses early retirement as the most appropriate solution for ensuring his or her subsistence, the persons hall be granted the right to receive early old-age pension at the amount established by the legislator pursuant to social insurance budget possibilities.
Consequently, the Constitutional Court recognized the Contested Norm as compliant with Article 1, Article 91 and Article 109 of the Satversme of the Republic of Latvia.
The judgment of the Constitutional Court is final and not subject to appeal. The judgment shall come into force on the date of publishing it in the newspaper “Latvijas Vēstnesis”.
Linked case: 2010-29-01