The cut of long service pensions by ten percent for military persons who have reached the age of granting old age pension does not comply with the Satversme
Today, on 15 April, the Constitutional Court adopted a decision in the case No. 2009-88-01 “On Compliance of Para 14, Para 16 and Para 17 of the Transitional Provisions of the Law “On Long Service Pensions of Military Persons” with Article 1, Article 91 and Article 109 of the Satversme (Constitution) of the Republic of Latvia”.
Article 1 of the Satversme provides that Latvia is an independent democratic republic, whilst Article 91 of the Satversme guarantees equality of persons before the law and the courts, and 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 for a reduction of long service pensions by ten percent. When examining the constitutional claim, the Constitutional Court assessed the contested norm insofar as it restricts the fundamental rights of the applicant. Since the cut of long service pensions by 70 percent did not apply to the applicant (it shall only be applied to employed pensioners), the Court did not have the right to assess this reduction in the frameworks of the case under review. However, the Constitutional Court indicated in the judgment that the Court has already assessed restrictions of employed pensioners in its previous judgments; therefore in accordance with its freedom of action the legislator should revise the regulatory framework applicable to long service pensions and duly prevent possible infringement of fundamental rights of the beneficiaries of long service pensions also in relation to other groups of pensioners who receive long service pension.
The Constitutional Court has concluded that persons who have reached the age of granting the old age pension as established in the Law “On State Pensions” shall be regarded as a special social group because incomes of these persons and also their possibilities to participate in different social live processes are reduced due to cessation of working.
Regulatory framework establishing provisions on long service pensions for military persons are in force since 1998. Although the norms underwent changes in the course of time, all amendments were beneficial for persons. Consequently, this regulation is regarded as express and it guarantees legal security for persons allowing them to count on disbursement of a long service pensions at a certain amount. By reducing the amount of pensions and also by failing to provide any compensating mechanism, the principle of legal security was infringed; therefore the contested norm cannot be recognized as proportional.
Consequently, the contested norm, insofar as it applies to persons who have reached the general retirement age, does not comply with Article 1 and Article 109 of the Satversme. Withdrawals from the pensions must be ceased no later as from 1 June of this year, whilst the unpaid part of the pensions must be disbursed to pensioners no later than before 1 July 2015.
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: 2009-88-01