The cut of long-service pensions for employees of the Interior ministry system does not comply with the Satversme
Yesterday, on March 31, the Constitutional Court adopted a judgment in the Case No. 2009-76-01 “On Compliance of Para 20 of the Transitional Provisions of the Law “On Long-Service Pensions for Interior Ministry System Employees with Special Service Ranks” with Article 1 and 109 of the Satversme (Constitution) of the Republic of Latvia”.
The contested norm provides: “From 1 July 2009 to 31 December 2012, the long-service pension for a socially insured person (an employee or a self-employed person) as from 1 July 2009 shall be recalculated and reduced by 70 percent based on the estimated amount of the long-service pension. The amount of the long-service pension shall be restored as from the first date of the month proceeding the month when the status of a socially insured person is lost.”
The case was initiated based on an application of Uldis Mugurevičs, wherein it was indicated that the contested norm does not comply with the principle of legal security and the principle of proportionality that follow from Article 1 of the Satversme, as well as with Article 109 that 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 Constitutional Court indicated that long-service pension is an additional social guarantee for persons who have fulfilled, under special circumstances, certain functions in the interests of the State. The Court recognized that at the particular moment when remuneration of persons employed in home affairs system is being considerably cut, a reasonable cut of long-service pensions would be permissible. However, the established reduction of the pension, which is more than two thirds of the entire amount, is very significant; moreover, the amount of incomes of a socially insured person is not taken into consideration.
Therefore the Court recognized that the contested norm does not comply with Article 1 of the Satversme, namely, the principle of legal security and the principle of proportionality, as well as with Article 109 of the Satversme. The Court ruled that deductions from the pensions shall be ceased no later than by 1 June of this year, whilst the unpaid part of the pension shall be reimbursed to pensioners no later than by 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: 2009-76-01