A case initiated with regard to exemptions in calculating old-age pension
On 30 November 2015 the 2nd Panel of the Constitutional Court initiated a case “On the compliance of the second sentence of the third part of Para12 in the Transitional Provisions of the law “On State Pensions”, insofar it provides that the old-age pension to be granted instead of service pension may be granted in the amount that is smaller than the service pension received until the moment of granting the old-age pension, with Article 91 and Article 109 of the Satversme of the Republic of Latvia.”
The contested norm (in italics)
The third part of Para12 in the Transitional provisions of the law “On State Pensions” provides:
“Persons who have been granted a service pension in accordance with the by-law “On Service Pensions” and the by-law “On the Rank and File and the Unit Commanding Personnel of the Institutions of the Ministry of the Interior Employee Pensions (Employer Pensions)” and who have reached the age laid down in Section 11, Paragraph one of this Law after coming into force of this Law shall be granted an old-age pension instead of the service pension. It shall not be less than the service pension, which was received up to the moment when old-age pension was granted, except cases when the right to an old-age pension is acquired only due to an international agreement in the field of social security or application of Regulation No 883/2004, or a case when the length of period of insurance, for which an old-age pension has been calculated, is less than the length of period of insurance, for which a service pension has been calculated.”
Norms of Higher Legal Force
Article 91 of the Satversme: “All human beings in Latvia shall be equal before the law and courts. Human rights shall be realised without discrimination of any kind.”
Article 109 of 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 application to the Constitutional Court was submitted by the Administrative District Court, which is hearing a case regarding calculation of the old-age pension. The person, who has turned to the Administrative District Court, has been receiving a service pension since 1994. Upon reaching a certain age, the person was granted an old-age pension instead of the service pension. The law “On State Pensions” provides that in such a case the amount of old-age pension should be at least the same as the service pension. Whereas in this particular case the exemptions defined in the contested norm had been applied to the person, thus the old-age pension was considerably lower than the service pension.
The Administrative District Court holds that the contested norm is incompatible with the principle of equality, as it provides for, without a defined legitimate aim, differential treatment of persons, depending upon the time when the service pension was granted. I.e., the norm applies only to those persons, to whom a service pension was granted from 1992 to mid-1998. Whereas those persons, to whom a service pension has been granted until the end of 1991 or after 1998, the granted old-age pension is at least in the same amount as the service pensions received prior to it.
Thus, it is alleged that the contested norm is incompatible with Article 91 and Article 109 of the Satversme.
Legal proceedings
The Constitutional Court has invited the Saeima to submit to the Constitutional Court a written reply on the facts of the case and the legal substantiation by 1 February 2016.
The term for preparing the case is 30 April 2016. The Court shall decide on the type of procedure and the date for hearing the case after the case has been prepared.
Linked case: 2015-23-01