7. The Summoned party – the Ministry of Welfare – stated that the principle
of social insurance system is self-financing, i.e. the current disbursements to the
recipients of pensions and allowances are covered by the social insurance
contributions made by the currently employed persons. Due to deteriorating economic
situation, increased unemployment and decrease of wages, the revenues of the State
social insurance budget decrease as well. As a result, the budget revenues do not cover
the expenditure and operation of social insurance system and, consequently, the
pension system is endangered as well.
The evaluation of the current situation in the special budget of social insurance
and forecast for the coming years clearly shows that, in case if the expenditure of
social insurance special budget is not urgently revised, the financial funds for social
insurance service disbursements will be limited, whereas the state social insurance
budget accrual – spent, thus creating a real deficit in the budget.
The Disbursement Law had to be prepared within a very short period of time;
therefore, it was not possible to assess the alternatives. That was also the reason why it
was not possible to assess fully and exhaustively the compliance of the State pension
and allowance disbursement restrictions prescribed by the draft law with the legal
principles stated in the Constitution or following from the provisions thereof. This
situation has been described in the draft law annotation.
The Ministry of Welfare drew the attention of the Constitutional Court to the
fact that the reduction would not apply to the persons who are the recipients of old-age
pension and self-employed at the same time, whereas the pension recipients whose
employment income is equal to the minimum wage or close to it and whose pension
amount is equal to average pension in the State or even higher have the choice whether
to continue employment or to terminate it.
8. The Summoned party – the State Employment Agency – maintained that,
when determining the impact of the Disbursement Law on the number of vacant job
positions, a conclusion can be drawn that the number of vacant job positions has not
substantially changed due to the law coming into effect and possible termination of
employment contracts by pensioners. However, some cases have been established at
the agency’s branches when employers reported vacant job positions at the end of June
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