when persons are unable to provide for themselves and they become the recipients of
social assistance, but such an outcome contradicts to the principle of socially
responsible state. Establishing different amounts of pensions disbursable to different
groups of persons depending on their income levels would be less restrictive means.
Although the measures specified in Article 3 of the Disbursement Law are
permissible, the legislator had a duty to provide lenient transitional provisions, so that
persons could adapt to the new legal order. In this case, the law has come into effect
earlier than one month after its adoption, which is in contradiction to the principle of
protection of legitimate expectations or the principle of legal stability.
18. The Summoned party – Mg. mpa. Maija Poršņova – pointed out that the
investment of social insurance funds in the State Treasury has both positive and
negative aspects. On the one hand, the circumstance that the funds in question are
subject to a lesser economical risk since they are invested in reliable financial
instruments, at the same time retaining their relative value, can be deemed as the
positive aspect. Such an action is particularly advisable in the situation of economic
instability, for it lessens the likelihood of losing these funds. On the other hand, the
situation that the Cabinet of Ministers can dispose of these funds, thus destabilizing the
social insurance system on the whole, can be deemed as the negative aspect.
Assessing whether the legislator has treated the employed pensioners
differently than the old-age pension recipients, Maija Poršņova pointed out that the
Cabinet of Ministers and the Saeima, when they proposed the impugned provisions for
adoption, knew the Judgment of the Constitutional Court in the case No. 2001-12-01
passed on 19 March 2002. It is evident that the decisions of these institutions were
taken on account of the situation that has developed as a result of the economic crisis.
Article 1 of the European Social Charter establishes that everyone shall have the
opportunity to earn his or her living in an occupation freely entered upon. However,
the European Code of Social Security permits the reduction of pension disbursement
amounts in certain cases.
With respect to working pensioners, the principle of protection of legitimate
expectations has been violated first of all because the working pensioners’ rights to
resign from work in accordance with the procedure established by the law have been
denied by the sudden coming into force of the impugned provisions.
23
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