illnesses, disability insurance and maternity and sickness insurance (see, e.g. drafting
documents of the Law on State Social Insurance, Case materials, vol. 9, pp. 166-180;
Pension Law conception, p. 3, Case materials, vol. 10, p. 158; Ministry of Welfare
Social Report for 1998, pp. 12-37).
Consequently, the substantial cause of the negative financial balance in the social
insurance budget is the establishment of the parental benefit as a new type of social
insurance, without changing the social contribution rate. For instance, the total
economy planned to be achieved for the year 2009 as a result of the enactment of the
impugned provisions was approximately 88 million lats. This sum corresponds to the
planned outlays of parental benefits from the social budget for approximately one year
and one month.
It can also be concluded that the sustainability of the social insurance special budget
was affected by other hasty and inconsiderate decisions in the field of social policy, for
example, the increase of pension premium to 70 santims for each year of the length of
insurance accumulated until 1996, the decrease of mandatory social insurance
contributions channelled to pension funds as well as the inconsiderate pension
indexation mechanism (see Sub-paragraph 4.19 of the World Bank report Aide
Memoire, Case materials, vol. 9, p. 105, and the opinion of
M. Porsnova, Case
materials, vol. 9, p. 204).
As already stated in this Judgment, the Latvian social insurance system is fragile, and
every inconsiderate decision may cause serious consequences for the stability of this
system in a long-term perspective. Therefore, the State has a duty to put its social
policy into effect by managing the social insurance special budget funds with extreme
care. The decisions adopted in haste and without sufficient prior deliberation, along
with the economic situation in the State, have caused the current difficult situation in
the social insurance special budget.
31.2. Rights to social security of at least the minimum level are included in the scope
of Article 109 of the Constitution, and the aim of these rights is to ensure life worthy
of a human being (see the Conclusive Part of the Constitutional Court Judgment in the
Case No. 2000-08-0109 passed on 13 March 2001). Pensioners are to be deemed as a
social group that needs special protection, all the more those pensioners whose income
is low and estimated as not reaching the minimum social security.
62
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