The summoned party conceded that, from the viewpoint of social protection policy, service pension system is not the most economical and effective social protection mechanism. In accordance with the legal principles and legislative acts of the European Union, it is inadmissible to define occupations related to hazardous working conditions that would require compensation. Employees must be provided with such working conditions, environment and workday regimen that are not hazardous. At the same time one should take into account that it would be unjustified to restrict the rights to service pensions for those persons who have already earned these rights. Determining whether it is justified to pay childcare benefit from the social insurance special budget, M. Poršņova indicated that, without increasing the State social insurance contribution rate, parental benefits were transferred to the State social insurance system, “squashed” in among other services, so to say. Consequently, the proportion of social insurance contributions in the pension fund decreased, and funds were channeled for the disbursement of parental benefits. M. Poršņova held that the social insurance special budget surplus is, by definition, a reserve fund whose existence is permitted but not formalized by the legislative acts, i.e. they do not establish the amount of the surplus required for creating the reserve fund, how and on what conditions these funds can be disposed of and who supervises their disposal. Latvia has chosen a model in which the social insurance special budget is a constituent part of the State consolidated budget, and the Minister for Finance undertakes the responsibility for the management of its funds. However, one should consider the risk that, in the politically split Latvian government, certain political interests may take precedence over other interests. The fact that the government has not used a fairly large surplus of the social insurance special budget in order to continue the disbursement of pensions and allowances, at the same time ascertaining the situation and looking for better solutions, should be assessed negatively. Also, the excuses that recession was sudden are groundless. Assessing whether the constitutional compliance of the restrictions imposed on the disbursement of pensions was contingent on the social assistance services available 24

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