Recipients of old-age pension are a special group of society because the granted
pension is predominantly the only source of income for them. Therefore, there is no
doubt that persons who qualify for old-age pension have relied upon legal order for
calculation and granting of old-age pension, and this reliance has been lawful,
reasonable and justified. The legal order was in force for a long period of time and it
was sufficiently stable and unchanging.
Although the economic situation in the country has deteriorated, the principle of
protection of legitimate expectations still has a major role in the existence of a state
governed by the rule of law. The state has an obligation to provide judicial stability,
whereas persons have the right to rely upon the state fulfilling its obligation in good
faith. The situation when a decision crucial for the state is adopted urgently in two
days time is also unacceptable.
At the same time, the Applicants noted that the principle of protection of
legitimate expectations does not hold an absolute nature. However, a deviation from
the above principle should comply with the constitutional principles, and when the
legislator makes such amendments to the Law, a "lenient" transition to the new legal
order should be ensured. A lenient transition could have been providing both a certain
transition period to the new legal order as well as compensation of losses.
It is especially emphasized in the Applications that the legislator has not
envisaged the obligation to compensate or repay the deducted reduction of state
pensions to the recipients of old-age pension. On the contrary – the Saeima has
rejected the proposal that envisaged the procedure for repaying the deducted share of
pensions.
2.2. The Applicants proceeded that, when determining the compliance of the
impugned provisions with the principle of proportionality, one should bear in mind
that benefit for the society from adopting a certain legal provision or legal order should
be greater than detriment to legal interests of a person. Furthermore, the legislator
should assess the influence of the legal provision to be adopted on each group of
persons who are affected by the provision.
The Applicantss admitted that the economy of the state budget funds could by
itself be the legitimate end of the impugned provisions; however, the economy of the
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