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decrease of pensions, maintaining that the required financing should be obtained from the funds of State administration. There have been no other consultations. LPS conceded that it is not competent to assess the compliance of the impugned provisions with the Constitution; nevertheless, it acknowledged that these provisions are unconformable with Article 1 of the Constitution. Local and regional governments do not have sufficient funds available to provide the mandatory social services and social support to population stipulated by laws and the Cabinet regulations. 15. The Summoned party – the Latvian Pensioners’ Federation (hereinafter – LPF) – pointed out that the LPF Chairperson received the text of the Agreement of 11 June only at 22.20 on 11 June 2009, and it was no longer possible to consider any amendments required therein. The Agreement and the amendments thereto have been adopted without any coordination with the LPF. The LPF Chairperson, after examining Section C of the Agreement of 11 June, has acknowledged that the body of measures included therein is unlawful. The President of the State was the only official who gave a hearing to her objections, and he recommended signing the Agreement. While drafting the changes to be implemented in the area of social security, several alternative solutions have been considered. The LPF Chairperson has been invited to the meeting of the Cabinet of Ministers taking place on 8 June 2009 in order to hear the proposals of the representative of the Ministry of Finance, and she considered these proposals as unacceptable. Therefore, the LPF Chairperson asked for an opportunity of discussing the issue pertaining to social security reduction with the Minister for Welfare and the LPF Board members. On 9 June 2009, at the meeting with the Minister for Welfare, an agreement has been reached concerning a reduction of pensions for 20 percent for those employed pensioners whose pensions exceed 100 lats and non-disbursement of pension premiums to those pensioners who have retired after 1 January 1996. The agreements referred to at the meeting of the Cabinet of Ministers of 9 June 2009 have not been accepted. The LPF pointed out that the impugned provisions do not comply with Articles 1, 105 and 109 of the Constitution, and its arguments were similar to those of the Applicantss. 20

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Compliance of the First Part of Section 3 of State Pensions and State Allowance Disbursement (Case 2009-43-01)

Judgments

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Country

Latvia

Rights Involved

Right to social security

Issue

Minimum core obligations
Participation

National Court

Constitutional Court of Latvia

Date: Dec 21, 2009

Summary: During a crisis where Latvia suffered a 70% increase in its debt-to-GDP ratio, and in accordance with a pledge made to the European Community, the government passed two laws, reducing pensions for unemployed pensioners by 10% and pensions for employed pensioners by 70%; the government also made a commitment to the IMF regarding economic stabilization. The Court here considered several issues and held that: (1) the provisions violated pensioners’ rights; (2) international commitments cannot justify the restriction of constitutionally established human rights; (3) the government had not sufficiently considered better alternatives or adopted the most lenient solution; and (4) the non-temporary nature of the measures was unconstitutional. This case affirms the principle of respecting individuals’ legitimate expectations and their right not to be subjected to unjustified cuts to their pensions, as well as the principle that permanent measures cannot be used to address temporary crises.

Primary Documents

Compliance of the First Part of Section 3 of State Pensions and State Allowance Disbursement in 2009, Case No. 2009-43-01
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Compliance of the First Part of Section 3 of State Pensions and State Allowance Disbursement (Case 2009-43-01)

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