specified in the impugned provisions is identical to the substantiation provided with
regard to the old-age pension amount established in the impugned legal provisions.
Therefore, in this judgment there is no need to adjudicate separately the matter
of service pensions as such, and the court conclusions concerning the old-age
pension disbursement amount are equally applicable to the service pension
disbursement amount established in the impugned provisions.
II
23. On 29 November 1990, the Supreme Council of the Republic of Latvia adopted the
Law on State Pensions. The rights to state pension were granted to all the residents of
the Republic of Latvia whose domicile at the moment of the law coming into force – 1
January 1991 – was the Republic of Latvia. This law established the right to social
security in retirement age, prescribing two types of state pension: labour pension (oldage, disability, survivor’s and service pensions) and social pension. The law granted
the right to labour pension to persons under the social insurance of the Republic of
Latvia, whereas social pension was granted to persons without the right to labour
pension.
The pension scheme established by this law was based on the formerly effective
pensioning principles, that is, on redistribution principles, which did not facilitate the
interest of employed persons in securing their old age. This scheme made the whole
society responsible and did not provide a direct relation between the amount of
contributions and the amount of pension granted. The level of pensions granted was
also low (see Paragraph 1 of the Concluding Part of the Constitutional Court
Judgment in the Case No. 2001-12-01 passed on 19 March 2002 and page 7 of the
Pension Reform Conception in Case materials, vol. 10, p. 162).
On 21 October 1993, the Law on Provisional Procedures for Calculating State
Pensions was adopted. This law also assigned the main responsibility for old-age
security to the State instead of each individual resident. In accordance with the
provisions of this law, the disbursed pension amount did not depend on the amount of
contributions, but on the length of service only. The lack of relation between the
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