It follows from the Applications and the replies of the Saeima that the reduction of pension disbursements affects the first level of pension system only (mandatory State non-funded pension scheme). The purpose of the first level of State pension system is to guarantee the minimum income level to the residents of retirement age. Since the first level is mandatory and based on the principle of social insurance, there is a connection between the mandatory social insurance contribution payments made by the residents and the level of service attained as the end result (see p. 12 of the Pension Reform Conception in Case materials, vol. 10, p. 167). In the context of the first level of pension, the right to request an identifiable share is not granted to an individual person; however, the person can hope to receive material support that will depend on the situation at the time when pension is to be received. The pensions of this system are based on the so-called collective insurance principle, and they cannot be granted on the basis of individual contribution. In this case, persons do not acquire the right to a specific sum, for it is subject to fluctuations and legal regulation (cf. Paragraph 2 of the Concluding Part of the Constitutional Court Judgment in the Case No. 2001-02-0106 passed on 26 June 2001). In addition, once pension is granted to a person, the person obtains legally protected confidence that the specific amount of pension disbursement will be retained in the future. Latvia has adapted and modified the classic principle of solidarity between generations: the money earned by the employed generation is paid to the current pensioners. At the same time, the insurance principle is maintained, which means that everyone makes one’s own accruals for pension. The principle of taking into account the expected lifetime in pension calculation has received a positive evaluation. Pension policy should not be used for solving all social matters, for every attempt to do so creates problems that endanger the pension system’s long-term stability, which cannot be permitted (see, for example: Par Latvijas pensiju sistemas starptautisko novertejumu [On international assessment of Latvian pension system]. Latvijas Vestnesis, 10 April 2001, No. 57; Kad Latvijas pensiju sistemu uzskata par paraugu Eiropai [When Latvian pension system is taken as a model for Europe]. Latvijas Vestnesis, 19 February 2002, No. 27). At the same time, conclusions have been made that the Latvian pension system is sensitive even to the slightest changes of such parameters as, for example, contribution 35