SAVICKIS AND OTHERS v. LATVIA JUDGMENT
served, in the same units, in various parts of the world. The contested periods
of service in respect of which there was a difference in the calculation and
amount of the pensions between the Nepalese and the British nationals had
been accrued outside the United Kingdom, at a time before the Gurkhas had
any links to Britain. Although the contested periods consisted of service in
the British Army abroad, in the units to which they were integrated, the Court
found no violation of Article 14 in conjunction with Article 1 of Protocol
No. 1, accepting that the respondent State had acted within its margin of
appreciation when adopting the impugned domestic provisions, under which
the equalisation of pension rights between the Nepalese and the British
nationals was foreseen only for the period following the removal of the
Gurkhas’ home base to the United Kingdom.
211. As highlighted by the Constitutional Court and the respondent
Government, the choices made by the Latvian legislature when setting up the
employment-based retirement pension system and determining the criteria for
entitlement therein were directly linked to the particular historical and
demographic circumstances of Latvia’s situation at the relevant time, together
with the constraints imposed by the severe economic difficulties prevailing at
the time. Thus, the present case, which concerns only past periods of
employment dating back to the years prior to the restoration of Latvia’s
independence, is characterised by the specific background to the impugned
transitory measure concerning this pension system. The Court points out that
it has already acknowledged the need for a wide margin of appreciation in the
context of such fundamental changes to a country’s system as the transition
from a totalitarian regime to a democratic form of government and the reform
of the State’s political, legal and economic structure, phenomena which
inevitably involve the enactment of large-scale economic and social
legislation (see Broniowski v. Poland [GC], no. 31443/96, §§ 149 and
162-63, ECHR 2004-V). Furthermore, the Court reiterates that it may have
regard to facts prior to the ratification of the Convention by the respondent
State where such circumstances could be considered to have created a
situation extending beyond that date or may be relevant for the understanding
of facts occurring after that date (see, mutatis mutandis, Broniowski v. Poland
(dec.) [GC], no. 31443/96, § 74, ECHR 2002-X, and Hoti v. Croatia,
no. 63311/14, § 85, 26 April 2018).
212. Moreover, the Court notes that while the nature of a social benefit,
in particular the question whether or to what extent it depends on prior
individual contributions payable by the beneficiaries, is not in itself decisive
for the determination of whether it constitutes an entitlement falling within
the scope or the ambit of Article 1 of Protocol No. 1 (see Andrejeva, cited
above, § 76), the margin of appreciation may nonetheless depend on whether
the impugned measure entails a loss of individual contributions paid by or on
behalf of the individual affected by the measure (compare and contrast
Pichkur v. Ukraine, no. 10441/06, § 51, 7 November 2013). Another factor
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