ANDREJEVA v. LATVIA JUDGMENT
13
of the pension depends on the period of employment ... [This] consists of periods of
employment as defined by the Act and periods treated as such, irrespective of the
person’s nationality.
(2) ... In its case-law the European Court of Human Rights determines the
compatibility of any claim with [Article 1 of Protocol No. 1], defining new criteria in
each case. Not all claims automatically come under the concept of a ‘possession’
within the meaning of the Convention. To determine this issue, it is necessary to
assess the correlation between the entitlement to the pension or benefit in question and
the obligation to pay taxes and other contributions. [The existence of a] right or
legitimate expectation must be duly demonstrated. A person complaining of
interference with the exercise of the right of property must show that he or she has
such a right.
In addition, the European Court of Human Rights makes a distinction between a
system involving individual contributions to a [pension] fund, where the amount to be
paid [from the fund] can also be determined in each particular case, and a system in
which there is only an indirect link between the contributions paid and the amount
received. The latter system cannot be regarded as sufficiently tangible; yet the right of
property, as such, must be tangible ...
To establish whether the legislative provision in issue concerns the right of property,
the nature of the pension system should be examined. The new pension scheme is a
system that creates a ‘possession’. It is based on the principle that a person belonging
to it has paid contributions into specific [pension] funds and that the contributions
form a share of the funds’ overall capital. Furthermore, the amount [of this share of
the capital] can be determined at any time. In such circumstances, the person acquires
a ‘possession’ within the meaning of the Convention. In the Gaygusuz v. Austria case,
cited by the applicants, the European Court of Human Rights found a link between the
type of benefit in question, to which the applicant was not entitled under Austrian law,
and the payment of contributions to the unemployment insurance fund. The Court
therefore found that the claim fell within the scope of Article 1 of Protocol No. 1 ...
However, the pension system which existed in Latvia until 1 January 1991 was
based on the solidarity principle, entailing the responsibility of the community as a
whole and not creating a direct link between contributions and the amount of the
pension. Where the solidarity principle is applied, it is impossible to determine what
share of the fund belongs to each of the participants. Accordingly, the right of
property protected by Article 1 of Protocol No. 1 ... does not arise in this case. This
system does not confer on each individual any entitlement to an identifiable share of
the fund, but rather the expectation of receiving material assistance according to the
circumstances prevailing at the time the pension is to be paid. Pensions under this
system are based on the so-called principle of collective security and cannot be
granted on the basis of [each person’s] individual contribution. It is true that an
entitlement to the payment of a certain amount of benefit arises where the system
remains continuously in force and the individual satisfies the relevant conditions.
However, even in those circumstances there is no entitlement to a specific amount,
since the amount is subject to fluctuations and to legal regulation ...
Accordingly, the provision in issue does not concern the right of property and is not
at variance with Article 1 of Protocol No. 1 ... The applicants’ submission that the
provision in issue infringes Article 14 of the Convention is therefore likewise
unfounded.