4
ANDREJEVA v. LATVIA JUDGMENT
14. In September 1993 the applicant was made redundant as a result of
staff cutbacks. She immediately signed a contract with another employer,
based in Riga, for which she worked until her retirement in 1997.
B. Facts relating to the calculation of the applicant’s pension
15. In August 1997, after reaching the age of 55, the applicant retired
and asked the Social-Insurance Board for the Kurzeme District of Riga
(Rīgas Kurzemes rajona Sociālās apdrošināšanas pārvalde) to calculate the
amount of her retirement pension (vecuma pensija). In a letter of 21 August
1997, the Board notified her that, in accordance with paragraph 1 of the
transitional provisions of the State Pensions Act, only periods of work in
Latvia could be taken into account in calculating the pensions of foreign
nationals or stateless persons who had been resident in Latvia on 1 January
1991. It appeared from the applicant’s employment record (darba
grāmatiņa) that from 1 January 1973 to 21 November 1990 she had been
employed by entities based in Kyiv and Moscow. The Board therefore
calculated the applicant’s pension solely in respect of her years of service
before and after that period. As a result, the applicant was awarded a
monthly pension of only 20 Latvian lati (LVL – approximately 35 euros
(EUR)).
16. The applicant lodged an administrative appeal against that decision
with the State Social-Insurance Fund (Valsts sociālās apdrošināšanas
fonds), which dismissed the appeal in a letter of 4 September 1997. The
Fund noted firstly that there was no evidence in the recycling plant’s
archives that the applicant had been employed there. Furthermore,
according to the Fund’s administration:
“Since you had an employment relationship with an employer based outside Latvian
territory – although you carried out your work in Latvian territory – this period cannot
be taken into account [in the calculation of your pension] as the employer did not pay
our Republic’s taxes.”
17. In May 1998 the State Social-Insurance Agency (Valsts sociālās
apdrošināšanas aģentūra), which had replaced the State Social-Insurance
Fund, asked the Social-Insurance Department of the Ministry of Welfare
(Labklājības ministrijas Sociālās apdrošināšanas departaments) for an
explanation as to the application of paragraph 1 of the transitional
provisions of the State Pensions Act in the applicant’s case. In a letter of
5 June 1998, the Department explained that, since the applicant belonged to
the category of persons concerned by the provision, only the periods in
which she had been employed by entities based in Latvia could be taken
into account in calculating her pension. The Department added that the only
effective means of resolving the issue would be through agreements
between Latvia, Ukraine and Russia on mutual recognition of periods of
employment.