Temporary Reduction of Contributions to Second Pension Tier is Constitutional – Court
Latvia's Constitutional Court has ruled that the temporary reduction of mandatory contributions to the second pension tier from 6% to 5%, redirecting one percentage point to the first tier, complies with the Constitution.
The Constitutional Court of Latvia has delivered a ruling on the temporary reduction of mandatory contribution rates to the second pension tier. The court declared that the reduction from 6% to 5%, with the one percentage point redirected to the first pension tier, is in accordance with the Constitution.
The court examined the amendments adopted by the Saeima and concluded that they do not violate constitutional norms. The measure was introduced as part of fiscal policy adjustments, and its temporary nature was a key consideration in the court's assessment.
The ruling is final and cannot be appealed. It provides legal certainty regarding the lawfulness of this temporary redistribution of pension contributions.