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Kiik: Final pension reform decision likely to come from top court

Minister of Social Affairs Tanel Kiik (Center).
Minister of Social Affairs Tanel Kiik (Center). Source: Anna Aurelia Minev/ERR

Minister of Social Affairs Tanel Kiik said during question time in parliament on Wednesday it is likely that the Supreme Court will make the final decision regarding the pension reform, which President Kersti Kaljulaid decided not to promulgate.

Kiik said the coalition has already discussed the president's views on the pension reform on several occasions, but no final decisions have been made and coalition discussions will continue in the near future. 

However, the minister said that it is likely the final assessment of the issue will be made by the Supreme Court, which is definitely an authoritative institution in the eyes of all those involved. "It is in our common interest that the pension system be sustainable," Kiik said.

President Kersti Kaljulaid on February 7 did not promulgate a law aiming to make the second pension pillar voluntary, citing several inconsistencies with the Constitution as the reason for her decision.

Kaljulaid said the so-called pension reform law disproportionately violates the fundamental rights of the people and is in many respects contrary to the principles of the rule of law and social state as well as the principles of legitimate expectations highlighted in the Constitution.

As the president did not promulgate the law, the bill will be sent back to the Riigikogu. After that, the Riigikogu will have the opportunity to amend it or to adopt it once more unchanged. In that case, the president shall decide again whether to proclaim it or to refer it to the Supreme Court, which shall make the final decision.

The government is seeking to have the pension reform enter into force in January 2021. This way, the first payments for those exiting from the second pillar would be made already in September 2021, that is immediately before local government elections.


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Editor: Helen Wright

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