Pension cuts ruled unconstitutional

RIGA — Latvia’s 2010 national budget, a painful mixture of tax hikes and benefit cuts, may need to be redone after the country’s Constitutional Court declared pension payment reductions unconstitutional.

The court determined Monday that the reduction of payments by 10 percent for retired pensioners and 70 percent for employed pensioners violated Latvian citizens’ constitutionally-guaranteed right to social security.

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