FOURTH SECTION
DECISION
AS TO THE ADMISSIBILITY
OF
Application no.
33916/96
by Karl-Heinz WALDEN
against Liechtenstein
The European
Court of Human Rights (Fourth Section), sitting on 16 March 2000 as a Chamber
composed of
Mr M. Pellonpää, President,
Mr G. Ress,
Mr A. Pastor Ridruejo,
Mr L. Caflisch,
Mr J. Makarczyk,
Mr I. Cabral Barreto,
Mrs N. Vajić, judges,
and Mr V. Berger, Section Registrar,
Having regard to
the above application introduced with the European Commission of Human Rights on
7 September 1996 and registered on 20 November 1996,
Having regard to
the observations submitted by the respondent Government and the observations in
reply submitted by the applicant,
Having deliberated, decides as follows:
THE FACTS
The applicant is
a German citizen born in 1928 and residing in Liechtenstein since 1967. In the
proceedings before the Court he is represented by Mr G. Marxer, a lawyer
practising in Vaduz.
A. Particular
circumstances of the case
The facts of the
case, as submitted by the parties, may be summarised as follows.
The applicant's
wife retired in 1985 and received a single old age pension (einfache
Altersrente). Since 1 January 1991, the monthly allocation amounted to 1,880
Swiss Francs (SFR). The applicant retired in 1993.
On 7 December
1993 the Liechtenstein Old Age Pension Insurance Institution (Alters und
Hinterlassenenversicherung) fixed a common married couple's pension (Ehepaar-Altersrente)
for the applicant and his wife in the amount of SFR 1,880 per month. In
accordance with the relevant legislation, the husband is entitled to receive the
married couple's pension, while the wife's former claim to a single old age
pension ceases and is replaced by a derived right to payment of half of the
common pension. Further, the married couple's pension is calculated on the basis
of the husband's contribution years. It is 150% of the husband's single pension.
As the applicant's insurance period was shorter than his wife's, the resulting
amount was lower than his wife's single pension. According to the relevant
provisions a compensation was added to arrive at the amount of his wife's former
pension.
On 13 December
1993 the applicant filed an objection (Vorstellung) against the above
decision. He argued that the method of calculation applied rendered his own
contributions null and void as the married couple's pension was no higher than
his wife's single pension. Further, he held that he and his wife were
discriminated against in relation to other married couples. He requested two
separate pensions to be paid instead of the common pension.
On 20 January
1994 the Liechtenstein Old Age Pension Insurance Institution dismissed the
applicant's objection. As to the applicant's first argument it observed that the
Liechtenstein pension scheme was based on the principle of social solidarity.
Thus, it did not grant pension claims in direct relation to the contributions
paid. As to the applicant's second argument, the Insurance Institution agreed
that there was unequal treatment of men and women as only the husband was
entitled to the married couple's pension, which was calculated solely on the
basis of the husband's contribution years. Moreover, in a case like the
applicant's where the husband had an incomplete insurance career while his
wife's was complete, a lower married couple's pension was paid than in the
opposite case. However, the legal provisions were clear and precise and did not
permit any other interpretation. The question could, thus, only be resolved by
an amendment of the law. Such an amendment was envisaged for December 1996.
On 21 September 1994 the Liechtenstein Court of Appeal (Obergericht), upon the applicant's appeal, confirmed the Insurance Institution's decision as being in conformity with existing legislation even if it was contrary to the principle of non-discrimination. It also refused the applicant's motion to interrupt the proceedings and to request the State Court (Staatsgerichshof) to examine the constitutionality of the contested provisions of the Old Age Pension Act. It found that in the event of an abrogation of these provisions the applicant's claims would not find any other legal basis without further initiative of the legislator.
On 15 May 1995
the Liechtenstein Supreme Court (Oberster Gerichtshof) dismissed the
applicant's appeal on points of law. It stated that the unequal treatment of
husband and wife in the current pension scheme could not be remedied by the
courts, but required an amendment of the relevant law by the legislator.
On 23 October
1995 the applicant, after having lodged a complaint with the State Court,
challenged State Court judge Hoch for bias on the ground that the latter had
written a dissertation on social security law, which had been partly financed
and distributed by the Old Age Pension Insurance Institution.
On 24 May 1996
the Liechtenstein State Court, sitting as a Constitutional Court (Verfassungsgerichtshof),
rejected the applicant's challenge for bias and partly granted his
constitutional complaint.
As to the
applicant's challenge for bias, the State Court found that the past financial
support and distribution of a dissertation by a public law institution did not
create such a personal link as to affect a judge's impartiality.
As to the
applicant's complaint, the State Court found that the applicant's constitutional
rights were violated by the Supreme Court's decision. The married couples'
pension system, based on a traditional view of marriage, was unconstitutional as
being contrary to the principle of non-discrimination on the basis of gender, in
particular as only the husband's contribution years were decisive for the
calculation of the married couple's pension. Moreover, it was unconstitutional
as being contrary to the general principle of equal treatment, in that married
and unmarried couples were treated differently with regard to their pension
benefits.
However, the
State Court rejected the applicant's request to quash the contested judgment and
to set aside the relevant provisions in the Old Age Pension Act. It noted that
it would, technically speaking, be possible to set aside a number of provisions
with the result that the applicant and his wife would each be entitled to a
single old age pension. However, this would cause massive disadvantages to
others, in particular to married couples where the wife did not have an own
insurance career. The situation was even more complex in view of the Social
Security Agreement between Liechtenstein and Switzerland which could only
operate if the requirements for pension claims were more or less identical in
both States. In conclusion, the State Court did not see itself in a position to
set aside the contested provisions, given the complexity of social security law
and the statutory time-limit of a maximum of six months for suspending an
abrogation. The State Court went on to say that despite these considerations the
continuing application of unconstitutional legislation for a protracted period
would be unacceptable. However, a comprehensive legal reform with the explicit
aim of guaranteeing gender equality in social security law was already being
prepared and Parliament had requested the Government to submit all necessary
amendments of social security law before the end of 1996. Moreover, the draft
amendment of the Old Age Pension Act included provisions according to which
couples in the position of the applicant and his wife would be entitled to two
single pensions. Having regard to the time-table for the pending reform, the
above-mentioned maximum time-limit of six months for enacting new legislation
could possibly be complied with. Nevertheless, it was not justified to annul the
unconstitutional provisions with a six-months suspension as the envisaged date
of entry into force, namely 1 January 1997, would become illusory if for
instance a referendum was requested. In this case, the annulment would become
effective and would entail all the negative consequences described above.
In fact, the
amendment to the Old Age Pension Act was adopted in September 1996 (see below).
According to its provisions the applicant and his wife each receive a single
pension of SFR 1,086 and 1,990, respectively, as of 1 January 1997.
B. Relevant Domestic
Law
The Liechtenstein
Old Age Pension Act (Gesetz über die Alters- und
Hinterlassenenversicherung) of 14 December 1952, Law Gazette (LGBl)
1952/29, before its amendment, provided for common married couple's pensions
which were to be paid as soon as both spouses reached the retirement age. When a
common pension was paid the wife’s claim for pension payments expired. Only the
husband's contribution years were decisive for the calculation of the married
couple's pension.
By amendment of
18 September 1996, Law Gazette 1996/192, to the Old Age Pension Act, the married
couple’s pension system was replaced by a scheme providing single pensions for
both spouses. Married couple’s pensions existing at the time of the amendment
were transformed into two single pensions as of 1 January 1997, subject to the
clause that the total amount of both pensions was not to be lower that the
previous married couple’s pension.
COMPLAINTS
1. The applicant
complains about discriminatory treatment under the Liechtenstein married
couples' pension system. In his original application he did not invoke any
particular provision of the Convention. In his observations the applicant relies
on Article 14 of the Convention taken in conjunction with Articles 8 and 12 of
the Convention as well as Article 1 of Protocol No. 1.
2. He also complains,
without invoking any particular provision of the Convention, about a lack of
impartiality of State Court judge Hoch, who had published a dissertation with
the support of the Old Age Pension Insurance Institution.
PROCEDURE
The application
was introduced on 7 September 1996 before the European Commission of Human
Rights and registered on 20 November 1996.
On 22 October
1998 the Commission decided to communicate the application to the respondent
Government.
The Government’s
written observations were submitted on 10 March 1999, after an extension of the
time-limit fixed for that purpose. The applicant replied on 15 June 1999, also
after an extension of the time-limit.
On 1 November
1998, by operation of Article 5 § 2 of Protocol No. 11 to the Convention, the
case fell to be examined by the Court in accordance with the provisions of that
Protocol.
THE LAW
1. The applicant
complains about discriminatory treatment under the Liechtenstein married
couples' pension system.
The Court finds
that this complaint falls to be considered under Article 1 of Protocol No. 1
taken in conjunction with Article 14 of the Convention.
Article 1 of
Protocol No. 1 reads as follows:
“Every natural or legal
person is entitled to the peaceful enjoyment of his possessions. No one shall be
deprived of his possessions except in the public interest and subject to the
conditions provided for by law and by the general principles of international
law.
The preceding
provisions shall not, however, in any way impair the right of a State to enforce
such laws as it deems necessary to control the use of property in accordance
with the general interest or to secure the payment of taxes or other
contributions or penalties.”
Article 14 of the
Convention reads as follows:
“The enjoyment of the
rights and freedoms set forth in this Convention shall be secured
without discrimination on any ground such as sex, race, colour, language,
religion, political or other opinion, national or social origin, association
with a national minority, property, birth or other status.”
The Government
submit that the Liechtenstein pension system is based on the principle of
solidarity and on a revolving fund. Contributions by persons create a right to a
pension, but the amount of the contributions alone does not create an
entitlement to a specific amount of pension nor to a specific share in the
pension fund. Therefore, referring to case-law of the European Commission of
Human Rights, the Government argue that the application is incompatible
ratione materiae with the provisions of the Convention. Consequently, there
is also no violation of Article 14 of the Convention.
Even assuming
that Article 1 of Protocol No. 1 was applicable, there was no violation of
Article 1 of Protocol No. 1 as this provision does not confer the right to a
specific amount of a pension. The fixing of a common married couple’s pension
did not transgress the wide margin of appreciation left to the State in the
field of “taxes and other contributions”. Moreover, the applicant’s complaint
under Article 14 taken together with Article 1 of Protocol No. 1 had meanwhile
become without interest as the amendment of the Old Age Pension Act had removed
the discrimination complained of. The Government further submit that the reasons
for the Liechtenstein State Court to refrain from quashing the Supreme Court’s
decision and from annulling the relevant legislation were that it would have
acted as legislator in a very complicated and highly sensible matter and the
consequences for other cases could hardly have been foreseen. Moreover, action
of the legislator was already in progress at the material time. Thus, the
Liechtenstein State Court acted in accordance with the requirements of legal
certainty.
The applicant
submits that Article 1 of Protocol No. 1 is applicable in the present case as
the pension system is no pure solidarity system but is based on obligatory
contributions and creates a right to pension payments corresponding to the
amount of the contributions made to the fund as well as to the period of time
during which the contributions were made. The applicant contends that he was
discriminated against on account of his gender and marital status. The State
Court’s judgment, despite its finding in this respect, did not annul the
relevant legislation and the decisions applying it to his case and did therefore
not remedy the violation of the Convention. In his view the continued
application of the provisions at issue did not serve the interest of legal
certainty as his case was the only one which had been brought before the State
Court to complain about the married couple’s pension system. The State Court
should, thus, have retroactively amended the calculation of his and his wife’s
pensions.
According to the
Court’s established case-law, Article 14 of the Convention complements the other
substantive provisions of the Convention and its Protocols so that there can be
no room for its application unless the facts at issue fall within the ambit of
one or more of them (see the Gaygusuz v. Austria judgment of 16 September 1996,
Reports of Judgments and Decisions 1996-IV, p. 1141, § 36). The Court
will therefore examine whether the facts of the present case fall within the
scope of Article 1 of Protocol No. 1.
In this respect
the Court notes that Protocol No. 1 has entered into force with regard to
Liechtenstein on 14 November 1995. The married couple’s pension system at issue
was applied to the applicant subsequent to that date and the State Court's
decision was given in May 1996. Thus Article 1 of Protocol No. 1 applies
ratione temporis.
The Court recalls
that payment of contributions to a social security fund may create a property
right protected by Article 1 of Protocol No. 1 (cf. no. 11285/84, Dec. 7.12.87,
D.R.54, p. 88 at p. 94; no. 10671/83, Dec. 4.3.85, D.R. 42, p. 229 at p. 232).
Moreover, the Court, in the Gaygusuz case, referring to the pecuniary nature of
the entitlement to a given social security benefit, found that Article 1 of
Protocol No. 1 was applicable without it being necessary to rely solely on the
link between entitlement and the obligation to "pay taxes or other
contributions" (see the above-mentioned Gaygusuz judgment, p. 1142, § 41). In
the present case, the applicant had a pecuniary right to a common married
couple's pension, the calculation of which he considers to be discriminatory.
Thus, the applicant's right to the old age pension at issue falls within the
ambit of Article 1 of Protocol No. 1 and, consequently, Article 14 also applies.
Further, the
Court considers that despite the State Court's finding of May 1996 that the
applicant's right to non-discrimination had been violated as regards his old age
pension rights, the applicant can claim to be a victim within the meaning of
Article 34 of the Convention of the alleged violation as the contested
provisions were not set aside and, thus, remained applicable to him until 1
January 1997, when the amendment of the Old Age Pension Act entered into force.
However, the
Court notes that the parties’ submissions in the present case concentrate on the
question whether the State Court should have set the contested provisions aside.
While the Government argue that the State Court was prevented from doing so for
reasons of legal certainty, the applicant contends that it should not only have
annulled the relevant legislation but should have done so with retroactive
effect.
In this context,
the Court recalls its case-law according to which the principle of legal
certainty, which is necessarily inherent in the law of the Convention, may
dispense States from questioning legal acts or situations that antedate
judgments of the Court declaring domestic legislation incompatible with the
Convention. The same considerations apply where a constitutional court annuls
domestic legislation as being unconstitutional (see the Marckx v. Belgium
judgment of 13 June 1979, Series A no. 31, p. 26, § 58). Moreover, it has also
been accepted, in view of the principle of legal certainty that a constitutional
court may set a time-limit for the legislator to enact new legislation with the
effect that an unconstitutional provision remains applicable for a transitional
period (cf. no. 22651/93, Dec. 18.10.95, D.R. 83, p. 14).
It is true that,
in the present case, the State Court in its decision of 24 May 1996 did not
annul the provisions concerning the married couple’s pension which it had found
to be unconstitutional. It refrained from doing so, having particular regard to
the fact that it could only suspend an abrogation for a maximum of six months.
Given the complexity of social security law, this appeared too short a period
for enacting new legislation, even though a comprehensive reform of social
security law with the aim of guaranteeing gender equality was already in
progress and was scheduled to be completed by the end of 1996. In view of the
detrimental effects which an annulment of the relevant provisions might have on
the pension claims of others, the State Court refused to annul the provisions
with a six months’ suspension, as the holding of a referendum, for instance,
could delay the legislative procedure. The Court observes that in fact, the
amendment of the Old Age Pension Act was adopted in September 1996. Taking all
these circumstances into account, the Court finds that the present case does not
differ substantially from the case in which a Constitutional Court annuls an
unconstitutional provision and sets a time-limit for enacting new legislation.
It, therefore, considers that the State Court’s decision, which had the effect
that unconstitutional legislation remained applicable to the applicant for a
limited period, served the interests of legal certainty. Given the brevity of
this period which ended about seven months after the State Court’s decision,
namely on 1 January 1997 when new legislation entered into force, the continued
application of the pension provisions at issue can also be regarded as
proportionate.
In sum there is
no appearance of a violation of Article 14 taken in conjunction with Article 1
of Protocol No. 1.
It follows that
this part of the application must be rejected as being manifestly ill-founded
within the meaning of Article 35 §§ 3 and 4 of the Convention.
2. The applicant also
complains about a lack of impartiality of State Court judge Hoch, who had
published a dissertation with the support of the Old Age Pension Insurance
Institution. The Court will consider this complaint under Article 6 § 1 of the
Convention.
Article 6 § 1,
insofar as relevant, reads as follows:
“In the determination
of his civil rights and obligations ... everyone is entitled to a fair and
public hearing ... by an independent and impartial tribunal established by law.”
The Government
submit that judge Hoch was an impartial judge. It is true that he was the author
of a thesis on the history of the Liechtenstein social security law which he
completed in November 1990 with the financial support of the social security
institution. However, he made a partly critical analysis stating that equality
of men and women within the social security system became increasingly more
important and that a reform of the pension system was called for. Besides, the
Government, relying in particular on the Fey v. Austria judgment of 24 February
1993 (Series A no 255-A, § 30), noted that not even a judge who took pre-trial
decisions was per se to be considered as partial. In the present case the
link between judge Hoch and the proceedings at issue was even weaker than in the
above cited case and he cannot therefore be regarded as partial.
The applicant did
not file any submissions on this issue.
The Court finds
that Article 6 applies to the proceedings in the State Court which was sitting
as a Constitutional Court in the present case, as they could have resulted in an
abrogation of the contested provisions of the Old Age Pension Act leading to a
reassessment of the applicant's pension rights, thus being directly decisive for
his civil rights (see the Pauger v. Austria judgment of 28 May 1997, Reports
1997-III, p. 894, §§ 45-47).
The Court
considers for the same reasons as set out above, that the applicant can claim to
be a victim within the meaning of Article 34 of the Convention of the alleged
violation.
As to the
question of impartiality, the Court recalling its case-law (see for instance the
Pullar v. the United Kingdom judgment of 10 June 1996, Reports 1996-III,
p. 792, § 30), notes that there is no issue of subjective impartiality in the
present case. Nor does the mere fact that judge Hoch elaborated a thesis on the
history of the Liechtenstein Old Age Pension System with the financial support
of the social security institution - a thesis which, moreover, according to the
Government’s uncontested submissions, expressed a critical opinion of the
married couple’s pension system at issue - suffice to show that the applicant’s
fears as regards that judge’s alleged lack of impartiality were objectively
justified.
It follows that
this part of the application must be rejected as being manifestly ill-founded
within the meaning of Article 35 § 3 of the Convention.
For these reasons,
the Court, unanimously,
DECLARES THE
APPLICATION INADMISSIBLE.
Vincent Berger Matti Pellonpää
Registrar President