21 May, 2015
On 20 May, the Department of the Administrative Cases of the Supreme Court upheld the judgement of the Administrative regional court, which satisfies the application filed by the claimant and abolishes the decision of the State Social Insurance Agency on repayment of overpaid family state benefit. The court rejected the cassation complaint filed by the State Social Insurance Agency. The judgement of the Supreme Court may not be appealed.
The State Social Insurance Agency requested the applicant, who lives with her children in Latvia, to pay back received family state benefit. In opinion of the Agency, the benefit was paid with no ground, because it was established that the father of children, who was employed in the United Kingdom also received a benefit for children for the same period of time.
The dispute in the case concerned the question on which country – Latvia or the United Kingdom – must be recognised as primarily competent country to pay the mentioned benefit in accordance with the Regulation of the Council (EEC) No. 1408/71 regarding application of social security systems for employees and their families, who move within the Community, and Regulation of the Council (EEC) No.574/72, which establishes procedure of implementation of the Regulation No.1408/71.
The Agency believed that at the time of receipt of the benefit the applicant was not subjected to compulsory social insurance, and thus she could not be recognised as an employed person in Latvia. Thus, the benefit for children should be paid by the United Kingdom instead of Latvia.
The Supreme Court accepted the conclusion of the appellate instance court that the applicant at the time of receipt of benefit was recognised as the person, who performed professional activity in Latvia. At the time of receipt of the benefit, the applicant was registered as the self-employed person, who performed economic activity, but because her income did not exceed amount set in legal provisions, she did not have to make compulsory social payments.
Information prepared by Baiba Kataja, the Press secretary of the Supreme Court
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