CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. EC Continues To Move Forward On Pension Portability

EC Continues To Move Forward On Pension Portability

by Ulrika Lomas, for, Brussels

11 October 2007

The European Commission announced this week that it has adopted an amended proposal to reduce obstacles to workers' mobility, through improved access and better preservation of supplementary pension rights.

The proposal takes on the majority of the European Parliament's amendments from last June. It focuses on the setting of minimum requirements for better access to pension rights, clearer rights of preservation so mobile workers' pensions are treated fairly, and improved access to useful and timely information. Its aim is to ensure that workers are not penalised because of mobility.

Commenting on the proposal Vladimír Špidla, EU Commissioner for Employment, Social Affairs and Equal Opportunities explained that:

"The amended text highlights the determination of the Parliament, the Council and the Commission to break down the barriers to workers' mobility in Europe."

The proposal follows the lead of Parliament by focusing on the key issues of easier access for workers to supplementary pensions, and more clearly defined measures for the appropriate treatment of dormant pension rights of mobile workers.

Mr Špida acknowledged the progress made, underlining that "achieving the right balance between reducing obstacles to mobility, while maintaining a stable and sustainable environment for the development of supplementary pension provision is one of Europe's greatest challenges."

He went on to add that:

"Enabling workers to move freely around the EU and national labour markets without losing important occupational pension benefits is a clear example of “flexicurity” in action. The urgency of improving workers' rights is why I was ready to accept a compromise on the issue of the transfer of supplementary rights, as well as the exclusion from the Directive of pension schemes that are already closed to new members. It is important that we take this significant step now, and not risk further delay by trying to achieve all our objectives at once."

Provisions relating to transfers are therefore not present in the proposal. The Commission recognises the view of many that, at this time, measures for the transfer of supplementary rights are a step too far.

The title of the proposal has been amended to 'Proposal for a directive on the minimum requirements for enhancing worker mobility by improving the acquisition and preservation of supplementary pension rights '.

The next steps will be for the amended proposal to be taken forward by the Portuguese Presidency to seek unanimity in Council, and then agreement with the European Parliament in second reading.

As set out in the proposal, the Commission will re-examine the issues relating to transfers in the first of its reports to be produced five years after the Directive’s entry into force.

TAGS: Italy

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »