Brussels, 16/02/2012 (Agence Europe) - In presenting the White Paper on “adequate, safe and sustainable pensions” on Thursday 16 February, Employment, Social Affairs and Inclusion Commissioner Laszlo Andor made it clear from the outset that the powers of the Commission in this area were severely limited. The publication, then, hinges on two main recommendations which determine the Commission's preferred way for member states to reform their retirement pensions systems (see EUROPE 10551). Balancing the time spent at work and in retirement, and developing complementary private retirement savings are the two recommendations which stand out from the 20 policy measures deemed to be essential if the long-term viability of national pensions systems is to be assured.
Among recommendations to member states, the Commission also proposes to take action through a number of legislative initiatives. It wants to review Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision. The Commission takes the view that the financial crisis has highlighted “the vulnerability of funded pension schemes”, particularly complementary schemes, which the White Paper wants developed and made more accessible. The legislative framework for monitoring private systems should be reviewed. Such a review is likely to be accompanied by the amendment, in the course of 2012, of Directive 2008/94/EC on the protection of employees in the event of the insolvency of their employer. All these reviews, the timescales for which have not been revealed, have the broad aim of better supervision of the solvency of the systems. Along similar lines, the statutory cover of social security for cross-border workers is now guaranteed by Regulation 883/2004 on the coordination of social security systems. This regulation does not, however, include private contribution systems - a situation the Commission would like to see remedied as it considers this to be “an obstacle to professional mobility and labour market flexibility” in the EU. The desire, here, is for fair and clear operation of pensions systems, whether public or private, for all European citizens, wherever they live and have worked. With this in mind, the White Paper proposes putting in place pension tracking services that would make it easier to have access to information on contributions and future pension estimates.
The UEAPME (European Association of Craft, Small and Medium-sized Enterprises) says that, while the Commission proposals are a step in the right direction (on incentives to develop complementary pensions systems), there is a possible risk in revising the directive on the activities and supervision of institutions for occupational retirement provision. If the changes result in additional financial costs for employers or employees, this will harm the growth of small businesses and this will have a knock-on effect on economic growth throughout the EU, it argues. (JK/transl.rt)