Brussels, 21/01/2016 (Agence Europe) - The Court of Justice of the EU ruled in favour of the European Commission on Thursday 21 January in deciding that Cypriot law on pension rights for civil servants is an obstacle to the free movement of workers and thus breaches EU law.
Under Cypriot legislation, a civil servant under the age of 45 who resigns from his employment in the Cypriot civil service to carry on a professional activity in a member state other than Cyprus, or within an EU institution, or other international organisation, receives only a lump sum and loses his future pension rights.
In September 2013, the Commission began an action for failure to fulfil obligations against Cyprus as it had taken the view that, under this legislation, Cypriot former civil servants suffered discrimination with regard to their rights on pensions and unpaid leave (see EUROPE 10930).
The Court ruled that Cypriot legislation was a clear obstacle to the freedom of movement for workers as it prevents or deters officials from leaving Cyprus to take up employment elsewhere in the EU. It was not persuaded by the argument advanced by Cyprus that variations in the conditions under which social security benefits are granted could put the balance of the Cypriot system at risk which aims to ensure the stability of the occupational scheme for civil servants whilst respecting the principle of proportionality.
Cyprus is thus in breach of EU law: it ought to have repealed this legislation with retroactive effect from the date of its accession to the EU in 2004, the Court states. (Original version in French by Jan Kordys)