Brussels, 15/09/2003 (Agence Europe) - With a slight delay (see Europe of 29 August, p.6 in fine) the second phase of consulting the "social partners" (employers and trade unions) on measures to improve the transfer of company pension rights was launched on Friday (see Europe of 28 August, p.5 on the Commission's Communication). The consultation process considers the possible content of an EU programme in this connection. The European social partners reacted to the first round of consultations by broadly recognising (with disagreement here and there) the need for measures to be taken at EU level to improve the transferability of pensions (see Europe of 12 and 14 June 2002).
On measures to improve the transfer of pension rights, the European Commission says it favours the establishment of a general framework setting minimum standards to be met in order to improving the transfer of company pension rights within the EU. These minimum standards, to be "gradually introduced", should 1) facilitate the acquisition of company pension rights - in the Commission's view, it is important to ensure the criteria for acquiring pension rights (waiting and qualifying periods, age, etc) must not hinder mobility within the EU. The social partners may consider setting very short qualifying periods for schemes dedicated to a particular industry or profession, which would facilitate mobility at national level. They might also consider recognising periods of employment in the same industry or job in another Member State; 2) protecting acquired pension rights. For the Commission, serious consideration should be given to protecting dormant rights to ensure they are not frozen in real terms; 3) simplifying the transfer of acquired pension rights. The Commission notes that it would be desirable to ensure that the greatest number of workers possible who change job are able to select between protecting pension rights acquired so far in the original system or transferring the corresponding capital to another system, in other Member State if required. It would be legitimate, comments the Commission, to demand that capital to be transferred can only used for buying pension rights and be submitted to a body that can guarantee the good management of those pension rights. The Commission feels it would be desirable to ensure workers changing jobs are subject to fair analysis by actuaries when opting to transfer accumulated pension rights; and 4) ensuring suitable information for pension holders about job mobility.
Taking account of, for example, Article 137, paragraph 1, of the EC Treaty (whereby the EC supports and supplements Member States' action with regard to workers' social security and welfare), the Commission believes that legislation laying down minimum requirements can be considered in order to improve the transfer of pension rights within the EU, and believes the most appropriate legal instrument would be a collective agreement at EU level. Given the very nature of company pension schemes (often based on initiatives by the social partners in a particular industry or company, the Commission points out), the European Commission asserts that the European social partners are capable of making a decisive contribution to the resolution of issued surrounding the transfer of company pension rights within the EU. The Commission therefore urges the social partners to submit to the Commission an opinion or a recommendation (if more appropriate) on improving transfer rights and to inform the Commission of decisions to launch negotiations on the basis of the Commission's Communication. The European social partners are expected to respond in the autumn. If they decide to negotiate a collective agreement (this would be the Commission's preferred option), they have nine months to do so. In the event of failure to do so, the Commission may decide to unveil legislation.