Not much of a help the new EU Directive on pensions

A not so plenary session in the European Parliament (week 11, 2013). Discussion on “Integration of migrants, its effects on the labour market and the external dimension of social security coordination”. MEP Piotr Borys (EPP-Poland) has the floor in a deserted room.

A not so plenary session in the European Parliament (week 11, 2013). Discussion on “Integration of migrants, its effects on the labour market and the external dimension of social security coordination”. MEP Piotr Borys (EPP-Poland) has the floor in a deserted room.

Labour mobility within the European Union is considered as the main decompression mechanism of social and economic pressures, created by differences in growth rates between member states. Looking for a job or working in another EU country has been praised by politicians and Brussels bureaucrats as the best way to increase the overall competitiveness of the EU. Yet to this day it’s impossible for workers to secure their supplementary pension rights. On many occasions even the statutory pension rights are highly compromised for people who have worked in two or more EU countries. For example the chaotic social security legislation in Greece and some other member states create insurmountable impediments for persons in the middle of their working life, if they decide to take up a job in another member state.

The Directive

In view of this reality the European Commission in 2005 proposed legislation to mitigate those problems. The first reading took place in the EU Parliament in 2007. The legislation was then blocked in the Council for six years, due to differences among member states’ pension schemes and the unanimous vote requirement. The entry into force of the Lisbon Treaty meant the text could be put to a qualified majority vote, enabling negotiations to resume.

After six years of deadlock the European Parliament and member state Council negotiators reached agreement last Tuesday afternoon on rules to allow EU workers who move to a different EU country, to safeguard their supplementary pension rights. However the Lisbon Treaty may have sidestepped the barrier of unanimity, but still the chaotic differences of social security legislation in member states are still there.

After four years

Probably that’s why the deal struck between Parliament and Council allows for a 4-year deadline to transpose the directive into national law. Hopefully after four years the current huge differences in unemployment rates between member states may decrease and thus reduce the strong incentive for southerners to look for a job in northern EU countries. In any case the new legislation will not be in force during the current period when it is badly needed.

Given that, the statement of the Parliamentary rapporteur Ria Oomen-Ruijten (EPP, NL) is rather undue. She said that “European workers can now enjoy full pension rights, when they move to another Member State. The legislation will help to eliminate barriers to the free movement of workers”. Both assertions are wrong, it’s not now nor full rights are protected.

As a Press release issued by the European Parliament explains the main provision of the new legislation is that “the “vesting period”, i.e. the period of active membership of a scheme needed for a person to keep supplementary pension entitlements, must not exceed three years”. In any case most of those supplementary pension schemes have already introduced such provisions. This is particularly true for schemes which have a private pension fund character. They usually pay to their members a pension supplement, after say the age of 65, under the logic of capitalising their contributions. It’s like contracts with private insurance companies.

In short, this new legislation would change nothing during the next four years and when applied, in most cases it will offer something which is already provided.

 

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

More urgency needed to help increasing numbers ‘locked out’, before 2030, says UN’s Bachelet

2013, a Political Odyssey: What future for Italy?

The Sting’s Team

Turkey’s foreign bribery enforcement framework needs to be urgently strengthened and corporate liability legislation reformed

Earth has more trees than it did 35 years ago – but there’s a huge catch

Talking the talk: the voice-recognition disruptors looking to outsmart big tech

How a possible EU budget deficit affects the migration crisis

Paris is building the world’s greenest business district. What can other cities learn from it?

“Access denied”: the Greek health system under pressure

Stricter rules and tougher sanctions for market manipulation and financial fraud

Three ways Finland leads the world – and education isn’t one of them

Novartis and Johnson & Johnson to deprive Europeans of their right to Health

Companies that put employees first perform better

World Summit Awards 2016: Sustainable impact through digital innovation

DR Congo Ebola outbreak now a Public Health Emergency, UN health agency declares

The EU bows to Turkey in view of the talks for a political settlement in Syria

Immigrant integration policies have improved but challenges remain

ECB intervenes to clean May’s and Schäuble’s mess

Mozambique: UNICEF Goodwill Ambassador Orlando Bloom meets the child cyclone survivors who’ve lost everything

‘Stop and listen’ to victims of terrorism, UN chief urges in message marking international day

‘Step backwards’ for Bosnia’s autonomous Serb region as assembly reneges on Srebrenica genocide report

EU leaders agree to delay Brexit until 31 October

Climate change and health: Raising awareness is the key for greener actions

US-China trade war at point of no return: Washington’s demands go beyond tariffs

Reinforcing EU border security: Visa-exempt travelers will be pre-screened

EU trade agreements deliver on growth and jobs, support sustainable development

The developing countries keep the world going

Essential services on verge of shutdown in Gaza as emergency fuel set to run out

One small flight for a drone, one ‘big leap’ for global health

Crimea, a wicked game of political chess and a ‘big’ coincidence

Nitrate pollution of water sources: new impulses for EU Water Policy?

Activist investors are more powerful than ever. Here’s what that means for the economy

Can Kiev make face to mounting economic problems and social unrest?

Getting African Women into the Boardroom

5 futuristic ways to fight cyber attacks

The horrific trend of the anti-vaccine movement in Turkey

Stronger partnerships with post-conflict countries needed to ensure ‘path towards durable peace’: UN chief

End racist discrimination against Afro-European people in the EU

This is how rice is hurting the planet

Entrepreneurship in a newly shaped Europe: what is the survival kit for a young Catalan and British entrepreneur in 2018?

Elections in Europe: No risks for the EU, leaders readying to face Trump-Brexit

Halt death sentences on children, UN rights expert urge Saudi authorities

Appreciation of euro to continue

A new European banking space is born this year

Pride in practice: Equality in access to health services for the LGBT community in a third-world country

Chart of the day: The internet has a language diversity problem

Indonesia’s imams are joining the fight against plastic bags

Venezuela: ‘A worrying destabilizing factor in the region’, Bachelet tells Human Rights Council

Primary Healthcare vs Specialization Careers, how to promote PHC to the Young Health Workforce?

What lessons to draw from the destruction of Syria

How to talk about climate change: 5 tips from the front lines

IMF: Sorry Greece, Ireland, Portugal we were wrong!

Haitian President at General Assembly calls for essential development aid as UN mission shifts away from peacekeeping

Vile act of torture prohibited ‘under all circumstances’, UN chief affirms on International Day to support victims

Monsanto lawsuit ruling a ‘significant recognition’ of victims’ human rights, say UN rights experts

Antitrust: Commission fines Google €1.49 billion for abusive practices in online advertising

Does Switzerland really need more medical students?

New UN rights report paints bleak picture in eastern DR Congo

We can build an inclusive workplace, and it starts with empathy

A day in the life of a Rohingya refugee

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s