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Agreement endorsed on preservation of supplementary pension rights for workers moving between Member States
The Committee of Permanent Representatives (COREPER I) endorsed the agreement reached by the Lithuanian Presidency and the European Parliament on the Directive on minimum requirements for enhancing worker mobility by improving the acquisition and preservation of supplementary pension rights.
According to the Minister of Social Security and Labour of Lithuania Algimanta Pabedinskienė this Directive will be instrumental at Union level in facilitating the exercise of the right of workers to freedom of movement between Member States.
“Lithuanian Presidency wishes to thank the preceding Presidencies, especially Cyprus and Ireland for their intense work on this important legislative dossier. Our thanks also go to the negotiators of the European Parliament and the Commission for their engagement and constructiveness. After eight years, we at last have an agreement on this important instrument.” – says the Lithuanian Minister.
This Directive is not applicable to the acquisition and preservation of supplementary pension rights of workers moving within a single Member State. Supplementary pension means a retirement pension provided for by the rules of a supplementary pension scheme established in conformity with national legislation and practice of a Member State. The Member States shall adopt the laws, regulations and administrative provisions necessary to comply with this Directive no later than 4 years after the date of entry into force of this Directive, or shall ensure that the social partners introduce the required provisions by way of agreement by that date.
Lithuanian Presidency successfully concluded negotiations with the European Parliament and European Commission in the fourth and last informal trilogue which took place on 26 November.
After today’s COREPER agreement on the package, the European Parliament is set to approve the text on its side (9 December) and the Chair of the Employment Committee will send a letter to the Council offering an early second-reading agreement. The formal adoption of the Directive could take place in the first quarter of 2014.
Background:
Amended Directive of the European Parliament and of the Council on minimum requirements for enhancing worker mobility by improving the acquisition and preservation of supplementary pension rights would apply to workers who exercise their right to freedom of movement within the meaning of Article 45 TFEU. The scope of the Directive includes externally mobile workers, i.e. outgoing workers, who are active scheme members whose current employment relationship terminates for reasons other than becoming eligible for a supplementary pension and who move between Member States. This Directive applies only to supplementary pension schemes existing due to an employment relationship that are based on reaching retirement age or on fulfilling other requirements, as laid down by the scheme or by national legislation. This Directive does not apply to individual pension arrangements, other than those concluded through an employment relationship.
The EPSCO Council having reached a general approach on the above proposal on 20 June 2013, the Lithuanian Presidency has pursued informal negotiations with the European Parliament, with a view to reaching an early second-reading agreement.