# CE2004078EN.01039101.xml

| 27.3.2004 | EN | Official Journal of the European Union | CE 78/391 |
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27.3.2004

EN

Official Journal of the European Union

CE 78/391

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(2004/C 78 E/0414)

WRITTEN QUESTION E-1869/03

by Christopher Huhne (ELDR) to the Commission

(6 June 2003)

Subject:   Pension losses

Subject:

Is the Commission able to estimate the number of contributors to funded pension schemes who have been adversely affected by employer decisions either to terminate such schemes entirely, or to fail to make up the necessary level of contributions to assure defined benefits? Does the Commission believe that additional measures to safeguard pension provision are necessary, and does the extension of the single market mean that these should be at European level?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(15 July 2003)

(15 July 2003)

As this is a matter that falls within the responsibilities of the Member States and the two sides of industry, the Commission does not have estimates of the number of contributors to funded pension schemes who have been adversely affected by employer decisions either to terminate such schemes entirely, or to fail to make up the necessary level of contributions to assure defined benefits. Such data is also likely to be difficult to obtain at the national level.

The Union has no powers that would allow it to restrict the freedom of employers and workers to change occupational pension arrangements. Community legislation only requires Member States: ‘to ensure that the necessary measures are taken to protect the interests of employees and of persons having already left the employer's undertaking or business at the date of the onset of the employer's insolvency in respect of rights conferring on them immediate or prospective entitlement to old-age benefits, including survivors’ benefits, under supplementary company or inter-company pension schemes outside the national statutory social security schemes.' (Article 8 of Council Directive 80/987/EEC of 20 October 1980 on the approximation of the laws of the Member States relating to the protection of employees in the event of the insolvency of their employer (1)). This does not prevent employers and workers to renegotiate pension entitlements and their accrual.

1

As to the recently adopted Council Directive 2003/41/EC of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision (2), it requires institutions to have sufficient and appropriate assets to cover their technical provisions. The minimum amount of technical provisions must be sufficient both for pensions and benefits already in payments and to reflect the commitments which arise out of members' accrued pension rights. The Directive, nevertheless, authorises Member States to allow institutions to operate with some underfunding provided they adopt a concrete and reasonable recovery plan to return to a level of full funding.

2

Member States will have 24 months after the publication in the Official Journal to adopt the laws, regulations and administrative provisions necessary to comply with this Directive.

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(1)  OJ L 283, 28.10.1980.

1

(2)  OJ L 235, 23.9.2003.

2

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