31.8.92 OfficialJournaloftheEuropeanCommunities NoC223/13
Opiniononthecommunication fromtheCommissiontotheCouncilontheSupplementary
SocialSecuritySchemes:TheRoleofOccupationalPensionSchemesintheSocialProtection
ofWorkersandtheirImplicationsforFreedomofMovement
(92/C223/04)
On6September1991,theCommissiondecidedtoconsulttheEconomicandSocialCom­
mittee,underArticle198oftheTreatyestablishingtheEuropeanEconomicCommunity,on
theabovementioned communication fromtheCommission totheCouncil.
TheSectionforSocial,Family,EducationalandCulturalAffairs,whichwasresponsiblefor
preparingtheCommittee'sworkonthesubject,adopteditsOpinionon15May1992.The
RapporteurwasMissMaddocks .
Atits297thPlenarySession(meetingof26May1992)theEconomicandSocialCommittee
adoptedthefollowingOpinionbyamajorityvotewith7abstentions .
1.Generalcomments 1.4.TheCommittee,foritspart,wouldurgethe
Commissiontoconsiderthepointssetoutbelowas
regardspossiblecoordinationofoccupationalpension
schemesandthecorresponding acquisitionandexercise
ofrightsandtransferoptionsacrosstheCommunity :
2.Specificcomments1.1.TheCommission Communication isawelcome
firstdiscussiondocumentontheneedtostimulate
closercooperationamongtheMemberStateswith
regardtosupplementary (i.e.occupational )pension
schemesandthepreservationortransferofpension
rights.Thediversity,complexityandprobableexten­
sionoftheseschemesthroughouttheCommunity ,
reflectingvaryingnationalandprofessionalexperiences
andapproaches,willnodoubtcontinueintheforesee­
ablefuture(andwouldrequirecloserattentionbythe
Commission).Toogreatadivergence,however,likely
tobeaggravatedbytheexpectedchangestoretirement
provision(includingsupplementary provision)inthe
MemberStates,couldposearisktosocialandeconomic
cohesionintheEC,andalreadyconstitutesanobstacle
tothefreemovementoflabourinthecontextof'1992'.
1.2.TheCommitteeacknowledgestheneedbothfor
alegalframeworkintheMemberStates,toprovide
protectionforoccupationalpensionschememembers
intermsofsafeguardingtheirassetsandindividual
rights,andforcloserofficialECcoordinationinthis
area.Suchcoordinationshouldofcoursecomplement
andnotunderminestatutoryprovision,andshould
respectappropriatecommitments andpreferencesin
thisconnection .2.1.ECandNational'competences'
2.1.1.Article51oftheTreatyandRegulations (EEC)
Nos1408/71plus574/72togetherprovideforthecoor­
dinationofstatutorysocialsecurityandpension
schemes,requiringnationalauthoritiestoassimilate
periodsservedinanotherMemberStatetoperiods
servedathomeandtoensurepaymentofbenefits
throughouttheterritoryoftheCommunity .Whilstno
suchaggregationofserviceperiodsisasyetregulated
asregardssupplementary pensionschemes,Article51
wouldnotappeartoexcludethispossibility.
2.1.2.TheCommissionpaper,however,considers
thatadifferentapproachisnecessary.Itdoessoby
arguingthatinanycasethe'exportability'ofsup­
plementarypensionsbenefitsassuch(i.e.paymentof
benefits)posesnomajorproblems,andthatofficial
coordinationmeasuresarethereforenotappropriate .
Theproblem,theCommissioncontinues,isthatof
actuallyacquiringandpreservingsupplementary pen­
sionrightswhichwouldbecomparableandtransferable
EC-wide.
2.1.3.TheCommitteerecognizesthedifficultiesand
obstacleswhichwouldneedtobeovercomeifthiskey
problemistoberesolved.Theseconcern:
—thewidelydifferingnationalsocialsecurityregimes
inthevariousMemberStateswhichgenerallydic­
tatetheform,andcertainlythecompatibility ,of
supplementary occupational retirementbenefit
schemes,1.3.Theimmediatechallengeandprincipleinvolved
ishowtoensurethateachworkershouldbeableto
moveintoajobinanotherMemberStatewithout
havingtofearanylossofbenefitsarisingfroman
occupationalpensionschemealreadyacquiredandwith
theabilitytocontinuetoacquiresimilarbenefitsinthe
newemploymentwheresucharrangementsexist.The
ActionProgrammeaccompanying theECSocialChar­
terdrewattentiontothelackofCommunityprovisions
onsuchpoints,anditwouldseemappropriateforthe
Commissiontotakethenecessarypolicyinitiatives.

NoC223/14 OfficialJournaloftheEuropeanCommunities 31.8.92
—thewidelydifferingnationaltaxregimesinthe
variousMemberStatesinrelationtothetaxing
ofincomeusedforpensionfundcontributions ,of
incomeearnedbyoccupationalpensionfunds,of
transfervalues,oflumpsumstakeninlieuof(part)
pensiononretirementandofpensionsinpayment.provideforcross-bordermembershipofgroupschemes,
especiallyformulti-national companiesandtheincreas­
ingnumberof'Community-scale 'undertakings .The
CommitteeurgestheCommissiontoexplorethepossi­
bilityofdevisingtheformatandrulesofamodel
EuropeanOccupational PensionScheme,possiblyas
anappendagetotheEuropeanCompanyStatute.The
objectwouldbethat'European'companies (asdefined
intheStatute)couldadoptsuchaSchemecovering
theiremployeesinalltheMemberStates.Member
Statesinturnwouldbeobligedtorecognizeandfacili­
tatesuchSchemesandinparticulartoapplyconsistent
taxtreatmentinaccordancewiththemodelrules.
2.1.8.Transnational ,industry-based schemesshould
alsobelookedinto.Acommonpensionschemefor
seafarersservinginshipsontheproposedEuropean
ShippingRegister,forexample,couldbeapotential
model.2.1.4.TheCommitteeisdisappointedthat,having
identifiedthekeyproblem,theCommissiondoesnot
proposeanyapproachfortryingtoresolveit.For,
theapprovedgoalofestablishingcomparabletransfer
valuesEC-wideandassociatedrightspresupposesan
officialcoordinationmachineryforthispurpose,ifsuch
rightsaretobeguaranteedandefficientlyadministered
throughouttheCommunity .(Thealternativewouldbe
to'muddlethrough'onanadhocbasis.)TheCom­
mittee,inotherwords,considersthatthereisacase
foranECcoordinationframeworkinrespectofoccu­
pationalpensionschemesanalogoustothatalreadyin
existenceforstatutoryschemes.TheCommissionmight
reconsiderwhetherArticle51oftheTreatywouldbe
theappropriatelegalbasisforsuchacoordination
framework .Ifnot,possiblyArticle118mightbe
invokedatafirststage.2.1.9.ThesecondlifeinsuranceDirective(619/90/
EEC),togetherwiththedraftDirectiveonthefreedom
ofmanagementandinvestmentoffundsheldbyinsti­
tutionsforretirementprovision [doc.COM(91)301
final—SYN363]andotherECmeasuresliberalizing
capitalmovements,shouldalsohelpthesinglefinancing
ofpensionschemesbyamultinationalemployerand
cross-bordermembershipofoccupationalpension
funds. 2.1.5.AnofficialECframeworkforcoordinating
nationalpracticescoveredbylawandoperatingaccord­
ingtoappropriateactuarialadvicewouldbethelogical
launchingpadandcatalystinthegradualorganisation
ofcomparabletransfervaluesandqualifyingconditions
onatrans-national basisthroughouttheCommunity .2.2.Facilitatingtheacquisitionofpensionrights
2.2.1.TheCommissiontextpointsoutthatmini­
mumserviceperiodsentitlingworkerstoasupplemen­
tary(occupational )pensionvaryconsiderablythrough­
outtheECandpenaliseindividualswhofrequently
changejobs,especiallyincross-bordersituationsor
becauseofmovingfromoneMemberStatetoanother.
TheCommitteeconsidersthatvestingandwaitingper­
iodsshouldbecutbynationallegislationtoaminimum,
especiallyinpre-fundedschemes.TheCommission
mightconsiderproposingtoMemberStatesasetof
targetfiguresinthisrespect.2.1.6.Anappropriatestartingpointfortheoper­
ationaldevelopmentofthisframeworkwouldbeto
assessgoodpracticeinregardtotransferability andto
considerhowthiscouldbeextendedonamulti-national
basis.Pre-fundedschemes,inthisconnection,would
probablybetheeasiesttestcasestoworkonsince
theyarebasedonanactualcapitalstockallowing
thecalculationoftransfervalues.Safelyfinanced,and
preferablystateguaranteed,pay-as-you-go schemes
managedbylargeassociations (as,forexample,in
France)andbaseduponacalculable'points'value
systemcouldbeasecondareatoexplore,evenif
transfersareasyetuncommon .Company-linked and
revenue-based bookreservesystemswithnoaccumu­
latedassetsbehindthemareprobablytoocomplicated,
andpossiblytooprecarious,foranycoordinatedtrans­
fersystemtowork,especiallyattrans-national level.2.2.2.Withregardtothesituationofpart-timeand
temporaryworkers,theCommitteehasrepeatedly
stressedthattheyshouldhavethesameright,according
tothesamerelativecriteriaasfull-timeregularworkers
tobeincludedinoccupationalpensionschemes.The
CommunitySocialCharterandthedraftDirectiveon
'atypicalwork'bothunderlinedthisprincipleandwere
endorsedbytheCommittee .GiventhattheCommittee
hasalreadytakenafirmpositiononthequestion,this
Opinionshouldconcentrateonaddressingsomeofthe
practicalissuesinvolvedintheacquisitionbypart-time2.1.7.Inthissamecontextofexploringgoodprac­
tice,effortsshouldbemadebytheCommissionto

31.8.92 OfficialJournaloftheEuropeanCommunities NoC223/15
possibleproblemsofdoubletaxationcouldoccur.The
needforproperinformationontransfervaluesand
forfairactuarialstandardsmustalsobeconsidered
(perhapsbyanECCommitteeofexperts?).
2.3.2.Inresponsetothefirstseriesofproblems,the
Committeewouldstressthatamemberofsuchafunded
or'points'basedoccupationalpensionschemewho
leavestheemploymentaftertheminimumvestingper­
iodshouldhavetheoptionofleavinghisorherinterest
intheschemetoprovideabenefitatretirement,orof
removingitatafairvaluationtobeappliedtothe
occupationalpensionschemeofthenewemployment
ortoapersonalpensionscheme.Intheformercase,
thevalueofthepreservedbenefitshouldbecapitalised
orifnecessaryincreasedtocompensateforinflation
betweenthedateofleavingandthatofretirement,
thoughsomemaximumlimitonthis(say5%per
annum)mayberealistic.Inthelattercase,thevalueof
thepreservedbenefitshouldbebasedoncontributions
paidtothedateofleavingandinvestmentincome.andtemporaryworkersofanoccupationalpension
rightanditspreservationand'transferability 'EC-wide:
—Thereshouldbenoproblemforpart-time
employeesinregularemploymentparticipatingin
occupationalpensionsschemesonapro-ratabasis
andthusenjoyingsimilarbenefitstothoseavailable
tofull-timeemployees .Vestingandwaitingperiods
shouldbethesame.Thecalculationoftransfer
valuesorpension'points'shouldalsobedonein
thesameway.
—Thecaseoftemporaryworkers(includingagency
staff)wouldbemorecomplicatedsincetheirperiods
ofengagementwithaparticularemployerwould
frequentlybeofshorterdurationthantheminimum
serviceperiodneeded.However,thoseemployedon
thebasisofrepeatedrenewaloffixedtermcontracts
shouldqualifyonacumulativebasis.Theireventual
pensionableservicewouldbebasedontheaggre­
gatedperiodofemploymentinvolved.Somediffi­
cultymaybeexperiencedindeterminingthepen­
sionablesalaryforsuchemployeesinanoccu­
pationalschemewhereapensioniscalculatedasa
proportionoffinalsalary;aschemeinwhichthe
pensionisbasedonaveragerevaluedpensionable
salarymaybemoreappropriateforthem.Forindi­
vidualswhoseemploymentpatternisintermittent
withavarietyofemployers,thelawsofMember
Statesshouldenablepersonal,portablepension
planstoreceiveappropriateemployers'contri­
butionsandtaxtreatmentthatisnolessfavourable
thanthatavailabletooccupational pension
schemes.2.3.3.Asregardsthetaxquestion,theCommittee
hasalreadyidentified(inparagraph2.1.3above)the
widelydifferingtaxregimesinthevariousMember
Statesasoneofthemajorobstaclestothecross-border
transferofoccupationalpensionrightsandurgesthe
Commission toinitiateactiontoachieveEC-widecoor­
dinationandstreamliningonthisissue.
2.3.4.Asregardsproperandbetterinformation,the
Committeewouldregisterthatthecalculationofindi­
vidualtransfervaluesisahighlycomplexexercise.
Membersoftheschemesmentionedaboveshouldhave
theright,sayonceeachyearonrequestoruponleaving
theiremployment ,tobegiventheirrespectivetransfer
values.2.2.3.Inthecaseofworkerssecondedorsub-con­
tractedforrelativelyshortperiodsofemploymentelse­
whereorinanotherMemberState,itwouldbereason­
ableforthemtoremaininmembershipoftheirown
occupationalpensionschemeorbepartofamulti­
nationalschemeassurmisedinpoints2.1.7and2.1.8).
2.3.5.Inallthis,fairactuarialstandardsareessen­
tial.Inthecaseoffundedschemes,theactuaryshould
notusedifferentassumptionsfortransfersoutofthe
fundfromthoseusedtocalculatethebenefitgranted
foratransferintothefund.2.2.4.Self-employed workersoperatingorcon­
tractingtrans-nationally shouldbeactivelyencouraged
toseekthebestpossiblepensionprovision,forexample
private(portable)pensionschemes.
2.3.Preservationortransferofpensionrights 2.4.Follow-upandmonitoring
2.3.1.Forworkerswhohaveacquiredoccupational
pensionrights,theretentionortransferofacapital
valueinorfromapre-fundedschemetoanotheris
possible.Thesamecouldalsoeventuallybeworked
outforsafely-financed pay-as-you-go schemesbasedon
a'points'valuesystem(seepoint2.1.5).Inbothcases,
however,theretentionortransferwouldprobablynot
beabletotakeaccountoffuturepayrises.Inaddition,2.4.1.TheCommitteeurgestheCommissiontofol­
lowupthisfirstdiscussiondocument,afterappropriate
consultationsandconsideration ,withamorepolicy­
orientedproposalforactionandclosercoordination
throughouttheEC.Movestoeliminateobstaclesto
cross-bordermobility,tocoordinateandmonitordevel­
opmentsandtoassesstheimpactofECmeasuresare
alltobewelcomed .

NoC223/16 OfficialJournaloftheEuropeanCommunities 31.8.92
2.4.2.Oncecoordination isinplace,anappealsestablishedinordertoensurethattransfervaluesand
procedure (anombudsmanforexample?)mightbebenefitshavebeencalculatedfairlyandconsistently .
DoneatBrussels,26May1992.
TheChairman
oftheEconomicandSocialCommittee
MichaelGEUENICH
OpinionontheproposalforaCouncilDirectiveontheHygieneofFoodstuffs (])
(92/C223/05)
On6February1992theCouncildecidedtoconsulttheEconomicandSocialCommittee,
underArticle100AoftheTreatyestablishingtheEuropeanEconomicCommunity ,onthe
abovementioned proposal.
TheSectionforProtectionoftheEnvironment ,PublicHealthandConsumerAffairs,which
wasresponsibleforpreparingtheCommittee'sworkonthesubject,adopteditsOpinionon
5May1992.TheRapporteurwasMrGardner.
Atits297thPlenarySession(meetingof26May1992)theEconomicandSocialCommittee
unanimouslyadoptedthefollowingOpinion.
1.Introduction
1.1.TheCommitteehasaskedforthisproposalon
numerousoccasionsandthereforewelcomesitwhile
alsodeploringthatitissolate—itshouldhavebeen
issuedtogetherwiththenumerousproposalsforregu­
lationsonhealthrulesforanimalproducts.
1.2.CentraltotheproposalsisArticle3requiring
hygienicpracticesrightthroughthefoodchainand
inparticularrequiringHACCP(HazardAnalysisand
CriticalControlPoints).Thisinvolvestheproducer
lookingathisprocessindetail,identifyingthecritical
pointswherehygieneisatriskandconcentratingcon­
trolmeasuresonthese.
1.3.Theproposalalsolinksgoodhygienepractices
intheECtotheapplicationoftheCodexcodeof
practiceandtheEN29000standardsofqualityassur­
ance.2.Generalcomments
Withallthesepositivefactors,thereisthenegativeone
thatfoodscoveredbyverticaldirectivesorregulations
areexemptedfromitsambit.Sincetheseoftencontain
anumberofderogationsfromhealthrulesandalso
oftendonotapplyHACCP,thereremainsaserious
riskforconsumers .ItisforthisreasonthattheCom­
mitteeinitsOpiniononrecentproposalsforvertical
regulations (2)insistedthatthisDirectiveandHACCP
mustapplytoallfoodsincludingthosecoveredby
theseverticalproposals.TheEuropeanParliamentgave
similaropinions.
2.1.DescriptionofHACCP
2.1.1.HACCPisamanagementandcontrolsystem
applicabletofoodbusinessofallsizes,whichaimsto
avoidsafetydefects,particularlythoseassociatedwith
microbiological ,chemicalandphysicalcontaminants .
Itachievesthisbygettingtheoperatorobjectivelyto
identifyhazardsandtheplaceswheretheycanbe
(i)OJNoC24,31.1.1992,p.11.(2)OJNoC327,30.12.1989;OJNoC124,21.5.1990;OJNo
C84,2.4.1990;OJNoC332,31.12.1990.