Opinion of the Economic and Social Committee on the 'Proposal for a Council Regulation (EC) amending, for the benefit of beneficiaries of preretirement benefits, Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to the members of their families moving within the Community and Regulation (EEC) No 574/72 laying down the procedure for implementing Regulation (EEC) No 1408/71` () (96/C 295/07)

On 8 February 1996 the Council decided to consult the Economic and Social Committee, under Article 198 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Social, Family, Educational and Cultural Affairs, which was responsible for preparing the Committee's work on the subject, adopted its Opinion on 20 June 1996. The Rapporteur was Mr Chevalier.

At its 337th Plenary Session (meeting of 10 July 1996), the Economic and Social Committee adopted the following Opinion by 79 votes to twelve, with eight abstentions.

1. Commission proposal

1.1. On 18 June 1980 the Commission proposed amending the pre-retirement and unemployment benefits' provisions of Regulation (EEC) Nos 1408/71 and (EEC) 574/72 relating to social security arrangements for migrant workers. This proposal was not, however, adopted by the Council, where unanimity is required, chiefly because it linked the two issues (pre-retirement and unemployment).

1.2. Consequently, the Commission has now replaced the 1980 proposal by two separate updated proposals, and presented them to the Council jointly.

1.3. In its comments on pre-retirement benefits, the Commission puts forward the same arguments as for unemployment benefit (high unemployment, difficulty in returning to the world of work, lack of coordination in Member State legislation), emphasizing the need for measures to make it easier for beneficiaries of pre-retirement schemes to move freely within the Community.

1.4. The new provisions seek to bring pre-retirement benefits under Regulation (EEC) Nos 1408/71 and 574/72. They define the term 'pre-retirement`, establish the procedures for coordination and exportation of pre-retirement benefits and set out the procedures (particularly procedures for checking) which are to apply under the new Regulation.

2. General comments

2.1. As regards the reasons for the proposal, the Committee endorses the Commission's attempt to ease the situation on the labour market and promote free movement within the Community.

2.2. The Committee regrets, however, that the proposed procedures would be complex and costly to implement, and would still not guarantee effective checks, particularly on whether pre-retirement benefit payment beneficiaries were engaged in gainful employment.

3. Specific comments

3.1. The Committee has no objections to the proposal's definition of the term 'pre-retirement`, which is to be included in Article 1(w) of Regulation (EEC) No 1408/71. It notes that the definition covers all benefits to older unemployed people who are not required to look for work. Moreover, it is not an early retirement benefit.

The Committee notes that recognition of the right to export benefits would involve extending the Regulation to collective agreements, and would call on the Commission to ensure that implementation of the measures does not prejudice the independence of the signatories of collective agreements.

3.2. Whilst recognizing the difficulties involved in implementing checking procedures, the Committee would urge the Commission to seek broader guarantees.

3.3. From a technical point of view, the proposals concern the following Articles of Regulation (EEC) No 1408/71:

Article 1 Third subparagraph of (j), add 'the contractual provisions concerning pre-retirement benefits`. After (v), add (w): definition of pre-retirement.

Articles 4(1) - 4(4) Insert the word 'pre-retirement`.

Article 25a Extension of cash benefits or benefits in kind to family members (Article 19) and to frontier workers (Article 20).

Chapter 6 a) Creation of a Chapter 6 a) under Title III, introducing the idea of pre-retirement, and its specific nature compared to unemployment benefits.

Article 71a Insertion concerning the aggregation of periods of insurance or employment and calculation of benefits.

Article 71b Implementation and checks.

Article 74a Family benefits.

3.4. It is proposed to amend Regulation (EEC) No 574/72 as follows:

Article 26a Insertion of status of pre-retirement.

Article 84a Application of Article 71b, checking procedures.

4. Conclusion

The Committee endorses the proposed amendments to Regulation No 1408/71 and No 574/72, but would urge the Commission to consider the comments and reservations contained in this Opinion. The Committee would particularly like to examine the Commission's proposals concerning the recommendation in the second paragraph of point 3.1, on the independence of the signatories of national collective agreements, and the right to free movement.

Done at Brussels, 10 July 1996.

The President of the Economic and Social Committee Carlos FERRER

() OJ No C 62, 1. 3. 1996, p. 14.