ARCHIVESHISTORIQUES
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DOCUMENTS "COM"
COM(79)172
Vol.1979/0074

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)172 final
Brussels,6April1979
:
\
\s/
VVy/
,
PROPOSAL FORACOUNCILREGULATION
amendingCouncilRegulations (EEC)Nos1408/71
and574/72ontheapplication of
socialsecurityschemestoemployedpersonsandtheirfamiliesmoving
withintheCommunity
applicationofsocialsecurityschemestoemployedpersonsandtheirPROPOSAL FORACOUNCILREGULATION
amendingtheAnnexestoRegulations (EEC)
Nos1408/71 :and574/72■ onthe
familiesmovingwithintheCommunity
(submittedtotheCouncilbytheCommission )
CQM(79)172final

ANNEX I
Proposal foraCouncil Regulation amending Regulations (EEC )Nos .1408/71
and574/72ontheapplication ofsocial security schemes toemployed persons
andtheir families moving within theCommunity
TheCouncil oftheEuropean Communities
Having regard totheTreaty establishing theEuropean Economic Community ,and
inparticular Articles 2,7and51thereof ,
Having regard toCouncil Regulation (EEC)No.1408 /71of 14June 1971 on
theapplication ofsocial security schemes toemployed persons andtheir fa­
milies moving within theCommunity (1),aslast amended byRegulation (EEC )
No2595/77 (2),andinparticular Article 97thereof ,
Having regard toCouncil Regulation (EEC )No.574/72of21 March 1972
fixing theprocedure forimplementing Regulation (EEC)No.1408 /71onthe
application ofsocial security schemes toemployed persons andtheir families
moving within theCommunity (3),aslast amended byRegulation (EEC )No.
2595/77,
Having regard totheproposal from theCommission drawn upafter consulting
theAdministrative Commission onSocial Security forMigrant Workers ,
Having regard totheopinion oftheEuropean Parliament (4),
Having regard totheopinion oftheEconomic andSocial Committee (5),
(1)O.J. No.L149,5.7.1971 ,p.2.
(2)O.J. No.L302,26.11.1977 ,p.1.
(3)O.J. No.L74,27.3.1972 ,p.1.
(4)
(5)

-2-
WhereasexperienceoftheoperationofRegulation (EEC)No.1408/71and(EEC)
No.574/72hasshowntheneedtomakesomeimprovementstotherightsof
migrantworkers;whereas,consequently ,conscientious objectorswhoare
calleduporrecalledforcivilianserviceandwhoareinrespectthereof
assimilatedtopersonsperformingmilitaryserviceforcertainbenefits
shouldbenefitunderRegulation (EEC)No.1408/71;
Whereasitisnecessaryforpersonscoveredbyagreementsconcludedunder
Article17ofRegulation (EEC)No.1408/71tobeprovidedwithdocumentary
evidenceindicatingthelegislationofwhichMemberStateisapplicablein
theircase;
Whereasitisnecessarytoremovethepracticaldifficulties confronting a
worker,otherthananinternational transportworker,whonormallypursueshis
activityintheterritoryoftwoormoreMemberStates;
Whereasprovisionshouldbemadetosimplifytheprocedureslaiddownby
Regulation (EEC)No.574/72tobefollowedinorderthataworkertempo­
rarilypostedtoanotherMemberStatemayobtainbenefitsinkindin
respectofsickness,maternity ,accidentatworkoroccupational disease.
Whereas,byvirtueofArticle121ofRegulation (EEC)No.574/72,theAnnexes
tothetRegulationmustbeamendedbyaRegulationadoptedbytheCouncil
actingonaproposalfromtheCommission ;
WhereastheadoptionofsuchaRegulationbytheCouncilconsists,inregard
tothemodification ofcertainofthoseAnnexes,intakingaccountofdecisions
takenbyeachMemberStateconcernedorbythetwoMemberStatesconcerned
orbythecompetentauthoritiesofthoseStates;whereasitistherefore
desirabletohaverecoursetoasimplerprocedure ;
WhereasitisappropriatetoamendthesaidArticle121soastomakeit
possibleforAnnexes1,4,5,6,7and8ofRegulation (EEC)No.574/72tobe
amendedbymeansofaRegulationadoptedbytheCommissionattherequestof
theMemberStateorStatesconcernedortheircompetentauthorities ;
Whereas,moreover,thesaidArticle121providesthattheAnnexestoRegu­
lation(EEC)No.574/72formanintegralpartofthelatter;whereas,mutatis
mutandis,thesameappliesinregardtotheAnnexestoRegulation (EEC)No.
1408/71;whereasArticle95ofthelatterRegulationshouldthereforebe
amendedaccordingly ,
hasadootedthisRegulation :

-3-
ARTICLE 1
Regulation (EEC)No.1408/71Ishereby amended asfollows :-
1,Article13(2)(d)shallbeamendedtoreadasfollows:-
"(d)Aworkercalleduporrecalledforserviceinthearmedforcesofa
MemberStateorcivilianserviceinaMemberStateshallretainthe
statusofaworkerandshallbesubjecttothelegislation ofthat
State ;ifentitlement underthatlegislationissubjecttothecom­
pletionofinsuranceperiodsbeforeentryintoorreleasefromsuch
militaryor,asthecasemaybe,civilianservice,insuranceperiods
completedunderthelegislationofanyotherMemberStateshallbe
takenintoaccount,totheextentnecessary,asiftheywereinsu­
ranceperiodscompletedunderthelegislationofthefirstState".
2-(a)InArticle95,aftertheheading,thereshallbeinsertedthefollowing
paragraph :-
"(1)TheAnnexestothisRegulationshallformanintegralpart
thereof ".
(b)Thepresent text ofArticle95shall benumbered"2".

ARTICLE2
Regulation (EEC)No.574/72isherebyamendedasfollows:-
(a)Inthesub-headingtoTitleIII,forthefigure"16"thereshallbe
suhsitutedthefigure"17".
(b)TheheadingtoArticle11shallbeamendedbytheaddition11,afterthe
words"Formalitiesinthecaseofpostingelsewhere",ofthefollowing:
"pursuanttoArticle14(l)(a)and(2)andinthecaseofagreements
concludedunderArticle17oftheRegulation".
(c)Article11(1)shallbereplacedbythefollowing :-
"1.Acertificatetestifyingthataworkershallremainsubjecttothe
legislationofaMemberStateuptoaspecifieddateshallbeissued
bytheinstitutiondesignated bythecompetentauthorityofthe
MemberStatewhoselegislationistoremainapplicable ,
(a)attherequestoftheworkerorhisemployerincasesreferred
toinArticle14(l)(a)and(2)(a)oftheRegulation ;
(b)incaseswhereArticle17oftheRegulationapplies".
AfterArticle12thereshallbeinsertedthefollowingArticle:-
"Article12a"
Rulesapplicableinrespectofaworkerotherthanoneemployedininter­
nationaltransport ,whonormallypursueshisactivityintheterritoryoftwo
ormoreMemberStates.
1.ForthepurposesofArticle14(l)(c)(i)oftheRegulationaworkerwho
normallypursueshisactivityintheterritoryoftwoormoreMember
Statesshallinformtheinstitutiondesignatedbythecompetentauthority
oftheMemberStateonwhoseterritoryheresidesofthisfact.That
institutionshallissuehimwithacertificatetestifyingthatheis
subjecttothelegislationofthatStateandshallsendacopythereofto
theinstitutiondesignatedbythecompetentauthorityofeachMemberState
inwhoseterritoryanemployerhasaregisteredofficeorplaceofbusiness
inwhichthesaidworkerisemployed.Thislatterinstitutionshall,inso
farasnecessary ,sendtotheinstitutiondesignatedbythecompetent
authorityoftheMemberStatewhoselegislationisapplicabletheinfor­
mationnecessarytoassesthecontributions forwhichtheemployeror
employersand/ortheworkerareliablebyvirtueofthatlegislation .

-5-
2.FOPthepurposesof Article14(1)(c)(ii)oftheRegulation
theprovisionsofparagraph 1ofthisArticleshallapplybyanalogy.
However,theworkerinquestionmayobtainthecertificatetestifying
thatheshallbesubjecttothelegislation oftheMemberStateonwhose
territorytheemployerorundertaking employinghimhasitsregistered
officeorplaceofbusiness,fromtheinstitutiondesignated bythecom­
petentauthorityofthatState,wherenecessary,throughtheagencyof
theinstitutiondesignated bythecompetentauthorityoftheMemberState
onwhoseterritoryheresides".
>,

-6-
3.(a)TheheadingtoArticle20shallbeamendedtoreadasfollows:-
"BenefitsinkindinthecaseofastayinaMemberStateotherthanthecompetent
State-Special caseofworkersemployedininternational transportandmembersof
theirfamilies".
(b)Paragraph 1ofArticle20shallbedeletedandtheremainingparagraphsof
thatArticleshallberenumbered 1to6respectively .
(c)Therenumberedparagraph4ofArticle20shallbeamendedtoreadasfollows:-
"4.Inplaceofthecertifiedstatementprovidedforinparagraph 1,aworker
coveredbythatparagraphmaysubmittotheinstitutionoftheplaceofstaya
certifiedstatementtestifyingthattheconditionsfortheacquisition ofthe
righttobenefitsinkindhavebeensatisfied.Thiscertifiedstatement,which
shallbeissuedbythecompetentinstitution,shallspecifyinparticular,where
necessary,themaximumperiodduringwhichbenefitsinkindmaybegrantedin
accordancewiththelegislationofthecompetentState.Insuchacaseparagraphs
1,2and3shallnotapply".
Cd)Intherenumberedparagraph6ofArticle20forthewords"paragraphs 1or2"
thereshallbesubstituted "paragraph 1".
(e)Inparagraph(1)ofArticle21,atline2,fortheword"cases"thereshall
besubstituted theword"case".
(f)Inparagraph 1ofArticle34,atlines3to4,forthereferenceto"Article
20(1),(2)and(5)",thereshallbesubstitutedthereference,"Article20(1)and
(4)".
(g)Paragraph 1ofArticle62shallbedeletedandtheremainingparagraphsof
thatArticleshallberenumbered 1to7respectively .
(h)Intherenumberedparagraph2ofArticle62,atlines3and4,thewords"or
2"shallbedeleted.
(1)Intherenumberedparagraph4ofArticle62,atline2,thewords"or2"shall
bedeleted.

-7-
(j)Therenumberedparagraph5ofArticle62shallbeamendedtoreadasfollows:-
"5.Inplaceofthecertifiedstatementprovidedforinparagraph 1,workersco­
veredbythatparagraphmaysubmittotheinstitutionoftheplaceofstayacer­
tifiedstatementasprovidedforinparagraph6".
(k)Intherenumberedparagraph6ofArticle62,atline3,forthewords"para­
graphs1and2"thereshallbesubstituted "paragraph 1".
(I)Atparagraphs 1and2ofArticle113foreachreferenceto"Article20C2)or
Article62(2)",thereshallbesubstitutedthefollowingreference,"Article20(1)
orArticle62(1)".

Article121shallbeamendedasfollows:-
(a)Inparagraph2,forthewords"TheseAnnexes"thereshallbesubstitu­
tedthewords"Annexes2,3,9and10".
(b)Paragraph 3shallbereplaced bythefollowing :-
"3.Annexes1,4,5,6,7and8maybeamendedbyaRegulationofthe
CommissionattherequestoftheMemberStateorStates
concernedortheircompetentauthorities".

-9-
ARTICLE3
ThisRegulationshallenterintoforceonthedayofitspublicationinthe
OfficialJournaloftheEuropeanCommunities.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels 19 FortheCouncil:

ANNEXII
EXPLANATORY MEMORANDUM
oftheproposalforaCouncilRegulation
amending CouncilRegulations (EEC)
Nos.1408/71 and574/72.
ontheapplicationofsocialsecurityschemes
toemployedpersonsandtheirfamilies
movingwithintheCommunity

1.1Article13(2)(d)ofRegulation 1408/71IntheFederalRepublicofGermany
conscientious objectorswhoperformacivilianservicearetreatedinthesame
wayaspersonswhoperformmilitaryservice,forthepurposesofsicknessand
unemployment insuranceaswellasforpensioninsurance(invalidity,old-age
anddeath).
Theamendmentisintendedtoensurethatpersonswhoperformsuchcivilian
servicemaybenefitfromtheprovisionsofArticle13(2)(d)whichatpresent
extendonlytoaworkerwhoiscalleduporrecalledforserviceinthearmed
forcesofaMemberState.
1.2Article95ofRegulation 1408/71Articles95ofRegulation 1408/71and121of
Regulation 574/72fixtheprocedurestobefollowedforamendingtheAnnexes
tothoseRegulations.Inaddition.Article121providesthattheAnnexestoRe­
gulation574/72formanintegralpartofthelatter.Itisobviouslythesame,
mutatismutandisinrespectoftheAnnexestoRegulation1408/71.
Soastoavoidambiguityonthispoint,itissoughttoamendArticle95of
Regulation 1408/71.
2.Articles11,20and62ofRegulation 574/72TheamendmentstoArticle11on
theonehandandArticles20and62ontheotheraretoacertainextentinter­
relatedandmaybeconveniently explainedtogether.
(a)InitspresentformArticle11providesfortheissueofacertificateof
postinginrespectofdetachedworkersindicatingthatthesaidworkersshall
remainsubjecttothelegislationofthesendingStateuptoaspecifieddate.
ItisintendedthatArticle11shouldcontinuetoapplyinthesamewayinthis
respect.
Allthatthepresentamendmentseekstoachieveistoprovideasimilaradminis­
trativeprocedureasalreadyexistsfordetachedworkersforthoseworkersor
categoriesofworkerswho,byvirtueofahagreementconcludedunderArticle17
ofRegulation1408/71aretoremainsubjecttothelegislationofaMemberState.
(b)IntheirpresentformArticles20(1)and62(1)makespecialprovisionfor
detachedworkersbypresumingthattheconditionsforacquisitionofarightto
benefitsinkindhavebeensatisfiedwherethecertificate referredtoinArti­
cle11hasbeenproduced.Theinstitutionoftheplaceofstaymustwithin3days
enquirefromthecompetentinstitutionwhetherthepersonconcernedsatisfiesthe
conditionsforsuchacquisition.Notwithstanding thepresumption mentionedabove,
benefitsinkindmaybeprovidedfornotmorethan30daysunlessthecompetent
institution confirmsthatentitlementtobenefitsinkindexistsunderitsle-

-2-
gislation(seeArticles20(3)and62(3)).Itisfeltthatthisneed,subsequent
totheriskarising,toverifyentitlementt6benefitsinkindwiththecompe­
tentinstitution,constitutes anadditionalandavoidablehurdle.Itisthere­
foreproposedthatArticles20and62beamendedinsuchawaythatthedetached
workerismadetofallundertheprovisionsofArticles21and62(6)(asamended),
respectively .Thiswouldhavethemeritofenablingsuchpersonstobeprovided
bytheircompetentinstitutions withacertificatebeforeleavingthatMember
Statewheretheyareinsuredandwhichwouldforthwithprovetheirentitlement
tobenefitsinkind.
(c)TheremainingamendmentscontainedtoArticle2.1and3oftheproposalare
consequential upontheadoptionoftheforegoing.
ΓΓ

Article12aofRegulation574/72-,Aworkerotherthanoneemployedininternational
transportwhonormallypursueshisactivityintheterritoryoftwoormoreMember
States-ThisnewprovisionseekstoestablishmethodsforimplementingArticle14
(1)(c>ofRegulation1408/71inordertodealWithdifficulties encountered bya
workerwhonormallypursueshisactivityintheterritoryoftw©ormoreMember
States.
Paragraph 1isconcernedwiththecaseofaworkerwhoincompliancewiththepro­
visionsofArticle14(1)(c)(i)ofRegulation1408/71,issubjecttothelegislation
oftheMemberStateonwhoseterritoryheresides.
Theadministrative procedureenvisagedinthisprovisionisintendedtoimprove
thematerialconditionsinwhichaworkermaybemadesosubjectinconformity
withthelegislationapplicable;itisalsointendedtofacilitatethecollection
ofcontributions andasaconsequencetoassureabetterprotectionottheworker
whenheinvokeshisrighttobenefit.
Paragraphe 2isconcernedwiththecaseofaworkerwhoincompliancewiththe
provisionsofArticle14(1)(c)Cii )ofRegulation1408/71,issubjecttothele­
gislationoftheMemberStateonwhoseterritorytheundertakingoremployer
employinghimhasitsregisteredofficeorplaceofbusiness.Theprocedureen­
visagedforparagraph 1isalsoapplicableinthiscase.Itisalsomadeexplicit
thatthecertificatetobeissuedbytheinstitutiondesignatedbythecompetent !
authorityoftheMemberStatewhoselegislationisapplicable maybeobtained
throughtheagencyoftheinstitutiondesignated bythecompetentauthorityof
theMemberStateonwhoseterritorytheworkerresides.

-4-
4.(a)Article121ofRegulation574/72-Article121ofRegulation574/72providesthat
theAnnexestothatRegulation maybeamended,attherequestoftheMemberSta­
teorMemberStatesconcerned,byaCouncilRegulationadoptedonaproposalfrom
theCommission,afterhavingreceivedtheopinionoftheAdministrative Commission.
WiththeexceptionofAnnex9,thenatureofacertainnumberoftheseAnnexesdoes
notjustifysuchaweightyprocedure.
-Annexes1to4,7and10makementionoftheauthorities,institutions,banks
andbodiesresponsibleforImplementing CommunityRegulations ineachMember
Stateandwhosedesignation remainswithinthecompetenceofthatMemberState
alone;
-Annex5makesmentionofbilateralprovisionsconcerningspecialrulesofpro­
cedurewhichareapplicableindealingsbetweentwoMemberStatesorthemethods
ofreimbursement betweentheinstitutions oftwoMemberStates.Thesebilateral
provisionsaredrawnupbycommonagreementbytheMemberStatesconcerned,
sincetherelevantprovisionsoftheimplementing Regulationprovidesuchpos­
sibilityfortheMemberStates;
-thesameappliesbothinrespectofAnnex6whichindicatesthechoicemade
bytwoMemberStatesinrespectofthemethodsofpaymentofpensionsandpen­
sionsinrespectofaccidentsatworkandoccupational diseasesandalsoin
respectofAnnex8whichconcernsthemethodsofpaymentoffamilybenefits
inparticularcases.
ItisthereforedesirablethattheseAnnexesbeamendedbymeansofaprocedure
whichissimplerandspeedierthanthatoftheCouncilRegulation.Provision
shouldbemadesoastoenablethoseamendmentswhichareneeded,tobeeffec­
tedbymeansofasimpleRegulationoftheCommissiononthebasisofinforma­
tionfurnishedbyaMemberStateorMemberStatesandwhichresultfromthe
developmentoflegislative andadministrative procedures.However,thisnew
procedurecannotbeeffectively implementedinrespectofalltheAnnexescited.
AmendmentstoAnnex9mustcontinuetofollowtheprocedurecurrentlyusedbe­
causeoftheobjectoftheprovisionswhichitcontains.Thoseprovisionsin
factdealwithmattersconcerningthecoordination tobeoperatedbetweenMem­
berStates.ThatsameproceduremustalsoremainforAnnexes2,3and10be­
causeoftheparticularproblemstowhichamendmentsgiverise.
Itisthereforeproposedlimitingtheapplicationofthenewprocedureforef­
fectingamendmentstoAnnexes1,4,5,6,7and8.
(b)Therevocationofthepresentparagraph3ofArticle121ofRegulation574/72is
consequential upontheamendmentwhichisbeingmadetoAnnexV,C7(Federal
RepublicofGermany)ofRegulation1408/71.

ANNEXIII
ProposalforaCouncilRegulationamendingtheAnnexestoRegulations (EEC)
Nos.1408/71and574/72ontheapplicationofsocialsecurityschemesto
employedpersonsandtheirfamiliesmovingwithintheComnunity
TheCounciloftheEuropeanCommunities ,
HavingregardtotheTreatyestablishing theEuropeanEconomicConmunity,
HavingregardtoCouncilRegulation (EEC)No.1408/71of14June1971on
theapplicationofsocialsecurityschemestoemployedpersonsandtheir
familiesmovingwithintheConmunity (1),aslastamendedbyRegulation
(EEC)No.2595/77(2),andinparticularArticle95thereof,
HavingregardtoCouncilRegulation (EEC)No.574/72of21March1972
fixingtheprocedureforimplementing Regulation (EEC)No.1408/71onthe
applicationofsocialsecurityschemestoemployedpersonsandtheir
familiesmovingwithintheCommunity (3),aslastamendedbyRegulation
(EEC)No.2595/77,andinparticularArticle95thereof,
HavingregardtotheproposalfromtheCommissiondrawnupafterconsulting
theAdministrative ConmissiononSocialSecurityforMigrantWorkers,
HavingregardtotheopinionoftheEuropeanParliament (4),
HavingregardtotheopinionoftheEconomicandSocialCcarmittee (5),
(1)O.J.No.L149,5.7.1971,p.2.
(2)O.J.No.L302,26.11.1977 ,p.1.
(3)O.J.No.L74,27.3.1972,p.1.
(4)
(5)

-2-
Whereasaccountshouldbetakenofchangesintheinternalfinancial
administration withintheFederalRepublicofGermanyandalsoofthefact
thatlump-sumcontributions formedicaltreatmentontheoccasionof
confinementshouldbeconsideredasbenefitsinkind;
WhereasthechangesthathavebeenmadeinUnitedKingdomlegislation make
itnecessarytoamendAnnexesIIIandV.ItoRegulation (EEC)No.1408/71,
soastoallowforthetakingintoaccountofperiodsaccomplished under
otherMemberStates'legislations forthepurposeofsatisfyingpresence
conditionsimposedforthereceiptofUnitedKingdomfamilyallowancesand
alsosoastomakespecialprovisionforcalculatingtheamountofthe
UnitedKingdomadditionalcomponentpension;
WhereasitisappropriatethatcertainprovisionsofAnnex5toRegulation
(EEC)No.574/72beamendedtotakeaccountofagreementsconcludedbetween
MemberStates;
Whereasitisappropriatethattheprocedureforthepaymentofcertain
arrearsandothersinglepaymentsbeimproved;
hasadoptedthisRegulation :

Article1
TheAnnexestoRegulation (EEC)No.1408/71isherebyamendedasfollows:-
1.AnnexIII,PointI.,UnitedKingdom.
FortheexistingentryatPointIthereshall"besubstitutedthefollow­
ing!-
n(a)GreatBritain.
Section15oftheSocialSecurityAct,1975?
Sections14to16oftheSocialSecurity(Pensions)Act,1975*
(b)NorthernIreland.
Section15oftheSocialSecurity(NorthernIreland)Act,1975?
Articles16to18oftheSooialSecurityPensions(Northern
Ireland)Order,1975.H

-4-
2.Annex V,Point C.Germany .
(a)Forparagraph 7there shall besubstituted thefollowing !_
"7.Forthepurposes ofthis Regulation ,thelump sumcontributions for
medical treatment granted under German legislation tofemale insured
persons andtomembers ofthefamilies ofinsured persons onthe
occasion ofconfinement shall beconsidered asabenefit inkind ".
(b)After paragraph 9there shall beinserted thefollowing paragraphs­
"10.Where thecosts ofbenefits inkind which aregranted byGerman
institutions oftheplace ofresidence topensioners ortheir
dependants who areinsured with competent institutions ofother
Member States must berefunded inmonthly lump sums ,such costs
shall ,forthepurpose of financial equalization among institu­
tions ofthe German sickness insurance scheme forpensioners ,be
treated asexpenditure onGerman insurance forpensioners *sickness
benefits ;thelump sums refunded tothe German institutions inthe
place ofresidence bythe competent institutions ofother Member
States shall beregarded asreceipts which must betaken into
account inthat financial equalization ".
3.Annex V,Point I.United Kingdom .
(a)There shall besubstituted forparagraph 1thefollowing *-
"1.Allpersons who are "employed earners "within themeaning ofthe
legislations ofeither Great Britain orofNorthern Ireland andall
persons inrespect ofwhom contributions arepayable as"employed
persons "inaccordance with thelegislation ofGibraltar shall be
regarded as"workers "forthepurposes ofArticle l(a)(ii )ofthis
Regulation ."
(b)Inparagraph 2ineach place where thewords "theUnited Kingdom ",
or"United Kingdom "appear ,there shall besubstituted theword ,
"Gibraltar ".
(c)Paragraphs (4)and (ll)shall bedeleted andtheremaining para­
graphs shall berenumbered accordingly .

-5-
(d)Therenumberedparagraph4shallbereplacedbythefollowing
"4(a)WhereUnitedKingdomunemploymentbenefitispaidtoapersonby-
virtueofArticle7l(l)(a)(ii )or(b)(ii)ofthisRegulation,then
forthepurposeofsatisfyingtheconditionsimposedbyUnited
Kingdomlegislation inrelationtochildbenefitconcerninga
periodofpresencewithinGreatBritainor,asthecasemaybe,
NorthernIreland,periodsofinsuranceoremploymentaccomplished
bythatpersonunderthelegislation ofanotherMemberStateshall
betreatedas
presenceinGreatBritain,orasthecasemaybe,NorthernIreland.
(b)WherebyvirtueofTitleIIofthisRegulationUnitedKingdom
legislationisapplicableinrespectofaworkerwhodoesnot
satisfytheconditionimposedbyUnitedKingdomlegislation in
relationtochildbenefitconcerning :
(i)presencewithinGreatBritain,orasthecasemaybe,Northern
Ireland,heshallbetreatedforthepurposeofsatisfying
suchconditionasbeingsopresent;
(ii)aperiodefpresencewithinGreatBritainorasthecasemay
be,NorthernIreland,periodsofinsuranceoremployment
accomplished bythatpersonunderthelegislation ofanother
MemberStateshallforthepurposeofsatisfyingsuchcondi­
tionsbetreatedaspresenceinGreatBritain,orasthe
casemaybe,NorthernIreland.
(c)Inrespectofclaimstofamilyallowancesunderthelegislation
ofGibraltartheforegoingprovisionsofsub-paragraphs (a)and
(b)shallapplybyanalogy."
(e)Sub-paragraph (b)oftherenumberedparagraph6shallbe
replacedbythefoilowing
"(b)forthepurposesofdeterminingwhetherhewasanemployedearner
underthelegislation ofGreatBritainorNorthernIrelandoran
employedpersonunderthelegislation ofGibraltar,bydisregarding
hisabsencefromthoseterritories ".
(f)Therenumberedparagraph10shallbereplacedbythefollowing
"10.Forthepurposeofdeterminingentitlementtobenefitinkindpursu­
anttoArticles22(l)(a)and31ofthisRegulation,theexpression
"memberofthefamily"shallmean:
(a)asregardsthelegislationofeitherGreatBritainorNorthern
Ireland,anypersonregardedasadependantwithinthemeaning
oftheSocialSecurityAct,1975,orasthecasemaybe,the
Social'"ecurity(NorthernIreland)Act,1975and

(b)asregardsthelegislationofGibraltar,anypersonregarded
asadependantwithinthemeaningoftheGroupPracticeMedical
SchemeOrdinance,1973".
(g)-Intherenumberedparagraph15(l)atline4»afterthewords,
•hinderUnitedKingdomlegislation"thereshall "beadded,
"saveasprovidedinparagraph17"below".
–Intherenumberedparagraph15(l)(b)forthewords,
"lowerearningslimitmultipliedby50",
thereshallbesubstituted ,
"levelrequiredtomakethatyearareckonableyearwithinthemeaning
oftheUnitedKingdomlegislation governingthecreditingofcontri­
butions".
(h)Aftertherenumberedparagraph16thereshallbeaddedthefollowing *-
"17(l)ForthepurposeofcalculatingTinderArticle46(2)(a)ofthis
Regulationthetheoretical amountofthatpartofthepension
whichconsistsofanadditionalcomponentunderUnitedKingdom
legislation :-
(a)referencesinArticle47(l)(fc)ofthisRegulationto"wages
orsalaries,contributions orincreasesincontributions "
shallbeconstruedasmeaningsurplusesinearningsfactors
asdefinedintheSocialSecurityPensionsAct,1975»oras
thecasemaybe,theSocialSecurityPensions(Northern
Ireland)Order,19755
(b)anaverageofthesurplusesinearningsfactorsshallbe
calculatedbyvirtueofArticle47(l)(b)ofthisRegulation
asconstruedinsub-paragraph (a)abovebydividingthe
aggregatedsurplusesrecordedundertheUnitedKingdom
legislation bythenumberofincometaxyearswithinthe
meaningofUnitedKingdomlegislation (includingpartincome
taxyears)completedunderthatlegislationsince6thApril,
1978whichoccurwithintherelevantperiodofinsurance.
(2)ReferencesinArticle46(2)ofthisRegulationtoperiodsof
insuranceorresidenceshallbeconstruedforthepurposeof
assessingtheamountofthatpartofthepensionwhichconsists
oftheadditional componentunderUnitedKingdomlegislation as
meaningperiodsofinsuranceorresidencewhichhavebeen
accomplished since6April1978#w

Article2
TheAnnexestoRegulation (EEC)574/72areherebyamendedasfollows
1.InAnnex5»point3»Belgium-France,thereshallheinsertedafterpara­
graph(e)thefollowingparagraph:-
"(f)TheAgreementof3October1977implementingArticle92ofRegula­
tion1408/71(recoveryofsocialsecuritycontributions).w
2.InAnnex5»point13»Denmark-Luxembourg ,forthewords"Noconvention"
thereshallbesubstitutedthefollowing:-
"TheAgreementof19June1978concerningthereciprocalwaivingof
reimbursement providedforinArticles36(3)»63(3)and70(3)ofthe
RegulationandArticle103(2)oftheimplementingRegulation(costsin
respectofbenefitsinkindforsickness,maternity,accidentsatwork
andoccupational diseasesandcostsofunemployment benefitand
administrative checksandmedicalexaminations)".
3,InAnnex5»point16,Germany-France ,afterparagraph(b)thereshallbe
addedthefollowing:-
"(c)TheAgreementof14October1977concerningthewaivingof
reimbursement providedforinArticle70(3)oftheRegulation
(costsofunemploymentbenefit)."
4,InAnnexpoint21,Germany-United Kingdom,thefollowingamendments
shallbemade:-
(i)Theexistingparagraphshallbelettered"(a)".
(ii)Afterparagraph(a),thereshallbeinsertedthefollowing:-
n(b)TheAgreementof29April1977concerningthereciprocal
waivingofreimbursement ofcostsasprovidedforinArticles
36(3)f63(3)and70(3)oftheRegulationandArticle105(2)
oftheimplementingRegulation(costsinrespectofbenefits
inkindforsiokness,maternity,accidentsatworkand
occupational diseasesandcostsofunemployment benefitand
costsofadministrative checksandmedicalexaminations!"

-8-
5.InAnnex 5,point 29,Ireland-Netherlands ,fortheentry "Noconvention ",
there shall besubstituted thefollowing :-
"Theexchange ofletters of28 July 1978 and10 October 1978 regard­
ingArticles 36(3)and63(3)oftheRegulation (partial reciprocal
waiving ofreimbursement ofcosts ofbenefits inkind inrespect of
sickness ormaternity ,accidents atwork andoccupational diseases )."
6.InAnnex 6intheparagraph entitled "General observation "forthewords
"Payments ofarrears andother single payments shall bemade ",there
shall besubstituted "Payments ofarrears andother single payments shall
inprinciple bemade ".
7.InAnnex 10,C.Germany ,paragraph 7(a),second column ,fortherefer­
ence ,"Annex 3Section B(2)(b)"there shall besubstituted thefollow­
ing ,"Annex 3Section C(2)(b)".
Article 3
This Regulation shall enter into force ontheday ofitspublication inthe
Official Journal oftheEuropean Communities .
Article 1.2(a )shall apply with effect from 1July 1977 .
Article 1.2(b )shall apply with effect from 1August 1977 .
Article 1.3 (a),(b),(d),(e)and (f)insofarasthey concern Gibraltar ,
shall apply with effect from 1April 1973 .
Article 1.3 (a),(b),(c)(inrelation totherevocation ofparagraph 4of
Annex V.I.ofRegulation 1408/71),(e)and (f),insofarasthey concern
Great Britain andNorthern Ireland ,shall apply with effect from 6April
1975 .
Article 1.3 (c)shall apply asregards thedeletion ofparagraph 11of
Annex V.I.orRegulation 1408/71with effect from 2January 1977 .
Article 1.3 (<0,in 8°farasitconcerns Great Britain andNorthern Ireland ,
shall apply with effect from 4April 1977 .

Article1.1,3(g)and(h)shallapplywitheffectfrom6April1978.
Article2.1shallapplywitheffectfrom1May1978.
Article2.2shallapplywitheffectfrom1April1973.
Article2.3shallapplywitheffectfrom27April1978.
Article2.4shallapplywitheffectfrom28December1977.
Article2.5shallapplywitheffectfrom1April1973.
ThisRegulationshallbebeindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels,
FortheCouncil:

ANNEXIV
EXPLANATORY MEMORANDUM
oftheproposalforaCouncilRegulation
concerningtheamendmentoftheAnnexestoRegulations (EEC)
Nos.1408/71 and574/72
ontheapplication ofsocialsecurityschemes
toemployedpersonsandtheirfamilies
movingwithintheCommunity

1.1AnnexIII,PointI,UnitedKingdom
TheUnitedKingdomlegislationof1971referredtointheexisting
entryofAnnexIIIhasbeensupersededbytheSocialSecurityAct,
1975,"theSocialSecurityPensionsAot,1975»"theSocialSecurity
(NorthernIreland)Act,1975and"theSocialSecurityPensions
(NorthernIreland)Order,1975*Asfrom6thApril,1979»invalidity
pensionspayableunderthenewlegislationtopersonswhohave
contributedtotheUnitedKingdomschemeasemployedearnerswill
consistoftwocomponents–aflat–ratebasiccomponentandan
earningsrelatedadditionalcomponent.Thebasicqualifyingconditions
forinvaliditypensionandthenatureofthebenefitasawhole,
remainunchanged.TheamendmentreflectsthechangesinUnitedKing^-
domlegislation.

1.2.(a)AnnexVC.paragraph7ofRegulation1408/71
AsaresultofamendmentstotheReichinsurancecode(RVO)andthe
lawconcerningsicknessinsuranceforfarmers,thelumpsumcontribu–
tionsnowgrantedareintendedtoensurethattheexaminations
requiredforanadequateandeffectivemedicaltreatmentduring
pregnancyandafterconfinementareundergone.Thereforethepresent
referenceinparagraph7toalumpsumasacontribution "towards
confinement expenses"isnotjustifiedeventhoughtherehas"beenno
changeasregardsits"beinga"benefitinkindwithinthemeaningof
Regulation1408/71.Thelumpsumcontributionisgrantedinconjunc­
tionwiththebenefitinkindof"medicaltreatment"andthepresent
amendmentseekstoreflectthischange.
1.2.(b)AnnexVC.paragraph10ofRegulation1408/71
IntheFederalRepublicofGermanysince1stJuly,1977thelaw
curbingthecostofhealthinsurancehasenteredintoforce(Kranken–
versicherungs –Kostendampfungsgesetz ).Asaresulttheinternalrules
forfinancialequalization betweenGermanhealthinsuranceinstitu­
tionsinthesicknessinsuranceschemeforpensionershavebeenchanged
andthereisnowaneedtomodifytheaccountingprocedureand
financialequalization amongtheGermaninstitutions incaseswhere
theyhaveprovidedbenefitsinkindonbehalfoftheinstitutions of
otherMemberStatesandwherethecostsofsuchbenefitsarerequired
toberefundedinalumpsumincompliancewithArticle95ofRegulac­
tionNo574/72.
TheadditionatAnnexVC.paragraph10seekstomeetthatneed}it
isadevicetomeettheinternalaccountingproceduresoftheFederal
RepublicofGermany.
Theamendmentsaffectneitherthepersonsinsurednortheinstitutions
oftheMemberStates.

1.3.(a)AnnexY.I,paragraph1ofRegulation1408/71
TheSocialSecurityAct,1975andtheSocialSecurity(NorthernIre­
land)Act,1975eachintroducednewterminologysoastodescribe
employedworkerswhowereinsuredtinderthoseActs.Thenewterminol­
ogyreferstosuchpersonsas"employedearners".Therehas,however,
beennosuchchangeunderthelegislation ofGibraltar.
3yup-datingreferencestonationallegislation,thepresentamend­
mentseekstofacilitate theidentification of"workers"insuredin
theUnitedKingdomschemesforthepurposesofCommunitysocial
securitylaw.
1.3.(b)AnnexV.I,paragraph2ofRegulation1408/71
Thepresententryatparagraph2isdesignedtoassistaworkerwho
hasbeenemployedinaMemberStateotherthantheUnitedKingdomto
takeaccountofsuchemploymentsoastosatisfytheUnitedKingdom's
qualifyingcontribution conditionsandtherebybenefitfromtheaward
ofcreditedcontributions inrespectofperiodsofincapacity,preg1-
nancyorunemployment undertheUnitedKingdomlegislationinforce
priorto1975*UndertheSocialSecurityAct,1975and"theSocial
Security(NorthernIreland)Act,1975»thesequalifyingcontribution
conditionsnolongerexistandtheparagraphhasnorelevancenow-
forBritishorNorthernIrelandlegislation.However,theparagraph
isstillvalidinthecontextofGibraltarlegislation andshouldbe
retainedbutamendedsoastoapplyonlytoGibraltar.

-4-
1.3.(c)AnnexV.I.paragraph4ofRegulation1408/71
Thepresentparagraph4wasinsertedsoastoprovideforthespecial
residenceconditionimposed "byNorthernIrelandlegislationinrelar-
tiontounemployment "benefit.Thatresidenceconditionwasnotrenewed
whentheSocialSecurity(NorthernIreland)Act,1975cameintoforcej
paragraph4isthereforenowotiose.
1.3.(d)AnnexV.I,paragraph5(nowrenumbered(4))ofRegulation1408/71
UnderUnitedKingdomlaw,theChildBenefitAct,1975andtheChild
Benefit(NorthernIreland)Order,1975provideforthereplacement
offamilyallowancesinGreatBritainandNorthernIrelandasfrom
4thApril,1977"byanew"benefitwhichiscalled"child "benefit".
ChildBenefitwasputintopaymentataratesimilartothatofthe
formerfamilyallowance "butunlikethatallowance,childbenefitis
nowpayableinrespectofthefirstchildalso.
ThefamilyallowanceschemeinGibraltarremainsunchanged.
Thequalifyingconditionsforchildbenefitdonotrequiretheplace
ofbirthofaworker,orofthechildrenordependentstobeinthe
UnitedKingdom.Inthisrespectthefamilyallowancelegislationof
Gibraltaristhesame.Paragraph5(a)ofAnnexVI.istherefore
nowotiose.
Although,generally,apersoncannotacquireentitlementtochild
benefitunlessheisinGreatBritainorNorthernIrelandandhas
beenthereformorethanastipulatedperiod(atpresent182days
inthepreceding52weeks),thislatterconditionisdeemedtobe

satisfiedifthepersonhasstartedworkasanemployedearnerand
intendstostayorresideinGreatBritainorNorthernIrelandfor
182consecutivedays(disregarding upto28daysoftemporaryab­
sence).Inthegeneralityofcasespersonswho"becomesubjectto
UnitedKingdomlegislation "byvirtueofRegulation1408/71will
satisfythe"presencetest"onthat"basis.Problemscanarise,how­
ever,forsmallercategoriesofpersons,forexample,seasonalworkers,
frontierworkersorotherworkerswho,byvirtueofRegulation
1408/71,havebecomesubjecttoUnitedKingdomlegislation (e.g.
marinersonaBritishship);suchapersonmayfinddifficultyin
satisfyingtheabove-mentioned presencetestsoastobeableto
acquireentitlementtoUnitedKingdomchildbenefit.Similar
difficulties existunderGibraltarlegislation.
Theamendmentsproposeddeveloptheexistingparagraph5(b)which
relatesonlytothecaseofapersonwhoissubjecttoUnitedKing­
domlegislationbyvirtueofTitleIIofRegulation1408/71.Italso
extendstheprovisiontothecaseofanunemployedpersonwhoreturns
totheUnitedKingdominthecircumstances envisagedinArticle71(l)
(a)(ii)or(b)(ii)andwhoistherebyentitledtoUnitedKingdom
unemployment benefit.Suchpersonmightwellhavedifficultyin
satisfyingtheUnitedKingdomconditionsconcerning"theperiodof
presence"testintheUnitedKingdom.
Theunemployedpersonistherebyallowedtotreatperiodsofinsur­
anceoremploymenteffectedinotherMemberStatesaspresencewithin
theUnitedKingdomsoastosatisfytheperiodofpresencetest
imposedbyUnitedKingdomlegislationforthepurposeofreceiving
itschildbenefit.ThisruleisappliedbyanalogytoGibraltarfor
thepurposeofreceivingfamilyallowances.
1.3.(e)AnnexV.I,paragraph7(nowrenumberedparagraph6)ofRegulation
1408/71
Theamendmenttotherenumberedparagraph6(b)hasbeeneffected

-6-
forthereasonsalreadygivenatparagraph1.3(a)a"bove.Theamend­
mentispurelytechnicalandthepurportoftheprovisionwillremain
unaltered.
1.3.(f)AnnexY.I,paragraph11ofRegulation1408/71
Asfromthe2ndJanuary,1977thespecialarrangements setoutin
paragraph11forthecalculation ofUnitedKingdomearningsrelated
supplements werenolongerneeded.Earningsrelatedsupplementsare
nowpayableundernewUnitedKingdomlegislation "buttheyare
calculated "byreferencetoearningsfactorsandtheprovisions now
containedattherenumberedparagraph15ofAnnexV.I.ofRegulation
1408/71serveforthepurposeofdeterminingsuchfactors.
Paragraph11isthereforebeingrevoked(seeArticle1.3(c)ofthe
proposal).
1.3.(g)AnnexV.I,paragraph12(nowrenumbered10)ofRegulation1408/71
TheUnitedKingdomNationalInsuranceActandlegislation on
accidentsatworkwhicharementionedinthepresentparagraph12
havebeenrepealedandreplacedbytheSocialSecurityAct,1975and
theSocialSecurity(NorthernIreland)Act,1975*
Theparagraphhasbeenamendedsoastoreflectthisfactandalso
soastomakeprecisereferencetotherelevantGibraltarlegislation.
1.3.(h)AnnexV.I,newparagraph17ofRegulation1408/71
RetirementandWidows*PensionspaidundertheUnitedKingdom's
SocialSecurityAct,1975andSocialSecurity(NorthernIreland)Act,
1975areflat–rate;however,byvirtueofthatMemberState'sSocial
SecurityPensionsAct,1975andSocialSecurityPensions(Northern
Ireland)Order,1975provisionismadeforimprovedbenefitsin
respectofretirementandwidowhood.Asfrom6thApril,1979persons
whohavecontributedasemployedearners(andthewidowsofmenwho
havesocontributed )willbeabletoqualifyforanearningsrelated
pensioninadditiontotheflat–ratepensionreferredtoabove.

-7-
Entitlement totheadditionalpensionwillbeacquiredbythemeans
ofcontributions payableatanincreasedrateasfrom6thApril,1978.
Thatelementoftheretirementorwidow'spensionwhichisflat–rate
willbeknownas"thebasicoomponent"andthenewelement,the
earningsrelatedpension,willbeknownas"theadditionalcomponent".
Thesetwoelementswillconstitutetheemployedearner'stotal
prospective pensionentitlement undertheUnitedKingdomsocial
securityscheme.Thetwoelementssure,however,quitedistinctboth
inregardtotheirindividualcharacteristics andtotheirrespective
qualifyingconditions.Forinstancethebasiccomponentisflat-rate
whereastheadditional componentisearnings-related }againeach
elementmaybeawardedirrespective ofwhetherentitlementexists
fortheother.
Thedistinctionismoreapparentwhenoneconsidersthefundamental
differences inthequalifyingconditions.Thecontribution conditions
forthebasiccomponentarerelatedtotheannualearningsfactors
achievedbyanemployedearneroverthewholeofhisworkinglife,
ItshouldbestatedatthisjuncturethatintheUnitedKingdoman
employedearnerpays,bywayofsocialsecuritycontributions ,a
statutorily fixedpercentageofhisincomewhichfallsaboveacertain
thresholdandreferredtoasthelowerearningslimit(asfrom6th
April,1978theweeklylowerearningslimitis£17.50)andbelowa
certainceilingandreferredtoasanupperearningslimit(asfrom
6thApril,1978theweeklyupperearningslimitis£120).These
contributions areconvertedannuallyandbyreferencetotablesinto
earningsfactorswhicharethenenteredontheemployedearner's
insurancerecord.
Soastoobtainentitlementtothebasiccomponentretirementor
widow'spensionaminimumnumberofqualifyingyearsmusthavebeen
achieved(broadly,9/lOthsofthenumberofyearsbetweenage16and
thedateofretirementordeath,asappropriate),inwhichthe
earningsfactorhasreachedatleast52timestheweeklylower
earningslimit.Forinstanceasfrom6thApril,1978"theweeklylower
earningslimithasbeen£17.50andonanannualbasisthisrepresents
£910i.e.52x£17.50.For1978theemployedearner'searningsfactor
musthavereachedatleast£910.

-8-
Whenexaminingtheearningsfactorsachievedduringaninsurance
careerforthepurposeofentitlementtoabasicpension,theearnings
factorsachievedindifferentyearscannotbeaggregatedinorderto
makegoodadeficiencyintherecord.Thetestisthereforeconducted
onayearbyyearbasiscoveringvirtuallytheentireperiodofa
person'sinsurancecareer.
Ontheotherhand,entitlementtotheadditional componentwillbe
calculated byreferencetotheaggregated ajnountoftherevaluedan­
nualsurplusesinearningsfactorswhichtheemployedearnerhas
accumulatedoverhisbest20yearsofinsuranceasfrom6thApril,
1978*Forthispurposethesurplusinanyoneyearwillbetheamount
bywhichtheearningsfactorfortheyearexceedsthatwhichis
neededforthebasiccomponent.Therefore,forexample,themaximum
achievablesurplusintheyearbeginning6thApril,1978willbe
£5330.00,thisrepresents 52timestheweeklyupperearningslimit
forthatyeari.e.52x£120»£6240,lessthe£910referredto
above.
Theformulaeincorporatedinthepresentparagraph17(l)ofAnnexV.I.
andwhichweredevisedforthebasicflat-ratebenefitwillstillbe
applicableinrespectofthatelementofthepension}forthese
purposesthevalueofthecontributions deemedtobepaidinrespect
ofinsuranceorresidenceaccomplished asaworkerinanotherMember
Stateisimmaterial,providedthequalifyinglevelof52timesthe
weeklylowerearningslimitisreached.
However,itwouldbeinappropriate toapplytheformulaeinthepre­
sentparagraph17(l)totheadditionalcomponent,sincethevalue
ofthecontributions paidandwhichliesbetweenthequalifyinglevel
forabasicpensionand52timestheweeklyupperearningslimit
willbeavitalfactorinestablishing theamountoftheadditional
componenttowhichtheemployedearnerisentitled.
SoastoenabletheUnitedKingdomauthoritiestoapplyRegulation
1408/71inrelationtoclaimsforaprorataentitlementtotheaddi­
tionalcomponentpensioninrespectofretirementorsurvivors,parar-
graph17hasbeenadded.

-9-
Paragraph17(l)(a)and(b)implementArticle47(l)(b)ofRegular-
tionI408/7IwhenassessingthattheoreticalamountoftheUnited
Kingdomadditionalcomponentpensionwhichwould "bepayable "byvirtue
ofArticle46(2)(a)ofRegulation1408/71ifallperiodsaccom*-
plishedinallMemberStatessince6thApril,1978hadbeen
accomplished withintheUnitedKingdom.
Paragraph17(2)isdesignedtoensurethatwhenperiodsaccom­
plishedinanotherMemberStatehavebeenaggregatedwiththose
completedintheUnitedKingdom,theassessmentofthepensionis
effectedonlyonthebasisofperiodseffectedafter6thApril,
1978.Thisisrequiredbecausetheadditionalcomponentpensionis
onlypayableintheUnitedKingdominrespectofperiodsposterior
tothatdate.
1•3.(i)AnnexV.I.tamendmentstorenumberedparagraph15toRegulation
1408/71
Thefirstamendmenttotherenumberedparagraph15(l)isconsequen­
tialupontheadditionofthenewparagraph17.Itisintendedto
makeclearthatparagraph17andnotparagraph15istobeusedfor
thecalculation oftheUnitedKingdomadditional componentpension.
Theamendmenttoparagraph15(l)(b)resultsfromamodificationto
UnitedKingdomdomesticlegislation.Broadly,thepositionwasthat
upto6thApril,1978,oneoftheconditionsformostbenefitspay>-
ableunderthescheme(includingretirementandwidow'spension)
wasthattheearningsfactorsderivedfromcontributions mustnotbe
lessthanthelowerearningslimitfixedfortheyearinquestion
multipliedby50.Itisthisconditionwhichparagraph15(l)(b)
currentlyreflects.However,asfromtheabovedatetheSocial
Security(Pensions)Act,1975andtheSocialSecurityPensions
(NorthernIreland)Order,1975imposeafactorof52insteadof50
forthepurposesofretirementandwidows'pensions.Whilstthe
factorof50stillholdsgoodforotherbenefitstheprovisionneeds
amendingtocaterforpensions.Theproposedamendmentseekstomeet
thisneed.

10-
2.1.Annex5point3.tBelgium-France ,toRegulation 574/72
UndertheprovisionsofArticle92(l)ofRegulation1408/71contribu­
tionspayabletoaninstitution ofoneMemberStatemaybecollected
intheterritoryofanotherMemberState.Article92(2)ofthesame
RegulationallowsforagreementstobeconcludedbetweenMemberStates
tothisend.SuchagreementsarerequiredbyvirtueofArticle116(l)
ofRegulation574/72tobeenteredinAnnex5oftheaforesaidRegula­
tion.BelgiumandPranceconcludedsuchanagreementon3rdOctober,
1977and.Article2.1.recordsthatagreementinAnnex
2.2.Annex5point13..Denmark-Luxembourg ,toRégulation 574/72
UndertheprovisionsofArticles36(3)f63(3)and70(3)ofRegular-
tion1408/71andArticle105(2)ofRegulation574/72MemberStates
may,interalia,reachagreementforthewaivingofreimbursement of
costsincurredbythecompetentinstitution ofoneMemberStateon
behalfofanother.Theprovisionscitedcoverwaiveragreementsin
respectofcostsincurredforsickness,maternitybenefits,accidents
atwork,occupational diseases,unemployment benefitsandadministra­
tivechecksandmedicalexaminations .
UndertheprovisionsofArticles104(2)and105(2)ofRegulation
574/72wheresuchagreementsarereachedtheyrequiretobeenteredin
Annex5oftheaforesaidRegulation,
Article2.2recitesanagreementof19thJune,1978concludedbetween
DenmarkandLuxembourgandwhichprovidesforwaiverofreimbursement in
respectofcostsincurredforbenefitsinkindprovidedincasesof
sickness,maternityandaccidentsatworkandoccupational diseases,
andcostsofunemployment benefitandadministrative checksand
medicalexaminations .
2.3.Annex5tpoint16.,Germany-France ,toRegulation574/72
Article2.3recitesanagreementof14thOctober,1977concluded
betweenFranceandtheFederalRepublicofGermanyconcerningthe
waivingofreimbursement ofcostsofunemployment benefit.

-11-
2.4.Annex5point21.,Germany-United Kingdom,toRegulation574/72
Article2.4recitesanagreementof29thApril,1977concluded
"betweentheFederalRepublicofGermanyandtheUnitedKingdomconcern­
ingthewaivingofreimbursement ofcostsinrespectof"benefitsin
kindforsickness,maternity,accidentsatworkandoccupational
diseasesandofcostsofunemployment "benefitsandcostsofadminis­
trativechecksandmedicalexaminations .
2.5.Annex5point21.,Ireland-Netherlands ,toRegulation574/72
Article2.5recitesanexchangeoflettersdated28thJuly,1978and
10thOctober,1978betweenIrelandandtheNetherlandsconcerning
partialwaivingofreimbursement ofcostsinrespectofbenefitsin
kindforsickness,maternity,accidentsatworkandoccupational
diseases.
2.6.Annex6toRegulation574/72
TheobjectoftheproposedamendmentatArticle2.6isbothto
simplifyandspeeduptheprocedureforpaymentofarrearsandother
singlepaymentstobeneficiaries .Thepresentsituationisthatwhere
abeneficiaryisresidentintheterritoryofoneMemberStateandis
entitledtothepaymentofarrearsorasinglepaymentfromanother
MemberState,thatpaymentismadethroughoneoftheliaisonbodies
mentionedatAnnex4»
Thismethodisjustifiedincaseswhere,forthesettlementofclaims
forrefundsmadebytheMemberStatesofresidence,deductionsare
•madefromamountsofpensionspayablebytheinstitution ofanother
MemberState.SuchprocedureisprovidedforinArticle111ofRegula­
tion574/72.
However,wherenosuchrefundsaredue,thereseemsnovalidreason
forinsistingthatthepaymentbemadethroughthoseliaisonbodies
listedinAnnex4»Onthecontrary,suchinsistence maywellresult
indelayingpaymenttobeneficiaries becausechannelshavetobegone
throughwhichmightbeavoided.Alsoitmaybeaddedthattheextra
administrative workinvolvedinusingliaisonbodiesisunnecessary .

-12-
Forthesereasonsitisproposedthatthepossibility shouldexistof
obviatingtheneedtouseliaison "bodiesinsillcases.
2.7.Annex10C.Germany,paragraph7(a)»ofRegulation574/72
OntheoccasionoftheadhesionofthenewMemberStates,Regulation
574/72underwentaseriesofamendments.Thoseamendmentswere
includedinCouncilRegulation878/73(l)andatArticle1.35thereof,
interalia,thesectionheadinginrespectoftheFederalRepublicof
Germanywaschangedfrom"B.Germany"to"C.Germany".Duetoanover­
sightasimilarreferenceatparagraph7(a),secondcolumn,ofthe
newAnnex10C.wasnotalsocarriedout.Thepresentmodification con­
tainedatArticle2.7seekstorectifythissituation.Themodifica/-
tionconcernsonlytheFederalRepublicofGermany.
(1)O.J.No.L86of31.3.1973,page1