EN Official Journal of the European Union CE 33/237

(2004/C 33 E/243)

WRITTEN QUESTION E-2228/03

by Jules Maaten (ELDR) to the Commission

(2 July 2003)

Subject: Problems with transfrontier working

1. Is the European Commission aware of the problems that continue to exist with transfrontier working despite virtual completion of the internal market?

2. Is the European Commission aware that Netherlands legislation only allows pension rights built up abroad to be transferred to a Netherlands insurance company if the country of origin of the pension applies the same rules as the Netherlands?

3. Is the Commission also aware that in general the Member States have very different rules on pensions and that in practice it is therefore virtually impossible for workers to take their pension rights with them to another Member State?

4. Does the Commission share my view that practices of this kind are a serious obstacle to the mobility of labour in Europe?

5. Does the Commission intend to do anything to tackle these problems?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(12 August 2003)

The Honourable Member asks about problems connected with Dutch rules on pensions for frontier workers.

It is not clear to the Commission whether the pensions to which the Honourable Member refers are those provided by the social security system or are supplementary/private pensions.

In the field of social security pensions, Regulation (EC) No 1408/71 (1) sets out a system of co-ordination of social security systems for people who move between the Member States, so that they will not be disadvantaged because they have exercised their right to free movement. The social security contributions a person has paid in one Member State are not transferred to his or her social security contributions in another Member State. Rather, the Regulation provides that a person will receive an old age pension from each of the Member States where he or she has been insured for more than 12 months.

The Commission considers that the Community rules on the co-ordination of social security systems adequately protect people who move between the Member States. However, to improve this protection further, the Commission proposed a modernisation and simplification of Regulation (EEC) No 1408/71 in 1998, and it is hoped that this proposal will be adopted by the end of 2003.

Turning to supplementary pensions, the Commission is very much aware of the problems the present lack of ‘portability’ can create in the field of free movement of workers, a fundamental right under the Treaty. In this respect it should be recalled, that Council Directive 98/49/EC of 29 June 1998 safeguards the supplementary pension rights of employed and self-employed persons moving within the Community (2) only in certain circumstances and under certain conditions. The Commission is currently consulting the social partners on whether it would be appropriate to follow up this Directive with a second instrument aimed at the portability of supplementary pensions. Before considering what further action is appropriate and necessary, the Commission will await the outcome of this consultation.

In addition, contributors to supplementary or private pensions may encounter tax obstacles where their pension schemes are administered by an organisation in a Member State other than that in which they reside. The Commission issued a communication on these problems in 2001 (3). It is currently examining the compatibility with Community law of rules applied by a number of Member States.

(1) Last consolidated version: Council Regulation (EC) No 118/97 of 2 December 1996 amending and updating Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to 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 — OJ L 28, 30.1.1997.

(2) OJ L 209, 25.7.1998.

(3) COM(2001) 214 final of 19.4.2001.