WRITTEN QUESTION E-1471/97 by Cristiana Muscardini (NI) to the Commission (30 April 1997)

Subject: Pension rights of Italian workers abroad

Emigrant Italian workers have, in recent years, been hit by a series of restrictions which have drastically altered their social security protection.

The recently adopted financial law introduced provisions which worsened the difficult economic situation of Italian workers abroad by raising from five to ten years the period of contributions for entitlement to a minimum pension.

Will the Commission draw up a directive aimed at a comprehensive reform of pension arrangements for Community workers employed in a country other than their country of origin by providing for:

1. incorporation of the nominal pension, obtained through the aggregation mechanism, into the minimum pension, in accordance with EU requirements;

2. the granting to Italian workers abroad of incorporation into the minimum pension on the same terms as workers resident in Italy;

3. revision of the mechanism for calculating pensions on an international basis through proper re-evaluation of contributions paid;

4. the introduction of social benefits for elderly Italian citizens resident abroad in a situation of serious need?

Answer given by Mr Flynn on behalf of the Commission (26 May 1997)

1. The Commission would like to draw the Honourable Member's attention to the fact that Community legislation ((Regulation (EEC) No 1408/71 and No 574/72, as amended and updated by Regulation (EC) No 118/97 (OJ L 28 of 30.1.1997). )) in the field of social security is aimed only at coordinating the Member States social security schemes, not at harmonising them.

As the Court of Justice has repeatedly pointed out ((See for example: Case 161/91 - Van Munster - Judgement of 5 October 1994 - ECR 1994 I, p. 4661. )), it is up to the Member States to determine the structure and nature of their social security systems. There are still differences between the schemes, in terms of both the conditions for granting benefits and the amount of benefit paid, because of differences in the aims of the individual countries, but the principles laid down in the EC Treaty are adhered to, in particular the principles of equality of treatment and non-discrimination by virtue of nationality.

2. As regards the first question, concerning the inclusion of the 'integrazione al minimo' benefit (a benefit guaranteeing an income equivalent to the statutory minimum wage) in the calculation of the nominal pension, the Honourable Member's attention is drawn to the fact that a question concerning the application of Article 46(2) of Regulation (EEC) No 1408/71 was recently referred to the Court of Justice for a preliminary ruling ((Case C 132/96 - Sunco/INPS - OJ C 180 of 22.6.1996 )). In this case, the Court has to determine whether the benefit in question should or should not be taken into account in the calculation of the Italian pension.

3. As regards the re-evaluation of contributions paid, the Commission considers that this is a matter solely for the Member State in question.

4. As regards payment of the 'integrazione al minimo' and 'assegno sociale' (social benefit) to persons not resident in Italy, it is important to note, firstly, that these benefits come under both insurance and social assistance (non-contributory benefits of mixed type). Consequently, they are within the scope of Regulation (EEC) No 1408/71 but are governed by a specific coordination system. Notwithstanding the export rule provided for in Article 10 of Regulation (EEC) No 1408/71, these benefits are paid solely within the territory of the Member State in which the beneficiary is resident, provided that they are included in Annex II (b) of Regulation (EEC) No 1408/71, as is the case for the 'integrazione al minimo' benefit. However, the 'assegno sociale' is not currently included in this Annex.