Proposal for a Council Regulation (EC) on coordination of social security systems
Date: 1998-12-21
Institutions: European Commission
Subjects: administrative cooperation, coordination of EMU policies, free movement of persons, social security legislation, social-security harmonisation

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels, 21.12.1998 
COM(1998) 779 final 

98/0360 (CNS) 

Proposal for a 

COUNCIL REGULATION  (EC) 

on coordination  of social security  systems 

(presented by the  Commission) 

Explanatory  Memorandum 

GENERAL  COMMENTS 

Community  legislation  on social  security is a sine qua non  for  exercising  the  right  to  free 
movement  of  persons.  Only  by  ensuring  that  persons  moving  within  the  Community  do 
not  suffer  disadvantages  in their  social  security  rights will this freedom  guaranteed  by the 
Treaty be of real  and tangible value. However,  it is quite clear that  the existing  secondary 
legislation  on  social  security  does not,  in  any  sense,  aim  to  replace  the  different  national 
social  security  systems;  those  systems  are  a  result  of  longstanding  traditions,  deeply 
rooted  in  national  cultures  and  preferences.  Therefore,  this  Community  legislation 
contains  no  harmonisation  measures.  There 
indeed,  no  need  for  any  such 
harmonisation;  the  necessary  guarantees  for  free  movement  of  persons  can  be  achieved 
adequately  and  efficiently  by other  means.  This  does  not  mean,  however,  that  a Member 
State's regulations on social security are such as to exclude direct application of the Treaty 
provisions other than those relating to the free movement  of persons. 

is, 

Given  the  aim  of  free  movement  of  persons,  the  appropriate  and  effective  way  of 
achieving this goal is through coordination of the national systems. In other words, it is up 
to  every  Member  State  to  decide  whom  to  insure  and  how  to  insure;  the  Member  State 
must  also  decide  what  benefits  are  given  and  under  what  conditions.  Therefore,  the 
existing  Community  coordination  does  not  introduce  new  types  of  benefits  nor  does  it 
replace  national  rules.  What  it  does  is  establish  certain  common  rules  and  principles  to 
ensure that  application  of the different  national  systems  does not  adversely  affect  persons 
exercising their right to freedom  of movement of persons. In simple terms, the objective of 
the  Community  rules  is  to  ensure  that  a  person  who  has  exercised  his/her  freedom  to 
move  within  the  Community  is  not  placed  in  a  worse  position  than  a  person  who  has 
always resided  and worked  in a single Member State. 

Community  provisions  on the  coordination  of  social  security  provisions  date  from  1971, 
when  Council  Regulation  1408/711 was adopted.  Since that  date  the Regulation  has been 
amended  and updated  on numerous occasions; it has had to  adapt  to take into account not 
only developments  at Community level, including interpretations  of the Court  of Justice of 
the European  Communities,  but  also  changes  in legislation  at  national  level.  Such  factors 
play  their  part  in  making  the  Community  coordination  rules  complex  and  lengthy.  The 
need  for  a general  overhaul  of the  legislation  was  recognised  as  early  as  1992 when  the 
Edinburgh  Council  appealed  for  simplification  of  the  coordination  rules:  in  its  1997 
Communication:  "An  Action  Plan  for  Free  Movement  of  Workers"2,  the  Commission 
recognised  that  modernisation  and simplification  of the rules on the  coordination  of social 
security  schemes  were  essential  to  make  them  "more  efficient  and  user-friendly."  That 
Communication  undertook  to  present  before  the  end  of  1998  a  proposal  to  reform  and 
simplify  Regulation  No  1408/71.  Finally,  the  rules  on  social  security  coordination  were 

1  Council Regulation (EEC) No 1408/71 of 14 June 1971  on the application of social security schemes 
to employed persons, to self-employed persons, and to members of their families moving within the 
Community. 

2  COM(97) 586 final. 

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chosen  as  part  of  the  second  phase  of  the  SLIM  (Simpler  Legislation  for  the  Single 
Market) exercise. 

This proposal  represents, therefore,  the  fruit  of an exercise which has been the  subject  of 
long and intense  reflection. 

Existing  Community  coordination  is  in  line  with  the  aim  of  one  of  the  freedoms  in  the 
internal  market,  i.e.  free  movement  of  persons.  However,  national  regulations  relating  to 
social  security  still  fall  under  the  matters  covered  when  it  comes  to  applying  the  EC 
Treaty as a whole including free  movement  of goods and the freedom  to provide services. 

SIMPLIFICATION 

Before  examining  the  proposal  it  makes  sense  to  summarise  briefly  the  main  differences 
between it and Regulation No  1408/71. 

As was indicated  earlier,  the  main  driving  force  behind  revision  of the  coordination  rules, 
as  established  under  Regulation  1408/71,  was  a  desire  to  make  the  legislation  less 
complex  and  more  manageable  -  in  other  words  the  intention  was  not  to  completely 
rewrite  a system  which  had  worked  relatively  well  for  more  than  25  years,  but  rather  to 
simplify  things. Thus, the first  thing to  be said  about the differences  between  the  proposal 
and  Regulation  No  1408/71  is  that  the  text  of  the  proposal  is  considerably  shorter  -
reduced by two-thirds as compared to the Regulation. However, it is not just  a question of 
slimming  down.  An  immense  effort  has  been  undertaken  to  simplify  and  streamline 
concepts,  rules  and  procedures.  Nevertheless,  in  terms  of  its'  guiding  principles  and 
essential elements, the coordination  system remains the same. 

There are three major  changes which will lead to new rights and new obligations, viz.: 

•  The  proposed  Regulation  will  apply  to  all  persons  who  are  covered  by  the  social 
security  legislation  of  a  Member  State.  The  term  "person"  replaces  the  current 
enumeration  of "employed  and  self-employed  persons",  "members  of their  family"  and 
"refugees".  This means that the coordination  system will cover persons who  are not, as 
such, part of the "active" population but who, for certain areas, are affiliated  to  a social 
security  scheme  and  who  may  exercise  their  right  to  free  movement  (students). 
Furthermore,  adoption  of  that  term  means  that  the  Community  provisions  will  cover 
third-country  nationals  who  are  affiliated  to  a  social  security  scheme  in  any  Member 
State. In this latter regard  it is to be underlined,  on the one hand, that the  third-country 
national will be someone covered  under  a national  social security  scheme -  the right  of 
such  coverage,  however,  remains  the  domain  and jurisdiction  of  the  national  system. 
On the  other  hand,  the  provision  would  in no way give to  a third-country  national  the 
right  of free  movement  within the  Community;  all that  is provided  for  is that  should  a 
third-country  national  move  to  another  Member  State,  that  person  would  enjoy  the 
rights of the proposed  Regulation. 

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It  should  be noted  that  the  Commission  has  already  presented  proposals  on these  two 
matters3.  It  should  also  be  noted  that  Article  8a  was  added  as  a  legal  basis  to  take 
account  of such extensions to the scope of Regulation No  1408/71. 

•  The  proposal  extends  the  list  of  social  security  branches  subject  to  the  coordination 
arrangements  to  include  new  forms  of  benefit,  such  as  pre-retirement  benefits. 
Generally  speaking,  pre-retirement  benefits  are  benefits  provided  from  a  specified  age 
to workers made redundant  or voluntarily leaving their job, the aim being to  encourage 
them  not  to  return  to  the job  market.  This  extension  has  also  been  the  subject  of  a 
proposal aimed at amending Regulation No  1408/714. 

•  The  proposal  changes  a  number  of  provisions  regarding  unemployment  without, 
however,  changing  the  basic  structure  of  the  existing  system.  At  present,  an 
unemployed person going to another Member  State to look for a job there is entitled  to 
continued  payment  of his unemployment  benefits  by the  competent  State  for  a period 
of  three  months  from  the  date  of  his  departure.  This  entitlement  is  subject  to  certain 
conditions.  The  person  involved  must  have  been  registered  with  the  employment 
services  of  the  competent  Member  State  for  at  least  four  weeks  after  becoming 
unemployed  and  he must  register  with  the  employment  services  of  the  State  in which 
he is staying within seven days of the date on which he left  the  competent  State.  These 
obligations  are  retained  in  the  proposal.  However,  the  duration  of  entitlement  to 
benefits  has been extended to six months. 

It  is  estimated  that  this  period  of  time  is  more  in  keeping  with  labour  market  reality. 
Furthermore,  such  a  period  is  consistent  with  the  approach  adopted  in  the  recent 
Commission  proposal  amending  Directive  68/3605 pursuant  to  which job-seekers  have 
a right of residence in a Member  State for  a period  of six months.  This proposal  is, for 
its part, based  on the case law of the Court  of Justice. 

The other new feature  in the proposal  is that  an unemployed  person will have the right 
to  receive  - under  the  same  conditions  as  nationals  - benefits  other  than  cash  benefits 
provided  by  a  Member  State  and  whose  purpose  is  to  facilitate  access  to  work. 
Adherence to the conditions  stipulated  by the Member  State providing  such benefits  is 
a condition for retention of the cash benefits  from  the competent  State. 

THE SCOPE OF  COORDINATION 

Given  that  the  core  objective  of the  proposed  regulation  is to  protect  persons  exercising 
their  right  to  free  movement  within  the  Community,  the  essential  elements  of  the 
Community provisions are thus intended to: 

• 

lay down who is covered by the coordination rules -  the persons covered; 

As regards extending  the scope of Regulation  No  1408/71 to students,  see proposal  COM(91) 528 
final, and as regards nationals of third countries see COM(97) 561. 

COM(95) 735 final. 

Council Directive 68/360/EEC of 15 October  1968 on the abolition  of restrictions on movement and 
residence  within  the  Community  for  workers  of  Member  States  and  their  families:  OJ  L  257, 
19.10.1968. for proposal see COM(1998) 394 final. 

• 

specify  which matters are covered by the rules -  the matters covered; 

•  clarify  what legislation applies -  conflict  of laws. 

Persons covered 

As stated earlier,  the proposed  Regulation will apply to  all persons who  are or  have been 
covered  by the social  security legislation  of any of the Member  States. This is in line with 
the  principle  underlying  the  aim  of the  legislation,  which  is to  protect  the  social  security 
rights of people making use of free  movement.  Since this right  is not  limited to the  active 
population,  it  seems  appropriate  that  if  a  person  has  an  acquired  right  under  a  social 
security  scheme  in  a Member  State,  the  said  right  should  not  be  lost  when  that  person 
goes to another Member State. 

Matters  covered 

The proposed  Community provisions apply to  all the classic branches of social  security, as 
defined  by  ILO  Convention  No  102  (sickness  and  maternity,  accidents  at  work, 
occupational  diseases,  invalidity  benefits,  death  grants,  unemployment  benefits,  family 
benefits).  The  list,  however,  is  not  exhaustive  and  the  Community  provisions  can  be 
applied  to  any  new  forms  of  benefit  that  may  arise.  It  should  be  noted  that  it  does  not 
matter  whether  or  not  the  benefits  are  financed  by  contributions  or  other  means,  nor 
whether  they  are  paid  by  employers,  social  insurance  institutions  or  by  the  public 
administration. 

Conflict  of laws 

In  order  to  avail  of  the  right  to  free  movement  it  is  essential  for  the  person  involved  to 
know  in  which  country  he/she  will  be  insured.  The  proposed  Community  provisions 
provide  detailed  rules  which  determine  in  every  situation  which  country's  national 
legislation  applies. These detailed rules are based  on two simple principles: 

•  The insured person is subject to the legislation of only one Member  State at a time. 

•  The  insured  person  is  insured  in  the  Member  State  where  he/she  pursues  a 
professional  activity  {lex loci  labor is).  However,  in the  case  of  insured  persons  who 
are no longer  active or who do not  pursue a professional  activity, the applicable law is 
that of the State of residence. 

Special  rules  regarding  the applicable  legislation  have  been  drawn  up  for  posted  workers 
and for  persons working in more than one Member  State. 

TFIE PRINCIPLES  OF COORDINATION 

It has been  stressed that the Community  provisions,  as they  already  exist  and  as proposed 
here,  are  simply  coordination  rules,  establishing  common  rules  and  principles  to  ensure 
that  the  different  national  systems  do  not  adversely  affect  those  exercising  their  right  to 
move  and  stay within the Community.  The  common  rules  and  principles  supply  solutions 
to  problems  which  could  arise  given  the  differences  in  national  systems,  particularly  as 
regards conditions of entitlement to benefits  and residence rules. 

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The  bedrock  of coordination  is the principle  of  equality,  i.e.  that  a person  residing  in the 
territory  of one Member  State shall be subject  to  the same obligations  and  enjoy  the same 
benefits  under the legislation  of any Member  State  as the nationals  of that  Member  State. 
That  principle  is  reinforced  by  three  necessary  elements  so  that  equality  operates  in 
practice: 

•  assimilation  of the facts; 

•  aggregation of periods; 

• 

retention of rights. 

Assimilation of the  facts 

Assimilation  (i.e.  equivalence)  of the  facts  basically  means that  situations  which  occur  in 
other  Member  States  are  to  be  treated  as  though  they  took  place  in  the  Member  State 
whose legislation applies. 

Aggregation of periods 

Aggregation  of  periods  (a  principle  specifically  mentioned  in  Article  51  of  the  Treaty) 
means that  periods of insurance,  employment  or residence  completed  under  the  legislation 
of one Member  State are taken  into  account,  where  necessary,  for  entitlement  to  benefits 
under the legislation of another Member State. 

Retention  of rights 

This principle ensures, again in accordance with Article  51 of the Treaty,  that  benefits  can 
be  paid  to  persons  residing  in  the  territory  of  any  Member  State;  it  is  sometimes  also 
referred  to  as the right to export  benefits,  in that  benefits  are paid by the relevant  Member 
State independently  of the residence of the person  affiliated. 

JUSTIFICATION  OF  THE  PROPOSAL  FROM  THE  SUBSIDIARITY  POINT  OF 
VIEW 

The  proposal  is  in  line  with  the  two  principles  underlying  subsidiarity  as  anchored  in 
Article 3b, i.e. necessity and  proportionality. 

As  stressed  earlier,  Community  action  in the  form  of  coordination  measures  is  necessary 
to  guarantee  that  the  right  to  free  movement  laid  down  in  the  Treaty  can  be  exercised 
effectively  and  wholly.  Without  such  coordination,  freedom  of  movement  would  run  the 
risk  of  being  inoperable,  since  people  would  be  unlikely  to  make  use  of  this  right  if it 
meant,  in essence, losing social security rights already acquired  in another Member State. 

Legislative  action  is  clearly  necessary  because  it  is vital,  for  coordination  purposes,  that 
common  rules  and  principles  be  established 
-  both 
administrations  and  affiliated  members  - to  know  their  respective  rights  and  obligations. 
To  this  end,  a  regulation  is  the  most  appropriate  form  of  legislative  instrument  since  it 
accords  rights  to  individuals  directly.  However,  it  should  be  stressed  that  the  proposed 
Regulation  is not  a harmonisation  measure  and  does  not  go  beyond  what  is  necessary  to 
make for  effective  coordination.  The proposal is basically aimed at  simplifying  the existing 
arrangements. 

those  concerned 

to  allow 

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APPLICATION  IN THE EUROPEAN  ECONOMIC  AREA COUNTRIES 

The free  movement  of persons  is one  of the  aims and  principles  of the  Agreement  on  the 
European  Economic Area (EEA) which  came into force  on  1  January  1994.  In Chapter  1 
of  Section  Three  -  regarding  freedom  of  movement  of  persons,  services  and  capital  -
Articles  28,  29  and  30  are  devoted  to  free  movement  for  employed  persons  and  self-
employed  persons.  More  particularly,  Article  29  is  based  on  the  principles  set  out  in 
Article  51  of  the  Treaty  concerning  social  security  for  people  moving  within  the 
Community.  Consequently,  this proposal for  a regulation must  - if adopted  - be applied  in 
the EEA member countries. 

SPECIFIC  COMMENTS  ON THE ARTICLES 

General  Provisions 

Article 1 

Article  1  deals  with  the  persons  covered  by  the  proposed  legislation.  The  basis  of  its 
coverage  is anyone who  is insured  in accordance  with the  legislation  of  a Member  State. 
Thus,  a  third-country  national  will  be  covered  by  this  legislation  provided  he  is  insured 
under the relevant  scheme of a Member  State. 

Article 2 

This  article  deals  with  the  matters  covered  by  the  proposed  Regulation:  all  the  classic 
branches  of  social  security  as  defined  under  ILO  Convention  No  102  are  covered. 
However,  the  list  is  not  exhaustive  and  is  intended  to  be flexible enough  to  cover  new 
forms  of social  security  schemes  as they arise. The list, for  example, now covers  one new 
form  of social security -  pre-retirement  benefits. 

Article 3 

Article 3 sets out  one  of the fundamental  principles underpinning  the proposed  legislation 
-  equality of treatment.  This has a twofold  meaning in this context:  (i) a person  residing in 
one  Member  State  shall  enjoy  the  same  benefits  and  be  subject  to  the  same  obligations 
under the legislation  of any Member  State  as a national  of that  State,  and  (ii)  assimilation 
of the facts is guaranteed. 

Article 4 

Article  4  sets  out  the  other  fundamental  principle  -  what  is  known  as  "aggregation  of 
periods",  i.e.  that  periods  of  insurance,  employment  or  residence  completed  under  the 
legislation of one Member  State are taken into account in all other Member States. 

Article 5 

This article sets out  the general  principle  of the retention  of a right  even when  residing  in 
another Member State. 

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Article 6 

This article governs the relationship between the proposed  Regulation  and any bilateral or 
multilateral  conventions  between  Member  States  concerning  social  security  - 
the 
proposed  legislation replaces any such conventions. 

Article 7 

This  article  defines  certain  major  terms  used  in the  proposed  Regulation.  Of special  note 
are the following  definitions: 

•  The term 'insured person'  designates any person who fulfils  the conditions for  benefits 

as required under the legislation of a Member State. 

•  The term  'member  of the family'  under  this proposal  means the  persons  who  possess 

rights derived from the person covered by a social security system. 

•  The term  'pre-retirement  benefits',  which  covers benefits  awarded  to workers  ceasing 
or reducing  a professional  activity  at  a specified  age  and  before  receipt  of  an  old-age 
pension. 

Article 8 

Article  8  sets out  the  rules  determining  the  applicable  legislation.  Essentially,  the  general 
rules  are,  firstly,  that  persons  are  subject  to  the  legislation  of  one  Member  State  only; 
secondly, that a person pursuing a professional  activity in a Member  State is subject  to the 
legislation  of  that  State  (lex  loci  laboris),  and,  lastly,  that  persons  not  pursuing  a 
professional  activity are subject  to the  legislation  of the Member  State where they reside. 
It  is to  be  noted  that  persons  who  have  the  right  to  a  social  security  benefit  by virtue  of 
pursuit  of  a  professional  activity -(sickness/unemployment  benefits)  and  who  no  longer 
pursue  such  activity,  are nevertheless  considered  to  be continuing  to  pursue  it.  This  is to 
distinguish  the temporarily  inactive from  those who  are not  active or who  have ceased  all 
activity. 

Article 9 

This article deals with  the case  of a person  employed  in one Member  State but  posted  to 
another Member  State; in such a case, the posted  person  remains subject  to the  legislation 
of the first Member  State  provided  the  anticipated  period  of posting  does  not  exceed  12 
months. 

Article 10 

Article  10 governs the situation where a person pursues activities in two or more Member 
States.  Here  the  basic  rule  is that  the  person  is  subject  to  the  legislation  of  the  State  of 
residence  provided  the  activities  pursued  there  are  substantial.  Otherwise,  the  applicable 
legislation is that  of the Member  State where the employer is situated. 

Article 11 

This  article  clarifies  the  fact  that  voluntary  schemes  are  not  covered  by the  rules  on  the 
applicable legislation  set out in the foregoing  articles. 

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Article  12 

This article confirms that the rules on the applicable legislation  apply equally to diplomatic 
staff,  with the exception that persons having the nationality  of the State of posting can opt 
for the legislation of that State. 

Article 13 

This article  gives Member  States the  possibility  to  derogate,  in certain  specific  cases and 
in  the  interests  of  the  person  involved,  from  the  conflict  rules  set  out  by  the  proposed 
Regulation. 

Special provisions  concerning the various categories of  benefit 

Sickness and  maternity 

Article  14 

This  article  deals  generally  with  the  situation  where  a  person  affiliated  for  sickness  or 
maternity benefits  in one Member  State  resides  in another  Member  State.  The basic rules 
are that  the person  and the members  of his family  are entitled  to benefits  in kind  from  the 
Member  State  of  residence  on  behalf  of  the  competent  Member  State  (the  State  of 
affiliation)  and  to  cash benefits  from  the  competent  Member  State  in accordance  with  its 
legislation. 

Article 15 

This article  concerns  the  persons  referred  to  under  Article  14 who,  for  whatever  reason, 
are staying in the competent  State; it is proposed  that they shall have an automatic  right to 
benefits  in kind in the said State. 

Article  16 

This article  governs the  situation  of an insured  person  who  is staying in a Member  State, 
other than the Member  State where he is insured  and  other than where he resides: in such 
a  situation,  the  right  is  to  urgent  benefits  in  kind  from  the  Member  State  where  he  is 
staying  according  to  its  legislation  and  at  the  expense  of  the  competent  Member  State 
(where he is affiliated).  Cash benefits  are paid by the Member State of  affiliation. 

Article 17 

Article  17 provides for  extended  rights  for  certain  persons  staying outside  the  competent 
Member  State. Thus, those pursuing a professional  activity,  students, unemployed  persons 
seeking work,  and pensioners, as well as their  spouses and dependent  children  are entitled 
to  benefits  in  kind  from  the  Member  State  where  they  are  staying  as  though  they  were 
residents  Such  benefits  are  charged  to  the  competent  Member  State.  Cash  benefits  are 
provided by the competent Member State (where  affiliated). 

Article 18 

This  article  provides  that  persons  may  go  to  a  Member  State  other  than  the  competent 
State  for  treatment,  subject  to  their  having  authorisation,  but  does  not  affect  the 

provisions  of  the  EC  Treaty  regarding  the  free  movement  of  goods  and  the  freedom  to 
provide services. 

Article 19 

This  article  deals  with  the  calculation  of  cash  benefits.  Where  the  applicable  legislation 
provides  that  cash  benefits  are  to  be  calculated  by  reference  to  average  earnings  or 
average contribution  or  standard  earnings,  such sums are to  be determined  exclusively by 
reference  to earnings or contributions under the applicable legislation. 

Article 20 

Article  20  provides  that  pensioners  receive  benefits  in  kind  in  accordance  with  the 
legislation  of the Member  State where they  reside.  The  costs  of such benefits  are  divided 
between  all  of  the  Member  States  paying  a  pension,  proportionally  to  the  periods 
completed  in those Member  States and to the extent  that  the person  involved  would  have 
had  the  right  to  such  benefits  had  he  resided  in  the  territory  of  each  of  those  Member 
States. 

Article 21 

This  article  deals  with  the  rights  of  a  pensioner  and  the  members  of  his  family  to  cash 
benefits  -  these  rights  are  awarded  in  accordance  with  the  provisions  of  this  proposed 
regulation  concerning  invalidity.  Thus, each  of the Member  States  in which  the  pensioner 
was  affiliated  contributes  to  the  costs  of  the  cash  benefits  proportionally  to  the  periods 
completed. 

Article 22 

Article 22  provides that  a pension  claimant  and  the  members  of his  family  are  entitled  to 
cash benefits  and benefits  in kind in accordance with Articles 20 and  21. 

Article 23 

This article provides that where, in the Member  State of residence,  members  of the  family 
have an independent  right to benefits  in kind,  that  right  is to  be  subordinate  to  the  rights 
derived  from  the  insured  person.  Thus,  the  benefits  are  given  by  the  Member  State  of 
residence  on  behalf  of  the  Member  State  where  the  person  is  insured  by  virtue  of  a 
professional  activity. 

Article 24 

This article deals with the special case of substantial benefits in kind. 

Article 25 

This article contains special rules for aggregating periods for  seasonal workers. 

Article 26 

Article 26 deals with reimbursement  between  competent  institutions. The basic rule is that 
benefits  in  kind  are  fully  refunded.  An  Implementing  Regulation  will  lay  down  the 
modalities.  Such reimbursement will be on the basis of actual expenditure. 

-9-

Invalidity 

Article 27 

This  article  states  that  invalidity  benefits  are  to  be  paid  in  accordance  with  the  rules  on 
old-age  pensions.  This  essentially  means  that  where  a  person  has  been  subject  to  the 
legislation  of two  or  more  Member  States,  benefits  will be paid  in accordance  with  those 
legislations proportionally to the periods completed under each legislation. 

Article 28 

Article 28 provides that,  for  the purposes  of entitlement  to  invalidity  benefits,  periods  for 
which  the  person  was  entitled  to  incapacity  benefit  under  the  legislation  of  another 
Member State shall be taken into account. 

Article 29 

This  article  concerns  aggravation  of  an  invalidity  for  which  the  person  involved  receives 
benefits  under  the  legislations  of  two  or  more  States.  In  this  instance,  the  benefits 
corresponding  to the new degree of invalidity are provided  by the same institutions  and in 
the  same proportions  if the  person  has  not  been  subject  to  the  legislation  of  other  States 
after  having been granted  the benefits.  However,  if after  having been  granted  the  benefits 
under  two  or  more  legislations,  the  person  was  subject  to  the  legislation  of  other  States, 
the  benefits  corresponding  to  the  new  degree  of  invalidity  will  be  provided  b>  all  the 
institutions  concerned  proportionally  to  the  periods  completed  under  each  of  the  said 
legislations. 

Article 30 

This  article  deals  with  determining  which  is  the  responsible  institution  when  invalidity 
benefits  are resumed  after  suspension or when they are renewed  after  withdrawal. 

Article 31 

This article  concerns  invalidity  benefits  awarded  under  legislation  which  provides  for  the 
conversion  of such benefits  into old-age  benefits. 

Old-age and  survivor's  pensions 

Article 32 

Article  32(1)  states  the  basic  rule  in  relation  to  old-age  pensions,  namely  that  every 
Member  State  where  a  person  was  insured  pays  an  old-age  pension  when  the  insured 
person  reaches  pension  age.  Article  31(2)  provides  that  if  a  pensioner  does  not,  at  any 
given  time,  fulfil  all  the  conditions  laid  down  by  all  the  Member  States,  those  Member 
States  where  the  conditions  are  fulfilled  must  take  into  account  the  periods  completed 
under all the legislations.  Article 31(4) provides for  a recalculation  to  be  carried  out  each 
time the conditions of a legislation are  fulfilled. 

Article 33 

This article sets out  the conditions for  taking  account  of periods of insurance  or  residence 
completed  under  various  legislations.  Essentially,  the  competent  institution  has  to  take 

-10-

account  of all periods  completed  under  the  legislation  of another  Member  State,  whether 
under a general or a special scheme. 

Article 34 

Article 34 deals with the award  of benefits  and covers two  situations. The first situation is 
where  the  entitlement  to  a  benefit  is  satisfied  without  having  to  aggregate  periods  of 
insurance  from  other  Member  States.  In  such  cases,  the  competent  institution  calculates 
the  amount  of  the  pension  due  (a)  under  the  provisions  of  its  own  legislation  and  then 
(b) proportionally to the periods completed under other legislations. 

The  second  situation  is where the  entitlement  can  only  be  satisfied  by the  aggregation  of 
periods of insurance. In this situation, the competent  institution has to do two  calculations 
-  it calculates the theoretical  amount  of the benefit  to which  a person would  be entitled if 
all  periods  had  been  completed  under  the  national  legislation,  and  then  it  calculates  the 
actual amount  by reducing the theoretical  amount  proportionally to the periods  completed 
under other legislations. 

In  both  situations  it  is  provided  that  once  the  double  calculation  has  been  done,  the 
competent  institution should then pay the higher sum. 

Article 35 

This article sets out the general provisions applicable in the case of overlapping  of  benefits 
of the  same  or  different  kind.  The  basic  principle  is that  anti-overlapping  rules  under  the 
legislation  of  one  Member  State  may  be  invoked  even  where  the  relevant  benefits  were 
acquired  in another Member State. 

Article 36 

Article 36 lays down  special provisions applicable in the case of overlapping  of benefits  of 
the  same  kind  acquired  under  the  legislation  of  two  or  more  Member  States.  Here  the 
basic rule is that  such rules are not  applicable to  a pro-rata  calculation  but  can  be applied 
to  a  benefit  wholly  acquired  under  national  legislation  if  it  is  a  benefit  acquired 
independently  of  periods  of  insurance  or  residence  or  it  is  a  benefit  determined  on  the 
basis of a credited  period. 

Article 37 

This  article  deals  with  special  provisions  in  the  case  of  overlapping  of  one  or  more 
national benefits  with one or more benefits  of a different  kind when two  or more Member 
States  are concerned.  The basic rule is to  avoid  a negative  impact  on the insured  person. 
Thus, in the case of a wholly "national" calculation,  the overall reduction is divided by the 
number  of  relevant  benefits.  In the  case  of  a  pro-rata  calculation,  the  benefits  subject  to 
the overlapping  rules  shall be taken  into  account  in line with the relative proportion(s)  of 
the periods of insurance/residence completed under the various legislations. 

Article 38 

Article 38 lays down additional provisions for  calculating benefits.  Thus, when  calculating 
the relevant  period, the rule is that where the total  duration  of the periods completed  in all 
Member  States exceeds a maximum period required under the legislation of the competent 

-11-

State,  that  State  takes  into  account  only  the  maximum  period.  As  for  calculating  the 
amount,  the  competent  Member  State  uses  its  own  basis  of  calculation  in  respect  of  the 
periods completed under the legislation of the Member  States. 

Article 39 

This article deals with the award of a supplement where the total of benefits  due under the 
legislations  of the various Member  States  does  not  amount  to  the minimum laid  down by 
the legislation of the Member  State where the insured person resides. 

Article 40 

Article 40 provides  that  any increase  in benefits  due to  the  cost  of living must  be applied 
directly  to  the  benefit  without  any  recalculation.  On  the  other  hand,  any  change  in  the 
method of calculating benefits does require recalculation. 

Accidents  at work/occupational  diseases 

Article 41 

Article  41  provides  that  the  rules  on  sickness  and  maternity  benefits  apply  mutatis 
mutandis to benefits  for  accidents at work  or occupational  diseases. A special provision is 
made  as  regards  an  insured  person  staying  in  a Member  State  other  than  the  competent 
Member  State -  such a person is entitled to benefits  in kind from  the Member  State where 
he  is  staying  in  accordance  with  the  legislation  and  at  the  expense  of  the  competent 
Member  State. 

Article 42 

This  article  deals  with  the  situation  where  the  insured  person  has  been  exposed  to  the 
same risk  in  several  Member  States:  in  such  a  situation,  the  principle  is that  the  benefits 
are  awarded  in  accordance  with  the  legislation  of  the  last  State  where  he  pursued  the 
relevant  activity. 

Article 43 

Article 43  deals with the calculation  of cash  benefits:  when  a legislation  provides  that  the 
calculation  of cash  benefits  is based  on  average  earnings  or  on  standard  earnings,  it  shall 
exclusively  take  account  of  the  average  earnings  or  standard  earnings  for  periods 
completed under its legislation. 

Article 44 

This  article  deals  with  the  cost  of  transporting  the  victim  of  an  accident  at  work  or 
occupational  disease to his place of residence. 

Article 45 

Article  45  covers  aggravation  of  an  occupational  disease.  If,  since  the  initial  award,  the 
person  involved  has  not  undertaken  in  another  Member  State  an  activity  likely  to  cause 
such  a disease,  then  the  competent  Member  State  must  cover  the  aggravation.  If,  on the 
other  hand,  the  person  had  undertaken  such  activity  in  another  Member  State,  then  the 
first  Member  State  meets  the  costs  of  the  benefit  without  taking  into  account  the 

-12-

aggravation  and  the  second  Member  State  pays  a  supplement  equal  to  the  difference 
between the benefits  due after  the aggravation and those due prior thereto. 

Articles 46 and 47 

These  articles  lay  down  a number  of  special  rules  to  deal  with  the  particular  features  of 
certain legislations. 

Unemployment  benefits 

Article 48 

This  article  contains  specific  rules  on  aggregation  regarding  unemployment.  Basically,  it 
provides for  mixed  aggregation,  i.e.  it  allows periods  of unemployment  completed  in one 
Member  State  to  be  aggregated  with  periods  of  residence  or  insurance  completed  in 
another Member  State. 

Article 49 

This  article  lays  down  the  rules  for  calculating  unemployment  benefits.  It  states  that  if 
calculation  of benefits  is based  on the previous wage or  salary, this must  be the  last  wage 
or salary received by the person involved  in the competent  Member  State. However,  if the 
person  worked  in  the  said  Member  State  for  less  than  four  weeks  before  becoming 
unemployed,  the  earnings  are  calculated  -  for  the  purposes  of  paying  benefits  -  on  the 
basis  of  the  usual  earnings  in that  Member  State  for  an  equivalent job  last  performed  in 
another Member  State. 

Article 50 

This  article  concerns  unemployed  persons  going  to  a  Member  State  other  than  the 
competent  one,  and  it  lays  down  in  particular  the  conditions  and  limits  for  retention  of 
unemployment  benefits.  There  are  (i)  that  the  person  involved  remains  available  to  the 
competent  Member  State's  employment  services  for  at  least  four  weeks  after  becoming 
unemployed,  and  (ii)  that  within  seven  days  of  his  departure  he  registers  with  the 
employment  services  in  the  country  in  which  he  is  looking  for  a job.  The  payment  of 
unemployment  benefits  is limited to a period of six months starting from  the date on which 
the person ceased to be available to the competent  State's employment  services. 

-13-

The  new  element  in the  proposal  is that  an unemployed  person  will  have the  right,  in the 
State to which he has gone in order to  seek work,  to receive - under  the same  conditions 
as  its  own  nationals  -  benefits  other  than  cash  benefits  whose  purpose  is  to  facilitate 
access to work. 

Article 51 

This article mainly deals with unemployed  frontier  workers; they have the right  to  choose-
between  making  themselves  available  to  the  employment  services  of  the  State  of  last 
employment  or  the  employment  services  of  the  State  of  residence.  However,  in  keeping 
with the general rule, the applicable legislation is that of the State of last  employment. 

Pre-retirement  benefits 

Article 52 

This  article  sets  out  the  aggregation  rules  in respect  of pre-retirement  benefits  which  are 
the normal ones - that periods completed  under the legislation of other Member  States are 
taken into account  by the competent Member State. 

Family  benefits,  benefits  for dependent  children  and  for  orphans 

Article 53 

This article  sets out  the  rules in relation  to  overlapping  of rights to  the  relevant  benefits. 
Where  concurrent  rights  to  family  benefits  exist  in  several  Member  States  for  the  same 
child (for  example, there is a right  in Member  State A because one of the parents  pursues 
a professional  activity there  and  a right  in Member  State B by reason  of the  residence  of 
the  other parent), it is the Member  State  whose  legislation  gives the highest  amount  that 
pays. The costs are then divided by the number  of States concerned,  limited to the amount 
defined  by each State's legislation. 

Article 54 

Article  54  provides  that  family  benefits  are  paid  to  the  person  actually  maintaining  the 
family members. 

Special  Benefits 

Article 55 

This article deals with certain special benefits  which often  simultaneously form  part  of the 
social  security  system  and  the  social  assistance  scheme  because  of  their  special  nature 
(non-contributory,  in kind and either linked to  a particular  economic and  social  context  or 
to  special  protection  for  disabled  persons).  These  benefits  are  an  exception  to  the 
residence  rule  -  they  cannot  be  exported,  but  periods  of  residence  in  another  Member 
State must be taken into  account. 

-14-

Administrative  Commission for the Coordination  of Social  Security  Systems 

Articles 56 and 57 

These two  articles deal with the composition  and tasks of the Administrative  Commission 
for  the Coordination  of Social  Security  Systems.  The Commission,  composed  of Member 
State  representatives,  will  (i)  deal  principally  with  all  administrative  questions  and 
questions  of  interpretation  arising  from  this  proposed  legislation  and  (ii)  'develop 
coordination between Member  States in the social security  field. 

Article 58 

This article deals with the tasks  of the  Technical  Commission  on Data-Processing,  a sub 
committee of the Administrative  Commission. 

Miscellaneous  provisions 

Articles 59 to 69 

These articles are all of a technical or formal  nature, viz.: 

•  Article 59 deals with cooperation between the competent  authorities. 
•  Article 60 deals with the protection  of personal data. 
•  Article 61 deals with electronic data-processing. 
•  Article  62  concerns  the  funding  of  certain  activities,  in  particular  those  aimed  at 
improving the flow of information  to citizens and to players in the social security  field. 
•  Article  63  extends  tax  exemptions  or  reductions  accorded  by  one  Member  State  to 

similar documents required to be produced  from  another Member State. 

•  Article 64 deals with the admissibility  of claims, declarations or appeals submitted  in a 

Member State other than the competent  State. 

•  Article  65  provides  that  medical  examinations  required  under  the  legislation  of  one 

Member  State may be carried out in another Member  State. 

•  Article  66  deals  with  the  transfers  from  one  Member  State  to  another  of  sums  of 

money due in accordance with the proposed  regulation. 

•  Article 67 -  no comment. 
•  Article 68 deals with collection of contributions  and recovery  of benefits  provided  but 

not due. 

•  Article 69 deals with the rights of institutions against liable third parties. 

Transitional  and final provisions 

Article 70 

This  article  concerns  transitional  provisions  governing  application  of  the  Regulation.  It 
does not establish any rights in respect  of periods prior to its date of application;  however, 
rights  being  acquired  -  periods  of  insurance,  employment  or  residence  completed  under 
the legislation  of a Member  State prior  to  its application  - are taken  into  consideration  to 
determine the rights acquired pursuant to the Regulation. 

It  should  be  noted  that  pursuant  to  the  Regulation  it  is  possible  that  a  person  may  be 
subject  to  the  legislation  of a Member  State'other  than  the  one to  whose  legislation  he is 

-15-

subject  pursuant  to  Regulation  No  1408/71.  This  would  be  the  case,  for  example,  for 
unemployed  frontier  workers  who,  pursuant  to  Regulation  1408/71,  are  subject  to  the 
legislation of the State of residence, whereas pursuant to this proposal they are subject to 
the legislation  of the State of last employment.  The rule is that  such persons will not be 
subject  to the legislation  of such other Member  State unless they make a corresponding 
request to the competent institution pursuant to Regulation No 1408/71. 

Article. 71 

This article announces an Implementing Regulation which will enter into force at the same 
time as this  Regulation.  It  should  be noted  that  this  approach  is comparable  to  that  of 
Regulation  No  1408/71,  which  was  also  accompanied  by  an Implementing  Regulation6 
dealing  with  the  administrative  procedures  and  other  practical  arrangements  under  the 
coordination system set up by Regulation No 1408/71. 

Articles 72 and 73 

Article 72 concerns the date on which the Regulation  enters into force,  while Article 73 
declares Regulations Nos 1408/71 and 574/72 to be repealed. 

Council  Regulation  (EEC)  No  574/72  of  21  March  1972  fixing  the  procedure  for  implementing 
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. 

•16-

PROPOSAL FOR A 

COUNCIL REGULATION (EC) 

on coordination of social security systems 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles 8a, 51 and 235 thereof, 

Having  regard  to  the  Commission  proposal  presented  after  consultation  with the  social 
partners and the Administrative Commission on Social Security for Migrant Workers, 

Having regard to the assent of the European Parliament, 

Having regard to the opinion of the Economic and Social Committee, 

Whereas the rules for  coordination  of national  social security  legislations fall  within the 
framework  of free  movement for persons and should contribute towards improving their 
standard of living and conditions of employment; 

Whereas, due to the large differences  existing between national legislations in terms of the 
persons covered, it is preferable to lay down the principle that the Regulation applies to all 
persons who are or have been subject to the social security legislation of a Member State; 

Whereas  it  is necessary  to  respect  the  special  characteristics  of  national  social  security 
legislations and to draw up only a system of coordination; 

Whereas it is necessary, within the framework  of such coordination,  to guarantee within 
the Community equality of treatment under the various national legislations to the persons 
involved; 

Whereas  the  coordination  rules  must  guarantee  that  persons  moving  within  the 
Community and their dependants and their survivors retain the rights and the advantages 
acquired and in the course of being acquired; 

Whereas these objectives  must be attained  in particular by aggregation  of all the periods 
taken into account under the various national legislations for the purpose of acquiring and 
retaining  the  right  to  benefits  and  of  calculating  the  amount  of  benefits,  and  by  the 
provision of benefits for the various categories of persons covered by the Regulation; 

Whereas,  within  the  Community,  it  is not  in  principle justified  to  make  social  security 
rights dependent on the place of residence of the person involved, nevertheless, in specific 
cases, in particular as regards special benefits linked to the economic and social context of 
the person involved, the place of residence could be taken into account; 

-17-

Whereas  it  is  necessary  to  subject  persons  moving  within  the  Community  to  the  social 
security scheme of only one single Member  State in order to avoid overlapping  of national 
legislations applicable and the complications which could result  therefrom; 

Whereas, with  a view to guaranteeing  the  equality  of treatment  of all persons occupied in 
the territory  of a Member  State as effectively  as possible, it is appropriate to  determine  as 
the legislation  applicable,  as a general  rule, that  of the Member  State in which the  person 
involved pursues his activity as an employed  or self-employed  person; 

Whereas, in specific  situations which justify  other criteria of applicability, it is necessary to 
derogate from  this general rule; 

Whereas,  in  the  field  of  sickness  and  maternity  benefits,  persons  living  or  staying  in  a 
Member State other than the competent Member  State should be afforded  protection; 

Whereas  the  specific  position  of  pension  claimants  and  pensioners  and  the  members  of 
their families  makes it necessary to  have  provisions  governing  sickness insurance  adapted 
to this situation; 

Whereas  for  invalidity  benefits  a  system  of  coordination  should  be  drawn  up  which 
respects  the  specific  characteristics  of  national  legislations,  in  particular  as  regards 
recognition of invalidity and aggravation thereof; 

Whereas  it  is  it  necessary  to  devise  a  system  for  the  award  of  old-age  benefits  and 
survivors' benefits  where the person  involved  has been  subject  to the legislation  of  one  or 
more Member States; 

Whereas  there  is  a need  to  determine  the  amount  of  a  pension  calculated  in  accordance 
with  the  method  used  for  aggregation  and  pro-rata  calculation  and  guaranteed  by 
Community  law where  the  application  of ^national  legislation,  including  rules  concerning 
reduction,  suspension or withdrawal, is less favourable  than the aforementioned  method; 

Whereas,  to  protect  migrant  workers  and  their  survivors  against  excessively  stringent 
application  of  the  national  rules  concerning  reduction,  suspension  or  withdrawal,  it  is 
necessary to include provisions strictly governing the application of such rules; 

Whereas,  in  respect  of  benefits  for  accidents  at  work  and  occupational  diseases,  rules 
should  be  laid  down,  for  the  purpose  of  affording  protection,  covering  the  situation  of 
persons residing or staying in a Member  State other than the competent Member State; 

Whereas it is necessary to include death grants in sickness benefits  in kind; 

Whereas, in order to permit mobility  of persons under improved  conditions, it is necessary 
to  ensure  closer  coordination  between  the  unemployment  insurance  schemes  and  the 
unemployment  assistance schemes of all the Member States; 

Whereas  it  is. therefore  particularly  appropriate,  in  order  to  facilitate  search  for 
employment  in  the  various  Member  States,  to  grant  to  an  unemployed  worker,  within 
precise  limits,  the  unemployment  benefits  provided  for  by  the  legislation  of  the  Member 
State to which he was last  subject; 

•18-

Whereas,  in  order  to  avoid  unwarranted  loss  of  benefits,  there  is  a  need  to  lay  down 
specific  coordination rules for pre-retirement  benefits; 

Whereas,  in  order  to  avoid  unwarranted  overlapping  of  benefits,  there  is  a  need  to  lay 
down  rules  of priority  in the  case  of  overlapping  of  rights  to  family  benefits  pursuant  to 
the  legislation  of  the  competent  State  and  pursuant  to  the  legislation  of  the  country  of 
residence of the members of the family; 

Whereas  it  is  necessary  to  establish  an  Administrative  Commission  consisting  of  a 
government  representative  from  each  of  the  Member  States,  charged  in  particular  with 
dealing  with  all  administrative  questions  or  questions  of  interpretation  arising  from  the 
provisions  of  this  Regulation,  and  with  promoting  further  cooperation  between  the 
Member States; 

Whereas  the  development  and  use  of  telematic  services  for  the  exchange  of  information 
has been found  to require the creation  of a Technical  Commission,  under  the  aegis  of the 
Administrative  Commission  on  Social  Security  for  Migrant  Workers,  with  specific 
responsibilities in the field of data-processing; 

Whereas  the  use  of telematic  services  for  exchanging  data  between  institutions  requires 
provisions  guaranteeing  that  the  documents  exchanged  by  electronic  means  are  accepted 
as equivalent to paper documents; 

Whereas  such  exchanges  are  to  be  carried  out  in  accordance  with  the  Community 
provisions  on the protection  of natural  persons with  regard  to  the processing  of  personal 
data; 

Whereas  it  is  necessary  to  lay  down  special  provisions  which  correspond  to  the  special 
characteristics  of the national  legislations  in order  to  facilitate  the  application  of the rules 
of coordination; 

Whereas,  in accordance with the  call for  simplification  made  at  the Edinburgh  Council  of 
December  1992  and  in  the  interests  of  transparency  and  readability,  it  is  appropriate  to 
simplify the coordination rules; 

Whereas it is necessary to  repeal Council  Regulation  (EEC) No  1408/71 of  14 June  1971 
on  the  application  of  social  security  schemes  to  employed  persons,  to  self-employed 
persons and  to members of their families  moving within the Community7 by introducing a 
new Regulation; 

OJL  149. 5.7.1971. p. 2. 

-19-

Whereas this is in accordance with the provisions of the third paragraph of Article 3b of 
the Treaty; 

HAS ADOPTED THIS REGULATION. 

-20-

TITLE  1 

GENERAL PROVISIONS 

-  Article  J 

Persons covered 

This Regulation  shall apply to persons who are or have been  subject  to the  social  security 
legislation of one or more Member States, as well as to the members of their family  and to 
their survivors. 

Article 2 

Matters covered 

1. This Regulation  shall apply to all social security legislations concerning the following in 
particular: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

sickness; 

maternity; 

invalidity; 

old age; 

accidents at work  and occupational diseases; 

survival; 

death; 

unemployment; 

pre-retirement; 

the family. 

2.  This  Regulation  shall  apply  to  general  and  special  social  security  schemes,  whether 
contributory  or  non-contributory,  and  to  schemes  relating  to  the  obligations  of  an 
employer or  shipowner. 

3.  The  provisions  of Title  III  of this Regulation  shall  not,  however,  affect  the  legislative 
provisions of any Member State concerning a shipowner's obligations. 

4. This Regulation  shall not apply to social assistance. 

-21-

Article  3 

Equality of treatment 

1.  Subject  to  the  special  provisions  contained  in this  Regulation,  persons  residing  in  the 
territory of one of the Member  States and to whom this Regulation applies shall be  subject 
to the  same obligations  and  enjoy  the  same  benefits  under  the legislation  of  any  Member 
State as the nationals thereof. 

2. Any Member  State whose  laws, regulations  or  administrative  provisions  attribute  legal 
effects  to  the  occurrence  of  certain  facts  or  events  shall,  to  the  extent  necessary,  take 
account  of the  same facts  or  events  occurring  in any other  Member  State  as though  they 
had taken place in national territory. 

3. A benefit  accorded  under the legislation  of a Member  State shall, for  application  of the 
legislation  of  another  Member  State,  be  considered  to  be  a  benefit  accorded  under  the 
legislation of that latter Member  State. 

Article  4 

Aggregation  of periods 

The  competent  institution  of  a  Member  State  whose  legislation  makes  the  acquisition, 
retention or recovery of the right to benefits  conditional upon the completion of periods of 
insurance, employment  or residence  shall, to the extent necessary, take account  of periods 
of  insurance,  employment  or  residence  completed  under  the  legislation  of  any  other 
Member  State  as  though  they  were  periods  completed  under  the  legislation  which  it 
administers. 

Article  5 

Waiving of residence rules 

Subject  to  the  special  provisions  contained  in  this  Regulation,  a  benefit  due  under  the 
legislation  of one or more Member  States  or under this Regulation may not be refused  or 
subjected  to  any  reduction,  amendment,  suspension,  withdrawal  or  confiscation  on 
account  of  the  fact  that  the  beneficiary  resides  in  the  territory  of  a Member  State  other 
than that in which the institution responsible for  providing benefits  is located. 

Article  6 

Relations between this Regulation  and other coordination  instruments 

This Regulation shall replace any social security convention falling under its scope. 

2Z 

Article  7 

Definitions 

For the purposes of applying of this Regulation: 

(a) 
"activity  as  an  employed  person"  means  any  activity  considered  to  be  such  for 
application  of the  social  security  legislation  of the  Member  State  in whose  territory  such 
activity is pursued; 

"activity as a self-employed  person"  means  any  activity  considered  to  be  such  for 
(b) 
application  of the  social  security  legislation  of the  Member  State  in whose  territory  such 
activity is pursued; 

"seasonal  worker" means any person who goes to the territory  of a Member  State 
(c) 
other than the one in which he resides to  do work  there  of a seasonal  nature  on behalf of 
an undertaking or an employer of that  State for  a period which may on no account  exceed 
eight months if he stays in the territory of the said State for the duration of his work; work 
of a seasonal nature shall be taken to mean work  which is dependent  on the succession of 
the seasons and automatically recurs each year; 

"insured  person"  means  any  person  satisfying  the  conditions  required  under  the 
(d) 
legislation  of  the  competent  State  to  have  the  right  to  benefits,  taking  account  of  the 
provisions of this Regulation; 

(e) 

"member of the family" means: 

1. 

for  application of this Regulation,  except Chaptei  1 of Title III: 

any  person  with  derived  rights  and  defined  or  recognised  as  a  member  of  the 
family  or  designated  as a member' of the  household  by the legislation  under which 
the benefits  are provided; 

2. 

for  application of Chapter  1, Title III (sickness and maternity); 

"member  of  the  family"  means  any  person  with  derived  rights  and  defined  or 
recognised  as a member of the family  or  designated  as a member  of the household 
by the  legislation  of the Member  State  in which  such  persons  reside.  If  any  such 
person  is not  recognised  as such pursuant  to the legislation  of their residence, this 
term  also  covers  any  person  who  is  defined  or  recognised  as  a  member  of  the 
family  or  designated  as a memb er  of the  household  by the  legislation  of the  State 
competent for the person entitled to benefits. Where, however, the said legislations 
regard  as  a  member  of  the  family  or  a  member  of  the  household  only  a  person 
living under the same roof as the insured  person, this condition  shall be considered 
satisfied  if the person in question is mainly dependent  on that person. 

"residence"  means  the  place  where  a  person  habitually  resides  and  where  the 

(f) 
habitual centre of his interests is also located; 

(g) 

"stay" means temporary residence; 

23, 

(h) 
"legislation"  means,  in respect  of each Member  State,  laws, regulations  and  other 
statutory  provisions  and  all  other  implementing  measures  relating  to  the  social  security 
branches covered by Article 2(1). 

This term includes contractual provisions which have been the subject  of a decision by the 
public authorities rendering them compulsory or extending theif  scope. 

This  term  also  includes  the  social  security  conventions  concluded  between  two  or  more. 
Member  States  or  between  one  or  more  Member  States  and  one  or  more  States  not 
belonging to the European Union. 

(i) 
"competent  authority"  means,  in  respect  of  each  Member  State,  the  Minister, 
Ministers or other equivalent  authority  responsible for  social security  schemes  throughout 
or in any part of the territory of the State in question; 

(j) 

"Administrative Commission" means the commission referred  to in Article 56; 

"institution"  means,  in  respect  of  each  Member  State,  the  body  or  authority 

(k) 
responsible for  administering all or part of the legislation; 

(1) 

"competent institution" means: 

(i) 
application for  benefit; 

the  institution  with  which  the  person  involved  is  insured  at  the  time  of  the 

or 

(ii) 
the  institution  from  which the  person  involved  is  entitled  or  would  be  entitled  to 
benefits if he or a member or members of his family  resided in the territory  of the Member 
State in which the institution is situated; 

or 

the  institution  designated  by  the  competent  authority  of  the  Member  State 

(iii) 
concerned; 

or 

(iv) 
in  the  case  of  a  scheme  relating  to  an  employer's  obligations  in  respect  of  the 
benefits  set  out  in  Article  2(1),  either  the  employer  or  the  insurer  involved  or,  in  default 
thereof,  the body or authority designated  by the competent  authority of the Member  State 
concerned; 

(m) 
"institutions  of the place of residence" and  "institutions  of the place of stay" mean 
respectively  the  institution which is competent  to  provide  benefits  in the  place where  the 
person  involved  resides  and  the  institution  which is  competent  to  provide  benefits  in the 
place where the person involved is staying, in accordance with the legislation  administered 
by  that  institution  or,  where  no  such  institution  exists,  the  institution  designated  by  the 
competent  authority of the Member State concerned; 

"competent  State"  means  the  Member  State  in  whose  territory  the  competent 

(n) 
institution is situated; 

* 

(o) 
"period  of  insurance"  means  periods  of  contribution,  employment  or  activity  as a 
self-employed  person  as  defined  or  recognised  as  periods  of insurance  by  the  legislation 

24A 

under  which  they were  completed  or  considered  as completed,  and  all periods  treated  as 
such, where they are regarded by the said legislation as equivalent to periods of insurance; 

(p) 
"period  of  employment"  or  "period  of  activity  as  a  self-employed  person"  mean 
periods so defined  or recognised  by the legislation under which they were  completed,  and 
all periods treated  as such, where they are regarded by the said legislation  as equivalent  to 
periods of employment  or to periods of activity as a self-employed  person; 

"periods  of  residence"  mean  periods  so  defined  or  recognised  by  the  legislation 

(q) 
under which they were completed  or considered  as completed; 

(r) 
"pension"  covers  not  only  pensions  but  also  lump-sum  benefits  which  can  be 
substituted  for  them  and  payments  in  the  form  of  reimbursement  of  contributions  and, 
subject to the provisions of Title III, revaluation increases or supplementary  allowances; 

(s) 

"pre-retirement  benefits" mean: 

all cash benefits,  other than an early old-age benefit,  provided to wholly unemployed  workers 
from  a specified  age until the age at which they qualify for an old-age pension or a non-reduced 
early retirement pension, the receipt of which is not conditional upon the person involved being 
available to  the  employment  services  of the  competent  State;  early  old-age  benefit  means  a 
benefit  provided  before  normal  pension  age  is  reached  and  which  either  continues  to  be 
provided once the said age is reached or is replaced by another old-age benefit; 

"death  grants"  mean  any  one-off  payment  in  the  event  of  death  exclusive  of  the 

(t) 
lump-sum benefits referred  to in subparagraph (r). 

TITLE II 

DETERMINATION  OF THE LEGISLATION  TO WHICH A PERSON IS 
SUBJECT 

Article 8 

General rules 

1. Persons  to  whom  this  Regulation  applies  shall be  subject  to  the  legislation  of  a  single 
Member  State only.  Such legislation shall be determined  in accordance with the provisions 
of this Title. 

2.  For  application  of  this  Title,  persons  entitled  to  a benefit,  other  than  an  invalidity  or 
old-age benefit,  by virtue of pursuing an activity  as an employed  or  self-employed  person, 
shall be deemed to be pursuing the said activity. 

3.  For  application  of this Title, work  done  on board  a vessel flying  the flag  of  a  Member 
State shall be deemed to be work done in the territory of the said Member  State. 

4. Subject  to Articles 9 to  13: 

25 

(a)  a  person  pursuing  an  activity  as  an  employed  or  self-employed  person  in  the 
territory of a Member  State shall be subject  to the legislation of that  State; 

(b) civil servants and personnel treated  as such shall be subject  to the legislation of 
the Member  State to which the administration employing them is subject; 

(c).a  person  called  up  or  recalled  for  service  in  the  armed  forces  or  for  civilian 
service of a Member State shall be subject  to the legislation of that State; 

(d)  any  person  other  than  those  mentioned  in  sub-paragraphs  (a)  to  '(c)  shall  be 
subject  to  the  legislation  of  the  Member  State  in  whose  territory  they  reside, 
without  prejudice  to  other  provisions  of  this  Regulation  guaranteeing  them 
benefits pursuant to the legislation of one or more other Member States. 

Article  9 

Special  rules in the event of posting 

1. A person pursuing  an activity as an employed  person in the territory  of a Member  State 
and who goes to the territory  of another  Member  State to  perform  work  on behalf of his 
employer who habitually employs personnel in the territory of the first Member  State shall 
continue  to  be  subject  to  the  legislation  of  that  Member  State,  provided  that  the 
anticipated duration of that work does not exceed twelve months and that he is not  sent  to 
replace another person who has completed  his term of posting. 

2.  A person  normally  pursuing  an  activity  as  a  self-employed  person  in the territory  of a 
Member  State  and  who  goes  to  perform  the  same  activity  in  the  territory  of  another 
Member  State  shall  continue  to  be  subject  to  the  legislation  of  the  first  Member  State, 
provided that the anticipated  duration of such work  does not exceed  12 months. 

Article  10 

Pursuit of activities in the territory  of two or more Member States 

1. A person normally pursuing an activity as an employed  person in the territory  of two  or 
more Member  States shall be  subject: 

to the legislation  of the Member  State in whose territory he resides if he pursues a 

(a) 
substantial activity in that  territory; 

to  the  legislation  of  the  Member  State  in whose  territory  the  registered  office  or 
(b) 
place of business of the undertaking  or employer  employing him is situated,  if he does not 
pursue substantial activities in the territory of the Member  State where he resides. 

2. A person normally pursuing an activity as a self-employed  person in the territory  of two 
or more Member  States shall be  subject: 

to the legislation  of the Member  State in whose territory  he resides if he pursues a 

(a) 
substantial activity in that  territory; 

26/ 

to the legislation  of the Member  State  in the territory  where the  centre  of interest 
(b) 
of his activities is located,  if he does not pursue a substantial  activity in the territory  of the 
Member  State where he resides. 

3.  A person who  normally pursuer  an activity  as an employed  person  and  an activity  as a 
self-employed  person  in  the  territory  of  different  Member  States  shall  be  subject  to  the 
legislation  of the Member  State in whose territory  he pursues  an  activity  as  an  employed 
person or, if he pursues such an activity in the territory of two  or more Member  States, to 
the legislation determined in accordance with paragraph  1. 

4. A person who is employed as a civil servant  or personnel treated  as such and insured in 
a  special  scheme for  civil servants in one Member  State  and  who  simultaneously  pursues 
an activity as an employed person and/or as a self-employed  person in the territory  of one 
or  more  other  Member  States  shall  be  subject  to  the  legislation  of  the  Member  State  in 
which he is insured  as a civil servant or personnel treated  as such. 

5.  A person  referred  to  in the  preceding  paragraphs  shall be treated,  for  the  purposes  of 
applying  the  legislations  determined  in  accordance  with  these  provisions,  as  though  he 
were pursuing  all his activities as an employed  or  self-employed  person  in the territory  of 
the Member  State concerned. 

Article 11 

Rules concerning voluntary  insurance or optional  continued  insurance 

1.  Articles  8  to  10  shall  not  apply  to  voluntary  insurance  or  to  optional  continued 
insurance  unless,  in  respect  of  one  of  the  branches  referred  to  in  Article  2(1),  only  a 
voluntary scheme of insurance exists in a Member State. 

2.  However,  in  respect  of  invalidity,  old  age  and  death  (pensions),  the  person  involved 
may join the voluntary  or optional continued  insurance scheme of a Member  State, even if 
he  is  compulsorily  subject  to  the  legislation  of  another  Member  State,  insofar  as  such 
overlapping  is  explicitly  or  implicitly  allowed  pursuant  to  the  legislation  of  the  first 
Member  State. 

Article 12 

Special rules regarding personnel  employed  by diplomatic  missions and consular 
posts, and auxiliary staff of the European  Communities 

1.  The  provisions  of  Article  8(4)(a)  shall  apply  to  personnel  employed  by  diplomatic 
missions and consular posts and to the private domestic staff  of agents of such missions or 
posts. 

2.  However,  the persons  covered  by paragraph  1 who  are nationals  of the Member  State 
which  is the  accrediting  or  sending  State  may  opt  to  be  subject  to  the  legislation  of  that 
State.  Such  right  of option may be  exercised  afresh  at  the  end  of each  calendar  year  and 
shall not have retrospective  effect. 

27/ 

3. Auxiliary staff of the European  Communities may opt to be subject  to the legislation  of 
the Member  State in whose territory they  are employed,  to  the legislation  of the Member 
State  to  which  they  were  last  subject  or  to  the  legislation  of  the  Member  State  whose 
nationals they are, in respect  of provisions  other  than those relating to  family  allowances, 
the  granting  of  which  is  governed  by  the  scheme  applicable  to  such  staff.  This  right  of 
option,  which  may  be  exercised  once  only,  shall  take  effect  from  the  date  of  entry  into 
service. 

Article  13 

Exceptions to the provisions of Articles 8 to 12 

1. Two  or  more  Member  States, the  competent  authorities  of these  States  or  the  bodies 
designated  by these  authorities may by common  agreement  provide  for  exceptions  to  the 
provisions of Articles  8 to  12 in the interest  of certain  categories  of persons  or  of certain 
persons. 

2.  The recipient  of a pension due under the legislation  of a Member  State  or  of pensions 
due under the legislation  of several Member  States who resides in the territory  of another 
Member  State  may  at  his  request  be  exempted  from  application  of the  legislation  of  the 
latter  State  provided  that  he  is not  subject  to  that  legislation  on  account  of  pursuing  an 
activity as an employed or self-employed  person. 

TITLE III 

SPECIAL PROVISIONS RELATING TO THE VARIOUS CATEGORIES OF 
BENEFIT 

CHAPTER 1 

SICKNESS AND  MATERNITY 

Article  14 

Residence in a Member State other than the competent  State 

A person  insured  against  the  risk  of  sickness  or  maternity,  or  the  members  of  his  family 
who reside in the territory of a Member State other than the competent  State, shall receive 
in the State of residence benefits  in kind, including death, grants, provided,  on behalf of the 
competent  institution,  by the institution  of the  place  of  residence,  in  accordance  with  the 
provisions  of the  legislation  administered  by that  institution  as though  they  were  insured 
pursuant  to  the  said  legislation.  They  shall  also  receive  in the  State  of  residence  the  cash 

28/ 

benefits  provided  by  the  competent  institution  in  accordance  with  the  provisions  of  the 
legislation which it administers. 

Article 15 

Stay in the competent  State although  residence is situated  in a Member State other 
than the competent  State 

The  persons  referred  to  in  Article  14  may  also  obtain  benefits  in  the  territory  of  the 
competent  State.  Such  benefits  shall  be  provided  by the  competent  institution  and  at  its 
own expense, in accordance with the provisions  of the legislation  of that  State,  as though 
the person involved resided in it. 

Article 16 

Stay outside the competent State - General rules 

Without  prejudice  to  the  more  favourable  provisions  contained  in  Article  17,  a  person 
insured  against  the risk  of sickness or maternity,  and the members of his family  staying in 
a  Member  State  other  than  the  competent  State,  shall  receive  immediately  necessary 
benefits  in kind,  including  death  grants,  provided,  on behalf  of the  competent  institution, 
by the institution  of the place of stay,  in accordance  with the provisions  of the  legislation 
which it  administers,  as  though  they  were  insured  pursuant  to  the  said  legislation.  Such 
persons  shall  also  receive  the  cash  benefits  provided  by  the  competent  institution  in 
accordance with the provisions of the legislation which it administers. 

Article 17 

Stay outside the competent State - Special rules 

1.  A  person  pursuing  an  activity  as  an  employed  or  self-employed  person  in  a  Member 
State  other  than  the  competent  State,  as  well  as  his  spouse  and  his  dependent  children 
accompanying him, shall be covered by the provisions of Article  14 as though they resided 
in the territory  of the  State where the  activity as an employed  or  self-employed  person  is 
pursued  or  whose  flag  is  flown  by  the  vessel  on  board  which  the  worker  pursues  his 
activity as an employed or self-employed  person. 

2. A person who stays in a Member  State other than the competent  State to study there or 
receive vocational training leading to a qualification  officially  recognised  by the authorities 
of a Member  State,  and  his  spouse  and  dependent  children  accompanying  him during  his 
stay, shall be covered  by the provisions of Article  14 during the stay in the territory  of the 

29/ 

Member  State where  such person  is  studying  or  in training  as though  they  resided  in the 
territory of that latter Member  State. 

3.  A person  to  whom  the  provisions  of  Article  50  apply,  and  his  spouse  and  dependent 
children  accompanying  him,  shall  be  covered  by  the  provisions  of  Article  14  as  though 
they resided in the territory of the Member  State in which the said person is seeking a job. 

4. A person who, before becoming the recipient  of a pension, made use of the possibilities 
provided  for  under  Articles  14  and  15,  and  the  members  of  his  family,  shall  retain  such 
rights after  retirement. 

Article  18 

Authorisation  to receive appropriate treatment outside the competent  State 

A person who  is authorised  by the  competent  institution  to  go to the territory  of  another 
Member  State to  receive there the treatment  appropriate  to his condition  shall receive the 
benefits  in kind  provided,  on behalf of the  competent  institution,  by the  institution  of the 
place of stay, in accordance with the provisions of the legislation it administers,  as though 
he  were  insured  pursuant  to  the  said  legislation.  The  authorisation  must  be  accorded 
where the treatment in question is among the benefits provided for by the legislation of the 
competent  State or in whose territory the person  involved  resides and if he cannot,  taking 
account  of his current  state of health  and the probable course of the illness, be given such 
treatment within the necessary time. 

Article  19 

Calculation  of cash  benefits 

1.  The  competent  institution  of  a  Member  State,  whose  legislation  stipulates  that  the 
calculation  of  cash  benefits  shall  be  founded  on  average  income  or  on  an  average 
contribution  basis,  shall  determine  such  average  income  or  average  contribution  basis 
exclusively  by  reference  to  the  incomes  confirmed  as  having  been  paid  or  contribution 
bases applied during the periods completed under the said legislation. 

2.  The  competent  institution  of  a  Member  State,  whose  legislation  provides  that  the 
calculation  of  cash  benefits  shall  be  based  on  standard  income,  shall  take  account 
exclusively  of  the  standard  income,  or  where  appropriate,  of  the  average  of  standard 
incomes for the periods completed under the said legislation. 

30, 

Article 20 

Pension recipients - benefits  in kind 

1. A recipient  of one  or more pensions  and the members  of his family  shall receive in the 
State  of residence benefits  in kind,  including  death  grants,  provided,  on  behalf  of  all the 
States paying a pension, by the institution of the place of residence, in accordance with the 
provisions of the legislation it administers  as though he were the recipient  of one or more 
pensions due under the said legislation alone. 

2.  The  cost  of the  benefits  shall be  divided  among  the  Member  States  paying  a  pension 
proportional to the periods completed in each Member  State, to the extent that the person 
involved would  have been  entitled  to benefits  pursuant  to  the legislation  of each Member 
State concerned if he resided in their territory. 

3.  Where  the  other  pensioners  insured  in  the  State  of  residence  are  subject  to 
contributions, the pension recipient  in question  shall likewise be subject  thereto.  The yield 
from  such  contributions  shall be divided  among the  States  paying  a pension  proportional 
to the periods completed in each Member State. 

4. Two or more Member States, or the competent  authorities of those States, may provide 
for  other  methods  of reimbursement  or  waive  all reimbursement  between  the  institutions 
coming under their jurisdiction. 

Article 21 

Pension  recipients and members of their families - cash  benefits 

A pension recipient  or claimant and the members of his family shall receive cash benefits in 
accordance with the provisions contained in the Chapter on invalidity. 

Article 22 

Pension claimants and members of their families 

Articles 20 and 21 shall apply mutatis mutandis  to  a person who,  during the investigation 
of a claim for  a pension,  ceases to be entitled  to  sickness benefits,  including  death grants, 
under the legislation of the Member State which was last competent. 

Article 23 

31/ 

Right to benefits existing in the country of residence 

Where the members of the family reside in the territory of a Member  State under whose 
legislation the right to benefits in kind, including death grants, is not subject to conditions 
of insurance or employment, the benefits  in kind provided to them shall be considered as 
being on behalf of the institution which administers the legislation pursuant to which the 
person is insured, unless the spouse or the person looking  after  the  children pursues an 
activity as an employed or self-employed person in the territory of the said Member State. 

Article 24 

Substantial benefits in kind 

1. A person  or  a  member  of  his  family  who  has  had  a  right  to  a  prosthesis,  a  major 
appliance or other substantial benefits in kind recognised  by the institution of a Member 
State before he becomes insured pursuant to the legislation administered by the institution 
of another Member State, shall receive such benefits at the expense of the first institution, 
even if they are accorded after the said person has already become insured pursuant to the 
legislation administered by the second institution. 

2.  The  Administrative  Commission  shall  draw  up  the  list  of  benefits  to  which  the 
provisions of paragraph  1  apply. 

Article 25 

Aggregation of periods for seasonal workers 

Article 4 shall apply to seasonal workers, even in respect of periods prior to any break in 
insurance  exceeding  the  period  allowed  by  the  legislation  of  the  competent  State, 
provided,  however,  that  the  person  involved  has not  ceased  to  be insured  for  a period 
exceeding four months. 

Article 26 

Reimbursements between institutions 

1. The benefits  in kind, including death grants, provided  by the institution  of a Member 
State on behalf of the institution of another Member  State pursuant  to  the provisions of 
this  Chapter  shall  give  rise  to  full  reimbursement,  as  determined  and  effected  in 

32 

accordance  with  the  arrangements  set  out  in the  Implementing  Regulation  referred  to  in 
Article 71,  on production of proof of actual expenditure. 

2. Two or more Member  States, or the competent authorities of such States, may provide 
for  other methods  of reimbursement  or waive  all reimbursement  between  the  institutions 
coming under their jurisdiction. 

CHAPTER 2 

INVALIDITY 

Article 27 

General provision 

Persons  who  have  been  subject  to  the  legislations  of  two  or  more  Member  States  shall 
receive benefits  in accordance with the provisions  of Chapter  3 which  shall apply  mutatis 
mutandis. 

Article 28 

Consideration  by a Member State of periods of compensation for incapacity  to work 
provided  by another Member State 

The  competent  institution  of  a  Member  State  whose  legislation  makes  the  granting  of 
invalidity benefits  conditional  on the fact  that,  for  a specified  period,  the  person  involved 
received  cash  benefits  for  sickness  or  was  incapable  of  working,  shall  take  into  account 
any  period  during  which  he  received,  under  the  legislation  of  another  Member  State,  in 
respect  of incapacity  to  work  cash benefits  for  sickness  or maintenance  of his income  or 
invalidity  benefits,  as  though  it  were  a  period  during  which  he  had  been  provided  with 
cash benefits  for  sickness pursuant to the legislation it administers or during which he had 
been incapable of working within the meaning of the said legislation. 

Article 29 

Aggravation  of invalidity 

In the  case  of aggravation  of  an invalidity  for  which  a person  is receiving  benefits  under 
the  legislation  of  two  or  more  Member  States,  the  benefits  shall  be  accorded  to  him, 
taking the aggravation into account, in accordance with this Chapter. 

Article 30 

33A 

Determination  of the institution  responsible for providing  benefits when  provision 
of invalidity  benefits  is resumed 

1. If provision  of benefits is to be resumed  after  suspension,  such provision  shall,  without 
prejudice  to  Article  31,  be the  responsibility  of  the  institution  or  institutions  which  were 
responsible for provision of the benefits  at the time of their suspension. 

2.  If,  after  withdrawal  of  benefits,  the  condition  of  the  person  involved  warrants  the 
granting of further  benefits,  they shall be accorded in keeping with this Chapter. 

Article  31 

Conversion  of invalidity  benefits  into old-pge  benefits 

1. Invalidity benefits  shall be converted  into old-age benefits,  vhere appropriate, under the 
conditions laid down by the legislation or legislations under which they were accorded  and 
in keeping with the provisions of Chapter 3. 

2.  Where  a  person  receiving  invalidity  benefits  can  establish  a  claim  to  old-age  benefits 
under  the  legislation  of  one  or  more  Member  States,  in  accordance  with  Article  32,  any 
institution  which is responsible  for  providing  invalidity  benefits  under  the  legislation  of a 
Member State shall continue to provide such a person with the invalidity benefits  to which 
he is entitled under the legislation which it administers until the provisions of paragraph 1 
become  applicable in respect  of that  institution  or,  if not,  as long as the  person  involved 
fulfils  the conditions for  such benefits. 

CHAPTER 3 

OLD-AGE AND SURVIVORS'PENSIONS 

Article 32 

General provisions for the award of benefits where a person has been subject to the 
legislation  of two or more Member States 

1.  All  the  competent  institutions  must  proceed  to  award  benefits,  in  respect  of  all  the 
legislations  concerned,  as  soon  as  a  request  for  award  has  been  submitted,  unless  the 
person involved  expressly  requests  deferment  of the  award  of the old-age benefits  of one 
or  more  Member  States  or  if  he  does  not  simultaneously  fulfil  the  conditions  required 
under  all the legislations  of the  Member  States  to  which  he has been  subject,  taking  into 
account aggregation of periods of insurance or of residence. 

2. If the person involved does not fulfil,  at  a given moment,  the conditions required  under 
all the legislations of the Member  States, the institutions administering a legislation whose 
conditions  have  been  fulfilled  must  take  into  consideration,  when  performing  the 
calculation  in  accordance  with  Article  34(1 )(a)  or  (2),  the  periods  completed  under  the 

34/ 

legislations  whose  conditions  have  not  been  fulfilled  only  if  this  gives  rise  to  a  higher 
amount of benefit. 

3. The provisions of this paragraph shall apply mutatis mutandis when the person involved 
has expressly requested deferment  of the award of the old-age  benefit. 

4. A new calculation shall be performed  automatically as and when the conditions required 
, under the other legislations are fulfilled  or when a person requests the award of an old-age 
benefit  deferred  in accordance with paragraph  1. 

5.  The increases  in  or  supplements  to  pensions  in respect  of  children  or  orphans  shall be 
accorded  in keeping with the provisions of this Chapter. 

Article 33 

Consideration  of periods of insurance or residence for the acquisition, retention or 
recovery of the right to  benefits 

1.  The  competent  institution  of  a  Member  State  shall  take  into  account  all  periods  of 
insurance  and/or  residence  completed  under  the  legislation  of  any  other  Member  State, 
whether under a general scheme or a special scheme. 

2.  For  granting  benefits  under  a  special  scheme,  if the  applicable  legislation  so  requires, 
the periods completed  in the other Member  States shall be taken into account  only if they 
have  been  completed  under  a  corresponding  scheme  or,  in  default  thereof,  in  the  same 
occupation or, where appropriate, in the same employment. 

3.  If the insured  person  does not fulfil  the conditions required  to  receive the benefits  of a 
special  scheme,  the  periods  shall  be  taken  into  account,  in  the  State  concerned,  for 
granting the benefits  of the general scheme or, in default thereof,  of the scheme  applicable 
to manual or clerical workers, as the case may be. 

4.  The  periods  which  have  given  rise  to  benefits  under  a  special  scheme  of  a  Member 
State  shall likewise be taken into  account  for  granting the  benefits  of the general  scheme 
or, in default  thereof,  of the  scheme applicable to  manual  or  clerical workers,  as the  case 
may be. 

Article 34 

Award of  benefits 

1.  If  the  conditions  required  under  the  legislation  of  a Member  State  for  entitlement  to 
benefits  are satisfied  without recourse to aggregation  of periods, the competent  institution 
shall calculate the amount of benefit which will be due: 

(a)  on  the  one  hand,  only  pursuant  to  the  provisions  of  the  legislation  which  it 

administers (national pension); 

35/' 

(b)  on  the  other,  in  accordance  with  the  provisions  of  paragraph  2  (pro-rata 

pension). 

2.  If the conditions  required  under the legislation  of a Member  State for  entitlement  to 
benefits are satisfied only through aggregation of periods: 

(a) The competent institution shall calculate the theoretical  amount of the benefit 
to  which  the  person  involved  could  lay  claim  if  all  the  periods  of  insurance  and/or  of 
residence which he has completed under the legislations of the other Member  States had 
been completed under the legislation which it administers, on the date of the award of the 
benefit.  If,  under  this  legislation,  the  amount  does  not  depend  on  the  duration  of the 
periods completed, the amount shall be regarded as being the theoretical amount. 

(b) The competent institution shall then establish the actual amount of the benefit 
(pro rata) by applying to the theoretical amount the ratio between (i) the duration of only 
the periods completed prior to materialisation  of the risk under the legislation which the 
institution  administers  and  (ii)  the  total  duration  of  the  periods  completed  prior  to 
materialisation of the risk under the legislation of all the Member States concerned. 

3.  Where appropriate,  the  competent  institution  shall  apply to  the  amount  calculated in 
accordance with paragraphs  1 and 2 above all the rules relating to reduction,  suspension 
or withdrawal under the legislation pursuant to which the benefit  is due, within the limits 
provided for by the provisions of Articles 35 to 37 of this Chapter. 

4. The insured person shall be entitled to receive from  the competent  institution  of each 
country whichever of the amounts - that  due through  application of national law or that 
which would be due through application of Community law - is higher. 

Article 35 

Rules relating to reduction, suspension or withdrawal applicable to benefits in 
respect of invalidity, old age or survivors pursuant to the legislations of the Member 
States (Rules to prevent overlapping) - General provisions 

1.  Save  as  otherwise  provided  for  in  this  Chapter,  the  rules  relating  to  reduction, 
suspension  or withdrawal  under  the legislation  of a Member  State in cases  of  a benefit 
overlapping  with  other  social  security  benefits  pertaining  to  the  same  period  of 
compulsory  insurance  or  with  any  other  forms  of  income  may  be  invoked  against  the 
beneficiary  even  where  such  benefits  were  acquired  under  the  legislation  of  another 
Member State or where such incomes were acquired in the territory  of another Member 
State. 

2. The rules to prevent overlapping contained in the legislation of a Member State in the 
case  of  a  person  in  receipt  of  invalidity  benefits  or  early  old-age  benefits  pursuing  an 
activity  as an employed  or  self-employed  person may be invoked  against  such a person 
even though he is pursuing his activity in the territory of another Member State. 

3. Any overlapping of invalidity, old-age and survivors' benefits calculated or provided on 
the  basis  of  insurance  and/or  residence  periods  completed  by the  same  person  shall be 
considered to be overlapping of benefits of the same kind. 

36/ 

4. Overlapping of benefits which cannot be considered to be of the same kind within the 
meaning of paragraph  3  shall be considered  to be overlapping  of benefits  of  a  different 
kind. 

5. The competent institution must take into consideration the benefits or incomes acquired 
abroad only if the legislation which it administers makes explicit provision therefor. 

6. The competent institution must take into account the amount of benefits to be paid by 
another  Member  State  before  deduction  of tax,  social  security  contributions  and  other 
individual deductions. 

7. The competent  institution  must  not  take  account  of the  amount  of benefits  acquired 
under  the  legislation  of  another  Member  State  on  the  basis  of  voluntary  insurance  or 
continued optional insurance. 

8.  If  a  single  Member  State  applies  rules  to  prevent  overlapping  because  the  perso i 
involved  receives  benefits  of  the  same  kind  or  of  a  different  kind  pursuant  to  the 
legislation of other Member States or incomes acquired in the territory of other Member 
States, the benefit  due may be reduced solely by the total amount of benefits due pursuant 
to the legislation of the other Member States or by the incomes acquired in their territory. 

Article 36 

Overlapping of benefits of the same kind due under the legislation of two or more 
Member States - Special provisions 

1. The rules to prevent overlapping provided for under the legislation of a Member State 
shall not apply to a benefit calculated in accordance with Article 34(2) - pro rata. 

2.  A benefit  calculated  in  accordance  with  Article  34(l)(a)  -  national  benefit  -  may be 
reduced,  suspended  or  withdrawn  by  application  of  the  rules  to  prevent  overlapping 
provided for under the legislation of a Member State only if it is: 

(a)  a  benefit,  the  amount  of  which  does  not  depend  on  the  duration  of  insurance  or 
residence periods, 

or 

(b) a benefit, the amount of which is determined on the basis of a credited period between 
the materialisation of the risk and a later date, overlapping with either: 

(i)  a benefit  of  the  same kind,  except  where  an  agreement  has  been  concluded 
between two or more Member States to avoid the same credited  period being taken into 
account two or more times; 

or 

(ii) a benefit, the amount of which does not depend on the duration of insurance or 

residence periods. 

37/ 

Article  37 

Overlapping of one or more national  benefits with one or more benefits  of a 
different  kind or with other incomes where two or more Member States are 
concerned - Special  provisions 

1. If the receipt  of benefits  of a different  kind  or  other  incomes  engenders  application  of 
the rules to prevent overlapping as regards: 

(a)  two  or  more  benefits  calculated  in  accordance  with  national  legislation,  the 
competent  institutions must  divide the  amounts, which would  not be paid  in the  event  of 
strict  application  of the rules to prevent  overlapping, by the number of benefits  subject  to 
the said rules; 

(b)  two  or  more benefits  calculated  in  accordance  with  the  pro-rata  method,  the 
competent  institutions shall take into  account  the benefit  or benefits  of the other Member 
States  or  the  other  incomes  and  all  the  elements  stipulated  for  applying  the  rules  to 
prevent  overlapping  as  a  function  of  the  ratio  between  the  periods  of  insurance  and/or 
residence  established  for  the calculation  referred  to  in Article 34(2)(b) (pro  rata)  of such 
benefits; 

(c) one or more benefits  calculated  in accordance with national legislation and one 
or  more  pro-rata  benefits,  the  competent  institutions  shall  apply  the  rules  to  prevent 
overlapping: 

(i) in accordance with subparagraph (a) as regards national benefits; 

(ii) in accordance with subparagraph  (b) as regards pro-rata benefits. 

2.  The  competent  institution  shall  not  apply  the  stipulated  division  in respect  of  national 
benefits  if the legislation which it administers provides for  account to be taken of  benefits 
of a different  kind and/or of other incomes and all the elements for  calculating part of their 
amount  determined  as a function  of the ratio between the periods of insurance referred  to 
in Article 34(2)(b). 

3. All the abovementioned  provisions shall apply mutatis mutandis where the legislation of 
one or more Member  States provides that  a benefit  cannot  be granted  in the case where a 
person receives a benefit  of a different  kind pursuant  to the legislation of another Member 
State or other incomes. 

Article  38 

Additional  provisions for the calculation  of benefits 

1. For the calculation  of the theoretical  and pro rata  amounts referred  to in Article 34(2), 
the following  rules shall apply: 

(a)  the  competent  institution  shall  take  into  consideration  the  maximum  duration 
required  under  the  legislation  which  it  administers  if the  total  duration  of the  periods  of 
insurance  and/or  residence  completed  prior  to  materialisation  of  the  risk  under  the 

3f 

legislations  of all the Member  States concerned  exceeds the said maximum  duration.  This 
provision shall not  apply to benefits whose amount does not depend  on the duration  of the 
periods of insurance; 

(b)  the  competent  institution  shall  take  into  account  overlapping  periods  in 
accordance  with  the  procedure  laid  down  in the  Implementing  Regulation  referred  to  in 
Article 71; 

"(c)  if  the  legislation  of  a  Member  State  provides  that  the  benefits  shall  be 
calculated  on  the  basis  of  incomes,  contributions,  increases  or  amounts  (average, 
proportional, fixed or credited), the competent institution shall: 

(i)  determine  the  basis,  average  or  proportional,  for  calculation  of  the  benefits  in 
accordance  with  only periods  of insurance  completed  pursuant  to  the  legislation  which it 
administers; 

(ii)  utilise,  in  order  to  determine  the  amount  to  be  calculated  in  accordance  with  the 
periods  of  insurance  and/or  residence  completed  under  the  legislation  of  the  other 
Member  States, the same average, proportional, fixed or  credited  elements  determined  or 
recorded for the periods of insurance completed under the legislation which it administers. 

2. The theoretical  amount of a benefit  calculated  on the basis of the elements referred  to in 
the  preceding  paragraph  must  be  duly  revalued  and  increased  as  though  the  person 
involved  had  continued  to  pursue  his  activity  under  the  same  conditions  in  the  Member 
State  concerned. 

Article  39 

Award  of a supplement where the total of benefits  due under the legislations  of the 
various Member States does not amount to the minimum laid down  by the 
legislation  of the recipient's  State of residence 

A  recipient  of  benefits  to  whom  this  Chapter  has  been  applied  may  not  be  awarded  a 
benefit  which is less than the minimum benefit fixed, for  a period  of insurance or residence 
equal to all the periods taken into account for the award in accordance with the provisions 
of this Chapter,  by the legislation  of the  State where he resides and under which a benefit 
is due to him. 

The  competent  institution  of  that  State  shall  pay  him  throughout  the  period  of  his 
residence  in  its  territory  a  supplement  equal  to  the  difference  between  the  total  of  the 
benefits  due pursuant to this Chapter and the amount of the minimum  benefit. 

Article  40 

Revaluation  and recalculation  of  benefits 

1. If,  by  reason  of  an increase  in the  cost  of living  or  changes in the  level  of incomes  or 
other  reasons for  adjustment,  the benefits  of the  States concerned  are altered  by a certain 

39. 

/ 

percentage or amount,  such percentage or amount must be applied  directly to the  benefits 
determined  in  accordance  with  Article  34,  without  the  need  for  a  recalculation  in 
accordance with that Article. 

2.  On  the  other  hand,  if the  method  of  determining  benefits  or  the  rules  for  calculating 
benefits  should  be  altered,  a  recalculation  shall  be  carried  out  in  accordance  with 
Article 34. 

CHAPTER 4 

ACCIDENTS AT WORK AND OCCUPATIONAL  DISEASES 

Article  41 

Right to benefits  in kind and in cash 

1. Without  prejudice  to  the  more  favourable  provisions  of  paragraph  2,  Articles  14,  15, 
16,  18,  19  and  26  shall  apply  mutatis  mutandis  to  the  benefits  relating  to  accidents  at 
work and occupational diseases. 

2.  The victim  of  an  accident  at work  or  occupational  disease  staying  in  a Member  State 
other  than  the  competent  State  shall  receive  the  special  benefits  in  kind  of  the  scheme 
covering  accidents  at  work  and  occupational  diseases  provided,  on  behalf  of  the 
competent  institution,  by  the  institution  of  the  place  of  stay  in  accordance  with  the 
provisions  of the  legislation  which  it  administers  as though  he  were  insured  pursuant  to 
the said legislation. 

Article  42 

Benefits  for an occupational disease where the person involved  has been exposed to 
the same risk in several Member States 

1. When  the victim  of  an  occupational  disease has, under  the  legislation  of  two  or  more 
Member  States, pursued  an activity which by its nature is likely to  cause the  said  disease, 
the  benefits  that  he  or  his  survivors  may  claim  shall  be  awarded  exclusively  under  the 
legislation  of the  last  of those  States whose  conditions  are  satisfied,  taking  into  account, 
where appropriate, paragraphs 2 to 4. 

2.  If,  under  the  legislation  of  a  Member  State,  the  granting  of  benefits  in  respect  of  an 
occupational  disease  is  subject  to  the  condition  that  the  disease  in  question  was  first 
medically  diagnosed  in its  territory,  such  condition  shall  be  deemed  to  be  satisfied  if the 
disease was first diagnosed  in the territory of another Member  State. 

3.  If,  under  the  legislation  of  a Member  State,  the  granting  of  benefits  in  respect  of  an 
occupational  disease is subject  to the condition that  the disease in question  was  diagnosed 
within  a  specific  time  limit  following  cessation  of  the  last  activity  which  was  likely  to 
cause  such  a  disease,  the  competent  institution  of  that  State,  when  checking  the  time  at 

40 

which  such  last  activity  was  pursued,  shall  take  into  account,  to  the  extent  necessary, 
similar  activities  pursued  under the  legislation  of any other Member  State  as though  they 
had been pursued under the legislation of the first State. 

4.  If,  under  the  legislation  of  a  Member  State,  the  granting  of  benefits  in  respect  of  an 
occupational  disease is subject  to the condition that  an activity likely to  cause the  disease 
in  question  was  pursued  for  a  certain  length  of  time,  the  competent  institution  of  that 
State  shall take  into  account,  to  the  extent  necessary,  periods  during which  such  activity 
was  pursued  under  the  legislation  of  any  other  Member  State  as  though  it  had  been 
pursued under the legislation of the first State. 

Article  43 

Calculation of cash  benefits 

1.  The  competent  institution  of  a  Member  State,  whose  legislation  provides  that  the 
calculation  of  cash  benefits  shall  be  based  on  average  income,  shall  determine  such 
average  income  exclusively  by  reference  to  the  incomes  confirmed  as  having  been  paid 
during the periods completed under the said legislation. 

2.  The  competent  institution  of  a  Member  State,  whose  legislation  provides  that  the 
calculation  of  cash  benefits  shall  be  based  on  standard  income,  shall  take  account 
exclusively  of  the  standard  income,  or  where  appropriate,  of  the  average  of  standard 
incomes for the periods completed under the said legislation. 

Article 44 

Costs of transporting a victim 

1.  The  competent  institution  of  a  Member  State  whose  legislation  provides  for  meeting 
the  costs  of  transporting  a victim,  either  to  his place  of jesidence  or  to  a  hospital,  shall 
meet  such  costs  to  the  corresponding  place  in  the  territory  of  another  Member  State 
where the victim resides. 

2. The competent  institution of a Member  State whose legislation provides for the costs of 
transporting  the  body  of  a  victim  to  the  place  of  burial  shall,  in  accordance  with  the 
provisions  of  the  legislation  which  it  administers,  meet  such  costs  to  the  corresponding 
place in the territory of another Member  State where the victim was residing at the time of 
the accident. 

Article 45 

Aggravation  of an occupational  disease for which  compensation  has been  awarded 

In the event  of aggravation  of an  occupational  disease for  which  a victim has received  or 
is  receiving  compensation  under  the  legislation  of  a  Member  State,  the  following  rules 
shall apply: 

41/ 

(a)  if the  person  involved  has  not,  while  in  receipt  of  benefits,  pursued  an  activity  as an 
employed  or self-employed  person under the legislation of another Member  State likely to 
cause  or  aggravate the  disease in question,  the  competent  institution  of the first Member 
State shall be bound to meet the cost  of the benefits  under the provisions of the legislation 
which it administers, taking into account the  aggravation; 

(b) if the person involved, while in receipt  of benefits,  has pursued  such  an activity  under 
the  legislation  of  another  Member  State,  the  competent  institution  of  the  first  Member 
State  shall  be  bound  to  meet  the  cost  of  the  benefits  under  the  legislation  which  it 
administers without  taking the aggravation  into account.  The competent  institution  of the 
second  Member  State  shall  grant  a  supplement  to  the  person  involved,  the  amount  of 
which  shall  be  equal  to  the  difference  between  the  amount  of  benefits  due  after  the 
aggravation  and  the  amount  which  would  have  been  due  prior  to  the  aggravation  under 
the  legislation  which  it  administers  if  the  disease  in  question  had  occurred  under  the 
legislation of that Member State; 

(c) the rules  concerning  reduction,  suspension  or withdrawal  laid  down by the  legislation 
of  a  Member  State  shall  not  be  invoked  against  persons  receiving  benefits  awarded  by 
institutions of two Member  States in accordance with subparagraph (b). 

Article  46 

Rules for taking into account the special features  of certain  legislations 

1.  If  there  is  no  insurance  against  accidents  at  work  or  occupational  diseases  in  the 
territory  of  the  Member  State  in  which  the  person  involved  finds  himself,  or  if  such 
insurance exists but there is no institution responsible for  providing benefits  in kind, those 
benefits  shall be provided  by the  institution  of  the  place  of  stay  or  residence  responsible 
for providing benefit  in kind in the event of sickness. 

2.  Where  the  legislation  of  the  competent  State  makes  wholly  cost-free  benefits  in kind 
conditional  upon  use  of  the  medical  service  organised  by  the  employer,  benefits  in kind 
provided  in  another  Member  State  shall  be  deemed  to  have  been  provided  by  such  a 
medical service 

3.  Where  the  legislation  of  the  competent  State  includes  a  scheme  relating  to  the 
obligations  of the  employer,  the  benefits  in kind  provided  in  another  Member  State  shall 
be deemed to have been provided  at the request  of the competent institution. 

4.  Where  the  nature  of the  scheme  of  the  competent  State  relating  to  compensation  for 
accidents  at  work  is not  that  of  compulsory  insurance,  the  provision  of benefits  in kind 
shall be made directly by the employer or by the insurer involved. 

5. Where the legislation of a Member  State provides  explicitly  or  implicitly that  accidents 
af work  or occupational  diseases which have occurred  or have been confirmed  previously 
shall  be  taken  into  consideration  in  order  to  assess  the  degree  of  incapacity  so  as  to 
acquire  a right  to benefits,  or to  determine  the  amount  thereof,  the  competent  institution 
of that  Member  State shall also take into  consideration  accidents at work  or  occupational 
diseases which have occurred  or  have been  confirmed  previously  under the  legislation  of 

42/ 

another  Member  State  as  though  they  had  occurred  or  had  been  confirmed  under  the 
legislation which it administers. 

6. Where the legislation  of a Member  State provides  explicitly  or  implicitly  that  accidents 
at  work  or  occupational  diseases  which  have  occurred  or  have  been  confirmed 
subsequently  shall be taken into  consideration  in order  to  assess  the  degree  of  incapacity 
so  as to  acquire the right to  benefits,  or  to  determine  the  amount  thereof,  the  competent 
institution  of  that  Member  State  shall  also  take  into  consideration  accidents  at  work  or 
occupational  diseases  which  have  occurred  or  have  been  confirmed  subsequently  under 
the  legislation  of  another  Member  State,  as  though  they  had  occurred  or  had  been 
confirmed  under the legislation which it administers, but only where: 

(a) no compensation  is due in respect  of the accident  at work  or the  occupational  disease 
which  had  occurred  or  had  been  confirmed  previously  under  the  legislation  which  it 
administers; 

and 

(b) no  compensation  is due under  the legislation  of the  other  Member  State  in respect  of 
the  accident  at  work  or  the  occupational  disease  which  had  occurred  or  had  been 
confirmed  subsequently,  notwithstanding the provisions of paragraph 5. 

Article 47 

Scheme applicable where there are several schemes  in the country of stay or 
residence - Maximum duration of  benefits 

1. If the legislation  of the -country of stay  or residence  has  several  insurance  schemes, the 
provisions  applicable  to  victims  of  an  accident  at  work  staying  or  residing  in  a  Member 
State  other  than  the  competent  State  shall be those  of the  scheme  for  manual  workers in 
the  steel  industry.  However,  if that  legislation  includes  a  special  scheme  for  workers  in 
mines  and  undertakings  treated  as  such,  the  provisions  of that  scheme  shall  apply  to  the 
said  category  of workers where the  institution  of the  place  of  stay  or  residence  to  which 
they submit their claim is competent to administer that scheme. 

2. If the legislation of a Member  State fixes a maximum period  during which benefits  may 
be  granted,  the  institution  which  administers  that  legislation  may  take  into  account  any 
period  during which  the benefits  have already  been  provided  by the  institution  of another 
Member State. 

CHAPTER 5 

UNEMPLOYMENT 

Article 48 

43' 

Special  rule on aggregation of periods of insurance, employment or activity as a self-
employed  person 

1. The competent  institution  of a Member  State whose  legislation  makes the acquisition, 
retention  or  recovery  of the right  to  benefits  conditional  upon  the  completion  of  either 
periods of insurance,  of employment  or of activity as a self-employed  person  shall, to the 
extent  necessary,  take  account  of periods  of insurance,  employment  or activity  as a self-
employed  person  completed  under  the legislation  of any other  Member  State  as though 
they  were  periods  of  insurance,  employment  or  activity  as  a  self-employed  person 
completed under the legislation which it administers. 

However,  when  the  legislation  applicable  makes  the  right  to  benefits  conditional  on 
completion  of periods  of insurance,  the  periods  of  employment  or  of  activity  as a  self-
employed  person  completed  under  the legislation  of another  Member  State  shall  not be 
taken  into  account  unless  such  periods  would  have  been  considered  to  be  periods  of 
insurance if they had been completed under the said legislation. 

2.  Application  of the provisions  of the preceding  paragraph  shall  be  conditional  on the 
person involved having completed ultimately: 

either periods of insurance; 

or periods of employment; 

or periods of activity as a self-employed  person; 

in accordance with the provisions of the legislation under which the benefits are claimed. 

3.  Where the length  of the period  during  which  benefits  may be granted  depends  on the 
duration  of periods  of insurance,  employment  or  activity  as a  self-employed-person,  the 
provisions of paragraph  1 shall apply. 

Article 49 

Calculation of benefits 

I ne  competent  institution  of  a  Member  State  whose  legislation  provides  that  the 
calculation of benefits  shall be based on the amount  of the previous income  shall take into 
account  exclusively  the  income  received  by  the  person  involved  in  respect  of  his  last 
employment  under  the said  legislation.  However,  if the  person  involved  had been  in his 
last  employment  under the said  legislation  for less than  four  weeks,  the benefits  shall be 
calculated  on  the  basis  of  the  normal  income  corresponding,  in  the  place  where  the 
competent  institution  is  located,  to  an  equivalent  or  similar  employment  to  his  last 
employment under the legislation of another Member State. 

Article 50 

44/f 

Unemployed  persons going to a Member State other than the competent  State 

1.  A  person  insured  against  unemployment  going  to  another  Member  State  in  order  to 
seek work  there  shall  retain  his  entitlement  to  unemployment  benefits  in  cash  under  the 
following  conditions and within the following limits: 

(a) Before  his departure he must have been registered  as a person seeking work  and have 
remained  available  to  the  employment  services  of  the  competent  State  for  at  least  four 
weeks after  becoming unemployed.  However,  the competent  services  or  institutions  may 
authorise his departure before  such time has expired. 

(b) Within  seven days of the date  on which the person involved  ceased  to  be  available to 
the employment  services  of the  State which  he left,  he must register  as a person  seeking 
work with the employment  services of the Member State to which he has gone, be  subject 
to  the  control  procedure  organised  there  and  adhere  to  the  conditions  laid  down  under 
the legislation  of the  said  State.  In exceptional  cases, this period  may be  extended  by the 
competent  services or institutions. 

(c)  The  person 
the  conditions  governing  receipt  of 
unemployment  benefits  other  than  the  benefits  in kind  referred  to  in paragraph  2  as laid 
down by the legislation of the State to which he has gone in order to seek work. 

involved  shall  adhere 

to 

(d) Entitlement  to benefits  shall be retained  for  a maximum period of six months from  the 
date when  the unemployed  person  ceased  to  be  available to  the  employment  services  of 
the State which he left,  provided  that the total duration for which the benefits  are granted 
does not  exceed  the  duration  of the  period  of benefits  he was entitled  to  pursuant  to  the 
legislation  of  that  State.  The  benefits  shall  be  provided  by  the  competent  institution  in 
accordance with the legislation which it administers and at its own expense. 

2. A person  referred  to  in paragraph  1 shall, in the territory  of the  State to  which he had 
gone  in  order  to  seek  work,  receive  unemployment  benefits,  other  than  cash  benefits, 
whose  aim is to  facilitate  access to  work  under the  same  conditions  as its  own  nationals 
receiving  an  unemployment  benefit  within  the  meaning  of  this  Regulation.  Receipt  of 
benefits  shall be conditional  on adherence to the conditions laid down by the legislation of 
the  State  in  which  the  unemployed  person  is  seeking  work  and  the  benefits  shall  be 
provided by the said  State and at its own expense. 

3.  If the  person  involved  returns  to  the  competent  State  before  the  expiry  of  the  period 
during  which  he  is  entitled  to  benefits  pursuant  to  the  provisions  of  paragraph  1 (d),  he 
shall continue to be* entitled  to benefits  under the legislation of that  State; he shall lose all 
entitlement  to  benefits  pursuant  to  the  legislation  of  the  competent  State  if he  does  not 
return there before  the expiry  of the  said period.  In exceptional  cases, this period  may be 
extended by the competent  services or institutions. 

4.  The  arrangements  for  cooperation  and  mutual  assistance between the  institutions  and 
services  of the  competent  State  and  the  State to which the person  goes  in order  to  seek 
work shall be laid down in the Implementing Regulation referred  to in Article  71. 

45/ 

Article  51 

Unemployed  persons who, during their last employment, resided in a Member State 
other than the competent  State 

A person  insured  against  unemployment  who,  during  his  last  activity  as an  employed  or 
self-employed  person,  resided  in  the  territory  of  a  Member  State  other  than  the 
competent  State  and  who  makes  himself  available  to  the  employment  services  in  the 
territory  of  the  State  in  which  he  resides,  shall  receive  the  benefits  provided  by  the 
competent  institution  in  accordance  with  the  provisions  of  the  legislation  of  the 
competent  State  as  though  he  were  available  to  the  employment  services  of  the  said 
State 

CHAPTER 6 

PRE-RETIREMENT 

Article  52 

Specific  rule on aggregation  of periods of insurance or employment 

1. The competent  institution  of  a Member  State  whose  legislation  makes the  acquisition, 
retention  or  recovery  of  the  right  to  benefits  conditional  upon  the  completion  of  either 
periods of insurance or employment  shall, to the extent  necessary, take account  of periods 
of insurance or employment completed  under the legislation of any other Member  State as 
though  they  were  periods  of  insurance  or  employment  completed  under  the  legislation 
which it administers. 

However,  when  the  legislation, applicable  makes  the  right  to  benefits  conditional  on 
completion  of  periods  of  insurance,  the  periods  of  employment  completed  under  the 
legislation  of  another  Member  State, shall  not  be  taken  into  account  unless  such  periods 
would  have been considered  to be periods  of insurance  if they  had been  completed  under 
the said legislation. 

2.  Application  of  the  provisions  of  the  preceding  paragraph  shall  be  conditional  on  the 
person involved having completed  ultimately: 

either periods of insurance; 

or periods of employment; 

in accordance with the provisions of the legislation under which the benefits  are claimed. 

46. 

CHAPTER 7 

FAMILY  BENEFITS, BENEFITS  FOR DEPENDENT CHILDREN  OF 
PENSIONERS AND FOR  ORPHANS 

Article  53 

Priority rules in the event of overlapping of benefit  entitlements 

Where,  during the  same period  and  for  the  same family  member,  family  benefits,  benefits 
for  orphans  or for  dependent  children  of pensioners  are  due  from  several  Member  States 
pursuant  to  their  legislation  or  this  Regulation,  the  competent  institution  of  the  Member 
State whose legislation lays down the highest  amount  of benefits  shall grant  all of the said 
amount.  The  cost  shall  be  divided  equally  among  the  Member  States  concerned,  by 
reimbursement  among  competent  institutions  to  the  limit  of the  amount  laid  down  by the 
legislations which they administer. 

Article  54 

Provision  of benefits  - person actually  maintaining  the members of the family 

If the family benefits,  benefits  for  orphans  or for  dependent  children of pensioners  are not 
used for the maintenance of the members of the family by the person to whom they should 
be provided, the competent  institution  shall discharge its legal obligations by providing the 
said benefits to the natural or legal person actually maintaining the members of the family. 

CHAPTER 8 

SPECIAL BENEFITS 

Article 55 

1.  This  chapter  concerns  non-contributory  cash  benefits  whose  granting  procedures  are 
closely linked to a particular economic and social context  and which: 

(a) are granted after  means-testing 

or 

(b) are intended  solely to afford  specific protection for the disabled 

insofar  as such benefits  are mentioned in Annex I. 

47 

2.  Notwithstanding  the  other  provisions  of  this  Regulation,  the  persons  to  which  this 
Regulation  applies shall receive the  special benefits  referred  to  in paragraph  1 exclusively 
in the territory  of the Member  State in which they reside and  under  the legislation  of the 
said State. The benefits  shall be provided by the institution of the place of residence and at 
its own expense. 

3.  The  competent  institution  of  a  Member  State  whose  legislation  makes  entitlement  to 
the  benefits  covered  by  paragraph  1 conditional  on  completion  of  periods  of  residence 
shall,  to  the  extent  necessary,  take  account  of  periods  of  residence  completed  in  the 
territory  of any other Member  State as though they were  completed  in the territory  of the 
first Member State. 

4. Where the legislation of a Member  State makes the granting of the benefits  intended  for 
invalid  and  disabled  persons  and  covered  by paragraph  1 conditional  on  the  invalidity  or 
disability  having  been  diagnosed  for  the first time  in the  territory  of that  Member  State, 
this condition  shall be deemed  to be fulfilled  where  such  diagnosis was made for  the first 
time in the territory of another Member State. 

TITLE IV 

ADMINISTRATIVE  COMMISSION  FOR THE COORDINATION  OF SOCIAL 
SECURITY  SYSTEMS 

Article 56 

Composition  and working  methods 

1. 

2. 

J. 

The Administrative  Commission  for  the  Coordination  of  Social  Security  Systems 
(hereinafter  called  'the  Administrative  Commission')  attached  to  the  Commission 
shall be made up of a representative  of each of the Member  States, assisted,  where 
necessary,  by expert  advisers.  A representative  of the Commission  shall attend  the 
meetings of the Administrative Commission in an advisory capacity. 

The  rules  of  the  Administrative  Commission  shall  be  drawn  up  by  mutual 
agreement  among its members. 

The secretarial services of the Administrative Commission  shall be provided by the 
Commission. 

48 

Article  57 

Tasks of the Administrative  Commission 

The Administrative Commission shall have the following  duties. 

(a) 

(b) 

(c) 

to  deal  with  all  administrative  questions  and  questions  of  interpretation  arising 
from  the  provisions  of  this  Regulation  and  subsequent  Regulations,  or  from  any 
agreement  or arrangement  concluded  thereunder,  without prejudice  to the right  of 
the  authorities,  institutions  and  persons  involved  to  have  recourse  to  the 
procedures and tribunals provided for by the legislations of Member  States, by this 
Regulation or by the Treaty; 

to  foster  and  develop  cooperation  between  Member  States  in  social  security 
matters; 

to  modernise procedures for  exchanging information,  in particular by adapting  the 
information  flow  between  institutions  for  the  purposes  of  telematic  exchange, 
taking  account  of the  development  of  data-processing  in each  Member  State;  the 
Administrative  Commission  shall  adopt  the  common  architecture  rules  for  the 
telematic  services,  in  particular  on  security  and  the  use  of  standards;  it  shall  lay 
down provisions for the operation of the common part of the telematic services; 

(d) 

to  undertake  any  other  function  coming  within  its  competence  under  the 
provisions  of this Regulation  and  the  Implementing  Regulation  or  any  agreement 
or arrangement made thereunder; 

(e) 

to  make  any  proposals  of  use  to  the  Commission  for  working  out  subsequent 
Regulations and for the revision of this and subsequent Regulations. 

Article  58 

Technical  Commission  for  Data-Processing 

A  Technical  Commission  for  Data-Processing  (hereinafter  called  the  'Technical 
Commission')  shall be  attached  to  the  Administrative  Commission.  The  Technical 
Commission  shall  deliver  reports  and  a  reasoned  opinion  before  decisions  are 
taken  by  Administrative  Commission  pursuant  to  Article  57(c).  The  working 
methods and the composition  of the Technical  Commission  shall be determined  by 
the Administrative  Commission. 

The Technical Commission shall: 

gather together the relevant  technical  documents and undertake the  studies 

(a) 
and work required to accomplish its tasks; 

submit  to  the  Administrative  Commission  the  reports  and  reasoned 

(b) 
opinions referred  to in paragraph  1 ; 

carry  out  all  other  tasks  and  studies  oh  matters  referred  to  it  by  the 

(c) 
Administrative  Commission. 

49/ 

TITLE V 

MISCELLANEOUS  PROVISIONS 

Article  59 

Cooperation  between  competent  authorities 

1.  The  competent  authorities  of  Member  States  shall  communicate  to  each  other  all 
information  regarding: 

(a) measures taken to implement this Regulation; 

(b) changes in their legislation which are likely to  affect  the implementation  of this 
Regulation. 

2.  For  application  of  this  Regulation,  the  authorities  and  institutions  of  Member  States 
shall  lend  their  good  offices  and  act  as  though  implementing  their  own  legislation.  The 
administrative  assistance furnished  by the  said  authorities  and  institutions  shall,  as a rule, 
be free  of charge. However, the competent  authorities  of the Member  States may agree to 
certain expenses being reimbursed. 

3.  The  authorities  and  institutions  of  Member  States  may,  for  application  of  this 
Regulation,  communicate directly with one another  and with the persons involved  or their 
representatives. 

4.  The  authorities,  institutions  and  tribunals  of  one  Member  State  may  not  reject 
applications or other documents submitted to them on the grounds that they are written in 
an official  language of another Member State. 

Article  60 

Protection  of personal  data 

1.  Where,  under  this  Regulation  or  under  the  Implementing  Regulation  referred  to  in 
Article 71, the authorities or institutions of a Member  State communicate personal data to 
the  authorities  or  institutions  of  another  Member  State,  such  communication  shall  be 
subject  to  the  legal  provisions  governing  protection  of  data  laid  down  by  the  Member 
State  transmitting  the  data.  Any  subsequent  communication  as  well  as  the  storage, 
alteration and destruction of the data shall be subject  to the provisions of the legislation on 
data protection of the receiving Member State. 

2. Transmission of data required to apply this Regulation and its Implementing Regulation 
by  one  Member  State  to  another  Member  State  must  be  effected  in  conformity  with 
Community  provisions  governing  protection  of  natural  persons  with  regard  to  the 
processing of personal data. 

50' 

Article  61 

Data-processing 

1.  The  Member  States  shall  progressively  use  telematic  services  for  the  electronic 
exchange  between  institutions  of  the  data  required  to  apply  the  Regulation  and  its 
Implementing  Regulation.  The purpose  in utilising telematic  services  is to  allow  effective 
application  of  the  Regulation  and  its  Implementing  Regulation,  and  to  expedite  the 
granting  and  payment  of benefits.  The  Commission  shall  lend  its  support  to  activities  of 
common interest  as soon as the Member  States have established  such telematic services. 

2.  Each  Member  State  shall  be  responsible  for  managing  its  own  part  of  the  telematic 
services  in  accordance  with  the  Community  provisions  on  the  protection  of  natural 
persons with regard to the processing of personal data. 

3.  An  electronic  message  sent  by an  institution  in  conformity  with  the  provisions  of this 
Regulation  and  the  Implementing  Regulation  may  not  be  rejected  by  any  authority  or 
institution  of  another  Member  State  on  the  grounds  that  it  was  received  by  electronic 
means,  once  the  receiving  institution  has  declared  its  ability  to  receive  electronic 
messages. Reproduction and recording of such messages shall be presumed to be a correct 
and accurate reproduction  of the original document  or representation  of the information  it 
relates to, unless there is proof to the contrary. 
An  electronic  message  shall  be  considered  valid  if  the  computer  system  on  which  the 
message  is  recorded  contains  the  safeguards  necessary  in  order  to  avoid  any  alteration, 
disclosure  or  access  to  the  recording.  It  shall  at  any  time  be  possible  to  reproduce  the 
recorded  information  in  an  immediately  readable  form.  When  an  electronic  message  is 
transferred  from  one  social  security  institution  to  another,  appropriate  security  measures 
shall  be  taken  in  accordance  with  the  Community  provisions  governing  protection  of 
natural persons with regard to the processing of personal data. 

Article  62 

Funding of activities in the social security  field 

In connection with this Regulation, the Commission may  fund: 

-  activities  aimed  at  improving  exchanges  of  information  between  the  social  security 
authorities  and  institutions  of  the  Member  States,  including  the  electronic  exchange  of 
data; 

-  any  other  activity  such  as studies  and  meetings  of  experts  as well  as  activities  aimed  at 
informing  the  citizens  and  professional  groups  concerned  about  the  rights  deriving  from 
this  Regulation,  in  particular  by  means  of  publications  and  organising  conferences  and 
seminars. 

51/ 

Article 63 

Exemptions from  or reductions of taxes - Exemption from  authentication 

1.  Any  exemption  from  or  reduction  of  taxes,  stamp  duty,  notarial  or  registration  fees 
provided for  in the legislation of one Member  State in respect  of certificates  or  documents 
required to be produced  in application of the legislation  of that  State shall be extended  to 
similar  certificates  or  documents required  to  be produced  in application  of the  legislation 
of another Member  State or of this Regulation. 

2.  All  statements,  documents  and  certificates  of  any  kind  whatsoever  required  to  be 
produced  in  application  of  this  Regulation  shall  be  exempt  from  authentication  by 
diplomatic or consular authorities. 

Article 64 

Claims, declarations or appeals submitted to an authority, institution  or tribunal of 
a Member State other than the competent  State 

Any claim,  declaration  or  appeal which  should  have been submitted,  in application  of the 
legislation  of  one  Member  State,  within  a  specified  period  to  an  authority,  institution  or 
tribunal  of  that  State  shall  be  admissible  if  it  is  submitted  within  the  same  period  to  a 
corresponding  authority,  institution  or  tribunal  of  another  Member  State.  In  such  a  case 
the  authority,  institution,  or  tribunal  receiving  the  claim,  declaration  or  appeal  shall 
forward  it  without  delay  to  the  competent  authority,  institution  or  tribunal  of the  former 
State either directly or through the competent  authorities of the Member  State concerned. 
The  date  on which  such  claims,  declarations  or  appeals were  submitted  to  the  authority, 
institution  or  tribunal  of  the  second  State  shall  be  considered  as  the  date  of  their 
submission to the competent authority, institution or tribunal. 

Article 65 

Medical  examinations 

1.  Medical  examinations  provided  for  by  the  legislation  of  one  Member  State  may  be 
carried  out  at the request  of the competent  institution,  in the territory  of another Member 
State, by the institution of the place of stay or residence of the person  entitled  to  benefits, 
under  the  conditions  laid  down  in the  Implementing  Regulation  referred  to  in Article  71 
or,  in  default  thereof,  under  the  conditions  agreed  between  the  competent  authorities  of 
the Member States concerned. 

2.  Medical  examinations  carried  out  under  the  conditions  laid  down  in  paragraph  1 shall 
be considered to have been carried out in the territory of the competent  State. 

Article 66 

52 

Transfers from one Member State to another of sums of money due pursuant to this 
Regulation 

Where  appropriate,  money  transfers  effected  in  application  of  this  Regulation  shall  be 
made in accordance  with the  relevant  agreements  in  force  between  the  Member  States 
concerned  at the time of transfer.  Where no  such agreements  are in force  between two 
Member States, the competent authorities of the said States or the authorities responsible 
for international payments shall, by mutual agreement,  determine the measures necessary 
for effecting  such transfers. 

Article 67 

Special provisions for implementing the legislations of certain Member States 

Special provisions for implementing the legislations of certain Member States necessary to 
guarantee the  rights  deriving  from  this Regulation  or  which lay  down  more  favourable 
rules for those concerned are referred to in Annex II. 

Article 68 

Collection of contributions and recovery of benefits provided but not due 

1. Collection of contributions due to an institution of one Member State and recovery of 
benefits provided by the institution of one Member  State but not due may be effected  in 
the territory  of another Member  State  in  accordance  with the  administrative  procedure 
and with the guarantees and privileges applicable to the collection of contributions due to 
the corresponding institution of the latter State and the recovery of benefits provided by it 
but not due. 

2.  Enforceable  decisions  of  the  judicial  and  administrative  authorities  relating  to  the 
collection  of  contributions,  interest  and  fixed  charges  or  to  the  recovery  of  benefits 
provided but not due pursuant to the legislation of a Member State against which there is 
no  further  appeal  shall  be  enforced  at  the  request  of  the  competent  institution  in  the 
territory  of  another Member  State in accordance  with the procedures  laid  down  by the 
legislation of that latter State. Such decisions shall be declared enforceable in the territory 
of the Member  State  in which  the  institution  addressed  by the  competent  institution is 
situated insofar as the legislation of that Member State so requires. 

3.  Claims  of  an  institution  of  a  Member  State  shall  in  enforcement,  bankruptcy  or 
settlement proceedings in the territory of another Member State enjoy the same privileges 
as the legislation of that latter Member State accords to claims of the same kind. 

4. The procedure for implementing the provisions of this Article shall be governed, where 
necessary,  by  the  Implementing  Regulation  referred  to  in  Article 71  or  by  means  of 
agreements between Member States. 

53/ 

Article  69 

Rights of institutions responsible for providing benefits  against liable third parties 

1. If a person  receives benefits  pursuant  to  the legislation  of one Member  State in respect 
of an injury  resulting from  events occurring  in the territory  of another  State,  any rights of 
the  institution  responsible  for  providing  benefits  against  a  third  party  liable  to  provide 
compensation for the injury  shall be governed by the following rules: 

(a)  where  the  institution  responsible  for  providing  benefits  is,  pursuant  to  the 
legislation which it administers,  subrogated  to the rights which the beneficiary  has 
against  the  third  party,  such  subrogation  shall  be  recognised  by  each  Member 
State; 

(b)  where  the  institution  responsible  for  providing  benefits  has  a  direct  right 
against the third party, each Member State shall recognise such rights. 

2. If a person receives benefits  pursuant to the legislation  of one Member  State in respect 
of an injury  resulting from  events occurring  in the territory  of another  Member  State, the 
provisions  of  the  said  legislation  which  determine  in  which  cases  the  civil  liability  of 
employers or of the persons employed by them is to be excluded  shall apply with regard to 
the said person or to the competent  institution. 

The provisions  of paragraph  1 shall also  apply to  any  rights  of the institution  responsible 
for  providing benefit  against  an employer  or the persons  employed  by him in cases where 
their liability is not excluded. 

3. Where, in accordance with the provisions of Article 26(2), two or more Member  States 
or  the  competent  authorities  of  those  States  have  concluded  an  agreement  to  waive 
reimbursement  between  institutions  under  their  jurisdiction,  any  rights  arising  against  a 
liable third party shall be governed by the following  rules: 

(a) Where the institution of the Member  State of stay or residence accords  benefits 
to  a  person  in  respect  of  an  injury  sustained  in  its  territory,  that  institution,  in 
accordance  with  the  provisions  of  the  legislation  which  it  administers,  shall 
exercise  the  right  to  subrogation  or  direct  action  against  the  third  party  liable  to 
provide compensation for the injury. 

(b) For application of (a): 

(i)  the  person  receiving  benefits  shall  be  deemed  to  be  insured  with  the 
institution of the place of stay or residence, and 

(ii)  that  institution  shall  be  deemed  to  be  the  institution  responsible  for 
providing benefits. 

(c) The provisions of paragraphs  1 and  2  shall remain  applicable in respect  of any 
benefits not covered by the waiver agreement  referred  to in this paragraph. 

TITLE VI 

54/ 

TRANSITIONAL AND FINAL  PROVISIONS 

Article 70 

Transitional  provisions 

1.  No  rights  shall  be  acquired  under  this  Regulation  for  any  period  prior  to  its  date  of 
application in the territory  of the Member  State concerned. 

2.  Any  period  of  insurance  and,  where  appropriate,  any  period  of  employment  or 
residence  completed  under  the  legislation  of  a  Member  State  prior  to  the  date  of 
application  of  this  Regulation  in  the  territory  of  that  Member  State  shall  be  taken  into 
consideration for  determination  of rights acquired under the provisions of this Regulation. 

3.  Subject  to  the  provisions  of  paragraph  1,  a  right  shall  be  acquired,  under  this 
Regulation,  even if it relates to  a contingency  arising prior to  its date of application  in the 
territory of the Member  State concerned. 

4. Any benefit  which has not been awarded  or which has been  suspended  by reason  of the 
nationality  or place of residence of the person involved  shall,  at the request  of the  person 
involved,  be  awarded  or  resumed  with  effect  from  the  date  of  application  of  this 
Regulation  in  the  territory  of  the  Member  State  concerned,  provided  that  the  rights  for 
which benefits were previously awarded  have not given rise to a lump-sum payment. 

5. The rights of a person to whom a pension was awarded  prior to the date of application 
of this Regulation  in the  territory  of the  Member  State  concerned  may,  at  the  request  of 
the  person  involved,  be  reviewed,  account  being  taken  of  the  provisions  of  this 
Regulation. 

6. If a request  referred  to in paragraph 4 or  5 is submitted  within two years from  the  date 
of application of this Regulation in the territory of the Member  State concerned,  the rights 
acquired pursuant to this Regulation shall have effect  from  that  date, and the provisions of 
the legislation of any Member State concerning the forfeiture  or lapse of rights may not be 
invoked against the persons involved. 

7. If a request  referred  to in paragraph 4 or 5 is submitted  after  the expiry of the two-year 
period  following  the  date  of application  of this Regulation  in the territory  of the  Member 
State concerned,  rights not forfeited  or not lapsed  shall have effect  from the date on which 
the request was submitted,  subject  to any mpre favourable  provisions under the legislation 
of any Member State. 

8.  If,  through  application  of this Regulation,  a person  was  subject  to  the  legislation  of a 
Member  State  other  than  the  one  to  whose  legislation  he  is  subject  pursuant  to  the 
provisions  of  Regulation  (EEC)  1408/71,  such  person  shall  not  be  subject  to  the 
legislation  of  that  other  Member  State  unless  he  so  requests.  Such  request  must  be 
submitted to the competent  institution  of the Member  State whose legislation is applicable 
pursuant  to  Regulation  (EEC)  1408/71  within  two  years  from  the  date  of  application  of 
this Regulation. 

55/ 

Article 71 

Implementing  Regulation 

A subsequent  Regulation  shall lay down the  procedure  for  implementing  this  Regulation. 
The said Implementing Regulation  must  be adopted  no later than  one year  after  adoption 
of this Regulation. 

Article 72 

Entry into force 

This  Regulation  shall  enter  into  force  on  the  twentieth  day  after  its  publication  in  the 
Official Journal of the European Communities.  It shall apply from the date of entry into 
force  of the Implementing Regulation mentioned in Article 71. 

Article 73 

Repeal 

Council  Regulation  (EEC)  No  1408/71  of  14  June  1971  on  the  application  of  social 
security schemes to  employed persons, to  self-employed  persons,  and to members of their 
families  moving  within  the  Community8,  and  Council  Regulation  (EEC)  No  574/72  of 
21 March  1972 fixing  the procedure  for  implementing  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 Community9 are herewith repealed. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all  Member 
States. 

8 OJ L 149, 05..07.1971, p. 2. R. last amended by 

9 OJ L 74. 27..03.1972, p. 1." R. last amended by .. 

-56-

Special  benefits 

A. Belgium 

B. Denmark 

C. Germany 

D. Spain 

E. France 

F. Greece 

G. Ireland 

H. Italy 

I. Luxembourg 

J. Netherlands 

K. Austria 

ANNEX I 

(Article 55) 

57, 

L. Portugal 

M. Finland 

N.  Sweden 

O. United Kingdom 

58 

ANNEX II 

(Article 67) 

Special provisions for implementing the legislations of certain Member States 

A. Bielgium 

B. Denmark 

C. Germany 

D. Spain 

E. France 

F. Greece 

G. Ireland 

H. Italy 

I. Luxembourg 

J. Netherlands 

K. Austria 

L. Portugal 

59/ 

M  Finland 

N.  Sweden 

O. United Kingdom 

60/ 

FINANCIAL STATEMENT 

1. 

TITLE OF OPERATION 

Proposal  to  simplify  the  Community  rules  on  coordination  of  social  security  schemes 
(simplification  of  Regulations  1408/71  and  574/72,  as  last  amended  by  Regulation 
1606/98 of 29 June  1998, OJ L 209, p. 1), and in particular Article 62. 

2. 

BUDGET HEADING(S)  INVOLVED 

B3-4110 (as regards Regulations  1408/71 and 574/72, V/E/3), Part A (Title Al,  A2, A4, 
A5, A7: expenditure on staff),  A-7031 (Commission meetings pursuant to Articles  56-58 
of the proposal). 

3. 

LEGAL BASIS 

Articles 8a, 48, 51 and 235 of the Treaty. 

4. 

DESCRIPTION OF OPERATION 

4.1 

General objective 

This proposal aims to  simplify  the Community  rules on coordination  of  national 
social  security  schemes.  Administrative  monitoring  of  implementation  of  the 
Regulation  will  be  undertaken  by  the  European  Commission  (Unit  V/E/3),  and 
by the  Administrative  Commission  on  Social  Security  for  Migrant  Workers  and 
the  Technical  Commission  (see  Articles  56-58  of  the  proposal)  in  respect  of 
national  problems.  In  order  to  facilitate  administrative  monitoring  of  the 
Regulation  and  improve  the  service  provided  for  persons  who  have  exercised 
their rights pursuant  to Articles  8a and  48 of the Treaty, there will be  a need  to 
engage  in  activities  aimed  at  improving  exchanges  of  information  between  the 
social  security  authorities  and  institutions  of  the  Member  States,  including  the 
electronic exchange of data, and in any other activity such as meetings of experts 
and  studies  and  activities  to  inform  the  citizens  and  professional  groups 
concerned  about  the rights  deriving from the Regulation,  in particular by  means 
of  publications  and  organising  conferences  and  seminars  (see  Article  62  of  the 
proposal). 

4.2 

Period covered and arrangements for renewal 

Open-ended  operation. 

5. 

CLASSIFICATION  OF EXPENDITURE  OR REVENUE 

5.1 

Compulsory/Non-compulsory expenditure 

£>1 

5.2 

Differentiated/Non-difforontiatod  appropriations 

5.3 

Type of revenue involved 

None 

6. 

TYPE OF EXPENDITURE OR REVENUE 

—100  % subsidy, 

-  Subsidy for joint financing with other sources in the public  and/or private sector. 

—Interest subsidy, 

-  Other: contracts (in particular  regarding publications,  organisation of seminars  and 

conferences and studies) 

-  Should the operation prove  an economic success, is there provision for  all or part  of 

the Community contribution to be reimbursed? No 

-  Will the proposed  operation cause any change in the level of revenue? If so, what sort 

of change and what type of revenue is involved? No 

7. 

FINANCIAL IMPACT 

7.1  Method  of  calculating  total  cost  of  operation  (relation  between  individual 

costs and total cost) 

Estimate based on expenditure in previous years. 

7.2 

Itemised breakdown of cost 

CA in ECU millior 

i (current prices) 

Breakdown 

Budget 
yearn 

n +1 

n + 2 

n + 3 

n + 4 

Subsidy -  conferences 
Subsidy - exchanges 
Subsidy - TC  projects 
Network 
Publication 
Technical  assistance 

TOTAL 

0.3 
0.1 
0.2 
0.2 
0.1 
0.2 

1.1 

0.35 
0.15 
0.2 
0.2 
0.1 
0.2 

0.35 
0.15 
0.2 
0.2 
0.1 
0.2 

0.35 
0.15 
0.2 
0.2 
0.1 
0.2 

0.35 
0.15 
0.2 
0.2 
0.1 
0.2 

n + 5 
and 
subs. 
yrs 
0.35 
0.15 
0.2 
0.2 
0.1 
0.2 

TOTAL 

2.05 
0.85 
1.2 
1.2 
0.6 
1.2 

1.2 

1.2 

1.2 

1.2 

1.2 

7.1 

&9_ 

7.3 

Operating  expenditure  on  studies,  experts,  etc.  included  in  Part  B  of  the 
budget 

CA in ECU million (current prices) 

Budget 
yearn 

n +1 

n + 2 

n + 3 

n + 4 

TOTAL 

n + 5 
and 
subs, 
yrs 

- Studies 
- Experts' meetings 
- Conference  and congress 
- Information  and publications 

0.1 

0.1 

0.1 

0.1 

0.1 

0.1 

0.6 

TOTAL 

0.1 

0.1 

0.1 

0.1 

0.1 

0.1 

0.6 

7.4 

Schedule of commitment/payment  appropriations 

CA in ECU million 

Budget 
yearn 

n +1 

n + 2 

n + 3 

n + 4 

1.1 

1.2 

1.2 

1.2 

1.2 

n + 5 
and 
subs, 
yrs 

1.2 

TOTAL 

7.1 

0.8 

1.2 

1.2 

1.2 

1.2 

Commitment 
appropriations 

Payment 
appropriations 

Budget year n 
n +1 
n + 2 
n + 3 
n + 4 
n + 5 
and subs, yrs 

TOTAL 

0.8 

1.2 

1.2 

1.2 

1.2 

1.5 
1.5 

7.1 

8. 

FRAUD-PREVENTION  MEASURES 

-  Specific control  measures envisaged: the provisions  of the Financial Regulation  will 
apply.  The activities  planned  will  not  call for  any special fraud-prevention  measures. 
The  activities  will  be  monitored  in  close  cooperation  with  the  Member  States 
represented on the Administrative Commission and the Technical Commission. 

ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

9.1 

Specific  and quantifiable  objectives; target population 

-  Specific objectives:  links with general objective: informing the general  public 
about  the  Community provisions  concerning coordination of social  security 
schemes; support for  the competent institutions  in the Member States so  as  to 

G-)> 

improve  electronic exchanges  of data  between the competent  institutions  and 
thus expedite the granting  of social benefits to migrant workers; exchanges  of 
officials between competent institutions are also included. 

the  Community's 

-  Target population:  distinguish  as  applicable for  each  objective;  indicate  the 
the 
end-beneficiaries  of 
intermediaries involved: European populace;  rapid granting of social  benefits 
to people  making use of their right to free  movement for  workers. 
Competent institutions: reduction of operating expenses and better 
application of Community law; also a means of combating cross-border 
fraud. 

financial  contribution  and 

9.2 

Grounds for the operation 

-  Need for  Community  financial  aid,  especially  in  the  light  of  the  subsidiarity 
principle:  coordination  of  social  security  schemes  is  feasible  only  at 
Community level 

-  Choice of ways and means 

•  advantages over possible  alternatives (comparative advantages) 
•  explanatory reference to similar Community or national operations 
•  spin-off and multiplier effects expected 

-  Main  factors  of  uncertainty  which  could  affect  the  specific  results  of  the 

operation. 

9.3  Monitoring and evaluation of the operation 

-  Performance  indicators 

•  output indicators (measuring activities undertaken) 
• 

impact indicators (measuring performance against objectives) 

-  Details  and frequency  of planned  evaluations 

-  Assessment  of  the  results  obtained  (where  an  existing  operation  is  being 
continued or renewed). The operations will be monitored in close  cooperation 
with  the  members  of  the  Administrative  Commission  and  the  Technical 
Commission. 
Each operation will state the objectives to be attained,  and the description of 
the means will make it possible  to verify whether the objective has been 
attained. 

£Cf 

10.  ADMINISTRATIVE  EXPENDITURE  ( P A RT  A  OF  S E C T I ON  III  OF THE  GENERAL  B U D G E T) 

This  section  of  the financial  statement  must  be  sent  simultaneously 
DGIX  will  then forward 

it to DG  XIX  with  its  opinion. 

to  DGs  IX  and  XIX; 

Actual  assembly  of  the  administrative  resources  necessary  will  be  determined  in  the 
Commission's  annual  decision  on  resource  allocation,  taking  particular  account  of  the 
additional  amounts  and  staff which will  have been  accorded  by the budgetary  authority. 

10.1 

Impact  on the number  of  posts 

Type of post 

Staff given the task of 
administering the operation 
Permanent 
posts 

Temporary 
posts 

Officials  or 
temporary  staff 

Other resources 

A 
B 
C 

Total 
As regards the add 

7 
2 
5 

14 

1 

1 
2 (SNEl) 
4 

of which 

duration 

open-ended 

through 
recourse to 
additional 
resources 

through use of 
existing 
resources 
within the DG 
or department 
involved 
8 
2 
6 
2 
14 

itiona 

1 resources, indicate the rate at which they will need to be made avai 

able. 

[! Seconded National Expert] 

10.2  Overall  financial  impact  of the  additional  human  resources 

. 

Officials 
Temporary  staff 
Other resources (indicate 
budget heading) 

. 

, 

Amounts 

(ECU) 
Method of calculation 

1 728 000 

16 * 108 000 =  1  728 000 

74 000 

2 * 37  000 = 74 000 under heading A-7003  (SNE) 

Total  1 

1 802 000  | 

6Ç 

10.3 

Increase in other administrative expenditure due to the operation 

Budget heading 
(N° and description) 
A-7031, meetings of the 
Administrative 
Commission on Social 
Security for Migrant 
Workers (CA.SS.TM.), 
Article 56 
A-7031, Meetings of the 
Technical Commission on 
Data Processing, 
Article 58 

Amounts 

48 750 

(ECU) 
Method of calculation 

ECU 650/person * 15 experts per meeting * 5 
meetings per year = 650 * 15 * 5 = 48 750 

39 000 

ECU 650/person * 15 experts per meeting * 5 
meetings per year = 650 * 15 * 5 = 39 000 

Expenditure covered by the existing resources within the DG concerned. 

Total] 

87 750 

| 

a< 

ISSN 0254-1475 

COM(98) 779 final 

DOCUMENTS 

EN 

05  04  10  06 

Catalogue  number  :  CB-CO-98-785-EN-C 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

6f