Opinion of the Economic and Social Committee on the 'Proposal for a Council Regulation (EC) amending Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community and Regulation (EEC) No 574/72 laying down the procedure for implementing Regulation (EEC) No 1408/71'
Date: 1999-01-27
Institutions: European Economic and Social Committee
Subjects: ESC opinion, labour mobility, self-employment, social security, wage earner

12.4.1999

EN

Official Journal of the European Communities

C 101/41

companies concerned, the ESC recommends that these
terms be deleted from the articles of the proposal and

that more detailed guidelines be provided at a later
stage.

Brussels, 27 January 1999.

The President

of the Economic and Social Committee

Beatrice RANGONI MACHIAVELLI

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Regulation
(EC) amending Regulation (EEC) No 1408/71 on the application of social security schemes to
employed persons, to self-employed persons and to members of their families moving within
the Community and Regulation (EEC) No 574/72 laying down the procedure for implementing
Regulation (EEC) No 1408/71’

(1999/C 101/11)

On 29 October 1998, the Council decided to consult the Economic and Social Committee,
under Article 198 of the Treaty establishing the European Community, on the above-mentioned
proposal.

The Section for Employment, Social Affairs and Citizenship, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 7 January 1999. The
rapporteur was Mr Lemmetty.

At its 360th plenary session (meeting of 27 January 1999) the Economic and Social Committee
adopted the following opinion by 124 votes in favour and two votes against, with two
abstentions.

1. Gist of the Commission proposal

1.1.
The Commission has put forward a proposal for
a Council Regulation (EC) amending Regulation (EEC)
No 1408/71 on the application of social security schemes
to employed persons, to self-employed persons and to
members of their families moving within the Community
and for Miscellaneous Amendments in 1998 to Regu-
lation (EEC) No 574/72 laying down the procedure
for implementing Regulation (EEC) No 1408/71. The
purpose of the proposal is to update these Community
Regulations to take account of changes to national
legislation, certain bilateral agreements concluded
between Member States and the possibility of amend-
ments to the Annexes of the implementing Regulation
being made by the Commission.
1.1.1.
Under the proposal, orphan’s pension benefits,
which are currently calculated on the basis of the
provisions of Chapter 8 of Regulation No 1408/71,
would be transferred to Chapter 3 and thus become
subject to the provisions on pensions. The rules provided
for in Chapter 8 would then only apply to family
allowances for orphans.
1.1.2.
It is also proposed that Article 122 of the
implementing Regulation No 574/72 be amended to
enable the provisions contained in the Annexes listed in
Article 122 to be amended by a Commission Regulation
rather than by the standard Regulation procedure
applied at present.

1.1.3.
The other proposed amendments concern tech-
nical changes and changes to the provisions on Member
States in the Annexes.

2. General comments

The Committee welcomes the proposal, subject
2.1.
to certain comments. The Committee would reiterate
its view that proposals must satisfy the need to reform
and update regulations that are designed to facilitate
coordination of social security systems.

2.2. However, the Commission has very little to say
about the reasons for the proposal and its effects, and it
is not clear from the proposal what the actual effects of
the amendments are.

2.3.
The Committee endorses the stated aim to
simplify and speed up the administrative procedure. The
Committee has suggested this on a number of occasions
and hopes that the simplification of the entire body of
Community law will be continued. The Committee also
awaits the Commission proposal for an overall reform
of the regulation. Simplification must not, however,
take place at the expense of beneficiaries.

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Official Journal of the European Communities

12.4.1999

3. Specific comments on the articles

3.1. Article 1

3.1.1. A m e n d m e n t s t o R e g u l a t i o n ( E E C )

N o 1 4 0 8 / 7 1 (points 1-3)

3.1.1.1.
At present, common rules in respect of
orphan’s pensions and family allowances for orphans
are contained in the same Chapter (Chapter 8). However,
the Commission takes the view that interpretation of
this Chapter by the Court has given rise to problems,
particularly from the administrative point of view,
and it therefore proposes that orphan’s pensions be
transferred to Chapter 3. As a result of this amendment,
orphan’s pensions would become subject to the pro-
visions applicable to other pensions, which means that
orphan’s pensions would be calculated as Pro-Rata
pensions (1). The ruler governing health care benefits for
pensioners would be applied to orphans.

3.1.1.2.
The Committee feels that the proposal can
be justified on administrative grounds, since orphan’s
pensions would be treated in the same way as other
pensions. From the pensioner’s point of view, the
proposed amendment could, in some cases, lead to a
situation where the pensioner receives a pension from
several Member States at the same time rather than just
one pension as under the existing rules.

The Committee would also draw attention
3.1.1.3.
to the fact that the proposal does not contain any special
transitional provisions in respect of the above-mentioned
amendment. The Committee would stress that changing
the rules for calculating pensions must not lead to a loss
of benefits. Pensioners should have the right to choose
the most advantageous scheme.

Annex IIa refers to special non-contributory benefits
which are granted only to beneficiaries resident in the
Member State. Given the considerable importance of
Annex IIa for beneficiaries and Member States, the
Committee wishes to make it known that it will follow
the discussions on the amendment of Annex IIa very
closely.

3.2. Article 2

3.2.1. P r o p o s e d

a m e n d m e n t s

t o R e g u -

l a t i o n ( E E C ) N o

5 7 4 / 7 2 (point 1)

The Commission proposal would give the Commission
the power to amend the Annexes of the implementing
Regulation at the request of the Member State or
competent authorities. It would be possible to amend
all the Annexes with a Commission regulation after the
opinion of the Administrative Commission has been
obtained.

The Committee considers this proposal to be justified
and supports it.

3.2.2. P r o p o s e d a m e n d m e n t s t o A n n e x e s

(points 2 and 3)

The proposed amendments are a result of bilateral
agreements concluded between Member States or admin-
istrative reorganization in Member States, and the
Committee has no comments to make on them.

3.3. Article 3

3.3.1.
Although this is a routine proposal as regards
the entry into force of the amended Regulation, the
Committee has certain comments to make about it (see
point 3.1.1.3 above).

3.1.2. P r o p o s e d a m e n d m e n t s t o A n n e x e s

(points 4 and 5)

4. Conclusions

The proposed amendments are based on changes made
to legislation in Member States or to bilateral agreements
between Member States.

(1) A Pro Rata pension is one calculated on the basis of a ratio
obtained by comparing the amount of pensionable time
completed in a Member State to the total amount of time
completed in all Member States.

The Economic and Social Committee endorses the
proposed amendments, subject to the comments made
above. The proposed changes to administrative pro-
cedure are justified, but changing the way orphan’s
pensions are calculated must not lead to a loss of
benefits. In addition, the Committee would reiterate the
need to justify the proposed amendments in a clearer
and more detailed fashion so as to make it easier to
understand their purpose and consequences.

Brussels, 27 January 1999.

The President

of the Economic and Social Committee

Beatrice RANGONI MACHIAVELLI