Proposal for a Council Decision on the position to be taken by the Community within the Association Council established by the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, on the other part, with regard to the adoption of provisions for the co-ordination of social security schemes
Date: 1999-12-20
Institutions: European Commission
Subjects: Bulgaria, association agreement (EU), social security, social-security harmonisation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 20.12.1999
COM(1999) 677 final

Proposal for a

COUNCIL DECISION

on the position to be taken by the Community within the Association Council
established by the Europe Agreement between the European Communities and
their Member States, of the one part, and the Republic of Bulgaria, on the other
part, with regard to the adoption of provisions for the co-ordination of social
security schemes

(presented by the Commission)

EXPLANATORY MEMORANDUM

Context

the Association Council shall by decision adopt

The Europe Agreement concluded between the Community and Bulgaria1 contains
provisions on coordination of social security systems. In accordance with the Europe
Agreement,
the appropriate
provisions to implement the above objective. A draft Association Council decision for
that purpose is attached, which is the same for all associated countries of central and
eastern Europe. Member States have been consulted within the Administrative
Commission for Social Security of Migrant Workers on 20 April 1999. Candidate
countries have also been informed in a meeting held on 28 May 1999.

One of the objectives of the Europe Agreements is to provide an appropriate
framework for the associated countries' gradual integration into the Community. The
Europe Agreements with the countries of Central and Eastern Europe are therefore a
means towards their joining the Community. This ultimate goal is taken into account
in the attached draft Association Council decision, insofar as it is based on the acquis
communautaire in this field, especially Regulation 1408/712. However,
to take
account of Ruling No 30/98 by Hungary's Constitutional Court, no direct reference to
the acquis communautaire3 has been used. Instead, the draft decision contains an
Annex I consisting of the Regulation 1408/71 text which allows to apply rules
matching those of Community law in this regard.

The Community has already found it necessary in the past to draw up provisions
similar to those which need to be adopted for implementation of the above mentioned
agreement, in particular Decision No 3/80 of the EEC-Turkey Association Council4
derived from Article 39 of the Additional Protocol to the Ankara Agreement.

Legal Basis

The draft Association Council decision is based on Articles 39, 40 and 41 of the
Europe Agreement with Bulgaria

The Europe Agreement provides for the establishment of a coordination system
founded in particular on the following:

1. For nationals of the associated countries of central and eastern Europe legally

employed in a Member State and the members of their family:

(a)

1

2

3

4

aggregation of insurance, employment or residence periods completed under
the legislation of one or more Member States for acquisition of entitlement to
pensions and annuities in respect of old age, invalidity and death and to
medical care;

OJ L 358/94 of 31 December 1994.
See codified version, OJ L 28 of 30 January 1997.
In its judgement, the Hungarian court ruled as unconstitutional the Hungarian authorities'
application of Community law provisions in whose formation they had not participated.
Decision No 3/80 of 19 September 1980, OJ C 110 of 25 April 1983.

2

(b)

(c)

2.

exportation, to the associated country of origin, of pensions or annuities in
respect of old age, death, industrial accident or occupational disease, or of
invalidity resulting therefrom;

payment of family allowances for family members legally residing with the
worker.

For workers who are nationals of a Member State and legally employed in the
territory of an associated country and the members of their family:

affording, by analogy, the advantages referred to in 1(b) and 1(c) above.

It should be stressed that - in keeping with the Europe Agreement provisions - the
draft decisions will in no way affect the rights and obligations arising from bilateral
agreements concluded between a Member State and an associated country where such
bilateral agreements provide for more favorable treatment of those concerned.

Proposal

The attached draft Association Council decision contains (i) provisions concerning the
obligations incumbent on each Contracting Party and (ii) provisions dealing solely
with Member States' obligations with respect to associated country workers:

- Parts I, III, and IV relate to the Member States and associated countries;

- Part II is applicable by Member States alone.

In view of the above, the Commission invites the Council to approve the attached
proposal for an Association Council Decision.

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Proposal for a

COUNCIL DECISION

On the position to be taken by the Community within the Association Council
established by the Europe Agreement between the European Communities and
their Member States, of the one part, and the Republic of Bulgaria, on the other
part, with regard to the adoption of provisions for the co-ordination of social
security schemes

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 42 thereof,

Having regard to the proposal of the Commission,

Whereas Article 40 of
the Europe Agreement signed between the European
Communities and their Member States, of the one part, and the Republic of Bulgaria,
on the other part, lays down that the Association Council shall by decision adopt the
appropriate provisions to implement the objective set out Article 39 thereof,

HAS DECIDED AS FOLLOWS:

The position to be taken by the Community within the Association Council
established by the Europe Agreement between the European Communities and their
Member States, of the one part and the Republic of Bulgaria, on the other part, with
regard to the provisions on the coordination of social security systems contained in
the Europe Agreement shall be based on the draft decision of the Association Council
annexed to this decision.

Done at Brussels,

For the Council
The President

4

ANNEX

ASSOCIATION BETWEEN THE
EUROPEAN UNION
AND THE REPUBLIC OF BULGARIA

- The Association Council –

DECISION No…/99 OF THE ASSOCIATION COUNCIL

Established by the Europe Agreement between the European Communities and their
Member States, of the one part, and the Republic of Bulgaria, of the other part,

of …

With regard to the provisions on coordination of the social security schemes
contained in the Europe Agreement

THE ASSOCIATION COUNCIL,

Having regard to the agreement creating an association between the European
Communities and their Member States, of the one part, and the Republic of Bulgaria,
of the other part, and in particular Articles 39, 40 and 41 thereof,

Whereas Article 39 of the said agreement provides for coordination of the social
security schemes of Bulgaria and the Members States and lays down the principles for
such coordination;

Whereas, Article 40 of the said agreement provides that the Association Council shall
by decision adopt the appropriate provisions to implement the objective set out in
Article 39,

HAS DECIDED AS FOLLOWS:

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PART I - GENERAL PROVISIONS

Article 1

Definitions

For the purpose of application of this Decision:

a) “worker” means any person defined as an employed person within the meaning of
Article 1 of Annex I or within the meaning of the legislation of Bulgaria.

"stay",

b) “frontier worker”, “seasonal worker”, “member of the family”, “survivor”,
"residence",
“period of
employment”, “period of residence”, “benefits and pensions”, "family benefits and
family allowances”, "death grants" have the meaning assigned to them in Article 1 of
Annex I.

“competent State”,

“period of

insurance”,

"legislation",

c)
institution",
"institution of the place of residence", "competent State" have, respectively for each
Member State and for Bulgaria, the meaning assigned to them in Article 1 of Annex I.

"institution",

"competent

"competent

authority",

Article 2

Persons covered

Save as otherwise provided for, this Decision shall apply:

a) to workers who are nationals of Bulgaria legally employed in a Member State and
who are or have been subject to the legislation of one or more Member States, and to
the members of their family and to their survivors;

b) to workers who are nationals of a Member State legally employed in Bulgaria and
who are or have been subject to the legislation of Bulgaria, and to the members of
their family and to their survivors;

Article 3

Equality of treatment

1. Subject to the special provisions of this Decision, the nationals of Bulgaria to
whom the provisions of this Decision apply and who are resident in the territory of a
Member State shall be subject to the same obligations and enjoy the same benefits
under the legislation of any Member State as nationals of the said State.

2. Similarly, subject to the special provisions contained in this Decision, the nationals
of a Member State to whom the provisions of this Decision apply and who are
resident in Bulgaria shall be subject to the same obligations and enjoy the same
benefits under the legislation of Bulgaria as nationals of the said country.

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3. The provisions of paragraph 1 and 2 shall apply to the right to elect members of the
organs of social security institutions or to participate in their nomination, but shall not
affect the legislative provisions of any Member State relating to eligibility or methods
of nomination of persons concerned to those organs.

Article 4

Matters covered

1. Taking account of the special provisions which it contains, this Decision shall
apply to all legislation concerning the following branches of social security:

(a) sickness and maternity benefits;

(b) invalidity benefits;

(c) old-age benefits;

(d) survivors' benefits;

(e) benefits in respect of accidents at work and occupational diseases;

(f) death grants;

(g) unemployment benefits;

(h) family benefits.

2. This Decision shall apply to all general and special social security schemes,
whether contributory or non-contributory, and to schemes concerning the liability of
an employer or shipowner in respect of the benefits referred to in paragraph 1.

2 a. This Decision shall also apply to special non-contributory benefits which are
provided under legislation or schemes other than those referred to in paragraph 1 or
excluded by virtue of paragraph 4, where such benefits are intended:

a) either to provide supplementary, substitute or ancillary cover against the risks
covered by the branches of social security referred to in paragraph 1 (a) to (f);

b) solely as specific protection for the disabled.

2 b. This Decision shall not apply to the provisions in the legislation of a Member
State or of Bulgaria concerning the special non-contributory benefits referred to in
Annex II.B], the validity of which is confined to part of its territory.

3. The provisions of Part II, Title II, of this Decision shall not, however, affect the
provisions under any legislation concerning a shipowner's liability.

4. This Decision shall not apply to social and medical assistance, to benefit schemes
for victims of war or its consequences, or to special schemes for civil servants and
persons treated as such.

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Article 5

Declarations by the Contracting Parties on the scope of this Decision

The Member States and Bulgaria shall specify the legislation and schemes referred to
in Article 4(1) and (2), the special non-contributory benefits referred to in Article 4(2
a), the minimum benefits referred to in Article 50 of Annex I in declarations to be
notified and published in accordance with Article 19.

Article 6

Waiving of residence clauses - Effect of compulsory insurance on reimbursement
of contributions

1. Save as otherwise provided for in this Decision, old-age or survivors' benefits,
pensions for accidents at work or occupational diseases, and cash benefits for
invalidity arising therefrom, acquired respectively under the legislation of one or more
Member States or of Bulgaria shall not be subject to any reduction, modification,
suspension, withdrawal or confiscation by reason of the fact that the recipient resides
respectively in the territory of Bulgaria or of a Member State other than that in which
the institution responsible for payment is situated.

2. Where under the legislation of a Member State or of Bulgaria reimbursement of
contributions is conditional upon the person concerned having ceased to be subject to
compulsory insurance, this condition shall not be considered satisfied as long as the
person concerned is subject to compulsory insurance as a worker under the legislation
of another Contracting Party.

Article 7

Special non-contributory benefits

1. Notwithstanding the provisions of Article 6 and Part II, Title II, persons to whom
this Decision applies shall be granted the special non-contributory cash benefits
referred to in Article 4(2 a) exclusively in the territory of the State in which they
reside, in accordance with the legislation of that State, provided that such benefits are
mentioned in Annex II. Such benefits shall be granted by and at the expense of the
institution of the place of residence.

2. Where entitlement to a benefit covered by paragraph 1 but granted in the form of a
supplement is subject, under the legislation of a Member State or of Bulgaria, to
receipt of a benefit covered by Article 4(1)(a) to (f), and no such benefit is due under
that legislation, any corresponding benefit granted under the legislation of another
Contracting Party shall be treated as a benefit granted under the legislation of the first
State for the purposes of entitlement to the supplement.

3. Where the granting of a disability or invalidity benefit covered by paragraph 1 is
subject, under the legislation of a Member State or of Bulgaria, to the condition that
the disability or invalidity should be diagnosed for the first time in the territory of that

8

Member State, this condition shall be deemed to be fulfilled where such diagnosis is
made for the first time in the territory of another Contracting Party.

Article 8

Revalorisation of benefits

Rules for revalorisation provided for by the legislation of a Member State or of
Bulgaria shall apply to benefits due under that legislation taking into account the
provisions of this Decision.

Article 9

Prevention of overlapping of benefits

The provisions of Article 12 of Annex I shall apply for the purposes of applying the
provisions on benefit reduction, suspension or withdrawal contained in the legislation
of a Member State or of Bulgaria in respect of benefits calculated in accordance with
this Decision.

PART II - PROVISIONS GOVERNING APPLICATION OF THE SOCIAL
SECURITY SCHEMES OF MEMBER STATES TO WORKERS FROM
BULGARIA

TITLE I - DETERMINATION OF THE LEGISLATION APPLICABLE

Article 10

Workers who are nationals of Bulgaria to which this Decision applies shall be subject
to the legislation of a single Member State only. That legislation shall be determined
in accordance with the provisions of Articles 13, 14, 14b, 14c, 14d, 15, 17 and 17a of
Annex I.

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TITLE II - SPECIAL PROVISIONS RELATING TO THE VARIOUS
CATEGORIES OF BENEFITS

CHAPTER 1

SICKNESS AND MATERNITY

Article 11

Workers who are nationals of Bulgaria and the members of their family to whom this
Decision applies shall be entitled to sickness benefits in accordance with the terms
and conditions stipulated in Articles 18 to 36 of Annex I.

CHAPTER 2

INVALIDITY

Article 12

Workers who are nationals of Bulgaria to whom this Decision applies shall be entitled
to invalidity benefits in accordance with the terms and conditions stipulated in
Articles 37 to 43 of Annex I.

CHAPTER 3

OLD AGE AND DEATH (PENSIONS)

Article 13

Workers who are nationals of Bulgaria to whom this Decision applies shall be entitled
to old-age benefits in accordance with the terms and conditions stipulated in Articles
44 to 51 of Annex I.

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CHAPTER 4

ACCIDENTS AT WORK AND OCCUPATIONAL DISEASES

Article 14

Workers who are nationals of Bulgaria to whom this Decision applies shall be entitled
to benefits in respect of accidents at work and occupational diseases in accordance
with the terms and conditions stipulated in Articles 52 to 63 of Annex I.

CHAPTER 5

DEATH GRANTS

Article 15

Workers who are nationals of Bulgaria to whom this Decision applies shall be entitled
to death grants in accordance with the terms and conditions stipulated in Articles 65
and 66 of Annex I.

CHAPTER 6

FAMILY BENEFITS

Article 16

Workers who are nationals of Bulgaria to whom this Decision applies shall be entitled
to family benefits for the members of their family legally resident in the territory of
the competent State in accordance with the terms and conditions stipulated in the
legislation of that State.

PART III - MISCELLANEOUS PROVISIONS

Article 17

For the purposes of implementing this Decision, the provisions of Articles 84 to 93 of
Annex I shall apply to relations between the Contracting Parties.

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PART IV - TRANSITIONAL AND FINAL PROVISIONS

Article 18

Transitional provisions

1. No right shall be acquired under this Decision in respect of a period prior to the
date on which it enters into force.

2. All periods of insurance and, where appropriate, all periods of employment or
residence completed under the legislation of a Member State prior to the date on
which this Decision enters into force shall be taken into consideration for the
determination of rights acquired under the provisions of Part II of this Decision.

3. Subject to the provisions of paragraph 1, a right shall be acquired under this
Decision even though it relates to a contingency which materialised prior to the date
on which this Decision enters into force.

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 concerned shall, on the application
of the person concerned, be awarded or resumed with effect from the date on which
this Decision enters into force, provided that the rights previously determined 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 on which
this Decision enters into force may, on the application of the person concerned, be
reviewed, taking into account the provisions of this Regulation .

6. If an application referred to in paragraph 4 or 5 is submitted within two years from
the date on which this Decision enters into force, the rights acquired under this
Decision shall have effect from that date, and the provisions of the legislation of any
Member State or of Bulgaria concerning the forfeiture or limitation of rights may not
be invoked against the persons concerned.

7. If an application referred to in paragraph 4 or 5 is submitted after the expiry of the
two-year period following the date on which this Decision enters into force, rights
which have not been forfeited or which are not time-barred shall have effect from the
date on which the application was submitted, except where more favorable provisions
of the legislation of any Member State or of Bulgaria apply.

Article 19

1. The notifications referred to in Article 5 shall be addressed to the President of the
Association Council. They shall indicate the date of entry into force of the laws and
schemes in question.

2. Notifications received in accordance with the provisions of paragraph 1 shall be
published in the Official Journal of the European Communities.

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Article 20

Two or more Member States, or Bulgaria and one or more Member States may, where
necessary, conclude agreements designed to supplement the administrative procedures
for implementing this Decision.

Article 21

Each Contracting Party shall, each to the extent to which it is concerned, take the
necessary steps to implement this Decision.

Done at,….

For the Association Council,

.......

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ANNEX I

Annex I contains the text of Regulation 1408/71 in its codified form as published on
30 January 1997 (OJ L 28).

14

A] Special non-contributory benefits

ANNEX II

A. Belgium

…..

B. Denmark

…..

C. Germany

…..

D. Spain

…..

E. France

…..

F. Greece

…..

G. Ireland

…..

H. Italy

…..

I. Luxembourg

…..

J. Netherlands

…..

K. Austria

…..

L. Portugal

…..

15

M. Finland

…..

N. Sweden

…..

O. United Kingdom

…..

P. Bulgaria

…..

B] Special non-contributory benefits within the meaning of Article 4(2 b) which
do not fall within the scope of the Decision

A. Belgium

…..

B. Denmark

…..

C. Germany

…..

D. Spain

…..

E. France

…..

F. Greece

…..

G. Ireland

16

…..

H. Italy

…..

I. Luxembourg

…..

J. Netherlands

…..

K. Austria

…..

L. Portugal

…..

M. Finland

…..

N. Sweden

…..

O. United Kingdom

…..

P. Bulgaria

…..

17