Proposal for a Regulation of the European Parliament and of the Council 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: 2003-07-31
Institutions: European Commission
Subjects: social legislation, social security, social security legislation, social-security benefit, social-security harmonisation, worker (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 31.7.2003
COM(2003) 468 final

2003/0184 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

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

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. 

INTRODUCTION

Regulations  (EEC)  Nos  1408/71  and  574/72  were  updated  by  Regulation  (EC)  No  118/971
and  most  recently  amended  by  Commission  Regulation  (EC)  No  89/20012  and  Regulation
(EC) No 1386/20013 of the European Parliament and of the Council.

This proposal is intended to update these Community Regulations to take account of changes
in  national  legislation,  clarify  the  legal  situation  with  regard  to  certain  Articles  of  the
Regulations and take account of recent developments in the case law of the Court of Justice of
the European Communities.

2. 

COMMENTS ON THE ARTICLES

Article 1

Amendment of Regulation (EEC) No 1408/71

Amendment of Article 4(2a)

Bearing  in  mind  the  recent  case  law  of  the  Court  of  Justice  of  the  European
Communities in its judgements of 8 March 2001 in case C-215/99, Friedrich Jauch v
Pensionsversicherungsanstalt der Arbeiter (ECR 2001 I-1901) and of 31 May 2001
in  case  C-43/99,  Ghislain  Leclere,  Alina  Deaconescu  and  Caisse  nationale  des
prestations  familiales  (ECR  2001  I-4265),  the  need  to  specify  the  elements
comprising special non-contributory cash benefits is apparent.

The Court of Justice declared in its judgement of 8 March 2001 in the Jauch case that
it  was  not  sufficient  for  a  benefit  to  be  entered  in  Annex  IIa  for  it  to  qualify  as  a
"special non-contributory benefit" and that the elements characterising such benefits
(special and non-contributory) should be examined.

The  Court  of  Justice  also  considered  that  derogations  from  the  principle  of
exportability  of  social  security  benefits,  such  as  the  provisions  coordinating  the
special non-contributory benefits laid down in Article 10a of Regulation No 1408/71,
needed  to  be  interpreted  strictly.  This  means  that  they  can  only  apply  to  benefits
meeting the conditions laid down by them. It follows that Article 10a can only refer
to those benefits meeting the conditions laid down in Article 4(2a) of Regulation No
1408/71,  namely  benefits  with  both  a  special  and  non-contributory  character  and
which are mentioned in Annex IIa to the Regulation.

Thus  the  Court  of  Justice  invalidated  the  entry  of  Austrian  care  benefit  (care
allowance)  in  Annex  IIa  to  Regulation  (EEC)  No  1408/71,  denying  it  a  special
character as the conditions for granting the care allowance and the way in which it is
financed cannot have the intention or the effect of changing the character of the care

1

2

3

OJ L 28, 30.1.1997.
OJ L 14, 18.1.2001.
OJ L 187, 10.7.2001.

2

                                                
allowance as analysed in the judgement of 5 March 1998 in case C-160/96, Manfred
Molenaar,  Barbara  Fath-Molenaar  and  Allgemeine  Ortskrankenkasse  Baden-
Württemberg, in which it was held that benefits of that type are essentially intended
to supplement sickness insurance benefits, to which they are, moreover, linked at the
organisational  level,  in  order  to  improve  the  state  of  health  and  quality  of  life  of
persons  reliant  on  care.  In  those  circumstances,  even  if  they  have  their  own
characteristics,  such  benefits  must  be  regarded  as  'sickness  benefits'  in  cash  within
the meaning of Article 4(1)(a) and (b) of Regulation No 1408/71.

Finally, account should be taken of the judgement of the Court of Justice on 31 May
2001  in  the  Leclere  case,  in  which  the  Court,  while  admitting  that  a  condition  of
residence in the State in which the competent institution is based may legitimately be
demanded  for  the  granting  of  benefits  closely  linked  to  the  social  environment,
invalidated  Annex  IIa  to  the  Regulation  in  so  far  as  it  features  the  Luxembourg
maternity allowance, denying this allowance a special character.

The Court judged that the Luxembourg maternity allowance laid down in the Act of
30 April 1980, being payable to every pregnant woman and every  woman  who  has
given  birth  on  the  sole  condition  that  she  is  legally  resident  in  Luxembourg  when
entitlement  is  established,  cannot  be  regarded  as  having,  in  relation  to  the  benefits
referred  to  in  Article  4(1)  of  Regulation  No  1408/71,  the  character  of  a  special
allowance. The actual terms of Article 4(2a) of Regulation No 1408/71 lay down that
only benefits not falling within the framework of general legislation on the schemes
referred to in Article 4(1) of the Regulation can be considered as being referred to by
this provision.

Amendment of Article 9a

Article 9a concerns the extension of the reference period where, under the legislation
of  a  Member  State,  recognition  of  entitlement  to  a  benefit  is  conditional  upon
completion of a minimum period of insurance during a specific period preceding the
contingency  insured  against  (reference  period)  and  where  the  aforementioned
legislation  provides  that  the  periods  during  which  the  benefits  have  been  granted
under the legislation of that Member State or periods devoted to child-rearing in the
territory  of  that  Member  State  shall  prolong  the  reference  period.  In  this  instance,
Article 9a also requires the Member State to extend the reference period to cover the
payment  of  invalidity  pensions,  old-age  pensions,  sickness  benefits,  unemployment
benefits or benefits for industrial accidents (except for pensions) awarded under the
legislation  of  another  Member  State  and  periods  devoted  to  child-rearing  in  the
territory of another Member State. There is therefore an exception relating to periods
of payment of industrial accident pensions.

in 

2002 

18  April 

Bearing in mind the judgement of the Court of Justice of the European Communities
on 
v
case  C-290/00, 
Pensionsversicherungsanstalt der Angestellten (ECR 2002 I-3567), Article 9a should
be  amended  to  bring  it  into  line  with  this  judgement,  which  has  been  declared
partially  invalid  "in  so  far  as  it  (Article  9a)  expressly  excludes  the  possibility  of
taking into account, for the purposes of prolongation of the reference period under
the legislation of a Member State, periods during which industrial accident benefits
have been paid under the legislation of another Member State."

Johann  Franz  Duchon 

3

Amendment of Article 10a

Article  10a  sets  out  the  specific  coordination  rules  applying  to  special  non-
contributory  cash  benefits.  To  ensure  legal  safety,  it  appeared  necessary  to  specify
that these rules apply to these benefits to the exclusion of the provisions of Article 10
and of Title III of Regulation (EEC) No 1408/71.

Amendment of Article 23

Article  23  concerns  the  calculation  of  cash  benefits  for  sickness  and  maternity
insurance.

Paragraph  1  lays  down  that  "the  competent  institution  of  a  Member  State  whose
legislation provides that the calculation of cash benefits shall be based on an average
wage or salary, shall determine that average wage or salary exclusively by reference
to  wages  or  salaries  confirmed  as  having  been  paid  during  the  periods  completed
under  the  said  legislation".  Paragraph  2  provides  for  a  similar  rule  where  the
calculation of cash benefits is based on a standard wage or salary.

A new paragraph 2a is proposed whereby the rules laid down in paragraphs 1 and 2
shall apply where the reference period provided for under the applicable legislation
covers in full or in part a period completed under the legislation of one or more other
Member States.

Amendment of Article 33(1)

Article  33(1)  establishes  in  spirit  the  principle  of  parallelism  between  sickness  and
maternity  benefits  paid  out  and  contributions  paid  in,  stipulating  that  such
contributions can only be operated by an institution  in  a  Member State with regard
only to  the  pensioners who,  in return,  receive sickness and maternity benefits  from
the institution in that Member State.

The  aim  of  amending  paragraph  1  of  Article  33  is  to  specify  that  the  deduction  of
such contributions may be carried out on all pensions paid to the said pensioners if
national legislation provides for this. In addition, the situation of the pensioner is thus
aligned  with  that  of  the  employed  worker  who,  by  virtue  of  Article  14d,  is  for  the
purposes  of  the  application  of  the  legislation  deemed  applicable  by  the  Regulation
considered to carry out all of his occupational activity or activities in the territory of
the  Member  State  concerned.  However,  it  is  important  in  calculating  the
contributions  in  question  to  make  provision  for  taking  into  account  the  amounts
actually paid to the persons concerned. These are therefore net amounts, taking into
account  any  deduction  from  the  amounts  paid  to  the  pensioner  in  question  in  the
debtor Member State. This essential clarification corresponds on the one hand to the
Sehrer  judgement,4  and  on  the  other  is  intended  to  avoid  the  amount  of  sickness
contributions deducted from the pensions in question being greater than the amount
due  from  a  person  with  the  same  income  obtained  in  the  sole  competent  Member
State.  It  is  worthwhile  ensuring  that  the  right  of  free  movement  of  the  persons  in
question is not unduly affected. Requiring the taking into account of the net amounts
of  pensions  received  by  the  persons  concerned  appears  to  be  appropriate  and

4

Judgement of 15 June 2000, case C-302/98, ECR p. I-4585.

4

                                                
proportionate  in  the  context  of  coordination,  in  order  to  prevent  any  difficulties
which  could arise in  certain  cross-border  situations  owing  to the diversity of  social
security systems and, more precisely, of methods of funding in the different Member
States.

Deletion of Article 35(2)

Article 35(2)  designates  the  scheme  applicable  to  working  or  retired  self-employed
persons in the country of temporary stay or residence where, both in this country and
in  the  country  where  the  persons  concerned  are  insured  (competent  State),  one  or
more  special  sickness  or  maternity  insurance  schemes  apply  to  self-employed
persons, granting benefits in kind less favourable than those which employed persons
receive.

The  provisions  of  Article  35(2)  are  no  longer  justified,  as  Belgium  is  the  sole
Member  State  still  with  a  special  scheme  for  self-employed  persons  with  regard  to
sickness  and  maternity  benefits  in  kind  which  offers  less  extensive  protection  than
the one for employed persons.

Deletion of Article 69(4)

The judgement of the Court of Justice of the European Communities of 13 June 1996
in case C-170/95, Office national de l'emploi v Calogero Spataro (ECR 1996 I-2921),
giving Article 69(4) a restrictive interpretation, should be taken into consideration.

Addition of Article 95f

Under the terms of the fourth indent of Article 1j) of Regulation (EEC) No 1408/71,
the provisions governing special schemes for self-employed persons, the creation of
which is left to the initiative of the persons concerned or the application of which is
limited to a part of the territory of the Member State in question, are excluded from
the scope of the Regulation and, to this end, are referred to in Annex II. Germany has
asked for the reference to the schemes in question (pension schemes of professional
associations or similar institutions), currently entered in Annex II under the heading
"C. Germany", to be deleted. This inclusion makes transitional provisions necessary.

Addition of Article 95g

In  its  judgement  of  8  March  2001  in  case  C-215/99,  Friedrich  Jauch  v
Pensionsversicherungsanstalt der Arbeiter (ECR 2001  I-1901), the Court of Justice
of the European Communities declared the  entry in Annex IIa to Regulation (EEC)
No  1408/71  of  the  Austrian  care  allowance  to  be  invalid,  stating  that  it  was  a
"normal"  sickness  cash  benefit  within  the  meaning  of  Article  4(1a)  and  b))  of
Regulation  (EEC)  No  1408/71  and  not  a  non-exportable  special  non-contributory
benefit.  As  a  result,  the  rights  of  persons  who,  on  the  basis  of  Article  10a(3)  of
Regulation  (EEC)  No  1408/71,  obtained  or  requested  before  8  March  2001  a  care
allowance  under  Austrian  legislation  should  be  protected.  To  this  end,  Article  5  of
the  Regulation  contains  a  transitional  provision  stipulating  that  entitlement  to  the
care  allowance  will be  maintained under  the  terms  of  Article  10a(3)  as  long  as  the
persons concerned continue to reside in Austria.

Annexes  II,  IIa,  III,  IV  and  VI  to  Regulation  (EEC)  No  574/72  shall  be  amended  in
accordance with Annex I to this Regulation.

5

Second Article

Amendment of Regulation (EEC) No 574/72

Amendment of Article 4 and Article 32a

Item 11 of Article 4  and Article 32a refer to Annex 11, in which there should be a
reference  to  the  schemes  referred  to  in  Article  35(2)  of  Regulation  (EEC)  No
1408/71. As paragraph 2 of Article 35 has been deleted, item 11 of Article 4, Article
32a and Annex 11 to Regulation (EEC) No 574/72 should also be deleted.

Addition of Article 10c and amendment of Article 12a

Article 13(2d) of the Regulation lays down that civil servants and persons treated as
such  shall  be  subject  to  the  legislation  of  the  Member  State  to  which  the
administration employing them is subject.

Article 14(2a) of the Regulation lays down the rules for determining the legislation
applicable  to  workers  who  are  members  of  the  travelling  or  flying  personnel  of  an
undertaking  which, for hire or  reward or on its own  account, operates  international
transport  services  for  passengers  or  goods  by  rail,  road,  air  or  inland  waterway.
Depending on the situation, the legislation applicable to the worker will be that of the
Member  State  in  whose  territory  the  registered  office,  branch  or  permanent
representation  which  employs  him  is  situated,  or  the  place  where  he  resides  and  is
principally employed.

Out of concern for legal safety, there should be a provision for these two categories
of  workers  stating  that  the  institution  of  the  Member  State  whose  legislation  is
applicable  shall  issue  to  the  civil  servant  or  worker  a  certificate  stating  that  he  is
subject to its legislation.

Annex 4 to Regulation (EEC) No 574/72 shall be amended and Annex 11 to the Regulation
shall be deleted.

3. 

1.

COMMENT ON ANNEX I

Amendment of Annex II, section I

Deletion of the reference under the heading "C. GERMANY" means that the pension
schemes  of  professional  associations  and  similar  pension  institutions  (special
schemes for self-employed workers) are included in the scope of Regulation (EEC)
No 1408/71 from 1 January 2004.

2.

Amendment of Annex II, section II

The Spanish legislature, in the context of its policy to promote the birth rate, grants
two  benefits  which  meet  the  same  objectives  as  the  special  childbirth  allowances
cited in Article 1u) i) of Regulation (EEC) No 1408/71 and referred to in Annex II,
section  II.  This  is  a  cash  benefit  in  the  form  of  a  single  payment  for  the  birth  of  a
third  child  and  subsequent  children  and  a  cash  benefit  in  the  form  of  a  single
payment in the event of a multiple birth. These benefits should be referred to under
the heading "D. SPAIN".

6

Finnish  law  on  maternity  allowances  has  been  extended  to  include  a  benefit  which
consists of aid in the form of a flat-rate sum intended to compensate for the cost of
international adoption. The reference under  the  heading  "M.  FINLAND"  should  be
amended to take this into account.

3.

Amendment of Annex II, section III

The  reference  to  the  "social  supplement  under  the  Law  of  28  June  1990  on  the
alignment of pensions" should be deleted from the heading "C. GERMANY", as this
benefit was granted until 31 December 1996.

4.

Amendments to Annex IIa

Annex  IIa  contains  special  non-contributory  benefits  granted  to  the  persons
concerned  exclusively  in  the  territory  of  the  Member  State  in  which  they  reside,
under the terms of Article 10a of Regulation (EEC) No 1408/71.

This Annex is amended to take account on the one hand of new benefits of this type
introduced in national legislation, and on the other of recent developments in the case
law  of  the  Court  of  Justice  of  the  European  Communities  with  regard  to  the
classification  of  "special  non-contributory  benefits",  namely  the  judgement  of  8
March  2001  in  case  C-215/99,  Friedrich  Jauch  v  Pensionsversicherungsanstalt  der
Arbeiter  (ECR  2001  I-1901)  and  the  judgement  of  31  May  2001  in  case  C-43/99,
Ghislain Leclere, Alina Deaconescu and Caisse nationale des prestations familiales
(ECR 2001 I-4265).

In the light of this case law, it appears essential not only to delete from Annex IIa the
benefits  declared  invalid  by  the  Court  (Austria's  care  allowance  and  Luxembourg's
maternity allowance) but also to carry out a new analysis of the elements comprising
each  benefit  in  Annex  IIa  in  order  to  verify  whether  these  elements  meet  the
"special"  and  "non-contributory"  criteria  defined  by  the  case  law  of  the  Court  of
Justice  which  a  benefit  should  possess  in  order  to  be  entered  in  Annex  IIa  and  be
coordinated  by  specific  coordination  rules  laid  down  for  special  non-contributory
benefits.

Analysis of the benefits currently entered in Annex IIa, or whose entry is requested,
is based on a teleological interpretation by the Court of Justice of the provisions of
Article 4(2a) and Article 10a of Regulation (EEC) No 1408/71. When called upon to
give its opinion on the classification of a benefit, the Court looks for the aim pursued
by the benefit in question.

The  first  essential  characteristic  of  a  “special  non-contributory  benefit”  is  by
definition its “special” nature, which must be apparent. This applies in all branches
of social security.

"Special" benefits are half-way between  "conventional" social security benefits  and
social  assistance  and  are  similar  to  social  assistance  "in  that  need  is  an  essential
criterion  in  its  implementation"  (see  the  third  and  fourth  recitals  of  Regulation  No
1247/92).5

5

OJ L 136, 19.5.1992.

7

                                                
The first aim pursued by the benefit is essentially to meet the financial needs of the
person  concerned  and,  with  the  aim  of  preventing  poverty,  guarantee  an  income
providing  the  necessary  means  of  subsistence,  having  regard  to  the  economic  and
social context of the Member State concerned. In its Leclere judgement, the Court of
Justice  referred  to  its  judgements  of  27  September  1988  in  the  Lenoir  case  (C-
313/86,  ECR  1988  I-5391)  and  of  4  November  1997  in  the  Snares  case  (C-20/96,
ECR  1997  I-6057)  to  make  the  point  that  “it  is  open  to  the  Community  legislature
when  implementing  Article  51  of  the  Treaty  (now  Article  42)  to  adopt  provisions
which  derogate  from  the  principle  of  exportability  of  social  security  benefits.  In
particular, (...), a condition of residence in the State of the competent institution may
legitimately  be  required  for  the  grant  of  benefits  closely  linked  with  the  social
environment” (paragraph 32).

Therefore, the level of minimum income guaranteed by the benefit in question must
be close to or linked to the minimum subsistence income as calculated or applied in
the  Member  State  concerned,  in  such  a  way  that  it  is  closely  linked  to  the  socio-
economic environment in that Member State.

In assessing this criterion of financial need, the application of means testing prior to
granting the benefit in question is an important factor. This condition is tantamount
to ensuring that the main aim is to guarantee a minimum income. However, meeting
this  condition  is  not  an  absolute  and  decisive  criterion  in  terms  of  recognising  a
benefit  as  a  “special”  benefit.  It  must  be  borne  in  mind  that  some  countries'
legislation implicitly presumes, in view of the identity of benefit recipients, that they
do  not  have  sufficient  resources.  Secondly,  the  granting  of  “conventional”  social
security benefits may also be subject to means testing.

In any event, a benefit must be of a supplementary, substitutive or ancillary nature in
relation  to  a  benefit  covering  one  of  the  conventional  social  security  risks  listed  in
Article  4(1)  of  Regulation  No  1408/71.  This  excludes  any  scheme  providing  a
conventional benefit which is available to all inhabitants to cover a specific risk.

The factor which determines when a benefit may be listed in Annex IIa as a benefit
intended exclusively to provide specific protection for disabled people is the need
for  social  integration.  A  disabled  person's  need  for  social  integration,  which  is
normally closely linked to the person's social environment, must be the sole purpose
of the benefit, to the exclusion of any other objectives.

As regards the criterion of financial need, the Court of Justice,  in  the  Newton  case
(C-356/89,  ECR  1991  I-3017),  recognised  the  dual  nature  of  the  UK's  “mobility
allowance”,  even  though  the  legislation  introducing  it  did  not  make  it  subject  to
means testing. The existence of a close link with the social environment, as referred
to  by  the  Court  in  the  Lenoir  case  to  justify  the  non-exportability  of  a  benefit,  is
usually verified in the case of benefits designed to meet specific needs in terms of the
integration  of  recipients  into  society  where  this  is  rendered  more  difficult  by  their
disability.

Of  course,  this  criterion  of  a  disabled  person's  need  for  social  integration,  like  all
essential characteristics of special non-contributory benefits, must be interpreted and
applied in a restrictive manner. The sole purpose of benefits for the disabled in this
category  is  to  promote  the  social  integration  of  disabled  persons.  They  are  not

8

intended to cover any of the conventional social security risks listed in Article 4(1) of
Regulation (EEC) No 1408/71.

This approach excludes:

-

-

-

benefits  under  Article  4(1b)  of  the  Regulation:  "invalidity  benefits,  including
those intended for the maintenance or improvement of earning capacity";

benefits  granted  to  children  with  a  disability  where  the  main  objective  is  to
compensate for the additional family expenses incurred by the presence in the
household of a disabled child;

care allowances classified by the Court of Justice in the Jauch case as sickness
benefits in cash, with  the  aim  of improving the state of health and the life  of
dependent  persons,  even  though  the  benefits  may  cover  a  number  of  aspects
totally independent of the illness itself.

Concerning  the  horizontal  criterion  of  the  non-contributory  nature  of  the  special
benefit,  reference  should  be  made  to  the  judgements  of  the  Court  of  Justice  of  15
February 2000 (CRDS, C-34/98, ECR 2000 I-995 and CSG, C-169/98, ECR 2000 I-
1049) in which the Court of Justice declared that:

“The fact that a levy is categorised as a tax under national legislation does not mean
that, as regards Regulation No 1408/71, that same levy cannot be regarded as falling
within the scope of that regulation and caught by the prohibition against overlapping
legislation".

As the Court has held, in particular in its judgement of 18 May 1995 (Rheinhold &
Mahla,  C-327/92,  ECR  I-1223,  paragraph  15),  Article  4  of  Regulation  No  1408/71
determines the matters  covered by this regulation in terms which make it clear that
the national social security schemes are subject in their entirety to the application of
the rules of Community law. At paragraph 23 of that judgement, the Court stated that
the decisive factor for the purposes of applying Regulation No 1408/71 is that there
must  be  a  link  between  the  provision  in  question  and  the  legislation  governing  the
branches  of  social  security  listed  in  Article  4  of  the  same  regulation,  and  that  link
must  be  direct  and  sufficiently  relevant”  (case  C-34/98,  paragraphs  34  and  35,  and
case C-168/98, paragraphs 32 and 33).

The  Court  of  Justice  has  ruled  that  there  is  a  direct  and  sufficiently  relevant  link
between  the  CRDS/CSG  and  the  general  French  social  security  scheme,  that  their
purpose  is  specifically  and  directly  to  discharge  the  deficit  of  the  general  French
social security scheme, and that they form part of a comprehensive reform of social
protection  in  France  aimed  at  ensuring  the  future  financial  equilibrium  of  that
scheme, the branches of which are indisputably among those covered by Article 4(1)
of Regulation No 1408/71 (Case C-34/98, paragraphs 36 and 37, and Case C-168/98,
paragraphs 34 and 35).

The Court of Justice has concluded that “the decisive criterion is that of the specific
allocation of a contribution to the funding of the social security scheme of a Member
State” (Case C-34/98, paragraph 40, and Case C-168/98, paragraph 38).

9

Finally,  it  should  be  noted  that  the  same  analysis  of  course  prevailed  when
examining  new  requests  for  entry  in  Annex  IIa  of  benefits  adopted  in  national
legislation in certain countries. As a result, the following benefits may be entered:

- for Germany, "benefits pursuant to the law on a minimum needs-based provision in
old age and in the event of reduced earning capacity";

- for Italy, the "social increase" (Article 1(1) and (12) of Act No 544 of 29 December
1988 and subsequent amendments);

- for the Netherlands, "supplements allocated to benefit recipients" (Act 6 November
1986 and subsequent amendments);

- for Sweden, "financial support for the elderly" (Act No 2001/853);

-  for  the  United  Kingdom,  pension  credit  (this  benefit  replaces  income  support  for
elderly people currently referred to in Annex IIa).

5.

Amendment of Annex III

With  regard  to  Annex  III,  part  A,  maintaining  in  force  the  provisions  of  existing
bilateral  agreements  prior  to  the  entry  into  force  of  the  Regulation  can  only  be
justified in two cases: where the provisions in question produce favourable effects for
the  beneficiaries  of  the  agreement  concerned,  thus  reflecting  the  case  law  of  the
Court;  or  where  the  provisions  in  question  respond  to  specific,  exceptional
circumstances,  usually  historical,  and  the  effects  are  limited  in  time  by  the
exhaustion  of potential rights for the persons  concerned  by  the  specific  situation  in
question.

The  entries  in  Annex  III,  part  B,  should  be  limited  to  exceptional,  objective
situations, justifying derogation from Article 3 (1) of the Regulation and Articles 12,
39 and 42 of the Treaty.

Entries relating to the export of benefits to a third country should be deleted. Either
the payment of a pension in a third State falls within the scope of the Regulation (if
the  pension  falls  within  its  material  scope  and  the  beneficiary  within  its  personal
scope) and the principle of equal treatment applies; or it does not, and this matter can
no longer be dealt with in Annex III but in the body of the Regulation. Consequently,
these provisions should be deleted from parts A and B of Annex III.

6.

Amendment of Annex IV, part B

Annex  IV,  part  B,  contains  the  list  of  "special  schemes  for  self-employed  workers
within the meaning of Article 38(3) and Article 45(3) of the Regulation".

In  Italy,  new  occupational  categories  benefit  from  a  special  scheme  for  self-
employed workers, which implies an amendment to the heading "H. ITALY".

The Old-Age Insurance for Farmers Act (Gesetz über eine Altershilfe für Landwirte
– GAL) of 14 September 1965 was replaced by a similar Act of 29 July 1994 (Gesetz
über  die  Alterssicherung  der  Landwirte),  with  effect  from  1  January  1995.  The
reference under the heading "C. GERMANY" should therefore be amended to bring
it into line with the new law.

10

7.

Amendments to Annex VI

Annex VI sets out particular methods for applying the legislation of certain Member
States.

The references under point 6b) under the heading "B. DENMARK", and under point
5 under the heading "G. IRELAND", have become superfluous owing to the fact that
the situations they covered have a general solution stipulated in the new paragraph 3
inserted by this Regulation in Article 23 of Regulation (EEC) No 1408/71.

The German Act of 10 October 2001 transposing the social security agreements and
amending  various  ratification  acts  provided  a  legal  basis  for  the  procedure  for
imposing levies on certain sickness insurance institutions arising from the application
of Regulations (EEC) Nos 1408/71 and 574/72, enabling point 3 under the heading
"C. GERMANY" to be deleted.

The Old-Age Insurance for Farmers Act (Gesetz über eine Altershilfe für Landwirte
– GAL) of 14 September 1965 was replaced by a similar Act of 29 July 1994 (Gesetz
über die Alterssicherung der Landwirte), with effect from 1 January 1995. Point 11
under the heading "C. GERMANY" is deleted; its justification was contained in the
provisions of Article 27 of the former Act which are not contained in the new one.

Point  17  under  the  heading  "C.  GERMANY"  is  deleted.  It  concerns  legislative
provisions which have been repealed and replaced by the care  insurance provisions
in Book XI of the German social code, which grants benefits which, under the terms
of  the  judgement  of  5  March  1998  by  the  Court  of  Justice  of  the  European
Communities  in  case  C-160/96,  Molenaar  (ECR  I-843),  are  governed  by  the
coordination of sickness benefits.

The reference to "parental child-raising allowance" is deleted from point 7 under the
heading "E. FRANCE", as this benefit cannot be subject to a condition of residence
in France as it should be considered a social advantage within the meaning of Article
7(2) of Regulation (EC) No 1612/68 of 15 October  1968 on  freedom of movement
for workers within the Community. Social advantages are exportable in  accordance
with  the  judgement  of  27  November  1997  by  the  Court  of  Justice  of  the  European
Communities in case C-57/96, H. Meints v Minister van Landbouw, Natuurbeheer en
Visserij, ECR 1997 I-6689.

Point 2 under the heading "O. UNITED KINGDOM" is amended technically to take
account of the fact that the legislative provisions ("Welfare Reform and Pensions Act
1999")  establishing  new  survivor’s  benefits  from  9  April  2001  are  extended  to
widowers.

Point  11  under  the  heading  "G.  IRELAND"  and  point  21  under  the  heading  "O.
UNITED  KINGDOM"  are  no  longer 
justified.  These  special  arrangements
concerning application had been necessary because no rule on overlapping was laid
down  in  Regulations  (EEC)  Nos  1408/71  and  574/72  for  a  specific  overlapping  of
benefits arising from the application of two legislations linked to the carrying out of
an occupational activity and from the fact that the activity carried out in the territory
of  the  other  Member  State  concerned  is  taken  into  consideration.  This  related  to
United Kingdom legislation relating to family credit and to Irish legislation relating
to  the  family  income  supplement.  A  new  family  benefit,  a  child  tax  credit,  was

11

established  in  the  United  Kingdom  from  6  April  2003.  The  aim  of  the  United
Kingdom legislature was to unify the system of income-related support for children,
with  the  consequence  of  abolishing  the  former  benefits  with  the  same  aim,  in
particular the family credit. As entitlement to child tax credit is not subordinate to the
carrying out of an occupational activity, and the benefit paid by  Ireland,  the  family
income supplement, is, the overlap between the two benefits is governed by Article
10 of Regulation (EEC) No 574/72.

4. 

1.

COMMENT ON ANNEX II

Amendment of Article 4

The heading "C. GERMANY" in Annex 4 is supplemented by a point 9, designating
the liaison body for special schemes for self-employed workers administered by the
accident insurance associations.

2.

Deletion of Annex 11

Annex  11  lists  the  schemes  referred  to  in  Article  35(2)  of  Regulation  (EEC)  No
1408/71,  i.e.  schemes  covering  self-employed  workers  for  sickness  and  maternity
benefits  in  kind,  which  are  less  favourable  than  the  one  for  employed  workers.
Application of Article 35(2) is based on the premise that at least two Member States
are  familiar  with  such  schemes,  which  is  no  longer  the  case.  This  provision  is
therefore abolished under the terms of this Regulation,  which justifies the abolition
of Annex 11.

5. 

APPLICATION  IN  THE  COUNTRIES  OF  THE  EUROPEAN  ECONOMIC
AREA AND IN THE SWISS CONFEDERATION

The free movement of persons is one of the objectives and principles of the Agreement on the
European Economic Area (EEA) which came into force on 1 January 1994.6 In Chapter 1 of
the third part, concerning the free movement of persons, services and capital, Articles 28, 29
and  30  deal  with  the  free  movement  of  employed  and  self-employed  workers.  Article  29,
more  specifically,  restates  the  principles  listed  in  Article  42  of  the  EC  Treaty  in  respect  of
social security for persons  moving within the Community.  Consequently this proposal  for  a
Regulation must, if it is adopted, apply in the EEA member countries.

The agreement between the European Community and its Member States, of the one part, and
the Swiss Confederation, of the other part, on the free movement of persons, which came into
force on 1 June 2002, contains an Article 8 which restates the principles listed in Article 42 of
the  EC  Treaty  in  respect  of  social  security  for  persons  moving  within  the  Community.
Consequently  this  proposal  for  a  Regulation  must,  if  it  is  adopted,  apply  in  the  Swiss
Confederation.

6

OJ L 1, 3.1.1994, as amended by Decision of the EEA Joint Committee No 7/94 of 21.3.1994  (OJ  L
160, 28.6.1994).

12

                                                
2003/0184 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

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

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular
Articles 42 and 308 thereof,

Having regard to the proposal from the Commission,7

Having regard to the opinion of the European Economic and Social Committee,8

Having regard to the opinion of the Committee of the Regions,9

Acting in accordance with the procedure laid down in Article 251 of the Treaty,10

Whereas:

(1)

(2)

7

8

9

10

11

12

13

14

Certain amendments should be made to Council Regulation (EEC) No 1408/7111 and
Council  Regulation  (EEC)  No  574/7212,  in  order  to  take  account  of  recent
developments  in  the  case  law  of  the  Court  of  Justice  of  the  European  Communities,
facilitate the application of those Regulations and reflect changes in the social security
legislation of the Member States.

In  order  to  take  account  of  recent  developments  in  case  law,  the  conclusions  of
judgements  should  be  drawn,  particularly  in  the  cases  of  Johann  Franz  Duchon  v
Pensionsversicherungsanstalt  der  Angestellten13  and  Office  national  de  l'emploi  v
Calogero Spataro.14

OJ C […], […], p. […].
OJ C […], […], p. […].
OJ C […], […], p. […].
OJ C […], […], p. […].
OJ L/2002/149/2 of 5.7.1971 Regulation updated by Regulation (EC) No 118/97 (OJ L 28, 30.1.1997,
p. 1) and last amended by Regulation (EC) No 1399/1999 (OJ L 164, 30.6.1999, p. 1).
OJ L/2002/74/1 of 27.3.1972 Regulation updated by Regulation (EC) No 118/97 (OJ L 28, 30.1.1997,
p. 1) and last amended by Regulation (EC) No 1399/1999 (OJ L 164, 30.6.1999, p. 1).
Judgement  of  18  April  2002  in  case  C-290/00,  Johann  Franz  Duchon  v  Pensionsversicherungsanstalt
der Angestellten (ECR 2002 I-3567).
Judgement  of  13  June  1996  in  case  C-170/95,  Office  national  de  l'emploi  v  Calogero  Spataro  (ECR
1996 I-2921).

13

                                                
(3)

(4)

(5)

(6)

15

16

17

The  judgements  in  Friedrich  Jauch  v  Pensionsversicherungsanstalt  der  Arbeiter  and
Ghislain Leclere, Alina Deaconescu and Caisse nationale des prestations familiales,15
concerning  the  classification  of  special  non-contributory  cash  benefits  require,  for
reasons  of  legal  safety,  that  the  two  cumulative  criteria  to  be  taken  into  account  be
specified  so  that  such  benefits  can  feature  in  Annex  IIa  to  Regulation  (EEC)  No
1408/71. On this basis, there is a case for revising the Annex, taking into account also
legislative amendments in the Member States affecting this type of benefits, which are
subject to specific coordination given their mixed nature. In addition, it is important to
specify the transitional provisions relating to the benefit which was the subject of the
judgement in the Jauch case in order to protect the rights of beneficiaries.

On the basis of case law relating to the relationships between the Regulation and the
provisions  of  bilateral  social  security  agreements,  and  in  particular  of  the  Rönfeldt
judgement,16 it is necessary to review Annex III to Regulation (EEC) No 1408/71. The
entries  in  part  A  of  Annex  III  are  only  justified  in  two  cases:  where  they  are  more
favourable  to  migrant  workers  or  where  they  relate  to  specific  and  exceptional
situations, usually linked to historical circumstances. In addition, it is not appropriate
to accept entries in part B except where exceptional and objective situations justify a
derogation from Article 3(1) of the Regulation and from Articles 12, 39 and 42 of the
Treaty.17

In order to facilitate the application of Regulation (EEC) No 1408/71, there should be
certain  provisions  concerning  on  the  one  hand  civil  servants  and  persons  treated  as
such and, on the other, members of the travelling or flying personnel of an undertaking
which  operates international  transport services  for  passengers  or  goods  by  rail,  road,
air  or  inland  waterway,  and  also  to  specify  the  methods  for  determining  the  average
amount to take into account in the context of Article 23 of the Regulation.

In order to re-establish, at the request  of those Member  States  whose institutions  are
responsible  for  sickness  benefits,  parallelism  in  the  treatment  of  pensioners  who  are
former  migrant  workers  and  who  receive  pensions  paid  by  the  institutions  of  other
Member States and settled pensioners who receive the same income in full solely from
the  institutions  in  their  State  of  residence,  reference  should  be  made  to  the  text  of
Article  33(1)  of  Regulation  (EEC)  No  1408/71  to  indicate  that  social  security
contributions for sickness insurance may be calculated taking into account all pensions
paid  to  “socially  insured”  persons,  where  the  legislation  of  the  competent  State
provides  for  this.  However,  only  the  actual  amounts  of  the  pensions  paid  by  the
institutions of other Member States are taken into account for this calculation, i.e. the
net amounts, which take account of any deduction from these amounts in the Member
State of the paying institution,

Judgements of 8 March 2001 in case C-215/99 (ECR 2001 I-1901) and 31 May 2001 in case C-43/99
(ECR 2001 I-4265).
Judgement  of  7  February  1991,  case  C-227/89,  Ludwig  Rönfeldt,  ECR  1991  I-323,  the  principle  of
which has since been used, particularly in the judgement of 9 November 1995, case C- 475/93, Jean-
Louis  Thevenon,  ECR  1995  I-3813;  the  judgement  of  9  November  2000,  case  C-75/99,  Edmund
Thelen, ECR 2000 I-9399; and the judgement of 5 February 2002, case C-277/99, Doris Kaske, ECR I-
1261.
- Judgement of 30 April 1996, case C-214/94, Ingrid Boukalfa, ECR 1996 I-2253;
- Judgement of 30 April 1996, case C-308/96, Cabanis-Issarte, ECR 1996 I-2097;
- Judgement of 15 January 2002, case C-55/2000, Elide Gottardo, ECR 2002 I-413.

14

                                                
HAVE ADOPTED THIS REGULATION

Article 1

Regulation (EEC) No 1408/71 shall be amended as follows:

1)

Article 4 (2) shall be replaced by the following:

"2a The  provisions  of  this  Article  shall  apply  to  special  non-contributory  cash
benefits  which  are  provided  under  legislation  which,  because  of  its  personal
scope,  objectives  and/or  conditions  for  entitlement  has  characteristics  both  of
the  social  security  legislation  referred  to  in  Article  4(1)  and  of  social
assistance.

Special non-contributory cash benefits are benefits:

(a) which are intended to provide either :

supplementary,  substitute  or  ancillary  cover  against  the  risks
covered  by  the  branches  of  social  security  referred  to  in  Article
2(1),  and  which  guarantee  to  the  persons  concerned  a  minimum
subsistence  income  having  regard  to  the  economic  and  social
situation in the Member State concerned;

solely specific protection for the disabled, closely linked to the said
person’s social environment in the Member State concerned,

(i)

or

(ii)

and

the  financing  of  which  exclusively  derives  from  compulsory  taxation
intended  to  cover  general  public  expenditure  and  the  conditions  for
granting  and  for  calculating  the  benefits  are  not  dependent  on  any
contribution  in  respect  of  the  beneficiary.  However,  benefits  granted  to
supplement  a  contributory  benefit  shall  not  be  considered  to  be
contributory benefits for this reason alone,

(b)

and

(c) which are listed in Annex IIa."

2)

Article 9 is replaced by the following:

"Article 9a

If  the  legislation  of  a  Member  State  subordinates  recognition  of  entitlement  to  a
benefit  to  the  completion  of  a  minimum  period  of  insurance  during  a  determined
period  preceding  the  contingency  insured  against  (reference  period)  and  lays  down
that  periods  during  which  benefits  were  paid  under  the  legislation  of  that  Member
State or periods devoted to child-rearing in the territory of that Member State shall
extend this reference period, the periods during which invalidity or old age pensions

15

or  sickness,  unemployment  or  industrial  accident  benefits  were  paid  under  the
legislation  of  another  Member  State  and  periods  devoted  to  child-rearing  in  the
territory of another Member State shall also extend this reference period."

3)

In Article 10, paragraph (1) shall be replaced by the following:

"1. The provisions of Article 10 and of Title III shall not apply to the special non-
contributory  cash  benefits  referred  to  in  Article  4(2a).  The  persons  to  whom
this Regulation applies shall receive these benefits exclusively in the  territory
of  the  Member  State  in  which  they  reside  and  under  the  legislation  of  that
State, in so far as these benefits are mentioned in Annex IIa. Benefits shall be
paid by, and at the expense of, the institution of the place of residence."

4)

In Article 23, the following paragraph 2a shall be inserted:

"2a. The provisions of paragraphs 1 and 2 shall also apply where the legislation
applicable to the competent institution provides for a specific reference period
and  this  period  coincides,  where  appropriate,  with  the  whole  or  part  of  the
periods  completed  by  the  person  concerned  under  the  legislation  of  one  or
more other Member States."

5)

In Article 33, paragraph (1) shall be replaced by the following:

"The  institution  of  a  Member  State  responsible  for  payment  of  a  pension  which
applies  legislation  providing  for  the  deduction  of  contributions  payable  by  a
pensioner to cover sickness and maternity benefits for which he is responsible under
the  terms  of  Articles  27,  28,  28a,  29,  31  and  32  shall  be  authorised  to  make  such
deductions, calculated in accordance with the said legislation, from pensions payable
by it or by another Member State. This institution shall take into account the actual
amounts of the pensions paid by the other Member States."

6)

7)

8)

In Article 35, paragraph 2 shall be deleted.

In Article 69, paragraph 4 shall be deleted.

The following Articles 95f and 95g shall be inserted:

"Article 95f

Transitional provisions relating to Annex II, section I, under the heading "C. GERMANY"

"1.

2.

Annex  II,  section  I,  under  the  heading  "C.  GERMANY,  as  amended  by
Regulation…[this Regulation] shall not establish any entitlement for the period prior
to 1 January 2004.

Any  period  of  insurance  and,  where  appropriate,  any  period  of  employment,  self-
employment or residence under the legislation of a Member State prior to 1 January
2004 shall be taken into consideration in determining acquired rights in accordance
with the provisions of this Regulation.

16

3.

4.

5.

6.

7.

Subject  to  the  provisions  of  paragraph  1,  a  right  shall  be  acquired  under  this
Regulation  even  where  it  relates  to  a  contingency  that  occurred  prior  to  1  January
2004.

Any benefit that has not been awarded or that has been suspended on account of the
nationality or the  residence  of  the  person concerned shall, at the  latter's  request, be
awarded or resumed from 1 January 2004, provided that the rights for which benefits
were previously awarded did not give rise to a lump-sum payment.

The rights of persons to whom a pension was awarded prior to 1 January 2004 may,
on  the  application  of  the  persons  concerned,  be  reviewed,  taking  account  of  the
provisions  of  this  Regulation.  This  shall  also  apply  to  other  benefits  pursuant  to
Article 78.

If an application referred to in paragraph 4 or 5 is submitted within two years from 1
January  2004,  the  rights  acquired  under  this  Regulation  shall  have  effect  from  that
date,  and  the  provisions  of  the  legislation  of  any  Member  State  concerning  the
forfeiture or limitation of rights may not be invoked against the persons concerned.

If the application referred to in paragraph 4 or 5 is submitted after the expiry of the
two-year period after 1 January 2004, rights which have not been forfeited or barred
by limitation shall have effect from the date on which the application was submitted,
except  where  more  favourable  provisions  of  the  legislation  of  any  Member  State
apply."

Article 95g

Transitional provisions relating to the deletion of the entry in Annex IIa of the Austrian care
allowance (Pflegegeld)

the  case  of  applications 

"In 
law
(Bundespflegegeldgesetz)  submitted  not  later  than  8  March  2001  on  the  basis  of  Article
10a(3) of this Regulation, this provision shall continue to apply as long as the beneficiary of
the care allowance continues to reside in Austria after 8 March 2001."

for  care  allowances  under  Austrian 

federal 

9)  Annexes  II,  IIa,  III,  IV  and  VI  shall  be  amended  in  accordance  with  Annex  I  to  this
Regulation.

Article 2

Regulation (EEC) No 574/72 shall be amended as follows:

1)

2)

In Article 4, paragraph 11 shall be deleted.

Article 10c shall be inserted as follows:

"Article 10c

Formalities  laid  down  in  the  event  of  the  application  of  Article  13(2d)  of  the
Regulation to civil servants and persons treated as such.

17

For  the  application  of  Article  13(2d),  the  institution  designated  by  the  competent
authority of the Member State whose legislation is applicable shall issue a certificate
stating that the civil servant or the person treated as such is subject to its legislation."

3)

Article 12a shall be amended as follows:

a) The title of Article 12a shall be replaced by the following text:

"Rules applicable to the persons referred to in Article 14(2) and (3), Article 14a(2-4)
and  Article  14c  of  the  Regulation  who  normally  carry  out  an  employed  or  self-
employed activity in the territory of two or more Member States"

b) The introductory sentence shall be replaced by the following text:

" For the application of the provisions of Article 14(2) and (3), Article 14a(2-4) and
Article 14c of the Regulation, the following rules shall apply:"

The following paragraph 1a shall be added:

"1a. Where, in accordance with Article 14(2)(a) of the Regulation, a person who is
on  the  travelling  or  flying  personnel  of  an  international  transport  undertaking  is
subject to the legislation of the Member State in whose territory the registered office
of  the  undertaking,  or  the  branch  or  permanent  establishment  employing  him  is
located,  or  where  he  resides  and  is  predominantly  employed,  the  institution
designated by the competent authority of that Member State shall issue to the person
concerned a certificate stating that he is subject to its legislation."

4)

5)

Article 32a shall be deleted.

The Annexes shall be amended in accordance with Annex II to this Regulation.

Article 3

This  Regulation  shall  enter  into  force  on    the  day  following  its  publication  in  the  Official
Journal  of  the  European  Union.  Article  1(8)  of  this  Regulation,  relating  to  Article  95f  of
Regulation (EEC) No 1408/71, shall apply from 1 January 2004.

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

Done at Brussels, […]

For the European Parliament
The President

For the Council
The President

18

The annexes to Regulation (EEC) No 1408/71 shall be amended as follows:

ANNEX I

1)

a)

b)

c)

2)

Annex II shall be amended as follows:

In section I, under the heading "C. Germany", the text shall be replaced by the words
"Does not apply".

Section II shall be amended as follows:

i)

under the heading "D. Spain", the word "None" shall be replaced by:

"Childbirth  allowances  (one-off  cash  benefits  for  the  birth  of  the  third  child  and
subsequent children and one-off cash benefits in the event of a multiple birth)"

ii)

under the heading "M. FINLAND", the text shall be replaced as follows:

"Maternity package, maternity lump-sum grant and assistance in the form of a lump
sum  intended  to  offset  the  cost  of  international  adoption  pursuant  to  the  Maternity
Grant Act."

In section III, under the heading "C. GERMANY", point b) shall be deleted.

Annex IIa shall be replaced by the following text:

"Annex IIa

SPECIAL NON-CONTRIBUTORY CASH BENEFITS

"Article 10(a)

A. BELGIUM

a) Income replacement allowance (Law of 27 February 1987);

b) Guaranteed income for elderly persons (Law of 1 April 1969).

B. DENMARK

Accommodation  expenses  for  pensioners  (Law  on  individual  accommodation
assistance, consolidated by Law No 204 of 29 March 1995).

C. GERMANY

Benefits pursuant to the  law  on a minimum  needs-based provision  in  old  age
and in the event of reduced earning capacity.

D. SPAIN

a) Minimum income guarantee (Law No 13/82 of 7 April 1982);

19

b)

c)

Cash  benefits  to  assist  the  elderly  and  invalids  unable  to  work  (Royal
Decree No 2620/81 of 24 July 1981);

Non-contributory  invalidity  and  retirement  pensions  as  provided  for  in
Article  38(1)  of  the  Consolidated  Text  of  the  General  Law  on  Social
Security,  approved  by  Royal  Legislative  Decree  No  1/1994  of  20  June
1994.

E. FRANCE

a)

b)

c)

Supplementary allowance from the National Solidarity Fund (Law of 30
June 1956);

Disabled adults' allowance (Law of 30 June 1975);

The special allowance (Law of 10 July 1952).

F. GREECE

Special benefits for elderly persons (Law 1296/82).

G. IRELAND

a)

b)

Unemployment  assistance  (Social  Welfare  (Consolidation)  Act  1993,
Part III, Chapter 2);

Old  age  and  blind  pensions  (non-contributory)  (Social  Welfare
(Consolidation) Act 1993, Part III, Chapters 4);

c) Widow's 

(non-contributory)  pension,  widower's 

(non-contributory)
pension (Social Welfare (Consolidation) Act 1993, Part III, Chapter 6 as
amended by Part V of the Social Welfare Act 1997);

d)

Disability allowance (Social Welfare Act 1996, Part IV).

H. ITALY

a)

(b)

(c)

(d)

Social  pensions  for  persons  without  means  (Law  No  153  of  30  April
1969);

Pensions  and  allowances  for  the  civilian  disabled  or  invalids  (Laws  No
118  of  30  March  1974,  No  18  of  11  February  1980  and  No  508  of  23
November 1988);

Pensions and allowances for the deaf and dumb (Laws No 381 of 26 May
1970 and No 508 of 23 November1988);

Pensions and allowances for the civilian blind (Laws No 382 of 27 May
1970 and No 508 of 23 November1988);

(e) Benefits supplementing the minimum pensions (Laws No 218 of 4 April

1952, No 638 of 11 November 1983 and No 407 of 29 December 1990);

20

(f)

g)

h)

Benefits  supplementing  disability  allowances  (Law  No  222  of  12  June
1984);

Social allowance (Law No 335 of 8 August 1995);

Social increase.

I. LUXEMBOURG

None.

J. NETHERLANDS

a)

b)

Incapacity benefits for disabled young people (Law of 24 April 1997);

Law  concerning  the  provision  of  supplements  up  to  the  relevant  social
minimum  to  recipients  of  benefits  under  the  Unemployment  Benefits
Act,  the  Sickness  Benefits  Act,  the  Invalidity  Insurance  (Self-employed
Persons) Act, the Invalidity Insurance (Young Disabled Persons) Act, the
Invalidity Insurance Act and the Military Personnel Invalidity Insurance
Act (Toeslagenwet, 6 November 1986).

K. AUSTRIA

Compensatory  supplement  (Federal  Act  of  9  September  1955  on  General
Social  Insurance  —  ASVG,  Federal  Act  of  11  October  1978  on  Social
Insurance for Persons engaged in Trade and Commerce — GSVG and Federal
Act of 11 October 1978 on Social Insurance for Farmers – BSVG).

L. PORTUGAL

a)

b)

Non-contributory  State  old-age  and  invalidity  pension  (Decree-Law  No
464/80 of 13 October 1980);

Non-contributory  widow's  pension  (Regulatory  Decree  No  52/81  of  11
November 1981).

M. FINLAND

a)

b)

Disability allowance (Disability Allowance Act, 124/88);

Housing  allowance  for  pensioners  (Act  concerning 
Allowance for Pensioners, 591/78);

the  Housing

c)

Labour market support (Labour Market Support Act 1542/93).

N. SWEDEN

a)

b)

Housing supplements for persons receiving a pension (Law 1994: 308);

Financial support for the elderly (Law 2001: 853).

21

O. UNITED KINGDOM

a)

b)

Pension credit;

Income-based  allowances  for  jobseekers  (Jobseekers  Act  1995,  28  June
1995,  Sections  I,  (2)  (d)  (ii)  and  3,  and  Jobseekers  (Northern  Ireland),
Order 1995, 18 October 1995, Articles 3 (2) (d) (ii) and 5).

3)

Annex III shall be amended as follows:

a)

In part A, the following points shall be deleted:

Points 1, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 22, 23, 24,
27, 29 a) and b), 30 a) and c), 31, 32, 35 a), b), c), d), e), f), g), 36, 37, 38, 40,
41, 42, 43, 44, 45, 46, 48, 49, 50, 51, 52, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63,
64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 78, 79, 80, 81, 82, 83, 84, 85,
86, 87, 88, 89, 90, 91, 93, 94, 95, 96, 97, 98, 99, 100, 101, 104, 105, 106, 107,
108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 119, 120, 121, 122, 123, 124,
125, 126, 127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140,
141, 142, 143, 144, 145, 146, 147, 148, 149, 150, 152 and 153.

b)

In part B, all references shall be deleted.

4)

In Annex IV, section B shall be amended as follows:

a)

Under the heading "C. GERMANY", the text shall be replaced as follows:

"Farmers' old-age insurance (Alterssicherung der Landwirte)"

b)

Under the heading "H. ITALY", the text shall be replaced as follows:

"Pension insurance schemes for (Assicurazione pensioni per):

-

-

-

-

-

-

-

-

-

-

medical practitioners (medici)

pharmacists (farmacisti)

veterinarians (veterinari)

nurses,  medical  auxiliaries,  children's  nurses  (infermieri,  assistenti
sanitari, vigilatrici infanzia)

engineers and architects (ingegneri ed architetti)

surveyors (geometri)

solicitors (avvocati)

economists (dottori commercialisti)

accountants and business experts (ragionieri e periti commerciali)

employment consultants (consulenti del lavoro)

22

-

-

-

-

-

-

-

-

notaries (notai)

customs agents (spedizionieri doganali)

biologists (biologi)

agricultural technicians and scientists (agrotecnici e periti agrari)

sales representatives (agenti e rappresentanti di commercio)

journalists (giornalisti)

industrial technicians (periti industriali)

actuaries,  chemists,  agronomists,  foresters,  geologists  (attuari,  chimici,
dottori agronomi, dottori forestali, geologi)".

5)

Annex VI shall be amended as follows:

a)

b)

c)

d)

e)

i)

Under the heading "B. DENMARK", point 6b) shall be deleted.

Under  the  heading  "C.  GERMANY",  points  3,  11  and  17  shall  be
deleted.

Under  the  heading  "E.  FRANCE",  the  words  "and  the  parental  child-
rearing allowance" in point 7 shall be deleted.

Under the heading "G. IRELAND", points 5 and 11 shall be deleted.

Under the heading "O. UNITED KINGDOM", the text shall be amended
as follows:

In point 2b), points i) and ii) shall be replaced by the following text:

(i) a spouse or former spouse where a claim is made by :

- a married woman or

- a person whose marriage has terminated otherwise than by the death of
the spouse,

or

23

(ii) a former spouse, where a claim is made by:

- a widower who immediately before pensionable age is not entitled
to widowed parent's allowance; or

- a widow who immediately before pensionable age is not entitled
to  widowed  mother's  allowance,  widowed  parent's  allowance  or
widow's pension, or who is only entitled to an age-related widow's
pension calculated pursuant to Article 46(2) of the Regulation, and
for  this  purpose  "age-related  widow's  pension"  means  a  widow's
pension payable at a reduced rate in accordance with section 39(4)
of the Social Security Contributions and Benefits Act 1992."

iii) Point 22 shall be deleted.

24

Regulation (EEC) No 574/72 shall be amended as follows:

ANNEX II

1) In Annex 4, under the heading "C. GERMANY", the following point 9 shall be added:

"9. Pension schemes of professional associations:

Arbeitsgemeinschaft Berufsständischer Versorgungseinrichtungen, Köln".

Annex 11 shall be deleted.

25