Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union within the Stabilisation and Association Council established by the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Montenegro, of the other part, with regard to the provisions on the coordination of social security systems
Date: 2012-03-30
Institutions: European Commission
Subjects: Montenegro, equal treatment, social security legislation, social-security harmonisation

EUROPEAN COMMISSION 

Brussels, 30.3.2012  
COM(2012) 156 final 

2012/0078 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken on behalf of the European Union within the Stabilisation and 
Association Council established by the Stabilisation and Association Agreement between 
the European Communities and their Member States, of the one part, and the Republic 
of Montenegro, of the other part, with regard to the provisions on the coordination of 
social security systems 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Grounds for and objectives of the proposal 

Article  51  of  the  Stabilisation  and  Association  Agreement  between  the  European 
Communities  and  their  Member  States,  of  the  one  part,  and  Montenegro,  of  the  other  part1 
("the  Agreement"),  lays  down  that  the  Stabilisation  and  Association  Council  shall,  by 
decision,  put  provisions  in  place  to  implement  the  principles  on  the  coordination  of  social 
security systems set out in that Article. 

General context 

Article  51  of  the  Agreement  with  Montenegro  contains  provisions  for  limited  coordination 
between  the  social  security  systems  of  Member  States  and  Montenegro.  A  Decision  of  the 
Stabilisation and Association Council established by the Agreement is required in order that 
the principles set out in Article 51 can take effect. 

A  number  of  other  Agreements  with  third  countries  contain  similar  provisions  on  the  co-
ordination of social security systems. This proposal is part of a package of proposals which 
includes  similar  proposals  with  regard  to  the  Agreements  with  Albania,  San  Marino  and 
Turkey.  A  first  package  with  similar  proposals  in  respect  of  Algeria,  Morocco,  Tunisia, 
Croatia, the former Yugoslav Republic of Macedonia and Israel was adopted by the Council 
in October 2010.2 

In order to establish the position to be taken on behalf of the Union in this Stabilisation and 
Association Council, a Council Decision is necessary.  

Existing provisions in the area of the proposal 

At the level of the European Union, Member States' social security systems are coordinated 
by Regulation (EC) No 883/20043 and its implementing Regulation (EC) No 987/20094.  

Council  Regulation  (EU)  No  1231/20105  extends  the  provisions  of  Regulation  (EC)  No 
883/2004  and  Regulation  (EC)  No  987/2009  to  nationals  of  third  countries  who  are  not 
already  covered  by  those  provisions  solely  on  the  grounds  of  their  nationality.  This 
Regulation  already  covers  the  principle  of  aggregation  of  insurance  periods  acquired  by 
Montenegrin workers in the various Member States regarding entitlement to certain benefits, 
as set out in Article 51(1)(a) of the Agreement with Montenegro.  

Consistency with other policies and objectives of the Union 

1 
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5 

OJ L 108, 29.4.2010, p.1. 
OJ L306, 23.11.10. 
OJ L 166, 30.4.2004, p. 1.  
OJ L 284, 30.10.2009 p. 1.  
OJ  L  344,  29.12.2010,  p.  1.  In  accordance  with  Protocols  Nos  21  and  22,  Denmark  and  the  United 
Kingdom are not bound by or subject to the application of Regulation (EU) No 1231/2010. However, 
the United Kingdom continues to be bound by and subject to the application of the previous Regulation 
(EC) No 859/2003, OJ L124, 20.5.2003, p.1. 

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The Stabilisation and Association Agreement with Montenegro has as one of its objectives to 
support the efforts of Montenegro to develop its economic and international cooperation. The 
Agreement is a step towards preparing Montenegro for accession to the EU. Implementation 
of the social security coordination provisions in Article 51 of the Agreement between the EU 
and Montenegro will enhance the special relationship with Albania, as envisaged in Article 8 
TEU. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Consultation of interested parties 

The  proposal  for  limited  coordination  between  the  social  security  systems  of  the  Member 
States and Montenegro is modelled almost identically on the package of six draft Association 
Council Decisions, respectively Stabilisation and Association Council Decisions, in respect of 
Algeria, Morocco, Tunisia, Croatia, the former Yugoslav Republic of Macedonia and Israel, 
in respect of which the European Union position was decided by the Council in October 2010. 
Detailed  negotiation  took  place  in  Council  in  2010  on  the  content  of  such  decisions.  These 
negotiations  were  preceded  by  an  intensive  discussion  with  all  Member  States  in  the 
Administrative Commission for the Coordination of Social Security Systems. 

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

Article 51 of the Agreement with Montenegro contains the principles for limited coordination 
between  the  social  security  systems  of  Member  States  and  Montenegro.  Additionally,  a 
number  of  other  agreements  with  third  countries  contain  similar  provisions  on  the 
coordination of social security systems. All of them require a Decision of the relevant body 
set up by those agreements so that the coordination principles can take effect. 

The  aim  of  the  Articles  on  social  security  in  these  agreements  is  that  a  worker  from  the 
associated country concerned can receive certain social security benefits provided under the 
legislation  of  the  Member  State(s)  to  which  he  is  or  has  been  subject.  This  also  applies,  by 
way of reciprocity, to an EU national working in the associated country. 

As the provisions in the proposals included in the current package of proposals with regard to 
four countries (Albania, Montenegro, San Marino and Turkey) are almost identical – and also 
almost identical to the first package of six decisions in respect of Algeria, Morocco, Tunisia, 
Croatia,  the  former  Yugoslav  Republic  of  Macedonia  and  Israel  adopted  by  the  Council  in 
October 2010, this will facilitate the application of these provisions by Member States' social 
security  institutions.  There  might  be  some  financial  implications  for  national  social  security 
institutions resulting from the application of these proposals, since they have to provide, for 
example,  the  benefits  as  described  in  Article  51  of  the  Agreement  with  Montenegro. 
However, this Article only concerns persons who are or have been contributing to the national 
social security system of the country concerned, as provided for under its national legislation. 
In any case, it may be difficult to gauge the precise impact of these proposals on the national 
social security systems at this stage. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of the proposed action 

This  proposal  consists  of  a  Council  Decision  on  the  position  to  be  taken  on  behalf  of  the 
Union  within  the  Stabilisation  and  Association  Council  established  by  the  Agreement  with 
Montenegro  and,  in  the  Annex,  of  a  draft  Decision  of  the  Stabilisation  and  Association 
Council in the social security field. 

The proposed Decision of the Stabilisation and Association Council fulfils the requirement of 
Article 51 of the Agreement with Montenegro for such a Decision, in order to put in place the 
social  security  principles  contained  in  that  Article.  The  Decision  therefore  contains 
implementing provisions with regard to those provisions of Article 51 of the Agreement with 
Montenegro which are not already covered by Regulation (EU) No 1231/2010.  

Moreover, the proposed Decision of the Stabilisation and Association Council ensures that the 
provisions on the export of benefits and the granting of family benefits also apply, by way of 
reciprocity,  to  EU  workers  legally  employed  in  Montenegro  and  to  their  family  members 
legally resident in Montenegro. 

Legal basis 

Article 218(9) of the Treaty on the Functioning of the European Union in conjunction with its 
Article  79(2)(b).  As  a  consequence,  Denmark  will  not  participate  in  the  adoption  of  this 
decision.  Neither  will  Ireland  and  the  United  Kingdom  participate  in  the  adoption  of  this 
decision, unless notice is given of the wish to take part in the adoption and application of it. 
The non-participation of these countries in the Council decision is without prejudice to their 
participation in the decision of the Stabilisation and Association Council. 

Subsidiarity principle 

The  Agreement  with  Montenegro  provides  for  principles  on  coordination  of  social  security 
systems which have to be applied equally by all Member States. The implementation of these 
principles should therefore be submitted to uniform conditions, which can be better achieved 
at Union level. 

Proportionality principle 

The proposal complies with the proportionality principle for the following reasons. 

Member  States  continue  to  have  exclusive  competence  in  determining,  organising  and 
financing their national social security systems. 

The  proposal  only  organises  to  some  extent  the  coordination  of  social  security  systems  of 
Member States and  Montenegro, to the benefit of the citizens of these countries. Moreover, 
the  proposal  does  not  affect  any  rights  and  obligations  arising  from  bilateral  social  security 
agreements concluded between the Member States and Montenegro where the latter provide 
for more favourable treatment of the persons concerned. 

The proposal minimises the financial and administrative burden for national authorities, as it 
is part of a package of similar proposals which ensure a uniform application of social security 
provisions contained in Association Agreements with third countries. 

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Choice of instruments 

Proposed  instruments:  Council  Decision  (containing  in  Annex  a  draft  Stabilisation  and 
Association Council Decision). 

Other means would not be adequate for the following reason. 

There is no alternative option to the proposed action. Article 51 of the Agreement requires a 
Decision  of  the  Stabilisation  and  Association  Council.  Article  218(9)  of  the  Treaty  on  the 
Functioning  of  the  European  Union  provides  for  a  Council  Decision  for  the  purpose  of 
establishing  the  positions  to  be  adopted  on  behalf  of  the  Union  in  a  body  set  up  by  an 
agreement, when that body is called upon to adopt decisions having legal effects. 

4. 

BUDGETARY IMPLICATION 

The proposal has no implications for the budge of the European Uniont. 

5. 

OPTIONAL ELEMENTS 

Simplification 

The  proposal  will  lead  to  simplification  of  administrative  procedures  for  national  public 
authorities and simplification of administrative procedures for private parties. 

The  provisions  in  the  proposal  relating  to  the  coordination  of  social  security  systems  for 
Montenegrin  nationals  are  almost  identical  to  those  for  the  nationals  of  the  other  associated 
countries. This will lead to a simplification of the procedures and fewer administrative burdens 
for national social security institutions.  

Persons  falling  under  the  proposal  are  not  confronted  with  different  national  provisions  as 
regards  the  social  security  principles  contained  in  Article  51  of  the  Agreement  with 
Montenegro, and can therefore rely instead on uniform provisions within the Community. 

Detailed explanation of the proposal 

A. Council Decision on the position to be taken on behalf of the European Union within 
the  Stabilisation  and  Association  Council  established  by  the  Stabilisation  and 
Association  Agreement  with  Montenegro  with  regard  to  the  provisions  on  the 
coordination of social security systems. 

Article 1 

This Article provides for the adoption of the EU position in the EU-Montenegro Stabilisation 
and Association Council. 

B.  Annexed  draft  Decision  of  the  Stabilisation  and  Association  Council  with  regard  to 
the provisions on the coordination of social security systems contained in the Agreement. 

Part I: General provisions 

Article 1 

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This Article defines, for the purposes of the legislation of a Member State and for the purpose 
of  the  legislation  of  Montenegro,  the  terms  "Agreement",  "Regulation",  "implementing 
Regulation", "Member State", "worker", "member of the family", "legislation", "benefits" and 
"exportable benefits", and refers to the Regulation and implementing Regulation for the other 
terms used in the annexed Decision. 

Article 2 

In line with the wording of Article 51 of the Agreement with Montenegro, this Article defines 
the persons covered by the annexed Decision. 

Article 3 

This  Article  provides  for  non-discriminatory  treatment  of  all  persons  covered  by  the 
Agreement with regard to all social security benefits covered by it. 

Part II 

Relations between the Member States and Montenegro 

This Part of the annexed draft Decision covers the principles contained in Article 51(1)(b) of 
the Agreement with Montenegro as well as the reciprocity clause with regard to EU nationals 
and the members of their family, as provided for in Article 51 (2). 

Article 4 

This Article contains the principle of the export of cash benefits as provided for in Article 51 
(1)(b) of the Agreement with Montenegro and makes it clear that this principle is limited to 
the  benefits  contained  in  Article  1(1)(i)  of  the  annexed  Decision  which  lists  the  benefits 
referred to in this paragraph. 

Part III 

Miscellaneous provisions 

Article 5 

This  Article  contains  general  provisions  for  cooperation  between  Member  States  and  their 
institutions, of the one part, and Montenegro and its institutions, of the other part, as well as 
between the beneficiaries and the institutions concerned. These provisions are similar to those 
of Article 76 (3), (4), first and third sub-paragraphs, and (5) of Regulation (EC) No 883/2004. 

Article 6 

This  Article  lays  down  the  procedures  for  administrative  checks  and  medical  examinations 
similar  to  those  contained  in  Article  87  of  Regulation  (EC)  No  987/2009.  Moreover,  it 
provides for the possibility to adopt other implementing provisions in this area. 

Article 7 

This Article refers to the possiblity to use the conflict settlement procedure laid down in the 
Agreement. 

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Article 8 

This  Article  refers  to  Annex  II  to  the  annexed  Decision  which  is  similar  to  Annex  XI  to 
Regulation  (EC)  No  883/2004,  and  which  is  necessary  in  order  to  lay  down  the  necessary 
special provisions  for  the application of Montenegrin legislation with regard to the annexed 
Decision. 

Article 9 

This  Article  allows  administrative  proedures  from  existing  agreements  between  a  Member 
State and Montenegro to continue to apply under certain conditions. 

Article 10 

This  Article  provides  for  the  possibility  to  conclude  supplementary  administrative 
Agreements. 

Article 11 

The  transitional  provisions  provided  for  under  this  Article  are  similar  to  the  transitional 
provisions in Article 87 (1), (3), (4), (6) and (7) of Regulation (EC) No 883/2004.  

Article 12 

This  Article  clarifies  the  legal  status  of  the  Annexes  to  the  annexed  Decision  and  the 
procedure for amending them. 

Article 13 

This Article clarifies the date of entry into force of the annexed Decision. 

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2012/0078 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken on behalf of the European Union within the Stabilisation and 
Association Council established by the Stabilisation and Association Agreement between 
the European Communities and their Member States, of the one part, and the Republic 
of Montenegro, of the other part, with regard to the provisions on the coordination of 
social security systems 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 79(2)(b) in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Article  51  of  the  Stabilisation  and  Association  Agreement  between  the  European 
Communities  and  their  Member  States,  of  the  one  part,  and  the  Republic  of 
Montenegro, of the other part6 ("the Agreement"), provides that the Stabilisation and 
Association  Council  shall,  by  decision,  put  in  place  the  provisions  to  implement  the 
principles set out in that Article. 

In  accordance  with  Article  3  of  Protocol  (No  21)  on  the  position  of  the  United 
Kingdom and Ireland in respect of the Area of Freedom, Security and Justice, annexed 
to the Treaty on European Union and to the Treaty on the Functioning of the European 
Union, [Ireland] [and] [the United Kingdom][has] [have] notified, by letter[s] of [ …], 
[its] [their] wish to take part in the adoption and application of this Decision. 

In accordance with Articles 1 and 2 of Protocol (No 21) on the position of the United 
Kingdom and Ireland in respect of the Area of Freedom, Security and Justice, annexed 
to the Treaty on European Union and to the Treaty on the Functioning of the European 
Union,  and  without  prejudice  to  Article  4  of  that  Protocol,  [Ireland]  [the  United 
Kingdom] [is] [are] not taking part in the adoption of this Decision and [is] [are] not 
bound by it or subject to its application. 

In accordance with Articles 1 and 2 of Protocol (No 22) on the position of Denmark, 
annexed to the Treaty on European Union and to the Treaty on the Functioning of the 
European Union, Denmark is not taking part in the adoption of this Decision and is not 
bound by it or subject to its application. 

6 

OJ L 108, 29.4.2010, p.1. 

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HAS ADOPTED THIS DECISION:  

Article 1 

The  position  to  be  taken  on  behalf  of  the  European  Union  within  the  Stabilisation  and 
Association  Council  set  up  by  the  Stabilisation  and  Association  Agreement  between  the 
European  Communities  and  their  Member  States,  of  the  one  part,  and  the  Republic  of 
Montenegro, of the other part ("the Agreement"), concerning the implementation of Article 51 
of  the  Agreement,  shall  be  based  on  the  draft  decision  of  the  Stabilisation  and  Association 
Council attached to this Decision. 

Minor changes to the draft decision may be agreed to by the representatives of the Union in 
the Stabilisation and Association Council without further decision of the Council. 

The Decision of the  Stabilisation  and  Association Council shall be published in the Official 
Journal of the European Union. 

Article 2 

Article 3 

This Decision shall enter into force on the day of its adoption. 

Done at Brussels,  

For the Council 
The President 

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ANNEX  

Draft 

DECISION No.../…. OF THE EU – MONTENEGRO STABILISATION AND 
ASSOCIATION COUNCIL 

of ... 

with regard to the provisions on the coordination of social security systems contained in 
the Stabilisation and Association Agreement 

THE STABILISATION AND ASSOCIATION COUNCIL, 

Having  regard  to  the  Stabilisation  and  Association  Agreement  establishing  an  association 
between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and  the 
Republic of Montenegro, of the other part7, and in particular Article 51 thereof, 

Whereas: 

(1) 

(2) 

Article  51  of  the  Stabilisation  and  Association  Agreement  between  the  European 
Communities  and  their  Member  States,  of  the  one  part,  and  the  Republic  of 
Montenegro, of the other part ("the Agreement"), provides for the coordination of the 
social  security  systems  of  Montenegro  and  the  Member  States  and  lays  down  the 
principles for such coordination. 

Article  51  of  the  Agreement  provides  that  the  Stabilisation  and  Association  Council 
shall adopt a Decision for the purposes of implementing the principles set out in that 
Article. 

(3)  With  regard  to  the  application  of  the  non-discrimination  principle,  this  Decision 
should not give any additional rights arising from certain facts or events occurring on 
the  territory  of  the  other  Contracting  Party,  where  such  facts  or  events  are  not  taken 
into account under the legislation of the first Contracting Party, other than the right to 
export certain benefits. 

(4) 

(5) 

In applying this Decision, the right of Montenegrin workers to family benefits should 
be subject to the condition that their family members legally reside with these workers 
in the Member State where the workers are employed. This Decision should not give 
any entitlement to family benefits with respect to members of their family who reside 
in another state, for instance Montenegro. 

Council Regulation (EU) No 1231/20108 already extends the provisions of Regulation 
(EC)  No  883/2004  and  Regulation  (EC)  No  987/2009  to  nationals  of  third  countries 
who  are  not  already  covered  by  those  provisions  solely  on  the  grounds  of  their 
nationality. Regulation (EU) No 1231/2010 already covers the principle of aggregation 
of insurance periods acquired by Montenegrin workers in the various Member States 

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OJ L108, 29.4.2010, p.1. 
OJ L 344, 29.12.2010, p. 1. 

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(6) 

(7) 

regarding  entitlement  to  certain  benefits,  as  set  out  in  Article  51(1)(a)  of  the 
Agreement. 

It might be necessary to lay down special provisions which correspond to the specific 
characteristics of the legislation of Montenegro, in order to facilitate the application of 
the coordination rules. 

To ensure the smooth functioning of the coordination of the social security systems of 
the  Member  States  and  of  Montenegro,  it  is  necessary  to  provide  for  specific 
provisions regarding the cooperation between the Member States and Montenegro as 
well as between the person concerned and the institution of the competent State. 

(8) 

Transitional  provisions  should  be  adopted  to  protect  the  persons  covered  by  this 
Decision and to ensure that they do not lose rights as a result of its entry into force. 

HAS ADOPTED THIS DECISION:  

PART I 

GENERAL PROVISIONS 

Article 1 

Definitions 

1. 

(a) 

(b) 

(c) 

(d) 

(e) 

For the purposes of this Decision 

"Agreement"  means  the  Stabilisation  and  Association  Agreement  between  the 
European Communities and their Member States, of the one part, and the Republic of 
Montenegro, of the other part; 

"Regulation"  means Regulation (EC) No 883/2004 of the European Parliament and 
of  the  Council  of  29  April  2004  on  the  coordination  of  social  security  systems9  as 
applicable in the Member States of the European Union; 

"implementing  Regulation"  means  Regulation  (EC)  No  987/2009  of  the  European 
Parliament and of the Council of 16 September 2009 laying down the procedure for 
implementing  Regulation  (EC)  No  883/2004  on  the  coordination  of  social  security 
systems10; 

"Member State" means a Member State of the European Union; 

"worker" means, 

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10 

OJ L 166, 30.4.2004, p.1. 
OJ L 284, 30.10.2009, p. 1. 

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(i) 

(ii) 

for the purposes of the legislation of a Member State, a person pursuing 
an activity as an employed person within the meaning of Article 1(a) of 
the Regulation; 
for the purposes of the legislation of Montenegro, a person pursuing an 
activity as an employed person within the meaning of that legislation; 

(f) 

"member of the family" means, 

(i) 

(ii) 

for  the  purposes  of  the  legislation  of  a  Member  State,  a  member  of  the 
family within the meaning of Article 1(i) of the Regulation; 
for the purposes of the legislation of Montenegro, a member of the family 
within the meaning of that legislation; 

(g) 

"legislation" means, 

(i) 

(ii) 

in  relation  to  the  Member  States,  legislation  within  the  meaning  of 
Article  1(1)  of  the  Regulation  as  applicable  to  the  benefits  covered  by 
this Decision; 
in  relation  to  Montenegro,  the  relevant  legislation  as  applicable  in 
Montenegro relating to the benefits covered by this Decision; 

(h) 

"benefits" means, 

– 
– 
– 
– 

– 

old-age pensions, 
survivors' pensions, 
pensions in respect of accidents at work and occupational diseases, 
invalidity  pensions  related  to  accidents  at  work  and  occupational 
diseases, 
family allowances. 

(i) 

"exportable benefits" means, 

(i) 
– 
– 
– 
– 

in relation to the Member States: 
old-age pensions, 
survivors' pensions,  
pensions in respect of accidents at work and occupational diseases,  
invalidity  pensions  related  to  accidents  at  work  and  occupational 
diseases, 

within the meaning of the Regulation, with the exception of special non-contributory 
cash benefits as listed in Annex X to the Regulation; 

(ii) 

in relation to Montenegro, the corresponding benefits provided under the 
legislation of Montenegro, with the exception of special non-contributory 
cash benefits as set out in Annex I to this Decision; 

2. 

(a) 

(b) 

Other terms used in this Decision shall have the meaning which is assigned to them: 

in relation to the Member States, in the Regulation and the implementing Regulation; 

in relation to Montenegro, in the relevant legislation as applicable in Montenegro. 

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Article 2 

Persons covered 

This Decision shall apply: 

(a) 

(b) 

(c) 

(d) 

1. 

2. 

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

to the members of the family of workers referred to in point (a) provided that these 
family members are or have been legally resident with the worker concerned while 
the worker is employed in a Member State; 

to  workers  who  are  nationals  of  a  Member  State  who  are  or  have  been  legally 
employed  in  the  territory  of  Montenegro  and  who  are  or  have  been  subject  to  the 
legislation of Montenegro and their survivors; and 

to the members of the family of workers referred to in point (c) provided that these 
family members are or have been legally resident with the worker concerned while 
the worker is employed in Montenegro. 

Article 3 

Equality of Treatment  

Workers who are Montenegrin nationals and are legally employed in a Member State 
and any members of their families legally residing with them shall enjoy, with regard 
to  the  benefits  within  the  meaning  of  Article  1(1)(h),  treatment  free  from  any 
discrimination  based  on  nationality  relative  to  nationals  of  the  Member  States  in 
which those workers are employed. 

Workers  who  are  nationals  of  a  Member  State  and  are  legally  employed  in 
Montenegro  and  any  members  of  their  families  legally  residing  with  them  shall 
enjoy,  with  regard  to  the  benefits  within  the  meaning  of  Article  1(1)(h),  treatment 
free from any discrimination based on nationality relative to Montenegrin nationals. 

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Part II 

RELATIONS BETWEEN THE MEMBER STATES AND MONTENEGRO 

Article 4 

Waiving of residence clauses 

Exportable  benefits  within  the  meaning  of  Article  1(1)(i)  to  which  the  persons  as 
referred to in Article 2(a) and (c) are entitled shall not be subject to any reduction, 
modification,  suspension,  withdrawal  or  confiscation  by  reason  of  the  fact  that  the 
beneficiary is residing, 

for  the  purpose  of  a  benefit  under  the  legislation  of  a  Member  State,  within  the 
territory of Montenegro, or 
for the purpose of a benefit under the legislation of Montenegro, within the territory 
of a Member State. 

Family members of a worker as referred to in Article 2(b) are entitled to exportable 
benefits  within  the  meaning  of  Article  1(1)(i)(i)  in  the  same  way  as  the  family 
members of a worker who is a national of the Member State concerned when these 
family members reside within the territory of Montenegro. 

Family members of a worker as referred to in Article 2(d) are entitled to exportable 
benefits  within  the  meaning  of  Article  1(1)(i)(ii)  in  the  same  way  as  the  family 
members of a worker who is a national of Montenegro when these family members 
reside within the territory of a Member State. 

PART III 

MISCELLANEOUS PROVISIONS 

Article 5 

Cooperation  

The Member States and Montenegro shall communicate to each other all information 
regarding  changes  in  their  legislation  which  may  affect  the  implementation  of  this 
Decision. 

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

1. 

(i) 

(ii) 

2. 

3. 

1. 

2. 

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3. 

4. 

5. 

6. 

7. 

1. 

2. 

The  authorities  and  institutions  of  the  Member  States  and  of  Montenegro  may,  for 
the  purposes  of  this  Decision,  communicate  directly  with  one  another  and  with  the 
persons involved or their representatives. 

The  institutions  and  persons  covered  by  this  Decision  shall  have  a  duty  of  mutual 
information and cooperation to ensure the correct implementation of this Decision. 

The persons concerned must inform the institutions of the competent Member State 
or Montenegro, where the latter is the competent state, and of the Member State of 
residence  or  Montenegro,  where  the  latter  is  the  State  of  residence,  as  soon  as 
possible of any change in their personal or family situation which affects their right 
to benefits under this Decision. 

Failure to respect the obligation of information referred to in paragraph 5 may result 
in  the  application  of  proportionate  measures  in  accordance  with  national  law. 
Nevertheless,  these  measures  shall  be  equivalent  to  those  applicable  to  similar 
situations  under  domestic  law  and  shall  not  make  it  impossible  or  excessively 
difficult  in  practice  for  claimants  to  exercise  the  rights  conferred  on  them  by  this 
Decision. 

The  Member  States  and  Montenegro  may  provide  for  national  provisions  that 
establish conditions for verification of the entitlement to benefits to take into account 
the fact that the beneficiaries are staying or residing outside the territory of the State 
where  the  debtor  institution  is  located.  Such  provisions  shall  be  proportionate,  free 
from any discrimination based on nationality and in accordance with the principles of 
this Decision. Such provisions shall be notified to the Stabilisation and Association 
Council. 

Article 6 

Administrative checks and medical examinations 

This  Article  shall  apply  to  the  persons  as  referred  to  in  Article  2  and  in  receipt  of 
exportable  benefits  as  referred  to  in  Article  1(1)(i),  as  well  as  to  the  institutions  in 
charge of the implementation of this Decision. 

Where a recipient or a claimant of benefits, or a member of his family, is staying or 
residing within the territory of a Member State when the debtor institution is located 
in Montenegro or in Montenegro when the debtor institution is located in a Member 
State, the medical examination shall be carried out, at the request of that institution, 
by the institution of the beneficiary’s place of stay or residence in accordance with 
the procedures laid down by the legislation applied by that institution.  

The debtor institution shall inform the institution of the place of stay or residence of 
any special requirements, if necessary, to be followed and points to be covered by the 
medical examination.  

The institution of the place of stay or residence shall forward a report to the debtor 
institution that requested the medical examination.  

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The debtor institution shall reserve the right to have the beneficiary examined by a 
doctor of its choice, either in the territory where the recipient or claimant of benefit is 
staying or residing or in the country where the debtor institution is located. However, 
the beneficiary may be asked to return to the State of the debtor institution only if he 
or  she  is  able  to  make  the  journey  without  prejudice  to  his  health  and  the  cost  of 
travel and accommodation is paid for by the debtor institution.  

Where a recipient or a claimant of benefits, or a member of his family, is staying or 
residing in the territory of a Member State when the debtor institution is located in 
Montenegro  or  in  Montenegro  when  the  debtor  institution  is  located  in  a  Member 
State,  the  administrative  check  shall,  at  the  request  of  the  debtor  institution,  be 
performed by the institution of the beneficiary’s place of stay or residence.  

The institution of the place of stay or residence shall forward a report to the debtor 
institution that requested the administrative check. 

The debtor institution shall reserve the right to have the situation of the beneficiary 
examined by a professional of its choice. However, the beneficiary may be asked to 
return  to  the  State  of  the  debtor  institution  only  if  he  or  she  is  able  to  make  the 
journey without prejudice to his health and the cost of travel and accommodation is 
paid for by the debtor institution. 

One  or  more  Member  States  and  Montenegro  may  agree  on  other  administrative 
provisions,  subject  to  their  informing  the  Stabilisation  and  Association  Council 
thereof. 

As  an  exception  to  the  principle  of  free-of-charge  mutual  administrative  assistance 
set out in Article 5(2) of this Decision, the effective amount of the expenses of the 
checks  referred  to  in  paragraphs 2 and 3  of  this  Article  shall  be  refunded  to  the 
institution  which  was  requested  to  carry  them  out  by  the  debtor  institution  which 
requested them. 

3. 

4. 

5. 

Article 7 

Application of Article 129 of the Agreement 

Article 129 of the Agreement shall apply in case either Party considers that the other Party has 
not complied with the obligations as laid down in Articles 5 and 6. 

Article 8 

Special provisions for the application of the legislation of Montenegro 

The Stabilisation and Association Council may, if necessary, lay down special provisions for 
the application of the legislation of Montenegro in Annex II. 

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Article 9 

Administrative procedures from existing bilateral agreements 

Administrative procedures contained in existing bilateral agreements between a Member State 
and Montenegro may continue to apply provided that these procedures do not adversely affect 
the rights or obligations of the persons concerned established by this Decision. 

Article 10 

Agreements supplementing the procedures for implementing this Decision 

One  of  more  Member  States  and  Montenegro  may  conclude  agreements  designed  to 
supplement  the  administrative  procedures  for  implementing  this  Decision,  especially  with 
regard to preventing and combating fraud and error. 

PART IV 

TRANSITIONAL AND FINAL PROVISIONS 

Article 11 

Transitional provisions 

1. 

2. 

3. 

4. 

5. 

No rights shall be acquired pursuant to this Decision for the period before its entry 
into force. 

Subject to paragraph 1, a right shall be acquired under this Decision even if it relates 
to a contingency arising before its date of entry into force. 

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, at the request of 
that person, be provided or resumed with effect from the date of entry into force of 
this  Decision,  provided  that  the  rights  for  which  benefits  were  previously  provided 
have not given rise to a lump-sum payment. 

If a request as referred to in paragraph 3 is submitted within two years from the date 
of  entry  into  force  of  this  Decision,  the  rights  acquired  in  accordance  with  this 
Decision shall have effect from the date of entry into force of this Decision, and the 
legislation  of  any  Member  State  or  Montenegro  concerning  the  forfeiture  or 
limitation of rights may not be invoked against the persons concerned. 

If a request as referred to in paragraph 3 is submitted after the expiry of the two-year 
period following the date of entry into force of this Decision, rights not forfeited or 
not time-barred shall have effect from the date on which the request was submitted, 

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subject to any more favourable provisions under the legislation of any Member State 
or Montenegro. 

Article 12 

Annexes to this Decision 

1. 

2. 

The Annexes to this Decision constitute an integral part thereof. 

At the request of Montenegro or the European Union, the Annexes may be amended 
by a decision of the Stabilisation and Association Council. 

Article 13 

Entry into force 

This Decision shall enter into force on the day following that of its publication in the Official 
Journal of the European Union. 

Done at Brussels, 

For the Stabilisation and Association Council 

The President 

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LIST OF MONTENEGRIN SPECIAL NON-CONTRIBUTORY CASH BENEFITS 

ANNEX I 

EN 

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ANNEX II 

SPECIAL PROVISIONS FOR THE APPLICATION OF THE LEGISLATION OF 
MONTENEGRO 

EN 

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