CELEX: 51974PC0241
Language: en
Date: 1974-02-22
Title: Supplement to the proposal for a Council Regulation amending Regulations (EEC) No 1408/71 and No 574/72 on the application of social security schemes to employed persons and their families moving within the Community (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
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DOCUMENTS "COM"
COM (74) 241
Vol. 1974/0046
 ---pagebreak--- Disclaimer
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concernant l'ouverture au public des archives historiques de la Communauté économique
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROEBAN COMMUNEUES
                                        COM(74)241 final
                                        Brussels , 22 February 1974
          Supplement to the proposai for a Council Résiliation
          amending Regulations ( EEC ) No 1408/71 and No 574/ 72
          on the application of social security schemes to
          employed persons and their families moving within
          the Community
               ( submitted to the Council by the Commission )
   C0ri ( 74 ) 241 final
 ---pagebreak---                            Explanatory Memorandum
1 . The Irish social security scheme provides "basic flat–rate benefits which
    do not vary with earnings "but which are increased substantially for
    dependants . New legislation enacted in 1973 ( Social Welfare ( Pay–related
    Benefit ) Act 1973 ) provides for a scheme of pay–related benefit .
    The new pay-related benefit will be payable as a supplement to unemployment
    benefit , maternity allowance and occupational injury benefit . It may be
    paid after a two-weeks waiting period for up to 2 weeks at the most as
    long as the person concerned continues to be entitled to the basic flat–
    rate benefit .
    The weekly rate of the pay-related benefit which will be payable to a
    person will be governed by the gross amount of his earnings in the relevant
    income tax year from the employment or employments in which he was insured
    for all benefits under the social security legislation . These earnings
    coincide with the earnings which are assessable to income tax under the
    Irish income tax legislation applicable to paid workers and are termed
    "reckonable earnings " for the purpose of the pay-related benefit scheme .
    "The relevant income tax year " will be the year ended 5"th April preceding
    the pay–related benefit year ( calendar year ) in which the payment of the
    basic flat-rate benefit commences , but periods of unemployment or
    incapacity for work not separated by more than 13 weeks form one continuous
    period for benefit purposes known as a "period of interruption of employment "
    and the same relevant income tax year will normally apply throughout such
    a period.
    The weekly rate of the pay-related benefit will be fifrfo of the amount by which
    the person 's reckonable weekly earnings (the average weekly amount . of his
    reckonable earnings ) for the relevant income tax year exceeds £14 but does
    uot exceed an upper limit or ceiling which has yet to be determined . The
    pay-related contributions to finance the scheme will be collected by the
    Revenue Commissioners along with income tax under the income tax collection
    system and the information as to the reckonable earnings in the relevant
    income tax year on which the amount of pay–related benefit payable in each
    case will be calculated will be provided by the Revenue Commissioners . The
    information will be supplied by way of a file on computer magnetic tape of
    the reckonable earnings of all workers liable to pay-related contributions .
 ---pagebreak---  The earnings to "be taken into account in the Irish pay-related benefit
 scheme for unemployment and incapacity for work will therefore relate to
 a past period and will he averaged over a year . Articles 23 and bd of
 Regulation Ho 1408/71 relating .to the calculation of earnings-related,
 benefit for incapacity for work and unemployment were drawn up in the _
 context of schemes in which benefits are wholly ear-nings-related and m
 which the rate of short-term "benefit is related to recent earning .
 Accordingly it is submitted that these provisions of the Regulation are
 not suitable to the Irish pay-related benefit scheme , as under them a
 newly arrived national from another Member State could , by having
 benefit related to recent earnings at current levels of pay , e en
 to substantially more by way of pay-related benefit than an Irish
  or another EEC national who has been in Ireland for two years or so^whos
 benefit would be tied to earnings in the past at the lower levels o_ p^y
  then applicable .
  It is , therefore , proposed that where a worker who claims pay-related
  benefit under the Irish pay-related benefit scheme was employed under
  the legislation of another Member State in the relevant income tax year ,
  he should be credited for each week of such employment with an amount
   equivalent to the average weekly earnings in the relevant ^ income tax year
   of persons covered by the Irish pay-related benefit legislation. These
   average weekly earnings will he calculated at the commencement of each
   pay-related benefit year from the information which will be^supplied by
   the Revenue Commissioners . Separate figures will be calculated - or men
   and women .
   It should be noted that a similar provision concerning United Kingdom
   legislation appears in the original proposal , under Article 1 ,
   section 4« – ( 5 ) –
. The pay-related benefit scheme will come into force on 6 April          the
   provision of Annex V of Regulation Ho 1408/71 relating to the scheme
    should therefore also enter into force on that date .
 ---pagebreak--- Supplement t o the pr oposa l, for a Council Regulation amending Rerralaticns
Jh^cJlSo 140^771 3 Jtfo 574/72 on the application of social' securixy schemes
to employed persons and their families moving within the Community ( trans­
mitted to the President of the Council on 14 January 1974 ) •
 ---pagebreak--- 1 , The following text shall be added to Article 1(4) of the proposal ,
    relating to Annex V , under subparagraph ( 3 ) c ) , concerning Ireland :
    "7 » For - the purpose of calculating earnings for the award of the
         pay-related supplement to sickness , maternity and unemployment
         benefits under Irish legislation , a worker shall , in derogation
         from Article 23(l ) and 6C(l ) of the Regulation , be credited for
         each week of employment completed under the legislation of
         another Member State during the relevant tax year , with an amount
         which is equivalent to the average weekly earnings in that year
         of male or female workers , as applicable . tf
2 , The following subparagraph shall be inserted between the first and second
    indented subparagraphs of Article 3 :
    " – the provisions of paragraph 7 of Annex V point E. Ireland of
         Regulation ( EEC ) No I408/7I which shall take effect on 6 April 1974|"