EU To Enhance Migrant Worker Pension Rights

By Editorial 10 December, 2013

The European Union's (EU) Committee of Permanent Representatives has endorsed proposals for the preservation of supplementary pension rights for workers moving between member states.

Lithuania, the current holder of the EU Presidency, last month reached an agreement with the European Parliament on changes to the Directive on minimum requirements for enhancing worker mobility. The EU defines a supplementary pension as a retirement pension provided for under the rules of a supplementary pension scheme established in conformity with the national legislation and practice of a member state.

The Amended Directive will apply only to supplementary pension schemes that exist as a result of an employment relationship and are based on the reaching of retirement age, or on fulfilling other requirements laid down by the scheme or by national legislation. It will include "externally mobile workers" who are active pension scheme members, whose current employment relationship terminates for reasons other than their becoming eligible for a supplementary pension, and who move between member states.

Member states must adopt the laws, regulations, and administrative provisions needed for them to comply with the Directive within four years of its entry into force.

For the avoidance of doubt, it should be noted that the proposals do not apply to private pension schemes, whether corporate or individual.

Tags: Tax | Investment | Pensions | Law | Retirement | Legislation | Regulation | European Union (EU) | Lithuania | Expats | Pensions | Europe | Pensions |


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