Workers moving from one job to another across Europe currently face the possibility of loosing all or a part of their supplementary pension, and this creates a real obstacle to mobility. EUROCADRES - the Council of European professional and managerial staff - has consistently argued the case for a directive to solve this problem. It is particularly significant for mobile professional and managerial staff.

The new directive establishes the right to preservation of acquired rights for a worker leaving a supplementary pension scheme to work in another member State; it guarantees the cross border payment of a pension; and workers temporarily posted by their employer to another member State will have the right to remain affiliated to their home country scheme. The Commission  points out that there were 540 000 postings of up to one year (in 1994) with another 14 700 of longer duration; alternatively, they point out that 2% of the European workforce works in another member State.

Michel Rousselot, president of EUROCADRES, said: « the question of the protection of the supplementary pensions rights of the mobile professional and managerial staff has been a major priority. This directive will be a first step in protecting the pensions rights of our members where there has previously been no protection. They increasingly have to face the opportunities and challenges of using their qualifications throughout Europe in the course of a mobile career. The pension security which they need and which must be protected at the European level will also help companies to manage their staff efficiently across Europe ».

In a pamphlet recently published, under the co-ordination of Peter Smith (from BALPA, British Airlines Pilots Association), EUROCADRES has pointed out that, if nothing is done, scheme members could loose about two-thirds of their supplementary pensions as a result of moving around Europe. The British Presidency and the Commission are to be congratulated on achieving the breakthrough during the British Presidency of the European Union.

But this directive will not solve all the problems. In particular, the vesting periods required in certain schemes contradict the principle of free movement established in the Treaty. It is now crucial to build on this initial step with further progress on issues such as vesting periods, transfer of pensions and taxation. EUROCADRES has argued in favour of the « pensions forum » proposed in the report of the High Level Panel on free movement of persons chaired by Madam Simone Veil. It should be composed of representatives from member States and from the European social partners. We remain convinced that this is the most practical current proposal for these issues.  

Brussels, 8th June 1998  

(EUROCADRES press release 8/6/98)