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Commission welcomes final adoption of Directive on supplementary pension rights

15/04/2014 Commission welcomes final adoption of Directive on supplementary pension rights

The European Commission welcomes the final adoption by the European Parliament of the Directive improving the protection of supplementary pension rights for mobile workers.

The new rules will help to remove current obstacles to free movement, such as the requirement for very long periods of employment to acquire these rights or the risk of the rights being lost when leaving a pension scheme.

The Directive will improve the protection of mobile workers' supplementary pension rights (i.e. rights under occupational pension schemes – so-called 'second-pillar' pension schemes which are linked to an employment relationship) in three ways:

  • Acquisition: pension rights should be vested (guaranteed) after three years of employment at the latest. When a minimum age for vesting is stipulated, it must not be higher than 21 years.
  • Preservation: the rights of workers who leave an employer-run pension scheme before retirement ("deferred beneficiaries") must be preserved and treated fairly compared to the rights of those workers who remain in the scheme, for example as regards indexation.
  • Information: workers have the right to know how potential mobility would affect their pension rights, and those who have left the scheme (deferred beneficiaries) must be informed about the value of their rights.