4 Coordination of social security schemes
| (27262)
5896/06
COM(06) 16
| Draft Regulation laying down the procedure for implementing Regulation (EC) No. 883/2004 on the coordination of social security schemes
|
| Legal base | Articles 42 and 308 EC; co-decision; unanimity
|
| Department | Work and Pensions
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| Basis of consideration | SEM of 30 March 2006
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| Previous Committee Report | HC 34-xx (2005-06), para 11 (1 March 2006)
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| To be discussed in Council | June 2006
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared; further information awaited
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Background
4.1 At present, the EC legislation on the coordination of social
security schemes so as to protect the rights of peoples moving
within the Community is contained in a Regulation adopted in 1971.[5]
The Regulation has been amended many times since then to take
account of changes in Member States' social security schemes and
the judgements of the European Court of Justice.
4.2 In 2004 the Council adopted a new Regulation
to simplify and modernise the Regulation of 1971.[6]
It requires another Regulation to bring it into effect.
Previous scrutiny of the implementing Regulation
4.3 In March, we considered the draft of the Regulation
to implement the Regulation of 2004.[7]
4.4 The draft provides, for example, for:
- the payment of benefits on
a provisional basis while a dispute awaits resolution about which
Member State is liable to provide the benefits;
- the criteria for resolving disputes about the
Member State in which a person is resident;
- rules on the aggregation of periods of insurance
that a person has accrued in more than one Member State;
- the obligations of employers to pay the social
security contributions required by the applicable national legislation;
and
- the recovery of benefits paid unduly or in excess.
4.5 The Parliamentary Under-Secretary of State at
the Department of Work and Pensions (Mr James Plaskitt) told us
that the provisions of the draft Regulation are technical and
complex. While he did not expect that they would raise many policy
issues, it would be necessary to complete a detailed assessment
of all the Articles before reaching a firm view. He would send
us a Supplementary Explanatory Memorandum before the end of March.
The Supplementary Explanatory Memorandum
4.6 The Minister tells us that negotiations on the
draft Regulation have only just begun. The effect of the proposals
will become clearer as the discussions proceed.
4.7 The Minister says that Article 44 (periods of
child rearing) is, potentially, the most significant proposal
in the draft Regulation. He explains that:
"In response to recent case-law from the
European Court of Justice, the Commission has included a provision
by which a Member State could have to provide pension provision
for periods of child-rearing, even though the family has moved
to live in a different Member State. We did not consider that
the case-law affected Home Responsibilities Protection (HRP) and
S2P [State Secondary Pension] protection but the draft provision
(Article 44) is widely drawn and could impact on HRP and S2P protection.
This would affect cases where a parent had been insured in the
UK and then moves to another Member State without working there.
We would normally expect UK liability to cease at the time of
the move unless a UK benefit continued to be paid to the person.
This new provision may imply that child-rearing protection must
continue to be provided for as long as our legislation would normally
provide it to a UK resident."
The Minister says that during the detailed negotiations
on Article 44, the impact it would have on the UK will become
clearer.
4.8 There are a number of matters of lesser importance
on which the Government will be seeking clarification or amendments.
The Minister offers to provide us with progress reports on the
negotiations.
Conclusion
4.9 We are grateful to the Minister for his helpful
Supplementary Explanatory Memorandum. We should be grateful if
he would keep us informed about the discussions on Article 44
(periods of child rearing). We also look forward to receiving
the progress reports the Minister has offered to send us. We shall
keep the draft Regulation under scrutiny while we await this further
information.
5 Regulation (EEC) No.1408/71: OJ No. L 149, 5.7.1971,
p.2. Back
6
Regulation (EC) No. 883/2004: OJ No. L 166, 30.4.2004, p.1. Back
7
See headnote. Back
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