11 Coordination of social security schemes
| (27262)
5896/06
COM(05) 16
| Draft Regulation laying down the procedure for implementing Regulation (EC) No. 883/2004 on the coordination of social security schemes
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| Legal base | Articles 42 and 308 EC; co-decision; unanimity
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| Document originated | 31 January 2006
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| Deposited in Parliament | 6 February 2006
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| Department | Work and Pensions
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| Basis of consideration | EM of 15 February 2006
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| Previous Committee Report | None; but see HC 42-iii (2003-04), para 12 (17 December 2003)
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| To be discussed in Council | No date set
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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
11.1 At present, the EC legislation on the coordination of social
security schemes so as to protect the rights of peoples moving
with in the Community is contained in a Regulation adopted in
1971.[40] 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.
11.2 In 1998 the Commission proposed legislation
to simplify and modernise the 1971 Regulation. The negotiations
were technical, detailed and difficult. They dragged on for over
four and a half years. Even so, when the new Regulation was adopted
in April 2004,[41] some
of the Annexes had not been settled. It cannot be brought into
effect until those Annexes have been agreed and a Regulation on
the implementation of the new Regulation has been adopted.
11.3 Articles 3(1)(c) and 39 of the EC Treaty establish
the free movement of workers as one of the objectives of the Community.
Article 42 of the Treaty requires the Council to adopt such social
security measures as are necessary to provide freedom of movement
to employed people and their dependents. Article 308 of the Treaty
provides the legal base for legislation on the social security
of people moving within the Community for the purposes of self-employment
and for such legislation on the social security of other insured
people.
The document
11.4 Just as the 1971 Regulation on the coordination
of social security schemes was implemented by a subsequent Regulation,[42]
a further Regulation is required to implement the 2004 Regulation.[43]
The purpose of this document is to implement the 2004 Regulation.
11.5 So as to make it easier and quicker for people
to obtain the benefits to which they are entitled, the draft Regulation
makes provision for, for example, electronic exchanges of information
and increased cooperation between social security authorities
to streamline procedural requirements. In order to enable the
2004 Regulation to be implemented, the draft makes provision for,
for example:
- 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;
- the application of the Articles of the 2004 Regulation
on, for example, unemployment, sickness, maternity, incapacity
and invalidity benefits and death grants; and
- the recovery of benefits paid unduly or in excess.
The Government's view
11.6 The Parliamentary Under-Secretary of State at
the Department of Work and Pensions (Mr James Plaskitt) tells
us that the Government wishes to ensure that the coordination
of social security schemes is made as simple as possible for both
for the people who wish to exercise their rights and for the authorities
which administer social security schemes.
11.7 The provisions of the draft Regulation are technical
and complex. While he does not expect that they will raise many
policy issues, it will be necessary to complete a detailed assessment
of all the Articles before reaching a firm view. The assessment
will be completed in time for the Minister to provide us with
a Supplementary Explanatory Memorandum before the end of March.
Conclusion
11.8 We understand the Minister's wish to complete
a detailed assessment of this long and complicated draft Regulation
before he provides us with substantive comments on it. We look
forward to receiving his Supplementary Explanatory Memorandum.
Meanwhile, we shall keep the draft Regulation under scrutiny.
40 Regulation (EEC) No.1408/71: OJ No. L 149, 5.7.1971,
p.2. Back
41
Regulation (EC) No. 883/2004: OJ No. L 166, 30.4.2004, p.1. Back
42
Regulation (EEC) No. 574/1972. Back
43
Article 89 of Regulation (EC) No. 883/2004. Back
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