Select Committee on European Scrutiny First Report


15 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 baseArticles 42 and 308 EC; co-decision; unanimity
DepartmentWork and Pensions
Basis of considerationMinisters' letters of 12 September 2006, 25 April 2007, 17 November 2008 and 8 December 2008
Previous Committee ReportHC 34-xx (2005-06), chapter 11 (1 March 2006); and HC 34-xxv (2005-06), chapter 4 (19 April 2006)
To be discussed in Council15-16 December 2008
Committee's assessmentPolitically important
Committee's decisionCleared

Background

15.1 In 1971, the Council adopted a Regulation on the coordination of social security schemes so as to protect the rights of peoples moving within the Community.[50] 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.

15.2 In 2004 the Council adopted a new Regulation to simplify and modernise the Regulation of 1971.[51] It requires another Regulation to bring it into effect.

Previous scrutiny of the implementing Regulation

15.3 In March 2006, we considered the draft of the Regulation to implement the Regulation of 2004.[52] It lays down rules on, 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 resolution of disputes about the Member State in which a person is resident;
  • 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.

15.4 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.

15.5 In April 2006, we considered a Supplementary Explanatory Memorandum by the Minister.[53] He told us that there was one matter of substance (about the obligation to make pension provision for periods of child rearing) and some matters of lesser importance on which the Government would seek clarification or amendment.

15.6 We asked the Minister for progress reports on the negotiations and, meanwhile, kept the draft Regulation under scrutiny.

The Ministers' progress reports

15.7 Both the then Minister (Mr James Plaskitt) and the current Minister (Jonathan Shaw) have sent us full and helpful progress reports in September 2006, April 2007 and November and December of this year as the Council has worked its way through the draft Regulation, chapter by chapter.

15.8 For example, the Minister's letter of 25 April 2007 told us that the Government had succeeded in gaining agreement to amendments to the Article on periods of child rearing which would ensure that the provision properly reflects the case law of the European Court of Justice.

15.9 The Minister's letter of 17 November 2008 told us about the detailed amendments the Government had obtained at the Council's meeting in October. He enclosed with the letter a document by the Commission[54] which said which of the European Parliament's first reading amendments it could accept and which it could not. The Minister told us that the Government agreed with the Commission that most of the European Parliament's amendments were acceptable and would not significantly affect the substance of the draft Regulation.

15.10 The Minister encloses with his letter of 8 December a revised draft of the Regulation. It incorporates the amendments agreed during the Council's negotiations and the first reading amendments by the European Parliament which were acceptable. Subject to any detailed changes proposed by the Jurist Linguists, this revised text will be put to the Employment and Social Policy Council for agreement on 15-16 December. The Government is content with the revised text and wishes to take part in the agreement to it.

Conclusion

15.11 We are grateful to the Ministers and their officials for the admirably clear progress reports on the negotiations of this long and very technical document. It appears that the Government has secured its negotiating objectives. We have no further questions to put to the Minister and we are content to clear the document from scrutiny.





50   Regulation (EEC) No.1408/71: OJ No. L 149, 5.7.1971, p.2. Back

51   Regulation (EC) No. 883/2004: OJ No. L166, 30.4.2004, p.1. Back

52   See HC 34-xx (2005-06), chapter 11 (1 March 2006). Back

53   See HC 34-xxv (2005-06), chapter 4 (19 April 2006). Back

54   14414/08 (COM(08) 647). Back


 
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Prepared 18 December 2008