2011 - old-age pensions

DG Employment, Social Affairs and Inclusion

Social Security Coordination

Old-age pensions Old-age pensions

Nadia LoddoOporto, 20 May 2011

2

Key principlesKey principles

Full exportability (including adjustments, increases and supplementary allowances)

Aggregation of periods

Fair cost-sharing – pro rata payment mechanism

Assimilation of facts

3

Legal provisionsLegal provisions

• Regulation 883/2004Regulation 883/2004– Invalidity: Title III, chapter 4– Old-age and survivors: Title III, chapter 5– Article 5 (aggregation of periods)– Article 6 (assimilation of facts)

• Regulation 987/2009 (Implementing Regulation)Regulation 987/2009 (Implementing Regulation)– Title II, chapter IV: Art. 43-53 – Art. 72 (2): offsetting of benefits received unduly in respect of pensions – Art. 94: transitional provisions relating to pensions

• Decisions / Recommendations of the Administrative CommissionDecisions / Recommendations of the Administrative Commission– Decision P1 on the interpretation of Articles 50 (4), 58 and 87(5) of R.

883/2004– Recommendation P1 (Gottardo judgment)– new Decision H6 (aggregation of periods)

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ProcedureProcedure Articles 45-49 IR

- Art. 45 IR: Claim for benefits

- Art. 46 IR: Certificates and information to be submitted with the claim by the claimant

- Art. 47 IR: Investigation of claims by the institutions concerned

- Art. 48 IR: Notification of decisions to the claimant and right to review

5

A

Contact Institution Contact Institution Article 47 IR

- Investigates the claim for benefits- Promotes co-operation among institutions- Supplies the claimant with information

ContactInstitution

B

CA: Member State of residence B & C: Other Member States

6

A ContactInstitution

INFO

B

C

Contact Institution Contact Institution Article 47 IR

- Investigates the claim for benefits- Promotes co-operation among institutions- Supplies the claimant with information

A: Member State of residence B & C: Other Member States

7

A ContactInstitution

B

C

? !

A: Member State of residence B & C: Other Member States

- Investigates the claim for benefits- Promotes co-operation among institutions- Supplies the claimant with information

Contact Institution Contact Institution Article 47 IR

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Summary note (PD P1)Summary note (PD P1)Article 48 (2) IR

• Summary of pension decisions: overview of the decisions taken by all Member States concerned

• If the claimant’s rights are adversely affected by the interaction of decisions by two or more institutions: right to review a pension decision

9

A

Summary note (PD P1)Summary note (PD P1) – Right to review a pension decision

ContactInstitution

Summary Note

10

A

Summary note (PD P1)Summary note (PD P1) – Right to review a pension decision

New possibilityfor review

ContactInstitution

The time limit for the review is laid down in national law

The time limit begins on the date of receipt of the summary of decisions

The result of the review must be sent to the claimant in writing

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Establishing a pensionEstablishing a pension

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3

4

5

67

8

9

0

+ %

=

x

12

The two-step calculationThe two-step calculation

A

B

C

10 years (qualifying period 10 years)

10 years (qualifying period 15 years)

20 years (qualifying period 15 years)

MS B will aggregate periods acquired in other Member States

Each State calculates theoretical theoretical amountamount based on 40 year career

MS A – ¼ of theoretical amount

MS B - ¼ of theoretical amount

MS C – ½ of theoretical amount

MS B will aggregate periods acquired in other Member States

Each State calculates theoretical theoretical amountamount based on 40 year career

MS A – ¼ of theoretical amount

MS B - ¼ of theoretical amount

MS C – ½ of theoretical amount

« Independant benefits » first, then « pro rata benefits » (exceptions in Annex VIII 883/2004). The person will be granted the higher of each of these benefits.

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Transitional provisionsTransitional provisionsArticle 87 BR, Article 94 IR

• No retroactivityNo retroactivity (no rights acquired based on new Regulations prior to 1.5.2010)

• However, periods of insurance prior to this date are taken into account

• Claims submitted under the old rules, but decided after Claims submitted under the old rules, but decided after 1.5.20101.5.2010 – Article 94 (both Regulations 1408/71 and 883/2004 relevant for the calculation)

• A person may ask for a recalculation of pensionsrecalculation of pensions, which were provided under the old rules (may not lead to a reduction)

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Child raising periodsChild raising periodsArt. 44 IR

- Art. 44 (2 and 3) IR determine the Member State responsible for taking into account of child raising periods

Berlin Rome

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Other information sourcesOther information sources

DG EMPL website on coordinationDG EMPL website on coordination

http://ec.europa.eu/social/main.jsp?catId=849&langId=en

trESS websitetrESS website – Think Tank reports (healthcare for pensioners; assimilation of facts)

http://www.tress-network.org/TRESSNEW/#