Draft directive considered by European Parliament in June 2007. If approved, Member States to implement directive within two years of its being adopted

Amended version of draft directive issued in October 2007

European Council press release issued 5/6 December 2007 - required unanimity could not be obtained, the final unresolved issue being the vesting period

According to the draft directive:  

  • minimum requirements for the portability of supplementary occupational pension rights will be imposed across the EU so that workers do not lose out when moving jobs;
  • the minimum age for joining a pension scheme may be no higher than age 21 and the maximum waiting period for joining may not exceed one year;
  • vesting periods may not exceed one year for workers aged 25 or over, or five years if under 25;
  • early leavers without vested rights must receive refunds of contributions including (in DC schemes) investment returns;
  • there will not be a requirement to allow transfers out;
  • preserved benefits must receive fair treatment – eg by linking to price/earnings inflation, increases to pensions in payment or investment returns under the scheme;
  • schemes must give active members sufficient information to make a proper decision on how moving jobs will affect pension rights. Information to deferred members must be given on request. All information would be restricted to being given once per year.