In a statement released on 20 June 2013, the EC announced that the EU’s Council for Employment, Social Policy, Health and Consumer Affairs has reached an agreement on the Commission’s proposal for a directive to improve the portability of supplementary pension rights. This comes eight years after it was originally proposed in October 2005 and subsequently underwent years of amendment, due to disagreements among Council members over the transferability of accrued pension rights and appropriate vesting periods.

The Directive, as it has been agreed upon in Council, requires Member States to implement minimum requirements for the acquisition and preservation of pension rights for people who go to work in another Member State. It also encourages Member States to ensure equal treatment of workers exercising mobility.

Whilst Member States remain responsible for the conditions under which people change jobs within the same country, the Commission expects that Member States will apply the standards laid down by this Directive to internal mobility.

We await the European Parliament adopting the amended proposal and the Council adopting the Directive. After this, the UK would be required to implement the directive in national legislation within three years although if necessary, this could be extended by two years