22 January 2008

Commission studies on supplementary pension schemes

The Commission published two studies on the supplementary pension schemes and mobility in Europe. "These new studies clearly demonstrate the need for an effective and proportionate directive to reduce obstacles to mobility without placing undue burdens on pension providers”, Commissioner Vladimír Špidla said.

The first study adds to the existing body of evidence highlighting the need for a reduction in obstacles to mobility found in supplementary pension schemes and for the first time gives a detailed analysis of common practise found in supplementary pension schemes in nine Member States. Key findings show that many pension schemes do not impose any vesting period although there are still 32% of Defined Benefit (DB) schemes requiring workers to contribute to a pension scheme for more than two years before they acquire a right to a pension in retirement. The study also shows that a quarter of DB schemes offer no revaluation of workers' dormant pension benefits when they move jobs. In effect these rights are frozen until retirement.

The second complementary study analyses data from a 2005 Eurobarometer survey on worker mobility and provides a picture of existing and projected job mobility. It shows that on average nearly 40 per cent of current workers change jobs within five years and are therefore potentially disadvantaged by the operation of long vesting periods found in supplementary pension schemes.

Press release

Commission Memo

First Study

Second Study

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