Pensions: EU White Paper on the future of pensions.

Today, the European Commission published the White Paper on the Future and Safety of Pensions in the European Union. Ria Oomen-Ruijten MEP, Rapporteur for the European Parliament on the Green Paper on pensions, said: "I am very happy that the Commission has adopted many of my recommendations from last year."

Demographic changes and the ageing population have a huge impact in many Member States. This could lead to enormous expenditure which will have consequences for the Stability and Growth Pact, for the stability of the Euro and employment. Also, the financial and economic crisis has seriously aggravated the underlying challenge of an ageing population. By demonstrating the interdependence of the various schemes and revealing weaknesses in some scheme designs, the crisis has acted as a wake-up call for all pensions: higher unemployment, lower growth, higher national debt levels and financial market volatility have made it harder for all systems to deliver on pension promises. This is why the Commission has come up with the White Paper.

Ria Oomen-Ruijten MEP continued: "The White Paper contains many good recommendations which address the need for people to work longer with the aim of achieving a better balance between time spent in work and time in retirement. The Commission calls on the social partners to develop ways of adapting work place and labour market practices to enable older workers to stay on the labour market. Moreover, the White Paper encourages Member States to design supplementary pension schemes."

The Commission will also come up with a proposal for the acquisition and preservation of supplementary pension rights within the European Union when an employee starts a job in another country. Ria Oomen-Ruijten added: "We must ensure that the pension which the employee has saved for will not be lost."

Moreover, the Commission will promote the development of pensions tracking services, allowing people to keep track of their pension entitlements which are built up in different countries.

Ria Oomen-Ruijten said: "The proposal on solvency requirements for pensions worries me though. The European Commission wants more guarantees. But some Member States have already lowered the grade of guarantee. More capital guarantee is difficult to give in a period of weak economic growth and pressure on the financial sector."

German pensions expert and Vice-Chairman of the Employment Committee of the European Parliament, Thomas Mann MEP, said: "I strictly oppose the application of SOLVENCY II or other similar regimes to supplementary pension schemes, if this endangers successfully operating occupational systems. The Commission is on a very risky track, if it wants to penalise these systems. Many MEPs, governments, Trade Union Confederations and Employer Associations have already made it clear that they will not accept any endangerment."

Ria Oomen-Ruijten concluded: "I am also glad that the Commission has proposed to investigate how it can prevent double taxation and tax evasion on cross-border transfers of occupational pension capital and life insurance capital."