European citizen can from now on move jobs and country without losing work pension benefits
Workers switching jobs or countries will no longer have to worry about substantial loss of work pension benefits under the 'portability of pensions' Directive, proposed by the European Commission today. At present, changing job or country can mean losing occupational pension benefits in some Member States. But today's proposal would mean avoiding major losses and in many cases allowing benefits to transfer with the worker across sectors and countries in the EU. The Directive will help the growing numbers of EU workers who are switching jobs. In the EU15, one worker in three changes jobs every five years and 9% employees change employer each year.
The Directive will support the Commission's 'Jobs and Growth' strategy by making it easier for workers to move jobs and countries. As worker flexibility increases, so do the opportunities to fit the right skills in the right parts of the labour market across the EU. The Directive comes at a time of increased focus on supplementary pensions in the EU, with many countries introducing reforms in anticipation of the effects of ageing populations.