EU To Propose Law Making Pensions Portable
In order to free the movement of labor in Europe, the European Commission will propose Thursday a new law making it easier to transfer pension plans from one country to another, according to a document seen Wednesday by Dow Jones Newswires. Until now, the E.U. has only required governments to treat workers equally in giving out pensions, and workers often lose money by moving abroad. Under the new law, workers can choose to leave their pension in their original country or company ,or move to their new country or company's plan. They will have 18 months to decide. Governments must allow them to join the new scheme within a year. If a worker chooses to enter the new scheme, governments must ensure the worker's pension rights "are adjusted in order not to penalize the mobile worker," the document reads. The vested period of the new pension must be no longer than two years, the proposal states. The E.U. parliament and national governments still must approve the changes. In the document, the Commission argues the measure will increase labor mobility, a major weakness of the European economy.
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