Trevor Sargent (Dublin North, Green Party)
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Question 51: To ask the Minister for Social and Family Affairs if he will report on his Department's engagement and subsequent policy developments in the latest negotiations at the European Union level Social Questions Group. [43251/06]

Séamus Brennan (Dublin South, Fianna Fail)
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At present the European Union Social Questions Group are considering two related proposals dealing with the co-ordination of social security systems within the European Union and a proposal for a Directive of the European Parliament and of the Council on improving the portability of supplementary pension rights. These proposals have been discussed over the past 18 months under the UK, Austrian and Finnish Presidencies and officials from my Department have attended the meetings of the Social Questions Working Group dealing with these matters.

The rules on the coordination of social security systems are currently contained in Regulation (EEC) 1408/71 and its implementing Regulation (EEC) 574/72. In 1998 the Commission presented a proposal to modernise and simplify the provisions of Regulation 1408/71. Following negotiation, Regulation (EC) No. 883/2004 was adopted on 29 April 2004. This was the first step in a process aimed at modernizing and simplifying the EU rules on the co-ordination of social security rights of migrant workers. This process must be completed with the adoption of an implementing regulation to replace Regulation (EEC) 574/72 and of a regulation that will form the content of Annex XI to Regulation (EC) 883/04. The new co-ordination rules contained in Regulation 883/04 cannot be applied until both these proposals have been adopted by both the EU Council of Ministers and the European Parliament.

The first proposal sets out these implementing provisions, the aim of which is to define the procedures needed to implement the principles of Regulation 883/2004. The second proposal includes provisions regarding specific aspects of individual Member States' legislation that will form the content of Annex XI to Regulation (EC) 883/2004.

With regard to the proposal for a Directive on the Portability of Supplementary Pension Rights, the Council at its recent meeting, noted the contents of a Progress Report from the Finnish presidency and held a policy debate on the proposals on improving the portability of supplementary pension rights. The draft directive attempts to address a number of issues which, in the context of pension provision, present obstacles to the free movement of workers. These issues relate to the acquisition, preservation and transfer of pension rights in respect of workers who change employment both within and across member States.

Despite extensive discussions at the Social Questions Group, it had not been possible to reach agreement on the proposals in the draft directive, especially those in relation to the transfer of pension rights. It is expected that the Council will continue the examination of these proposals.