The Economic and Social Impact of Coordination

Published date01 March 2009
Date01 March 2009
Subject MatterArticle
European Jour nal of Social Sec urity, Volume 11 (2009), Nos. 1–2 133
A R*
In this article the economic and social impacts of the coordination of pensions
and pension policy in the EU are analysed.  ree di erent aspects are discussed:
the coordination of the individual social security rights of migrant workers; the
coordination of national social protection systems; and the coordination of economic
and employment policies as far as they a ect social security. With respect to the
coordination of the individual social security rights of migrant workers, it is argued
that this is a prerequisite for the free movement of workers in the EU.  e article
discusses the impacts of this coordination, such as impacts on pension payments
arising from EC Regulation 883/2004 (formerly EC Regulation 1408/71), and the
provision of international counselling events. It is noted that the Regulation covers
not only old age pensions but also pen sions in cases of reduced earning capacity and
bene ts for rehabilitation.  e second area of coordination is implemented through
the Open Method of Coordination (OMC). It is argued that, on the one hand, the
OMC provides support to national governme nts to deal with the challenges of social
security systems. On the other hand, the OMC also directly in uences national
social security policies, even though they are actually the responsibility of national
authorities. Implications for national pension policy can also be found in the third
area of coordination. Both Broad Economic Policy Guidelines and Employment
Guidelines are used, which set targets which are rele vant for pension policy, such as
placing limits on public expenditure and the p rolongation of working life. Finally it is
argued that in the growing  eld of second- and third- pillar pens ion systems there is
a need for further coordination.
Keywords: EC Regulation 883/2004 (1408/71); migrant workers; coordination of
social secur ity; pensions policy; Open Method of Coordination
* Dr Axel Reima nn is Director of the Deutsche Re ntenversicherung Bund (German Fede ral Pension
Insurance) in Berl in. E-mail: dr

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