EUROPE - Many Europeans may be losing out in pension schemes with long minimum contribution periods because more than 40% of the European workforce stay less than five years in the same job, two new studies have found.
They found, under some supplementary pension schemes, workers had to pay in for at least two years before they were entitled to receive any benefits.
The EC said the findings supported the work it was doing under the 'portability of pensions' directive, first proposed in October 2005.
The directive, in many cases, allows benefits to transfer with workers across sectors and countries in the EU, making it easier for workers to move jobs and countries.
Yet to be approved by the Council and the Parliament, the directive aims to make more flexible the conditions of acquisition of pension rights, the conditions of preservation of dormant pension rights and the transferability of acquired rights.
It also seeks to improve the information given to workers on how mobility may affect supplementary pension rights.
Leonardo Sforza, who led the study at Hewitt, said: "We were pleased to be selected by the EC to carry out this study which contributes to raising the awareness of policy makers and of other stakeholders on business practices in relation to occupational pension.
"We are also glad of the significant number and quality of participant organisations from different European countries. Key results show that a large majority of these organisation are already taking care of legitimate employees expectations in relation to the acquisition and preservation of occupational pension rights."
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