According to a resolution adopted by the European Parliament on 16 February, within the general context of economic crisis and progressive population ageing Europe is currently going through, it is crucial that Member States ensure that pension schemes can sustainably deliver an adequate income to the EU's growing number of retired people. The text approved in Plenary session also addresses issues such as pension's portability, as well as inequalities faced by women and older workers.

The resolution on pension's systems sustainability approved in Parliamentary Commission by the beginning of February, was approved in Plenary session by 535 votes to 85 with 57 abstentions. As highlighted by Dutch EP rapporteur Ria Oomen-Ruijten during the debate, “although Member States play the lead role, there are aspects on pensions systems where coordination at European level is important. The ageing of the population has a big impact because not all Member States have put money aside for their pensions. This could lead to enormous expenses which will have consequences for the Stability and Growth Pact. The supervising authority should monitor pension systems and some Member States must be encouraged to provide for a safe and adequate pension system”.

The effects of economic crisis have prompted reforms on Member states' pensions systems which are already in force, or ready to be endorsed. These trends on pensions reforms has been analysed by EU institutions and organizations, which have warned about certain dangers that some reforms could entail. In this line, MEPs have called on EU countries to maintain stable, reliable and sustainable pension systems as well as adequate retirement allowance levels to combat poverty in old age.

One crucial element highlighted by the Parliament refers to the need to take into account the wide gap between the statutory pension age and the actual age at which many stop work. Older workers would benefit from better adapted workplaces and working conditions, as well as improved protection against dismissal, they say.

Pensions portability and gender equality within the system

The text underlines that Europeans now use to work for several employers during their careers, and many spend periods working in different EU countries. MEPs want the EU and Member States to remove obstacles to mobility and address pension transferability difficulties within and between EU Member States. For example, they say retirement plans should not require long contribution periods to be valid.

Furthermore, MEPs also recommend to put greater emphasis on gender equality. Inequalities in the labour market are translating into lower pensions for women, who face a high risk of poverty in old age. On average, women are paid less than men for equivalent work. They are also more likely to work part-time and take longer career breaks to care for family. MEPs urge the Commission and Member States to address inequalities and take account of these factors in retirement benefits.