The European Union and its Member States must act to ensure that pension schemes can sustainably deliver an adequate income to the EU's growing number of retired people, despite the economic crisis. This is one of the main points which focused a resolution voted within the Parliament's Employment Committee which also calls for pension portability to be addressed, as well as the inequalities faced by women and older workers.

Given that responsibility for pensions lies with Member States, which are re-evaluating or reforming their schemes in the light of the current economic situation and the ageing of their populations, MEPs urge EU countries to maintain stable, reliable and sustainable pension systems, as well as adequate retirement allowance levels to combat poverty in old age. This has been recalled by members of the Parliament's Employment Committee, who called for proper consultations to be undertaken before making changes in pensions systems.

When in November 2010 ministers meeting at the Ecofin Council called for the need to take measures in order to ensure the sustainability of public pensions systems, member states underlined the long-term challenge of ageing populations for the sustainability and adequacy of pensions, challenge which has been aggravated by the current economic situation. Some member states, such as France by the end of 2010 or more recently Spain, have undergone reforms in their pensions systems. Within this debate, EU institutions are analysing how these reforms should take place, as it has been the case for example of the Economic and Social Committee which pointed out the risks of linking retirement age to life expectations of the need to engage in active employment policies as a way to tackle this problem.

Pensions portability and the need to address gender inequalities

Europeans usually 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.

MEPs note the wide gap between the statutory pension age (which is under review in some countries) 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.

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. The resolution, approved in committee with 40 votes in favour, 6 against and 1abstention, is to be put to a plenary vote in February.