The European Commission today proposed legislation that would allow workers to change jobs within 25 member states without losing key benefits linked to employer-sponsored pension plans, according to a news release.
"At the moment, if you work somewhere for six years and you leave to work somewhere else, your pension is worth less than a person who works at the same place for six years and continues with the same company until retirement," EC spokeswoman Katharina von Schnurbein said. "This is what we want to avoid; we want portability without the loss of benefits."
The initiatives, scheduled to take effect July 1, 2008, cover mandatory employer-provided pension plans in countries such as the Netherlands, Germany and Austria among others. The new rules require approval by the European Parliament.