The European Commission has asked Germany and Belgium to bring their pensions practises into line with EU law or risk being taken to the EU’s Court of Justice.

In Germany’s case, the Commission has been alerted to a case of a Bulgarian man, now German national, who has lived in Germany for 50 years. The man has received a German old age pension since 1988.

However, Commission said the man has been informed that if he takes up residence in Bulgaria, the amount of his pension transferred to Bulgaria would be reduced by more than one third to less than €400.

The Commission said the agreement established between Bulgaria and Germany prior to Bulgaria joining the EU provides for the payment of a differential supplement.

“To calculate this supplement, a comparison is made between the work periods acquired in Bulgaria and in Germany and the theoretical amount which is based on a calculation as if all periods were acquired in the country of residence. According to Germany, if the citizen moves to Bulgaria, he loses this differential amount since Germany is no longer the state of residence,” the Commission said in a statement.

By way of a 'reasoned opinion' under EU infringement procedures the Commission has notified Germany it has two months to inform the Commission of measures it has taken to bring its legislation into line with EU law. Otherwise the Commission may decide to refer Germany to the EU's Court of Justice.

In a separate statement, the Commission has asked Belgium to end “complex procedures” for paying pensions to beneficiaries residing in other EU countries.

“By refusing to pay pensions directly to a bank account and using cross border payments, Belgian pensions beneficiaries in 19 EU countries suffer delayed access to their pension, as well as disproportionate costs and other inconveniences. This contravenes the EU right to move freely to and receive their pension in another EU country,” the Commission said.

Belgium has two months to inform Commission of measures it has taken to bring its legislation into line with EU law, or the Commission may decide to refer the country to the EU's Court of Justice.

Today’s announcement follows action in February, in which the Commission announced it had decided to take Spain and Belgium to the Court of Justice.

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