Regulations, 2012

L. N. 17 of 2012

SOCIAL SECURITY ACT

(CAP. 318)

Transfer of Pensions paid under the Social Security Act

Regulations, 2012

IN exercise of the powers conferred by article 134 of the

Social Security Act, the Minister for Justice, Dialogue and the

Family, has made the following regulations:-

(1) The title of these regulations is the Transfer of

Pensions paid under the Social Security Act Regulations, 2012.

(2) These regulations provide for the administrative

procedure necessary to give effect to Council Regulation (EEC,

Euratom, ECSC) No. 259/68, laying down staff regulations of

officials and the conditions of employment of other servants of the

European Union.

(3) The purpose of these regulations is to enable

persons employed as officials and servants of Union institutions

and bodies to apply to have their benefit rights, accrued and valued

in terms of Part II of the Act, transferred from their national

insurance account or fund to the EU scheme.

(1) For the purposes of these regulations, unless the

context requires otherwise

“the Act” means the Social Security Act;

“active employment” means a person who is performing

the duties pertaining to the post to which he has been

appointed or temporarily assigned within the meaning of

Article 36 of the Council Regulation;

“the Director” shall have the same meaning assigned to

it by article 2 of the Act;

“the Council Regulation” means Council Regulation

(EEC, Euratom, ECSC) No. 259/68 laying down staff

regulations of officials and the conditions of employment of

other servants of the European Union;

“the EU scheme” means the pension scheme provided

for officials of EU institutions in accordance with Articles 77

to 84 of, and Annex VIII to, the Council Regulation;

“the transferred amount” means the amount in respect

of the cash equivalent of the transferor’s transferable rights

which has been transferred into the EU scheme;

“quotation date” means the date

(i) by reference to which the cash equivalent

value of transferable rights is calculated; and

(ii) which falls within a period of three months

beginning with the date on which the transfer application

is received by the Director;

“leave on personal grounds” means leave granted within

the meaning of Article 40 of the Council Regulation;

“relevant pension” means any contributory pension

under article 26 of the Act;

“statement of entitlement” means a written statement

(i) of the amount of the cash equivalent at the

quotation date of the transferable rights which have

accrued to, or in respect of, the transferor; and

(ii) which contains details of the basis of how that

amount has been calculated;

“transfer application” has the meaning assigned to it by

regulation 4(1) of these regulations;

“transferor” means the person who has applied to

the Director to transfer his transferable rights into the EU

scheme.

(2) Subject to the provisions of sub-regulation (1)

hereof, other terms used in these regulations shall, unless the

context otherwise requires, have the meaning assigned to them by

(3) Any references in these regulations to an Article

of, or an Annex to, the Council Regulation are to be construed as

references to that Article or Annex as amended from time to time.

For the purposes of these regulations, ‘transferable rights’ Transferable rights.

shall mean any rights to relevant pensions, which, at the quotation

date, have accrued to, or in respect of, a person by virtue of the

following

(a) the payment by that person of Class 1 or 2

contributions under the Act; and

(b) that person having been credited with such

contributions in terms of article 16 of the Act.

(1) Except where sub-regulation (2) hereof applies, a Transfer application to

person seeking to transfer his transferable rights to the EU scheme the EU scheme.

shall make an application to the Director.

(2) The transferor shall be deemed to have made an

application under sub-regulation (1) hereof where the Director

receives a copy of the transferor’s application to become a member

of the EU scheme.

(3) An application under sub-regulation (1) hereof

shall be in such form as the Director may from time to time

approve.

(1) The Director shall, subject to sub-regulation (4)

hereof, provide the transferor with a statement of entitlement

before the end of the period of thirty days beginning with the

quotation date.

(2) A statement of entitlement shall remain valid for a

period of ninety days beginning with the day on which it is issued

by the Director.

(3) Where the transferor is not satisfied as to the

accuracy of any of the information contained in the statement of

entitlement, he shall notify the Director accordingly within thirty

days of receiving it.

(4) The Director need not provide a statement of

entitlement to a transferor if he has provided a statement of

entitlement to that transferor in the previous twelve months.

(1) The cash equivalent of the transferor’s transferable

rights is to be calculated and verified in such manner as may be

approved by, or on behalf of, the Director following actuarial

(2) Where, at the quotation date, the transferor is in

receipt of one or more relevant pensions, the cash equivalent of any

amounts paid in respect of that benefit or those benefits shall be

deducted from the total cash equivalent of his transferable rights.

A transfer of a transferor’s transferable rights to the EU

scheme may only take place where the Director has been notified

in writing, before the expiry of the period referred to in regulation

5(2) of these regulations, that the transferor wishes the transfer to

take place.

(1) Sub-regulations (2) and (3) hereof apply where the

Director receives a notice under regulation 7 of these regulations.

(2) Where the Director is satisfied that the cash

equivalent of the transferor’s transferable rights is correct, he shall

transfer into the EU scheme

(a)

an amount in respect of that cash equivalent; and

(b) interest accruing on that amount by virtue of

regulation 11 of these regulations, before the end of the period

of nine months beginning with the quotation date.

(3) Where the Director is not satisfied as to

the accuracy of the cash equivalent of the transferor’s

transferable rights, he shall notify the transferor

accordingly and issue a revised statement of entitlement.

(4) Where the Director receives a notice from

a transferor indicating that he wishes to complete a

transfer of his transferable rights to the EU scheme,

which notice is received after the expiry of the period

referred to in regulation 5(2) of these regulations, he

shall notify the transferor that his application is invalid

and that a new application is to be made and a new

statement of entitlement obtained in accordance with the

provisions of these regulations.

(1) This regulation applies where the cash equivalent Effect of making

of the transferor’s transferable rights has been transferred into the transfer payment.

EU scheme according to official guidelines published from time to

time

(2) Nothing in the Act or in any regulations made

thereunder shall be construed in such a way so as to produce

the following effect

(a) the entitlement of the transferor to payment of a

relevant pension based on contributions paid or credited

during any periods before the day on which the transfer takes

place; or

(b) the crediting of a transferor with any earnings or

contributions which accrue from his transferable rights.

(3) Where the transferor returns to Malta at any time

after the day on which the transfer takes place and is gainfully

occupied or self-employed in terms of the Act, he shall not be

entitled to credited contributions in terms of article 16(1) of the Act

and any other credited contributions awarded under the said article

which have been transferred out of this scheme.

(1) Sub-regulation (2) hereof applies where it

subsequently transpires that the cash equivalent of the transferor’s

transferable rights was greater than the transferred amount.

(2) The Director shall transfer into the EU scheme an

amount equal to the sum of the following

(a) the difference between the cash equivalent of the

transferor’s transferable rights and the transferred amount;

and

(b) the difference between the interest accrued under

regulation 11 of these regulations on the cash equivalent of

the transferor’s transferable rights and the interest accrued

under that regulation on the transferred amount.

(1) Interest shall accrue on the cash equivalent of the

transferor’s transferable rights in respect of the period beginning

on the quotation date and ending on the day on which an amount in

respect of that cash equivalent is transferred by virtue of regulation

8(2) of these regulations.

(2) Interest shall accrue under sub-regulation (1)

hereof at an annual rate to be determined by the Director based on

actuarial analysis.

The periods specified in regulations 5, 6 and 8 of these

regulations may be extended by the Director if he considers it

reasonable to do so in any particular case.

Payments of cash equivalents of transferable rights

made by the Director by virtue of these Regulations shall be paid

out of the Consolidated Fund.

€0.54