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FOCUS - Osservatorio Brexit N. 1 - 21/06/2017

 The UK's financial liability for EU civil servants' pensions after Brexit: Legal basis and Jurisdiction

On 8 December 2017, the EU and the UK published a Joint Report on the progresses achieved during the so called “Phase 1” of negotiations under Article 50 TEU, on the UK's withdrawal from the EU (the “Joint Report”). The Joint Report addresses three main aspects of the UK’s “divorce” from the EU, which are considered among the most sensitive in the negotiations: (i) protecting the rights of Union citizens in the UK, and UK citizens in the Union; (ii) the framework for addressing the “unique” circumstances in Northern Ireland; and (iii) the financial settlement. This third element of the Joint Report, which provides the guidelines as to how to calculate the amount the UK will owe the EU for the financial commitments it has already undertaken as a Member State (the so called “Divorce Bill”), omits, however, to thoroughly regulate a very relevant share of the UK’s financial obligations: the pension rights of EU civil servants. Indeed, the Joint Report only includes in a footnote a recognition by the UK of its ongoing liability for such pension rights and that, due to their long-term nature, will be paid “as they become due”... (segue)

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