2010 - Modernised EU Social Security Coordination and Applicable Legislation

DG Employment, Social Affairs and

Equal Opportunities

Modernised EU Social Security Coordination and

Applicable Legislation

TRESS Seminar

the Netherlands-Belgium

11 June 2010

Silvia Kersemakers

Overview

I Key elements of the new system of social security coordination

II What about the old Regulations?

III Recent developments

IV Electronic data exchange (EESSI) – how will it work?

V Key rules on unemployment benefits

VI Key rules on family benefits

VII Information Sources on the Modernised Rules

Source: European Commission, DG Employment, Social Affairs and Equal Opportunities 44

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EC Reg 1408/71

Implementing Reg 574/72

Consolid Reg

Reg 883/04

Implementing Reg

Regulations 3 & 4

Over 50 years of Social Security Coordination

19591959 19721972 19971997 20102010

Two new Regulations

• Basic Regulation (883/2004)• Implementing Regulation (987/2009, hereinafter: IR)

• Both Regulations have equal value:– Cannot apply one without the other

– Implementing Regulation does not only contain implementing rules (e.g. Provision on child raising periods)

DG Employment, Social Affairs and Equal Opportunities 5

Key Themes of the Modernised Regulations

• Updating so rules correspond with current social practices• Simplification (e.g. Personal scope – Article 2 BR)• Improved protection of rights (eg. – improved information

and assistance to citizens– Articles 2 & 3(1) IR )• Clarification – incorporation of ECJ case-law in a range of

areas (e.g. Article 5 BR – Assimilation of Facts)• Strengthened and Streamlined institutional procedures

(e.g. electronic data exchange; administrative cooperation)

Overview








Transitional provisions (Article 87(8) BR)

• Legislation determined under 1408/71 continues to apply– if as a result of application of 883/2004 person would

become subject to different legislation– as long as relevant situation remains unchanged – For a maximum period of 10 years

• Person can request to become subject to the legislation applicable under 883.


Continued use of the old Regulations 1408/72 and 574/72

• Situations concerning EEA countries and Switzerland, including continued use of E-forms

• third country nationals – Regulation 859/2003 remains in force until political agreement in

EP and Council is reached on the Commission’s proposal for a new Regulation that extends the application of Regulation 883/2004 and 987/2009 to this category (in as far as the person concerned is not already directly covered by the new Regulations)


Overview








Administrative Commission

• 14 new AC Decisions and 3 recommendations adopted

OJ C 106, 24 April 2010, p. 1

• Adoption of new Posting guide (part I)

• Adoption of Portable Documents

• Structured Electronic Documents (SEDs)

• Miscellaneous Amendments 2010


12

Decisions and Recommendations of the Administrative CommissionA + Number Applicable Legislation

H + Number Horizontal, concerning general issues and rules of procedure, and also Financial provisions

E + Number Electronic Data Exchange

F + Number Family Benefits

S + Number Sickness Benefits

U + Number Unemployment Benefit

P + Number Pensions

Portable Documents

Portable document

Equivalent E form Explanation

A1 E 101 and E102 Certificate for appl. legislation

S1 E 106, E 109, E 120 and E 121 Registration for health care cover

S2 E 112 Entitlement to scheduled care

S3 - Medical treatment for former cross-border worker in former country of work (new or continued treatment)

DA1 E 123 Entitlement to health care cover under accident insurance

U1 E 301 Certification of insurance periods for entitlement to UB

U2 E 303 Retention of UB entitlement

U3 - Change of circumstances

P1 E211 Summary note on pension decisions


Source: European Commission, DG Employment, Social Affairs and Equal Opportunities 14

A document for individuals

Portable documents

Paper SED - example


Overview


II What about the old Regulations now?






EESSI (Electronic Exchange of Social Security Information)

• EESSI is a core element in the new Regulations:

– Enables institutions to exchange information electronically

under a common secure network

– Gives effect to the principle of enhanced cooperation between the Member States

EESSI – Legal basis in Regulations

• Article 78 and 88 Reg 883/2004

• Article 4(2) Reg 987/2009

• Article 95 Reg 987/2009– Transitional period of two years for implementation of EESSI

– Start: 1 May 2010


Decision E1

Practical arrangements for the transitional period for electronic data exchange

•Good cooperation, pragmatism and flexibility•E-forms, where electronically produced, may still be used•Institutions shall accept relevant information on any document issued by other institutions

20DG Employment, Social Affairs and Equal Opportunities 20

EESSI Implementation: How will it work?

MAYMAY20102010

DEC.DEC.20102010 20112011

MAYMAY20122012

EESSI FULLY OP

PAPER PAPER E-FORME-FORM PAPER PAPER SED'SSED'S ________ ________ ________ ……..…... ……….....

NATIONAL NATIONAL APPL. AS APPL. AS E-FORMSE-FORMS

__ ________ ________ ________ ……….....

FINAL FINAL SED'SSED'S ………….. ………….. ………….. ________ ________

SED = Structured Electronic DocumentsSED = Structured Electronic Documents

Overview








Unemployment benefits (UB) - Main elements (Art. 61-64 Reg 883/2004)

• Aggregation of periods of insurance/employment (Article 61)

• Calculation of unemployment benefits (Article 62)

• Limitation of waiving of residence rules (Article 63)

• Export of unemployment benefits (Article 64)

• Cross-border workers’ entitlement (Article 65)


Principle of Aggregation (article 61)

• applies also to self-employed persons

• insurance record will be exchanged via EESSI – using SEDs identified by the Ad Hoc Group

• possibility for claimant to ask for a document certifying his insurance record with portable Document U1 (former E301) (Article 54 of IR)


Calculation of UB (Article 62)

• Amount based on salary or income received during last activity in MS providing the benefit (same as under 1408/71)

• However: for all persons residing in a MS other than competent state: calculation based on actual wages received by frontier worker in the state of employment

(incorporation of case law – Case 67/79 – Fellinger)

• method of calculation for self-employed persons to be decided by AC


Export of UB (article 64)

• UB directly paid by competent institution – no reimbursements– 1408/71: UB paid by institition of MS where persons seeks work,

reimbursement by competent institiuion

• Maximum period 3 months, but may be extended to 6 months

• May be used several times as long as overall maximum period is respected – Reg1408/71 : article 69 can only invoked once between two periods of

unemployment

• Former E303 replaced by portable document U2 (retention of UB)• New portable document for notification of changes in circumstances (U3)


Example – export of UB

competent MS issues document on export

jobseeker registers with employment services and looks for job

on request – monthly follow up

direct payments of benefits by MS A

Simplification: no need for reimbursements!

Enhanced cooperation between the institutions – follow up of the jobseeker‘s situation on monthly basis (on request).

intention to look for job in MS B

Frontier workers (Article 65)

• Frontier workers receive UB in state of residence

• Option for frontier workers to register – as a supplementary step – in State of employment

• job-seeking activities have priority in State of residence

• State of residence has to calculate the benefits based on wage/salary received in the State of employment (applies to both categories of cross-border workers)


Non-frontier workers (Article 65)

• Non-frontier worker receives UB in State of employment if he/she decides to stay there

• If non-frontier worker ultimately decides to move back to the state of residence, he shall firstly receive UB in State of former employment under Article 64 – receipt of UB in State of residence suspended (Article 65(5)(b)


Cross-border workers – reimbursement between states

• New system of reimbursements between the institutions of MS of residence and employment

• Reimbursement by State of employment for first 3 or 5 months

• Details of reimbursement laid down in Article 70 IR

• Reimbursement methods evaluated by Administrative Commission no later than 5 years after coming into force


Open questions on new rules on UB

• Miethe judgment• Calculation of benefits for cross-border self

employed persons• Extension of exportation period

...


Overview








Family benefits – main elements

• Structure of Chapter 8 has improved and simplified– Only 4 articles in 883/2004 and 4 articles in 987/2009 – 1408/71 had 12 articles, divided in 2 chapters, 574/72 had 6

articles divided in 2 chapters

• No difference between “family benefits” and “family allowances” and thus

• No difference between treatment of workers and pensioners

• Clear priority rules in case of overlapping competences


Definition of family benefits (article 1(z) Reg 883/2004)

• All benefits in kind or cash intended to meet family expenses (incl. Child raising allowances, parental benefits, tax credits)

• Advances of maintenance payments and special childirth allowances are excluded


Entitlement to family benefits (Article 67 Reg 883/2004)

• Person is entitled to FB in accordance with legislation of competent state

• For pensionsers: entitlement to FB in MS that pays pension• Entitlement also covers family members, even if residing in

another MS (fiction of residence)– Definition of family member (article 1(i) Reg 883/2004)

– Community concept of “mainly dependent” which overrules national legislation


Priority rules in case of overlapping (article 68 Reg 883/2004)

Priority rules in case benefits are payable on different basis:• Rights on the basis of work• Rights on the basis of pension• Rights on the basis of residence

Priority rules in case benefits are payable on same basis: residence of children is decisive– Exception: if children reside in MS in which one of the parents works, then primary competent state is state that pays highest amount


Differential supplement (article 68 (2) Reg 883/2004))

• If amounts in secondary MS are higher than in MS that is designated by priority: payment of differential supplement by the secondary competent MS for the sum exceeding the amount.

• Calculation method: comparison by child or by family?


Priority rules

A B150€

100€

working

non-activeworking

State A is primarily competent and pays family benefits – State B does not pay as the amount is lower than in State A.

State B is primarily competent and pays family benefits – State A provides top up of 50€ as the amount is higher than in State B.

Caclulation of the supplement

Family benefits in MS A

Family benefits in MS B

Calculation per child -MS A primarily responsible

Calculation per family -MS A primarily responsible


Differential supplement MS B


Differential supplement MS B

Child 1 0 110 0 110 0

Child 2 90 30 90 0 90 50

Total: 90 140 200 140

Calculation of the supplement

Procedures – General rules (Art 60 of IR)

• Application to be submitted to competent institution of primary state

• If entitled person does not exercise his/her right, other parent can do so

• Primary competent institution forwards without delay application to secondary competent institution if it “appears” that there is entitlement to differential supplement (art 60(2) IR)

• Competent institution informs person and secondary competent institution of its decision.


Procedures – some particularities (art 68(3) Reg 883/2004 and 60 of IR)

• If application for FB is submitted to secondary competent MS, application to be forwarded without delay to primary competent institution

• Relevant date for primary competent institution is that of application in secondary state

• Decision on application to be taken within 2 months, otherwise provisional decision by the secondary competent institution (art 60(3))

• Possibility to claim reimbursement of overpayment (art 60(5))


Overview








Information Sources on the new Regulations

• Updated website • Explanatory Notes to be found on new website• New Small Guide – available already in EN• Information campaign for citizens 2nd half 2010• EESSI newsletter• TRESS website

43

The new home page on Europa

44

Access to national information page

Explanatory Notes (on the modernised rules)

2010 Small Guide

EESSI newsletter


Link to new webpage:

http://ec.europa.eu/social-security-coordination


2010 - Modernised EU Social Security Coordination and Applicable Legislation

Documents

Transcript of 2010 - Modernised EU Social Security Coordination and Applicable Legislation