2010 - Regulations 883/2004 & 987/2009

DG Employment, Social Affairs and

Equal Opportunities

Modernised Social Security Coordination

Regulations883/2004 & 987/2009

trESS SeminarPoitiers, 22 June 2010

Key figures - Mobility

DG Employment, Social Affairs and Equal Opportunities 2

2.3% of European living and working in an other Member State

11.5 million

10% have lived and worked in another country3% lived in another country, but did not work there

65 million

17% envisages working abroad in the future 85 million

Learning mobility: 8% went to school in another country, 3% to university and 4%participated in training abroad

About 675 000 persons benefited from ESF supported activities with an explicit link to labour mobility

Increase intra EU mobility by 40% between 2001 and 2008

More than 50% of SE, NO, LU, AT, DE have friends from another countryAround 30% for BE, UK, PT, FR, IT, GR, NL

Key figures on coordination


1.6 millions over 65 years residing in an other MS

40 000 unemployed looking for a job in an other MS

780 000 cross-border commuters in the EU (year 2006/2007)Condensed in the area of Central-Western Europe

Significant increases of in-commuting streams have been observed between 2000 and 2007 in Switzerland (+59 000),

Luxembourg (+40 000), Austria (+34 000), Netherlands (+25 000)

187 million EHIC distributed in 2009


The coordination :bridging the diversity


European level National level

Coordination


_________

____________

_______

_________

____________

__

_________

___________

_________

____________

__________

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

• Regulation 883/2004 (the Basic Regulation) ('BR')

• The 987/2009 New Implementing Regulation ('IR')

• Both Regulations of equal value

• Cannot apply one without the other


Time Planning for implementing Regulations

Q1 Q2 Q3 Q4

2009Q1 Q2 Q3 Q4

2010Q1 Q2 Q3 Q4

2011Q1 Q2 Q3 Q4

2012

EESSI Transitional Period

New legal environment

New technical environment

Entry into application of the new Regulations

Preparatory period

Publication OJEESSI fully in place

Transition rule on applicable legislation – Art 87(8) of BR

Key Themes of the Modernised Regulations

• Updating • Simplification • Improved protection of rights • Clarification • Strengthened and Streamlined institutional

procedures

DG Employment, Social Affairs and Equal Opportunities 11EUROPEANCOMMISSION

Mobility implications for citizens - principles

Protected mobility

Aggregation of factsBetter information

DG Employment, Social Affairs and Equal Opportunities 12EUROPEANCOMMISSION

Implications for institutions

InsuranceInstitution

Cooperation

Active assistanceElectronic exchange

Better service

InsuranceInstitution

Personal scope – Extension to non active

EU

citizens

Non EU

All EU national who are covered under national

Law

1/3 country nationals

Moving within the EU

No transnational mobility

Reg 883/2004Reg 987/2009

Reg 859/2003Reg …/2010

Which matters are covered by the EU provisions on social security coordination?

Statutory schemes – opt-in possibility for certain contractual provisions (Agirc/Arco)

• Sickness benefits• Maternity and equivalent

paternity benefits• Accident at work• Occupational diseases• Invalidity benefits• Old age pensions

• Survivors’ benefits• Death grants• Unemployment benefits• Family benefits• Pre-retirement benefits


Enhanced Administrative Cooperation

Overall aim: to make citizens' rights more effective whilst at the same time facilitating institutional processes

• Art. 3(1) IR: mutual requirement on citizens and institutions to provide each other with information

• Art. 76 BR invigorated through new specific provisions• Art. 2(3) IR: requirement for institutions to re-route information• Art. 76 BR given practical effect through structured provisions

for compulsory dialogue (see Articles 5, 6, 16 and 60 IR)

Dialogue and conciliation procedures


6(3) IR: Dialogue and conciliation procedure

in the event of:• Doubts about the validity of a document or

the accuracy of the facts• Difference of views concerning the determination

of the applicable legislation • Difference of views about which institution should

provide the benefits in cash or in kind

Dialogue and conciliation mechanismsDecision N° A1 (12 June 2009)


Applicable legislation under Regulation 883/2004

Lex loci laboris for active personsResidence for non active persons

General principleArticle 11 of BR

PostingArticle 16 agreements

DerogationsArticles 12 and 16 of BR

In case of activities in 2 or more MS:MS of residence or

MS of registered office/business place

Conflicting rulesArticle 13 of BR

SeafarersContract staff of the EC

Special categoriesArticle 11(4) and 15 of BR

Activities in 2 or more MS as an employedPerson is subject to legislation of MS of:

• Residence if working for various employers

• Residence if working for 1 employer and pursues “Substantial activities” there (new rule)

• Establishment of employer if working for 1 employer and not pursuing substantial activities in MS of residence. If employer is established outside EU : MS of residence (new rule)

Activities in 2 or more MS as self-employedPerson is subject to legislation of MS of:

• Residence if pursuing “substantial part” there

• Centre of interest if he doesn’t pursue there “substantial part”

For determining ‘Centre of interest’, all aspects must be taken into account : place of business, habitual nature or duration of activities, number of services rendered


Chap 6: Unemployment – facilitate mobility


• Clarification of who is responsible for providing EHIC to persons not residing in competent State (Article 27 BR)

• Rights improved (members of family of frontier workers, retired frontier workers,rights of pensioners residing in another MS to get medical care in MS paying the pension)

Chap 1 : Sickness – key innovations


% of EHIC holder on 31/12/2009 over resident population on 1.1.2009

0% 20% 40% 60% 80% 100%

RomaniaGreece

BulgariaPolandLatviaSpain

CyprusHungary

LithuaniaFrance

EstoniaFinland

PortugalIceland

DenmarkNetherlands

BelgiumSloveniaNorway

SlovakiaMalta

IrelandSweden

ALLGermany

UKSwitzerlandCzech Rep

LuxembourgAustria

ItalyLiech.


• Importance of summary pension note: new basis for a possible review request from the claimant in relation to interaction between decisions notified therein (Article 48 IR)

• 'Investigating Institution' renamed 'Contact Institution' and given more proactive role (Article 47 IR)

Chap 4 & 5 : Pensions – key innovations

P1


• Clearer process for establishing order of priority for paying family benefits (Article 68 BR)

(1) rights available on basis of work, (2) on basis of pensions and (3) on basis of residence

• Distinction between 'family benefits' and 'family allowances' removed

• Same rules for pensioners and employed persons

• If amounts in other MS are higher than MS designated by priority: differential supplement

Chap 8 : Family benefits – key innovations


Ongoing work

The Administrative Commission


Interpretation and guidanceDecisions – Recommendations – guiding tools

Exchange of best practices Facilitate the uniform application of Community lawFoster and develop cooperation between MS

Increase efficiencyEncourage the use of new technologies. Adopt common structural rules for data processing services ... and on the use of standards ...

Conciliation


Work organisation

Decision Making

bodyAdministrative Commission

Task Force

Ad Hoc groupsPrepare documents and reports

Technical Commission

Audit BoardPrepare and coordinate work

Approve average costs and accounts

Support CASSTM on technical

aspects

Advisory Committee

2929

Recent Developments in the Administrative Commission

• AC Decisions and Recommendations• Portable Documents• Structured Electronic Documents (SEDs)• Miscellaneous Amendments 2010

Decisions and Recommendations of the Administrative Commission

A + 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

EESSI (Electronic Exchange of Social Security Information)

EESSI is a core element in the new Regulations on social security coordination (Reg. 883/2004 and 987/2009)

– Enables institutions to exchange information electronically under a common secure network

Article 78 of Regulation 883/2004 (data processing)Article 4(2) and 88(4) of Implementing Regulation 987/2009 (IR)

– Ultimate aim: Better secure the social security rights of the mobile citizen


Exchanges of information between institutions


EESSI

Nationalnetwork

National network

Nationalnetwork

Offer a secured routingUpdate of Directory of institutions

10,000 to 15,000 institutions to be connectedthrough access points

More than 10 millions messages per yearContent of messages fully protected

SED SED

EESSI European network

National level

Information adequate / citizen rights

Can be performed / automatic processing

Use national language

By domains of social protection

Access

Point

Planning Overview for EESSI

DIRECTORY OF INSTITUTIONS

EESSI SOFTWARE ARCHITECTURE

SEDs

NATIONAL ADAPTATION AND TRAINING

DEVELOPMENT & REVIEW


Public EESSI Directory Interfacehttp://ec.europa.eu/employment_social/social-security-directory/

SED (Structured electronic documents)


Planned activities on SEDs

• Finalisation of paper version of SEDs (translated forms)

• Finalisation of electronic version of SEDs

Identification of mandatory fields, length of fields etc

• Preparation of correlation tables and guidelines by subgroups

• Documents available on the official website



Sector Number of SEDs

Applicable Legislation 7

Pensions 103

Sickness 31

Unemployment 28

Accidents at Work 63

Family 27

Recovery 13

Horizontal 15


Portable Documents

• Documents given to the customer to enable a right to be asserted, or confirm a status, or provide information

• Presently this function served by the E – Forms

• 9 new Portable Documents have been designed


Sector Portable Doc(s)

Legislation Applicable A1

Sickness S1, S2, S3

Accidents at Work DA1

Unemployment U1, U2, U3

Pensions P1

Source: European Commission, DG Employment, Social Affairs and Equal Opportunities 43

A document for individuals

– indicating which legislation applies

in their case – will be needed:

Portable documents


Q1 Q2 Q3 Q4

2009Q1 Q2 Q3 Q4

2010Q1 Q2 Q3 Q4

2011Q1 Q2 Q3 Q4

2012

National adaptations and connexion

First European architecture – Version 1

New technical developments

Training and helpdesk activities

Tests and adaptations Version 1+

Planning for EESSI


Transitional ESSII PeriodAdministrative Commission Decision E1(includes)……

• Flexibility, cooperation and pragmatism

• Continued use of the E-forms

• Accept any valid document between institutions

• Phased adoption of EESSI


How to support the cooperation?

Tress Network and ReportsEuropean ReportsGlossaries & database

New financial tool to support information and cooperation between institutionsFrom January 2010Support to initiatives / cooperation between institutions (exchanges, conferences ...) & information on citizen’s rightsSubsidy up to 80% with transnational character

4747

Recent developments in the Council

• Proposal for a Regulation extending the provisions of Regulation 883/04 to nationals third country nationals

• Association Council Decisions

Social security – international dimension

Member States 1/3d countries

National bilateral agreements

Coordination of social security apply(Regulation 859/2003 currently updated)

MoroccoAlgeriaTunisiaIsrael

CroatiaFYROM

EEASwitz.

Association agreements – limited coordination

Application of full coordination rules

EU approach Turkey

San Marino

Serbia

Albania

Bosnia-Herz

4949

The Future

• International dimension of social security coordination

• Long-term care benefits

• Higlhy mobile workers & Follow-up Monti report

• Pensions (Green Paper)

• Miscellaneous amendments


Nice treaty Lisbon treaty

Article 42 EC for employed persons and the members of their families and survivors on the one hand

and Article 308 EC for the self-employed and students and the members of their families or survivors on the other hand.

Article 48 TFEU provides for a legal basis to coordinate not only for employed and self-employed persons (to be interpreted in a very wide sense), but also for their dependants. This means that also the members of the families and the survivors of "employed" and "self-employed persons" are covered.

Article 352 TFEU (corresponding to the current Article 308 EC).

Unanimity Qualified majority : employed and self-employed persons, the members of their families and retired persons

Unanimity : students and non-active persons

"break system": if a Member state is of the opinion that a Commission proposal would affect fundamental aspects of its social security system or would affect the financial balance of that system, it may request that the matter be referred to the European Council. The European Council has then to decide within four months either to refer back to the Council or to request the Commission to submit a new proposal; in that case the act originally proposed shall be deemed not to have been adopted.

New Website on Social Securityhttp://ec.europa.eu/social-security-coordination

Access to national information pages

Merci de votre attention

2010 - Regulations 883/2004 & 987/2009

Documents

Transcript of 2010 - Regulations 883/2004 & 987/2009