2010 - New Social Security Regulations 883/2004 & 987/2009

DG Employment, Social Affairs and

Equal Opportunities

Modernised Social Security Coordination

New Social Security Regulations883/2004 & 987/2009

Jörg TAGGER

trESS seminar: Vilnius 10/5/2010

2DG Employment, Social Affairs and Equal Opportunities 2

Overview

• Modernised Social Security Coordination • Key innovations in the individual sectors

• Recent and future developments

3DG Employment, Social Affairs and Equal Opportunities 3

What is Coordination? Organisation

Decision Making Administrative Commission Task Force

Ad Hoc groups

Prepare documents and reports

Technical Commission

Audit Board

Prepare and coordinate work

Approve average costs and accounts

Support AC on technical

aspects

Advisory Committee

Dialogue with social partners

44

________ _______ ________ _____

________ _______ ________

________ _______ _____

________ _

____________

__ _______ _

Reg 1408/71

Reg 574/72 (Implementing Reg.)

Consolid Reg

Reg 987/09 (Impl. Reg)

Reg 883/04

Regulations 3 & 4

Over 50 years of Social Security Coordination

19591959 19721972 19971997 20102010

5

Key Themes of the Modernised Regulations

• Updating • Simplification • Improved protection of rights

• Clarification

• Strengthened and Streamlined institutional procedures

6DG Employment, Social Affairs and Equal Opportunities 6

Examples: • Inclusion of paternity benefits• Explicit provision to take into account credits

for child-raising periods• New provisions on posting• New procedures for recovery• Improved and speedier procedures for reimbursement

of healthcare costs• Requirement for data to be exchanged electronically

Updating to reflect current practices

7

Enhanced Cooperation

"Clear and more effective cooperation between social security institutions is a key factor in allowing the persons covered by regulation (EC) 883/2004 to access their rights as quickly as possible and under optimum conditions"

[Preamble of the IR, para. 2]

8

Enhanced Cooperation

99

Enhanced Cooperation

10

Dialogue and conciliation mechanisms

DG Employment, Social Affairs and Equal Opportunities 10

11

+ 3 months+ 3 monthsWithin 3 monthsWithin 3 months

Dialogue and conciliation procedure

Doubt about the validity of a document/ correctness of supporting evidenceDoubt about the validity of a document/ correctness of supporting evidenceDifference of views between Member States about the determination of the legislation applicableDifference of views between Member States about the determination of the legislation applicable

2. Improved protection for individuals

12

Dialogue and conciliation procedure

+ 3 months+ 3 monthsWithin 3 monthsWithin 3 months

Agreement

2. Improved protection for individuals

13

+ 3 months+ 3 monthsWithin 3 monthsWithin 3 months

Dialogue and conciliation procedure

+ 3 months+ 3 monthsWithin 3 monthsWithin 3 months

No agreement

2. Improved protection for individuals

14

OPTIONALWithin 6 weeksWithin 6 weeks+ 3 months+ 3 monthsWithin 3 monthsWithin 3 months

Dialogue and conciliation procedure

Agreement

2. Improved protection for individuals

15

Conciliation Board

Within 6 weeksWithin 6 weeksWithin 6 weeksWithin 6 weeks+ 3 months+ 3 monthsWithin 3 monthsWithin 3 months

Dialogue and conciliation procedure

+ 3 months+ 3 monthsWithin 3 monthsWithin 3 months

No agreement

2. Improved protection for individuals

16

Conciliation Board

Within 6 weeksWithin 6 weeks+ 3 months+ 3 monthsWithin 3 monthsWithin 3 months

Dialogue and conciliation procedure

Agreement

OPTIONALWithin 6 monthsWithin 6 monthsWithin 6 weeksWithin 6 weeks+ 3 months+ 3 monthsWithin 3 monthsWithin 3 months

2. Improved protection for individuals

17DG Employment, Social Affairs and Equal Opportunities 17

Determination of Applicable Legislation - Key Innovations

• Article 11 BR

• Principle of “unicity” of applicable legislation strengthened – no exceptions as it is now under art 14c (Annex VII) and Art. 14f

of Reg 1408

• Strengthening of “lex loci laboris” principle• Residence for non-active persons

18

6(1) IR:

Divergence of views about the legislation applicable: person provisionally subject to one legislation identified with an order of priority

6(2) IR:

Divergence of views about which institution should provide the benefits: institution identified with an order of priority

Provisional application of legislation and provisional granting of benefits

Improved protection for individuals

19

New provisions on posting

Posting of employed persons (art. 12(1) BR)• Maximum of two years - no extension of period • Main conditions remain applicable:

– Definitions in article 14 Implementing Regulation– New Decision on posting adopted by Administrative Commission

on 12 June 2009– Revised posting guide

DG Employment, Social Affairs and Equal Opportunities 19

Determination of Applicable Legislation - Key Innovations

20

Activities in more MS:

- for the same employer :

Introduction of a new criterion in Article 13 BR

• The proportion of activity in the Member State of residence has to be substantial for the legislation of residence to apply

• Otherwise: legislation of MS of employer applies

- for more employers in different Member States:

• Legislation of MS of residence applies

21

B

Activities in 2 or more Member States for the same employer

ALegislation applicable = Member State BLegislation applicable = Member State B

3. Modernisation and clarification

22

B

Activities in 2 or more Member States for the same employer

AOnly if substantial part of activities in the Member State of residence

Legislation applicable = Member State ALegislation applicable = Member State A

3. Modernisation and clarification

23

C B

Activities in 2 or more Member States for 2 or more employers, with registered offices or plase of business in different Member States

AIf 2 or more employers and registered offices/place of business in different member states

= Member State of residence

Legislation applicable = Member State ALegislation applicable = Member State A

3. Modernisation and clarification

24

B

Activities in 2 or more Member Statesfor 2 or more employers, including in the Member State of residence

AIf 2 or more employers, Member State of residence

Legislation applicable = Member State ALegislation applicable = Member State A

3. Modernisation and clarification

25

Determination of legislation applicable

Transitional provisions

Article 87(7) BR

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

DG Employment, Social Affairs and Equal Opportunities 25

26

Key Innovations

Sickness and Maternity

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

• New procedures and rules for scheduled treatment (with prior authorisation)(Article 26 IR)

27

Key Innovations

Pensions

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

• 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)

• Specific provision as regards aggregation of child-raising periods (Article 44 IR)

28

Key Innovations

Unemployment

• Principle of aggregation applies also to self-employed persons (Article 61 BR)

• Direct payment of exported unemployment benefit to the person concerned without need for consequent reimbursement between institutions (Article 64 BR)

• MS may extend export of unemployment benefit from 3 to 6 months (Article 64(1)(c)

• Improved special regime for frontier workers

29

Key Innovations

Family Benefits

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

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

• Same rules for pensioners and

employed persons.

30

EESSI

Network

Electronic Exchange of Social Security Information

31

I

II

I

I

I

AP AP

I

EESSI

32DG Employment, Social Affairs and Equal Opportunities 32

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

33

SED

33

Structured

Electronic

Document

34

Public EESSI Directory Interface

35

EESSI newsletter

DG Employment, Social Affairs and Equal Opportunities 35

363636

Recent Developments in the Administrative Commission

• AC Decisions and Recommendations• Portable Documents

• Structured Electronic Documents (SEDs)

• Miscellaneous Amendments 2010

37

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

38Source: European Commission, DG Employment, Social Affairs and Equal

Opportunities 38

A document for individuals

Portable documents

393939

Recent developments in the Council

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

• Association Council Decisions

404040

The Future

• Communication on Highly Mobile Workers

• Communication on International dimension of social security coordination

• Long-term care benefits• Patient Mobility• Green Paper on Pensions

41

New Website on Social Security

42

Access to national information page

43

Other information sources

44DG Employment, Social Affairs and Equal Opportunities 44

Funding for Transnational Actions

Actions:

• Improving information and cooperation between the institutions of Member States, and/or

• Improving citizens’ knowledge on their rights

• Subsidy up to 80% Published on DG EMPL website• Publication again in 2011

45