DG Employment, Social Affairs and Equal Opportunities

1
Modernised Social Security Coordination

• Regulation 883/04 and its Implementing
  Regulation

Silvia Kersemakers Els Vertongen TRESS Den
Bosch, 30 June 2009
2
Overview

• Legislative Update
• Modernised Social Security Coordination
• Key innovations in specific areas
• The Future

3
Legislative Update

• Where are we today ?
• Regulation 883/2004 of 29th April 2004 on the
  coordination of social security schemes
• Regulation XXX the Implementing Regulation
• Regulation XXX to amend Regulation 883/04 on
  the coordination of social security systems and
  determine the content of its annexes
• Regulation XXX extending the provisions of
  Regulation 883/04 to nationals of third countries
  not already covered

4
Time planning Implementing Regulation and
amendments 883/04 and annexes

31.03.2009 EP / EMPL Committee
22.4.2009 EP Plenary Meeting
July 2009 Adoption by Council in 2nd reading
1 March 2010
5
Legislative Update

• Programme of Decisions fromthe Administrative
  Commission
• Revision of existing decisions e.g. decision
  revising the rules of procedure of the
  Administrative Commission
• Adoption of new decisions to facilitate the
  application of the new Regulations e.g.
  decision on a new dialogue and conciliation
  procedure

6
Common Themes underlie the modernised regime

• Modernisation
• Simplification
• Clarification
• Enhanced Administrative Cooperation

7
Modernisation updating to reflect current
practices

• Some examples
• Inclusion of paternity benefits within material
  scope
• Explicit provision to take into account credits
  for child-raising periods
• New recovery procedure (art. 84 BR and Chapter
  III of IR)

8
Simplification

• Some examples
• One single definition in Article 2 setting out
  the personal scope of the Regulation
• Common principles grouped together in Title I and
  no longer repeated for specific risks

9
Clarification

• Incorporation of principles of ECJ case-law in a
  range of areas
• For example
• C-368/98 Vanbraeckel see Article 26(7) NIR
• C-178/97 Banks see Articles 5(1) and Article
  6(3) NIR

10
Enhanced Administrative Cooperation

• Article 76 BR given new emphasis
• Supplemented with a range of specific provisions
  requiring enhanced administrative cooperation
• For example
• Articles 5, 6, 16 and 60 NIR

11

• Key Innovations

12
Determination of Applicable Legislation

• 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
• Exceptions in article 11 (3) (b), (c) and (d) BR

13
Determination of Applicable Legislation

• 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

14
Determination of legislation applicable

• Transitional provisionsArticle 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.

15
Sickness, Maternity and equivalent Paternity
benefits (1)

• Frontier workers
• Members of the family of a frontier worker are
  entitled to benefits in kind while staying in the
  competent state UNLESS the latter is listed in
  Annex III
• Retired frontier workers and family are entitled
  to benefits in kind in the Member State where
  they used to work as a frontier workers if this
  MS as well as the MS which is financially
  responsible are both listed in Annex V

16
Sickness, Maternity and equivalent Paternity
benefits (2)

• Temporary stay outside the competent Member State
• The European Health Insurance Card always issued
  by the Member State which is responsible for the
  costs of the benefits in kind provided.
• Pensioners are entitled to go back to the Member
  State which is financial responsible for the
  costs of the health care in order to receive
  health care if Member State concerned is listed
  in Annex IV (BE, DE, GR, ES, FR, LU, NL, AUT,
  SE).(Article 27 (2) BR))

17
Sickness, Maternity and equivalent Paternity
benefits (3)

• Planned care
• Prior authorisation required.
• Application is always made with the institution
  of the place of residence.
• Prior autorisation is issued by
• - The competent institution
• Or
• - The institution of the Member State of
  residence when
• there is reimbursement between institutions on
  the basis
• of a lump sum

18
Sickness, Maternity and equivalent Paternity
benefits (4)

• Planned care
• The competent institution may refuse to grant the
  prior authoristation when
• - The general conditions set out in the BR are
  not met
• Or
• - If the same treatment can be provided in the
  competent
• MS within a time-limit which is medically
  justifiable
• taking into account the current state of
  health and
• probable cours of the illlness.

19
Sickness, Maternity and equivalent Paternity
benefits (4)

• Planned care
• vitally necessary treatment
• prior autorisation may be issued by the
  institution of the MS of residence when the
  conditions of the BR are met ? competent
  institution shall accept findings and treatment
  options of the doctor approved by the institution
  of the place of residence (Keller judgement)

20
Sickness, Maternity and equivalent Paternity
benefits (5)

• Planned care
• Reimbursement of the costs
• Additional reimbursement upon request by
  competent institution (Van Braekel judgement)
• Reimbursement of travel and accomodation costs if
  the legislation of the competent MS provides for
  such a reimbursement.

21
Key innovations

• Unemployment benefit
• Applies now fully to self-employed persons
• Export of unemployment benefits (Article 64)
• Possibility to extend the authorised period from
  3 to 6 months
• Direct payment of the benefits by the competent
  institution
• Frontier workers or other migrant workers
  (Article 65) Possibilty to register with the
  unemployment services in MS of last employment

22
Key Innovations

• Pensions
• Investigating Institution renamed Contact
  Institution and given more dynamic role (Article
  47 NIR)
• Importance of summary pension note underlined
  claimant given new right of review in relation
  to decisions notified therein (Article 48 NIR)
• Specific provision as regards aggregation of
  child-raising periods (Article 44 NIR)

23
Key Innovations

• Family Benefits
• Distinction between family benefits and
  family allowances removed
• Clearer process for establishing order of
  priority for paying family benefits in the
  event of overlapping
• (Article 68 BR)

24
Next steps? To do list

• AC Decisions and Recommendations
• Explanatory notes, spreading information on the
  modernised coordination
• Unprecedented effort to inform, explain, train
  the users of the coordination
• Conference program 2009

25
The Future

• We have come a long way in 11 years, but there
  is still work to be done
• Long-term care benefits
• New forms of mobility
• Rights of pre-retired persons

26
Electronic Data Exchange Preparations at EC
level

• EESSI (Electronic Exchange of Social Security
  Information)

Silvia Kersemakers TRESS Helsinki, 24 April 2009
27
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

28
Benefits of EESSI

• For the institutions
• Facilitates the implementation of the system of
  coordination under the new Regulations
• Increase of efficiency (faster and more efficient
  processing of data)
• Higher accuracy of data, thus limiting fraud and
  errors
• For the citizens
• Reduction of clearance times, faster payment of
  benefits
• More accurate payments (EESSI less prone to
  errors)

29
Overall System How will it work?
I
AP
AP
I
I
I
I
I
I
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EESSI - Legal framework

• Article 78 of Regulation 883/2004
• Article 4(2) of Implementing Regulation (IR)
• The transmission of data between the
  institutions or the liaison bodies shall be
  carried out by electronic means either directly
  or indirectly through the access points under a
  common secure framework that can guarantee the
  confidentiality and protection of exchanges of
  data.

31
EESSI - Legal framework (cont.)

• Article 4(1) and (3) of IR
• Administrative Commission shall lay down
  structure, content, format of data exchange and
  the practical arrangements for the data exchange

32
EESSI Work within Administrative Commission (1)

• Intensive preparations since 2006
• 2006 AC adopts Work Programme on electronic
  data exchange
• 2006 Task Force on electronic data exchange
• 2006-2008 Working groups for the different risks
  deliver reports on business flows and data
• 2009 Training seminars

33
EESSI Work within Administrative Commission (2)

• Administrative Commission to adopt Decisions on
• EESSI transitional periods (adopted 12 June 2009)
• To be published in autumn in all languages
• Available on DG EMPLs website in EN as from July
  2009
• Flows, SEDs (Structured electronic documents) and
  data
• Portable documents
• Master Directory

34
EESSI Legal Framework (cont.)

• Master Directory (art. 88 of IR)
• List of competent authorities, institutions,
  access points and liaison bodies
• Each body has its own electronic identity
  (identification code and electronic address)
• Notification to European Commission by use of
  template
• Member States responsible for keeping information
  up-to-date

35
Transitional period for EESSI - Article 95 NIR

• Article 95 (1) NIR
• Each Member State may benefit from a
  transitional period for exchanging data by
  electronic means.
• shall not exceed 24 months from the date of
  entry into force of the implementing Regulation.

DG Employment, Social Affairs and Equal
Opportunities
35
36
The Transition from 1408/71 to 883/2004 How will
it work?
ImplementingRegulation adopted
Regulations become applicable
EESSI Starts to function
DG Employment, Social Affairs and Equal
Opportunities
36
37
Decision on transitional period for EESSI
(Decision E1)

• 10 guiding principles
• Para 1 of Decision E1
• Guiding principle shall be good cooperation
  between institutions, pragmatism and
  flexibility.
• Safeguarding of citizens rights

38
Impact of Transitional Period
EESSI fully operational DEC. 2010
Begin of TP MARCH 2010
End of TP MARCH 2012
Paper E-Forms
National applications based on Electronic
E-Forms
Paper SEDs (excel) Paper SEDs (WebIC)
Electronic SEDs
1408/71
883/2004
39
Information Flow Sending
Paper E-form
1
Paper SED
2
Current Electronic application
1
2
From 1st March 2010
Until 28 February 2010
40
Information Flow Receiving
E-form
Pragmatism Flexibility
SED
?
1
2
From 1st March 2010
Until 28 February 2010
41
Principle of flexible phased approach

• No  Big Bang 
• Phasing in sector-by-sector (as becoming
  EESSI-enabled via Access Point(s))
• Member State may also choose to join EESSI only
  when all sectors are enabled

42
Principle of no mix and match

• Exchange between Member States during TP either
  inside or outside of EESSI
• No  Mix and Match  only EESSI enabled sectors
  can exchange information via EESSI
• Without prejudice to bilateral arrangements (e.g.
  joint testing, training, etc.)

43
Conclusions

• EESSI will be particulary beneficial for
  institutions
• Transitional period will be a challenge
• Solution Good cooperation, pragmatism and
  flexibility
• 10 principles laid down in Decision E1 will help
• Rights of citizens must be guaranteed