Social security

1
Social security Taxation Key aspects
relevant for researchers mobility

• Massimo Serpieri
• EU Commission DG Research
• Human Factor Marie Curie Actions
• Strategy Policy Aspects

2
Summary

• General principles of social security regimes
• 1st pillar
• Complementary pensions
• Main taxation rules
• Approach by the EU Commission-DG Research Role
  ERA-MORE perspectives

3
General principles social security

• Legal Basis
• Article 42 of the Treaty
• Regulation 1408/71
• Regulation 574/72
• Aim of Community provisions
• to ensure that migrant workers and their family
  members do not lose their social security
  protection when moving within the Community

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Coordination vs Harmonisation

• Coordination means that Member States are free to
  determine
• who is insured
• which benefits shall be provided
• value of benefits
• conditions of eligibility

5
The 4 basic principles

• Only one legislation applicable
• Equality of treatment
• Exportation of benefits
• Aggregation of insurance periods

6
Matters covered

• Sickness and maternity benefits
• Invalidity benefits
• Old-age benefits
• Accidents at work and occupational diseases
• Death grants
• Unemployment benefits
• Family benefits

7
European Health Insurance Card (EHIC)
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Old-age pensions

• Insurance records are preserved
• Each country pays separate pension (at least one
  year of insurance)
• Aggregation of periods
• Pro rata temporis rule
• Export of pensions

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Posting rules

• Art. 14 Reg. 1408/71)  Posted workers  shall
  continue to be subject to the legislation of the
  Member State of origin for up to 1 year (max 2
  y.)
• Art. 17 possibility of agreements between MS to
  derogate Recommendation No. 16 of 1984, the
  Administrative Commission on Social Security for
  Migrant Workers for agreements for employed
  persons with "special knowledge and skills"
  posted abroad "for the full duration of their
  assignment.

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New Developments

• Extension of Regulation 1408/71 to third country
  nationals
• European Health Insurance Card
• Simplification Modernisation New Regulation
  883/2004 which entered into force on 20 May 2004
  (but applicable only from the date of the entry
  into force of the new implementing Regulation)

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New Regulation 883/2004- Main Changes

• Extension of the personal scope
• Strengthening of the equal treatment principle
• Cross border recognition of facts
• New chapter on pre-retirement benefits
• New rules regarding frontier workers
• Principle of good administration

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Pensions 2nd pillar

• Concept
• Problems portability pension rights
  (acquisition, preservation, transfer)
• Directive 98/49/EC on safeguarding the
  supplementary pension rights of employed and
  self-employed persons moving within the EU ok
  preservation of acquired rights, but KO
  conditions of acquisition of the rights or their
  transferability

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Pensions 2nd pillar

• Proposal for a directive containing minimum
  requirements with a view to the improvement of
  the portability of supplementary pension rights
• Importance for countries with long  vesting
  periods 

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Taxation

• Key principle residence
• Bilateral tax agreements
• Specific rules on personal income tax rebates of
  researchers
• Main problem lack of a unique (or comparable)
  clear definition of RD and researcher

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Approach by DG Research - Roles ERA-MORE
Perspectives

• Gathering information on the frequently mentioned
  problems concerning social security taxation
  problems to decide on their real nature

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Approach by DG Research - Roles ERA-MORE
Perspectives

• Proposing possible actions at short, medium and
  long-term
• - by the Commission Background note
  template, training
• - By the MS Internal dialogue with other
  authorities (e.g. for directive portability
  pension rights) - Contacts with relevant network
  (e.g. Tress) - Raising awareness training

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More information

• Coordination of social security website on the
  Europa server
• http//europa.eu.int/comm/employment_social/social
  _security_schemes/index_en.htm
• Tress http//www.tress-network.org