Major aspects of the

1
Major aspects of the Luxembourg Social Security S
cheme
IFCC training June 2005
Marielle Stevenot
2
Part I General overview of the Luxembourg soci
al security scheme
3
General overview of the Luxembourg social
security scheme

• Legal and regulatory framework
• Administrative organisation Missions of the
  various institutions
  
• Administration principles
• Financing The social security contributions
• Persons subject to the Luxembourg social security
  scheme

4
Legal and regulatory framework

• Purpose of the social security scheme to
  protect any person against social risks
  reducing or depriving him of his income or
  imposing additional charges on him.
• ILO convention n 102 minimum risks to be
  covered by the social security
  
• sickness (health care)
• sickness (compensation for the loss of income)
• maternity
• old-age
• invalidity
• death
• work accident and occupational illness
• family charges
• unemployment

5
Legal and regulatory framework

• Social Insurance Code (SIC)
• Book I Sickness Maternity Insurance
• Book II Accident Insurance
• Book III Pension Insurance
• Book IV Common provisions
• Book V Dependency Insurance
• Non-codified laws and regulations - e.g.
• Law of 19 June 1985 on family benefits
• Law of 12 February 1999 on parental leave
• Law of 30 June 1976 on unemployment benefits
• International instruments
• EC Regulation n 1408/71 on the coordination of
  the social security schemes to be replaced by
  EC Regulation n 883/2004
  
• EC Regulation n 574/72 implementation measures
  
  
• Bi- and multilateral conventions

6
Administrative organisation and missions of the
various institutions

• Development of the social security
• by categories of social risks
• by socio-professional categories
• Branches

7
Administrative organisation and missions of the
various institutions

• Organizational flowchart see appendix
• Institutions of the sickness-maternity insurance
• Union des Caisses de Maladie (UCM)
• In charge of the management of the
  sickness-maternity insurance in conjunction with
  the sickness insurance funds (caisses de
  maladie), notably
• fixing the annual budget
• fixing the contribution rates
• negotiating with the providers of medical
  services
  
• Sickness insurance funds
• 9 funds per socio-professional category
• in charge of paying the sickness and maternity
  benefits
  

8
Administrative organisation and missions of the
various institutions

• Institutions of the pension insurance
• Pension funds per socio-professional category
• Institutions of the accident insurance
• Association dassurance contre les accidents
  (AAA)
  
• 2 sections industrial section and agricultural
  forested section
  
• Institutions of the dependency insurance
• Union des Caisses de Maladie (UCM)
• In charge of the budget and the individual
  decisions on the benefits
  
• Cellule dévaluation dorientation
• Multidisciplinary composition
• In charge of stating the dependency status and
  suggesting the appropriate aids and care
  

9
Administrative organisation and missions of the
various institutions

• Institutions for family benefits
• Caisse Nationale des Prestations Familiales
  (CNPF)
  
• In charge of managing and paying the family
  benefits
  
• Under the supervision of the Ministry of Family
• Institutions of the social assistance (minimum
  guaranteed income)
  
• Fonds National de Solidarité
• Institutions of the unemployment insurance
• Administration de lEmploi (ADEM)
• Under the supervision of the Ministry of
  Employment
  
• In charge of placing job seekers and granting
  unemployment benefits
  

10
Administrative organisation and missions of the
various institutions

• Centre Commun de la Sécurité Sociale (CCSS)
• In charge of
• Organisation of the collecting and processing of
  data on behalf of the various social security
  institutions
  
• Affiliation of insured persons
• Collection and recovery of social contributions
• Delivery of the social insurance card
• Contrôle Médical de la Sécurité Sociale
• In charge of
• Stating work disability
• Medical examination
• Control of the prescriptions of the providers of
  medical services
  
• Authorising the reimbursement of specific
  treatments.
  

11
Administrative organisation and missions of the
various institutions

• Inspection Générale de la Sécurité Sociale
  (IGSS)
  
• In charge of the control on the whole social
  security system, e.g.
  
• Give opinion on parliamentary bills related to
  social security
  
• Collect statistics
• Liaise with international and European
  institutions in relation with the social security
  conventions and regulations
  
• Control of the management of the
  sickness-maternity insurance
  

12
Administrative organisation and missions of the
various institutions

• Jurisdiction
• Prior administrative claim to the relevant
  institution in most cases
  
• Conseil Arbitral des Assurances Sociales (CAAS)
• Competent for settling disputes relating to
  affiliation, subjection to social security,
  contributions, benefits and administrative
  penalties
• Composition 1 President and 2 delegates of the
  relevant sickness insurance fund
  
• Conseil Supérieur des Assurances Sociales (CSAS)
• Appeal against the judgments of the CAAS
• Composition 1 President, 2 assessors appointed
  among professional judges and 2 delegates of the
  relevant sickness insurance fund.
  
• Cour de Cassation

13
Administration principles

• Administrative and financial autonomy
• Social security institutions have the legal
  personality
  
• Own patrimony to cover its obligations Own
  budget
  
• Under the supervision of the competent ministry
• Management by social partners
• Management of the institutions by elected
  bodies, consisting of representatives of the
  employers and the insured persons (for the
  employees schemes) or of representatives of the
  insured persons only (for the self-employed
  schemes)

14
Financing The social security contributions

• Sources
• Contributions on the part of the insured persons
  and their employers (equal division)
  
• State subsidies
• Rates
• Independent from the individual situation
• Vary according to the risk covered and the
  socio-professional category concerned
  

15
Financing The social security contributions

• Rates (2005) - Employees

16
Financing The social security contributions

• Basis of contributions
• Professional income
• For employees
• the gross salary, including all benefits in kind
  but excluding occasional benefits and
  gratifications
  
• administrative practice
• For self-employed
• the net income in the meaning of the tax law
• Replacement income

17
Financing The social security contributions

• Basis of contributions
• Minimum basis of contributions
• minimum social salary (MSS) ? EUR 1,466.77 per
  month (index 636.26)
  
• pro rata calculation for part-time workers
• Maximum basis of contributions
• 5 MSS ? EUR 7,333.85 per month (index 636.26)
• pro rata calculation when insurance period does
  not cover the whole calendar year
  
• Contributions of the dependency insurance
• Professional income - no minimum nor maximum
• For employees, deduction of a quarter of the MSS
• Patrimonial income

18
Persons subject to the Luxembourg social security
scheme

• Mandatory insurance
• No common principle for all branches
• General rule
• Any person exercising a professional activity
• Employee, self-employed, civil servant
• Other cases
• Sickness-maternity insurance beneficiaries of a
  replacement income (e.g. unemployed,
  beneficiaries of the minimum guaranteed income,
  pensioner, ) / students
• Accident insurance e.g. students
• Family benefits / Unemployment anyone who
  fulfils the legal conditions
  
• Principle of single affiliation in the case of
  exercise of various activities, affiliation to
  the scheme of the main activity

19
Persons subject to the Luxembourg social security
scheme

• Mandatory insurance
• Specific issue affiliation of the managers and
  directors of companies in the employee or the
  self-employed scheme?
  
• Manager of Sàrl is affiliated as self-employed
  if
  
• he holds more than 25 of the shares and,
• he holds the business licence for the company
• Managing director of S.A. is affiliated as
  self-employed if
  
• he holds the business licence for the company
• Director of S.A. is affiliated as self-employed
• All other cases affiliation in the employee
  scheme

20
Persons subject to the Luxembourg social security
scheme

• Voluntary insurance
• Sickness-maternity insurance
• Continued insurance
• For Luxembourg resident losing his status of
  insured person
  
• Request to be made to the CCSS within 6 months
  following the end of the mandatory insurance
  
• Optional insurance
• For Luxembourg residents who may not otherwise
  benefit of the sickness insurance
  
• Request to be made to the CCSS
• Entitlement to benefits only after a waiting
  period of 3 months

21
Persons subject to the Luxembourg social security
scheme

• Voluntary insurance
• Pension insurance
• Continued insurance
• For Luxembourg resident losing his status of
  insured person
  
• Condition at least 12 months of mandatory
  insurance within the 3 years preceding the loss
  of the status
  
• Request to be made to the CCSS within 6 months
  following the end of the mandatory insurance
  
• Optional insurance
• For Luxembourg residents who do not exercise any
  professional activity for family reasons
  
• Condition at least 12 months of mandatory
  insurance
  
• Request to be made to the CCSS upon agreement of
  the Contrôle Médical de la Sécurité Sociale
  
• Retroactive purchase of insurance periods
• Same conditions than optional insurance but no
  agreement of the Contrôle Médical needed

22
Persons subject to the Luxembourg social security
scheme

• Exemption
• Persons exercising their professional activity
  occasionally for a determined period of maximum 3
  months per calendar year
  
• Persons affiliated to a foreign social security
  scheme and exercising their activity in
  Luxembourg for max. one year (possible
  extensions) cf. European and bilateral
  conventions
• Persons exercising a self-employed activity whose
  income does not exceed one third of the minimum
  social salary
  
• Outbound secondment
• Persons normally occupied in Luxembourg and
  temporarily seconded abroad by their employer
  remain subject to the Luxembourg social security
  scheme cf. European and bilateral conventions

23
Part II The various benefits under the Luxembour
g
social security scheme
24
The various benefits under the Luxembourg social
security scheme

• Sickness benefits
• Maternity benefits
• Dependency benefits
• Work accident and occupational illness
• Invalidity pension
• Old-age pension
• Survival pension
• Family benefits
• Unemployment benefits

25
Sickness benefits

• Two categories of sickness benefits
• Benefits in kind Health care
• Benefits in cash Sickness allowance
• Health care
• Beneficiaries
• the insured person
• his dependents spouse/partner, children
  (giving entitlement to family allowances), parent
  keeping the insureds house
  

26
Sickness benefits

• Health care
• General principles
• Free choice of the provider of medical services
  and supplies
  
• Reimbursement of medical services and supplies on
  the basis of tariff lists fixed by laws,
  regulations and conventions concluded with each
  profession of the medical sector
• Medical services and supplies
• Medical and dentist care
• Stay at hospital
• Laboratory analysis
• Medicine
• Prosthesis
• Transport costs

27
Sickness benefits

• Health care
• Duration of the entitlement to health care
  benefits
  
• Entitlement as of the first day of affiliation
  (waiting period of 3 months for the optional
  insurance)
  
• Upon termination of affiliation, rights
  maintained for the current month and the 3
  subsequent months, if the insured person was
  covered for a continuous period of 6 months
  immediately preceding the end of affiliation
• Modalities of payment of health care benefits
• Two modalities
• Payment by the insured person to the provider of
  medical services and reimbursement by the
  sickness insurance fund
  
• Third paying system costs directly borne by
  the sickness insurance and payment by the insured
  person only of the costs remaining at his charge
  

28
Sickness benefits

• Health care
• Modalities of payment of health care benefits
• Reimbursement rates e.g.
• Doctors fees in principle 80
• Dentists fees in principle 95
• Medicine 0, 40, 80 or 100 depending on the
  type of medicine
  
• Insurance card must be produced in order to get
  health care
  
• Sanctions in case of abuse

29
Sickness benefits

• Health care
• Health care provided abroad
• Direct payment of costs by the Luxembourg
  sickness insurance
  
• In case of emergency treatment
• Upon prior authorisation (E112 form) according
  to the tariff of the foreign country if EU Member
  State
  
• Prior authorisation mandatory for hospital care
• Reimbursement by the Luxembourg sickness
  insurance in other cases
  
• Only for medical services and supplies obtained
  in the EEA and Switzerland
  
• Upon prescription by a doctor
• Upon submission of evidence of payment
• Reimbursement on the basis of Luxembourg tariffs

30
Sickness benefits

• Sickness allowance
• Beneficiaries
• Insured person compensation for the loss of
  income due to work disability
  
• Duration
• As long as the work disability continues
  subject to the control by the Contrôle Médical de
  la Sécurité Sociale
  
• New law of 21 December 2004 no entitlement to
  the sickness allowance after 10 weeks of work
  disability over a reference period of 20 weeks,
  unless upon submission of a detailed medical
  report by the usual doctor and advice of the
  Contrôle Médical
• Maximum 52 weeks over a reference period of 104
  weeks no matter the cause of work disability
  (normal sickness, work accident, )
  
• New law in case of termination of affiliation,
  the payment of sickness allowances is subject to
  the condition that the employee has been
  affiliated for a continuous period of min. 6
  months immediately preceding the end of
  affiliation

31
Sickness benefits

• Sickness allowance
• Duration
• Link with the invalidity insurance and the law on
  professional reinstatement
  
• Periodic examination of the disabled employee to
  check the entitlement to sickness allowance
  
• 4 hypotheses
• Employee is no longer disabled ? no entitlement
  to sickess allowance
  
• Employee is still sick ? sickness allowance
  maintained (max. 52 weeks)
  
• Employee is no longer able to exercise any job ?
  invalidity pension
  
• Employee is disabled for his last job but not for
  the whole employment market ? procedure for
  internal or external reinstatement
  
• For self-employed no entitlement to sickness
  allowance during the first month of disability
  and the 3 subsequent months

32
Sickness benefits

• Sickness allowance
• Payment modalities
• For blue-collar workers advance payment by the
  employer for the first month of work disability
  and the 3 following months and reimbursement by
  the sickness insurance fund as of the 4th
  month, direct payment by the sickness insurance
  fund
• For white-collar workers payment of the salary
  maintained by the employer for the first month of
  work disability and the 3 following months (art.
  35 of the law of 24 May 1989 on the employment
  contract) as of the 4th month, payment of the
  sickness allowance by the sickness insurance fund
  / New law max. 13 weeks over a reference period
  of 12 months, no matter the cause of disability
• Amount of the sickness allowance amount of the
  salary which should have been paid min. MSS /
  max. 5 MSS
  

33
Sickness benefits

• Sickness allowance
• Formalities
• Declaration of the work disability to the
  sickness insurance fund at the latest on the 3rd
  day by medical certificate dated of the 1st or
  the 2nd day of disability same in the event of
  extension of the sickness
• Late declaration sickness allowance due only as
  of the declaration
  
• For white-collar workers until the 4th month
  medical certificate to be given to the employer
  in accordance with art. 35 of the Law of 1989
  
• New law of 21 December 2004 all insured persons
  (including white-collar workers) have to send a
  copy of their medical certificate to the sickness
  insurance fund employers have to declare
  monthly all work disabilities to the sickness
  insurance fund

34
Sickness benefits

• Sickness allowance
• Leave for family reasons
• Hypothesis insured person absent of work due to
  the illness of a child
  
• Upon delivery of a medical certificate stating
  that the presence of the parent is required
  
• Limited to 2 days per child and per year (unless
  very serious illness)
  
• Entitlement to an indemnity equal to the sickness
  allowance
  

35
Sickness benefits - Exercise

• Mr Schmit is a high executive working in a
  Luxembourg bank. He earns a monthly gross salary
  of EUR 7,500. From February 5, 2005 to June 15,
  2005, Mr Schmit is sick and has submitted the
  appropriate medical certificates stating his work
  disability.
• Which one of the following statement is correct
  ?
  
• 1 During the whole disability period, Mr Schmit
  will receive his full salary
  
• 2 Mr Schmit will receive his full salary during
  a part of the disability period and an amount of
  EUR 7,333.85 during another period
  
• 3 During the whole disability period, Mr Schmit
  will receive an amount of EUR 7,333.85
  

36
Maternity benefits

• Two categories of maternity benefits
• Benefits in kind
• Medical assistance, stay at maternity hospital,
  medicine, supplies for newborn
  
• Benefits in cash
• Maternity allowance
• Condition being subject to the mandatory
  insurance for min. 6 months in the course of the
  year preceding the maternity leave
  
• Duration of payment
• 8 weeks preceding childbirth
• 8 weeks following childbirth / 12 weeks in case
  of multiple birth, premature birth or
  breastfeeding
  
• In case of adoption 8 weeks

37
Dependency benefits

• Purpose
• Compensation for the costs of care and help
  needed by a dependent person at home or in a care
  centre
  
• Dependency state of an individual who, further
  to physical or mental illness or deficiency, has
  an important and regular need for the assistance
  of a person for the essential day-to-day acts
• Conditions
• Need for assistance must cover one or several
  aspects of the essential day-to-day acts
  hygiene, nutrition and mobility
  
• State of dependency must be linked to a medical
  cause
  
• State of dependency must be foreseen for a
  minimum duration of 6 months
  
• Need for assistance must represent a minimum of
  3.5 hours per week

38
Dependency benefits

• Beneficiaries
• Persons subject to the mandatory insurance scheme
  or the continued insurance as of the first day
  of affiliation
  
• Persons having subscribed to the optional
  insurance one year waiting period
  
• Benefits
• Benefits in case of stay at home (privileged) or
  in a centre for care and help
  
• Benefits in kind / in cash
• Assessment of the state of dependency
• In order to determine the nature and the volume
  of benefits to which the dependent person is
  entitled
  

39
Work accident and occupational illness

• Risks covered
• Work accident
• accident which occurred by reason or on the
  occasion of work
  
• link between the employment and the activity
  having caused the injury employee under link of
  subordination at the time of the accident
  
• Accident while travelling to work
• Accident which occurred on the normal and direct
  way to go from home to the place of work and
  back
  
• Limited to accident on public roads
• Occupational illness
• Illness to which certain categories of
  individuals may be exposed by reason of their
  employment and which are recorded on a list
  established by the government

40
Work accident and occupational illness

• Benefits
• Benefits in kind
• No contribution to be paid by the insured person
• Payment by the UCM, which is reimbursed by the
  AAA
  
• Benefits in the case of temporary disability
• Duration of indemnification
• Recent change in the legislation to harmonise the
  benefits due in case of work accident with the
  general sickness insurance scheme
  
• Before 1 May 2005 temporary disability
  allowance equal to the sickness allowance is paid
  during max. 13 weeks afterwards, payment of a
  temporary annuity depending on the level of
  disability
• As of 1 May 2005 temporary disability allowance
  equal to the sickness allowance is paid during
  max. 52 weeks over a reference period of 104
  weeks afterwards, annuity depending on the
  level of disability

41
Work accident and occupational illness

• Benefits
• Benefits in the case of temporary disability
• Payment modalities
• For blue-collar workers advance payment by the
  employer and reimbursement by the AAA
  
• For white-collar workers payment of the salary
  is maintained by the employer for the 1st month
  of disability and the 3 following months (art. 35
  of the law of 24 May 1989) payment by the AAA
  afterwards

42
Work accident and occupational illness

• Benefits
• Benefits in the case of permanent disability
• Depending on the level of disability
• Total disability ? annuity equal to 85.6 of the
  former income
  
• Partial disability ? annuity corresponds to a pro
  rata of the total disability allowance
  
• For disabilities of 50 or more, increase of 10
  per dependent child (max. 100)
  
• Repurchase of the lifetime annuity (i.e.
  conversion into capital) for disabilities of less
  than 10
  
• Survivors benefits
• Funeral indemnity
• Annuity for spouse (in principle 42.8) and for
  children (21.4)
  
• Formalities

43
Invalidity pension

• Beneficiaries
• Insured person who, for health reasons, is no
  longer able to exercise his last job or any other
  job on the market
  
• Insurance condition having been subject to the
  mandatory or continued insurance for 12 months in
  the course of the 3 years preceding the start of
  invalidity not applicable for invalidity due to
  an accident
• Beneficiary must renounce to the exercise of any
  self-employed activity subject to insurance
  
• Up to 50 years old, the beneficiary must follow
  the rehabilitation or redeployment measures
  prescribed by the pension insurance fund

44
Invalidity pension

• Benefits
• Temporary invalidity pension
• Paid as of the expiration of the right to the
  sickness allowance
  
• Permanent invalidity pension
• Paid as of the day on which the permanent
  disability is stated, if the insurance condition
  is met
  
• Conversion into an old-age pension
• The invalidity pension is renewed as old age
  pension when the beneficiary reaches the age of
  65

45
Invalidity pension

• Benefits
• Amount of the invalidity pension
• Various elements
• Proportional increases (majorations
  proportionnelles)
  
• Special proportional increases
• Lump-sum increases (majorations forfaitaires)
• Special lump-sum increases
• Year-end allowance
• Minimum pension 90 of the reference amount
  (EUR 1,467 index 636.26) for an insurance
  career of 40 years ? EUR 1.320,30 (index 636.26)
  missing years between the start of the right to
  pension and the age of 65 are taken into
  account.
• Maximum pension 5/6th of 5 times de reference
  amount ? EUR 6,112.50 (index 636.26)

46
Invalidity pension

• Benefits
• Amount of the invalidity pension
• Concurrent benefit of an invalidity pension and
  an accident annuity
  
• If exceed the average of the 5 highest income of
  the insurance career or, if it is more
  favourable, the income taken into account to
  determine the accident allowance, invalidity
  pension is reduced
• Formalities
• Request to be made to the sickness insurance fund
  or to the pension insurance fund

47
Invalidity pension

• Case study
• Mr Schmit is victim of a work accident in October
  2004 and is temporarily work disabled. In May
  2005, he is considered to be permanently invalid
  but decides to start a small business as
  self-employed, bringing in an income estimated at
  EUR 1,000 per month.
• Which one of the following statements is
  correct?
  
• 1 A temporary disability allowance is paid by
  the AAA from October 2004 to May 2005. As of May
  2005, Mr Schmit will be entitled to a full
  disability annuity paid by the AAA.
• 2 A temporary disability allowance is paid by
  the AAA during 13 weeks. Then, Mr Schmit is
  entitled to a full disability annuity paid by the
  AAA until May 2005. As of May 2005, he will
  receive his annuity of the AAA and an invalidity
  pension but the pension will be reduced.
• 3 A temporary disability allowance is paid by
  the AAA from October 2004 to May 2005. As of May
  2005, Mr Schmit will only be entitled to an
  invalidity pension.

48
Old-age pension

• Age and insurance conditions
• Normal old-age pension
• 65 years old, and
• 120 months of mandatory or voluntary insurance
• Anticipated old-age pension
• At least 60 years old and 480 months of mandatory
  or voluntary insurance, of which at least 120
  months under the mandatory insurance scheme
  
• At least 57 years old and 480 months of mandatory
  insurance

49
Old-age pension

• Age and insurance conditions
• Insurance periods taken into account
• Effective insurance periods Periods taken into
  account to acquire the right to old-age pension
  (insurance conditions) and to calculate the
  pension, e.g.
• Periods of exercise of a professional activity
• Periods for which a replacement income subject to
  contributions is paid
  
• Baby years (24 or 48 months)
• Assimilated insurance periods Periods taken
  into account to complete the insurance conditions
  required for an anticipated pension as of the age
  of 60 and to calculate the pension, e.g.
• Periods during which an invalidity pension has
  been paid
  
• Periods of studies between 18 and 27 years old
• Waiting period during which the young unemployed
  is not entitled to unemployment indemnities

50
Old-age pension

• Amount of the old-age pension
• Depends on the duration of insurance and the
  professional income subject to contributions
  earned during the insurance career
  
• Various elements
• Proportional increases (majorations
  proportionnelles) 1.85 of all income subject
  to contributions, reduced at the index 100 of the
  cost of living and multiplied by an adjustment
  factor ( 1.327 in 2005)
• Staggered proportional increases for persons
  aged 55 and having at least 38 years of insurance
  ? rate of 1.85 is increased with 0.01 per
  additional age year and 0.01 per additional
  insurance year
• Lump-sum increases (majorations forfaitaires)
  23.5 of a reference amount (EUR 1,467 index
  636.26) for an insurance career of 40 years EUR
  344.75 (index 636.26) ? EUR 8.62 per insurance
  year commenced
• Year-end allowance EUR 564 (index 636.26)
  yearly for an insurance career of 40 years,
  reduced of 1/40th per missing year
  

51
Old-age pension

• Amount of the old-age pension
• Minimum and maximum pension
• Minimum 90 of the reference amount (EUR 1,467
  index 636.26) for an insurance career of 40
  years ? EUR 1.320,30 (index 636.26)
  
• Maximum pension 5/6th of 5 times de reference
  amount ? EUR 6,112.50 (index 636.26)
  
• Increase of the old-age pension on the basis of
  the adjustment factor and the cost of living
  

52
Old-age pension

• Concurrent benefit of old-age pension and other
  income
  
• Old-age pension and income resulting from a
  professional activity
  
• No restriction for the beneficiary of a normal
  old-age pension (as of age 65)
  
• Beneficiary of an anticipated old-age pension may
  not exercise an activity bringing in an income
  exceeding one third of the minimum social salary
  otherwise, old-age pension is reduced or
  suppressed
• Old-age pension and accident allowance
• Concerns normal and anticipated old-age pension
• Old-age pension is reduced if, together with the
  accident allowance, it exceeds the average of the
  5 highest income of the insurance career or, if
  it is more favourable, the income taken into
  account to determine the accident allowance

53
Old-age pension

• Reimbursement of contributions
• If at the age of 65, the insured person does not
  meet the insurance conditions to benefit of an
  old-age pension, contributions paid (except for
  state contributions) are reimbursed upon request
• Education lump sum (forfait éducation)
• Beneficiary parent who devoted himself/herself
  to the education of a child
  
• Education lump-sum paid as of the age of 60 or
  the grant of a personal pension
  
• Amount EUR 84.43 (index 636.26) per month and
  per child
  
• Request to be made to the Fonds National de
  Solidarité
  
• Formalities request to the pension insurance
  fund

54
Survival pension

• Beneficiaries
• Survival pension for the spouse or partner
• Spouse or partner of the beneficiary of an
  invalidity or old-age pension, or of an insured
  person having been affiliated to the mandatory or
  continued insurance for 12 months in the course
  of the 3 years preceding the decease no
  insurance condition if decease is due to an
  accident in the course of affiliation
• Divorced spouse provided he/she did not remarry
  before the decease Survival pension is based on
  the insurance periods accomplished during the
  marriage
• In the absence of surviving spouse or partner,
  entitlement to survival pension for relatives on
  certain conditions
  
• Survival pension for the children
• Same insurance conditions than for other survival
  pensions
  
• Until the age of 18 or 27 in case of studies

55
Survival pension

• Amount of the survival pension
• Survival pension for the spouse or partner
• 3/4 of the proportional and special proportional
  increases to which the insured was or would have
  been entitled
  
• The full lump-sum and special lump-sum increases
• The full year-end allowance
• Minimum and maximum pension
• Geared to the cost of living index
• Additional payment for the first 3 months
• Survival pension for the children
• 1/4 of the proportional and special proportional
  increases to which the insured was or would have
  been entitled
  
• 1/3 of the lump-sum and special lump-sum
  increases
  
• 1/3 of the year-end allowance
• For orphans of the two parents, the highest
  pension is doubled

56
Survival pension

• Concurrent benefit of the survival pension and
  other income
  
• Survival pension for the spouse or partner
• Survival pension and survival accident allowance
  ? Survival pension is reduced if, together with
  the survival accident allowance, it exceeds 3/4
  of the average of the 5 highest income of the
  insurance career
• Survival pension and professional or replacement
  income ? Survival pension is reduced if, together
  with personal income, it exceeds the reference
  amount (EUR 1,467 index 636.26) increased with
  50 (EUR 2,200.50 index 636.26)
• Survival pension for the children
• Survival pension and survival accident allowance
  ? Survival pension is reduced if, together with
  the survival accident allowance, it exceeds 2/3
  of the average of the 5 highest income of the
  insurance career
• Total survival pensions in relation with the
  deceased may not exceed the old-age pension due
  to the deceased or, if more favourable the
  average of the 5 highest income proportional
  reduction

57
Family benefits

• Various categories of family benefits
• Family allowances (allocations familiales)
• Back-to-school allowance (allocation de rentrée
  scolaire)
  
• Birth allowance (allocation de naissance)
• Maternity allowance (allocation de maternité)
• Education allowance (allocation déducation)
• Parental leave allowance (allocation de congé
  parental)
  
• Conditions of entitlement vary for each category
  of benefits

58
Family benefits

• Family allowances
• Personal right of the child
• Conditions
• Continuous residence in Luxembourg or falling
  within the scope of application of the EC
  Regulations or bilateral conventions
  
• No loss of the allowance in case of temporary
  residence abroad if the parent studies abroad
  
• Duration
• As of the month of birth
• Until the age of 18 or 27 in case of studies in
  Luxembourg or abroad
  
• Allowance no longer paid as of the marriage or
  partnership (except in case of studies) and in
  case of exercise of a professional activity
  

59
Family benefits

• Family allowances
• Amount
• Increases with the number of children in the
  family
  
• Increases with the age (as of 6 and 12 years
  old)
  
• Additional allowance for handicapped child
• Payment
• In case child is raised in the common household
  of the parents, choice of the parents
  
• In other cases, payment to the parent who has
  custody
  
• In case the child reaches the age of majority,
  payment to him/her upon request
  

60
Family benefits

• Back-to-school allowance
• Purpose
• Compensation of the specific costs linked to the
  beginning of school
  
• Beneficiaries
• For children who are entitled to family
  allowances
  
• As of the age of 6 or upon submission of a
  registration certificate
  
• Amount
• Increases with the number of children in the
  family
  
• Increases with the age (as of 6 and 12 years
  old)
  

61
Family benefits

• Birth allowance
• Purpose
• Ensure the continuous medical surveillance of the
  pregnant mother and the young child
  
• Conditions
• General condition be domiciled and raise the
  child in Luxembourg
  
• Special conditions
• Pre-birth allowance 5 medical examination and
  one dental examination
  
• Birth allowance one post-birth examination for
  the mother
  
• Post-birth allowance 2 examinations of the
  child further to birth and 4 others until the age
  of 2
  
• Amount and terms of payment

62
Family benefits

• Maternity allowance
• Purpose
• Initially, benefits in cash similar to the
  maternity benefits for self-employed women and
  housewives
  
• Since 1994, self-employed women receive maternity
  benefits ? only for housewives
  
• Conditions
• Domicile in Luxembourg
• Terms of payment
• Payment during maximum 16 weeks as of the 8th
  week preceding the presumed date of birth
  
• Payment in two parts
• Amount

63
Family benefits

• Education allowance
• Purpose
• Allow one of the parents to stop his/her
  professional activity to raise his/her children
  
• Participation of the costs of the day care centre
  for parents working with low income
  
• Conditions
• Parent must reside in Luxembourg or fall within
  the scope of application of the EC Regulations or
  bilateral conventions
  
• Parent must mainly devote himself/herself to the
  education of children and not exercise any
  professional activity OR earn together with
  spouse or partner income lower than 3, 4 or 5
  times the MSS (if raises respectively 1, 2 or 3
  or more children)

64
Family benefits

• Education allowance
• Terms of payment
• Due as of the first day following the end of the
  maternity leave or the expiration of the 8th week
  following birth
  
• Lasts until the child reaches the age of 2 / 4 in
  case of multiple birth or raising of 3 or more
  children
  
• Amount
• Fixed amount no matter the number of children
• In principle, no payment in case one of the
  parents benefits for the same children of the
  parental leave allowance

65
Family benefits

• Parental leave allowance
• Adopted in 1999 further to an EU Directive
  following an agreement between social partners at
  European level
  
• Purpose
• Allow a better conciliation between work life and
  family life
  
• Measure to fight against unemployment
• Conditions
• Raising one or more children aged less than 5
• Devoting oneself mainly to the education of the
  children or, in case of part-time leave, working
  no more than half of the normal working time
  
• Residing in Luxembourg or falling within the
  scope of application of the EC Regulation
  
• Being legally occupied in Luxembourg at the time
  of birth as self-employed or for at least one
  year as an employee of the same company
  
• Being subject to the mandatory pension insurance
  for the 12 months immediately preceding the
  parental leave

66
Family benefits

• Parental leave allowance
• Duration
• 6 months full-time
• 12 months part-time, with the employers
  agreement
  
• One leave per parent and per child, provided one
  of the parents took his/her leave immediately at
  the end of the maternity leave
  
• Procedure
• Upon request notified to the employer before the
  maternity leave or at least 4 months before the
  beginning of the parental leave
  
• Amount and terms of payment
• Monthly payment
• Exempt of tax and social security contributions
  except contributions for health care costs and
  dependency contributions

67
Family benefits

• Parental leave allowance
• Duration
• 6 months full-time
• 12 months part-time, with the employers
  agreement
  
• One leave per parent and per child, provided one
  of the parents took his/her leave immediately at
  the end of the maternity leave
  
• Procedure
• Upon request notified to the employer before the
  maternity leave or at least 4 months before the
  beginning of the parental leave
  
• Amount and terms of payment
• Monthly payment
• Exempt of tax and social security contributions
  except contributions for health care costs and
  dependency contributions

68
Unemployment benefits

• General scheme
• Beneficiaries
• Full-time employee
• Part-time employee having worked at least 16
  hours per week
  
• In case of exercise of various activities, job
  lost must have been exercised for at least 16
  hours per week and the remaining professional
  income must be lower than 150 of the MSS
• Conditions
• Being involuntarily unemployed ? no benefits in
  case job is abandoned for non justified reasons
  (e.g. resignation, termination by mutual
  agreement) or in case of dismissal for gross
  misconduct
• Being resident in Luxembourg (specific provisions
  provided by the EC Regulation)
  
• Being available for the job market and ready to
  accept any appropriate job
  
• Having worked at least 26 weeks in the course of
  the 12 months preceding the registration as job
  seeker
  

69
Unemployment benefits

• General scheme
• Duration of indemnification
• Max. 365 calendar days over a reference period of
  24 months
  
• For unemployed aged 50 or more, extension as
  follows
  
• 12 months, in case of mandatory affiliation
  during 30 years
  
• 9 months, in case of mandatory affiliation during
  25 years
  
• 6 months, in case of mandatory affiliation during
  20 years
  
• Extension of max. 6 months upon request to the
  director of the ADEM for unemployed particularly
  difficult to place
  
• Extension of max. 6 months for the unemployed
  subject to training or works of public utility
  
• After the end of entitlement to unemployment
  benefits, right in principle to the minimum
  guaranteed income
  

70
Unemployment benefits

• General scheme
• Amount of the unemp