DG Employment, Social Affairs and Equal Opportunities

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Modernised Social Security Coordination

• Regulation 883/04 and its Implementing
  Regulation

Silvia Kersemakers TRESS Helsinki, 24 April 2009
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Overview

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

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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

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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

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Time planning Implementing Regulation and
amendments 883/04 and annexes

31.03.2009 EP / EMPL Committee
22.4.2009 EP Plenary Meeting
June 2009 Adoption by Council in 2nd reading
1.3.2010
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Common Themes underlie the modernised regime

• Modernisation
• Simplification
• Clarification
• Enhanced Administrative Cooperation

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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)

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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

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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

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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

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• Key Innovations

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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
• Economically active people subject to legislation
  of MS of work
• Activity as employed or self-employed person
• Art. 1(a) and (b) BR any activity or equivalent
  situation treated as such for the purpose of
  social security legislation of the MS in which
  such activity or equivalent situation exists

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Determination of legislation applicable

• Exceptions in article 11 (3) (b), (c) and (d) BR
• Civil servants legislation of MS to which
  administration which employs him is subject
• Non-active people (e.g. retired) subject to
  legislation of MS of residence
• Unemployed persons frontier worker (who receives
  unemployment benefit in that state) subject to
  legislation of MS of residence

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Determination of Applicable Legislation

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

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Determination of legislation applicable

• New provisions on posting (2)
• Posting of self-employed persons (new art. 12(2)
  BR)
• Who normally pursues an activity as self-employed
  person in MS where he is established
• requisite means for exercising activity on return
  (see art. 14(3) NIR)
• similar activities in other MS
• Art 14(4) NIR Definition similar activities -
  actual nature of the activities is decisive, not
  designation of employed or self-employed activity
  in the other MS (see case Banks)

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Activities as employed person in more MS (art. 13
BR)
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Determination of legislation applicable

• Self-employed person pursuing activities in more
  MS
• Subject to legislation of MS of residence if he
  pursues substantial part of activities there
• Otherwise MS in which centre of interest of
  activities in situated

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Determination of legislation applicable

• Self-employment and employment in different MS
• Subject to legislation of MS where the person
  works as employed person (art. 13(3) BR).
• Activity as employed person does not have to be
  substantial
• Simplification / current Annex VII situations
  disappeared

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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.

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Key Innovations

• Sickness and Maternity
• 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))
• EHIC issued by the Member State which is
  financial responsible for the costs of health
  care.

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Key Innovations

• Sickness and maternity
• Incorporation of case-law
• Van Braekel (C-368/98) additional reimbursement
  in new procedure for scheduled treatment (Article
  26 NIR)
• Herrera (C-466/04) on reimbursement of travel and
  accommodation costs in relation to scheduled
  treatment

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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
• Payment of the benefits by the competent
  institution
• Frontier workers (Article 65) Possibilty to
  register with the unemployment services in MS of
  last employment

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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)

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Key innovations

• Preretirement benefits
• Chapter 7 BR only one article (art. 66 BR)
• Article 6 on aggregation of periods does not
  apply
• Rationale gt only very limited number of MS have
  statutory pre-retirement benefits (see recital
  33)

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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)

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Key Innovations

• Family benefits
• Clear priority rules on overlapping
• Rights on basis of work
• Rights on basis of pension
• Rights on basis of residence
• If benefits are payable on same basis residence
  of children
• If amounts in other MS are higher than MS
  designated by priority payment of differential
  supplement.

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Key Innovations

• Family Benefits
• Institutions required to take initiative and
  forward application to competent institutions in
  other Member States where there may be
  entitlement to a differential supplement (Article
  60(2) NIR)

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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

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Over 50 years of Social Security Coordination
2010
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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

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Electronic Data Exchange Preparations at EC
level

• EESSI (Electronic Exchange of Social Security
  Information)

Silvia Kersemakers TRESS Helsinki, 24 April 2009
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Legal framework

• Article 78 of Reg 883/2004
• Article 4(2) of IR data exchange via electronic
  means i.e. through Access Points within a common
  secure network
• Article 4(3) of IR Administrative Commission
  shall lay down the practical arrangements

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EESSI

• Intensive preparations ongoing
• Task Force on electronic data exchange
• Working groups for the different risks delivered
  reports on business flows and data
• Training seminars
• SED (Structured electronic documents)
• Portable documents
• Master Directory
• EESSI transitional periods

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Overall System
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Overall System
Encrypted Decrypted
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The Future The Transition from 1408 to 883
How will it work?
SED Structured Electronic Documents
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• Thank you for your attention!