Reg 883/2004 and 987/2009: modernised social security       coordination         London, 2 July 2010               Rob Cor...
1 May 2010• Reg 883/2004 and 987/2009 replaced  Reg 1408/71 and 574/72• Simplification to some degree• Improvement of citi...
Building on long evolution• More than 50 years of social security  coordination• Unique character of European coordination...
Major changes of new system• Simplification to some extent, in  particular in Titles I and II:  – General aggregation prov...
Simplification• Importance of simplification not to be  overestimated:  – Reg 883 is not simple  – Number of annexes has i...
Title I: General provisions• Personal scope: all EU nationals insured  under national law are covered, including  non-acti...
Title I: General provisions• Reinforcement of equal treatment  principle:  – Applies even when residing in a third country...
Title II: legislation applicable              General rules• Principle of « unicity » of applicable legislation  maintaine...
Title II: Special rules• Posting: maximum of 24 months (Reg  1408: 1 year which can be prolonged with  another year)• Self...
Title II: special rules• Activities in 2 or more MS as an employed  person: person is subject to legislation of MS of  – r...
Activities in 2 or more MS• Activities in 2 or more MS as self-employed.  Person is subject tio legislation of MS of  – re...
Applicable legislation: transition         from 1408 to 883• If, as a result of the new rules, a person is  subject to leg...
Chapter 1: sickness, maternity and             paternity• Temporary stay in other MS: European  Health Insurance Card• Pla...
Chapter 1: sickness, maternity and             paternity• Rights of citizens improved on a number  of points:  – Members o...
Chapter 2: accidents at work and    occupational diseases• No substantial changes in comparison with  1408• Structure simp...
Chapter 3: death grants• No substantial changes in comparison with  1408• Chapter only has 2 articles (1408 had 4)        ...
Chapters 4 and 5: pensions• Not many substantial changes in comparison  with 1408• Reminder: chapters "invalidity" and "ol...
Chapter 4: invalidity• In EU 2 types of benefits:   – A systems: amount of benefit is independent of periods of     insura...
Chapter 4: invalidity• Regulation 883/2004: dual coordination system  in principle maintained, but:• "One pension" system ...
Chapter 5: old-age and survivors             pensions• 883 takes into account existence of  funded schemes and pension acc...
Chapter 6: unemployment• Chapter applies fully to self-employed  (1408: only Article 69)• Chapter is the result of comprom...
Unemployment: measures to      facilitate geographical mobility•   Unemployed persons receiving ub can go to another MS to...
Residing in MS other than           competent MS• Commission proposal: do away with  special rules: MS of last employment ...
Residing in MS other than                competent MS•   Non frontier workers : 3 choices (same as 1408). They can     • l...
Chapter 7: preretirement benefits• Only 1 article (Article 66): aggregation  provision does not apply. Reason given by  Re...
Chapter 8: family benefits• Structure of chapter improved and  simplified• Chapter only has 3 articles (1408 had 12  artic...
Family benefits• Clear priority rules in event of overlapping:   1.rights available on basis of work   2.rights available ...
Family benfits• If amounts in other MS are higher than MS  designated by priority: differential  supplement• Unresolved qu...
Chapter 9: special non-contributory             benefits• Same system as Reg 1408 as modified by  Reg 647/2005         Eur...
Main characteristics of new IR• More efficient and closer cooperation between  institutions• Exchanges between institution...
• Thank you for your attention          European Commission, DG Employment, Social Affairs and Equal Opportunities   07/12...
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2010 - Reg 883/2004 and 987/2009: modernised social security coordination

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2010 - Reg 883/2004 and 987/2009: modernised social security coordination

  1. 1. Reg 883/2004 and 987/2009: modernised social security coordination London, 2 July 2010 Rob Cornelissen European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 1
  2. 2. 1 May 2010• Reg 883/2004 and 987/2009 replaced Reg 1408/71 and 574/72• Simplification to some degree• Improvement of citizen’s rights on a number of points• Cooperation between institutions strengthened European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 2
  3. 3. Building on long evolution• More than 50 years of social security coordination• Unique character of European coordination: role of Court of Justice• Illustration: – Provisions declared invalid (Habelt, Pinna) – Interpretation contra legem (Bosmann) – Coordination provisions complemented by direct application of Treaty provisions (cross-border health care) – Coordination provisions do not always have the last word (De Cuyper, Petersen) European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 3
  4. 4. Major changes of new system• Simplification to some extent, in particular in Titles I and II: – General aggregation provision – Better wording and structure of provisions – Lesser exceptions to general rules – Extension of personal scope also contributed to simplification European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 4
  5. 5. Simplification• Importance of simplification not to be overestimated: – Reg 883 is not simple – Number of annexes has increased – Anex III: « Restriction of rights to benefits in kind for members of the family of a frontier worker » Role of EP on this annex – Annexes IV and V: « More rights for…. » European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 5
  6. 6. Title I: General provisions• Personal scope: all EU nationals insured under national law are covered, including non-active people• Material scope: – only statutory schemes; opt-in possibility for certain contractual provisions (Agirc/Arco) – New: also paternity benefits and pre- retirement benefits – No special chapter for long term care benefits European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 6
  7. 7. Title I: General provisions• Reinforcement of equal treatment principle: – Applies even when residing in a third country – Cross-border recognition of facts and events• Waiving of residence clause for all cash benefits « unless otherwise provided for by this Regulation »(special non- contributory benefits) European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 7
  8. 8. Title II: legislation applicable General rules• Principle of « unicity » of applicable legislation maintained and even reinforced. Bosmann judgment (2008)• Economically active people subject to legislation of MS where they work• Non- economically people: MS of residence• Definition of people who are to be considered as « active » and who are not• Art 11 IR: elements for determining « residence » European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 8
  9. 9. Title II: Special rules• Posting: maximum of 24 months (Reg 1408: 1 year which can be prolonged with another year)• Self-posting: same maximum period. Activity in other MS must be « similar »IR: actual nature of activity is decisive for determing « similar » European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 9
  10. 10. Title II: special rules• Activities in 2 or more MS as an employed person: person is subject to legislation of MS of – residence if working for various employers – residence if working for 1 employer and pusrsues « substantial activities » there (new rule) – Establishment of employer if working for 1 employer and not pursuing « substantial activities » in MS of residence. If employer is established outside EU: MS of residence (new rule) European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 10
  11. 11. Activities in 2 or more MS• Activities in 2 or more MS as self-employed. Person is subject tio legislation of MS of – residence if pursuing « substantial part » there – if he does not pursue there « substantial part »: centre of interest – for determining « centre of interest »: all aspects must be taken into, account: place of business, habitual nature or duration of activities, number of services rendered and intention as revealed by circumstances European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 11
  12. 12. Applicable legislation: transition from 1408 to 883• If, as a result of the new rules, a person is subject to legislation of a MS other than that determined under Reg 1408, the legislation determined under Reg 1408 shall continue to apply for a maximum of 10 years « as long as the relevant situation remains unchanged »: art 87 (8) BR European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 12
  13. 13. Chapter 1: sickness, maternity and paternity• Temporary stay in other MS: European Health Insurance Card• Planned cross-border health care: case- law based on Treaty only very partially reflected in new coordination system• Planned health care: autorisation required European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 13
  14. 14. Chapter 1: sickness, maternity and paternity• Rights of citizens improved on a number of points: – Members of family of frontier workers – Retired frontier workers – Right of pensioners residing in another MS to get medical care in MS paying the pension European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 14
  15. 15. Chapter 2: accidents at work and occupational diseases• No substantial changes in comparison with 1408• Structure simplified thanks to cross-border recognition of facts• Chapter only has 6 articles (1408/71 had 13) European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 15
  16. 16. Chapter 3: death grants• No substantial changes in comparison with 1408• Chapter only has 2 articles (1408 had 4) European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 16
  17. 17. Chapters 4 and 5: pensions• Not many substantial changes in comparison with 1408• Reminder: chapters "invalidity" and "old-age and survivors pensions" had been substantially modified by Regulation 1248/92 European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 17
  18. 18. Chapter 4: invalidity• In EU 2 types of benefits: – A systems: amount of benefit is independent of periods of insurance or residence – B systems: amount of benefit depends on periods of insurance or residence• Dual coordination system under 1408: • If person has been insured exclusively under A systems: one (whole)pension: last MS • In all other cases: chapter "old-age pensions" applies: person receives 2 or more partial pensions: Every MS calculates first amount under national law (including anti- overlapping provisions) Every MS also calculates "prorata" pension Every MS grants highest amount of the two benefits European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 18
  19. 19. Chapter 4: invalidity• Regulation 883/2004: dual coordination system in principle maintained, but:• "One pension" system only applies if person has been insured exclusively under A system and if all MS concerned are listed as A System in Annex VI. • Example: person has been insured in Belgium, France and Netherlands. Under 1408: one pension (only NL). Under 883: 3 partial pensions European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 19
  20. 20. Chapter 5: old-age and survivors pensions• 883 takes into account existence of funded schemes and pension account schemes• Small changes in anticumulation provisions• Still very complex European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 20
  21. 21. Chapter 6: unemployment• Chapter applies fully to self-employed (1408: only Article 69)• Chapter is the result of compromise European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 21
  22. 22. Unemployment: measures to facilitate geographical mobility• Unemployed persons receiving ub can go to another MS to seek work without losing ub under certain conditions and limitations: • Maximimum period: 3 months (same as 1408). But: period may be extended to a maximum of 6 months. • Person loses all entitlement to benefits if he does not return before maximum period (same as 1408), "unless the provisions of that legislation are more favourable“ (sanction less rigid) • Benefits are paid directly by competent institution (1408: benefits are paid by institution of MS where persons seeks work; reimbursement by competent institution) • Person can make use of this possibility several times as long as overall maximum period is respected (1408: provision may be invoked only once between 2 periods of unemployment European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 22
  23. 23. Residing in MS other than competent MS• Commission proposal: do away with special rules: MS of last employment should pay ub• Commission proposal not accepted• Wholly unemployed treated differently than partially unemployed (same 1408)• Frontier workers treated differently than non-frontier workers (same as 1408) European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 23
  24. 24. Residing in MS other than competent MS• Non frontier workers : 3 choices (same as 1408). They can • look for work in State of last employment and stay there: receive benefit from this MS • first look for work in MS of last employment and then go to State of residence while maintaining 3 (possibly 6) months benefits from MS of last employment • go directly to MS of residence; receive benefits there.• Frontier workers : no option as to State paying ub. They receive benefits in State of residence and must register there (same as 1408). But: they can also look for work in MS of last employment. • Is only "supplementary" step. • Obligations and job-seeking activities in MS of residence have priority European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 24
  25. 25. Chapter 7: preretirement benefits• Only 1 article (Article 66): aggregation provision does not apply. Reason given by Regulation 883/04 itself (recital 33): only a very limited number of MS have statutory pre-retirement benefits European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 25
  26. 26. Chapter 8: family benefits• Structure of chapter improved and simplified• Chapter only has 3 articles (1408 had 12 articles divided in 2 chapters)• No difference any more between treatment of workers and pensioners• No difference any more between "family benefits" and "family allowances" European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 26
  27. 27. Family benefits• Clear priority rules in event of overlapping: 1.rights available on basis of work 2.rights available on basis of pension 3.rights available on basis of residence.• Example: family resides in MS A; father draws pension from MS B; mother works in MS C. MS competent by priority: firstly: MS C, then MS B, then MS A. European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 27
  28. 28. Family benfits• If amounts in other MS are higher than MS designated by priority: differential supplement• Unresolved question: how to calculate differential amount: comparison by child or by family? European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 28
  29. 29. Chapter 9: special non-contributory benefits• Same system as Reg 1408 as modified by Reg 647/2005 European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 29
  30. 30. Main characteristics of new IR• More efficient and closer cooperation between institutions• Exchanges between institutions and persons shall be based on principles of public service, efficiency, active assistance, rapid delivery and accessibility• Exchange between institutions shall be carried out by electronic means• Mutual requirement on citizens and institutions to provide each other with information European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 30
  31. 31. • Thank you for your attention European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12 © 2010 Rob Cornelissen 31
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