1. Modernised EU
Social Security Coordination and
Old-Age Pensions
TRESS Seminar Ljubljana, 19th April 2010
Radek Casta, Unit E3, DG Employment, European
Commission,
DG Employment,
Social Affairs and
Equal Opportunities

2. Overview
• The Context of the Social Security Coordination Regulations
• Introduction to the Chapter Applicable Legislation
• « Hot Issues » under this Chapter
• Electronic exchange of social security information
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3. Basic Principles of
Social Security Coordination
Legal Basis Article 48 of Lisbon Treaty (Art. 42 TEC):
aim to ensure citizens do not lose social security
rights when they move
• Equality of treatment regardless of nationality
• Legislation of only one Member State applies at any
one time
• Periods of insurance acquired in different Member
States can be aggregated
• Cash Benefits have to be exported (except special non-
contributory cash benefits listed in Annex 10)
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4. Over 50 years
of Social Security Coordination
_______________________________
____________________________
_______________________
____________________
Reg 883/2004
Reg 987/2009
Consolid Reg
Reg 1408/71
Reg 574/72
Regulations 3 & 4
1959 1972 1997 2010
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5. Two New Regulations
• Regulation 883/2004 (the Basic Regulation) ('BR'),
as amended by Reg. 988/2009
• The New Implementing Regulation 987/2009 ('IR')
• Both Regulations of equal value
• Cannot apply one without the other
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6. New Regulations: Key Themes
• Updating so rules correspond with current social
practices (eg. inclusion of paternity benefits)
• Simplification (eg. One single definition in Article 2 BR
sets out personal scope)
• Clarification - incorporation of ECJ case-law in a
range of areas (eg. Article 5 BR – Assimilation of facts)
• Improved protection of rights (eg. Article 61 BR -
principle of aggregation applies also to self-employed
persons)
• Mandatory electronic data exchange (Art. 4 IR)
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7. 2 core principles underpin
all of this:
• Institutional procedures have been strengthened
and streamlined to make the Regulations easier
and more efficient to operate;
• New emphasis on cooperation between all users of
the Regulations
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8. Core principles of modernisation (1)
Strengthened and Streamlined Institutional
Procedures
For example:
• Improved and speedier procedures for
reimbursement
of healthcare costs between Member States
(Articles 62-67 IR);
• Direct payment of exported unemployment benefit
without need for consequent reimbursement
between institutions (Article 64 BR)
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9. Core principles of modernisation (2)
Enhanced Cooperation
"Clear and more effective cooperation between
social security institutions is a key factor in allowing
the persons covered by regulation (EC) 883/2004
to access their rights as quickly as possible and
under optimum conditions“
[Preamble of the NIR, second paragraph ]
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10. Enhanced Cooperation
Overall aim: to facilitate institutional processes whilst
at the same time making citizens’ rights more effective
• Art. 76 BR invigorated through new specific provisions, for
example:
– Art. 3 IR: requirement on institutions and citizens
to provide information
• Art. 76 BR given practical effect through structured
provisions throughout the Regulations, for example:
– Article 55(4) IR – providing information to competent
institution concerning the follow-up of the unemployed
person’s situation
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11. Core of Modernisation:
Enhanced Cooperation
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12. Enhanced Cooperation
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13. Legislation Applicable
Overview
1. Simplification
2. Improved protection for individuals
3. Modernisation and Clarification
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14. 1. Simplification:
Reinforcement of the general
principles
• One legislation applicable
• Lex loci laboris for active persons
• Residence for non-active persons
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15. 1. Simplification:
Reduction in the number
of specific provisions
• Similar rules are brought together in one place
• Specific cases are addressed through
the general principles
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16. 2. Improved protection for individuals
"Clear and more effective cooperation between social
security institutions is a key factor in allowing the
persons covered by regulation (EC) 883/2004 to
access their rights as quickly as possible and under
optimum conditions."
Preamble of the IR, second paragraph
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17. 2. Improved protection for individuals
76 BR:
Duty of mutual information and cooperation
for institutions and persons covered by the
regulations
2(1) IR:
"Exchanges between Member States' authorities and
institutions and persons covered by the basic
regulation shall be based on the principles of public
service, efficiency, active assistance, rapid
delivery and accessibility…"
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18. 2. Improved protection for individuals
Provisional application of legislation
and provisional granting of benefits
6(1) IR:
Divergence of views about the legislation applicable:
person provisionally subject to one legislation identified
with an order of priority
6(2) IR:
Divergence of views about which institution should provide
the benefits: institution identified with an order of priority
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19. 2. Improved protection for individuals
Dialogue and conciliation procedure
6(3) IR: Dialogue and conciliation procedure
in the event of:
• Doubts about the validity of a document or
the accuracy of the facts
• Difference of views concerning the determination
of the applicable legislation
• Difference of views about which institution should
provide the benefits in cash or in kind
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20. Dialogue and conciliation mechanisms
DG Employment, Social Affairs and Equal Opportunities 20 20

21. 3. Modernisation and clarification
On posting, the new regulations:
• Set one-time limit of maximum 24 months
• Incorporate several elements resulting
from European Court of Justice case law
and Administrative Commission decisions
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22. 3. Modernisation and clarification
Activities in 2 or more Member States
for the same employer
Introduction of a new criterion in Article 13 of BR:
• The proportion of activity exercised in
the Member State of residence has to be
substantial for the legislation of residence to apply
• Otherwise – if no substantial proportion
of activity in the Member State of residence:
refer to legislation of employer
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23. 3. Modernisation and clarification
Activitiy in other Member States then
in the MS of residence
A Legislation applicable = Member State B
Legislation applicable = Member State B
B
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24. 3. Modernisation and clarification
Activities in 2 or more Member States for
the same employer (Attention: in the future also
several employers)
A Legislation applicable = Member State A
Legislation applicable = Member State A
B
Only if substantial part of activities in the Member State of residence
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25. 3. Modernisation and clarification
Activities in 2 or more MS for 2 or more employers,
with registered offices or plase of business in
different Member States
A C
Legislation applicable = Member State A
Legislation applicable = Member State A
B
If 2 or more employers and registered offices/place of business in different member states
, Member State of residence
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26. 3. Modernisation and clarification
Activities in 2 or more Member States
for 2 or more employers, including
in the Member State of residence (Attention:
will change)
A Legislation applicable = MS of residence
Legislation applicable = MS of residence
B
(in the future: only if substantial activity in MS of residence)
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27. 3. Modernisation and clarification
Determination of residence
If two or more Member State institutions have
different views about the determination of residence,
Article 11 of IR provides a list of criteria.
In the event that no agreement is reached,
the person's intention is decisive.
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28. 3. Modernisation and clarification
Revision of Decisions and Recommendations of
the Administrative Commission
Revised by the Administrative Commission:
• Decision 181 (new Decision A2)
• Posting Guide
Repealed by the Administrative Commission:
• Recommendation 16 on conclusion of
agreements pursuant to article 17 of 1408
• Decision 89 on persons employed by
diplomatic missions and consular posts
• Decision 126 on Article 14(1)a, 14a(1)a & 14(b) 1 & 2
• Decision 148 on form E101
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29. 3. Modernisation and clarification
Transitional provisions
What if new provisions imply
a change of the legislation applicable?
Article 87(8) of BR provides for transitional
provisions in this case.
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30. Transitional provisions
Article 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.
DG Employment, Social Affairs and Equal Opportunities 30 30

31. 3. Modernisation and clarification
Portable documents
A document for individuals
– indicating which legislation applies in their case –
will be needed:
Portable Document A1 will replace E-Form 101
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32. « Hot issues » = Issues under
Discussion
Overview
• Highly Mobile Persons
• International Transport
• Concept of Residence
• Posting Guide
• Transitional Provisions
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33. Electronic Exchange of Social
Security Information
EESSI
Network
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34. EESSI
AP AP I
I
I I
I
I
I
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35. EESSI Implementation:
How will it work?
MAY DEC. MAY
2010 2010 2011 2012
EESSI FULLY OP
PAPER
E-FORM 
PAPER
SED'S
________ ________ ________ ……..…... ……….....
NATIONAL
APPL. AS
E-FORMS
__ ________ ________ ________ ……….....
FINAL
SED'S ………….. ………….. ………….. ________ ________ 
SED = Structured Electronic Documents
DG Employment, Social Affairs and Equal Opportunities 35 35

36. Funding for Transnational Actions
Actions:
• Improving information and cooperation between the
institutions of Member States, and/or
• Improving citizens’ knowledge on their rights
• Subsidy up to 80%
• Call for proposal VP/2010/004 (deadline 17/05/2010)
• Published on DG EMPL website
• Publication again in 2011
DG Employment, Social Affairs and Equal Opportunities 36 36

37. Where can I find more
information?
• Our Website
• Updated Small Guide
• Explanatory Notes
• TrESS e-learning tool and European Reports
• Updated and extended posting guide (not yet
available)
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