The document summarizes the impact of replacing EU Regulation 1408/71 on social security in Malta. It provides a brief historical review of Malta's social security agreements with other countries before and after joining the EU in 2004. Since accession, Malta has seen increases in outgoing and incoming pension claims between Malta and other EU countries. There have also been changes in the number of posted workers between Malta and other EU states. Looking ahead, Malta faces challenges in meeting new EU regulations on data exchanges and benefits coordination, and in dealing with increasing cross-border social security issues due to greater mobility, while managing these responsibilities with limited resources as a small nation.

1. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
by Mark Musu’
Director
(Strategic Development & International
Relations)

2. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
In the next 30 minutes:
• Brief historical review pre and post
EU accession
• The situation today as we start to
implement the new regulations
• Future challenges and commitments

3. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Brief historical review pre-accession
1956
• First agreement signed with the UK
– Covered Retirement and Widows Pensions
– Short-term benefits: sickness, unemployment
and occupational injury

4. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
1956
• First agreement signed with the UK
– Agreement reviewed in 1996
- Invalidity Pensions and posting of workers were
now covered as well
- Introduced technical changes in the way pensions
are assessed

5. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
1990
• Agreement signed with Libya (replaced an
earlier one signed in 1972)
– Very different in nature to all agreements Malta has
– Does not cover entitlement to or payment of benefits
– Covers only payment of contributions of Maltese
persons working in Libya (Maltese persons working in
Libya pay contributions only in Malta)

6. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
1991
• Agreement signed with Australia
– Covers only Retirement, Invalidity, and Widow
Pensions
– Does not cover short-term benefits and posting of
workers
– Reviewed in 2004: no major changes for Malta

7. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
1992
• Agreement signed with Canada
– Covers Retirement, Invalidity, and Widow
Pensions
– Covers also posting of workers
– Does not cover short-term benefits

8. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
2003
• Agreement signed with the Netherlands
– Very comprehensive compared to previous
agreements
– Covers Retirement, Invalidity, and Widow Pensions
– Covers also short-term benefits: sickness and
unemployment, maternity benefits, children allowance
and posting of workers

9. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Brief historical review post-accession
2004
• An International Relations Unit (IRU) was set up
within the Department of Social Security (DSS)
– Coordination of Council Regulations (EC) 1408/71
and (EC) 574/72 (fully implemented in 2004 with EU
accession)
– To provide advice on EU & international social
security issues

10. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
2005
• Expansion of the IRU within DSS
– Full coordination of Regulations (EC) 1408/71 and
(EC) 574/72 and bilateral agreements (including
operational duties)
– Dealing with all EU & international social security
related issues and queries
– All work related to international relations in DSS finally
centralized

11. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
2005
• Expansion of the IRU within DSS
– EU funded Twinning Project with UK to enhance our
capacity building
– Developed an IT system for the generation of E-
Forms
– Information campaign across the island re new social
security rights in EU
– Started to face new issues – especially cross-border
insurability issues – transport workers, mariners,
airline personnel

12. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
The situation today
• The focus of our business operations in
international relations has gradually shifted from
pensions to other branches of social security –
mainly insurability of non-Maltese workers,
unemployment and sickness (benefits in kind
under the responsibility of the Health
Department)

13. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Incoming Pension Claims (2006-2009)
UK = 337 (11.7%)
Rest of EU = 272 (9.5%)
Non-EU = 2268 (78.8%)
Incoming pension claims from EU MS
to Malta almost doubled!

14. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Outgoing Pension Claims (2006-2009)
UK = 276 (15.8%)
Rest of EU = 158 (9.1%)
Non-EU = 1311 (75.1%)
Outgoing pension claims from Malta to EU MS
increased by more than a third!

15. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Posted workers – Incoming E101s
2006 = 76 2008 = 66
2007 = 97 2009 = 160
• Sharp increase registered in 2009
– 142% over 2008
– Double the average of previous 3 years

16. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Posted workers – Outgoing E101s
2006 = 143 2008 = 161
2007 = 118 2009 = 114
• Drop registered in 2009
– 29% over 2008
– 10% of average of previous 3 years

17. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Posted workers – E101s
Incoming - Outgoing
2006-08 = 239 2006-08 = 422
2009 = 160 2009 = 114
• Situation reversed in 2009
– Outgoing E101s consistently higher from 2006-2008 – 76%
higher
– In 2009, incoming E101s were higher by 40%

18. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Incoming UB claims – Art.69
2004 = 11 2007 = 27
2005 = 27 2008 = 25
2006 = 16 2009 = 44
• Incoming UB claims gradually increasing
• In 2009 incoming UB claims were almost double the average of the
last 6 years – effect of the recession?
• Of all EU citizens who exported their UB to Malta from 2006-2009,
28.6% managed to find employment in Malta - but ‘only’ 15.9% in
2009!

19. Farewell to Reg (EC) 1408/71 –
its impact on social security in
Malta
Future challenges and commitments –
EU Regs and other
• Regs 883/04 and 987/09 – new obligations and
requirements
• Electronic Data Exchanges by May 2012
• Transfer of pension rights (of Maltese citizens working in
EU institutions)
• Constantly monitor and research international policy
developments, especially in the EU - Social Agenda,
Lisbon Strategy, Social Inclusion policies

20. Farewell to Reg (EC) 1408/71 –
its impact on social security in
Malta
Future challenges and commitments –
EU Regs and other
• Increase in the movement of workers from and/or to Malta – both
EU citizens and TCNs;
• An increase in beneficiaries as a result of the bi-lateral agreements
with other countries other than the EU;
• Conclusion and implementation a bilateral agreement with New
Zealand;
• Launch a Data Exchange and Life Certification System with
Australia and the UK;
• Malta’s ratification of the Revised European Social Charter and
possibly in future the Code of Social Security

21. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
How can Malta (DSS) do all this?!
• Malta is a small country (the smallest in the EU) but its
legal and administrative obligations are the same as
those of the larger EU Member States
• The DSS/IRU requires huge & urgent investments in its
HR (in specialized areas such as policy research and
legal analysis)
• DSS needs to invest more in its IT capabilities to be able
to cope with its future challenges

22. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
THANK YOU FOR YOUR
ATTENTION!