Reg 883/2004 and 987/2009 modernized EU social security coordination by simplifying some rules while improving citizens' rights. Key changes included replacing regulations 1408/71 and 574/72, extending personal scope, and strengthening cooperation between institutions. While some simplification occurred, complexity remained in areas like applicable legislation and pension coordination. The new system preserved the general rules around social security coordination that had developed over 50 years of case law interpretations.

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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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31. • Thank you for your attention
European Commission, DG Employment, Social Affairs and Equal Opportunities 07/12/12
© 2010 Rob Cornelissen
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