Category Archives: Social protection

From a worldwide perspective, the European Union (EU) is clearly a model of social protection. Unemployment, poor health, invalidity, family situations and old age are some of the risks which these systems were created to deal with. The systems also guarantee access to several services that are vital to the preservation of human dignity. Although the Member States are responsible for organising and funding social protection systems, the EU has a special role to play by introducing legislation which coordinates the national social security systems, particularly with regard to mobility within the Community. The EU recently committed itself to promoting closer cooperation between the Member States in modernising their social protection systems, which face similar challenges throughout the EU.

Social Protection Committee

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Social Protection Committee

Outline of the Community (European Union) legislation about Social Protection Committee

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social protection

Social Protection Committee

Document or Iniciative

Council Decision 2004/689/EC of 4 October 2004 establishing a Social Protection Committee and repealing Decision 2000/436/EC [Official Journal L 314 of 13.10.2004].

Summary

This Council Decision establishes the Social Protection Committee and repeals Decision 2000/436/EC based on the Commission’s communication ” A Concerted Strategy for modernising social protection “. The aim of this communication was to reflect on the importance of the convergence of social protection objectives and policies and to reaffirm the place of this social protection among the common values of the European Union (EU).

The Social Protection Committee was set up to promote cooperation on social protection policies between Member States and the Commission. Its main objectives are to:

make work pay and provide secure income;
make pensions safe and pension systems sustainable;
promote social inclusion;
ensure high-quality and sustainable health care.

The Social Protection Committee, which has an advisory role, consists of two representatives appointed by each Member State and two representatives of the Commission. It may also establish appropriate contacts with the social partners and social non-governmental organisations.

The new Committee retains all the tasks of the former Social Protection Committee, namely:

monitoring the social situation and the development of social protection policies in the Member States and the Community;
exchanges of information, experience and good practice;
preparing reports, formulating opinions or undertaking other work within its fields of competence, at the request of either the Council or the Commission or on its own initiative.

In practice, since its foundation, the Committee’s work has been largely determined by the strategic objective which the Union set itself in terms of socio-economic progress at the Lisbon European Council in March 2000: “to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion”.

Background

The legal basis for the Social Protection Committee is Article 144 of the Treaty of Nice, which provides for the creation of a new Social Protection Committee to promote cooperation on social protection policies between the Member States and the Commission. The purpose of the decision to replace the former committee with this one is essentially procedural – to establish the Committee in line with the new legal basis.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Decision 2004/689/EC	—	—	Official Journal L 314 of 13.10.2004

Related Acts

Council Decision 2000/436/EC of 29 June 2000 setting up a Social Protection Committee [COM(2000) 436, Official Journal L 172 of 12.07.2000].
On 29 June 2000, the Council approved the Commission’s proposal to help Member States to improve and strengthen their social protection systems. In this communication, the Commission proposes to begin a new phase in the process of examining social protection systems at Community level. To this end, the Council supported the Commission’s suggestion to establish a mechanism for enhanced cooperation brought about by the work of the group of high-level officials for the improvement of social protection systems. This group of officials laid the foundations of the Social Protection Committee.

The Social Protection Committee has clearly shown its usefulness as an advisory body for both the Council and the Commission, and it has been actively involved in developing the open method of coordination as defined by the Lisbon European Council.

Streamlining open coordination in the field of social protection

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Streamlining open coordination in the field of social protection

Outline of the Community (European Union) legislation about Streamlining open coordination in the field of social protection

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Employment and social policy > Social protection

Streamlining open coordination in the field of social protection

Document or Iniciative

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions: Strengthening the social dimension of the Lisbon strategy: Streamlining open coordination in the field of social protection [COM(2003) 261 final – Official Journal L 314 of 13.10.2004].

Summary

This communication from the Commission derives from the need for policy cooperation and coordination in the field of social protection. While the Member States retain full responsibility for the financing and organisation of their protection systems, the role of the Community is essential in supporting and complementing activity in this field, as outlined in the Treaty of Amsterdam and Treaty of Nice. The Lisbon conclusions (March 2000) also saw modernised and improved social protection systems as an important building block towards achievement of the objective of an integrated socio-economic strategy for Europe within the next ten years (2000-2010).

Strengthening the social dimension of the Lisbon strategy

Policy cooperation in the field of social protection took a huge step forward when the Lisbon European Council outlined its vision of an integrated socio-economic strategy for the decade to 2010. Contributing to this strategy involves streamlining the economic and employment policy coordination processes.

Economic policy coordination is organised within the framework of the Broad Economic Policy Guidelines (BEPGs), multilateral surveillance (aimed at assessing the implementation of the BEPGs) and the Stability and Growth Pact. As for employment policy coordination, this is organised within the framework of the European Employment Strategy (EES) and the European Employment Policy Guidelines (EEPGs) – which set out common objectives and priorities for employment policies and which are put into practice nationally through National Action Plans (NAPs). The overarching objectives are full employment, quality at work, the promotion of social cohesion and inclusion.

This streamlining has been a major achievement, but due to the major expansion in the number of different procedures concerned with coordinating economic and related policies, the need to better streamline the Open Method of Coordination (OMC) in the field of social protection is clear.

The Open Method of Coordination and its role within the strategy as a whole

The OMC has been considered by the Lisbon European Council as a mechanism for coordinating and taking forward work in the fields of social inclusion and pensions, which has allowed progress to be made in these areas. Nevertheless, questions regarding health and long-term care – key issues for the development of Europe’s social model – have not yet been considered within the framework of cooperation in social protection. It is therefore necessary to define which methods are the most appropriate to deal with these issues.

The Commission believes that the currently segmented organisation of work should be replaced, and future work brought within a unified structure referring to social protection as a whole and organised in principle into three pillars relating to the three policy areas of social inclusion, pensions and health and long-term care.

The application of the OMC was introduced at the Lisbon European Council as a means of spreading best practice and achieving greater convergence towards the main EU goals. It was conceived as a flexible governance method, in complement to the existing Community method and other Treaty-based procedures, such as the BEPGs and the EES, which continue to be the Community’s core instruments. The OMC is used on a case-by-case basis, alongside the programme-based and legislative approach in some areas, such as employment and social policy. In short, it should be a complement, rather than a replacement, for Community action and always take account of the institutional balance.

It will be the role of future cooperation in the field of social protection via the OMC to undertake a detailed analysis of the issues which confront national systems and the particular contribution which they will be able to make to the Lisbon strategy.

In order to establish a streamlined approach to integrated policy cooperation for the three pillars of social protection policy (social inclusion, pensions and health and long-term care), the Commission proposes that the set of objectives to be achieved be reviewed and replaced by the Council in 2006, acting on a proposal from the Commission. The new set of common objectives should be defined under the Lisbon strategy and closely connected with the BEPGs and the EEPGs, which will be adopted in 2006. Progress achieved within the OMC in the field of pensions should also be examined in 2006.

The set of common objectives should also include a limited number of cross-cutting issues that have a more general relevance, such as gender mainstreaming.

Reporting mechanisms

The key instrument of the new streamlined process will consist of a Joint Social Protection Report, drawn up by the Commission and the Council, which will assess progress made across the full range of common objectives. This report will replace the “Social Protection in Europe Report” provided for under the Decision establishing the Social Protection Committee and will take effect from 2005. In 2006, Member States will feed into the preparation of the Joint Social Protection Report, setting out their strategy for reaching the common objectives; in 2007 and 2008, the reports submitted will focus on the progress made in implementing the strategies. After 2006, national reports will replace the NAPs on social inclusion and the National Strategy Reports on pensions.

Indicators

The big challenge for the new streamlined social protection process is to reflect progress in a transparent and effective way. Therefore, it is essential to establish an agreed set of common indicators. This requires a commitment from Member States to develop such key instruments as ESSPROSS (expenditure on the different branches of social protection), SILC (the annual Community-wide survey of the income and living conditions of households) and SHA (system of health accounts).

The period of 2003-2006 should be used to prepare the conditions for launching the new process. During this period, initiatives in the field of social inclusion, pensions and health care will be undertaken.

This communication also indicates the steps to be taken in the transition to streamlining in 2006 (Annex 1); outlines the implementation of streamlining during 2006-2009 (Annex 2); and shows how streamlined social protection will function alongside the streamlined BEPGs and EES in the period after 2006 (Annex 3).

Related Acts

Proposal for a Regulation of the European Parliament and of the Council on the European system of integrated social protection statistics (ESSPROS) [COM(2006) 11 – Not published in the Official Journal]
Codecision procedure (COD/2006/0004)

Council Conclusions of 20 October 2003 on open coordination for adequate and sustainable pensions [Official Journal C 260 of 29.10.2003] [PDF ]

Communication from the Commission. A concerted strategy for modernising social protection [COM(1999) 347 final – Not published in the Official Journal].

Pensions Committee

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Pensions Committee

Outline of the Community (European Union) legislation about Pensions Committee

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Employment and social policy > Social protection

Pensions Committee

Document or Iniciative

Commission Decision 2001/548/EC of 9 July 2001 on the setting-up of a committee in the area of supplementary pensions [See amending acts].

Summary

Following the approval of the Social Policy Agenda (2000-2005),which took up the question of the portability of occupational pension rights, the consultation begun by the Green Paper on supplementary pensions of 10 June 1997 and the communication ” Towards a single market for supplementary pensions “. The latter proposed setting up a single market for supplementary pensions. On 9 July 2001 the Commission set up an advisory committee in the area of supplementary pensions.

The Forum’s remit is to act as a consultative body for the Commission with regard to problems and developments at Community level affecting supplementary pensions. The Pensions Forum assists the Commission in particular in finding solutions to the problems and obstacles associated with cross-border mobility of workers in the area of supplementary pensions. In addition, where appropriate, and on the basis of a proposal from the Commission, the Forum’s technical work may contribute to the activities of other related bodies or committees dealing with social and economic policy.

The Committee has 55 members and is made up of experts from national administrations in the EU and in other countries of the European Economic Area (EEA), social partners represented at European level and bodies involved in the area of supplementary pensions. The Committee may also invite anyone with particular knowledge of a subject included on the agenda of a Committee meeting to attend as an expert.

The members of the Committee, who meet at Commission headquarters, are appointed by the Commission on the basis of nominations from the Member States’ governments, the other countries of the EEA, the social partners and the other bodies on the Committee. Committee members’ term of office is two years and may be renewed.

The work of the Forum on supplementary pensions has confirmed that insufficient portability of supplementary pensions may create significant obstacles to the mobility of workers and therefore to the free movement of persons within the EU. While coordination of social security schemes allows migrant workers to fully preserve their accrued statutory pension rights, measures to improve the portability of supplementary pensions are still in their early stages. The difficulty in this area lies in the variety of supplementary pension schemes available and in the fact that they are often voluntary.

References

Act	Entry into force – Date of expiry	Deadline for transposition in the Member States	Official Journal
Decision 2001/548/EC	9.7.2001	–	OJ L 196 of 20.7.2001

Amending act(s)	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 1792/2006	1.1.2007	–	OJ L 362 of 20.12.2006

Related Acts

Commission Communication of 12 September 2003 concerning the second stage of consultation of social partners on measures to improve the portability of occupational pension rights [SEC(2003)916- Not published in the Official Journal].
Following the first stage of consultation of social partners on the portability of occupational pension rights, and in accordance with Article 138(2) of the EC Treaty, the Commission decided to begin a second stage of consultation of European social partners on the possible content of a Community measure to improve the portability of occupational pension rights.

Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision [Official Journal L 235 of 23.09.2003].
The aim of this Directive is to guarantee the freedom to provide occupational pension services across Europe and the free movement of capital in this sector. The common framework and the cooperation mechanisms created by the Directive will allow for the mutual recognition of pension funds and will therefore greatly widen the scope for cross-border management of occupational pension schemes and cross-border membership.

Commission Communication of 27 May 2002 concerning the first stage consultation of social partners on measures to improve the portability of supplementary pension rights [SEC(2002) 597 – Not published in the Official Journal].
The social partners were asked to give their opinion on the need for and possible direction of a Community action on the portability of occupational pension rights. In particular, the Commission consulted them on the usefulness of Community action in this field and the form such action should take (collective agreement, recommendation, code of practice, etc.).

Communication from the Commission to the Council, the European Parliament and the Economic and Social Committee – The elimination of tax obstacles to the cross-border provision of occupational pensions [COM(2001) 214 final – Not published in the Official Journal].
In this communication, the Commission called on Member States to eliminate all national tax rules which, by creating discriminatory conditions for occupational pension institutions established in other EU countries, are in breach of the Treaty’s provisions on the free movement of workers and capital, and on the freedom to provide services in the area of supplementary pensions.

The Future Evolution of Social Protection from a Long-Term Point of View: Safe and Sustainable Pensions

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The Future Evolution of Social Protection from a Long-Term Point of View: Safe and Sustainable Pensions

Outline of the Community (European Union) legislation about The Future Evolution of Social Protection from a Long-Term Point of View: Safe and Sustainable Pensions

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social protection

The Future Evolution of Social Protection from a Long-Term Point of View: Safe and Sustainable Pensions

Last updated: 07.03.2005

Safe and sustainable pensions: supporting national strategies through a European approach

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Safe and sustainable pensions: supporting national strategies through a European approach

Outline of the Community (European Union) legislation about Safe and sustainable pensions: supporting national strategies through a European approach

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social protection

Safe and sustainable pensions: supporting national strategies through a European approach

Document or Iniciative

Communication from the Commission to the Council, the European Parliament and the Economic and Social Committee – Supporting national strategies for safe and sustainable pensions through an integrated approach [COM(2001) 362 final – Not published in the Official Journal].

Summary

The European Commission is proposing a whole series of common objectives to adapt pension systems to the main trends in society, namely population ageing, continued low fertility rates and increases in life expectancy.

In the light of these challenges, the Commission believes it necessary to use the open method of coordination (OMC) to set common objectives and translate them into national policy strategies. The OMC has a number of advantages, such as promoting exchanges of experience based on good practice.

Adequacy of pensions

Pension systems should take account of the risks of poverty and social exclusion among older people. They should ensure a decent standard of living during retirement and provide access for all individuals to appropriate pension arrangements.

Through the combination of the three pillars (statutory social security, occupational pension schemes and personal pension schemes), pension systems should offer each individual the opportunity to maintain, as far as reasonable, their standard of living after retirement or in the event of permanent incapacity.

Financial sustainability of public and private pension schemes

The Commission believes that Member States should pursue their efforts in the framework of the European employment strategy so as to strike an even balance between the number of active and retired persons. In the years to come, employment participation should rise, through longer labour market participation in particular, in order to guarantee the funding of pensions in an ageing society.

The Commission believes that the use of early retirement schemes should be limited and workers encouraged to stay in the labour market beyond the standard retirement age.

In addition, to ensure the sustainability of public finances, the Commission believes that public spending on pensions should be maintained at a level (in terms of percentage of GDP) that is compatible with the Stability and Growth Pact. Sound management of public finances and the reduction of public debt will considerably ease the constraints on public finances.

The Commission also believes that pension systems should be able to rely on the contribution of second and third pillar schemes (occupational and personal pension schemes). An appropriate regulatory framework at Member State and EU level is therefore needed.

Modernising pension systems

Pension systems fail to cater well for the needs of increasing numbers of people, considering in particular new family patterns, the changing roles of men and women in households and on the labour market, etc.

Pension systems should be modernised to take account of changes in society and to make sure that they cater well for the needs of a more mobile and flexible workforce. I.e., non-standard employment forms do not result in undue losses of pension entitlements and self-employment is not discouraged by pension systems.

Towards a comprehensive approach

Progress towards the objectives presented above should be measured using appropriate indicators. They should aim at providing comparable information on the major economic, financial and demographic trends affecting the sustainability of pensions. The list of commonly agreed indicators should make it possible to measure trends and policy developments.

The future of pension systems depends on policies in different areas including employment, public finances and social protection. As a result, comprehensive and integrated policy strategies are required that include these areas. It is also necessary to ensure that these policies are consistent and complementary.

Background

This communication is the Commission’s second policy paper on pension systems and follows on from the communication “The Future Evolution of Social Protection from a Long-Term Point of View: Safe and Sustainable Pensions”. The strategy it sets out is based on that adopted at the Stockholm European Council on 23 and 24 March 2001.

Related Acts

Green paper of 7 July 2010 towards adequate, sustainable and safe European pension systems [COM(2010) 365 final – Not published in the Official Journal].
In the context of the economic crisis which has disrupted the stability of public finances, it is now necessary more than ever to reform pension systems and increase employment rates in Europe. The green paper proposes ways to improve coordination of initiatives taken by EU countries, in the context of the Stockholm strategy and in accordance with the new Europe 2020 strategy. To this end, the Commission consults with interested parties on how the EU can:

increase social justice in pension systems, particularly concerning access to supplementary schemes, the crediting of periods of forced inactivity (unemployment, illness or family responsibilities), short-term contracts and atypical contracts. The EU can also contribute towards the sustainability of public finances, limiting spending, increasing economic growth and employment for older workers;
extend working lives while taking account of the specific features of occupations, labour market entry ages, workers’ health and the needs of older workers. It can also contribute to reducing inequality and differences in pay between men and women on the labour market;
promote cross-border activities and workers’ mobility, particularly by strengthening the internal market for pensions and exploiting the internal market to generate new sources of income for pensions;
increase legal certainty, accessibility and transparency of pension schemes and institutions, particularly for funded schemes, but also for the solvency of pension funds and occupational pension schemes in the event of insolvency of undertakings. Information for workers on the different pension products available should also be improved;
strengthen coordination between EU countries in the design and implementation of policies, particularly by creating common statistical tools.

Council Conclusionson “Sustainable social security systems achieving adequate pensions and social inclusion objectives”, Brussels, 7 June 2010.

Council Conclusions of 20 October 2003 on open coordination for adequate and sustainable pensions [OJ C 260 of 29.10.2003].

Joint report by the Commission and the Council of 6 March 2003 on adequate and sustainable pensions .

Joint report of the Social Protection Committee (SPC) and the Economic Policy Committee (EPC) of November 2001 on objectives and working methods in the area of pensions: applying the open method of coordination.

Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions – The future evolution of social protection from a long-term point of view: safe and sustainable pensions [COM(2000) 622 final – Not published in the Official Journal].

Social security schemes and free movement of persons: Basic Regulation

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Social security schemes and free movement of persons: Basic Regulation

Outline of the Community (European Union) legislation about Social security schemes and free movement of persons: Basic Regulation

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Employment and social policy > Social protection

Social security schemes and free movement of persons: Basic Regulation

This Regulation coordinates national social security legislation in order to protect the social security rights of persons moving within the European Union.

Document or Iniciative

Regulation (EEC) No 1408/71 of the Council of 14 June 1971 on the application of social security schemes to employed persons and their families moving within the Community [See amending acts].

Summary

This Regulation is accompanied by implementing Regulation (EEC) No 574/72, which covers the practical implementation (competent national authorities, administrative formalities, etc.).

Persons covered

The Regulation applies to workers (employed and self-employed) who are nationals of a Member State or third country, or stateless persons/refugees residing in the territory of a Member State to whom the legislation of one or several Member States applies, and to the members of their families and their survivors. It also applies to survivors of these workers irrespective of the nationality of the latter, provided the survivors are Community nationals, and to civil servants and persons treated as such in accordance with the legislation applicable.

The Regulation also applies to persons who are studying or undergoing vocational training and to the members of their families.

Equality of treatment

Persons residing in the territory of a Member State to whom the Regulation applies are subject to the same obligations and enjoy the same benefits under the legislation of a Member State as the nationals of that State.

Matters covered

The Regulation applies to all legislation relating to the social security branches concerning sickness and maternity benefits, invalidity benefits, old age benefits, survivors’ benefits, benefits in respect of accidents at work and occupational diseases, unemployment benefits, family benefits and death grants. It applies to general and special contributory and non-contributory social security schemes and to schemes concerning the liability of an employer or shipowner. It does not apply to medical or social assistance or to benefit schemes for war victims.

Waiving of residence clauses

Invalidity, old age or survivors’ cash benefits, pensions for accidents at work or occupational diseases and death grants under the legislation of one or more Member States may not be subject to any reduction, modification, suspension, withdrawal or confiscation by reason of the fact that the recipient resides in the territory of another Member State.

Provisions concerning reduction, suspension or withdrawal of benefit provided for in the legislation of a Member State in the case of overlapping with other social security benefits or other income may be invoked, even if the right to such benefits was acquired under the legislation of another Member State or such income arises in the territory of another Member State. However, this provision does not apply when the person concerned receives benefits of the same kind in respect of invalidity, old age, death (pensions) or occupational disease that are awarded by the institutions of two or more Member States, in conformity with the relevant Community provisions.

Determination of the legislation applicable

A worker is subject to the legislation of only one Member State.

General rules:

a person employed in the territory of a Member State is subject to the legislation of that State;
a person employed on board a vessel flying the flag of a Member State is subject to the legislation of that State;
civil servants are subject to the legislation of the Member State to which the administration employing them is subject;
a worker called up or recalled for service in the armed forces or for civilian service of a Member State retains the status of worker and is subject to the legislation of that State;
retired persons are subject to the laws of the Member State in which they reside.

Special rules and exceptions are provided for.

Special provisions applying to the different categories of benefits

In respect of invalidity, old age and death benefits (pensions), the interested parties enjoy, in principle, all the benefits acquired in the different Member States.

Within certain limits and subject to strict conditions, a wholly unemployed worker to whom the provisions of the legislation of a Member State for obtaining benefits apply and who moves to another Member State in search of employment retains the right to these benefits.

Employed persons subject to the legislation of a Member State are entitled to family benefits for the members of their families residing in the territory of another Member State provided for in the legislation of the first State, as if they resided on the territory of that State.

As regards sickness and maternity benefits, the Regulation makes it possible for European citizens to obtain health care while residing in a Member State other than that in which they are registered. However, this is possible only under certain conditions and in accordance with specific procedures. European citizens may obtain health care when they are staying abroad or if they choose to receive treatment in another Member State.

Administrative Commission on Social Security for Migrant Workers

The Administrative Commission on Social Security for Migrant Workers (known as the Administrative Commission or CA.SS.TM) is made up of a government representative of each Member State.

Its duties are to deal with all administrative questions and questions of interpretation arising from this Regulation and to foster and develop cooperation between Member States in social security matters by modernising procedures for information exchange.

In connection with the latter function, the Administrative Commission has introduced the European Health Insurance Card.

Advisory Committee on Social Security for Migrant Workers

The Advisory Committee is made up of representatives of governments, trade unions and employers’ organisations. It prepares opinions and proposals with a view to possible revision of the regulations and sends them to the Administrative Commission.

REFERENCES

Act	Entry into force – Date of expiry	Deadline for transposition in the Member States	Official Journal
Regulation (EEC) No 1408/71	01.10.1972	–	L 149 of 05.07.1971

Successive amendments and corrections to Regulation (EEC) No 1408/71 have been incorporated in the basic text. This consolidated version is for reference purposes only.

Related Acts

REPEALING OF REGULATION (EEC) No 1408/71

of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems [Official Journal L 166 of 30.04.2004].
The European Parliament and the Council have adopted this Regulation in order to simplify and clarify the Community rules on the coordination of Member States’ social security systems. It constitutes the new reference for such coordination and very much simplifies the lives of Community citizens, who can more easily exercise their right to free movement within the EU. Finally, it consolidates the cooperation obligations of administrations in the field of social security. It repeals Regulation (EEC) No 1408/71 from the date on which its implementing regulation comes into force (scheduled for the end of 2009). In addition, Regulation (EC) No 592/2008 of the Parliament and of the Council of 17 June 2008, on the implementation of these measures, amends the annexes to Regulation (EEC) No 1408/71 so as to take account of changes in national legislation.

However, Regulation (EEC) No 1408/71 remains in force and its legal effects remain valid for the purposes of the following acts:

Council Regulation (EC) No 859/2003 of 14 May 2003 for nationals of third countries who are not already covered by those provisions solely on the ground of their nationality;
Council Regulation (EEC) No 1661/85 of 13 June 1985 laying down the technical adaptations to the Community rules on social security for migrant workers with regard to Greenland;
the Agreement on the European Economic Area, the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons and other agreements containing a reference to Regulation (EEC) No 1408/71;
Council Directive 98/49/EC of 29 June 1998 on safeguarding the supplementary pension rights of employed and self-employed persons moving within the Community.

Regulation (EC) No 883/2004 also makes the electronic exchange of data between Member States’ institutions compulsory from the date on which the new implementing regulation comes into force. The secretariat of the Technical Commission (provided for by Regulation (EC) No 1290/97 of 27 June 1997, amending Regulation (EEC) No 1408/71 prepares electronic exchanges on the basis of a common European architecture using the XML (eXtended markup language) standard.

Social security schemes and freedom of movement of persons: implementing rules

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Social security schemes and freedom of movement of persons: implementing rules

Outline of the Community (European Union) legislation about Social security schemes and freedom of movement of persons: implementing rules

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Employment and social policy > Social protection

Social security schemes and freedom of movement of persons: implementing rules

This Council Regulation lays down practical rules for implementing Regulation (EEC) No 1408/71 on the coordination of social security schemes for persons moving within the Community.

Document or Iniciative

Council Regulation (EEC) No 574/72 of 21 March 1972 fixing the procedure for implementing Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons and their families moving within the Community [See amending acts].

Summary

The Regulation identifies the competent institutions in each Member State, the documents to be produced and the formalities to be completed in order to receive benefits. It sets out the procedures for administrative and medical checks and the reimbursement conditions for benefits provided by an institution in one Member State on behalf of an institution in another Member State. It also describes the functions of the Audit Board.

Repealing Regulation (EEC) No 574/72

Regulation (EC) No 883/2004 was adopted in order to simplify and clarify the coordination of Member States’ social security systems. This new reference framework will facilitate the free movement of European citizens within the Community territory. It strengthens the cooperation requirements of national administrations with regard to social security and makes electronic exchange of data between administrations obligatory.

Regulation (EEC) No 574/72 is repealed. However, some of the Regulation’s provisions remain in force in order to ensure the legal certainty of related Community acts and agreements.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EEC) No 574/72	01.10.1972	–	OJ L 74 of 27.03.1972

Amending act(s)	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EEC) No 2864/72	01.01.1973	–	OJ L 306 of 31.12.1972
Regulation (EEC) No 1392/74	08.06.1974	–	OJ L 152 of 08.06.1974
Regulation (EEC) No 1209/76	26.05.1976	–	OJ L 138 of 26.05.1976
Regulation (EEC) No 2595/77	26.11.1977	–	OJ L 302 of 26.11.1977
Regulation (EEC) No 1390/81	01.12.1981	–	OJ L 143 of 29.05.1981
Regulation (EEC) No 2793/81	29.09.1981	–	OJ L 275 of 29.09.1981
Regulation (EEC) No 2001/83	22.08.1983	–	OJ L 230 of 22.08.1983
Regulation (EEC) No 1660/85	20.06.1985	–	OJ L 160 of 20.06.1985
Regulation (EEC) No 1305/89	16.05.1986	–	OJ L 131 of 13.05.1989
Regulation (EEC) No 2332/89	02.08.1989	–	OJ L 224 of 02.08.1989
Regulation (EEC) No 3427/89	16.11.1989	–	OJ L 331 of 16.11.1989
Regulation (EEC) No 2195/91	29.07.1991	–	OJ L 206 of 29.07.1991
Regulation (EEC) No 1247/92	01.06.1992	–	OJ L 136 of 19.05.1992
Regulation (EEC) No 1945/93	01.08.1993	–	OJ L 181 of 23.07.1993
Regulation (EC) No 3095/95	01.01.1996	–	OJ L 335 of 30.12.1995
Regulation (EC) No 1290/97	04.10.1997 (Article 3.1 no later than 01.01.1999)	–	OJ L 176 of 04.07.1997
Regulation (EC) No 1223/98	01.07.1998	–	OJ L 168 of 13.06.1998
Regulation (EC) No 1606/98	25.10.1998	–	OJ L 209 of 25.07.1998
Regulation (EC) No 307/1999	01.05.1999	–	OJ L 38 of 12.02.1999
Regulation (EC) No 1399/1999	01.09.1999	–	OJ L 164 of 30.06.1999
Regulation (EC) No 89/2001	07.02.2001	–	OJ L 14 of 18.01.2001
Regulation (EC) No 1386/2001	01.09.2001	–	OJ L 187 of 10.07.2001
Regulation (EC) No 410/2002	25.03.2002	–	OJ L 62 of 05.03.2002
Regulation (EC) No 859/2003	01.06.2003	–	OJ L 124 of 20.05.2003
Regulation (EC) No 1851/2003	11.11.2003	–	OJ L 271 of 22.10.2003
Regulation (EC) No 631/2004	01.06.2004	–	OJ L 100 of 06.04.2004
Regulation (EC) No 883/2004 Repeals Regulation No 574/72	20.05.2004	–	OJ L 166 of 30.04.2004
Regulation (EC) No 77/2005	09.02.2005	–	OJ L 16 of 20.01.2005
Regulation (EC) No 647/2005	05.05.2005	–	OJ L 117 of 04.05.2005
Regulation (EC) No 207/2006	28.02.2006	–	OJ L 36 of 08.02.2006
Regulation (EC) No 629/2006	28.04.2006	–	OJ L 114 of 27.04.2006
Regulation (EC) No 1791/2006	20.11.2006	–	OJ L 363 of 20.12.2006
Regulation (EC) No 311/2007	12.4.2007	–	OJ L 82 of 23.3.2007
Regulation (EC) No 101/2008	25.2.2008	–	OJ L 31 of 5.2.2008
Regulation (EC) No 120/2009	2.3.2009		OJ L 39 of 10.2.2009

MISSOC – Mutual information system on social protection

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MISSOC – Mutual information system on social protection

Outline of the Community (European Union) legislation about MISSOC – Mutual information system on social protection

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social protection

MISSOC – Mutual information system on social protection

Document or Iniciative

MISSOC programme: Mutual information system on social protection, launched in March 1990.

Summary

MISSOC (the Mutual Information System on SOCial protection) was established in 1990 and has become a prime source of information on the status of social protection in Europe. MISSOC now covers all 25 Member States of the European Union (EU), the three other States of the European Economic Area — Iceland, Liechtenstein and Norway — since 2000, and Switzerland since 2002.

The MISSOC programme depends on close co-operation between the European Commission’s Directorate-General for Employment and Social Affairs and a network of representatives of the participating States. A secretariat appointed by the DG Employment and Social Affairs is responsible for coordinating the network, arranging meetings, collecting information, managing the IT system and preparing and distributing the publications.

Each participating State is represented by one or two correspondents in national ministries or institutions responsible for social protection, who supply the information and make sure that what is published is accurate. The MISSOC network meets twice a year (May and October) in the Member State holding the Presidency of the Council of the European Union.

Work carried out

MISSOC is based on information supplied by the ministries and authorities responsible for social protection. It produces regularly updated comparative tables covering all areas of social protection and MISSOC info bulletins on specific topics such as people with disabilities, health care, the elderly and the main changes in the social protection systems.

Information on social protection legislation in the Central and Eastern European countries was compiled in the MISSOC II project. The aim was to obtain information in a manner consistent with the MISSOC Tables.

A concerted strategy for modernising social protection

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A concerted strategy for modernising social protection

Outline of the Community (European Union) legislation about A concerted strategy for modernising social protection

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social protection

A concerted strategy for modernising social protection

Document or Iniciative

Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions. A concerted strategy for modernising social protection [COM(1999) 347 final – Not published in the Official Journal].

Summary

Social protection systems provide people with income in times of need and allow them to accept and embrace economic and social change. In this way they promote both social cohesion and economic dynamism.

Expenditure on social protection accounts for 28.5% of Community GDP, the bulk of which (63%) is spent on pensions and health care. Its role in the redistribution of income is immense: in the absence of social transfer payments almost 40% of households would live in relative poverty, a figure which is reduced through tax and benefit systems to 17%.

The social protection systems face a series of significant common challenges – for example, the need to adapt to the changing world of work, new family structures and the dramatic demographic changes of the forthcoming decades. In response to these challenges, a joint reflection has been underway at EU level, based on three documents:

the Council Recommendation 92/442/EEC of 27 July 1992 on the convergence of social protection objectives and policies;
the Communication from the Commission of 31 October 1995 on the future of social protection: a framework for a European debate;
the Communication from the Commission of 12 March 1997 on modernising and improving social protection in the European Union.

Besides, the Dutch, Luxembourg, UK and Austrian Presidencies have all organised important conferences focusing on different aspects of the issue. Finally, the European institutions and civil society have come out in favour of reform, in order to maintain and strengthen social protection.

It has been generally recognised that strong social protection systems are an integral part of the European social model. Social protection provides not only safety nets for those in poverty; it can also facilitate adaptability in the labour market and can thus contribute to improving economic performance. Hence, social protection is a productive factor.

We have also seen a number of important changes in the EU, notably:

the completion of the single market and the establishment of a single currency;
the ratification of the Treaty of Amsterdam, in particular the new employment title and the new legal base for the fight against social exclusion;
enlargement with the countries of eastern and central Europe, Malta and Cyprus.

In March 1999 the European Parliament invited the Commission to launch a process for the concerted approximation of objectives and policies in the social policy field, on the basis of the European employment strategy. In this communication the Commission proposes a concerted strategy for modernising social protection. This strategy is based on an exchange of experiences, the political debates, and the follow-up of the current policy with a view to identifying best practices. The Commission calls on the Member States to achieve the following objectives:

Make work pay and provide secure income

The characteristics of today’s labour market are very different from those which obtained when the Member States established their social protection systems (high overall unemployment; a high share of young, female and long-term unemployed; career breaks; changing household patterns; the emergence of new working arrangements etc.). Hence, the social protection systems must now offer workers and jobseekers active help, in particular by promoting employability and adaptability, and must create strong incentives to work and to make work pay:

tax systems must make work more advantageous for jobseekers;
social protection systems must reflect and respond to the emergence of new working arrangements (temporary and part-time contracts, self-employment);
social protection systems must provide the necessary income bridge and the active help necessary to prevent a temporary gap between jobs from sliding into long-term unemployment;
social protection should contribute to reconciling work and family life;
the financing of social protection must take account of the need to provide systems with resources adequate to attain their objectives, the need to avoid a negative impact on employment and the need for budgetary discipline.

Make pensions safe and pension systems sustainable

The fundamental objective is to provide people with a securely funded and adequate pension. This may involve finding an appropriate balance between funded and pay-as-you-go systems. Hence, the Commission emphasises:

the need to anticipate the impact of demographic ageing on social protection systems;
the design and reform of pension systems should discourage early withdrawal from the labour market, encourage flexibility in retirement arrangements and promote active participation by older people in the light of the Community;
the need to combat poverty among older women, resulting from their low participation in employment combined with changes in household structures;
the need to promote active ageing.

Promote social integration

Social protection has a key role to play, in conjunction with other policy instruments, in combating social exclusion and promoting social inclusion. Social protection systems should:

ensure effective safety nets, consisting of minimum income benefits and accompanying provisions;
focus on prevention, fostering active rather than passive measures and providing incentives and pathways to (re)integration into the labour market and society;
contribute to a comprehensive and integrated approach to fighting social exclusion, including all relevant policies and players.

Ensure high quality and sustainability of health care

Every one should be in a position to benefit from systems to promote health care. However, demand on health systems is increasing and will continue to do so because of demographic ageing. Constant innovation in medical technology can bring great benefits but also increases costs. Hence, it is important to:

contribute to improving the effectiveness and efficiency of the health systems within available resources;
ensure that all can have access to high quality health services and reduce health inequalities;
strengthen support for long-term care of frail elderly people;
focus on illness prevention and health protection as the best way to tackle health problems, reduce costs and promote healthier life.

Promote closer cooperation

The Commission wants the Council to decide on a framework for closer cooperation based on the exchange of experience, mutual concertation and evaluation of ongoing developments with a view to identifying best practices.

Each Member State is also invited to designate a high level senior official to act as focal point for exchange and information gathering activities. The Commission will regularly organise meetings of these officials to analyse and evaluate the progress made.

Monitoring and implementation of the strategy

To assist Member States in this process and to monitor ongoing policy developments, the Commission will in future publish its report on social protection on an annual instead of a biennial basis. This report will be drawn up in close consultation with the Member States and will reflect the broad objectives the Council is invited to adopt in the context of the concerted strategy. It will be based on contributions from Member States and will highlight key policy developments. The Commission will invite the Council to examine the annual report on social protection in conjunction with the joint report on employment.

The Commission invites the other Community institutions, notably the European Parliament, the Economic and Social Committee and the Committee of the Regions, as well as the social partners, the non-governmental organisations and the social security institutions to contribute to this process.

More recently, the EU began to promote closer cooperation between the Member States on modernisation of the social protection systems. This cooperation is achieved by:

strengthening the open method of coordination, which was developed in the fields of social inclusion and pensions in particular;
the creation of the Social Protection Committee in 2004, responsible for promoting cooperation in social protection policies between the Member States and the Commission;
ensuring good coordination of national social security systems, modernisation appropriate to Europeans moving within the Community and subject to different social protection systems.

This modernisation has also been launched in the fields of health care and long term care and in response to the question ” making work pay ” which aims to promote employability and ensure a high level of social protection for all. MISSOC (the mutual information system on social protection) has also become a key source of information on the state of social protection in Europe. Thanks to the updating of the comparative tables and specific information bulletins, the modernisation of social protection continues to be developed.

Related Acts

Commission Report (2004). Social situation in the European Union [Not published in the Official Journal] [ ]

Commission Report (2003). Social situation in the European Union [Not published in the Official Journal] [ ]

Commission Report (2002). Social situation in the European Union [Not published in the Official Journal] [ ]

Commission Report (2001). Social situation in the European Union [Not published in the Official Journal] [ ]

Commission Report (2000). Social situation in the European Union [Not published in the Official Journal] [ ]

A new framework for the open coordination of social protection and inclusion policies

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A new framework for the open coordination of social protection and inclusion policies

Outline of the Community (European Union) legislation about A new framework for the open coordination of social protection and inclusion policies

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social protection

A new framework for the open coordination of social protection and inclusion policies

The aim of this communication is to put in place an enhanced open method of coordination (OMC) for policies geared to providing social protection and combating poverty. This strengthened OMC will be more visible and will focus more on policy implementation, tying in more closely with the revised Lisbon Strategy. It will simplify the reporting process and will increase the opportunities for exchanging ideas between the Member States on the policy to be conducted.

Document or Iniciative

Communication from the Commission of 22 December 2005 “A new framework for the open coordination of social protection and inclusion policies” [COM(2005) 706 – Not published in the Official Journal].

Summary

EVALUATION OF WORK DONE UNDER THE OMC

Before making its proposals, the Commission asked the Member States, the social partners, NGOs and social protection institutions to complete a questionnaire on the OMC and its working methods.

The parties concerned believe that the OMC is worthwhile and that it has a positive impact on policy making. They are in favour of a more streamlined process in tandem with simplified reporting.

Streamlining should:

bring together the three strands of work, while allowing the specific features which are important to each of them to develop further. New integrated common objectives should not reduce the scope for in-depth focus on each area of operation;
support more learning and integrate it more effectively with the work of reporting and evaluation;
foster good interaction with the revised Lisbon Strategy and the re-launched Sustainable Development Strategy;
promote the practice of involving stakeholders who have made the most headway in the relevant field.

NEW COMMON OBJECTIVES FOR THE STRENGTHENED OMC

These new objectives are based on the existing objectives set out in Nice as regards inclusion and in Laeken as regards pensions.

General objectives

Promote social cohesion and equal opportunities for all through adequate, accessible, financially sustainable, adaptable and efficient social protection systems and social inclusion policies;
Interact closely with the Lisbon objectives for achieving greater economic growth and more and better jobs, as well as with the Union’s Sustainable Development Strategy;
Improve governance, transparency and the involvement of stakeholders in the design, implementation and monitoring of policy.

Objectives applying to the different fields of operation

Making a decisive impact on the eradication of poverty and social exclusion

– Ensure the active inclusion of all by promoting participation in the labour market and by fighting poverty and exclusion among the most marginalised groups;
– Combat all forms of discrimination which lead to exclusion;
– Incorporate the fight against poverty and social exclusion into all relevant public policies, including economic and budgetary policies, and the Structural Fund programmes (especially the ESF).

Providing adequate and sustainable pensions

– Guarantee an adequate retirement income for all and access to pensions which allow people to maintain, to a reasonable degree, their living standard after retirement;
– Ensure the financial sustainability of public and private pension schemes, particularly by supporting a longer working life and active ageing, guaranteeing an appropriate and fair balance between contributions and benefits, and maintaining the security of funded and private schemes;
– Ensure that pension schemes are transparent and that people receive the information they need to prepare for retirement.

Ensuring accessible, high-quality and sustainable health care and long-term care

– Guarantee access for all to adequate health and long-term care, and ensure that the need for care does not lead to poverty and financial dependency;
– Promote quality of care and rational use of resources.

PROCEDURES AND WORKING ARRANGEMENTS FOR A STRENGTHENED OMC

Evaluation and reporting

The new common objectives will provide a basis for drawing up national social protection and inclusion strategies, entailing:

a common section assessing the social situation and presenting the overall strategic approach for modernising social protection and social inclusion policies;
three thematic plans covering social inclusion, pensions and health care. These plans should be forward-looking, with prioritised national objectives translating the common objectives into national plans.

The Commission will draw up a joint report (for adoption by itself and by the Council) on social protection and social inclusion, which will take stock of the progress made by the Member States and review the main trends.

Timetable for reporting and evaluation

The national strategies would normally cover a forward-looking period of three years. As regards the new Lisbon timetable, the first reports ought to be submitted in September 2006. The Member States will not be required to present national strategies in the intermediate (“light”) years. They may, if they wish, report on any new initiatives or on progress with their actions.

Supporting more mutual learning

Exchanges of practice and mutual learning should be given more prominence and be better integrated with reporting and evaluation. The planned PROGRESS budget line will provide assistance for conducting such exchanges across the whole OMC spectrum.

Stakeholder involvement and governance

The strengthened OMC should redouble the focus on promoting good governance, transparency and stakeholder involvement:

For inclusion: promoting participation in decision-making, ensuring policy coordination between branches and levels of government;
For pensions: making pension systems understandable and giving people the information they need to prepare for retirement;
For health: establishing good coordination between the different elements of the system and giving good information to citizens.

Enhancing visibility

Improving the visibility of the OMC would contribute positively to the policy debates in the Member States. The planned lighter rhythm of reporting and evaluation may provide an opportunity to place greater emphasis on publicising the OMC through national seminars open to all.

Background

In so far as social protection and social inclusion policies are not incorporated into Community law, the mechanism introduced by the Lisbon European Council in March 2000 within the Union is called the open method of coordination (OMC). It allows the definition of common objectives and the comparison of good practices between Member States in three areas: social inclusion (since 2000), pension and retirement systems (since 2001) and the future of the health and long-term care sector (since 2004). Specifically, the OMC involves the setting of common general objectives, the drawing-up of national action plans and reports outlining the policies the Member States intend to conduct for achieving the common objectives, and the assessment of these plans and strategies in other joint reports by the Commission and the Council.

With a view to achieving more effective social policy coordination and better alignment with the Lisbon Strategy (particularly with the broad economic policy guidelines and the European employment strategy), a decision was taken in 2003 to streamline the OMC (see Commission Communication of May 2003 on the streamlining of coordination in the field of social protection).

Continuing with the streamlining effort, the present Communication proposes a new set of common objectives for the three strands of the OMC along with the application of new procedures from 2006 onwards. The strengthened OMC should operate in parallel and in close interaction with the revised Lisbon Strategy, contributing to the growth and employment objectives at the same time as the Lisbon-related programmes contribute to the social cohesion objectives.

Related Acts

Communication from the Commission, of 20 April 2004, modernising social protection for the development of high-quality, accessible and sustainable health care and long-term care: support for the national strategies using the “open method of coordination” [COM(2004) 304 final – Not published in the Official Journal].

Communication from the Commission, of 27 May 2003, strengthening the social dimension of the Lisbon Strategy: streamlining open coordination in the field of social protection [COM(2003) 261 final – Official Journal L 314 of 13.10.2004].

Communication from the Commission, supporting national strategies for safe and sustainable pensions through an integrated approach [COM(2001) 362 final – Not published in the Official Journal].

Another Normative about A new framework for the open coordination of social protection and inclusion policies

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic

Employment and social policy > Social inclusion and the fight against poverty

A new framework for the open coordination of social protection and inclusion policies

Document or Iniciative

Summary

EVALUATION OF WORK DONE UNDER THE OMC

Before making its proposals, the Commission asked the Member States, the social partners, NGOs and social protection institutions to complete a questionnaire on the OMC and its working methods.

The parties concerned believe that the OMC is worthwhile and that it has a positive impact on policy making. They are in favour of a more streamlined process in tandem with simplified reporting.

Streamlining should:

bring together the three strands of work, while allowing the specific features which are important to each of them to develop further. New integrated common objectives should not reduce the scope for in-depth focus on each area of operation;
support more learning and integrate it more effectively with the work of reporting and evaluation;
foster good interaction with the revised Lisbon Strategy and the re-launched Sustainable Development Strategy;
promote the practice of involving stakeholders who have made the most headway in the relevant field.

NEW COMMON OBJECTIVES FOR THE STRENGTHENED OMC

These new objectives are based on the existing objectives set out in Nice as regards inclusion and in Laeken as regards pensions.

General objectives

Promote social cohesion and equal opportunities for all through adequate, accessible, financially sustainable, adaptable and efficient social protection systems and social inclusion policies;
Interact closely with the Lisbon objectives for achieving greater economic growth and more and better jobs, as well as with the Union’s Sustainable Development Strategy;
Improve governance, transparency and the involvement of stakeholders in the design, implementation and monitoring of policy.

Objectives applying to the different fields of operation

Making a decisive impact on the eradication of poverty and social exclusion

Providing adequate and sustainable pensions

Ensuring accessible, high-quality and sustainable health care and long-term care

PROCEDURES AND WORKING ARRANGEMENTS FOR A STRENGTHENED OMC

Evaluation and reporting

The new common objectives will provide a basis for drawing up national social protection and inclusion strategies, entailing:

a common section assessing the social situation and presenting the overall strategic approach for modernising social protection and social inclusion policies;
three thematic plans covering social inclusion, pensions and health care. These plans should be forward-looking, with prioritised national objectives translating the common objectives into national plans.

Timetable for reporting and evaluation

Supporting more mutual learning

Stakeholder involvement and governance

The strengthened OMC should redouble the focus on promoting good governance, transparency and stakeholder involvement:

For inclusion: promoting participation in decision-making, ensuring policy coordination between branches and levels of government;
For pensions: making pension systems understandable and giving people the information they need to prepare for retirement;
For health: establishing good coordination between the different elements of the system and giving good information to citizens.

Enhancing visibility

Background

Related Acts

Communication from the Commission, supporting national strategies for safe and sustainable pensions through an integrated approach [COM(2001) 362 final – Not published in the Official Journal].