2010 - Farewell to Reg (EC) 1408/71 –its impact on social security in Malta

Farewell to Reg (EC) 1408/71 –Farewell to Reg (EC) 1408/71 –its impact on social security in its impact on social security in

MaltaMalta

by Mark Musu’by Mark Musu’DirectorDirector

(Strategic Development & International (Strategic Development & International Relations)Relations)


MaltaMaltaIn the next 30 minutes:In the next 30 minutes:

• Brief historical review pre and post Brief historical review pre and post EU accessionEU accession

• The situation today as we start to The situation today as we start to implement the new regulationsimplement the new regulations

• Future challenges and Future challenges and commitmentscommitments


MaltaMaltaBrief historical review pre-Brief historical review pre-

accessionaccession

19561956

• First agreement signed with the UKFirst agreement signed with the UK

– Covered Retirement and Widows PensionsCovered Retirement and Widows Pensions– Short-term benefits: sickness, Short-term benefits: sickness,

unemployment and occupational injuryunemployment and occupational injury


MaltaMalta19561956

• First agreement signed with the UKFirst agreement signed with the UK

– Agreement reviewed in 1996Agreement reviewed in 1996- Invalidity Pensions and posting of workers Invalidity Pensions and posting of workers

were now covered as wellwere now covered as well

- Introduced technical changes in the way Introduced technical changes in the way pensions are assessedpensions are assessed


MaltaMalta19901990

• Agreement signed with Libya (replaced an Agreement signed with Libya (replaced an earlier one signed in 1972)earlier one signed in 1972)

– Very different in nature to all agreements Malta Very different in nature to all agreements Malta hashas

– Does not cover entitlement to or payment of Does not cover entitlement to or payment of benefitsbenefits

– Covers only payment of contributions of Maltese Covers only payment of contributions of Maltese persons working in Libya (Maltese persons persons working in Libya (Maltese persons working in Libya pay contributions only in Malta)working in Libya pay contributions only in Malta)


MaltaMalta19911991

• Agreement signed with AustraliaAgreement signed with Australia

– Covers only Retirement, Invalidity, and Widow Covers only Retirement, Invalidity, and Widow PensionsPensions

– Does not cover short-term benefits and posting Does not cover short-term benefits and posting of workersof workers

– Reviewed in 2004: no major changes for MaltaReviewed in 2004: no major changes for Malta


MaltaMalta19921992

• Agreement signed with CanadaAgreement signed with Canada

– Covers Retirement, Invalidity, and Covers Retirement, Invalidity, and Widow PensionsWidow Pensions

– Covers also posting of workersCovers also posting of workers– Does not cover short-term benefitsDoes not cover short-term benefits


MaltaMalta20032003

• Agreement signed with the NetherlandsAgreement signed with the Netherlands

– Very comprehensive compared to previous Very comprehensive compared to previous agreementsagreements

– Covers Retirement, Invalidity, and Widow Covers Retirement, Invalidity, and Widow PensionsPensions

– Covers also short-term benefits: sickness and Covers also short-term benefits: sickness and unemployment, maternity benefits, children unemployment, maternity benefits, children allowance and posting of workersallowance and posting of workers


MaltaMaltaBrief historical review post-accessionBrief historical review post-accession

20042004• An International Relations Unit (IRU) was An International Relations Unit (IRU) was

set up within the Department of Social set up within the Department of Social Security (DSS)Security (DSS)

– Coordination of Council Regulations (EC) Coordination of Council Regulations (EC) 1408/71 and (EC) 574/72 (fully implemented in 1408/71 and (EC) 574/72 (fully implemented in 2004 with EU accession)2004 with EU accession)

– To provide advice on EU & international social To provide advice on EU & international social security issuessecurity issues


MaltaMalta20052005

• Expansion of the IRU within DSSExpansion of the IRU within DSS– Full coordination of Regulations (EC) 1408/71 Full coordination of Regulations (EC) 1408/71

and (EC) 574/72 and bilateral agreements and (EC) 574/72 and bilateral agreements (including operational duties)(including operational duties)

– Dealing with all EU & international social Dealing with all EU & international social security related issues and queriessecurity related issues and queries

– All work related to international relations in All work related to international relations in DSS finally centralizedDSS finally centralized


MaltaMalta20052005

• Expansion of the IRU within DSSExpansion of the IRU within DSS

– EU funded Twinning Project with UK to enhance EU funded Twinning Project with UK to enhance our capacity buildingour capacity building

– Developed an IT system for the generation of Developed an IT system for the generation of E-FormsE-Forms

– Information campaign across the island re new Information campaign across the island re new social security rights in EUsocial security rights in EU

– Started to face new issues – especially cross-Started to face new issues – especially cross-border insurability issues – transport workers, border insurability issues – transport workers, mariners, airline personnelmariners, airline personnel


MaltaMaltaThe situation todayThe situation today

• The focus of our business operations in The focus of our business operations in international relations has gradually international relations has gradually shifted from pensions to other branches of shifted from pensions to other branches of social security – mainly insurability of non-social security – mainly insurability of non-Maltese workers, unemployment and Maltese workers, unemployment and sickness (benefits in kind under the sickness (benefits in kind under the responsibility of the Health Department)responsibility of the Health Department)


MaltaMaltaSome statsSome stats

Incoming Pension Claims (2006-2009)Incoming Pension Claims (2006-2009)

UK = 337 (11.7%)UK = 337 (11.7%)Rest of EU = 272 (9.5%)Rest of EU = 272 (9.5%)Non-EU = 2268 (78.8%)Non-EU = 2268 (78.8%)

Incoming pension claims from EU MSIncoming pension claims from EU MSto Malta almost doubled!to Malta almost doubled!



Outgoing Pension Claims (2006-2009)Outgoing Pension Claims (2006-2009)

UK = 276 (15.8%)UK = 276 (15.8%)Rest of EU = 158 (9.1%)Rest of EU = 158 (9.1%)Non-EU = 1311 (75.1%)Non-EU = 1311 (75.1%)

Outgoing pension claims from Malta to EU MS Outgoing pension claims from Malta to EU MS increased by more than a third!increased by more than a third!



Posted workers – Incoming E101sPosted workers – Incoming E101s

2006 = 762006 = 76 2008 = 662008 = 66 2007 = 972007 = 97 2009 = 160 2009 = 160

• Sharp increase registered in 2009Sharp increase registered in 2009– 142% over 2008142% over 2008– Double the average of previous 3 yearsDouble the average of previous 3 years



Posted workers – Outgoing E101sPosted workers – Outgoing E101s

2006 = 143 2006 = 143 2008 = 1612008 = 161 2007 = 1182007 = 118 2009 = 114 2009 = 114

• Drop registered in 2009Drop registered in 2009– 29% over 200829% over 2008– 10% of average of previous 3 years10% of average of previous 3 years



Posted workers – E101sPosted workers – E101s Incoming Incoming - Outgoing - Outgoing

2006-08 = 239 2006-08 = 4222006-08 = 239 2006-08 = 422 2009 = 160 2009 = 1142009 = 160 2009 = 114

• Situation reversed in 2009Situation reversed in 2009– Outgoing E101s consistently higher from 2006-2008 – Outgoing E101s consistently higher from 2006-2008 –

76% higher76% higher– In 2009, incoming E101s were higher by 40%In 2009, incoming E101s were higher by 40%



Incoming UB claims – Art.69Incoming UB claims – Art.69

2004 = 112004 = 11 2007 = 272007 = 272005 = 272005 = 27 2008 = 252008 = 252006 = 162006 = 16 2009 = 442009 = 44

• Incoming UB claims gradually increasingIncoming UB claims gradually increasing• In 2009 incoming UB claims were almost double the In 2009 incoming UB claims were almost double the

average of the last 6 years – effect of the recession?average of the last 6 years – effect of the recession?• Of all EU citizens who exported their UB to Malta from Of all EU citizens who exported their UB to Malta from

2006-2009, 28.6% managed to find employment in Malta - 2006-2009, 28.6% managed to find employment in Malta - but ‘only’ 15.9% in 2009!but ‘only’ 15.9% in 2009!


MaltaMaltaFuture challenges and commitments –Future challenges and commitments –

EU Regs and otherEU Regs and other

• Regs 883/04 and 987/09 – new obligations and Regs 883/04 and 987/09 – new obligations and requirementsrequirements

• Electronic Data Exchanges by May 2012Electronic Data Exchanges by May 2012• Transfer of pension rights (of Maltese citizens Transfer of pension rights (of Maltese citizens

working in EU institutions)working in EU institutions)• Constantly monitor and research international Constantly monitor and research international

policy developments, especially in the EU - Social policy developments, especially in the EU - Social Agenda, Lisbon Strategy, Social Inclusion policiesAgenda, Lisbon Strategy, Social Inclusion policies


MaltaMaltaFuture challenges and commitments –Future challenges and commitments –

EU Regs and otherEU 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


MaltaMaltaHow can Malta (DSS) do all this?!How can Malta (DSS) do all this?!

• Malta is a small country (the smallest in the EU) Malta is a small country (the smallest in the EU) but its legal and administrative obligations are but its legal and administrative obligations are the same as those of the larger EU Member the same as those of the larger EU Member StatesStates

• The DSS/IRU requires huge & urgent investments The DSS/IRU requires huge & urgent investments in its HR (in specialized areas such as policy in its HR (in specialized areas such as policy research and legal analysis)research and legal analysis)

• DSS needs to invest more in its IT capabilities to DSS needs to invest more in its IT capabilities to be able to cope with its future challengesbe able to cope with its future challenges


MaltaMalta

THANK YOU FOR YOUR THANK YOU FOR YOUR ATTENTION!ATTENTION!

2010 - Farewell to Reg (EC) 1408/71 –its impact on social security in Malta

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Transcript of 2010 - Farewell to Reg (EC) 1408/71 –its impact on social security in Malta