1. The new EU Social Security
Regulations – preparations,
anticipated issues and risks
The views of a micro-state
Joe Camilleri – Director General (Social Security)
May, 2010

2. What shall we talk about
today?
 outline the main reasons for the
need of new regulations;
 look into the preparations;
 expected issues;
 risks.

3. 1. The need and ethos of the
New Regulations

4. The aim of the Regulations
• To simplify
• To modernise
• To consolidate
• To clarify
• To incorporate ECJ case law
• To enhance administrative co-operation
• To increase flexibility
• To Improve protection of citizen’s rights
NOT to introduce any extensive new rights

5. The principal areas of change
• Personal scope
• Legislation Applicable
• Material
– Sickness
– Pensions
– Unemployment Benefits
– Family Benefits
• New measures for debt recovery

6. Transition from 1408/71 to 883/2004 -
How will it work?
JULY MAY DECEMBER MARCH
2009 2010 2010 2012
………………………………….
………………………………….
TRANSITIONAL PERIOD
TRAINING,
INFORMATION PERIOD
Implementing Regulations
Regulation adopted become applicable
EESSI Starts to function

7. The Maltese Islands
Demographics and macroeconomics
Nominal GDP (€ million) 5,702.6
GDP per capita (€) 13,832
Population 412,227
Labour force (thousands) 173,388
Employment rate (%) 55.1
Unemployment rate (%) 6.9
Social Security expenditure 29% of
GDP
Data for 2008 or latest available.
Sources: Economic Survey November 2009/National Statistics Office

8. Administration of co-ordination in
Malta
For Social Security
• International Relations Unit with only a
handful of officials;
• Front office workers at district office level;
For Health (in-kind benefits)
• The entitlement unit of the Health Division

9. Peculiarities of being small
• its easier with respect to preparations;
• it is easier to obtain information in an informal
environment (all involved know each other on a
personal basis);
• it’s a problem if you lose one of your people –
since in essence you may be losing a
substantial part of your knowledge on the
subject
• it is more difficult to build experience since a
specific case may not be encountered for a long
time if ever

10. Preparations - Training
Training of staff within DSS;
– Attendance to thematic seminars
– In-house training before coming into force
– Sub-contract of expert from UK to help in
meeting the requirements of our obligations
Training and information sharing with other
relevant entities officials to explain the new
Regulations;

11. Preparations – Info-campaign
Info campaign;
• Drawing up of information for website;
• introducing leaflets;
• Meetings with employers/accountants &
auditor firms to explain the new procedures
and the Regulations
• Distribution of EU Commission’s booklet of
“The EU provisions on social security”;
• Spots on tv and radio programmes to explain
the new Regulations

12. Preparations – Electronic exchange
• Internal analysis of the best option;
• Establishing a project management
team to steer the project forward;
• Decide on best way forward with
regards to local IT set-up

13. Expected Issues
• Reg 883/2004 has not addressed all
substantive issues;
• No agreement on what certain provisions of
883/2004 mean;
• Introduction of electronic exchanges – can it
be achieved?
• Implementation of some new provisions
more complex than anticipated, e.g.
legislations applicable, health, UB and debt
recovery;
• Agreement on transitional provisions;
• ECJ judgements – are the principles
compatible/ well-explained?

14. Expected Issues - administration
Real problems of implementation
• Somewhat surprise and concerns of
staff regarding the SEDs;
• Should we continue to use our
electronic e-form system OR should we
use the SEDs?
• What is the impact of different methods
of information exchange on a small
organisation such as the DSS?
• Are there added administrative
burdens? – it seems so!

15. Expected Issues - administration
The new Regulations capture principles
which emerge from case-law;
• These principles are to some extent
still vague or unclear;
• In certain instances there is no
consensus on these principles and
hence this can also create uncertainty;
• What about the guidelines which still
need to be clarified in certain areas –
(eg for us on the issue of International
Transport Workers);

16. Expected Issues – electronic
exchange
EESSI
• Should we continue to use our
electronic e-form system OR
should we use the SEDs?
• What is the impact of different
methods of information exchange
on a small organisation such as
the DSS?
• Can we justify funding for a new
system?

17. Expected Issues – enhanced
cooperation
• Issues here as still not clear – for
example in Article 87 (8) of BR we
have reference to “a relevant
change in a situation” – what is a
relevant change?
• Who will decide it is a relevant
change and how?
• Re-write of the guidelines for
interpretation – but there again we
need more in-depth discussions

18. Risks
• Regulations do not comprehensively cover
emerging trends – long term care, types of
employment (part-time), new forms of
mobility, early retirement, etc
• Unclear guidelines/open interpretations
• New Regulations could be manipulated to
the advantage of certain employers;

19. For further information kindly contact our
Social Policy Information Centre, SPIC on
159
www.msp.gov.mt
social.security@gov.mt
My e-mail: joseph.b.camilleri@gov.mt