FPS Social Security DG Strategy & Research Performance agreements in the Belgian social security network July 2009

1 Context  Performance agreements (PA) in the Federal state of Belgium Page 2 dgstrat@minsoc.fed.be

Governance framework at the federal level Central ministries Executive bodies : Federal Law of 16 March 1954 on the control on public institutions of general interest A B C D 1 1993 : Autonomous State’s owned enterprises / public anonymous corporation (PA) ’90 : privatization 2 1997-2003 : Public institutions from social security PA, ops autonomy, ind responsibility for CEO 3 1999-2003 : Copernicus Reform Matrix structure, reorganisation in Federal Public services (FPS) 2001-2003 Individual responsibility for CEO’s 4 2008 : Policy plan Minister for Civil Service PA / operational autonomy for FPS and remaining A & B bodies To ex post control Page 3 dgstrat@minsoc.fed.be

Governance framework within the Regions and Communities General ministries Executive bodies : Federal Law of 16 March 1954 for the control on public institutions of general interest A B C 1993 : Autonomous State’s owned enterprises / public anonymous corporation (PA) Outside Within & developed Within & unchanged Flemish Community Wallon Region French Community Brussels Capital Region 2000-2008 : For a Better Management Policy Reform Reorganisation in policy fields, agencies, CEO-mandate, PA for agencies 2004 : Management decrees for executive institutions : control, PA, CEO responsibility 2007 : Plan Marcourt (Walloon Region) reorganisation in departments, CEO-mandate 2007 : PA for departments Page 4 dgstrat@minsoc.fed.be

Performance agreements in the Kingdom of Belgium Flemish Community 56 executive agencies 13 central departments Brussels Capital Region 5 executive bodies or public enterprises French Community 6 executive bodies or public enterprises Walloon Region 27 executive bodies or public enterprises Federal authority 11 State’s owned enterprises 15 executive institutions from social security Page 5 dgstrat@minsoc.fed.be

Contractmanagement within the Belgian Social Security network 2 Contractmanagement within the Belgian Social Security network  Actual situation  Contracting parties  Options taken in the implementation of the PA Page 6 dgstrat@minsoc.fed.be

Performance agreements within the Belgian social security network Performance agreements in 15 Social Security Public Institutions (SSPI) :  Between the Federal State and each SSPI  12.000 employees concerned  Operational budget +/- 1billions €/year  Three years period + prolongation  1ste generation (2002-2005) – second generation (2006-2009) Need for a well performing social security network because of external threats Greater demands from citizen for a qualitative service Why ? More and more budgetary constraints Need for adequate policy support Page 7 dgstrat@minsoc.fed.be

Who ? A PA between Social partners, CEO & Ministers System of public social insurance covering social risks Direct contributions Appointed CEO Employers’ organisations Trade unions Governance of the public institutions Performance agreements Belgian State Page 8 dgstrat@minsoc.fed.be

The contracting pandemonium Ministre de Tuelle Commissionar Policy Minister Support to the political level Control, following-up concertation Support Minister for Budget Commissionar Minister for Budget FPS Budget Concertation en task division Intercabinet working groups Minister for Civil Service Social Security Public Institution Belgian government FPS Empl FPS Soc Mgt-board CEO SSPI’s College Page 9 dgstrat@minsoc.fed.be

Effectiveness : policy implementation Content : the PA will cover the operational performance of the institutions Effectiveness : policy implementation Performance : execution daily activities Efficiency : Value for Money Page 10 dgstrat@minsoc.fed.be

Output objectives Page 11 dgstrat@minsoc.fed.be

Fraud & Error inside the PA High topic for the 3d generation (2010-2012) Not only fraud but also errors Analyzing actual measurement system en developing new ones if necessary Policy targets for tackling fraud & error (april 2009) Report on fraud/error mechanisms inside your policy sector Making a risk analyse for your policy sector Updating the actual action plans against social fraud / error Cooperating with others Belgian departments or executive bodies Participating to the execution of international / bilateral agreements Page 12 dgstrat@minsoc.fed.be

A new relationship between Agency and the State We are equal partners L’Etat, c’est moi Reaching a compromise Primacy of politics Operational autonomy Reporting Contractual obligations Remaining control Performance agreements Page 13 dgstrat@minsoc.fed.be

3 The contractualisation process in brief  Negotiation  Yearly implementation cycle  First evaluation Page 14 dgstrat@minsoc.fed.be

Step 5 : 2nd round of negotiation Step 2 – 1st round of negotiation Negotiation process June X-1 June-July X-1 August – October X-1 November-december X-1 Step 5 : 2nd round of negotiation Step 4 – Political discussions Meeting Inst – Policy & Budget Ministers Step 6 Budgetary planning Year X GOV decision Approbation, signing & publication Financial way Step 1 Preparation Step 2 – 1st round of negotiation Political / budgetary discussions Final approval of the budgets Meeting Inst – Policy & Budget Ministers Step 3 Budget 1st year – Budgets 2 next Years 1st project PA 2nd project contract 3d project contract State’s expectations Strategic way Meeting Institution – Policy Minister Meeting Inst-Policy Minister Meeting Inst – Policy Minister Communication to Policy Ministers Approval Social Pertners Technical way Quality check-up Quality check-up Quality check-up Page 15 dgstrat@minsoc.fed.be Preparation Negotiation Conclusion

Implementation : yearly cycle Negociation of new agreements Pluriannual Cycle Year Cycle Global & pluriannual evaluation by dpt Page 16 dgstrat@minsoc.fed.be

Evaluation 1st generation : goal attainment 1193 (I) /1204 (II) operational outputs 978 (I) /1136 (II) SMART enough to be evaluated Evaluation 1st generation : goal attainment Page 17 dgstrat@minsoc.fed.be

Observed problems with the information quality inside PA and reports Weak points of PA Observed problems with the information quality inside PA and reports Page 18 dgstrat@minsoc.fed.be

4 Open questions about the system’s future Page 19 dgstrat@minsoc.fed.be

First question : how to maintain the innovative nature of PA ? Effectiveness : policy implementation Performance : execution daily activities Efficiency : Value for Money Page 20 dgstrat@minsoc.fed.be

Preaching for pluri-annual performance en budget planning Second question : how to match the pluri-annual PA with yearly budgetary constraints ? Preaching for pluri-annual performance en budget planning Respect for the (yearly) techniques of budgetary orthodoxy Page 21 dgstrat@minsoc.fed.be

Changes in policy / political / budgetary cycles Third question : how to guarantee the partnership and the primacy of politics at the same time? Changes in policy / political / budgetary cycles L’Etat, c’est moi Page 22 dgstrat@minsoc.fed.be

Fourth question : how to translate PA into individual performance ? Individual targets Organizational performances Page 23 dgstrat@minsoc.fed.be

Fifth question : How to transfer the system to central departments ? Covering production chain Covering study & policy departments Page 24 dgstrat@minsoc.fed.be

For further informations Amaury Legrain Tom Auwers FPS Social Security – DGStrat amaury.legrain@minsoc.fed.be tom.auwers@minsoc.fed.be http://www.socialsecurity.fgov.be Page 25 dgstrat@minsoc.fed.be