Tools for comparing EU and China social security systems New member states join the Union with various backgrounds Current schemes and systems are the result of up to one hundred years and more of progressive developments in national context There is not a single EU social security system or model Comparing the Chinese social security system with individual European schemes would represent a huge task, and maybe a meaningless one.

Tools for comparing EU and China social security systems Those are embodied in various EU communications of the commission to the council as well as in the European Code of Social security (Council of Europe instrument) Those principles were explicitly endorsed by 40 European countries directly (ratification of the Code) or indirectly (ratification of European social charter) European Countries however share or endorse a set of common principles/benchmarks applying to social security. The Open Method of Coordination (OMC, from Lisbon Strategy) would have been impossible to envisage in the absence of this common stand.

Tools for comparing EU and China social security systems. Those principles/benchmarks include the following core 10 areas: i.uniqueness of the system ii.continuity in protection iii.coexistence of basic and multi-tier protection iv.progression towards universal coverage v.good governance requirements vi.democratic management vii.affordability of sustainable financing viii.guaranteed level of benefits ix.rule of law and right of appeal x.overall State responsibility

Tools for comparing EU and China social security systems Cross checking among schemes: one single form filled in by employer Incorporation under one scheme implies incorporation under other schemes Unique social security number. Entitlement to benefits under one scheme entails accrual of rights under other schemes I - One country, one system

Tools for comparing EU and China social security systems Changing country, changing system, vesting rights, paying abroad European vesting system extended to non nationals (2003) Changing profession, changing scheme, vesting rights. Non contributory periods if involuntarily not covered through contributions II - Continuity in Protection

Tools for comparing EU and China social security systems Secondary level protection compulsory, 3rd level optional Supplementary benefits may come from law or collective agreements at national, branch or entreprise level Basic protection as citizens entitlement. Qualifying conditions to access secondary level linked to those for first level III - Coexistence of basic and multi-tier protection

Tools for comparing EU and China social security systems Progressive equalization of qualifying conditions and benefits among schemes Coverage of nine contingencies, additional contingencies Convergence of non contributory and contributory systems Link between social assistance and social insurance IV - Universal coverage

Tools for comparing EU and China social security systems Internal and external controls Computerization and public access Monitor administrative costs Government tutelage, Parliament supervision V - Governance

Tools for comparing EU and China social security systems Protected persons associated to management Beneficiaries may seat on governing bodies Contributions belong to contributing persons Annual and other reports made available to the public VI - Democratic Management

Tools for comparing EU and China social security systems Financing to be shared employers-employees Government responsible to ensure that legal benefits are paid and financed Contributions should not be too high Actuarial studies to be conducted periodically and whenever changes are being considered VII - Affordability

Tools for comparing EU and China social security systems Rate to progress with economic development Benefits in kind: related to their social goal Guaranteed replacement rate or absolute level Payable throughout the contingency VIII - Level of benefits

Tools for comparing EU and China social security systems Justify decisions Right of appeal, special courts Clearly established and widely disseminated rights and entitlements Advisers for insured persons and beneficiaries IX - Rule of Law

Tools for comparing EU and China social security systems Government to ensure continuity and performance of the system Government to ensure that consultation among social partners take place Rules and regulations also for non government schemes Government to promote preventative measures in case of risk of system insolvency or unsatisfactory results X - State Responsibility

Tools for comparing EU and China social security systems Some differences are due to unequal levels of development, others not Would be important to clearly identify possible remedial measures, and plan for implementation There are obvious gaps between Chinese and European levels of social protection Systemic approach of role and objectives of social security still uncompleted Conclusions