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

Page 2 Context  Performance agreements (PA) in the Federal state of Belgium 1

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

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

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

Page 6 Contractmanagement within the Belgian Social Security network 2  Actual situation  Contracting parties  Options taken in the implementation of the PA

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

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

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

Page 10 Content : the PA will cover the operational performance of the institutions Effectiveness : policy implementation Efficiency : Value for Money Performance : execution daily activities

Page 11 Output objectives

Page 12 Fraud & Error inside the PA High topic for the 3d generation ( ) Policy targets for tackling fraud & error (april 2009) Policy targets for tackling fraud & error (april 2009) Not only fraud but also errors Analyzing actual measurement system en developing new ones if necessary 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 13 A new relationship between Agency and the State L’Etat, c’est moi We are equal partners Performance agreements Primacy of politics Reaching a compromise Operational autonomy Contractual obligations Reporting Remaining control

Page 14 The contractualisation process in brief 3  Negotiation  Yearly implementation cycle  First evaluation

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

Page 16 Implementation : yearly cycle Mgt plan 6 month report Year report Report State’s commissioners Year discussion Adaptation Year Cycle Global & pluriannual evaluation by dpt Negociation of new agreements Pluriannual Cycle

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

Page 18 Weak points of PA Observed problems with the information quality inside PA and reports

Page 19 Open questions about the system’s future 4

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

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

Page 22 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 23 Fourth question : how to translate PA into individual performance ? Organizational performances Individual targets

Page 24 Fifth question : How to transfer the system to central departments ? Covering production chain Covering study & policy departments

Page 25 For further informations Amaury Legrain Tom Auwers FPS Social Security – DGStrat