Social security & Taxation Key aspects relevant for researchers‘ mobility Massimo Serpieri EU Commission – DG Research Human Factor & Marie Curie Actions – Strategy & Policy Aspects

Summary General principles of social security regimes: 1st pillar Complementary pensions Main taxation rules Approach by the EU Commission-DG Research & Role ERA-MORE : perspectives

General principles social security Legal Basis Article 42 of the Treaty Regulation 1408/71 Regulation 574/72 Aim of Community provisions to ensure that migrant workers and their family members do not lose their social security protection when moving within the Community

Coordination vs Harmonisation Coordination means that Member States are free to determine who is insured which benefits shall be provided value of benefits conditions of eligibility

The 4 basic principles Only one legislation applicable Equality of treatment Exportation of benefits Aggregation of insurance periods

Matters covered Sickness and maternity benefits Invalidity benefits Old-age benefits Accidents at work and occupational diseases Death grants Unemployment benefits Family benefits

European Health Insurance Card (EHIC)

Old-age pensions Insurance records are preserved Each country pays separate pension (at least one year of insurance) Aggregation of periods Pro rata temporis rule Export of pensions

“Posting” rules Art. 14 Reg. 1408/71): « Posted workers » shall continue to be subject to the legislation of the Member State of origin for up to 1 year (max 2 y.) Art. 17: possibility of agreements between MS to derogate: Recommendation No. 16 of 1984, the Administrative Commission on Social Security for Migrant Workers for agreements for employed persons with "special knowledge and skills" posted abroad "for the full duration of their assignment“.

New Developments Extension of Regulation 1408/71 to third country nationals European Health Insurance Card Simplification & Modernisation: New Regulation 883/2004 which entered into force on 20 May 2004 (but applicable only from the date of the entry into force of the new implementing Regulation)

New Regulation 883/2004 - Main Changes Extension of the personal scope Strengthening of the equal treatment principle Cross border recognition of facts New chapter on pre-retirement benefits New rules regarding frontier workers Principle of good administration

Pensions: 2nd pillar Concept Problems: portability pension rights (acquisition, preservation, transfer) Directive 98/49/EC on “safeguarding the supplementary pension rights of employed and self-employed persons moving within the EU: ok preservation of acquired rights, but KO conditions of acquisition of the rights or their transferability

Pensions: 2nd pillar Proposal for a directive containing minimum requirements with a view to the improvement of the portability of supplementary pension rights Importance for countries with long « vesting periods »

Taxation Key principle: residence Bilateral tax agreements Specific rules on personal income tax rebates of researchers Main problem: lack of a unique (or comparable) clear definition of “R&D” and “researcher”:

Approach by DG Research - Roles ERA-MORE – Perspectives Gathering information on the frequently mentioned problems concerning social security & taxation problems to decide on their real nature

Approach by DG Research - Roles ERA-MORE – Perspectives Proposing possible actions at short, medium and long-term : - by the Commission : “Background note & template, training - By the MS: Internal dialogue with other authorities (e.g. for directive portability pension rights) - Contacts with relevant network (e.g. Tress) - Raising awareness & training

Coordination of social security website on the Europa server More information Coordination of social security website on the Europa server http://europa.eu.int/comm/employment_social/social_security_schemes/index_en.htm Tress: http://www.tress-network.org