Services FamilyRetirement Health 11 National training event Skopje 27 / 28 September 2010 Social Insurance Fund for Farmers and Allied Workers in France

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 2 Presentation by David MARSHALL Deputy Director : MSA Ain-Rhône Presentation by David MARSHALL Deputy Director : MSA Ain-Rhône Social security arrangements for Farmers and Allied Workers in France - Experience and Prospects

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 3 Plan Introduction The French experience Implementation issues Perspectives in the current economic climate Conclusion and advice Introduction The French experience Implementation issues Perspectives in the current economic climate Conclusion and advice Plan of the Presentation

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 4 Plan Specific arrangements for agriculture – a rare choice A multiplicity of reasons Basically a question of choice and conviction, but implementation raises many questions Specific arrangements for agriculture – a rare choice A multiplicity of reasons Basically a question of choice and conviction, but implementation raises many questions Introduction

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 5 Plan Why set up a specific scheme ? What distinction between rural and urban areas ? What scope of agricultural policy ? Is it a pertinent choice ? What financial rules ? Which technical choices ? Is implementation a reasonable option in the current economic climate ? Why set up a specific scheme ? What distinction between rural and urban areas ? What scope of agricultural policy ? Is it a pertinent choice ? What financial rules ? Which technical choices ? Is implementation a reasonable option in the current economic climate ? A good many questions

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 6 A brief retrospective Agricultural policy Social protection Current arrangements Scope of cover Technical, political and financial aspects Specific questions A brief retrospective Agricultural policy Social protection Current arrangements Scope of cover Technical, political and financial aspects Specific questions The French experience

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 7 Agricultural policy in France since 1945 Act of 13/4/1946 New definition of relations between landowners and tenants New guarantees for tenants Orientation Act of 5/8/1960 Orientation Act of 8/8/1962 Edgard PISANI Agricultural structure improvement fund (FASASA) Early retirement scheme (IVD) Agricultural policy in France since 1945 Act of 13/4/1946 New definition of relations between landowners and tenants New guarantees for tenants Orientation Act of 5/8/1960 Orientation Act of 8/8/1962 Edgard PISANI Agricultural structure improvement fund (FASASA) Early retirement scheme (IVD) A brief retrospective

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 8 Agricultural policy in France since 1945 Considerable reduction of the agricultural sector % farmers farms Orientation Act of 4/7/1980 Confirmation of previous orientations Establishment of minimum holding (SMI) Setting up of « solidarity contributions » Agricultural policy in France since 1945 Considerable reduction of the agricultural sector % farmers farms Orientation Act of 4/7/1980 Confirmation of previous orientations Establishment of minimum holding (SMI) Setting up of « solidarity contributions » A brief retrospective

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 9 Social fund arrangements Early beginnings Private arrangements from the late XIXth century Emergence of the « Mutuelles » Post-war arrangements Refusal of farmers to join the general scheme in 1945 Strong pressure on the MSA to manage health and family benefits Compulsory retirement scheme in 1952 Social fund arrangements Early beginnings Private arrangements from the late XIXth century Emergence of the « Mutuelles » Post-war arrangements Refusal of farmers to join the general scheme in 1945 Strong pressure on the MSA to manage health and family benefits Compulsory retirement scheme in 1952 A brief retrospective

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 10 Social fund arrangements The 1960s New agricultural policy Obligatory health insurance but free choice of insurer New rules on farmers’ status From the 1970s to the present day Workplace accident insurance for salaried workers Workplace accident insurance for farmers Compulsory additional retirement insurance for farmers Social fund arrangements The 1960s New agricultural policy Obligatory health insurance but free choice of insurer New rules on farmers’ status From the 1970s to the present day Workplace accident insurance for salaried workers Workplace accident insurance for farmers Compulsory additional retirement insurance for farmers A brief retrospective

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 11 Financial considerations 1949 – 2004 the « BAPSA » Increasing difficulty to balance the budget Compensation incompatible with the Maastrict criteria 2004 – 2008 the « BAPSA » replaced by the « FFIPSA » 2008 : deficit of 8 billion € Management transfered to the MSA Transfert of deficit to the CADES Sickness costs integrated into the general fund Financial considerations 1949 – 2004 the « BAPSA » Increasing difficulty to balance the budget Compensation incompatible with the Maastrict criteria 2004 – 2008 the « BAPSA » replaced by the « FFIPSA » 2008 : deficit of 8 billion € Management transfered to the MSA Transfert of deficit to the CADES Sickness costs integrated into the general fund A brief retrospective

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 12 Scheme administered by the MSA Scope of cover : Farmers, workers and families Health insurance Accident insurance Retirement benefits Family benefits Social benefits Working conditions and health in the workplace Scheme administered by the MSA Scope of cover : Farmers, workers and families Health insurance Accident insurance Retirement benefits Family benefits Social benefits Working conditions and health in the workplace Current arrangements

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 13 Financial implications Political implications Technical implications Specific case of salaried workers Financial implications Political implications Technical implications Specific case of salaried workers Implementation Issues

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 14 Management of ressources Definition of budget Contributory effort Compensation mecanisms Fiscality Questions : Authority responsible for definition and management of social protection budget ? Sustainable level of contributory effort ? Management of ressources Definition of budget Contributory effort Compensation mecanisms Fiscality Questions : Authority responsible for definition and management of social protection budget ? Sustainable level of contributory effort ? Financial implications

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 15 Implication of beneficiaries Involvement of professional organisations in decision- making process : Level of benefits Level of contributions Collective responsibility Questions : Type of management of social fund ? Will to share responsibilites ? Electoral or designatory system ? Implication of beneficiaries Involvement of professional organisations in decision- making process : Level of benefits Level of contributions Collective responsibility Questions : Type of management of social fund ? Will to share responsibilites ? Electoral or designatory system ? Political implications

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 16 Identification & affiliation Registration rules Notification of setting up as a farmer Registration in IT system Visit by MSA counselor Information on rights and obligations Questions : National registration number ? Follow-up of agricultural structures ? Interconnection of IT systems ? Identification & affiliation Registration rules Notification of setting up as a farmer Registration in IT system Visit by MSA counselor Information on rights and obligations Questions : National registration number ? Follow-up of agricultural structures ? Interconnection of IT systems ? Technical implications

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 17 Contributions Farmers’ income status Links to fiscal system Obligation to declare Level of income Rate of contribution Questions : Situation of agricultural tax system ? Ability to use fiscal data ? Interconnection of IT systems ? Contributions Farmers’ income status Links to fiscal system Obligation to declare Level of income Rate of contribution Questions : Situation of agricultural tax system ? Ability to use fiscal data ? Interconnection of IT systems ? Technical implications

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 18 Determination of rights Pre-existing social system Alignment of rights on general system Induced costs Questions : Definition of future beneficiaries ? (only contributors or whole agricultural population, including pensioners ?) Definition of budgets ? Financial balance ? Specific agricultural risks ? Determination of rights Pre-existing social system Alignment of rights on general system Induced costs Questions : Definition of future beneficiaries ? (only contributors or whole agricultural population, including pensioners ?) Definition of budgets ? Financial balance ? Specific agricultural risks ? Technical implications

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 19 Salaried workers Rights and obligations identical to other workers Rights managed by the MSA Seasonal workers Inherent to agriculture Numerous short contracts Identification problems Particular status of the « Occasional worker » reduction of contributions Question : Policy towards this category ? Salaried workers Rights and obligations identical to other workers Rights managed by the MSA Seasonal workers Inherent to agriculture Numerous short contracts Identification problems Particular status of the « Occasional worker » reduction of contributions Question : Policy towards this category ? Specfic case of salaried workers

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 20 Economic Perspectives An inauspicious climate... Recent financial crisis Globalisation limits national action Fluctuation of agricultural revenue... which implies Likely difficulties for adequate funding of management structures benefits and social intervention restructuration costs Necessity to define clear choices Solidarity expected from other sectors Equity of treatment Agenda for setting up the scheme An inauspicious climate... Recent financial crisis Globalisation limits national action Fluctuation of agricultural revenue... which implies Likely difficulties for adequate funding of management structures benefits and social intervention restructuration costs Necessity to define clear choices Solidarity expected from other sectors Equity of treatment Agenda for setting up the scheme

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 21 Conclusion and advice Creating or maintaining an agricultural social scheme Has definite advantages in terms of integrated agricultural policy measurement of social efforts in favour of agriculture coherence of sectorial policy But requires lucidity not to underestimate the crucial questions : Who defines the budget ? Which ressources can be permanently allocated ? What clear definition can be made of the population ? Creating or maintaining an agricultural social scheme Has definite advantages in terms of integrated agricultural policy measurement of social efforts in favour of agriculture coherence of sectorial policy But requires lucidity not to underestimate the crucial questions : Who defines the budget ? Which ressources can be permanently allocated ? What clear definition can be made of the population ?

National training event - Skopje, 27 and 28 September 2010 Social security arrangements for Farmers and Allied Workers in France 22 Thank you for your attention