1 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE - Basic options for standardization in European social security - By-Products of standardization By: Jean-Victor Gruat

2 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE EUROPE: TOO MANY SCHEMES FOR FULL STANDARDIZATION - Among the 27 EU member states, the ISSA counts 86 members, which means as many national schemes managing one or more branch of compulsory social security protection - Given their variety of organization and technical forms, European social security institutions cannot rely on one single, integrated model of management (business processes)

3 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE BASIC COMMON OPTIONS - However, there are a few basic options which run through this variety of schemes, and make it possible to speak about an “European approach” to business processes standardization in social security - Three such basic options are identified as follows:  International compatibility of data  National data integration  Dematerialization

4 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE SIGNIFICANT BY-PRODUCTS As by-products, this approach has led to significant improvements in three core areas:  Fighting fraud  Clients’ satisfaction  Governance

5 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE INTERNATIONAL COMPATIBILITY - International compatibility in social security was ensured in the EU since An ad hoc body was established (Administrative Commission for Migrant Workers’ Social Security). Special forms were designed, competent bodies were designated in each member State. Started with 6 countries, now covers Since 2010 (principle adopted in 2004) there is full electronic exchange of data. All working periods are to be taken into account to appreciate globally the right to benefits. All elements of insurance have to be known to all concerned schemes if multiple geographical career. Regulation 883/2004 and Application 987 & 988/2009

6 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE NATIONAL INTEGRATION  Nationally, EU social security schemes try to minimize input of individual data. This is achieved through making national schemes inter-compatible, in fact able to “talk” to each other.  Example 1 : When employer recruits a worker, inclusion in payroll generates information for social security bodies (same when quits, is dismissed, changes job, etc.)  Example 2 : When social security pays a benefit, it informs tax authorities of the amount under a number recognized by the two administrations  Example 3 : When a demise is registered, hospital or Civil affairs or notarius sends out notification to social security bodies (also to other interested bodies).  When there are several national social security institutions, notification to one is dispatched to the others for updating their records. This is done through joint portals (Portugal), joint services (France), clearing houses (Belgium)  Limits to exchange come from data privacy considerations. Rule is that institutions should exchange only what is absolutely necessary for proper management.

7 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE DEMATERIALIZATION - The idea is to limit to the extent possible the circulation of paper documents. This is for ecological reasons, for security reasons, for efficiency in processing data. This general trend towards e- governance also applies to social security - Already mentioned EU electronic forms for migrant workers. Other country examples Spain (pensions, dematerialization also in partnership with foreign institutions), France (employer handles all formalities via internet), Belgium (employment related data can be transmitted via GSM/SMS) - Vehicle is either encrypted key (complex and cumbersome) or registration via web portal. See French example hereafter.

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10 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE BY-PRODUCT OF STANDARDIZATION: COMBATTING FRAUD  It is estimated in Europe that 3 to 8 % of the benefits value is lost in fraud. Many European countries attch a growing importance to combating this.  Reasons are ethical, financial, political, competitiveness and image  At the EU level, a Code of conduct was adopted in 1999 for improved cooperation between social security authorities to combat fraud (data transmission, request for information)  Most fraud comes from non-declared work, which is most damaging and most difficult to track automatically.

11 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE BY-PRODUCT OF STANDARDIZATION: CLIENTS’ SATISFACTION - Clients are those to decide if the service is satisfying or not. « Satisfying » currently means not only accurate and quick, but also matching the needs and easy to access - High consideration for clients’ satisfaction in social security came with rapid and generalized technical progress, coupled with better awareness of more demanding clients and kind of competition with private sector - Key parameters for clients’ satisfaction are accessibility, equal treatment, professional approach by staff. Institutions also have to enable kind of learning process. - Many social security institutions have established Global satisfaction indexes which are constantly updating through statistical data and polling. Results are public and widely commented.

12 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE BY-PRODUCT OF STANDARDIZATION: GOVERNANCE Governance is why you do what you are doing the way you do it.  It embodies effectiveness (cost), efficiency (mission), accuracy (accountability). It requires tools to measure, and benchmarking. Governance cannot be appreciated without comparability and transparency.  It requires that fundamental reports be made accessible to the public, as well as the results of internal and external audits. Proper management reviews are core to good governance.  Areas for such reviews include administrative practices, personal management, outputs and deliverables.  Business processes integration highly contributes to the efficiency of management reviews.

13 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE CONCLUSIONS Management standardization in social security is comprehensive. It affects:  Management environment (IT, performance indicators, clients’ satisfaction, administrative instructions, front and back office integration, fraud and errors detection and reporting …)  Physical environment (ergonomics, welcoming the public, support facilities, hardware, public visibility …)  Work environment (job descriptions, job classification, qualifications, levels of responsibility, career development …) Aim and result is to achieve the best possible service within institutional constraints and duly respecting the rule of law. Cherry on the cake: Achieving ISO 9000 Quality standard certification.

14 SOCIAL SECURITY MANAGEMENT STANDARDIZATION IN EUROPEAN PERSPECTIVE 谢谢！