1. Social protection/social security aspects of active ageing
MISSOC NETWORK MEETING Copenhagen, 24 & 25 May 2012
Social protection/social security aspects of active ageing
Prof. Jean-Philippe Lhernould (Univ. Poitiers)
Academic Expert

2. Objectives and scope of the report
2012: “European Year for Active Ageing and Solidarity between Generations”
Contribution to reflections on active ageing
…What is “active ageing”?
process of optimising opportunities for health, participation and security in order to enhance quality of life as people age
includes the notion of continuing activity in the labour force and encompasses continuing participation of older people in society (WHO) = promotion of the employment of older workers
growing old in good health and as a full member of society, feeling more fulfilled in our jobs, more independent in our daily lives and more involved as citizens (EU)

3. Objectives, scope and challenges of the report
What is a “senior”, an “old(er) person/worker”?
No clear-cut definition: depends on countries and policies
active ageing policies may start at age 50 or age 65
active ageing policies may apply to persons within a variable age bracket (ie )

4. Objectives, scope and challenges of the report
Active ageing, a multidimensional approach
sum of policies relating to “employability” (vocational training, career advice, retraining, literacy skills, medical psychological assistance, etc.)
measures in the field of social integration
provision of social security/tax cash benefits/advantages

5. Objectives, scope and challenges of the report
“Social protection” national policies contribute to active ageing in variable ways taking into account
financial and demographic matters,
unemployment rate,
gender equality policies,
public health goals,
social inclusion,
structure of labour markets and of social protection systems,
Cultural/awareness aspects,
level of economic development

6. Objectives, scope and challenges of the report
Report tries to assess links between active ageing policies and social protection in EU
Analysis of social protection systems which objectives or effects are
to maintain at work older people who are already active;
to facilitate back-to-work of older people who are excluded from the labour force, whether for a long or a short time

7. Objectives, scope and challenges of the report
Report examine measures for older workers which
combat forms of early retirement,
support deferred pension,
extend pensionable age and/or make it flexible
facilitate back to work of jobless older people,
allow for partial pensions and accumulation of pensions with earnings from work
adapt unemployment/invalidity and social assistance benefits to encourage work of older people

8. Objectives, scope and challenges of the report
Report does not examine measures for older workers which
Advantages to employers such as social security/tax exemptions or partial payment of salaries by public institutions,
Not enough data
Preventive measures aimed to protect the good health of workers
Link not direct enough

9. 1. Rise of the statutory average pensionable age
Variety of reforms increasing statutory pensionable age
Progressive increase in most countries
Pensionable age increase may not be identical for all insured persons of the same country
Family situation, birth year, insurance date, etc.
Parallel process of equalising pensionable age between genders
Abolition of statutory retirement age

10. 2. Rise of the effective pensionable age
Rules of entitlement/calculation
extension of years of contribution
tougher access to a full pension
switch from defined benefit to other types of pension funds
increase of the reference period over which salaries are taken into account
longer minimum periods of insurance
flexible system of pensionable age
Extra advantages for deferred pensions
bonus to late pensioners
removal of penalties applicable to workers who would have not been entitled to a full pension

11. 3. Accumulation of job income and old-age pension
Partial retirement
not high on the agenda: 21 countries do not specify any partial retirement rules
broad scope of potential beneficiaries
significant reduction of the working time may be required
target group may be defined
Partial retirement may be open only to unemployed persons who take up a job or to persons who conclude a fixed-term contract
system of advanced pension

12. 3. Accumulation of job income and old-age pension
Growing awareness in European countries: possible in a vast majority of them
A significant group of countries (at least 14) provide for an unlimited accumulation of job income and old-age pension
Many countries have made the accumulation gradually easier
Pension may increase during the period of accumulation
When accumulation is limited
Based on total income received,
Temporal elements (age, job taken up)

13. 4. Phasing out of early retirement schemes
A minority of countries have banned all forms of early retirement
Many countries exclude the right to retire for persons who are younger than an age ceiling
Variable age: gender, family status, health state, insurance record…

14. 5. Reduced scope of remaining early retirement schemes
Tighter conditions of access
Subject to a very long career
Time gap between early retirement and statutory retirement can be small
Provided if minimum pension amount reached
Limited to some persons
persons who have been unemployed for a certain period of time, disabled, persons with low income, persons wrongfully imprisoned…

15. 5. Reduced scope of remaining early retirement schemes
Less attractive benefits
Early pensions may still not subject to financial penalties
May be limited to specific situations: disabled persons, persons having raised children…
Half of the countries include financial penalties
pension cut proportionately to the length of anticipation
reduction rate dependent on the career record
reduction calculated according to the age
reduction rate based on toughness of activity

16. 6. Alternative policies for stay at work/ return to work of older people
Most active ageing policies in the field of social security concern the old-age risk (including widowhood)
Alternative actions may be built up in the context of unemployment & invalidity risks + social assistance

17. Reduced working capacities: rehabilitation measures
6. Alternative policies for stay at work/ return to work of older people
Reduced working capacities: rehabilitation measures
Broad measures
medical, social, educational, psychological, vocational training measures
rehabilitation not reserved to victims of accident at work or occupational diseases
(extra) daily cash benefit during the rehabilitation period
doctors and other experts play a key role
decision to provide rehabilitation services, power to assess the degree of health damage…
“Rehabilitation before pensions”
Access to invalidity/incapacity pension may be conditional upon completion of retraining / rehabilitation measures

18. 6. Alternative policies for stay at work/ return to work of older people
Reduced working capacities: accumulation of incapacity/invalidity benefits with earnings from work
Since 2004, slight trend for a wider possibility of accumulation
Group1: some countries which allow for unlimited accumulation of these two sources of income
Group2: some countries which do not allow the accumulation at all.
Group3: most countries subject accumulation to conditions and limits
based on a maximum overall income
based on the degree of work incapacity

19. Return to work of older unemployed (with full working capacities)
7. Alternative policies for stay at work/ return to work of older people
Return to work of older unemployed (with full working capacities)
Countries were tempted to exclude from the labour market older workers by granting “transitory” unemployment-related benefits allowing them to wait until they reach the pensionable age
Some countries still provide
extended unemployment benefits
continuity of unemployment benefits through social assistance measures
However, 12 countries report no specific measure for older unemployed persons

20. Social assistance and older unemployed workers
7. Alternative policies for stay at work/ return to work of older people
Social assistance and older unemployed workers
A minority of countries consider that older workers should not be treated like other workers concerning the work research/activation measures
Some countries consider that older workers may be subject to less stringent requirements
Some countries gradually remove exemptions applicable to older workers
In most cases, no specific rule for older unemployed persons are required

21. Social protection contribute significantly to active ageing
Conclusion
Social protection contribute significantly to active ageing
Lower statutory age /tougher access to a decent pension play a huge part
Phasing out of early retirement schemes as well as tougher access to extended unemployment benefits follows the same trend

22. More innovative policies
Conclusion
More innovative policies
accumulation of an old-age/invalidity/incapacity pension and job income are well accepted
deferment of pension after statutory retirement age is adopted by most countries
Emphasisis on preventive measures such as rehabilitation policies