services familyretirement health 11 national training event skopje 27 / 28 september 2010 social...

11

ServicesFamily RetirementHealth

National training event Skopje 27 / 28 September 2010

Social Insurance Fund for Farmers and Allied Workers in France

22National training event - Skopje, 27 and 28 September 2010

Social security arrangements for Farmers and Allied Workers in France

Presentation by David MARSHALLDeputy Director : MSA Ain-Rhône

Presentation by David MARSHALLDeputy Director : MSA Ain-Rhône

Social security arrangements for Farmers and Allied Workers in France - Experience and Prospects

Social security arrangements for Farmers and Allied Workers in France - Experience and Prospects



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



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



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



• 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 Frenchexperience



Agricultural policy inFrance 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 inFrance 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



Agricultural policy in France since 1945

• Considerable reduction of the agricultural sector

• 1950 - 1967 - 30% farmers• 1955 - 1963 - 400 000 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

• 1950 - 1967 - 30% farmers• 1955 - 1963 - 400 000 farms

• Orientation Act of 4/7/1980• Confirmation of previous orientations• Establishment of minimum holding (SMI)• Setting up of « solidarity contributions »




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




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




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




• 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



• Financial implications

• Political implications

• Technical implications

• Specific case of salaried workers

• Financial implications

• Political implications

• Technical implications

• Specific case of salaried workers

ImplementationIssues



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



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



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 ?

Technicalimplications



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 ?




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 ?




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



EconomicPerspectives

• 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



Conclusionand

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 ?



Thank you for

your attention

services familyretirement health 11 national training event skopje 27 / 28 september 2010 social...

Documents

france slide

allied workers

france experience

plan specific arrangements

national training event

scope of agricultural

questions introduction

presentation slide