Social Security Financing
Ludo CASTRO Adviser
Survey The present-day social security financing The causes of its complexity
The establishment of a budget The social security reserves
Assignment budget Global management
Werkgeversrekeningen Totaal van de ge•nde bijdragen
2003
Percent
644.648.035.609,12
2011
Percent
975.058.781.235,27
Totaal van de vorderingen
3.471.933.600,91
0,54%
2.831.216.968,34
0,29%
Oninbaar verklaarde bijdragen
1.843.677.172,17
0,29%
3.429.967.013,24
0,35%
vorderingen + Oninbare bijdragen
5.315.610.773,08
0,82%
6.261.183.981,58
0,64%
The budget in figures 2011 BBP
355,89 mrd €
Entiteit I
FOD financiën belastingen lening EU Alt. Fin Gem & Gew. Eigen begroting
101,4 SZ 42,5 143,9 2,6 16,7 38,5 86,1
Entiteit II Gemeenschappen Brussel Gewesten Overdrachten
20,18 0,62 12,27 38,5 71,57
Bijdragen Alt. Fin. Staatstoelagen Diversen
51,4 16,7 21,9 3,8 93,8
Gbwerk Gbzelfst Gez Bijstand
63 6,2 4,8 3,1 12,1 4,6
Overheidspensioen
Rest
RSZ 46,3
Social security system for salaried workers
Global Management RJV
Arbeiders
FSO
FBZ
RSZ
Bedienden GLOBAAL BEHEER HVKZ Ambtenaren
Gesco's
RSZ-PPO
PDOS
PDOS Gezinsbijslag
FBZ
Gezinsbijslag
Financing of the Global Management in 2011
Global management Components of the financing Contributions Appropriated receipts State allowances Alternative financing Sundries
What are the elements constituting the financing in 2011 (measures not included)? 10%
0% Bijdragen
21%
Toegew ezen ontvangsten Alternatieve financiering Rijkstoelage
2%
Diversen
67%
2011 Contributions
41.330.909.139
Appropriated receipts
1.052.922.790
Alternative financing
12.793.225.100
State subsidies Sundries
6.059.504.100 197.576.849 61.434.137.978
What are the elements constituting the in 2011 (measures included)? 0%
5%
9%
Bijdragen 20%
Toegewezen ont vangst en Alt ernat ieve f inanciering Rijkst oelage Diversen Crisismaat regelen 64% 2%
2011 Contributions
41.330.909.139,26
Appropriated receipts
1.052.922.790,00
Alternative financing
12.793.225.100,00
State subsidies Sundries Antic-crisis measures
6.059.504.100,00 197.576.849,00 2.918.084.000,00 64.352.221.978,26
Social contributions
Calculation of the social security contribution
Net wages
Withholding tax on income
Pers. conTribution
Employer’s contribution
Gross wages Social contributions
Usual contributions ARBEIDER BEDIENDE werkn. werkg. werkn. werkg. Pensioenen 7,50 8,86 7,50 8,86 Gezondheidszorg 3,55 3,80 3,55 3,80 Uitkeringen 1,15 2,35 1,15 2,35 Kinderbijslagen 7,00 7,00 Werkloosheid 0,87 1,46 0,87 1,46 Jaarlijkse vakantie 16,27 Beroepsziekten 1,00 1,00 Arbeidsongevallen 0,30 0,30 Loonmatiging 7,48 7,48 Educatief verlof 0,06 0,06 Kinderopvang 0,05 0,05 Asbestfonds 0,01 0,01
Usual contributions variations Domestic servants Recognized apprentices Schoolable workers Subsidized contract employees Occasional jobs Various categories
Complementary contributions Outside the scope of the Global Management
Fund for the closing of enterprises Social security funds Child care Paid educational leave Outplacement Economic unemployment Asbestos fund
Complementary contributions Global Management
Conventional early retirement Contribution Pseudo-early retirement Extralegal pensions Risk groups Guidance of the unemployed Temporary unemployment and elderly unemployed Company cars Solidarity contribution on profit-sharing Solidarity contribution for student workers Contribution on non-recurrent result-based benefits Solidarity contribution on traffic penalties Solidarity contribution due because of a late DIMONA declaration Special social security contribution
Special social security contribution
Quarterly advances through the Dmfa declaration
The family situation plays a role The contribution rate fluctuates in accordance with the wage level
Annual fiscal statement
Depends upon the annual taxable income
RSZ RSZ-PPO Saldo Financiën
2011 754.936.000 75.253.000 207.378.195
Contribution reductions
Contribution reductions
As from the first quarter of 2004 harmonization on the basis of the program-law of December 24 2002 The core element is the structural contribution reduction R= F + x (So-S) + x (W-S1) Seven target groups
Elderly unemployed – Elderly bonus Long-term job-seekers First recruitments Younger workers Reduction in working time – four-day week Restructuring Trainers and tutors
Structural reduction Structurelle - Catégorie 1 1.400
Structurelle base
1.200
Réduction de base "R" (€)
Co tisatio ns patro nales
1.000
800
600
400
200
0 1.000
3.000
5.000
7.000
9.000
11.000
Rémunération trimestrielle équivalente "S" (€)
13.000
15.000
Contribution reductions 1.000 € Structurele vermindering
Doelgroepen Werkbonus Diverse bijdrageverminderingen Sociale MARIBEL
2011 forfait 3.286.697 lage looncomponent 241.142 hoge looncomponent 469.676 789.611 691.473 400.106 545.742
State allowance
Complementary to the contributions Initally meant to build up reserves Social policy financing Budgetary balance (from the end of the seventies
onwards)
Law of December 29 1990 containing social provisions
State allowance fixed at 4,754,880, 000 € (192 billion BEF) Amount frozen - period 1991 - 1995 (F. Busquin) Apportionment RVP (pensions) 1,797,234,000 € 23.2% RIZIV health care 4,887,634 ,000€ 63.0% RIZIV benefits 648,260 ,000€ 8.4% RVA (unemployment) 421,752 ,000€ 5.4% This period was extended until 1997 (Global allowance NSSO-GM) As from the year 1997, its amount is reduced to 188,2 billion BEF (4,659.6 million €), financing of the career break and the rehabilitation schemes and the residual part is annually linked to the index law of July 26 1996
This amount serves to finance several envelopes introduction of the social identity card, wage moderation, police reform, Globalization of the state allowances Mine workers and Seamen
Alternative financing
g van de alternatieve financieringvoor de SZ Enkele cijfers
tingsresultaten 2010 opbrengst
BTW-ontvangsten
25.041 mio
alternatieve financiering SZ =>
12.556 mio
50,1%
zen op tabak
1.960 mio
921 mio
47,0%
nde voorheffing
2.519 mio
378 mio
15,0%
al Beheer werknemers
beschikbare middelen RSZ-GB ven RSZ-GB atieve financiering GB werknemers waarvan aan :
RSZ-GB RVA-GB RIZIV (werknemers)
59.407 mio 59.820 mio 12.862 mio 10.518 mio 3 mio 2.341 mio
SALDO -'413 mio
Procentuele verdeling van de alternatieve financiering aan de SZ 2010 BTW 88,57%
Personen- en vennootschapsbelasting 1,23% Taks op verzekeringsverrichtingen 0,02%
Accijnzen (op tabak) 6,48%
Roerende voorheffing 3,29%
Belasting op werknemersparticipaties 0,07%
Belasting op aandelenopties 0,35%
WAARVOOR IS DE ALTERNATIEVE FINANCIERING AAN DE SZ BESTEMD ?
2010 14.202 miljoen €
BIJDRAGEVERMINDERINGEN RSZ-GB (incl. werkbonus)
6.436 miljoen € ZONDHEIDSZORGEN
4.552 miljoen €
GB mio
RSVZ 190 mio ligdagprijs ziekenh. 1.609 mio
RIZIV 2.457 mio
BEGROTINGSEVENWICHT
SPEC. UITGAVEN
1.830 miljoen €
914 miljoen €
RSZ-GB 1.552 mio geneesk. verzorging 847 mio
REST
RSVZ-GB 278 mio
dienstencheques WN 623 5% tijdel. werkloosh. 71 veiligheidscontracten 41 educatief verlof 45 compensatie politiezones 10 adm. omkadering PWA 20 asbestfonds 10 samenw. akk. soc. econ. 14 verhoging min. pensioen 47
Reserves
RESERVES
6.000.000.000
5.000.000.000
4.000.000.000 Fonds toek. Gez. verzorging Reservefonds
3.000.000.000
2.000.000.000
1.000.000.000 0 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Components of the reserves in 2011 miljoen €
overdrachten w aardeverm eerde ring
opnam e overschotten
Procedure
Budget conclave
Receipt and expenditure budgets of entity I General explanatory note
Prefiguration of the social security budget
Management Committee Social Security - Global management Receipts and expenditure of the social security for salaried workers Receipts and expenditure for the health care scheme for salaried and self-employed workers merged since the year 2008
General scheme budget
eipt/Expenditure budget
Administrative budget
Economic budget
Provisional prefiguration GLOBAL MANAGEMENT
Multiyear estimates
Governmental measures / Economic budget
Prefiguration GLOBAL MANAGEMENT
Report to the Government
Economic budget
Budget control Report to the Government
Circular
Prefiguration administrative budget
Circular
Initial budget
Budget adjustment
Definitive budget
Establishment of the assignment budget Global Management Economic budget Planning bureau provides parameters BBP Tewerkstellingscoëf Arbeidsproductiviteit Groei loonmassa Index Looncoëf. Wagedrift
Apply growth hypotheses to the most recent results (FTE, average wage, salary costs) Calculation of the contributions Simulation of the contribution reductions 2012 Integration of the governmental measures Bijdragen 44.179.659 69,32% Value assessment of the reserve portfolio Rijkstoelage 6.182.066 9,70% Alternatieve financiering 13.399.728 21,03% Management expenses Diversen 239.707 0,38% Integration of other receipts (Finance) Beheerskosten -171.378 -0,27% Lening -100.938 -0,16% Integration of needs expressed by the public Beschikbaar 63.728.844 institutions of social security (OISZ/IPSS) Bijzondere toewijzingen -803.473 -1,26% 62.925.371 98,74% Special allocations
The emergence of the complexity
Features of the 1969 financing
Insurance aspect
State intervention
Contribution calculation in practically all sectors limited to a determined earnings limit In substitution for missing contributions Ancillary
Autonomous sectors enjoying proper reserves
The seventies and the first oil shock
The earning limits are raised and in the end gradually phased out. (As from the 4th quarter of 1982 all contributions are calculated on an unlimited wage)
The State allowances are linked to the State budget balance
Limited through organic laws The law of June 29 1981 on the general principles provides for new criteria Reduction of State allowances in sectors presenting a surplus
The eighties: the sectoral finance is abandoned
Establishment of the Financial Equilibrium Fund (FEF)
Wage moderation contribution, special contributions Arrears of the municipalities Transfers between sectors
The State allowances earmarked for the unemployment scheme are replaced by contributions, the State allowances in favour of the pension sector are abolished MARIBEL
The nineties and the convergence plan
Centralization of various financing sources at the NSSO within the scope of the Global Management Development of the alternative financing Ending of the sectoral financing Special financing mode for the health care branch
Features of the 2011 financing
The insurance aspect has practically completely disappeared The State intervention is very diversified and oriented towards a global balance. Unlike the objectives of the Global Plan the global financing is poorly transparent As from 2012 there is a structural deficit of 4 billion €
The impact of the economic crisis
Evolutie aantal arbeidsplaatsen en arbeidsvolume in VTE tov gelijkaardig kwartaal voorgaand jaar
VTE Effectieven
0000
0000
0000
0000
0000 0
0000
0000
0000
0000
0000
2004/1
2004/3
2005/1
2005/3
2006/1
2006/3
2007/1
2007/3
2008/1
2008/3
2009/1
2009/3
2010/1
2010/3
2011/1
Evolutie aantal arbeidsplaatsen en arbeidsvolume in VTE tov gelijkaardig kwartaal voorgaand jaar
eff_privé 'eff_overheid'
0.000
VTE_privé VTE_Overheid
0.000
0.000
0.000
0.000 -
0.000
0.000
0.000
0.000
2005/1 2005/2 2005/3 2005/4 2006/1 2006/2 2006/3 2006/4 2007/1 2007/2 2007/3 2007/4 2008/1 2008/2 2008/3 2008/4 2009/1 2009/2 2009/3 2009/4 2010/1 2010/2 2010/3 2010/4 2011/1 2011/2
Evolution of the employment figures per statute 1.400.000
1.200.000
1.000.000
800.000
2008 2009
600.000
2010 2011
400.000
200.000
Kasprofiel 2008 en 2011
0.000.000
0.000.000
0.000.000
0.000.000 0
0.000.000
0.000.000
0.000.000
0.000.000
1 16 31 46 61 76 91 106 121 136 151 166 181 196 211 226 241 256 271 286 301 316 331 346 361
2008 2011
After 40 years of crisis financing
From an autonomous mode of financing
Oriented towards the attainment of a certain level of social protection
To a constraint financing mode
Budget balance entity I Competitiveness Employment
감사 에
너
주의
