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THE ROMANIAN THE ROMANIAN SOCIAL SECURITY SYSTEM SOCIAL SECURITY SYSTEM IN THE GLOBAL CONTEXTIN THE GLOBAL CONTEXT
Doina Domnica PârcălabuGeneral Director
Chamber of Deputies
GLOBAL ECONOMY & GOVERNANCEGEG 2014
International Conference
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CONTENTSCONTENTS
Social security systemSocial security systemSocial insurance systemSocial insurance system
Pension systemPension systemUnemployment insurance systemUnemployment insurance systemHealth insurance systemHealth insurance systemAccidents at work and occupationalAccidents at work and occupational diseasesdiseases systemsystem
Social assistance systemSocial assistance systemGlobalization in social securityGlobalization in social security
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SOCIAL SECURITY SYSTEMSOCIAL SECURITY SYSTEM-
Key featuresKey features
- National safety net - National safety net - Instrument for economic growth - Instrument for economic growth - First place in the budgetary framework - First place in the budgetary framework - Exposed to escalating restraints - Exposed to escalating restraints - By large, provider of old-age benefits - By large, provider of old-age benefits and and contributory benefits contributory benefits - Subject to on-going reform processes correlated to - Subject to on-going reform processes correlated to European and World Bank practicesEuropean and World Bank practices
Main componentsMain components
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SSOCIAL OCIAL INSURANCE INSURANCE
SYSTEMSYSTEM
SOCIAL SOCIAL ASSISTANCE ASSISTANCE
SYSTEMSYSTEM
SOCIAL SECURITY SYSTEMSOCIAL SECURITY SYSTEM
Key featuresKey features
- Long tradition- Long tradition (1868 pensions for state officials) (1868 pensions for state officials)
- Contributiveness- Contributiveness
- Intra and inter-generational solidarity- Intra and inter-generational solidarity
- Both public and private social insurance systems- Both public and private social insurance systems
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SOCIAL INSURANCE SYSTEMSOCIAL INSURANCE SYSTEM
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Main componentsMain components
PENSION PENSION SYSTEMSYSTEM
UNEMPLOYMENT UNEMPLOYMENT INSURANCE INSURANCE
SYSTEMSYSTEM
HEALTH HEALTH INSURANCE INSURANCE
SYSTEMSYSTEM
ACCIDENTS AT ACCIDENTS AT WORK AND WORK AND
OCCUPATIONAL OCCUPATIONAL DISEASESDISEASES
SOCIAL INSURANCE SYSTEMSOCIAL INSURANCE SYSTEM
PENSION SYSTEMPENSION SYSTEM
Main sub-componentsMain sub-components
PillarPillar 11 Pillar Pillar 22 Pillar Pillar 33
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Private administrationPrivate administrationMandatoryMandatory
ContributoryContributoryFully-fundedFully-funded
DCDCIndividual accountsIndividual accounts
Public administrationPublic administrationMandatory Mandatory
Contributory Contributory Pay-as-you-goPay-as-you-go
DBDBRedistributiveRedistributive
Private administrationPrivate administrationVoluntary Voluntary
ContributoryContributoryFully-fundedFully-funded
DCDCIndividual accountsIndividual accounts
PENSION SYSTEMPENSION SYSTEM
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PillarPillar 11 - - Public pension systemPublic pension system
- Implementation of the reform- Implementation of the reform – – 20012001/2010/2010- Law - Law No.No. 19/200019/2000/Law No. 263/2010/Law No. 263/2010- Contribution rates - Contribution rates
- Employer: 20.8/25.8/30.8 according to working conditionsEmployer: 20.8/25.8/30.8 according to working conditions- Employee: 10.5Employee: 10.5
- - 5.6 5.6 million insured personsmillion insured persons- 5- 5.2.2 millionmillion retireesretirees- 1- 1.0.08 8 dependencydependency rate rate
PENSION SYSTEMPENSION SYSTEM
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PillarPillar 11 - - Public pension system (contd.)Public pension system (contd.)
-- Pension formula based on pointsPension formula based on points-- Old-age, invalidity, survivors pensions Old-age, invalidity, survivors pensions- Integration of special pension schemes in Pillar 1 - Integration of special pension schemes in Pillar 1 i.e. military, police, parliamentarians etc. i.e. military, police, parliamentarians etc. - Recalculation of special pensions- Recalculation of special pensions
PENSION SYSTEMPENSION SYSTEM
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PillarPillar 11 - - Public pension system (contd.)Public pension system (contd.)
- - Social Insurance BudgetSocial Insurance Budget - National House of Public Pensions – - National House of Public Pensions – record-keeping, budget record-keeping, budget
execution, calculation and payment of benefits functionsexecution, calculation and payment of benefits functions- National Agency for Fiscal Administration - National Agency for Fiscal Administration – collection function– collection function
((22004004,, WB WB approachapproach))
PENSION SYSTEMPENSION SYSTEM
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PillarPillar 22 – – Mandatory private pension systemMandatory private pension system
- - Law No. Law No. 411/2004411/2004- September - September 2007 – 2007 – starting of recruitment periodstarting of recruitment period
- Mandatory: belowMandatory: below 35 35 years of age years of age - Voluntary: belowVoluntary: below 45 45 year of ageyear of age
- May 2008 – starting of collection- May 2008 – starting of collection- Contribution rate- Contribution rate (from 0.5% up to 6%) (from 0.5% up to 6%)
- CurrentlyCurrently 4.5 4.5 % % subtracted from the employee pension subtracted from the employee pension contributioncontribution
- 8 pension funds- 8 pension funds- 6.2- 6.2 million participantsmillion participants
PillarPillar 22 – – Mandatory private pension system (contd.)Mandatory private pension system (contd.)
- Financial Supervisory Authority Financial Supervisory Authority – – supervision supervision functionfunction
- National House of Public Pensions – National House of Public Pensions – record-keeping record-keeping functionfunction
- National Agency for Fiscal Administration National Agency for Fiscal Administration – collection – collection functionfunction
PENSION SYSTEMPENSION SYSTEM
PENSION SYSTEMPENSION SYSTEM
• Net assets and participants in Pillar 2
PENSION SYSTEMPENSION SYSTEM
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PillarPillar 33 – – Voluntary private pension systemVoluntary private pension system
- Law No. Law No. 204/2006- June 2007 – starting of recruitment and collectionstarting of recruitment and collection- Contribution rate
- Maximum 15% (maximum 400 Euro/employee/yearmaximum 400 Euro/employee/year deducted in calculating income tax/corporate tax)deducted in calculating income tax/corporate tax)
- 10 pension funds - 0.3 million participants- Financial Supervisory Authority Financial Supervisory Authority – – supervision functionsupervision function
PENSION SYSTEMPENSION SYSTEM
• Net assets and participants in Pillar 3
UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE SYSTEMSYSTEM
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-- Law No. Law No. 76/200276/2002- Contribution rates- Contribution rates
- Employer: 0.5%Employer: 0.5%- Employee:Employee: 0 0..5%5%
- Active and passive measures- Active and passive measures- Unemployment Insurance Budget - Unemployment Insurance Budget - - National Agency for Labor Force EmploymentNational Agency for Labor Force Employment
HEALTH INSURANCE SYSTEMHEALTH INSURANCE SYSTEM
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- Law No. - Law No. 95/200695/2006- E.O.- E.O. No. No. 11558/20058/2005- Contribution rates- Contribution rates
- Employer: 5.2% + 0.85%Employer: 5.2% + 0.85%- Employee:Employee: 5.5.5% 5%
- Basic health care packet and sickness benefits - Basic health care packet and sickness benefits - Unique National Health Care Insurance Fund- Unique National Health Care Insurance Fund- - National House of Health InsuranceNational House of Health Insurance
ACCIDENTS AT WORK AND ACCIDENTS AT WORK AND OCCUPATIONAL DISEASESOCCUPATIONAL DISEASES SYSTEMSYSTEM
- Law No. - Law No. 346/2002346/2002- Law No. 263/2010- Law No. 263/2010- Contribution rates- Contribution rates
- Employer: between 0.15% and 0.85% according to risks Employer: between 0.15% and 0.85% according to risks classesclasses
- Medical rehabilitation and vocational rehabilitation, - Medical rehabilitation and vocational rehabilitation, invalidity and survivors pensions invalidity and survivors pensions
- Part of the Social Insurance Budget- Part of the Social Insurance Budget- National House of Public Pensions – - National House of Public Pensions – tripartite boardtripartite board
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SOCIAL ASSISTANCE SYSTEMSOCIAL ASSISTANCE SYSTEM
- Law No. 292/2011 and other specific regulations - Law No. 292/2011 and other specific regulations - Non-contributory- Non-contributory- State Budget and/or local budgets- State Budget and/or local budgets- State Inspectorate in the Social Assistance Field - State Inspectorate in the Social Assistance Field and/orand/or
thethe institutions at the local level of authority institutions at the local level of authority- Major family benefits- Major family benefits
- - State Allowance for ChildrenState Allowance for Children- - Family Support AllowanceFamily Support Allowance- - Child-Raising IndemnityChild-Raising Indemnity/Bonus for Insertion/Bonus for Insertion - - Placement AllowancePlacement Allowance
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- - Major Major guaranteed minimum resources benefitsguaranteed minimum resources benefits- Social Aid Social Aid - Heating Energy Allowance Heating Energy Allowance - Natural Gas Allowance Natural Gas Allowance - Solid Fuel or Oil AllowanceSolid Fuel or Oil Allowance
- - Major Major disability benefitsdisability benefits- - IndemnityIndemnity- Complementary Personal Budget- Complementary Personal Budget- State allowance for Children with handicap- State allowance for Children with handicap- Personal Assistant/Qualified- Personal Assistant/Qualified- Day centers - Day centers - Residential centers- Residential centers
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SOCIAL ASSISTANCE SYSTEMSOCIAL ASSISTANCE SYSTEM
GLOBALIZATION IN SOCIAL GLOBALIZATION IN SOCIAL SECURITYSECURITY
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No global system of social securityNo global system of social security Divergent national interests Divergent national interests
European Union solutionEuropean Union solutionOpen method of coordination Open method of coordination
Globalization of social difficulties needs Globalization of social difficulties needs globalization of social policiesglobalization of social policies
