1. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
by Mark Musu’
Director
(Strategic Development & International
Relations)

2. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
In the next 30 minutes:
• Brief historical review pre and post
EU accession
• The situation today as we start to
implement the new regulations
• Future challenges and commitments

3. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Brief historical review pre-accession
1956
• First agreement signed with the UK
– Covered Retirement and Widows Pensions
– Short-term benefits: sickness, unemployment
and occupational injury

4. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
1956
• First agreement signed with the UK
– Agreement reviewed in 1996
- Invalidity Pensions and posting of workers were
now covered as well
- Introduced technical changes in the way pensions
are assessed

5. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
1990
• Agreement signed with Libya (replaced an
earlier one signed in 1972)
– Very different in nature to all agreements Malta has
– Does not cover entitlement to or payment of benefits
– Covers only payment of contributions of Maltese
persons working in Libya (Maltese persons working in
Libya pay contributions only in Malta)

6. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
1991
• Agreement signed with Australia
– Covers only Retirement, Invalidity, and Widow
Pensions
– Does not cover short-term benefits and posting of
workers
– Reviewed in 2004: no major changes for Malta

7. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
1992
• Agreement signed with Canada
– Covers Retirement, Invalidity, and Widow
Pensions
– Covers also posting of workers
– Does not cover short-term benefits

8. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
2003
• Agreement signed with the Netherlands
– Very comprehensive compared to previous
agreements
– Covers Retirement, Invalidity, and Widow Pensions
– Covers also short-term benefits: sickness and
unemployment, maternity benefits, children allowance
and posting of workers

9. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Brief historical review post-accession
2004
• An International Relations Unit (IRU) was set up
within the Department of Social Security (DSS)
– Coordination of Council Regulations (EC) 1408/71
and (EC) 574/72 (fully implemented in 2004 with EU
accession)
– To provide advice on EU & international social
security issues

10. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
2005
• Expansion of the IRU within DSS
– Full coordination of Regulations (EC) 1408/71 and
(EC) 574/72 and bilateral agreements (including
operational duties)
– Dealing with all EU & international social security
related issues and queries
– All work related to international relations in DSS finally
centralized

11. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
2005
• Expansion of the IRU within DSS
– EU funded Twinning Project with UK to enhance our
capacity building
– Developed an IT system for the generation of E-
Forms
– Information campaign across the island re new social
security rights in EU
– Started to face new issues – especially cross-border
insurability issues – transport workers, mariners,
airline personnel

12. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
The situation today
• The focus of our business operations in
international relations has gradually shifted from
pensions to other branches of social security –
mainly insurability of non-Maltese workers,
unemployment and sickness (benefits in kind
under the responsibility of the Health
Department)

13. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Incoming Pension Claims (2006-2009)
UK = 337 (11.7%)
Rest of EU = 272 (9.5%)
Non-EU = 2268 (78.8%)
Incoming pension claims from EU MS
to Malta almost doubled!

14. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Outgoing Pension Claims (2006-2009)
UK = 276 (15.8%)
Rest of EU = 158 (9.1%)
Non-EU = 1311 (75.1%)
Outgoing pension claims from Malta to EU MS
increased by more than a third!

15. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Posted workers – Incoming E101s
2006 = 76 2008 = 66
2007 = 97 2009 = 160
• Sharp increase registered in 2009
– 142% over 2008
– Double the average of previous 3 years

16. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Posted workers – Outgoing E101s
2006 = 143 2008 = 161
2007 = 118 2009 = 114
• Drop registered in 2009
– 29% over 2008
– 10% of average of previous 3 years

17. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Posted workers – E101s
Incoming - Outgoing
2006-08 = 239 2006-08 = 422
2009 = 160 2009 = 114
• Situation reversed in 2009
– Outgoing E101s consistently higher from 2006-2008 – 76%
higher
– In 2009, incoming E101s were higher by 40%

18. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
Some stats
Incoming UB claims – Art.69
2004 = 11 2007 = 27
2005 = 27 2008 = 25
2006 = 16 2009 = 44
• Incoming UB claims gradually increasing
• In 2009 incoming UB claims were almost double the average of the
last 6 years – effect of the recession?
• Of all EU citizens who exported their UB to Malta from 2006-2009,
28.6% managed to find employment in Malta - but ‘only’ 15.9% in
2009!

19. Farewell to Reg (EC) 1408/71 –
its impact on social security in
Malta
Future challenges and commitments –
EU Regs and other
• Regs 883/04 and 987/09 – new obligations and
requirements
• Electronic Data Exchanges by May 2012
• Transfer of pension rights (of Maltese citizens working in
EU institutions)
• Constantly monitor and research international policy
developments, especially in the EU - Social Agenda,
Lisbon Strategy, Social Inclusion policies

20. Farewell to Reg (EC) 1408/71 –
its impact on social security in
Malta
Future challenges and commitments –
EU Regs and other
• Increase in the movement of workers from and/or to Malta – both
EU citizens and TCNs;
• An increase in beneficiaries as a result of the bi-lateral agreements
with other countries other than the EU;
• Conclusion and implementation a bilateral agreement with New
Zealand;
• Launch a Data Exchange and Life Certification System with
Australia and the UK;
• Malta’s ratification of the Revised European Social Charter and
possibly in future the Code of Social Security

21. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
How can Malta (DSS) do all this?!
• Malta is a small country (the smallest in the EU) but its
legal and administrative obligations are the same as
those of the larger EU Member States
• The DSS/IRU requires huge & urgent investments in its
HR (in specialized areas such as policy research and
legal analysis)
• DSS needs to invest more in its IT capabilities to be able
to cope with its future challenges

22. Farewell to Reg (EC) 1408/71 –
its impact on social security in Malta
THANK YOU FOR YOUR
ATTENTION!