Presentation of the Performance agreements system in the Belgian social security at the English Department for Work and Pension (UK), London, 17/09/2009

1. FPS Social Security DG Strategy & Research Performance agreements in the Belgian social security network July 2009

2. Context  Performance agreements (PA) in the Federal state of Belgium 1

3. Governance framework at the federal level Executive bodies : Federal Law of 16 March 1954 on the control on public institutions of general interest A B C D 1993 : Autonomous State’s owned enterprises / public anonymous corporation (PA) 1997-2003 : Public institutions from social security PA, ops autonomy, ind responsibility for CEO ’ 90 : privatization Central ministries 1999-2003 : Copernicus Reform Matrix structure, reorganisation in Federal Public services (FPS) 1 2 2008 : Policy plan Minister for Civil Service PA / operational autonomy for FPS and remaining A & B bodies To ex post control 3 4 2001-2003 Individual responsibility for CEO’s

4. Governance framework within the Regions and Communities Executive bodies : Federal Law of 16 March 1954 for the control on public institutions of general interest A B C 1993 : Autonomous State’s owned enterprises / public anonymous corporation (PA) General ministries Brussels Capital Region Within & unchanged Wallon Region French Community Within & developed 2004 : Management decrees for executive institutions : control, PA, CEO responsibility 2007 : Plan Marcourt (Walloon Region) reorganisation in departments, CEO-mandate Flemish Community Outside 2000-2008 : For a Better Management Policy Reform Reorganisation in policy fields, agencies, CEO-mandate, PA for agencies 2007 : PA for departments

5. Performance agreements in the Kingdom of Belgium Flemish Community 56 executive agencies 13 central departments Walloon Region 27 executive bodies or public enterprises French Community 6 executive bodies or public enterprises Brussels Capital Region 5 executive bodies or public enterprises Federal authority 11 State’s owned enterprises 15 executive institutions from social security

6. Contractmanagement within the Belgian Social Security network 2  Actual situation  Contracting parties  Options taken in the implementation of the PA

8. Who ? A PA between Social partners, CEO & Ministers Belgian State System of public social insurance covering social risks Employers’ organisations Trade unions Governance of the public institutions Performance agreements Appointed CEO Direct contributions

9. The contracting pandemonium Ministre de Tuelle Commissionar Policy Minister Support to the political level Control, following-up concertation Support Minister for Budget Commissionar Minister for Budget Support to the political level Control, following-up concertation Support FPS Budget Concertation en task division Intercabinet working groups Minister for Civil Service Social Security Public Institution Belgian government FPS Empl FPS Soc Ministre de Tuelle Policy Minister Mgt-board CEO Social Security Public Institution Mgt-board CEO Social Security Public Institution Mgt-board CEO Social Security Public Institution Mgt-board CEO Social Security Public Institution Mgt-board CEO SSPI’s College

10. Content : the PA will cover the operational performance of the institutions Effectiveness : policy implementation Efficiency : Value for Money Performance : execution daily activities

11. Output objectives

12. Fraud & Error inside the PA High topic for the 3d generation (2010-2012) Policy targets for tackling fraud & error (april 2009) Not only fraud but also errors Analyzing actual measurement system en developing new ones if necessary Report on fraud/error mechanisms inside your policy sector Making a risk analyse for your policy sector Updating the actual action plans against social fraud / error Cooperating with others Belgian departments or executive bodies Participating to the execution of international / bilateral agreements

13. A new relationship between Agency and the State L’Etat, c’est moi We are equal partners Performance agreements Primacy of politics Reaching a compromise Operational autonomy Contractual obligations Reporting Remaining control

14. The contractualisation process in brief 3  Negotiation  Yearly implementation cycle  First evaluation

15. Negotiation process Step 4 – Political discussions Step 6 Step 5 : 2 nd round of negotiation Step 2 – 1st round of negotiation Step 3 Step 1 Preparation Budgetary planning Year X Budget 1 st year – Budgets 2 next Years 2 nd project contract Quality check-up Final approval of the budgets Meeting Inst – Policy Minister Approbation, signing & publication Quality check-up Financial way Strategic way Technical way Preparation Negotiation Conclusion Quality check-up Approval Social Pertners Meeting Inst – Policy & Budget Ministers Meeting Institution – Policy Minister GOV decision Meeting Inst – Policy & Budget Ministers Meeting Inst-Policy Minister 3d project contract State’s expectations 1st project PA Communication to Policy Ministers June X-1 June-July X-1 August – October X-1 November-december X-1 Political / budgetary discussions

16. Implementation : yearly cycle Year Cycle Global & pluriannual evaluation by dpt Negociation of new agreements Pluriannual Cycle Year discussion 6 month report Mgt plan Adaptation Report State’s commissioners Year report

17. Evaluation 1st generation : goal attainment 1193 (I) /1204 (II) operational outputs 978 (I) /1136 (II) SMART enough to be evaluated

18. Weak points of PA Observed problems with the information quality inside PA and reports

19. Open questions about the system’s future 4

20. First question : how to maintain the innovative nature of PA ? Effectiveness : policy implementation Efficiency : Value for Money Performance : execution daily activities

21. Second question : how to match the pluri-annual PA with yearly budgetary constraints ? Respect for the (yearly) techniques of budgetary orthodoxy Preaching for pluri-annual performance en budget planning

22. Third question : how to guarantee the partnership and the primacy of politics at the same time? Changes in policy / political / budgetary cycles L’Etat, c’est moi

23. Fourth question : how to translate PA into individual performance ? Organizational performances Individual targets

24. Fifth question : How to transfer the system to central departments ? Covering production chain Covering study & policy departments