Improved coordination of social security legislation also for non-active persons

As of 1 May 2010, people who are temporarily not in employment can travel elsewhere in the European Union without worrying about losing their accrued entitlement to social security. On that day, two new EU regulations will come into force aimed at improving coordination between the social security systems of the Member States also for so-called non-active persons. This was already the case for employees and self-employed persons. On Wednesday, information about the new regulations was presented to Piet Hein Donner, Minister of Social Affairs and Employment.

The social security regulations prevent, among other things, a person from losing his entitlement to social security or from becoming uninsured when he moves to another EU Member State. It also protects people from being double insured and paying double contributions. The rules apply to employees, self employed persons and non-active persons subject to social security legislation in one or more Member States.

Member States of the European Union all have different social security systems. The coordinating agreements in the regulations ensure that these differences do not hinder the so-called free movement of employees. The Netherlands benefits from these arrangements due to its strong dependence on international trade: foreign nationals come to the Netherlands, but Dutch nationals also go abroad.

The agreements on European cooperation in cross-border social security have been recorded in regulations for over fifty years. These regulations are intended to promote free movement of employees by coordinating social security agreements when people go to work in another country. The new social security rules that come into force on 1 May consist of a basic regulation (EC 883/2004) and an implementing regulation (EC 987/2009). The Insurance Committee has prepared an explanatory memorandum on the subject. In the committee, Dutch implementing bodies like the Social Insurance Bank (SVB), the Institute for Employee Benefit Schemes (UWV), the Health Care Insurance Board (CvZ) and Tax and Customs Administration work together with various Ministries.