Social Security Agreements Research Articles

Global–regional interaction to extend access to social protection for migrant workers: Insights from ASEAN and MERCOSUR

AbstractUniversal access to social protection for migrant workers is emerging as a problematic issue in the implementation of free movement regimes at a regional level. This article focuses on the concept of regional governance as a possible mechanism to address the unsolved challenges of social security regimes to extend coverage. To this end, the article looks at current legal developments in two regional projects (ASEAN and MERCOSUR) to identify a creative approach to strengthen the development of national floors of social protection. The interest of using these case studies lies in exploring whether the regional integration process can play a major role in the progressive extension of social protection rights to migrant workers by facilitating the adoption of social security agreements.

The Gravity of High-Skilled Migration Policies.

Combining unique, annual, bilateral data on labor flows of highly skilled immigrants for 10 OECD destinations between 2000 and 2012, with new databases comprising both unilateral and bilateral policy instruments, we present the first judicious cross-country assessment of policies aimed to attract and select high-skilled workers. Points-based systems are much more effective in attracting and selecting high-skilled migrants than requiring a job offer, labor market tests, and shortage lists. Offers of permanent residency, while attracting the highly skilled, overall reduce the human capital content of labor flows because they prove more attractive to non-high-skilled workers. Bilateral recognition of diploma and social security agreements foster greater flows of high-skilled workers and improve the skill selectivity of immigrant flows. Conversely, double taxation agreements deter high-skilled migrants, although they do not alter overall skill selectivity. Our results are robust to a variety of empirical specifications that account for destination-specific amenities, multilateral resistance to migration, and the endogeneity of immigration policies.

Do bilateral social security agreements deliver on the portability of pensions and health care benefits? A summary policy paper on four migration corridors between EU and non-EU member states

This policy paper summarizes four corridor studies on bilateral social security agreements (BSSAs) between four European Union (EU) member and two non-member states, draws conclusions on their results, and offers recommendations. BSSAs between migrant-sending and migrant-receiving countries are seen as the most important instrument to establish portability of social security benefits for internationally mobile workers. Yet, only about 23 percent of international migrants profit from BSSAs and their functioning has been little analyzed and even less assessed. The four corridors studied (Austria-Turkey, Germany-Turkey, Belgium-Morocco, and France-Morocco) were selected to allow for comparison of both similarities and differences in experiences. The evaluation of these corridors’ BSSAs was undertaken against a methodological framework and three selected criteria: fairness for individuals, fiscal fairness for countries, and bureaucratic effectiveness for countries and migrant workers. The results suggest that the investigated BSSAs work and overall deliver reasonably well on individual fairness. The results on fiscal fairness are clouded by conceptual and empirical gaps. Bureaucratic effectiveness would profit from information and communication technology-based exchanges on both corridors once available.

Bilateral social security agreements and pensions portability: A study of four migrant corridors between EU and non‐EU countries

AbstractThe article summarizes four corridor studies on bilateral social security agreements (BSSAs) between four European Union (EU) members that were undertaken to assess their working and the establishment of benefit portability. BSSAs between migrant‐sending and migrant‐receiving countries are seen as the most important instrument to establish portability of social security benefits for internationally mobile workers. Yet, only about 23 per cent of international migrants profit from BSSAs and their functioning has been little analyzed and even less assessed. The four corridors studied (Austria‐Turkey, Germany‐Turkey, Belgium‐Morocco, and France‐Morocco) were selected to allow for comparison of both similarities and differences in experiences. The evaluation of these corridors’ BSSAs was undertaken against a methodological framework and three selected criteria: fairness for individuals, fiscal fairness for countries, and bureaucratic effectiveness for countries and migrant workers. The results for pension portability suggest that the investigated BSSAs work and overall deliver reasonably well on individual fairness. The results on fiscal fairness are clouded by conceptual and empirical gaps. Bureaucratic effectiveness would profit from information and communication technology‐based exchanges on both corridors once available.

The Fiscal Impact of the Trans-Tasman Travel Arrangement: Wither CER?

The trans-Tasman travel arrangement allows Australian and New Zealand citizens to work and live in each other’s country with minimal restriction and is seen as being a key part of the closer economic arrangement (CER) between the two countries. This arrangement has its origins back to 1920 and predates the CER agreement between the two countries in by over six decades. The travel arrangement and the CER agreement, is also complemented by a comprehensive double tax agreement (DTA) and social security agreement (SSA) between the two countries.The trans-Tasman travel arrangement was of little significance until the late 1960s when a significant pattern of migration emerged of New Zealand citizens to Australia. It has been estimated that by 2012 over 648,000 New Zealand citizens lived in Australia.The trans-Tasman travel arrangement underwent a significant modification when in 2001 Australia unilaterally enacted a new category of non-immigrant visa for New Zealand citizens settling there. While the basic principle of allowing New Zealand citizens the right to work and live in Australia with minimal restriction remained, migrants after February 2001 are no longer treated as permanent residents of Australia and are ineligible for a wide range of social assistance irrespective of the time they are resident in Australia. Nor are they eligible to apply for Australian citizenship unless they qualify for permanent residence status. Thus New Zealand citizens who have settled in Australia since 2001 remain essentially “guest” workers on an indefinite basis.This paper examines the fiscal impact arising from the trans-Tasman travel arrangement after the changes in 2001. It is suggested in this paper that the existing frame works underpinning the social security and income tax agreements between the two countries are inconsistent with the changes unilaterally made by Australia in 2001 to the trans-Tasman travel arrangement. The effects of these current policy settings mean that New Zealand citizens must return to New Zealand if they are in need of social assistance with the cost borne by the New Zealand taxpayer. Longer term if CER is to achieve the benefits sought from a single market, a more coordinated and bilaterally negotiated approach to tax, social security and labour movement needs to be adopted.

Cost Sharing of Pensions Paid Under the 2001 New Zealand-Australia Social Security Agreement: Should It Be Time for Change?

Starting in 1943 New Zealand and Australia have negotiated a series of social security agreements to coordinate and harmonise the payment of pensions to individuals who migrated between the countries. Until 2001 these were negotiated on a “host country” basis meaning the state where the claimant resided would largely meet the cost of any benefits paid to them even though the claimant had spent part of their working life in the other state. In 2001 a revised SSA was negotiated which adopted a shared funding model where each state pays a part pension to a claimant based on of how much of their working life the claimant has spent in each state. This is intended to produce a fairer allocation of pension costs when taking into account the tax that would have been collected by each state from the claimant. However, in calculating the amount of pension each state must pay two factors come into play which complicates the calculation. Firstly the total amount of the two part pensions payable to the claimant is determined solely by the domestic pension rules of the state where the claimant has retired. Secondly, the amount the other state must contribute to that pension is determined by their domestic pension rules, not the rules of the state where the claimant has retired. As a consequence the costs of meeting the overall pension may be disproportionately borne by one of the states.This paper will examine which state has the greatest liability for pension payments under the 2001 SSA by analysing the results obtained by a simple model. The results obtained show that Australia is liable for a greater than proportionate share of pension costs if low or moderately wealthy persons migrate to Australia from New Zealand or vice-versa. The reverse is true for more wealthy migrants, however, if their wealth exceeds a certain threshold New Zealand gains absolutely if they retire in Australia. The results obtained raise questions about the sustainability of the 2001 SSA especially if Australia’s economy continues to perform better than the New Zealand one.

SOCIAL SECURITY FOR TURKISH CITIZENS IN THE EUROPEAN UNION: The Scope of Association Council Decision EEC-Turkey No. 3/80 from the German Perspective

Social Rights o f Turks in Germany have been a political and legal issue since the beginning of the recruitment of Turkish workers by German companies in the years after 1960. The paperfocuses on the changes of judicial conflicts in different areas. At the beginning, questions of social protection for the aged were very much at the fore, as is evident in the disputes about the German-Turkish Social Security Agreement o f 1964 and its subsequent amendments (1969, 1974 and 1984) followed by the legal dispute at the Federal Constitutional Court about the refund ofpension scheme contributions. With the growing number of Turkish citizens living in Germany there has been a shift in the nature ofthe disputes: from pension-related social security claims to social law claims in national benefit law, particularly in the field offamily benefits. The main objective ofthese disputes was to achieve greatest possible equality of treatment in social security for Turkish citizens staying permanently in Germany. With reference to ACD 3/80, which is based on the EEC- Turkey Association Agreement of 1963, there have been a number of illuminating rulings ofthe European Court ofJustice which are investigated in this paper.

Feasibility of Negotiating Social Security Agreement with Other Countries: Example of the Labor Insurance in Taiwan

This research analyzes the social security agreements negotiated by other countries, and evaluates the feasibility of negotiating such agreement with respect to the Labor Insurance in Taiwan. In consideration of administrative and political factors, some prerequisites have to be achieved to realize such feasibility. Due to imminent demand to negotiate such agreement, some suggestions are provided. 1) Short-term strategies: Plan to analyze the impacts of double insurance exemption on stakeholders. 2) Medium-term strategies: implement ameliorated Labor Insurance statistics, try to complete the negotiation of social security agreements of double insurance exemption. 3) Long-term strategies: Plan to apply totalization mechanism among various social insurances.

The Social Protection of Temporary Migrant Workers: An Evolutionnary Process

For Temporary Migrant Workers (TMW) as workers, the international law of fundamental labor rights (freedom of association, as example) as well as the domestic law in relation to labor standards constitute de jure or de facto an immense patchwork. TMW are at the lower ladder of the typology of migrant rights organised around a mix of “immigration-labour law-social protection” rules: residency, length of stay, worker’s status, explicit statutory exclusion and other factors often deriving from statutory law constitute indirect discrimination against TMW. More specifically, TMW are in need of social protection. This paper pays attention to the right of TMW to social security and to social protection. Our starting point is the acknowledgment that, according to international human rights law, all TMW are travelling with a bundle of human rights. Our specific aim is to go beyond the wages workers’ issue that shaped the situation of migrant workers over time and to examine the need for social protection of TMW as a human right. A first section will propose a definition of those migrant workers qualified by the literature as ‘second wave’ of TMW. We believe their situation carries some specific manifestations of direct and of indirect discrimination. Section 2 revisits the issue of the definition of social protection as it seems to us that confusion still reigns when time comes to distinguish social security, social insurance and social protection. Section 3 offers an historical and technical overview of the normative evolution of the right to social protection of all migrant workers. Without disregarding the positive achievements realized by bilateral social security agreements in that domain, it concludes that the spirit of consecutive conventions and recommendations adopted by the ILO does not address the reality of fixed-term TMW. May be the 2006 ILO Multilateral Framework on Labour Migration, although not binding, is a more appropriate approach to address such needs. Section 4 examines the right of all migrant workers to social protection as guaranteed by the UN Convention on the Protection of the Rights of All Migrant Workers and Members of their Families, which entered in force in 2003. Surprisingly, this Convention does not provide appropriate answers to the needs of short term migrant workers whose needs often rely on a basic system of social protection that is not linked to wages and to contributory benefits. Finally, Section 5 examines the recently adopted UN CESCR General Comment 19 on the right to social security (2009). We believe that this Comment truly captures the essence of the right to equality of treatment that TMW should be able to benefit from. In conclusion, the crafting of the migrant workers’ right to social protection has truly been an evolutionary process and it is still unfolding. As more and more TMW are explicitly not welcomed to legally establish themselves in the country where they work, such evolution is welcomed.

Social Protection for Migrant Workers: National and International Policy Challenges

In the current global context, many migrant workers, and in particular women and irregular workers, are not - or are very inadequately - covered by social security and other social protection programmes. Current human rights standards related to migrant workers and families have so far had little impact on this situation. This article first examines various national approaches to extending social security to migrant workers in low-, middle- and high-income countries, such as through affiliation to the social security systems in countries of employment and countries of origin. It then attempts to assess the impact of regional and other international migration and social security agreements, particularly within the European Union. It also explores the potential impact of wider ratification of ILO and UN Conventions on migrant workers, which would ensure basic social and labour protection, in particular for irregular migrant workers. The article concludes with some key policy challenges for the future, including for improved regional and global governance.

Retirement and health benefits for Mexican migrant workers returning from the United States.

In the absence of a bilateral agreement for the portability and totalization of social security contributions between the United States and Mexico, this article examines the access to pension and health insurance benefits and employment status of older Mexican return migrants. We find that return migrants who have spent less than a year in the United States have a similar level of access to social security benefits as non-migrants. Return migrants who have spent at least a year in the United States are less likely to have public health insurance or social security benefits, and could be more vulnerable to poverty in old age. These results inform the debate on a bilateral social security agreement between the United States and Mexico to improve return migrants' social security.

Migration at a Time of Global Economic Crisis: The Situation in Spain

AbstractIn this paper, we offer an initial assessment of the impact of the economic crisis on Spain's migration flows. After a period of intensive economic growth and the ensuing immigratory appeal (1995–2007), Spain has been hit hard by the recession. This has modified the trends that had so far characterized foreign immigration in Spain. The impact of the economic recession has been particularly severe in the case of immigrant workers and, consequently, from an institutional point of view, the Spanish government has adopted various measures to restrict the arrival of new immigrants: it has reduced work permit quotas and it has modified the Foreign Residents Law, toughening residence permit requirements. It has also tried to encourage voluntary returns with a programme devised to provide assistance to immigrants originating from countries with which Spain has social security agreements. The response to this programme has, however, been very limited. Immigration flows have continued and rates of return have stayed low, although new trends are also detectable, such as a decrease in the number of irregular arrivals and a rise in informal employment, as well as differences in the impact of unemployment according to nationality and gender. This reveals the complexity of migration processes beyond the supply and demand of labour and the political will to regulate human mobility. Consequently, immigration patterns in Spain reveal the degree of complexity reached by human mobility, which has increased beyond the logic of the labour market and the government's attempts at regulating migration flows by means of institutional measures. The immigrants' hope of raising their standard of living and the socio‐economic differences between source and receiving countries, even at a time of severe economic crisis, do still serve as explanations for current migration networks, one of the key points in the current debate on international migration.

Labour Migration and Social Security Coordination: Effects on Welfare in Countries of Origin and Destination - The Cases of Macedonia, Serbia and Kosovo

This paper discusses the mutual effects of labour migration, social security coordination arrangements and the welfare states. It analyses country cases outside of the European Union’s coordination rules, but with a tradition of relatively functional social security coordination regimes. The assessment emphasises the importance of social security coordination. Apart from the obvious advantages for migrant workers, it shows clear advantages for both the countries of origin and destination. In that, the content of the social security agreements is equally important. It further identifies key points that require improvement. Finally, the assessment shows that reforms of the national social systems will affect the future of the social security coordination arrangements. The conclusion offers recommendations for policymakers in the region and the EU on how to improve governance of social security coordination.

Something is Better than Nothing: Enhancing the Protection of Indian Migrant Workers Through Bilateral Agreements and Memoranda of Understanding

India’s has had an impressive record recently in negotiating bilateral Memoranda of Understanding (MOUs) and Memoranda of Agreement (MOAs) on emigration of Indian workers, and social security agreements for Indian workers with a number of destination countries. The study undertakes a review of MOUs and MOAs on migration of Indian workers entered into by the Government of India with destination countries in the Gulf Cooperation Council (GCC) states, Jordan and Malaysia. The findings however, have broader relevance in the context of similar MOUs by other Asian origin countries.The study fails to find any concrete evidence that the MOUs and agreements on labour migration have contributed to improved governance of labour migration between India and concerned destination countries or significantly improve the protection of low-skilled Indian workers in the major destinations - the Gulf countries and Malaysia. The author argues that this is to be expected given that the MOUs contain only general provisions and leave out major issues of governance and protection. There has been no publicity and awareness creation on the MOUs signed, or any concrete follow on the provisions of MOUs after initial signing. The Joint Commissions proposed in the MOUs for monitoring and follow up of these agreements are virtually non-functional or non-existent. Above all, the lack of enforcement and monitoring mechanisms, and the continued predominant role of the private sector employers, and recruitment agencies and sponsors in hiring and control of workers mean that the MOUs have hardly any impact on the situation of the average low and semi-skilled Indian migrant worker. In all countries surveyed abuse and exploitation of Asian migrant workers including those from India has not changed. This should however, not imply that India is better off without MOUs. The existence of MOUs has a political value, and they have provided a firmer foundation for the country to build upon in this regard. In this sense, an agreement or MOU is better than a situation of no agreement or MOU. The author argues that the MOUs provide a broad framework, but that they need to be backed up by concrete initiatives in the areas of model employment contracts, strict workplace monitoring and enforcement of labour laws and regulations with adequate labour inspection procedures in place, dispute resolution mechanisms and mechanisms for access to justice by all migrant workers, and effective monitoring and regulation of recruitment agencies at both ends, and doing away with the sponsorship (‘Kafala’) system in GCC countries. While these may be harder to negotiate, they should nevertheless receive high priority if MOUs are to have any operational value in improving labour migration governance, and effectively protecting Indian migrant workers abroad. In this sense, multilateral and regional forums may serve as better platforms to move forward in these areas.

Social Protection for Migrant Workers in ASEAN

This paper examines the portability of social protection (old-age, retirement, and survivor benefits) in East Asia, particularly in the Association of Southeast Asian Nations (ASEAN), and analyzes possibilities for bilateral or multilateral cooperation in social security. It discusses evidence of growth of migration in East Asia and the growing need for portability of social security. It assesses existing national social security schemes in ASEAN countries and discusses how losses from lack of portability can be addressed, especially through social security agreements.

The Social Impacts of Emigration and Rural-Urban Migration in Croatia: 1991–2011

The paper explores the social impacts of emigration and rural-urban migration in Croatia, focusing on the period from 1991 to 2011. In this period, Croatia has experienced conflict and post-conflict-induced population movements, followed by a period of normalization of migration flows. The paper explores, in detail, labour migration and impacts on labour markets, in the context of skills shortages in Croatia. The role of remittances and social security agreements are also addressed. The paper addresses the problems of institutional support and of migration policy, making a series of recommendations for policy makers to minimize the social costs of migration and, instead, ensure that migration contributes to social development.

Análise da efetivação do acordo internacional da previdência social entre o inss e o inps de Brasil-Itália

The present paper approaches the international social security agreement between Brazil and Italy and the importance of this agreement, once it is not well known. Initially, it approaches the international health scene, with a historic of Brazilian and Italian health systems; the agreement exists between the countries and the analysis of the execution by the convenience method. The tendency of the International agreements is the worldwide globalization, ratifying the need of breaking juridical and political obstacles involving a great effort in the migratory treatment. The main goal of this international agreement is to guarantee the social welfare planned in the legislation of the two countries, including intending to create a common legal base regarding the obligations and rights of the beneficiary. Nowadays the benefit system is seen as a security tool and indispensable welfare to meet the needs of stability of the migrant workers, and in this trail, it becomes mandatory its divulgation.

Social Security Regimes, Global Estimates, and Good Practices: The Status of Social Protection for International Migrants

Access to social protection differs widely amongst international migrants. Using new global data on bilateral migrant stocks, social security law, and bilateral social security agreements, we quantify the status of social protection of international migrants as belonging to one of four different regimes. Results suggest that approximately one quarter of global migrants fall under the most favorable regime, but these are largely north–north migrants. On the other hand, migrants from developing countries, in particular south–south migrants, are in a far less favorable position, having to depend largely on informal networks and self insurance as a way of minimizing risk.

Three Approaches to Refunding Social Insurance Contributions to Temporary Migrant Workers: Is There an Attractive Policy Alternative?

This article discusses some legal aspects pertaining to the idea of refunding social insurance contributions to temporary migrant workers. It presents three possible methods of refunding contributions: a repatriation bonus, an individual pension reserve and an ‘opt-in’ scheme. These three schemes are tested on two countries: the Netherlands and the United States of America. The test reflects the interests of different stakeholders: the migrant workers themselves, the migrant workers' countries of origin and the host countries. The article concludes that whether refunding social insurance contributions to temporary migrant workers is an attractive policy alternative strongly depends on the national context. For specific social security programmes in the United States, the article suggests that contribution refunding might be worth considering. But on the whole it concludes that refunding contributions can only be a second best solution. Aiming for proper national standards of protection for migrant workers, supplemented by a network of international social security agreements still presents the most honourable course.

Coordination of social security programmes of developed and developing countries

The pattern of immigration to developed countries has changed dramatically. Immigrants are now predominately from developing countries. However, social security agreements, which coordinate programmes on a bilateral or multilateral basis and are designed to protect the social security rights of migrants, remain primarily restricted to the developed countries. The result is a lack of protection for many migrants. This is one of the major challenges facing social security programmes today, and one which must be addressed. A start to tackling this problem is to analyse the issues in the coordination of social security schemes of developed and developing countries. Four key elements are involved in this analysis: the existence of a technical basis for an agreement; reciprocity; the financial solvency of the schemes concerned; and the administrative capacity of the schemes to carry out the obligations inherent in an agreement.