Social Security Systems in France

Social Security Systems in FranceSocial warrantor system of rules was founded in 1910 in France. The world(a) scheme is presented in 1945. It was firstly intended to c everywhere the whole race. Social Security consists of a set of institutions that serve to protect individuals from the consequences of various events or pips, usually referred to as cordial risks. There atomic number 18 quaternion branches in the social security system in France. These be illness, old old age/ solitude, family and work accident/occupational disease. The domineering general scheme covers the general population and mostly the employees. A nonher one is the agricultural scheme that includes agricultural-sector employees and non-salaried workers against all risks. Moreover, the last one is the supplementary bonus schemes, ARRCO and AGIRC, which are compulsory for all close-sector employees affiliated to the general and agricultural schemes. Social security expenditures A historical perspective The table founds that total social security expenditures amongst 1980 and 2013. In 2009, public social expenditure amounted to 22.1% of GDP on average in the OECD area, but this varied considerably between countries. France had the highest count which is %32.10 of GDP in 2009. Last 8 years, expenditures increase gradually except 2011. In 2013, the total amount of social security expenditures is %33.02 of GDP.Social Security Payment system (Pay-as-you go or affluenty funded or a mixture), describe.In anunfundeddefined benefit aid, no assets are set aside and the benefits are paid for by the employer or other aid sponsor as and when they are paid. Generally many countries ensure unfunded pensions arrangements, workers have benefits paid directly out of underway taxes and social security constituents. We called this rule as a Pay-as-you-go method. Generally most European countries are applying this method. However, many countries like France, have a hybrid systems which pith they are partially funded. France set up the Pension Reserve Fund in July, 2001. The pension Reserve Fund, originally Fonds de Reserve pour les Retraites, has an aim of use funds from privatisalitions of state holdings to finance the future shortfall of the state PAYG pensions system.Data for Dependency Ratio (demographical recordic selective information) changes over time. Show the data on a graph and describe the trendAge dependency ratio is the set of dependents which are slew younger than 15 or older than 64 divided to the working-age population which are between 15-64 age. The birth rate in France decreased to 12.70 in 2011, and death rate increased to 8.50 in 2011. Population ages between 0-14 in France was withal decreased to 18.26 in 2012. The latest value for Age dependency ratio (% of working-age population) in France was 54.58 as of 2012. Over the past 51 years, the value for this indicator has fluctuated between 61.54 in 1961 and 51.31 in 1987.Income Distribution am ong the Aged PopulationThe population of France was estimated 64,612,939 in 2014 and the income per household is 2,140 nets/calendar month. France is one of only five OECD countries where income inequality and poverty have declined over the past 20 years. Income distribution among the aged population is in be showtime bulk near retirement-age (aged 51 to 65) have seen their incomes go up more speedily than any other group. In 2009, It decreased 28,306 to 28,700. Poverty rates for this group have fallen from 10% to 5%. They have also fallen for people aged over 65 (from 10% to 8%)Describe the Structure of Social Security Tax Employers and Employees contributions. Need also historical data for this.European countriess social security systems collect taxes to finance their system. In France, this is financed by social security contributions. Spesific social changes(prlvements sociaux and contributions sociales) are seemingly a allowance (to social security system), however mostly th ey are seemed part of the taxation system. The table below shows the contributions of the both employer and employee. They are payable. But we should consider that the rates has changes baceuse of typecast of industy, companies mass, kind of job and wages. The OECD says that, the employers social securtiy contributions are 30% of the employees salary in France. The employer social security contributions in France is one of the biggest in the world rank. This is because the calculation method is still below 50% of the significant number in the table. Collect Data for the Structure of Social Security Benefits (a measure such as the GRR) and show the re-distributional aspect of it (if present) on a graph.Social security benefits in France are Health Care Benefits, Sickness Benefits, Accidents at work, Occupational diseases, Family benefits, Maternity and Paternity benefits, Unemployment benefits, primary retirement benefits, and Death.The gross replacement rates are the most popular indicators in pension analysis. It refers to the retirement benefit per month divided by monthly labor earnings during the years before ones retirement. In other words, GRR is only applicable for pensionable persons. One first qualifies for a full public pension after 40 years of contribution. This has been since 2003. Before that, it was 37.5 years. In recent years, there have been increased plans to raise this to 41 years.Generally, the public pension aims for a replacement rate of 50 percent after a persons full career. There are penalties for missing years or a given number of months, such as a reduction of 1.25-5 percent of each missing year.The GRR in France is divided in triplet categories low earners average earners and maximum earners. The low earners get a 53 percent gross replacement rate, the average earners get 39.9 percent and maximum earners get 24.8 percent. This revolution in earnings across categories is based on an individuals pre-retirement earnings.Retirement and Age BenefitsRetirement Age did not change from 2012 to 2013 in France and it is 62. The retirement age increase 60 to 62 during the previous President Nicolas Sarkozy. The average retirement age of woman is 62.17 in 2009-2013. It reached its highest level (65) in 2012 and its lowest rate (60) in 2010. The French scheme provides for two compulsory retirement systems for employees. First of all basic retirement system, in other words social security retirement. This pension is implemented after the age 62. Another important point about retirement in France is pensions may be claimed later if desired. People who continue to work after the their retirement and paid contributions for more than the attributed period for a full retirement (depending on the year of birth) can be give a higher pension. There is also an opportunity to take an early retirement under certain restrictive conditions. primal retirement is possible at age 56 for people that born in 1952. If they born in 1952 and entered the labour force before at age 16, it means that they have formalise at least 43.5 years. Moreover, it is also possible at age 59 for people that stared working before age 16. They also made at least 43.5 years of effective contributions. Moreover, pensions will be increase in certain circumstancess those are raising child, awarded in respect of a dependent spouse and unalterable attendance allowance. southwardly, suplementary pension schemes are administrated by Association for Employees Supplementary Schemes (ARRCO) that covers employeees and General Association of Retirement Institutions for Executives (AGIRC) for executive staff. ARRCO includes both managerial and non managerial employees. In private sector, the pension system has two mandatory tiers an earnings-related public pension and occupational schemes, based on a points system. For the these types of retirement the age have to be 65-67 relying on birth date. However, there is also possible to claim early r etirement pensions of age of 55 or 57.The annual values of ARCCO and AGIRC points in 2011, 2012 and 2013 areFacts and data for Benefits for Family Relations Spouses/domestic partners Benefits, Dependent Childrens Benefit, Widowers Benefits, etc.Family benefits are granted for illegitimate, legitimate, adopted and foster children on condition that they are dependants of the beneficiary. Individuals should exceed age 20 to benefit from Family benefits.Family benefits include basic benefits for maintenance, early childhood benefit and benefits for special purpose. Basic benefits for maintenance are child benefit, flatrate allowance, and meanstested family income supplement. Child benefit is paid to families that live two or more dependent children in France. Since April 2014, child benefit rates are 32% of the monthly benefit base (129.99) for two children and it increases to 41% (166.55) for each additional child. Families that have at least troika children aged between three and 21 years can benefit from Family income supplement. In France, individuals should exceed age 20 to benefit from Family benefit but there is an exceptional situation which is flat-rate allowance. A flatrate allowance is paid to balance the financial loss incurred by families with three or more children when the eldest child turns 20.Early Childhood Benefit includes birth adoption grant, basic allowance, a supplement for free choice of working time and supplement for free choice of childcare. give up adoption grant is the coverage of expenses of a child birth or adoption.The amount of the grant is 927.71 for a birth and 1,855.42 for an adoption. The amount of basic allowance is 185.54 per month and it is paid after the birth/adoption grant. Supplement for free choice of working time has a purpose to allow family to stop working or work less and to be more interested with their child. The last early childhood benefit is a supplement for free choice of childcare and it is is paid to paren t using the services of a registered child-care worker or a baby sitter in the house.Benefits for Special Purpose includes education allowance for change children, back to school allowance, family housing allowance, moving allowance or daily parental attendance allowance for looking after a child torment from a severe disease or handicap.Widowers benefit This benefit paid to surviving widows. The surviving spouse without resources or whose resources are not sufficient benefits from a pension, based on the pension the deceased would have enjoyed or benefited. In the special schemes, the pension is paid regardless of age. In the general scheme, it is paid from 55. Before that age, widows and widowers are eligible for indemnification widowhood. The widow allowance is paid for two years.Unemployment Insurance Benefits ProgramThis program is only applicable for the industrious persons. To understand what this means, below is an explanatory list of requirements needed for one to qualif y for the unemployment benefits (EU 22)One must be un utilize through no fault of his/hersHe/she must be a registered jobseeker and willing to abide by a personalized back-to-work plan of actionHe/she must be genuinely and incessantly looking for workHe/she must be physically fit for workHe/she must not meet the full pension schemes, andHe/she must produced evidence of their insurance under unemployment insurance scheme for four of the last 36 months and 28 months for those over and under 50 years age respectivelyThose who qualify get a daily allowance consisting of fixed reference wage (and variable parts. The variable part ranges between 57.4 and 75 percent of the reference wage. This scheme allows a payment for a period of 4 to 24 months (for under-50s) and 36 months (for over-50s). It also depends on the job seekers preliminary insurance period and age (EU 22).Health Care Coverage for the eligible recipients and their dependents.In 2000, the World Health Organization declared that France selected the close to best general health care in the world. France health care system is financed by government National Health Insurance and France spent 11.6% of GDP on health care and $4,118 per capita. Even if this pass on health care is less than nine countries in the OECD (for example, Germany, Canada , Switzerland) , only two countries surpassed Frances health care spending as a percent of GDP of 11.6 %. Although the country has the second highest level of alcohol consumption in the world, Frances life expectancies is 82.2 which means one of the nightlong life expectancies in the world.Health care system in France is financed by two system. One of them is called Lassurance maladie which is a state controlled health insurance social security system. The other one is called Lassurance complementaire which is a separate voluntary health insurance system.Lassurance maladie is one the four branches of social security system. There are three main schemes that admin istred by NHI system according to occupation. First one is general scheme (CNAMTS Caisse Nationale d office Maladie des Travailleurs Salaris) which funds almost 75% of health spending. It covers approximately 85% of the population working in industry and commerce. It also includes retired individuals. The General Fund is administered by theCaisse Primaire dAssurance Maladie (CPAM). Individuals who live in France must register at their local CPAM for national health insurance coverage and people are issued with a carte vitale after registration. Card vitale is a second generation of smart card that indicates national insurance rights in electronic form. The carte vitale is not a means of payment, however it does enable the government to provide reimbursement immediately and it saves patients of the need for the huge amounts of form filling required under the old carte sociale system. Second one is agriculture scheme (MTA Mutualit sociale agricole) which supports occupational health and prevention of occupational risks, and conducting activities to health and social. It covers 6 per cent of the population, including farmers, agricultural employees and their families. Final one is for the self employed (RSI Rgime social des independents) that covers artisans, traders, industrialists and professionals.Social Security Reforms pending or implemented.To address the perceived payment gaps cited above, the Council of Ministers proposed the need to find a pension system balance (that is bring financial balance, and governance and fairness in the administration of the pensions scheme). This would ensure the adaptation of the indexation rules increased contribution period for full pension cut back employers social contribution, among others (Embassy of France in London 1).In relation to the welfare schemes, President Francois Hollande is reportedly currently looking for ways for reforms in pension, unemployment payments and family benefits. So far, the government has relied on tax increases to account for the huge deficits discussed above. However, in the future the government might increase charges on workers and employers, as well as taxes on pensioners raise the contribution period before one qualifies for a full pension, among others (The Economist, 2013).Problems and issues with the system.A number of problems and issues have been raised over Frances social security system. In relation to pension scheme reforms, for instance, many cited financing gap between private sector employees and civil servants. The latters payments were included as part of state expenditure, placing them at an advantage over the former group. Therefore, there have been calls to address what many have come to see as financing gap in pension schemes for those in the private sector and civil servants (Embassy of France in London 1).There have also been fears concerning the sustainability of the systems welfare schemes. The rising deficits are a cause for alarm. The def icits of these three on the countrys general social security systems are on the increase. By 2020, the deficits of the pension, family and unemployment pay are expected to reach 20.9 billion (about $25 billion), 2.6 billion and 4.8 billion respectively (The Economist, 2013).REFERENCESEmbassy of France in London. The French Pension Reform- key Elements, Oct. 10, 2013. Web, June 18 2014European Union. Your Social Security Rights in France, 2013. Web, June 18 2014 OECD. Retirement-Income Systems in OECD Countries France, OECD, 2013. Web, 20 June 2014The Economist. Must We Work Harder? June 22, 2013. Web, June 18, 2014Poindessault-Bernard, L., Zuterek, A. (n.d.). Social security systems around the globe.. Retrieved June 20, 2014, from http//www.pwc.be/en_BE/be/publications/2013/social-security-booklet-sept2013.pdfLorganisation de la Scurit sociale. (2011, January 5).Le portail du service public de la Scurit sociale / Usagers /. Retrieved June 11, 2014, from http//www.securite-sociale.f r/L-organisation-de-la-Securite-sociale?type=part