Organisation and Delivery of Social Protection

Funding of Social Protection

In France, social protection is financed by earnings-related contributions and – to a smaller extent - taxation. In the case of salaried workers, contributions are deducted directly from gross salary and shared by the employee and the employer (with the exception of contributions to the family benefits scheme which are paid in full by the employer). The breakdown in terms of social protection funding sources is 70% in contributions, 17% in taxation and 13% in state contributions.

The taxation share has grown over the past few years, with the introduction of two special taxes: the general social contribution (CSG, contribution sociale généralisée) – which outstrips personal income tax– and the contribution towards the reimbursement of the social debt (CRDS, contribution au remboursement de la dette sociale). Both taxes are levied on all incomes, professional earnings included.

The total amount spent on social protection each year is over €470 billion, 43% of which is devoted to retirement benefits. Recent years have seen the emergence of a debate about funding mechanisms to reduce employer payroll contributions, since they tend to push up labour cost at the expense of job creation.

__________________________________________________

Organisation of Social Welfare

• Social security

The different social security organisations – with the exception of the national funds – are private-sector agencies with a public service remit. The boards of the schemes for salaried workers are composed in equal parts of employers’ and employees’ representatives. The national social security funds operate under the supervision of the Ministry for Health and Solidarity and the Ministry for the Economy and Finance, while the regional directorates for Health and Social Affairs (DRASS) oversee the local funds.

Each year since the reform of 1996, parliament passes a Social Security Financing Act (LFSS) which sets the general framework for social security spending and a national target ceiling for health insurance expenditure (ONDAM). The target budget is then divided up between the hospital and private practice sectors. The 1996 reform also instituted the long-term agreements on objectives and management (COG) signed by the general scheme health insurance funds and the government. These set targets for criteria like productivity, quality and services for the public, and identify the means to achieve them.

The general scheme:

At the national level, the general social security scheme (Régime général) is administered by five bodies:

- The National Health Insurance Fund for Salaried Workers (CNAMTS), the sickness and, industrial injuries branch of the scheme, represented on the ground by 16 regional health insurance funds (CRAM), 128 local health insurance funds (CPAM), and 4 general social security funds (CGSS) in the overseas departments,
- the National Family Fund (CNAF), represented on the ground by 123 local family funds (CAF),
- the National Old Age Pension Fund for Salaried Workers (CNAVTS), represented on the ground by the CRAM and the CGSS,
- the Central Agency for Social Security Funds (ACOSS) – the branch of social security responsible for collecting contributions - represented on the ground by the 104 URSSAF agencies and the CGSS.
- The National Association of Social Security Funds (UCANSS), which provides training, manages assets and performs various other tasks for the social security network as a whole.

The agricultural scheme (MSA) provides coverage for over four million people and is France’s second largest social protection scheme with 78 funds serving one or more départements.

The scheme for the self-employed (RSI), which incorporates the various schemes for self-employed non-agricultural workers, including about 15 old-age pension schemes for independent professional people.

The schemes for public-sector workers and the special schemes provide coverage for about six million workers and their families.

• Unemployment insurance

Unemployment insurance is managed by the National Union for Employment in Trade and Industry (UNEDIC), which coordinates the Associations for Employment in Trade and Industry (ASSEDIC) operating in each département, and the Paris Region ASSEDIC grouping (GARP). In 2003, the amount paid out in unemployment benefits was €26.2 billion.

Sources:
• Adecri: "La protection sociale en France"
• E. Arié: "Système de santé, mode d'emploi"
• J-C. Barbier, B. Théret: "Le nouveau système français de protection sociale (La Découverte)
• J-M. de Forges: "Le droit de la santé" (PUF)
• J-J. Dupeyroux, X. Prétot: "Droit de la sécurité sociale" (Dalloz)
• F. Kessler: "Droit de la protection sociale" (Dalloz)
• La Documentation Française: "La protection sociale en France"
• B. Palier: "la réforme des retraites"
• Internet sites of the main social welfare and health-care sector players.

Imprimer