security: a general principle of social security law in europe

Security: A General Principle of

Social Security Law in Europe

Edited by Ulrich Becker, Danny Pieters, Friso Ross, Paul Schoukens

CHAPTER I

I

2

2.1

2 . 2

2.2.1

2.2.2

2-32.3.I2.3.2

33-1

3.I.I3.1.2

3-2

3.2.13.2.23.2.3

3-33-4

CHAPTER 2

Parti1

1.1

I.I.I

1.1.2

1.1.3

1.1.4

1.1.5

1.1.61.2

!-3

1.42

CONTENTS

ContentsAuthors

Introduction to the General Principles of Social SecurityLaw in EuropeUlrich Becker

IntroductionTheoretical background: on legal principles - a comparativeviewPrinciples as explanations of legal structuresPrinciples and the methodology of legal comparisonStarting point: functionalityOutcome: legal comparison and legal doctrinePrinciples and social security lawResearch in other fields of lawPeculiarities of social security lawResearch agendaPreliminary remarksFunctional approachUnderlying concept and limitationsA catalogue of general principlesSolidarity: the collective aspectIndividual responsibility: the individual aspectProtection: the paternalistic and procedural aspectSecurity as a general principle: the time dimensionQuestionnaire

Country Report on BelgiumDanny Pieters and Paul Schoukens

Legislative AspectsState obligation to introduce and maintain social securityArticle 23 of the Belgian ConstitutionContentsContent analysisDirect effectCorresponding obligationsStandstill principleConclusionOther constitutional provisionsStatute holding the General Principles of Social Security forWage EarnersPractical relevance of international law instrumentsLegal duties to respect a 'position' of the individual

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SECURITY: A GENERAL PRINCIPLE OF SOCIAL SECURITY LAW IN EUROPE

2.1 Property right and the Belgian Constitution 382.2 Property right and the ECHR 402.3 The principles of confidence and legal security; 'acquired

rights' in the Belgian social security legal order 423 Legal changes and transitional measures 434 Executive-branch regulations 46

Part II Administrative Aspects 471 Discretionary powers of the administration and their limits 471.1 Discretionary powers in social security law 471.2 Policy rules in answer to the attribution of discretionary

powers 491.3 Limits to the exercise of discretionary powers by social

security institutions 511.3.1 Preventive legal protection 521.3.2 Repressive (judicial) legal protection 562 Administrative decisions and legal changes 593 Binding effects of administrative decisions 593.1 Wrong decision as to affiliation 603.2 Wrong decision leading to undue benefit payment 613.3 Social ruling 624 Consequences of non-information/incorrect information 63

CHAPTER 3 Country Report o n the Czech RepublicMart in Stefko 67

Part I Legislative Aspects 691 State obligation to introduce and mainta in social security 691.1 Constitutional framework of social security law 691.2 Constitutional power guaranteed to social security law 701.3 The impact of international law on Czech social security law 712 Legal duties to respect the position of the individual in the

Czech social security system 733 Legal changes and transitional measures 753.1 The standards of transitional measures 753.2 Fundamenta l changes to social security 773.3 The increase in ret i rement age 793.4 The abolishment of employment categories 804 Executive-branch regulations (the tertiary legislation) 825 Conclusion 83

Part II Administrative Aspects 841 Discretionary power of the administrat ion and its limits 841.1 The definition of discretionary power 841.2 The common types of discretion 861.3 Limits of discretion 87

i-4 The discretion without judicial control and an individual'sprotection against the use of discretion in hardship clause 88

2 Administrative decisions and legal changes 892.1 Valorisation 912.2 Introduction of new benefits systems or abolishment of old

benefits systems 913 Binding effects of administrative decisions 924 Consequences of dearth or inaccuracy of information 93

CHAPTER 4 Country Report o n GermanyUlrich Becker and Simone von Hardenberg 97

Part I Legislative Aspects 991 State obligation to introduce and maintain social security 991.1 Preliminary observation 991.2 German Constitution (Basic Law) 1001.3 International law 1042 Legal duties to respect a 'position' of the individual 1052.1 Preliminary note 1052.2 Right to property (Art. 14 para. 1 GG) 1072.1.1 General requirements for the scope of protection

(applicability) 1072.2.2 Protected positions in social benefits law 1092.2.3 Restrictions - further detailed questions regarding pension

insurance m2.2.4 Justification 1122.2.5 Interim findings 1142.3 Protection of marriage and the family (Art. 6 para. 1 GG) 1152.4 Equality before the law (Art. 3 para. 1 GG) 1163 Legal changes and transitional measures 1173.1 Protection of confidence (legitimate expectations) 1173.2 Retroactive legal measures n83.3 Transitional regulations "93.4 Examples from jurisdiction 1204 Delegated legislation 1224.1 Forms and legal basis 1224.2 Significance for social security law 123

Part II Administrative Aspects 1251 Discretionary powers of administrative bodies and

their limits '251.1 Forms and scopes of action in social administration 1251.2 Discret ionary powers of adminis t ra t ive bodies a n d judicial

review 1272 Adminis t ra t ive decisions a n d legal changes 131


2.1 General s tar t ing point: lawful decisions versus legitimateexpectations 131

2.2 Special regulat ions for legislative a m e n d m e n t s 1323 Binding effects of administrat ive decisions 1363.1 General: system of a n n u l m e n t regulations 1363.2 Revocation of an unlawful disadvantageous administrative

act (s. 4 4 SGB X) 1363.3 Revocation of an unlawful advantageous administrative

act (s. 45 SGB X) 1383.4 Withdrawal of lawful administrat ive Acts

(s. 4 6 , 47 SGB X) 1413.5 A n n u l m e n t of administrat ive acts with pe rmanen t effect

in the case of substantially altered ci rcumstances(s. 4 8 SGB X) 142

4 Consequences of non-information / incorrect information 143

CHAPTER 5 Country Report o n GreeceOlga Angelopoulou 147

Part I Legislative Aspects 1491 The obligation of t he State to introduce and main ta in social

security 1491.1 The obligations of t he State and the rights of individuals 1491.2 'Social acquis ' 1521.2.1 'Social acquis ' and 'sustainable social policy' in the field of

social insurance 1531.2.2 'Social a cqu i s ' i n t he field of social assistance 1551.3 Other l imits in the field of social insurance 1571.3.1 Constitutional guarantee of the social insurance institution 1571.3.2 Compulsory social insurance as an exclusive state

responsibility 1581.3.3 Gender equality 1601.4 Other l imits in the field of social assistance 1641.4.1 Constitutional guarantee of family as an institution 1641.4.2 The mean ing of the t e rm 'family' with the Greek

Constitution and its consequences for gender equality 1641.5 Other limits in the field of health protection 1652 Legal duties to respect the right of the individual 1672.1 The concept of 'es tabl ished ' r ights 1672.2 Retrospective law may not abolish adjudicated claims 1672.3 'Established' rights and their protection from retrospective

law 1692.4 'Possessions' under the meaning of Art. 1 of the Protocol 171

2.4.1 Possessions and retrospective legislation 1712.4.2 Possessions and pension indexation 172

2.4-3 Possessions and discrimination on grounds of nationality 1732.4.4 Possessions and the loss of pension rights as a disciplinary

sanction 1732.4.5 Possessions and the 'special contribution' on pensions 1742.4.6 Rights and expectations not falling under the meaning of

'possessions' of Art. 1 of the Protocol 1752.5 Equality of law and the 'pure contributory character ' of

social insurance benefits 1763 Legal changes and transitional measures 1783.1 Exemptions from matu re expectations 1783.2 Optional exemptions from mature expectations 1793.3 Transitional periods 1803.4 The distinction between 'formerly' and 'newly' insured

persons 7803.5 The diverse implications of mergers and unifications for

social insurance rights and expectations 1813.6 Legislation removing discrimination on grounds of sex

in the field of survivors 'pensions 1834 Executive-branch regulations 185

Part II Administrative Aspects 1861 Discretionary powers of the administrat ion and their limits 1861.1 Discretion in the field of social insurance 186r.2 Discretion in the field of social assistance 1891.2.1 Short reference to the s t ructure of the Greek social

assistance system 1891.2.2 Social assistance benefits in cash 1921.2.3 Social assistance services 1952 Administrative decisions and legal changes 1982.1 Statutory obligation to a n ex-officio repetition of the

administrative process 1992.2 Statutory obligation to repeat the administrative process if

requested by the insured 2002.3 T h e obligation to repeat the administrative process as a

general principle of social insurance law 2033 Binding effects of administrative decisions 2073.1 T h e general principle of ' formal ' insurance 2083.2 The general principle on the prohibition of reclaiming

unduly paid benefits 2134 Consequences of non-information/ incorrect information 216

CHAPTEK 6 Country Report on IcelandCynthia Jeans, Gucmy Bjork Eydal and Stefan Olafsson 227

Part I Legislative Aspects 229Introduction 229


1 State obligation and the Constitution of the Republicof Iceland 229

1.1 Constitution of the Republic of Iceland 2291.2 International law and conventions 2301.3 Rights to appeal 231

2 Legal duties to respect a position of the individual 2322.1 Property rights 2332.2 Respect of legitimate expectations 2342.3 Respect of confidence 2343 Legal changes and transitional measures 2353.1 Reduction of protection of previously privileged groups 2353.2 Equality for m e n and women 2363.3 Old-age pension schemes 2383.4 Occupational injury insurance 2383.5 Health care schemes 2393.6 Disability schemes 2393.7 Social assistance 2393.8 Unemployment 2403.9 Social assistance under local authorities 2413.10 Policies for children and families with children 2414 The executive branch regulations 242

Part II Administrative Aspects 243Introduction 243

1 State Social Security Institute of Iceland 2432 Administrative branches of the State Social Security

Institute 2443 The Social Security Ruling Committee 2453.1 Binding effects of t he Social Security Ruling Committee 2473.2 Social Security Ruling Committee decisions 2473.3 Flow and availability of information 2484 Administration of Internal Revenue in Iceland 2495 Administrative branches of Unemployment Benefit Fund 2506 Unemployment Insurance and Labour Market Measures

Complaints Committee 2527 Administration of Maternity/ Paternity and Parental

Leave in transition 2528 The Maternity/Paternity and Parental Leave Complaints

Committee 2539 Conclusion a n d discussion 254

CHAPTER 7 Country Report o n IrelandMel Cous ins 261

Part I Legislative Aspects 263

1 State obligation to introduce and maintain social security 2631.1 Legislation 2631.2 Regulations and guidelines 2631.3 The Irish Constitution 2641.4 International law 2662 Legal duties to respect a 'position' of the individual 2672.1 A contractual right to benefits 2672.2 Legitimate expectation 2682.3 Proportionality 2743 Legal changes and transitional measures 2754 Executive-branch regulations 2765 Conclusion 276

Part II Administrative Aspects 2771 Discretionary powers of the administration and their limits 2772 Administrative decisions and legal changes 2793 Binding effects of administrative decisions 2803.1 Decisions 2813.2 Revision of decisions 2823.3 Appeal 2833.4 Further appeal and revision 2843.5 Overpayments and repayments 2853.5.1 Overpayment 2863.5.2 Repayment 2883.5.3 Discussion 2903.5.4 Code of practice 2913.5.5 Conclusion 2924 Consequences of non-information/ incorrect information 292

CHAPTER 8 Country Report o n ItalyMatteo Borzaga 297


1 State obligation to introduce and maintain social security 3001.1 The role played by the Italian Constitution 3001.2 The impact of national statute laws 3041.3 International social security law 3082 Legal duties to respect the 'position' of the individual 3093 Legal changes and transitional measures 3134 Executive-branch regulations 320


1 Discretionary powers of the administration and their limits 323


1.1 Discretionary powers of the administration in the field of socialinsurance 325

1.2 Discretionary powers of the adminis t ra t ion i n the field of socialassistance 327

2 Administrat ive decisions a n d legal changes 3333 Binding effects of adminis t ra t ive decisions 3354 Consequences of non-informat ion or incorrect information 342

CHAPTER 9 Country Report o n LuxembourgFanny Etienne-Robert 347

Part I Legislative Aspects 3491 State obligation to introduce and main ta in social security 3491.1 Consti tution 3491.1.1 Obligations of the State 3491.1.2 Subjective rights 351

1.2 Limitation of change 352

1.2.1 Due to the Consti tut ion 3521.2.2 Due to Internat ional / European law 3522 Legal duties to respect a 'position' of the individual 3532.1 The 'acquired rights' as 'social acquired rights' 3542.2 'Acquired rights' strict sensu 3553 Legal changes and transit ional measures 3564 Executive-branch regulations 358

Part II Administrat ive Aspects 3581 Discretionary powers of t he adminis t rat ion and their l imits 3581.1 Case law 3601.2 Legislative evolution 3601.3 Control of Lawfulness 3612 Administrat ive decisions and legal changes 3612.1 Classification of the different possible provisions 3612.2 Ombudsman and fairness 3623 Binding effects of administrative decisions 3633.1 Change in the situation of the beneficiary and absence of

information or misinformation of the administration inquestion 363

3.2 Other cases/mistakes by the adminis t rat ion 3644 Consequences of non- informat ion/ incorrect information 3644.1 Juridical sanction 3644.2 Recommendations as sanction: the moral authority of the

Ombudsman 3654.2.1 General recommendation on information on users and good

functioning of the administrat ion 3654.2.2 Complaints and recommendation on specific domain of

information 366

CHAPTER io Country Report on the NetherlandsGijsbert Vonk and Bert Marseille 369

Part I Legislative Aspects 3711 State obligation to introduce and maintain social security 3711.1 Social security as a fundamental social right 3711.2 Impact of international law 3742 The legal duty to respect the position of the individual 3762.1 Constitutional protection of acquired rights and vested

interests 3762.2 Social security case law 3783 Legal changes and transitional measures 3813.1 Theoretical framework 3813.2 Transitional social security law in practice 3834 Executive branch regulations 383

Part II Administrative Aspects 3841 Discretionary powers of the administration 3841.1 General 3841.2 Determining a person's entitlement to a benefit 3851.3 Enforcement of the obligations subject to which benefits are

awarded 3871.4 Decisions on requests by individuals for reconsideration of

earlier decisions 3892 The effect of changes in the law 3923 Binding effects of administrative decisions 3934 Consequences of failure to provide information 396

CHAPTER 11 Country Report o n SloveniaGrega Strban 399

Part I Legislative Aspects 4011 State obligation to introduce and maintain social security 4011.1 Obligations under the Slovenian Constitution 4011.1.1 Slovenia as a social State 4011.1.2 Fundamental social rights 4021.2 Obligations under the international law 4062 Legal duties to respect a 'pos i t ion 'of the individual 4102.1 Property protection 4102.2 State governed by the rule of law argument 4112.3 Equality of treatment 4143 Legal changes and transitional measures 4164 Executive-branch regulations 4195 Concluding thoughts 421

Part II Administrative Aspects 4221 Discretionary power of the administration and its limits 422

SBCUKITY: A GENERAL PRINCIPLE or SOCIAL SECURITY LAW IN EUSOPE

I.I1.2

2

33 1

3.2

3.2.1

3.2.2

3.2.33.2.43.2.545

CHAPTER 12

Parti1

I.I

1.2

1.42

3

3.1.1

3.1.23.2

3-3

3.3.13.3.2

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3-5

4Part II

Areas of discretionary power 422Limits of discretionary power 426Administrative decisions and legal changes 428Binding effects of administrative decisions 431Affiliation to social insurance 432Granting of benefits or imposing duties 433First instance decisions 433Disagreement with the first-instance administrative decision 435Temporal boundaries of final administrative decisions 438Providing benefits without just cause 439Settlements and understandings in social security 441Consequences of non- or incorrect information 443Concluding thoughts 444

Country Report on SpainCristina Sanchez Rodas 449

Legislative Aspects 451

State obligation to introduce and maintain social security 451Social security is a public task and a basic pillar of theWelfare State 453Social security is financed by public resources 453Universal personal scope 454Material scope 454Legal duties with to respect to the 'position' of the individual 456Legal changes and transitional measures 463Legal reform with no transitional measures 464The implementation of homosexual marriage and itsconsequences in the field of death pensions 464Unemployment allowances for migrant workers 464Legal reforms in the field of old-age pensions withtransitional arrangements giving beneficiaries a choicebetween the application of the old or new system 465Legal reforms establishing a progressive period forimplementation 465Old-age pensions 465Long-term care benefits 465Legal reforms in the field of family benefits with atransitional arrangement allowing beneficiaries to receivebenefits according to the old system 466Legal reforms in which mixed transitional measures areadopted 466Executive-branch regulations 466Administrative Aspects 467Discretionary power of the administration and its limits 467

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CHAPTER 13

PartiII.I

1.2

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2.1

2.2

33-1

3.23-345

Part II1

I.I

1.2

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2.1

2.2

33-1

3.23-33-43-5

44.14.2

Administrative decisions and legal changesBinding effect of administrative decisionsConsequences of lack of information or incorrectinformation

Country Report on SwedenThomas Erhag

472

473

476

481

Legislative Aspects 483State obligation to introduce and maintain social security 483Duty to provide health care without a correspondingindividual right to receive 484Right to social security benefits in cash 485Right to social assistance 486Legal duties to respect a 'position' of the individual 487Retroactivity 487Property rights 489Legal changes and transitional measures 491Examples of limited changes concerning short-term cashbenefits 491Widows' pension 492Reform of the statutory old-age pension system 494Executive-branch regulations 494Concluding remarks 495Administrative Aspects 496Discretionary powers of the administration and their limits 496Discretion in social security law 497Norm-oriented social security legislation 497Framework legislation 499Limits of discretionary power 500Administrative decisions and legal changes 501Withdrawal of favourable administrative decisions 501Withdrawal of social security benefits due to new legislation 502Binding effects of administrative decisions 503Favourable or positive administrative decisions 503Burdensome or negative administrative decisions 504Rectification and reconsideration of decisions 506The effects of a 'wrong' decision 506The possibility of ' ru l ings ' and 'settlements' in socialsecurity 508Consequences of non-information or incorrect information 508Service duties in administrative procedure 508Failure to comply with service duties 509List of References 51 o


CHAPTER 14 Country Report o n SwitzerlandThomas Gachter 515

Part I Legislative Aspects 5V1 State obligation to introduce and maintain social security 5171.1 Social security in the Swiss federal state 5171.2 Legal basis of social security 5181.2.1 Federal level 51*1.2.2 State level (Cantons) 5221.3 Subjective rights to social security 5221.4 Influence of international law on changes in Swiss social

security law 5242 Legal duties to respect a 'position' of the individual 5252.1 Concept of the right to property 5252.2 Right to property a n d social security 5252.3 Other concepts with influence on changes in social security

systems 5262.3.1 Rights acquired by a special act (Wohlerworbene Rechte) 5272.3.2 Protection of confidence 5272.3.3 Protection of collective confidence / Security of Law 5282.3.4 Protection of acquired rights 5282.3.5 Equality and equal treatment 5293 Legal changes and transitional measures 5303.1 Dogmatic approach towards transitional measures 5303.2 Usual s t ructure of transitional measures in social

security law 5313.3 Actual legal changes introduced and accompanied by

transitional provisions 5323.4 Stability of t ransi t ional m e a s u r e s 5334 Executive-branch regulat ions 5355 Concluding remarks 536

Part II Administrative Aspects 5371 Discretionary powers of the administrat ion and their limits 5371.1 Preliminary remarks 5371.2 Discretionary power in the shaping of autonomous rules 5381.3 Discretionary powers in the granting of benefits in social

insurance 5391.4 Discretionary powers in the granting of social assistance 5401.5 Limits of discretionary power 5412 Administrative decisions and legal changes 5422.1 Singular and short termed prestations 5422.2 Long-termed prestations 542

3 Binding effects of administrative decisions 5443.1 Preliminary remarks 544

3.2 Binding effects concerning the affiliation to a social securitysystem 544

3.3 Binding effects concerning the granting of benefits 5453.4 Unduly paid benefits 5463.5 'Rulings' in social security 5464 Consequences of non-information or incorrect information 5484.1 Consequences of incorrect information 5484.2 The duty to inform in Swiss social security law 5485 Concluding remarks 550

CHAPTER 15 Country Report on the United KingdomNeville Ha r r i s 553


1 State obligations to introduce and mainta in social security 5561.1 The legal basis to social security under national law 5561.2 Incorporation of the ECHR 5611.3 EC Law 5622 Legal duties to respect a 'position' of the individual 5632.1 Protecting rights: the impact of the H u m a n Rights Act 1998 5632.2 Protecting rights: other checks and safeguards 5693 Legal changes and transitional measures 5724 Executive branch regulations 576


1 Discretionary powers of the administrat ion and their limits 5781.1 Claims 5781.2 Recovery 5791.3 Discretion in relation to particular social security benefits 5801.3.1 The Social Fund 5801.3.2 Jobseeker's Allowance (JSA) 5831.3.3 Income Support 5851.3.4 Incapacity Benefit (IB) and Employment and Support

Allowance (ESA) 5872 Administrative decisions and legal changes 5903 Binding effects of administrative decisions 5923.1 Appeals, revisions and supersessions 5923.2 Overpayment of benefit 5963.3 'Rulings ' 5984 Provision of information 599


CHAPTER 16 'Security* as General Principle of Social Security Law inEurope: Conclusions on Legislative AspectsBob De Mars, Danny Pieters and Paul Schoukens 605

Introduction 6071 State obligation to introduce and maintain social security 6071.1 Constitutional provisions dealing with social security 6071.1.1 Lack of constitutional provision 6081.1.2 Constitutional protection in the form of a policy guideline 6081.1.3 General constitutional protection by proclaiming the state

as a 'social' state 6091.1.4 Constitutional protection by granting competences in the

matter of social security 6111.1.5 Constitutional protection in the form of a fundamental

social right 6111.2 International provisions dealing with social security 6152 Legal duties to respect a 'position'of an individual 6182.1 Property protection of social security rights 6182.2 Acquired rights and legitimate expectations 6232.2.1 'Fairness' 6232.2.2 Equality 6282.2.3 Proportionality 6293 Legal changes and transitional measures 6294 Executive-branch regulations 6325 Some concluding thoughts 633

CHAPTER 17 'Security* as General Principle of Social Security Law inEurope: Conclusions on Administrative AspectsFriso Ross 637

Introduction 6391 Discretionary powers of the social administration and their

limits 6411.1 Areas of d iscre t ionary power 6421.2 Limits of d iscre t ionary power 6422 Administrative decisions and legal changes 6433 Binding effects of administrative decisions 6443.1 Wrong decision as regards affiliation 6453.2 Wrong decision leading to undue benefit payment 6463.3 Binding effects of rulings 6474 Consequences of non- or misinformation 6475 Concluding thoughts 648

security: a general principle of social security law in europe

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