MISSOC Network Meeting Bratislava, 10-11 November 2016 Retirement regimes for workers in arduous or hazardous jobs 2016 Synthesis Report European Social Policy Network (ESPN) David Natali, Slavina Spasova and Bart Vanhercke

Outline Preliminary note Workers in Arduous and Hazardous Jobs (WAHJ): who are they (and how many)? III. Overall description of the policy mix targeted at workers in arduous or hazardous jobs IV. Pension rules for workers in arduous or hazardous jobs V. Retirement patterns and retirement income of workers in arduous or hazardous jobs VI. Conclusions and Recommendations (a selection of)  

I. PRELIMINARY NOTE Lack of systematic data collection on WAHJ Accessible data is important in order to assess the general need for special treatment for WAHJ (adequacy and sustainability of their pension schemes). In the context of population ageing and technological transformations, original data is needed in order to design innovative policy measures with regard to new occupational risks. Great efforts from ESPN experts to provide Network Management Team with data on adequacy and sustainability average absolute benefits’ levels, replacement rates, qualitative assessments, assets in supplementary schemes etc.  

Two main national approaches II WAHJ: WHO ARE THEY? Two main national approaches  

II. WAHJ: WHO ARE THEY? No formal recognition (CH, DK, IE, NL, SE, UK) Only five countries have an all-encompassing definition of the arduousness and hazardousness of work FR, LI, RO, SI and SK More often, the arduousness and hazardousness of work is described through a list of strenuous physical or mental work conditions and/or jobs and occupations e.g. AT, BG, EE, EL, ES, FI, FR, HR, IT, LI, LT, LV, MK, PL, PT, RO, RS, SI, SK, TR

II. WAHJ: HOW MANY ARE THERE? WAHJ represent between 1% and 4% of the total workforce in European countries (RO, 0.36%; PL, 2.2%; SK, 4.1%; EL, 12.9%) in 2015-16. WAHJ pensioners are estimated to represent between 5% and 8% of all pensioners in 2015-16. General decline in the number of WAHJ and WAHJ pensioners over the past decade Main reasons: shortening of lists of conditions/jobs tightening of special schemes’ eligibilty conditions phasing out schemes 

III. THE POLICY MIX TARGETED AT WAHJ Countries facilitating early exit measures (Cluster 1) Countries favouring prolonging working life measures (Cluster 2) Countries combining early exit & prolonging working life measures (Cluster 3) BG, EE, ES, EL, HR, IT, MK, PL, PT, RO, RS, SI, SK, TR CY, CZ, DK, HU, IE, IS, LI, LT, LV, MT, NO, SE, UK   AT, BE, DE, CH, FI, FR, LU, NL Two main approaches in Cluster 2: Holistic approach: integrating social benefits, (innovative) active labour market policies and rehabilitation policies to support longer working lives. Narrow approach: prolonging working life mainly through tightening eligibility conditions, and phasing out rules and schemes.

III. THE POLICY MIX TARGETED AT WAHJ The past decade has followed a general trend: shift towards prolonging work life Narrowing access to special schemes targeted at WAHJ Introducing individual assessments of work conditions and work ability for the purpose of granting pensions and disability, sickness and unemployment benefits; Redesigning specific rules and schemes in order to increase efficiency and sustainability (e.g. through means-testing)

IV. PENSION RULES/SCHEMES FOR WAHJ Special rules and/or schemes based on: Pensionable age, social contributions record (often higher for WAHJ and their employers), accrual of pension rights. Financing: mainly PAYG schemes, few (mandatory) funded schemes (e.g. BG, HR) In countries with no legal recognition of WAHJ: other social protection schemes: Early retirement, disability, sickness and injury benefits, unemployment benefits

V. RETIREMENT PATTERNS FOR WAHJ Effective retirement age Countries, where effective retirement age for WAHJ is lower than that for ordinary workers (e.g. AT, BE, BG, EL, ES, LV, PT ) Countries, where effective retirement age for WAHJ is the same as for ordinary workers (e.g. EE, RS, SE) Retirement income Countries, where WAHJ enjoy higher benefits (AT, BE, BG, CZ, EL, HR, LU, MK, PT, RS, TR) Countries, where WAHJ enjoy lower benefits ( CH, CY, DE, IS, IE, IT, LI, LT, MT, NO, SE, SK, UK) Countries, where WAHJ enjoy the same level of benefits as ordinary workers (DK, EE, ES, FI, HU, LV, NL, PL, RO, SI)

VI. CONCLUSIONS AND RECOMMENDATIONS Two main challenges Lack of Active labour market policies, measures specifically targeted at the improvement of WAHJ working conditions, and rehabilitation programmes. In many countries, tightened access to special retirement provisions has not been matched by measures supporting employability and work ability WAHJ receive low levels of benefit and have lower life-expectancy

Recommandations To Member States An integrated approach, combining pension policy and employment policy measures to help this group of workers to remain active in the labour market, while enjoying decent working conditions. This would also help to improve average pension protection through longer careers, and thus contribution records. Statutory and supplementary pensions should be part of an integrated strategy to provide old age protection and flexible approaches to the end of their career. Some countries have shown that supplementary pensions (voluntary or mandatory) can provide additional protection for WAHJ. Trade unions and employers’ representatives should be closely involved in providing more information about the arduousness and hazardousness of work and the most effective ways to provide protection to workers.

Recommandations To the European Commission Innovative policy measures introduced for WAHJ should be systematically identified and assessed in order to be used to promote exchange on improving policies in the context of a wider active ageing strategy. Exchange of information between different data sets – at the EU and international level (incl. the OECD) – could be further promoted to improve knowledge about WAHJ.

READ MORE Natali, D., Spasova, S. and Vanhercke, B. (2016), Retirement regimes for workers in arduous or hazardous jobs. A study of national policies, European Social Protection Network (ESPN), Brussels: European Commission Available here (+ 35 National Thematic reports)

European Social Policy Network (ESPN) The European Social Policy Network (ESPN) was established in 2014 to provide the European Commission with independent information, analysis and expertise on social policies in 35 European countries. It is managed by LISER (Luxembourg Institute of Socio-Economic Research), APPLICA and the OSE (European Social Observatory). More information on the ESPN: Availble on DG Employment website here.

- Synthesis report on Retirement regimes for workers in arduous or hazardous jobs in Europe : download + 35 National Thematic reports - Synthesis report on Work-life balance measures for persons of working age with dependent relatives in Europe: download + 35 National Thematic reports on Work-life balance - Synthesis report on Minimum Income Schemes in Europe - A study of national policies: download + National Thematic reports on Minimum Income - Synthesis report on Integrated support for the long-term unemployed in Europe - A study of national policies + download + 35 National Thematic reports on long-term unemployed - Synthesis report on Social Investment in Europe - A study of national policies: download + 35 National Thematic reports on Social Investment - ESPN ‘Flash’ reports on a variety of social protection and social inclusion topics: download  

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