In April 2002, the Spanish government is due to place before parliament regulations to create a new National Social Security Agency, which will bring together the main bodies currently responsible for managing the social security system, paying benefits, and organising social assistance.
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In April 2002, the Spanish government is due to place before parliament regulations to create a new National Social Security Agency, which will bring together the main bodies currently responsible for managing the social security system, paying benefits, and organising social assistance.
In April 2002, the cabinet is due to put before parliament draft legislation creating a National Social Security Agency (Agencia Nacional de la Seguridad Social, ANSS), which could come into operation in 2003. This new agency will bring together the two bodies that manage social security - the National Institute of Social Security (Instituto Nacional de Seguridad Social) and the General Social Security Treasury (Tesorería General de la Seguridad Social) - along with the Marine Social Institute (Instituto Social de la Marina) and the services at national level of the National Institute of Employment (Instituto Nacional de Empleo), the Institute of Migrations and Social Services (Instituto de Migraciones y Servicios Sociales, IMSERSO) and the National Institute of Health (Instituto Nacional de Salud, INSALUD).
The new National Social Security Agency will manage a budget of EUR 94 billion and will be responsible for all social security benefits at national level, for which there will be a single account. Its funds could amount to 15% of Spanish GDP and 40% of the state budget, and it could employ some 35,000 civil servants. For its current expenditure, the agency will have 2% of all funds assigned to cover the contributive expenditure of the social security system.
The idea of the new agency was raised in the 1995 'Toledo Pact' on the future of the social security system (ES9710220F) and further specified in the April 2001 tripartite agreement on pensions (ES0106244F). These agreements provided that the new agency, which will come under the aegis of the Ministry of Labour through the State Secretariat for Social Security, will be responsible for: processing the social security aspects of the creation of companies; workers joining and leaving the system; levying contributions; and paying unemployment benefit, pensions, and healthcare assistance, among other services which will be centralised with a single point of contact for users. According to the regulations prepared by the conservative People's Party (Partido Popular, PP) government, which has an absolute majority in parliament, the new body will be responsible for managing the social security system, paying unemployment benefit, and organising complementary public social services. It will also be responsible for voluntary and compulsory payments of contributions for social security, vocational training and the Wages Guarantee Fund (Fondo de Garantia Salarial, FOGASA).
If the National Social Security Agency is approved by parliament, it will bring together the competencies of several former bodies, though certain competencies of the current Marine Social Institute will be granted to some regions (autonomous communities). However, it may reach agreements with regional governments and other public bodies to create and participate in private companies, providing that they carry out the social objectives of new agency. The proposal to create a centralised body may lead to friction with the autonomous communities, which are calling for greater decentralisation.
It seems that the other major new feature of the planned regulations, which may be more controversial, is the aim of combating social security fraud. It is planned to set up a special judicial police unit linked to the Ministry of the Interior, and to introduce close collaboration with the tax office. The special unit will collaborate with the tax office's employment inspectors, so the police may obtain information on suspected cases of fraud, whether by companies or workers.
It seems that the aim of the government is to rationalise the costs of social security by simplifying its activities and management. Another aim is to prevent fraud in the various benefits. According to critics, this may lead to excessive attention by the tax authorities, leading to a problematic and perhaps questionable control by the police of information on workers and companies, in comparison with other public funds which are not subject to such strict control.
Eurofound recommends citing this publication in the following way.
Eurofound (2002), Social security bodies to be integrated, article.
