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The financing of agricultural social protection: The French system

ENASP: Question of Common Interest. The financing of agricultural social protection: The French system. Structure of ressources. Independent Farmers : 16 billion euros. Agricultural Employees : 10.9 billion euros. External Financing : 34 %. External Financing : 75 %.

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The financing of agricultural social protection: The French system

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  1. ENASP: Question of Common Interest The financing of agricultural social protection: The French system

  2. Structure of ressources Independent Farmers : 16 billion euros Agricultural Employees : 10.9 billion euros External Financing : 34 % External Financing : 75 % Contributions and CSG : 66 % Contributions and CSG : 25 % 26.9 billion euros in 2004 En droits constatés. Source : CCMSA/SDFT

  3. Independent farmersand their families

  4. Main figures • Active contributors 653,000 • Including 562,000 independent farmers • Beneficiaries for Health 2,079,000 • Beneficiaries for Family 108,000 • Beneficiaries for Pensions 1,918,000 • Receipts : 15.3 billion euros in 2005 • Charges : 16.8 billion euros => Deficit : 1.5 billion euros

  5. Independent farmers’ scheme Funds Activities Kind of financing Mngt & Social Action Contributions ATEXA Fund Prevention occupational risks RCO Fund CSG FFIPSA Fund Benefits : Demographic balance Fund for solidarity with old age Taxes, State subsidies ATEXA RCO Family Old age Health

  6. Health, Family Benefits, Pensions In 2005 Around 15.1 billion euros % of expenditure

  7. The FFIPSA fund • Financing fund devoted to Health and Old Age branches. • Replaces the BAPSA, the former State supplementary budget for agricultural benefits. • Now a public corporation, with a sort of « co-management » between government, parliament and the people in the trade.

  8. Employment injuries & occupational illnesses = The ATEXA branch • Created in 2002 • Completely financed by farmers’ contributions • Contributions must balance expenditure • The budget represents 163.2 M€ in 2005 • The number of indemnified injuries starts to be stabilized

  9. The RCO fund = Mandatory Supplementary Pension • Created in 2003 • Insured people : • Retired who never contributed • And by now, the active contributors • Receipts 2005 : 424.6 million euros • Contributions : 279.6 M€ (65.85 %) • Subsidy from FFIPSA : 145 M€ (34.15 %)

  10. Agricultural employeesand their families

  11. Main figures • Number of contributors (physical people) 1,621,000 • Number of contributors « ETP » 642,000 • Beneficiaries for Health 1,735,000 • Beneficiaries for Family 149,000 • Beneficiaries for Pensions 2,311,000 • Receipts : 11 billion euros in 2005 • Charges : 11 billion euros

  12. Agricultural workers’ scheme financing Funds Activities Kind of financing Mgmt & Social Action Fund for Employment injuries Contributions Prevention occupational risks CSG Compensation from General Scheme Benefits Family Old age Health Employment injuries Fund for Solidarity with Old Age Taxes, State subsidies

  13. General structure of financing Global resources : 11 billion € Percentage (%)

  14. Employment injuries & occupational illnesses Estimates for 2005 = Fund for Employment injuries (AT) • An entirely professional scheme, managed by the MSA. • A financial balance reached each year by the adjustment of social contributions.

  15. Conclusion Challenges for French agricultural social protection and for the MSA • Diversification of resources • Consolidating the Independent Farmers’ scheme financing • Demographic gap and equalization

  16. Origin of ressources An increasing diversification In 2005, for the whole social protection system : • Contributions (189 billion €) • Taxes for social security gap : CSG (70 billion €), CRDS, CSSS, pharmaceutical industry contributions • Taxes (15 billion €) : tobacco, alcohol, polluting activities, tax for craftsmen & merchants… • State subsidies (35 billion €) • Yield on capital (10 billion €) • Transfers between schemes (39 billion €)

  17. The Farmers’scheme needs consolidation FFIPSA : a negative budget In 2005 : • Expenses : 15,746.2 billion euros • Receipts : 14,302 billion euros • Result : -1,444.2 billion euros • Accumulated results : -4,559 billion euros Problem : a fund not consolidated yet. Contribution to be received from the State.

  18. Problems with demography • Importance of external financing in the farmers' scheme : Consequence of the « demographic imbalance ». Concerning the Independent Farmers, there is around 1 contributor for 3 retired people. For the Employees, the rate is around 1 for 2. • The MSA’s demands about the mechanism of « demographic balance » : To weight the value of the different kinds of beneficiaries according to their age and to the length of their career in agriculture.

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