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Change to the structure of the health premiums under the insurance companies’ occupational protection scheme (Régime Professionnel de Prévoyance)

Change to the structure of the health premiums under the insurance companies’ occupational protection scheme (Régime Professionnel de Prévoyance)

On 25 September 2018, the French Insurance Federation and four trade union organisations – CFDT, CFE-CGC, CFTC and UNSA – signed a memorandum of understanding that alters the health premiums of the sector’s occupational protection scheme.

Since 1962, this occupational protection scheme has provided its beneficiaries with a minimum level of group health and protection cover. It represents a significant achievement in terms of workers’ rights for employees in the insurance sector and their beneficiaries, around 200,000 people.

The scheme was initially designed as a combined (health and protection) scheme and its funding was based on a single premium, calculated on the basis of the member’s salary.

In the light of recent regulatory changes, the signatory employer and employee representative bodies decided to change the funding structure of the health premium, replacing it with a flat-rate system of premiums with two levels: one for salaries at or below the French social security upper earnings limit (plafond de sécurité sociale), the other for higher salaries.

In addition, the agreement now provides that employers’ contributions will fund 95% of the health component of the scheme, with employees funding the remaining 5%. This new funding distribution will result in a financial gain for all employees in the sector.

Finally, as part of the constant aim to improve group cover, the scheme will now supplement Social Security where an employee returns to work on a part-time basis for health reasons. This is because the signatories to the agreement wanted the scheme to encourage a phased return to work after sickness leave that takes account of the employee’s condition and ability to work.

According to Bernard Spitz, President of the FFA: “The insurance sector’s health and protection insurance scheme represents an achievement for the industry in terms of workers’ rights that must be protected and improved whenever possible. The memorandum of understanding of 25 September 2018 is a strong commitment by the employer and employee representative bodies. The agreement will provide all employees with a significant increase in purchasing power from January 2019 and improved benefits when they need to work part-time for health reasons.