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Changes in Legislation on Disability in The
NetherlandsISSA Oslo May 2007
Ad Bockting
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CURING THE DUTCH DISEASE

• Shifting responsibilities from Administration to
  employer and employee
• Work first focus on capabilities
• Making work attractive

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Short-term Disability

• Continued Wage Payment by Employer
• 1996 6 weeks for large enterprises and 3 weeks
  for small ones
• 1998 52 weeks
• 2004 104 weeks
• At least 70 of salary
• Incentive for employers and employees to combat
  sick leave

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Improved Gatekeepers Act

• Act to increase pressure on employer and
  employee, Act of April 1st 2002
• Giving proof to UWV that sufficient reintegration
  activities have taken place
• Obligation to report progress to UWV
• If not, long-term benefit will be denied
• Prolonged period of continued wage payment, up to
  one year

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Sickness benefits Act as Safety Net

• Employees who lost job during continued wage
  payment
• Temporary workers working for employment agencies
• Employees whose employer goes bankrupt
• Unemployed workers
• Sickness during first 5 years of employees hired
  while on disability benefit
• Administration by UWV

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Long-term Disability

• Short-term Disability limited in time 104 weeks
  (formerly 52 weeks)
• Filing a claim, accompanied by overview of
  reintegration activities

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General Features

• No separate work injury program
• Economic Criterion degree of disability is
  comparison between former income and value of
  residual earning capacity
• Combination of assessment by medical doctor and
  labor expert

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Act on Work and Income according to Labor
Capacity (WIA)

• Act from January 1st 2006
• Applicable for those with first day of disability
  on or after January 1st 2004
• First day before January 1sr 2002 Disability
  Insurance Act

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Work and Income According to Labor Capacity (WIA)

• Two elements in WIAIVA Benefits Act for the
  fully DisabledWGA Benefits Act for the partly
  Disabled

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WIA IVATotal disability

• Disability 80 or more and durable.
• Durable disability benefit 70 of wage related
  income. No rehabilitation activities
• Not durable benefit 75 of wage related income
  for as long as the degree of disability is 80 or
  more. Rehabilitation if possible.

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WIA WGAPartial disability (1)

• Degree of disability 35 or more wage related
  benefit for a limited period, from 3 to 38
  months, dependent on work history
• 70 of earnings subtracted from benefit
• Degree of disability less than 35 no benefit.
  Responsibility of employer and employee to
  undertake rehabilitation activities. If
  rehabilitation does not succeed unemployment
  benefits.

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WIA WGAPartial disability (2)

• After the wage related benefit Supplementary
  benefit, dependent on realising residual earning
  capacity
• If realised earning capacity is between 50 and
  100 the benefit amounts to 70 of the difference
  between the former income and the assessed
  residual earning capacity

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WIA WGAPartial disability (3)

• Realised residual earning capacity less than 50,
  the benefit is related to the social minimum. No
  subtraction of earnings
• Disability levels65-80 50,75 of social
  minimum55-65 42 of social minimum45-55 35
  of social minimum34-45 28 of social minimum
• Social minimum 1,265 a month

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ExamplesEarnings between 50 and 100

• Former income from work 2,500
• Residual earning capacity 1,500
• Actual income 750
• Benefit 70 (2,500 1,500) 700
• Income from labor 750
• 1450
• Actual income 1,000
• Benefit 70 (2,500 1,500 700
• Income from labor 1000
• 1700

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ExamplesEarnings less than 50 of Residual
Earning Capacity

• Former income from work 2,500
• Residual earning capacity 1,500
• Degree of disability 35-45
• Actual income 500
• Benefit 28 of minimum 1,265 354.20
• Income from labor 500.00
• 854.20
• Actual income 100
• Benefit 28 of social minimum 354.20
• Income from labor 100.00
• 454.20

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Reassessment of Beneficiaries under Disability
Insurance Act

• Starting October 1st 2004
• Beneficiaries younger than 45 years at that date
• Assessment based on more stringent criteria
• Large numbers of decreased benefits

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Reintegration

• First 104 weeks responsibility of employer and
  employee
• For those under the safety net of Sickness
  Benefits Act UWV is responsible
• Long-term beneficiaries under WGA (partial
  disabled) obliged to participate in reintegration
  activities by UWV
• Contracted out to private reintegration
  institutes

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Client

• Responsible for his own reintegration
• Individual support if necessary
• Free choice for reintegration institute
• Individual Reintegration Agreement (IRO)

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Reintegration Market

• Free entry and competition
• Contracting by tendering, based on European
  regulations
• Division of persons into groups with similar
  characteristics
• Criteria for selection (experience, expertise,
  size)
• Criteria for contracting (price, method, results)

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Development Re-integration market

• Tendering about 60 companies contracted
• Tendering IRO more than 1500 companies
  contracted

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ResultsWork and Income According to Labor
Capacity (WIA) 2006
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Development in Long-term Disability
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Success Determinants

• Decrease in initial claims by 42 as a result of
  Improved Gatekeepers Act
• Extension of continued wage payment, further
  decrease by 25 to 35
• Reassessment of beneficiaries WAO younger than
  45 27 termination of benefit, 14 reduction of
  benefit

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Conclusion

• What happens with those who leave the disability
  rolls?
• Are they at work? In other benefit programs?
• Did they succeed in work despite their medical
  limitations?
• We do not know yet. Answers to these questions
  are crucial for an assessment of the continuity
  of decreasing numbers of disabled and inclusion
  into labor and society