The protection ability of the main social assistance benefits within the Romanian social security system since 1989.

Belu, Marina Loredana ; Radu, Roxana Cristina ; Neamtu, Marius Cristian 等

Introductory considerations on the reform of the Romanian social assistance system since 1989

Communist social security system has played an important role in preventing and combating poverty and, in consequence, social exclusion. Unlike the current system, severely affected by the transition to a market economy and, in recent years, by the global economic and national political crisis, the Communist regime was more effective in providing replacement income for wage earnings of those incapable of working due to old age, disability or illness, has encouraged the birth rate by supplementing the income of families with children through various measures of family support, has eradicated unemployment by providing jobs and regulating compulsory employment, has provided free health care. The construction of the Communist social security system was not, however, based on the idea of combating poverty and ensuring a minimum level of living for those in need, social protection schemes being meant mainly for active population (not for jobless, disabled people, poor peasants). Social welfare institutions were underdeveloped, the services provided to children and elderly people in specialized care institutions being "particularly precarious, even miserable" (Molnar, 1999: 184).

After the revolution of December 1989, the effects of the transition to a market economy were reflected on the social security that has undergone numerous transformations generated by the fall in the standard of living, inflation, rising unemployment, deepening poverty and its extension on an increasingly broader category of population. Measures of economic and social protection and social security reform were of liberal inspiration, having as main objective the involvement of the State in combating poverty and social exclusion. Thus, the post-revolutionary period was waived many of the basic elements of the old Communist system, being gradually introduced the guaranteed minimum income scheme, public social aid and social aid canteens, the guaranteed minimum wage on national economy, various types of family benefits, the system of social protection of disabled persons, etc. Also, a minimum level of unemployment benefit was introduced, another compensation scheme of medicine prices was set up, public pension system was reformed, family allowances were based on universality principle, the conditions of assistance to orphans and children or elderly deprived of their family's support have been improved. Unfortunately, all these measures have not had the expected outcome, excessively pressing on the state budget, fact which has led in practice through "the impossibility of fulfilling the function of maintaining the standard of living achieved before the risk production in the field of social insurance and family benefits, the shifting of the social security system towards the models characterized by minimal protection and, what is more serious, the inability of social benefits to ensure a minimum level of protection for a large number of those placed in the social security net" (Molnar, 1999: 186).

The political and economic crisis that has plagued Romania in the last few years had extremely harmful effects on the ability of the State to protect its citizens, as provided for in the Constitution. The level of social benefits and their ability to ensure a minimum standard of living decreased increasingly more drastically in terms of inflation, compression of the national public budget resources, severe budgetary restrictions, decrease of the number of people active on the labor market and ageing phenomena.

Social assistance is regulated by Law no. 292/2011 which provides that the national system of social assistance means the combination of measures and institutions through which the State, represented by the central public administration authorities and local civil society, intervenes for preventing, limiting or removing temporary or permanent effects of situations which may give rise to marginalization or social exclusion of the person, family, groups or communities. Social assistance system provides both cash benefits and social facilities and services provided for the development of individual or collective capacities for fulfilling social needs, increasing quality of life and promoting the principles of cohesion and social inclusion: family counselling, vocational guidance, counselling and support for social integration of persons at risk of exclusion (Buzducea, 2005: 35).

Social assistance is "represented by a system of legal norms meant for implementing social protection programs for the support of benefits for families with children, certain categories of minors, elderly, retirees, adults with disabilities, and other beneficiaries" (Athanasiu, 1995: 348).

The purpose of social assistance is to ensure the minimum level of living to those members of society who "are in need" or "in a state of poverty" (Ghimpu, Ticlea & Tufan, 1998: 347), the issue of the right to social assistance being closely linked to the notion of "social need" (Athanasiu, 1995: 348).

The need, as the legal foundation of the right to social assistance, represents the lack of necessary means for an individual to sustain his living. Social need, according to article 5 of the Law on social assistance no. 292/2011, means the indispensable requirements of each person to enjoy the necessary conditions for living, in order to ensure social participation or, where applicable, social integration. Unlike the previous legislation (Law no. 47/2006 on national social assistance system), the new law on social assistance focuses on purpose--social participation--and introduces the notion of "special need", consisting of "the indispensable requirements for ensuring the social integration of persons who, because of health problems, genetic or acquired during life, had a disability, and of individuals who, for various reasons of a social nature, are disadvantaged in their personal development" [Art. 6 let. x) of Law no. 292/2011]. Also, one of the new principles introduced by Law no. 292/2011 is the activation principle, according to which social support measures have as their ultimate goal the encouragement of labor force employment for the purpose of integration/social reintegration, life quality's growth and family nucleus' strengthening.

The right to social assistance is guaranteed by law to all Romanian citizens who are domiciled or resident in Romania, without any kind of discrimination. Citizens of other states, stateless persons and any other person who has acquired a form of protection and has his domicile or residence in Romania are entitled to social assistance, in accordance with Romanian legislation and agreements and treaties to which Romania is a party.

Unlike the previous regulation, which provided that rights to social assistance shall be granted on request or ex officio, as appropriate, Article 16 par. 1 of Law no. 292/2011 stipulates that "the right to social assistance benefits shall be granted on written application of the person entitled, of family representative or of the legal representative of the person entitled", hence they can no longer be granted ex officio.

Law no. 292/2011 highlights the alternative or, where appropriate, complementary character of the national system of social assistance in relation to the social insurance system, which prevails. The purpose of social assistance, in addition to building individual, group or collective capacity to ensuring social needs and increasing quality of life, lies in promoting the principles of cohesion and social inclusion, integration on the labor market being a priority objective.

According to the article 6 par. 4 of Law no. 292/2011, the measures and actions for social assistance are put into practice so that:

a) benefits of social assistance and social services constitute a unified package of related and complementary measures;

b) social services prevail over social assistance benefits, if their cost and impact on beneficiaries is similar;

c) social assistance measures and actions should be evaluated at regular intervals in terms of their effectiveness and efficiency to be continuously adapted and adjusted to the real needs of beneficiaries;

d) benefits of social assistance and social services contribute to the labor market integration of beneficiaries;

e) prevent and limit any form of dependency upon the aid granted by the State or by the community.

Social assistance benefits

Social assistance benefits are a form of supplementing or substituting individual/family income derived from work in order to ensure a minimum standard of living, as well as a form of support in order to promote social inclusion and increase quality of life for certain categories of persons whose rights are expressly provided for by law. Social assistance benefits are paid in money or in kind and consist of allowances, social assistance services and facilities.

Depending on the eligibility conditions, social assistance benefits are classified as follows:

a) selective social assistance benefits, based on testing the livelihoods of the single person or the family;

b) universal social assistance benefits, granted without testing the livelihoods of the single person or the family;

c) categorical social assistance benefits, granted to certain categories of beneficiaries, with or without testing the livelihoods of single person or family.

Depending on their purpose, social assistance benefits differ as follows:

a) social assistance benefits for preventing and combating poverty and the risk of social exclusion (social aid, emergency aid, scholarships and financial aids for facilitating access to education, aids in kind, food and materials for children and young people coming from disadvantaged families, aids for refugees, facilities for the use of in common transportation means);

b) social assistance benefits for children and families support (allowance for child; allowances for children, temporarily or permanently destitute from the care of their parents; indemnities for rising children; other facilities, according to the law);

c) social assistance benefits for supporting people with special needs (allowances for persons with disabilities; care allowances; other facilities);

d) social assistance benefits for unpredictable situations.

The conditions for granting these benefits, mainly aim at the same goal--to encourage the participating of beneficiaries on the labor market. Thus, where persons who are granted social assistance benefits get employed or return to their job, resume professional activities or start an activity on their own, they may benefit, where appropriate, under the conditions laid down in the special laws, from:

a) increase of granted social assistance benefit, whether they fall within the conditions of eligibility;

b) extension of the period for granting social assistance benefit with a maximum of 3 months beginning with the month of their employment;

c) incentives for the substitution of social services;

d) other rights provided by law.

Refusal of employment, of participation in training /qualification /requalification courses or in other active measures provided by law may result, under special laws, in reducing the amount of social assistance benefit or in termination of its payment and prohibition of receiving a new benefit of social assistance for a limited period of time.

On the other hand, employers who hire people receiving social assistance benefits are supported and encouraged to make such hires; they can also benefit, in accordance with the law, from tax breaks or other facilities.

An illustration for the way and the extent to which social assistance benefits meet the requirements of the fight against poverty is article 9 par. 9 of Law no. 292/2011, according to which social assistance benefits financed from the state budget and, where appropriate, from local budgets shall be subject to payment only if the recipient pays his obligations towards the local budget.

According to article 14 of Law no. 292/2011, the amounts of social security benefits are determined in relation to the reference social indicator (ISR) by applying a social insertion index. Unlike the previous system, where all the social benefits were established by government decision, the new regulation introduced a uniform calculation method for all social security benefits.

Starting with 2012, all social benefits are reported to the ISR and, as subsequent laws of the new code of social assistance (Law no. 292/2011) have entered or enter into force, all the 54 social benefits will be reduced to seven types of allowances, indemnities and facilities, measure aimed, mainly, at reducing financial costs, saving budgetary funds, by reducing errors and frauds in the social assistance system (Ministry of Labour, Family and Social Protection, 2011: 2-3).

ISR means the unit expressed in lei which social assistance benefits, paid from the state budget, are related to. Modifying the amount of social benefits will be only possible by modifying the ISR.

Social aid

Within the social protection system most developed countries provide a benefit of guaranteed minimum income for all categories of disadvantaged population. As it results from Law no. 416/2001 on guaranteed minimum income, such a system based on the principle of solidarity is also operating in Romania and it is for the first time when a law is focused on the homeless people (Belu, 2005: 230-231). On its turn, Law no. 292/2011 defines such persons as "a social category made up of singles or families which, for single or cumulative reasons of social, medical, financial, economic, legal nature, or due to force majeure, live in the streets, staying temporarily with friends or acquaintances, are incapable of supporting a home for lease or are in risk of evacuation, are detained in institutions or prisons from where are likely to be expelled within two months, and have no domicile or residence".

Regulated for the first time in 1995, social aid is a form of social protection founded on the principle of solidarity and consists in granting differential allowances financed from local incomes and supplemented by the state budget, meant to assist families and single people with incomes under a considered basic minimum, as well as homeless people in need (Ticlea, 2009: 336; Molnar, 1999: 208).

Social aid benefits are non-contributory, consisting of cash and benefits in kind granted to persons or families whose income is insufficient to meet minimum basic needs.

As pointed out in the specialized literature, the social aid is a form of social protection based on the principle of social solidarity, representing "concrete" help for families belonging to the poorest category of society but it is unable to get the beneficiaries out of poverty and thus represents "the last safety net" of protection against poverty (Ghimpu, Ticlea & Tufan, 1998: 414; Molnar, 1999: 208).

The level of protection provided by the social aid benefit to its beneficiaries is very low and has continued to decline since 1995 to present. While the guaranteed minimum income level is reported to the reference social indicator (0.25 ISR for single person; 0,45 ISR for families consisting of 2 persons; 0.63 ISR for families consisting of 3 persons; 0.78 ISR for families of 4 persons, 0.93 ISR for families consisting of 5 persons; 0,062 ISR for each person over 5 people, that is part of the family, in accordance with the law), the amount of social aid benefit is established as a social difference between these levels, converted into lei, and net monthly income of the family or of the single person. If the calculation results in a social aid amount of less than 10 lei, 10 lei are given to the beneficiary.

Except those who have undeclared income, the beneficiaries of the aid are to be found in a state of extreme poverty, social aid representing "rather a limit up to which the society affords, in the present circumstances, to raise income for all those who cannot do this by their own effort" (Molnar, 1999: 208).

One of the causes for which the social aid has an amount so low it is the abusive access to this benefit of social assistance of persons carrying out very large incomes from the black economy (typical example of many Roma families), pressing so excessively the State budget and so hijacking this form of protection from its aim: combating poverty.

In order to combat the shortcomings of law, art. 161 of Law no. 416/2001 laid down that, starting from 2012, for the maintaining of the entitlement to social aid, beneficiary families are required to pay their legal obligations towards the local budget for the assets they hold in the property, as provided for in Law no. 571/2003 regarding the Fiscal Code, as amended and supplemented. Checking out the accomplishment of this obligation is carried out on an annual basis, no later than January 31 of each year for the payment obligations to the local budget incurred in the previous year. In the event that, before January 31 each year, the Mayor finds out that this obligation was not fulfilled, it shall suspend the right to social aid payment for a period of five months, beginning with the rights associated with the month of February. Payment of legal obligations towards the local budgets within the period of five months determines the resumption, by the Mayor's disposal, of the social aid payment starting with the month following that in which the obligation has been paid, including proper rights during the suspension period. In the situation when, after the expiration of that period, the obligation to pay legal taxes is not fulfilled, the right to social aid will cease by Mayor's order. The advantage of these legal provisions is that State recovers part of the amounts due to him in the form of taxes and duties, but the risk is that social aid would not reach families in serious condition of poverty and that would have really needed it.

Insertion minimum income

Insertion minimum income is the main form of supporting the prevention and combating poverty and social exclusion risk, being granted from the State budget as the difference between the levels laid down by special law and the net income of the family or single person made or obtained in a given period of time, in order to guarantee a minimum income for each person in Romania.

Insertion minimum income is a form of support for low-income families set up through the unification of guaranteed minimum income, of the current allowance for family support and aid for house's heating, which has been applied as starting with 2013.

The benefits for the child and family support

The most important measures in support of the family are family benefits, those benefits in money allocated by the social welfare system. The term "family benefits", encountered in the literature, identifies all allowances and benefits awarded in favor of the family. These benefits represent the main tool of family policies which seek to ensure family protection, perpetuation and development in order to enable it to fully exercise its social and economic functions. Family benefits are granted to families with children and take into account, primarily, children's birth, education and rising.

Law no. 292/2011 introduced the term of "social assistance benefits for the child and family support" which, according to article 10, are awarded by the State to increase the quality of life in the family and maintain a proper supportive family environment for the achievement of its basic functions.

The purpose of granting social assistance benefits for family support consists of supplementing the income of families with children, for the family standard of living not to be drastically deteriorated with the birth of children (Avram, Popescu & Radu, 2006: 98). They primarily fulfil a function of social protection and financial supporting for families with children: "Family social assistance measures are not granted for compensation of its specific tasks, but also as a form of supporting child rising inside the family and overcoming a difficult reconciliation of family life with professional life, encouraging employment on the labour market" (Art. 67 of Law no. 292/2011). In time, they have acquired a demographic function: the function of stimulating birth; in practice it was proved, however, that their role in this matter is minor (Molnar, 1999: 202).

State allowance for children

State allowance for children is "one of the main social assistance benefits which consists of a sum of money given by the State to families with children in order to cover the needs of children's growth and education" (Ghimpu, Ticlea & Tufan, 1998: 397; Ticlea, 2009: 370-371).

Law no. 61/1993 introduced the principle of the universality of the right to state allowance for children, by providing, since October 1993, of a monthly indexable allowance. The principle of the universality of family benefits is "the main legal criterion for granting state allowance for children" (Athanasiu, 1995: 62).

Decree no. 410/1985, the past regulation of the state allowance for children, provided allowance for children with the condition that the parent of the minor child have the legal status of employee. According to Law no. 61/1993, all children benefit from the allowance, regardless of the parents' quality of being employed (Avram, Popescu & Radu, 2006: 100).

The amount of the allowance for children is established in relation to the reference social indicator as follows: 0.4 ISR for children up to 2 years (or up to 3 years in the case of disabled children); 0.084 ISR for children aged between 2 and 18 years, and for the young people referred to in article 1 par. (3); 0.168 ISR for children aged between 3 and 18 years, in the case of children with disabilities, in accordance with the provisions of article 58 par. (1) of Law no. 448/2006 on the protection and promotion of the rights of persons with disabilities.

Parental allowance

For children born, adopted, entrusted for the purpose of adoption, children taken into foster care, into emergency foster care or guardianship, persons who, in the last year before the child's birth or before the events mentioned have done for 12 months professional income subjected to income tax under the provisions of Law no. 571/2003 regarding the Fiscal Code, benefit from parental leave of up to two years or, in the case of disabled child, of up to 3 years, as well as a monthly allowance in the amount of 75% of the average revenue in the last 12 months (Radu, 2009: 73). Starting with January 2012, parental allowance is determined in the amount of 75% of the average net income achieved in the last 12 months and may not be less than 1.2 ISR nor greater than 6.8 ISR. The amount of parental allowance is increased by 1.2 ISR for every child born of a twin pregnancy, triplets or multiplets, starting from the second child born into such a birth.

Another measure introduced in 2011 aimed at supporting the family, but also at encouraging the maintenance of prospective beneficiaries as employees lies in the fact that persons who, during the period in which they are entitled to parental leave and the monthly allowance, get income subjected to tax on profit, before the child reaches the age of one year, shall be entitled to an insertion stimulent in the monthly amount of 1 ISR for the period remaining until the child reaches the age of 2 years.

The purpose of these new changes regarding parental leave and parental allowance is to reduce the cost and the period for granting the allowance in order to achieve budgetary savings.

Allowance for family support

Government Emergency Ordinance (O.U.G.) no. 105/2003 on additional family allowances and allowance for monoparental family expressly abrogated Law no. 119/1997 on supplementary allowance for families with children. Thus, the supplementary allowance for families with children has been replaced by additional family allowance, which is provided including for families with a single child, if they meet the legal requirements.

O.U.G. no. 105/2003 maintained the principle of selectivity, namely the granting of family benefits according to the net monthly income per family member and depending on the number of children, but it has widened the scope of beneficiaries, including families with a single child, taking into account that, in Romania, more than half of families with children had one child. The adoption of this solution presents the advantage of providing protection to a large numbers of poor families with a single child (Molnar, 1999: 203-205).

In the literature, the universal scheme is considered to be much more expensive than the selective one taking into account the expenditure on allowances payment. Practice has shown, however, that the selection of those who have low incomes is extremely difficult and costs a lot if we take into account, on the one hand, the administration costs and, on the other hand, the losses involved in tax evasion, the development of black labor market and the abusive access to allowances. In the case of Romania, the administrative costs involved in verifying incomes are increased by the large number of potential beneficiaries, the share of families in need of financial aid for children raising being very high (Molnar, 1999: 203-205).

Like the supplementary allowance for families with children, additional family allowance and allowance for monoparental family support were non-contributory benefits which consisted of a sum of money that was supported by the state budget in favour of families with children, according to the number of children, in order to mitigate the consequences of economic reform (Radu, 2009: 176).

Law no. 277/2010 concerning the allowance for family support introduced a new family allowance that represents the result of the consolidation of the two previous allowances--additional family allowance and allowance for monoparental family support, regulated by O.U.G. no. 105/2003, which is no longer into force.

Under the new law, the allowance for family support is a form of assistance for low-income families who are growing and taking care of children under the age of 18 years, with the aim of supplementing the income of families in order to ensure better conditions for the education, care and upbringing of children, as well as boosting school attendance by school-age children being in the care of low-income families.

For family consisting of husband, wife and children in their care, living together, and whose average monthly net income per family member is up or equal to 0.40 ISR, the monthly amount of the allowance is determined by reference to the ISR, as follows: a) 0.06 ISR for family with one child; b) 0.12 ISR for family with 2 children; c) 0.18 ISR for family with 3 children; d) 0.24 ISR for family with 4 children and more. If the average monthly net income per family member is less than 0.40 and up to 0.740 ISR including, the amount of the allowance is established as follows: a) 0.05 ISR for family with one child; b) 0.1 ISR for family with 2 children; c) 0.15 ISR for family with 3 children; d) 0.2 ISR for family with 4 children and more.

For the single-person family and dependent children, living together, and whose average monthly net income per family member is up to 0.40 ISR including, the monthly amount of the allowance shall be determined as follows: a) 0.1 ISR for family with one child; b) 0.2 ISR for family with 2 children; c) 0.3 ISR for family with 3 children; d) 0.4 ISR for family with 4 children and more. If this family has an average monthly net income per family member over 0.40 ISR and up to 0.740 ISR including, the amount of the allowance is: a) 0.09 ISR for family with one child; b) 0.18 ISR for family with 2 children; c) 0.27 ISR for family with 3 children; d) 0.36 ISR for family with 4 children and more.

In terms of rising unemployment, social benefits for supporting family are an important contribution to the increase of the income of families with children, a fact that presents the disadvantage of birth stimulation in poor families, as well as of family dissolution.

References

Athanasiu, Al., (1995). Dreptul securitatii sociale, Bucharest: Actami Publishing House.

Avram, C., Popescu, P., Radu, R., (2006). Politici sociale, IInd volume, Craiova: Alma Publishing House.

Belu, L., (2005). Repere privind reglementarea ajutorului social in concordanta cu cerintele Uniunii Europene. Revista de Stiinte Juridice, (3-4), 230-235.

Buzducea, D., (2005). Aspecte contemporane in asistenta sociala, Iasi: Polirom Publishing House.

Ghimpu, S., Ticlea, Al., Tufan, C., (1998). Dreptul securitatii sociale, Bucharest: All Beck Publishing House.

Ministry of Labour, Family and Social Protection, (2011). Strategia privind reforma in domeniul asistenfei sociale, retrieved from www.mmssf.ro/pub/.../images/file/.../O1313_2011.pdf.

Molnar, M., (1999). Saracia siprotectia sociala, Bucharest: Fundatia "Romania de Maine" Publishing House.

Radu, R.C., (2009). Elemente de dreptul securitafii sociale, Craiova: Aius Publishing House.

Ticlea, Al., (2009). Dreptul securitafii sociale. Curs universitar, second edition, Bucharest: Universul Juridic Publishing House.

Marina Loredana Belu, Lecturer, PhD, University of Craiova, Faculty of Law and Social Sciences, phone: 0040740300355, e-mail: loribelu@yahoo.com.

Roxana Cristina Radu, Associate professor, PhD, University of Craiova, Faculty of Law and Social Sciences, phone: 0040721400359, e-mail: raduroxanacristina@yahoo.com.

Marius Cristian Neamtu, Lecturer, PhD, University of Medicine and Pharmacy of Craiova, phone: 0040757033888, e-mail: oanacristi_neamtu@yahoo.com.

Oana Maria Neamtu, Teaching assistant, PhD candidate, University of Craiova, Faculty of Physical Education and Sport, e-mail: oanacristi_neamtu@yahoo.com.