Luxembourg Minister of Social Security, Romain Schneider, presented the draft law of dependency insurance on Wednesday to the Labour, Employment and Social Security Commission of the Chamber of Deputies.
The Minister has previously stated that the individual is to be at the heart of the reform, although the draft law has been criticised by trade union LCGB as dismissive of the considerations of social partners.
Dependency insurance has formed the fifth pillar of social security since 1998 and currently supports over 13,500 people. Reasons behind its reform have been cited as a means of meeting the challenges of a constant change among the national population and guaranteeing equitable access to quality services.
The major objectives of the reform are to provide better individualised services in response to the daily needs of each person with a view to enhancing the quality of standards and clear criteria, simplifying procedures and consolidating the system with respect to societal evolution and the fundamental principles of the base law of 1998.
“Dependency insurance offers our fellow citizens, in need of assistance and care, access to the appropriate and high quality services,” stated Minister Schneider at a press conference following the presentation. “This reform is a reform closer to the citizen, meeting their expectations and needs. It is now about adapting the dependency insurance device to the requirements of a constantly changing society. The reform of dependency insurance will guarantee long-term access to the affordable services required by each.”
The minister also reaffirmed that the appropriate transitional measures will be implemented for both assistance and care recipients and providers, to ensure an easier move to the new system.
In addition, short-term financial measures will allow for the support of networks and institutions, to ensure continued employment, following the financial imbalance experienced in recent years due to a discrepancy between the evolution of expenditure and investments and changes in the number of beneficiaries. The number of beneficiaries has encountered a smaller growth in recent years than in the past, and has even stagnated among certain providers.