sou · H9B369 · 2021-08-20 00:00:00 — The assessment of whether there are remaining rehabilitation possibilities should disregard measures intended to enable the individual to work in a job that they do not have previous expe- rience of. The Inquiry makes the assessment that the general changes pro- posed regarding the work capability concept, the duration require- ment and the requirement that the possibilities of rehabilitation should be exhausted for all individuals will mean relaxations of the regulations that will, in practice, make it easier, especially for older individuals of working age, to be able to obtain sickness compensa- tion. In the Inquiry’s assessment, these changes will considerably reduce the risk of transitioning requirements being applied that can be viewed as unreasonable in relation to the individual’s age. For example, it will not be possible to base a refusal on an assessment that the possibilities of rehabilitation are not exhausted if, in practice, the measures would only be completed after the point in time when the individual can no longer receive sickness compensation. The Inquiry makes the assessment that there are, in addition, reasons to make an additional adjustment of the labour market concept for persons with a long-lasting reduction of their work capa- bility who are coming close to their pension. These special rules are in line with the approach that the individual’s work capability should be examined in relation to jobs that it is reasonable and realistic that the individual can get. Against this background, the Inquiry con- siders that special rules for older individuals are needed to make sickness compensation a benefit that is fit for purpose. As mentioned above, the Inquiry’s terms of reference state that it is important that the individual’s work capability is mobilised as far as possible: that the regulations are appropriately designed so that the right compensation is given to the right person; and that there is no question of departing from the principle that sickness compen- sation is only given to persons with a long-lasting reduction of their work capability. A long-lasting reduction of work capability will still be required, as will the absence of remaining rehabilitation measures, even for older individuals. With the Inquiry’s proposal a reduction of work capability on account of sickness will still be required. Furthermore, the current legislative history already states that re- duced performance linked to natural ageing does not give the right to compensation at this level. This will also apply in the future. Sickness compensation will not be granted in cases of ailments arising from normal ageing that do not reduce the individual’s work capability. The right to activity compensation for reduced work capability Activity compensation for reduced work capability can be granted if the individual applies for the compensation or if replaces the individual’s sickness benefit, rehabilitation benefit, annuity or compensation for hospital care under the Social Insurance Code () with activity compensation. For an individual to have the right to activity compensation their work capability has to be reduced for at least one year as a result of sickness or some other reduction of their physical or mental perfor- mance, Activity compensation is time-limited and is granted for 1– 3 years at a time, at the earliest as of the month when the individual turns 19 and no later than until and including the month when the individual turns 30. The compensation can be granted as a full com- pensation or as three-quarters, one-half or one-quarter of the full level. The Inquiry’s Analysis As regards activity compensation, the Inquiry has found that the increase that took place from the early 2000s up until 2015 in the number of young people receiving this compensation is explained by a combination of factors: an increase in mental ill health among young people; a population increase in the 19–29 age group; and younger and younger people applying for the compensation, which has also meant that they stay longer in the insurance scheme. Even though the compensation is time-limited, it is very common for individuals to be granted several periods of activity compensation. 60 per cent of recipients of activity compensation also move on to sickness compen- sation when they turn 30. Since 2016 there has been a decline and the refusal rate has in- creased. As in the case of sickness compensation, this can chiefly be explained by changes in ’s application of the regu- lations. Like sickness compensation, activity compensation also has problems regarding stability in application of the regulations. For instance, the refusal rate has increased over time, from 13 per cent in 2014 to 40 per cent in 2019. However, it can be noted that the share of refusals in activity compensation has decreased slightly as of 2019. The Inquiry does not make any appraisal of whether the changes in processing were necessary; nor does the Inquiry make any appraisal of whether the subsequent stricter application of the regulations is legally more correct. However, the Inquiry considers that it is problematic, not least from the perspective of legal certainty, that the shares of applications refused and granted can swing so strongly without any amendment to either the legislation or case law. The Inquiry’s proposals When determining an individual’s right to activity compensation the assessment of the insured parson’s work capability should be made in relation to the same labour market concept as is used in the examination of sickness benefit. The Inquiry proposes that when determining the right to activity compensation, the assessment of the individual’s work capability should be made in relation to the same labour market concept as is used when deciding the right to sickness benefit. As mentioned above, a harmonisation of these concepts is judged to be an appropriate change, partly in order to remedy the problem that many individuals remain on long periods of sick leave even though no further measures are available to enable them to improve their work capability. This problem is most common for individuals who are over 30, but can also apply to some extent to individuals under 30 regarding the possibility of replacing sickness benefit with activity compensation if their work capability can be considered to be reduced for at least one year in jobs normally found in the labour market . In that case, the individual will, in other words, continue on sickness benefit even though it is compensation given on a day-to- day basis. There are advantages to harmonising the labour market concept throughout the sickness insurance. It ought, for instance, to make it easier for the actors affected when examining the right to compen- sation. This applies, for example, to assessments made by health care of the individual’s condition. A codified standard of proof should be introduced for the exa- mination of the right to activity compensation. There should be considered to be a right to activity compensation if it is probable that work capability is reduced in the way provided. The Inquiry considers that a codification of the standard of proof should be introduced at the same time for sickness compensation and activity compensation. The Inquiry’s assessment is that the same standard of proof should be introduced as for the right to sickness compensation, i.e. the standard of proof of “probable”. Work, studies, voluntary work, etc. during a period of sickness compensation or activity compensation Depending on whether an individual has been granted sickness com- pensation or activity compensation and when in time the decision was taken, different rules apply concerning their possibilities to work, study, participated in voluntary work, and other activities. In this part, the Inquiry has therefore divided the benefit recipients into three different groups. Group 1 is persons granted sickness compensation under the rules that applied before 1 2008. This target group contains persons granted compensation as of the age of 16 at the earliest. The com- pensation is not time-limited but ends in the month when the person turns 65. The rules for granting sickness compensation were amended on 1 2008. The regulations that applied before that date had less strict requirements for the right to sickness compensation. Persons in group 1 can work, study etc. without any effect on their right to compensation. It is only if they receive income for their work that they have to apply to work under the rules for so called sliding de- ductions. If a person earns more than a certain exempt amount, an amount corresponding to 50 per cent of their income is deducted from the sickness compensation to be paid. Group 2 is persons granted sickness compensation under the rules that applied as of 1 2008. As for group 1, the position is that the compensation is not time-limited but ends in the month when the person turns 65. Group 3 is persons who receive activity compensation for re- duced work capability. A common provision for persons in groups 2 and 3 is that if the work capability of these persons improves while they are receiving compensation, they can work or study with so called dormant com- pensation. This means that their right to compensation stands, but no payment of compensation is made during the dormant period. If they work, their compensation can be partially dormant (at the same levels as compensation can be granted) for at least one calendar month. If they study, the entire compensation is dormant, irrespective of whether their studies are full-time or part-time. Persons who belong to group 3 can also study for a maximum trial period of six months. The trial period means that the individual is allowed to retain their activity compensation while studying. The position for these indi- viduals is that they also have the right to activities under the Social Insurance Code. These activities have to be intended to have a bene- ficial effect on the individual’s condition or physical or mental performance. The Inquiry’s Analysis Group 1 – sickness compensation under the rules before 1 2008 Few individuals in this target group use the possibility of working under the rules for sliding deductions. At the end of 2019 the group numbered around 144 000 individuals. In the same year just over 5 900 individuals were working under the sliding deduction rules. One reason why few individuals in this group work is that, overall, the individuals in this group have low residual work capability. Other factors that have an effect are the onerous administration for work under the sliding deduction rules and concern about possible repayment demands that may not arise until the year after a period of work. Groups 2 and 3 – sickness compensation under the rules as of 1 2008 and activity compensation for reduced work capability A common feature of groups 2 and 3 is that, overall. these indivi- duals have low residual work capability, which means that few use the possibilities of doing paid work or studying while they are receiving compensation. Studies can be a way for individuals to gain or regain work capa- bility and thereby come closer to the labour market. If it is not possible to retain partial compensation during part-time studies, this is a barrier to the individual being able to study while they are re- ceiving compensation. At the same time as these forms of compensation are intended to provide incentives to mobilise the work capability that individuals do have, they are also intended to provide security and good life circumstances for individuals whose work capability is or partly reduced. So there is a conflict here between the objectives of generous compensation systems and drivers to leave the compensa- tion for work and self-support. For the system to be seen as legiti- mate and fair, a well-considered balance is thus required between these two factors. For individuals, concern that this will lead to their work capability being reappraised and their compensation reduced or withdrawn can sow doubt about whether to get involved in vol- untary work or undertake other forms of tasks in their leisure time. One of the purposes of activity compensation is to stimulate young people to engage in activities while receiving compensation. people who have the right to activity compensation can also receive compensation for expenses for activities intended to have a beneficial effect on the individual’s condition or physical or mental performance. However, there is a shortage of activities for persons with activity compensation. has also had difficulty in implementing its coordinating role concerning activities and there is no follow-up of the activities at the individual and general level. The Inquiry’s Proposals Group 1 – sickness compensation under the rules before 1 2008 The exempt amounts under the sliding deduction rules should be based on the income base amount. Many individuals working under the sliding deduction rules have incomes that fall within the exempt amount applicable to them. Doing so means that the individual does not risk having their work income affect their payments of sickness compensation; it also reduces the risk that they will be liable to repay compensation paid at the reconciliation, which is not made until two years after they have worked under the sliding deduction rules. Under present legis- lation, exempt amounts for sliding deductions are calculated using the price base amount. To give these individuals incentives to work to a greater extent, the Inquiry proposes that exempt amounts should be calculated on the basis of the income base amount. Since the exempt amounts relate to income, the present calculation of these amounts using the price base amount do not, however, follow the general growth of earnings to a sufficiently high a degree. Instead, the exempt amounts have been eroded over time since incomes from work have increased faster than prices. This means that, in practice, a person working today under the sliding deduction rules can work less time before reaching their exempt amount compared to when the system was introduced in 2009. To ensure that the exempt amounts will follow earnings growth better, the Inquiry thus proposes that the income base amount also be used to calculate the exempt amounts for sliding deductions. This alteration of the calculation may possibly also induce some individuals who currently do not work at all under the sliding deduc- tion rules to start working since, thanks to this change, they will have higher before payment of their sickness compensation is affected. , it is primarily the marginal effects for individuals on low incomes that will be reduced with this proposal. should be commissioned to develop calculation support for sliding deductions of sickness benefit. There is uncertainty among some people covered by the sliding de- duction rules about what the financial consequences would be if they worked under these regulations. Several individuals who are consid- ering working with sliding deductions also want to get help from in calculating their incomes. If individuals have incomes that are higher than was calculated, they risk needing to repay their compensation two years after working under the sliding deduction rules since their final sickness compensation is set when the individual’s pensionable income has been set by the . Calculation support for sliding deductions can reduce the uncer- tainty concerning the financial effects for the individual of working under these regulations and can therefore mean that more people will dare to work under the sliding deduction rules. The Inquiry there- fore recommends that should be commissioned to develop calculation support for sliding deductions of sickness benefit. Group 2 – sickness compensation under the rules as of 1 2008 and group 3 – activity compensation for reduced work capability flexible possibilities of working with dormant sickness com- pensation and activity compensation should be introduced: Slid- ing declarations of dormant compensation should be possible. The shortest possible period for which it should be possible to declare the compensation dormant should be one hour per calendar month. At present few individuals make use of the possibility of doing paid work with dormant sickness compensation or activity compensation. One of the main explanations of the low uptake is that, in general, individuals who have been granted sickness compensation have very limited work capability and this capacity does not improve over time either. Another important explanation is that the nature of the labour market means that these individuals often have difficulty finding a job that suits them and an employer who is willing to receive them. There is also a concern among many individuals that their compen- sation may be withdrawn or reduced on being granted or after work with dormant compensation as well as a fear that they will only be able to cope with working for short periods at a time. The fact that the system of dormant compensation while working is not particularly flexible is yet another factor that can make it more difficult for indi- viduals to work during a period with compensation since it does not provide scope for short periods of work. With a system of dormant compensation that also permits short spells of work without the compensation having to be declared dor- mant for a whole month, more individuals can be given scope to also use their residual work capability in more temporary work. This can also increase the possibilities that every individual can use the resid- ual work capability they de facto possess. It is also conceivable that it would make it easier for individuals to accept a job opportunity that suits them even if it is of a more temporary and less extensive nature. The Inquiry’s assessment is that a more flexible rule of this kind could be a more suitable and more predictable system both for the individuals and for potential employers. A more flexible possibility of dormant compensation could also contribute to reducing the con- cern among individuals that work with dormant compensation risks leading to their benefit being withdrawn or reduced. It should be possible to have sickness compensation and activity compensation declared partially dormant during a period of studies: When an individual studies, their compensation should be de- clared dormant to an extent that corresponds to how much they are studying, but with dormant compensation at one of the levels full, three-quarters, half or one quarter. Extremely few individuals make use of the possibility of studying with dormant compensation. In the Inquiry’s assessment it is desir- able that more individuals test their study capacity, partly because studies can both be a path into working life and an end in themselves for greater quality of life. One barrier to individuals making use of the possibility of dormant compensation for studies is that it is not possible to have partial compensation when studying even when the person concerned intends to study part time. The present regulations providing that the whole of the compensation is declared dormant irrespective of the scope of the studies is, in the Inquiry’s assessment, a major barrier to more people daring to use the possibility of study- ing with dormant compensation. Voluntary work, leisure activities or other activities of a volun- tary nature should not affect the right to sickness compensation unless they mean that the individual displays a work capability corresponding to paid work in a specified occupational group that contains jobs normally found in the labour market or other suitable work that is available to the individual. However, an individual should always have the right to engage in tasks in the form of voluntary work or other undertakings of a voluntary nature, as long as their total scale is less than ten hours per week and they do not provide any income. In these cases no assessment should be made of work capability demonstrated. There are major uncertainties about the limits that determine what kinds of activities an individual can take part in in their leisure time without this affecting their right to sickness or activity compensa- tion. These uncertainties often have the effect that persons with sick- ness or activity compensation are reluctant to participate in e.g. volun- tary organisations. The Inquiry is therefore of the view that changes are required to the regulations that make it easier for individuals to participate in community life without a risk that these activities will entail that their sickness compensation will be reviewed and withdrawn. Here a balance needs to be struck between, on the one hand, greater pos- sibilities that encourage individual individuals to participate more in community life and, on the other hand, the legitimacy aspect that persons who display great capacities and improvement compared with when the decision on their compensation was made should not be able to simply retain their compensation. In the Inquiry’s assess- ment, the present proposal is balanced in terms of these opposing considerations. Group 3 – activity compensation for reduced work capability The trial period for studies should be extended to 12 months. The trial period for studies gives individuals a possibility of studying without payment of their activity compensation being affected. However, for many individuals a trial period of six months is too short. The trial period can also be shorter than six months’ studies since a calendar month is used up irrespective of how many days the individual actually studies in that month. Moreover, it can be seen as unfair that the trial period is six months irrespective of the pace of the individual’s studies since it can be felt that individuals who study full time are able to get more out of their studies during the period concerned than individuals studying part time are able to. It is also be good if more individuals test their study capacity, both because it can be a path into working life and because it in itself is a meaningful activity. A new labour market policy framework programme should be set up for individuals who have been granted activity compensation and who need measures from the , Arbetsförmedlingen, in order to gain or regain work capa- bility. The framework programme should include measures relating to employment preparation activities and vocational rehabilita- tion activities that are adapted to the needs of the individual. The individuals who have activity compensation on account of re- duced work capability are young and often have both mental ill health and a disability. This is a vulnerable group that is, in different ways, often in need of society’s support to gain work capability and get possibilities of supporting themselves through paid work. However, activity compensation has not come to be characterised by the approach that was envisaged when the benefit was introduced. For instance, the range of measures that the young people receive does not correspond to the needs and demands of the recipients of activity compensation. At present, Arbetsförmedlingen and Försäkrings- kassan collaborate to support young people granted activity com- pensation. Even more needs to be done in this regard, not least be- cause the requirements to be granted activity compensation will, according to the proposals in this report, be slightly more generous. The Inquiry therefore proposes that the activities will be provided with special framework labour market policy programme specifically aimed at young people with activity compensation. should be commissioned to develop statistics on what activities under the Social Insurance Code individuals participate in.