Luxembourg's Ministry of Social Security has presented details of the new social security provisions following the Brexit withdrawal agreement.

Following the United Kingdom's (UK) withdrawal from the European Union (EU), two agreements now deal with the right to social security: the EU-UK Withdrawal Agreement, signed on 24 January 2020, and the EU-UK Trade and Cooperation Agreement, adopted on 24 December 2020, which includes a protocol on social security coordination.

On Thursday morning, Luxembourg's Minister of Social Security, Romain Schneider, informed the labour, employment and social security committee about the changes in social security law due to the Brexit withdrawal agreement. Details can be found below.

Cross-border workers

Cross-border workers, as of 31 December 2020, between the EU and the UK continue to benefit from the application of European regulations on the coordination of social security after the aforementioned date. For instance, a Luxembourgish cross-border worker (status on 31 December 2020) who is subject (affiliated) to UK social security because he / she works there, or a Briton who is subject to Luxembourg social security due to work will continue to benefit from all European regulations on social security, as long as they remain in one of these situations, uninterrupted.

Individuals who were cross-border workers between the EU and the UK before 31 December 2020, but who ceased to be so on that date also benefit from protection. For instance, a Luxembourger who worked in the UK for several years before returning to work in Luxembourg will be entitled to the inclusion of periods of insurance in the UK for his / her old-age pension in Luxembourg. The same will apply to Luxembourg insurance periods for the granting of his / her British pension. The British pension will be paid to him / her in Luxembourg and he / she will benefit from any adaptations provided for by British law, as if he / she were residing in the UK.

The Protocol on Social Security Coordination aims to coordinate the application of social security laws between EU Member States and the UK for EU citizens who work or settle in the UK and for British nationals working or settling in the EU after 31 December 2020. Regarding sickness benefits and healthcare, the protocol largely adopts the same principles as those of European coordination. Persons insured in an EU Member State who are staying or residing in the UK may continue to receive healthcare in the state of residence or stay at the expense of the state of affiliation. Under current regulations, there are interstate refunds.

The provisions relating to workplace accidents and occupational diseases as well as those relating to old-age and survivors' pensions include the same principles as the corresponding chapters of European coordination. Insurance periods in the UK may be combined with insurance periods completed in Luxembourg or in another Member State to give entitlement to a pension. The rules relating to the calculation of old age or survivor's pensions will continue to apply as in the framework of European regulations.

The protocol does not apply to long-term care (dependency) benefits and the coordination of disability benefits is subject to changes. The calculation of invalidity benefits will no longer be modelled on the calculation of old-age pensions as is the case in European coordination.

Family benefits do not fall within the scope of the protocol and only national legislation will apply. Consequently, a worker insured in Luxembourg will not be able to benefit from family allowances for his / her children who live in the UK and vice versa.

Secondment rules will remain identical to those of the European coordination for all EU Member States and the UK within the framework of the protocol. However, secondments will be limited to 24 months in relation to the UK and cannot be extended by common agreement of the competent authorities.

Students

Co-insured Luxembourg students pursuing their studies in the UK will be able to continue to use their European Health Insurance Card (EHIC) during their stay to access any required healthcare.

However, the British authorities may request the payment of a health contribution (immigration health surcharge) from students having started their studies after 31 December 2020, if the duration of their stay in the UK exceeds six months. A reimbursement of the health contribution may be requested from the competent British authorities if the student is in possession of a valid Luxembourg EHIC.

Travel

Luxembourg insureds can continue to use their EHIC during their holidays in the UK to access any healthcare that may be required during their stay.

The protocol is applicable for a period of fifteen years, after which discussions will have to recommence for its possible renewal.

Further information is available on Guichet.lu.