Social protection benefits by functions, criteria, implementation 1994-2012

Table explanation

Description topics

Total social protection benefits

Social protection encompasses all interventions by public or private
bodies intended to relieve households and individuals of the burden of a
defined set of risks or needs, provided that the recipient does not have
to do anything in return, and that no individual arrangement is involved.
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Support in cash or kind in aid of education is included in the social
protection benefits. This function is not included in social protection as
defined by Eurostat for international comparisons, but is included in
social benefits as defined in the National Accounts. To ensure
compatibility with the National Accounts, this function has now been
added.

Functions social protection benefits

Social protection encompasses all interventions by public or private
bodies intended to relieve households and individuals of the burden of a
defined set of risks or needs, provided that the recipient does not have
to do anything in return, and that no individual arrangement is involved.
The functional classification of social protection benefits arranges the
social protection schemes according to this set of risk and needs
(functions). If a scheme fulfils more than one function, the benefit is
divided over these functions. The sum of the benefits in all the
functions adds up to the total amount of benefits paid by all social
protection schemes in the year concerned.

Sickness/Health care

To ensure income and financial support in the case of physical or
mental illness, excluding disability. Health care is care intended to
maintain, restore or improve the health of the people protected
irrespective of the origin of the disorder.

Disability

To ensure income and support in cash or kind (except health care) in the
case of incapacity of physically or mentally disabled people to engage in
economic and social activities.

Old age

To ensure income and support in cash or kind (except health care) in
the case of old age.

Survivors

To ensure income and support in cash or kind in the case of the death of
a family member.

Family

Support in cash or kind (except health care) for costs of pregnancy,
childbirth and adoption, bringing up children and caring for other family
members.

Unemployment

To ensure income and support in cash or kind in connection with
unemployment.

Housing

Help towards the cost of housing.

Education

Support in cash or kind in connection with obtaining an education.

Social exclusion not mentioned above

Benefits in cash or kind (except health care) specifically intended to
combat social exclusion, where not covered by one of the other
functions.

Criteria for social protection benefits

Social protection encompasses all interventions by public or private
bodies intended to relieve households and individuals of the burden of a
defined set of risks or needs, provided that the recipient does not have
to do anything in return, and that no individual arrangement is involved.
The social protection schemes can be arranged according to criteria. For
each criterion the schemes are placed into two or more categories. A
scheme falls into one category for each criterion. The sum of the
categories within a criterion adds up to the total amount of benefits paid
by all social protection schemes.

Decision-making

Decision-making refers to the unit that takes the most important
decisions: the level of benefits, the terms on which they are paid and
the ways in which the scheme is financed. Schemes may be
government-controlled or non-government-controlled.

Government-controlled schemes

Government-controlled schemes consist of social protection schemes in
which the government takes all the principal decisions about the level of
benefits, the terms on which they are paid and the ways in which the
scheme is financed.
Government-controlled social protection is usually established by law or
regulation. It includes all schemes that provide protection to public
servants on the same lines as that provided to the general population by
government-controlled schemes, but excludes schemes that the government
may set up in its role of employer and which have no government-controlled
counterparts in the private sector. These schemes are classified as non-
government-controlled schemes for employees.

Non-government-controlled schemes

Non-government-controlled schemes for employees are social protection
schemes organised (but not necessarily run) by employers for their
employees, former employees and their dependants. Other
non-government-controlled schemes are not organised particularly for
employees.

Legal enforcement

Legal enforcement refers to the rules laid down in legislation concerning
the membership of the protected subjects. Membership of a social
protection scheme may be compulsory or non-compulsory. The concepts
compulsory and non-compulsory are interpreted from the point of view of
the persons protected.

Compulsory schemes

Compulsory schemes are social protection schemes where membership is made
compulsory by the government.

Non-compulsory schemes

Non-compulsory schemes are all social protection schemes where membership
is not made compulsory by government.

Establishment of entitlements

Establishment of entitlements refers to the basis on which the protected
person is eligible for benefits: conditional or not conditional on
payment of contributions.

Contributory schemes

Contributory schemes are social protection schemes that require the
payment of contributions, by the protected persons or by other parties on
their behalf, in order to secure individual entitlement to benefits.

Non-contributory schemes

Non-contributory schemes are social protection schemes in which
eligibility to benefits is not conditional on the payment of
contributions by the protected persons or by other parties on their
behalf.

Scope

Scope of the scheme refers to the part of the population that is
protected (the whole population, all or the majority of workers or
specific sections of the population).

Universal schemes

Universal schemes are schemes which apply to the whole population;
i.e. all residents or nationals, irrespective of social or occupational
status, are eligible to receive social benefits upon
materialisation of specific risks or needs. A typical universal scheme is
the old age pension scheme (AOW).

General schemes

General schemes are those which apply to the total or the majority of the
economically active population. A typical general scheme is the
unemployment benefit scheme (AWW).

Special schemes

Special schemes are schemes designed to protect a specific, restricted
section of the population. A typical special scheme is the military
pensions scheme.

Level of protection

Level of protection refers to whether social protection schemes offer a
basic or a supplementary level of protection.

Basic schemes

Basic schemes are social protection schemes that guarantee a basic level
of protection. A basic level of protection means the lowest level of
protection (based on the number of years of contributions/employment
and/or residency), without it strictly being understood as the level of
resources allowing only the minimum socially acceptable standard of
living. Basic old age pension schemes, for instance, typically guarantee
either a flat-rate pension and/or a limited percentage of former earnings
which may or may not be supplemented by other provisions. The term 'first
pillar' is often used for basic schemes.

Supplementary schemes

Supplementary schemes are social protection schemes that:
- top up cash benefits granted by the basic scheme, or;
- extend the coverage of the basic scheme, or;
- replace the basic scheme where conditions for entitlement to the basic
scheme are not fulfilled.
The term 'second pillar' is often used for supplementary schemes.

Implementation

The sector providing the social protection benefit.
Example 1: If a government employee falls ill, his salary will still be
paid by his employer (the government). This is called paid sick-leave.
After 2 years of illness, he will be eligible for the legal social
insurance benefit WIA. Benefits under the WIA are implemented by the
Institute for Employee Benefit schemes (UWV), which is a part of the
sector government.
Example 2: At the moment a person retires, he will receive his AOW pension
from the SVB, which is part of the sector government. If this person is
also entitled to an additional pension benefit, this additional pension
will be paid out by the Pension funds sector.

Directly through employers

Payments made directly by employers to their employees, with regard to
social protection benefits. For example paid sick-leave. No
distinction is made between the sectors that the employers operate in.

Pension funds / Insurance companies

Pension funds collect premiums and pay employee pensions. They are also
responsible for pensions for surviving relatives and disability
pensions. Insurance companies were responsible for industry-related
health care insurance until 2006.

Soc. benefits ind. non-market producers

Social benefits paid by individual non-market producers.
Direct services by government to families, which are not a part of social
benefits in kind or in cash as defined in the National Accounts. For
example vaccinations at local health clinics.

Sector Government

The sector government implements all social benefits in cash and in kind
provided to private persons. These are provided by central and local
government under social insurance and assistance legislation.