1 Social Security & Employees Benefits Administration AN INTRODUCTION TOSOCIAL SECURITY
2 1.0 INTRODUCTION OF SOCIAL SECURITY Objectives of the lecture:After completing this lecture, the students should be able to:Understand the conceptDescribe the scope and perspective of Social SecurityDescribe the aims and objectives of Social SecurityDescribe the basic principles of social securityIdentify the major aspects of Social Security administration
3 1.1 DEFINITION OF CONCEPTSocial Security – refers to community or state protection for individuals or families who are in need or distress.
4 DEFINITIONSocial Security – is a public assistance program to alleviate poverty, prevent a significant and abrupt fall in the standard of living upon retirement, death or disability, and to make adequate health care accessible and affordable.
5 DEFINITIONSocial Security – is a social insurance program that government provides for the society, through a series of public measures, against the economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earnings resulting from sickness, maternity, employment injury, unemployment, invalidity, old age and death, the provision of medical care; and the provision of subsidies for families with children. (ILO,1984)
6 DEFINITIONOther definition…A social insurance program that covers most of the Nation's work force. It is often the basic retirement plan to which other benefits are added. It provides retirement, disability, survivor, and Medicare benefits.The comprehensive federal program of benefits providing workers and their dependents with retirement, disability income, etc.
7 1.2 MAIN CHARACTERISTICS OF THE SOCIAL SECURITY PROGRAMS Social security programs are established by government statuteThe programs generally provide individuals with cash payments that replace at least part of the income loss from old age, disability and death, sickness and maternity, unemployment and occupational disease.(Family allowances and statutory programs that provide medical care (other than public health service) are also considered social security programs).
8 DEFINITION OF RELATED CONCEPTS Public Assistance ProgramsAre offered only for those individuals who can demonstrate need,the amount of the benefit is based on the extent of the demonstrated need.Final decisions on both eligibility and benefit amounts are made on a discretionary basis by the officials administering the public assistance programs.
9 DEFINITIONOther definitions…The federal and state system for providing welfare payments to the aged, blind, and disabled and to families with dependent children. See also Social Insurance (G)Support, money or goods granted by the state to a person or family base on income; commonly known as welfare benefits.
10 Social Insurance Programs Are offered regardless of need to all persons who satisfy certain requirements.These includes all insurance arrangement in which the government acts as the insurer, subsidies the operation, or requires insured to purchase the protection.
11 Government insurance programs with certain characteristics that distinguish them from other government insurance programs.Programs are generally compulsory;specific earmarked taxes fund the programs; benefits are heavily weighted in favor of low-income groups; and programs are designed to achieve certain social goals.
12 1.3 THE BASIC PRINCIPLES OF SOCIAL SECURITY The person eligible for coverage must be covered (become member of the social security programs)Eligibility for the benefits is derived from contributions having made to the program by or in respect to (a) the claimant or (b) the person as whom the claimant is dependent.
13 BASIC PRINCIPLESThe method for determining the benefits is specifically prescribed by law. The benefits for any individual can be directly related to contributions made by or in respect to himThe benefits for any individual can be directly related to contributions made by or in respect to him.
14 The plan is administered or at least supervised by the government. BASIC PRINCIPLESThere is a definite plan for financing the benefits and it is designed to be adequate in terms of long-range considerations.The cost of the program is borne by contributions that are usually made by covered persons, their employers or both.The plan is administered or at least supervised by the government.
15 1.4 THE MAJOR ASPECT OF SOCIAL SECURITY Social Security Policy / LegislationSocial Security OrganizationFunds and Financing of Social SecurityCoverage of the Social Security programsBenefits offered by the programsEnforcement of the rules and regulationsSocial Security and National EconomyThe roles of government and ILO
16 Importance of social security Protection for the well-being of workers, families and the entire communities – against risk,basic human rights,fundamental means for creating social cohesion,help to ensure social peace & social inclusion,tool to prevent & alleviate poverty,a contribution to human dignity , equity & social justice through national solidarityfair burden sharingincome replacement,income maintenance,income redistribution
17 Good governance in social security To ensure the conformation to certain basic principles in social security,to ensure the benefits are secure & non-discriminatory,scheme should be managed in sound & transparent manner,to ensure public confidence
18 Tutorial Describe the concept of social security Differentiate between social insurance and public assistanceFind the term social protection and its definitionDiscuss the importance of social security benefits/programmes