Government Finance Statistics Manual 2014

Social Protection 279

the benefi ts from a market producer before distrib-
uting them to the household, or the households
could purchase the goods and services and be reim-
bursed. Some benefi ts are provided indirectly, such
as through tax allowances, exemptions, and deduc-
tions; benefi ts provided in this manner are not con-
sidered social benefi ts in GFS. However, if social
benefi ts are made available via the tax system in the
form of payable tax credits, these payable tax credits
should be recorded on a gross basis and recorded
as a social benefi t payable by government (see para-
graphs 5.29–5.32).

A2.9 In GFS, a social benefi t expense is always a
transfer payment because the benefi ts are provided
without the recipients being required to provide
something of equivalent value in return. Allowances
provided as compensation of employees or loans pro-
vided by employers to employees are not social bene-
fi ts. Transfers are defi ned and explained in more detail
in paragraph 3.10.

A2.10 Social benefi ts do not include transfers pay-
able in response to events or circumstances that are
not normally covered by social insurance schemes.
Th erefore, transfers made in response to unusual
events, such as natural disasters or destruction dur-

ing wars, should be recorded as transfers not elsewhere

classifi ed (282) in GFS (see paragraphs 6.122–6.126).

Boundary between Social Protection and Private Insurance.

A2.11 Social benefi ts are provided by general gov-

ernment employers to their employees and their de-

pendents, or other units, such as trade unions and

nonprofi t institutions serving households. Social ben-

efi ts are always provided in collective arrangements.

Consequently, individual insurance policies taken out

on the private initiative of individuals or households

solely in their own interest are excluded from social

protection arrangements. When individuals take

out insurance policies in their own names, on their

own initiative, and independently of their employers

or government, the claims receivable are not treated

as social benefi ts, even if the policies are taken out

against the same kinds of social risks as those listed in

paragraphs  A2.6–A2.7—these private initiatives are

treated as private insurance.

A2.12 Individual saving arrangements that main-

tain the integrity of the participants’ contributions

and are restricted to protecting against social risks are

private insurance schemes. Under such arrangements,

Figure A2.1 Boundary between Social Protection and Private Insurance

(^1) Including defi ned-contribution schemes, treated similar to life insurance.
Social Assistance Social Security
Schemes
Nonpension
Schemes
Pension
Schemes
Nonlife Insurance
Schemes
Life Insurance
Schemes
Amounts
receivable:

• None

Amounts

receivable:

Amounts

receivable:

Amounts

receivable:

Amounts

receivable:

• Social security
  contributions
  (revenue)
  
  
  • Other social
    contributions
    (revenue)
    
    
    • Incurrence of
      liabilities through
      actual and imputed
      contributions
      
      
      • Incurrence of
        liabilities through
        actual
        contributions
      
      
      
      
    
    
    
    
  
  
  
  

Amounts payable: Amounts payable: Amounts payable: Amounts payable: Amounts payable:

• Social assistance
  benefits (expense)
  
  
  • Social security
    benefits (expense)
    
    
    • Employment-
      related social
      benefits (expense)
      
      
      • Reduction in
        liabilities through
        pensions paid
      
      
      
      
    
    
    
    
  
  
  
  

Amounts

receivable:

• Premiums
  (revenue)
  Amounts payable:


• Claims (expense)
  
  
  • Reduction in
    liabilities through
    pensions paid
  
  
  
  

Insurance

Social Insurance

Employment-Related Social

Insurance Schemes^1

Private Insurance

Social Protection

Individual Insurance