Social Protection 283
A2.23 Th e typology of employment-related social
insurance schemes further distinguishes based on the
types of benefi ts provided by the scheme: Employment-
related pension schemes provide pension and other
retirement benefi ts and are discussed in paragraphs
A2.41–A2.59; employment-related nonpension social
insurance schemes provide nonpension benefi ts and
are discussed in paragraphs A2.64–A2.66. Th ese ben-
efi ts may be provided in cash or in kind, similar to the
benefi ts as described in paragraph A2.27.
A2.24 Employment-related pension and other re-
tirement benefi t schemes can further be distinguished
by whether they are funded or unfunded (see para-
graph A2.17). While unfunded schemes are always
considered nonautonomous, for funded schemes a
further distinction is made between those that are
nonautonomous (see paragraph A2.44) or autono-
mous (see paragraph A2.47).
Social Assistance
A2.25 Social assistance provides social protection
benefi ts to all persons who are in need without any
formal requirement to participate as evidenced by the
payment of contributions. Th e eligibility to receive
social benefi ts is not conditional on the payment of
contributions by the protected persons or by other
parties on their behalf. Th ere may, however, be spe-
cifi c eligibility criteria, such as a “means test,” where
the expression indicates a maximum qualifying level
of income or assets. Th e benefi ts payable by such an
arrangement are social assistance benefi ts. Social as-
sistance benefi ts (272) are transfers payable in cash or
in kind to households to meet the same needs as social
insurance benefi ts but are not made under a social in-
surance scheme (see paragraph A2.30).A2.26 All social assistance is organized and oper-
ated by government units and NPISHs. Th e benefi ts
are payable to households, out of the unit’s general re-
sources, according to the specifi ed criteria. Eligibility
is purely related to the criteria stipulated in the social
protection arrangement.A2.27 Social assistance benefi ts may be provided
in cash or in kind. Th e classifi cation of this expense
is further discussed in paragraphs 6.101–6.102, and
Table A2.1 illustrates the recording of fl ows related to
social assistance. Social assistance benefi ts in kind are
recorded when:Table A2.1 Illustrative Recording of Flows Related to Social Assistance
Description Debit Credit
1.1 Government provides benefi ts payable to qualifying persons who have met the eligibility criteria of a social
assistance arrangement
Assistance to households
in cash2721 Social assistance benefi ts in
cash3212 / 3318 Currency and deposits /
Other accounts payable^1
1.2 Government provides goods purchased from market producers to persons who have met the eligibility criteria of a
social assistance arrangement
Government acquires the
goods31224 Inventories (goods for
resale)^23212 / 3318 Currency and deposits /
Other accounts payable^1
Government provides
goods2722 Social assistance benefi ts in
kind31224 Inventories (goods for
resale)^2
1.3 Government reimburses market providers or households for goods and services acquired from market entities in
accordance with the conditions of a social assistance arrangement
Government reimburses
providers or households2722 Social assistance benefi ts in
kind3212 / 3318 Currency and deposits /
Other accounts payable^1
1.4 Government produces and provides goods or services to the population in accordance with the condition of a social
assistance arrangement
The operational costs
incurred in the production
of the goods and services
are recorded as relevant21, 22, 23 Compensation of employees,
use of goods and services,
and consumption of fi xed
capital3212 / 3318 Currency and deposits /
Other accounts payable^1(^1) In a cash reporting environment, the expense will be recorded at the time of the cash fl ow. In an accrual reporting environment, an other
account payable should be recorded in cases where the payment is not made when the eligibility criteria have been met.
(^2) The fl ow of inventories will be recorded only in an inventory accounting system.