278 Government Finance Statistics Manual 2014
similar policies, and members of households
are able to predict with a reasonable degree of
certainty what they will receive and when.
Th erefore, contributions and payments of these
benefi ts are transactions in fi nancial assets and
liabilities.
A2.4 Depending on the nature of the social protec-
tion arrangement, the unit that administers the ar-
rangement could earn revenue (social contributions)
and/or incur expense (social benefi ts) related to the
social protection arrangement. Social contributions
[GFS] (12) are actual or imputed revenue receivable
by social insurance schemes to make provision for so-
cial insurance benefi ts payable (see paragraphs 5.94–
5.100). As an expense, social benefi ts [GFS] (27) are
current transfers receivable by households intended
to provide for the needs that arise from social risks
(see paragraphs 6.96–6.106). Alternatively, the unit
that administers the arrangement could be involved
in transactions in fi nancial assets and liabilities, clas-
sifi ed as insurance, pensions, and standardized guaran-
tee schemes (see paragraphs 7.178–7.202).
A2.5 Th e social risks covered by social protection
vary from country to country and from scheme to
scheme. Generally, social protection may be divided
into two classes—namely:- Pensions and other retirement benefi ts
- All other social benefi ts, collectively described as
nonpension social benefi ts.
A2.6 Pensions and other retirement benefi ts are
payable when individuals cease employment upon
retirement. Pensions may also be payable to other
individuals—for example, a bereaved spouse or other
dependents, or to someone suff ering from a perma-
nent disability. As indicated in Figure A2.1, pensions
and other retirement benefi ts are provided to individ-
uals via social assistance, social security, employment-
related pension schemes, or private insurance.
A2.7 Nonpension social benefi ts include pay-
ments made to individuals when they are temporar-
ily unemployed, suff ering from a medical condition,
or suff ering from an event that prevents them from
working for a period. Th e following list of typical non-
pension social benefi ts illustrates their general nature: - Th e benefi ciaries, or their dependents, require
medical, dental, and other treatments, or hos-
pital, convalescent, or long-term care as a result
of sickness, injuries, maternity needs, chronic
invalidity, old age, etc. Th ese social benefi ts are
provided in kind in the form of treatment or care
provided free or at prices that are not economi-
cally signifi cant, or by reimbursing expense in-
curred by households or individuals.- Th e benefi ciaries have to support dependents
of various kinds: spouses, children, elderly rela-
tives, physically or mentally disabled persons,
etc. Th ese social benefi ts are usually payable in
cash in the form of regular dependents’ or family
allowances. - Th e benefi ciaries suff er a reduction in income
as a result of not being able to work full-time.
Th ese social benefi ts are usually payable regularly
in cash for the duration of the condition or for
a maximum period. In some instances, a lump
sum may be provided additionally or instead of
the regular payment. People may be prevented
from working for various reasons, including in-
voluntary unemployment, temporary layoff s,
short-time working, sickness, accidental injury,
the birth of a child, etc. - Th e benefi ciaries suff er a reduction in income
because of the death of the main income earner.
Th ese social benefi ts are usually payable in cash,
oft en in the form of regular allowances or, in
some instances, a lump sum. - Th e benefi ciaries are provided with housing ei-
ther free or at prices that are not economically
signifi cant, or by reimbursing some of the ex-
pense they incur. - Th e benefi ciaries are provided with allowances to
cover education expenses incurred on behalf of
themselves or their dependents; education ser-
vices may occasionally be provided in kind (i.e.,
education services provided free or at prices that
are not economically signifi cant^4 to those subject
to social risks).
A2.8 Social benefi ts can be provided in cash or
in kind. If provided in kind, the goods or services
could be produced by the unit providing the ben-
efi ts, they could be purchased by the unit providing(^4) In this case, the social benefi t will cover only the diff erence be-
tween the normal price of such services and the price payable.