Social protection is the provision of cash or goods by public bodies to help households cope with life’s risks. This includes subsidized insurance against impoverishing losses from livelihood disruptions, sickness and death.
ESSPROS divides spending on social protection into 8 broad categories. The old age category accounted for the largest share of expenditure in both 2013 and 2014. Expenditure on private pensions rose most dramatically.
ביטוח לאומי is based on the simple idea that most of us will need to have income after we stop working full time. This is because, as we get older, it will become harder and harder to find work that pays enough to cover all of our expenses.
While we are still working, we pay Social Security taxes out of each paycheck, and when we retire or become disabled, we receive a monthly check that is based on our reported earnings. This may not replace all of our income at retirement, but it can help to offset other sources of income such as personal savings and private pensions.
In most cases, the benefit you will receive when you retire will be based on your average final compensation (FAS), which is calculated by multiplying your total years of credited service by your average monthly wage. This amount will increase each year as a result of the cost-of-living adjustment, which is determined by the Department of Labor by using the Consumer Price Index for Urban Wage Earners.
If you are a member of a defined benefit, money purchase or target-benefit plan, your benefits will include a qualified joint and survivor annuity (QJSA or QPSA), which is a single-life annuity paid to a spouse after the death of a vested participant, unless waived.
Disability benefits pay a portion of your paycheck when you are unable to work because of a severe and disabling health condition. You may qualify for disability if you cannot perform your regular job due to a medical illness, injury or pregnancy. The amount of the benefit is based on your base salary and does not include commissions, bonuses, overtime, shift differential or stipends. Disability benefits are paid from the eighth day of disability for a maximum of 26 weeks in a year.
In order to be eligible for disability, you must have used all of your sick and annual leave. You must also have satisfied the required waiting period, which consists of a minimum 13-week absence from work. This period may be interrupted by vacation, holidays and/or personal days that you take. In addition, any other income you receive may reduce your short-term and/or long-term disability benefits.
The State offers long-term and short-term disability insurance to all full-time central state government, state higher education and state offline employees through MetLife. If you enroll in TIPP, your monthly premium is deducted from your paycheck. If you are disabled, a check is issued from the insurance company on a weekly basis (based on your base salary) starting on the eighth day of disability and continuing for up to 26 weeks.
In the event of your untimely death before retirement, depending on your beneficiary designations, there may be a Survivor Pension awarded or a refund of contributions (including any interest gained) paid. Your beneficiary designations are important to review regularly, particularly during major life events (i.e., marriage, new child, divorce).
If you elect Option D – Straight Life Annuity, your payments stop at your death. If you have designated a contingent annuitant (spouse or children), they will continue to receive a portion of your monthly benefit until their death.
For members who elected Option A – 50% Spouse, an annuity is paid to your spouse for life at a reduced rate. At your death, the annuity continues for 50% of the amount you would have received if you had chosen Option D. In both cases, the surviving spouse is also entitled to a lump sum equal to two years of payments.
If you were a Tier 6 member and you elected Option C, your spouse or contingent annuitant will be paid a maximum reversionary annuity of $100,000 in equal monthly installments over a period of 10 years. Payments end if the annuitant dies or remarries during that time. The reversionary annuity is in addition to any other weekly benefits your spouse or contingent annuitant is entitled to receive from the Plan.
For many families, child benefits make a big difference. “They helped us pay for things like gas to keep the heater on,” says Riddick, who lives in Philadelphia. She also used the money for groceries, underwear, socks and school supplies for her two children.
The program, known as the Social Insurance Board (SVB), pays EUR140 a month for each child, or one-and-a-half times the normal amount for twins and triplets. It is paid every quarter—January, April, July and October—into your bank account. You can check your payment date on My SVB, logging in with DigiD or another EU-approved login key.
SBP costs are based on your age and that of your youngest child, as well as other factors. Contact DFAS or your personnel counselor for an exact cost computation.
Those who are off work looking after a child should claim for the benefit, even if they don’t think they will be entitled to much. This is because the payments count as National Insurance contributions and improve your State Pension. If you are married or co-parenting, it is best to agree on who will make the claim. This ensures the child gets a National Insurance number and is automatically added to your partner’s State Pension when they reach 16. You can find out more in our guide on how to claim Child Benefit.