REWARD
Social security systems around the world
Social security systems are a given around the globe. Tim Kelsey FCIPPAIPA , global payroll consultant at Kelsey’s Payroll Services looks at the many ways these systems impact payroll operations
T his is a subject to start with a born, shouldn’t be a member of the social security system. When he begins to grow up, he should know he will have old-age benefits direct from the insurance system to which he will belong all his life. If he is out of work, he gets a benefit. If he is sick, or crippled, he gets a benefit … From the cradle to the grave, they ought to be in a social insurance system.” These words were spoken by American President, Franklin Delano Roosevelt, in the 1930s as he strove to introduce the concept of social security to the USA. The quote neatly summarises what the purpose of social security coverage is. We will look at how this coverage is achieved motivational quote: “I see no reason why every child from the day he is worldwide, and what role we, as payroll professionals, play in its successful delivery. Different insurances for different life event risks As great as Roosevelt’s quote was, the modern concept of social security was invented by the Germans 60 years earlier. The German model has been widely copied over the decades, and now forms the basis of social security systems around the globe. The principle is based on the concept of having different pots of money to cover different life event risks. Thus, the German system has the following insurances: ● pension insurance – to provide a pension ● unemployment insurance – to provide out of work benefits ● health insurance – to provide access to medical services ● long-term nursing care insurance – to provide supported living for the frail and the elderly
| Professional in Payroll, Pensions and Reward | July - August 2022 | Issue 82 38
Made with FlippingBook - Online magazine maker