Sub-sector: Social security funds (S.1314)

2.74 Definition:

The sub-sector social security funds includes all central, state and local institutional units whose principal activity is to provide social benefits and which fulfil each of the following two criteria:

  1. by law or by regulation certain groups of the population are obliged to participate in the scheme or to pay contributions;
  2. general government is responsible for the management of the institution in respect of the settlement or approval of the contributions and benefits independently from its role as supervisory body or employer (see paragraph 4.89).

There is usually no direct link between the amount of the contribution paid by an individual and the risk to which that individual is exposed.