Definition: Non-pension benefits

Category: SNA

Social benefits may be divided into two main classes: pensions and all other social benefits, described in the SNA as non-pension benefits.

Six kinds of circumstances illustrate when non-pension social benefits may be payable as follows:

a. The beneficiaries, or their dependants, require medical, dental or other treatments, or hospital, convalescent or long-term care, as a result of sickness, injuries, maternity needs, chronic invalidity, old age, etc. The social insurance benefits are usually provided in kind in the form of treatment or care provided free or at prices that are not economically significant, or by reimbursing expenditures made by households. Social insurance benefits in cash may also be payable to beneficiaries needing health care;

b. The beneficiaries have to support dependants of various kinds: spouses, children, elderly relatives, invalids, etc. The social insurance benefits are usually paid in cash in the form of regular dependants’ or family allowances; 

c. The beneficiaries suffer a reduction in income as a result of not being able to work full-time. The social insurance benefits are usually paid regularly in cash for the duration of the condition. In some instances a lump sum may be provided additionally or instead of the regular payment. People may be prevented from working for various different reasons, including involuntary unemployment, including temporary layoffs and short-time working, and sickness, accidental injury, the birth of a child, etc. that prevents a person from working, or from working full-time;

d. The beneficiaries suffer a reduction in income because of the death of the main income earner. The social insurance benefits are usually paid in cash in the form of regular allowances or, in some instances, a lump sum;

e. The beneficiaries are provided with housing either free or at prices that are not economically significant or by reimbursing expenditure made by households;

f. The beneficiaries are provided with allowances to cover education expenses incurred on behalf of themselves or their dependants; education services may occasionally be provided in kind (§ 8.68). http://ec.europa.eu/eurostat/ramon/statmanuals/files/SNA2008.pdf