Definition: Private schemes

Category: ESSPROS Manual

Private schemes are all social protection schemes which are not controlled by government in its role of public authority. 

The following types of schemes are usually private:

- schemes run by non-profit institutions (mutual benefit societies, friendly societies, institutions co-administered by the social partners and so on);
- schemes administered by commercial insurance companies;
- non-autonomous schemes run by employers maintaining separate reserves in their balance sheets to cover their liability to pay benefits in the future (book reserves). Included here are funded schemes which government may have set up in its role of employer;
- non-autonomous schemes run by employers without maintaining segregated funds, including unfunded schemes which government may have set up in its role of employer.

In the national accounts, the first three types of schemes are referred to as private funded schemes; the latter is called unfunded employers' schemes. The last two types taken together make up the category non-autonomous employers' schemes. http://ec.europa.eu/eurostat/ramon/statmanuals/files/ESSPROS_manual_1996_EN.pdf#page=23