1. SOCIAL SECURITY COVERAGE AND BENEFITS
CHAPTER
THREE 3

2. Social Security Coverage & Benefits
Objectives of the lecture:
After completing this lecture, the students should be able to:
Describe the aims and ideals
Describe the coverage – diversity and inequality
Identifying the qualifying conditions
Determining level and scope of benefits
Understand the concept of indexation of benefits
Analyze trends and issues
Social Security Coverage & Benefits

3. 3.1 : AIMS AND IDEALS OF SOCIAL SECURITY (SOCIAL INSURANCE)
To give individuals and families the confidence that their level of living and quality of life will not, in so far possible, be greatly eroded by any social or economic eventuality.
preventing risks from arising in the first place, and helping individuals and families to make the best possible adjustment when faced with disabilities and disadvantages which have not been or could not be prevented
It provides a floor of protection for all participants against financial losses caused by premature death, poor health, disability or old age
Provide significant source of funds to finance economic development.
Social Security Coverage & Benefits

4. 3.2 : COVERAGE – DIVERSITY AND INEQUALITY
The general principle of social security coverage is it should extend protection to the whole community
It may cover all persons, all workers, except those in certain occupations, only workers with a minimum period of services, or some other group (requires qualifying conditions).
However, how a person is eligible for the benefits of the social security program is basically determined by certain requirements.
Issues in coverage :
Identification
Concentration on the employed sector
Higher paid employees
Government workers
Social Security Coverage & Benefits

5. Social Security Coverage & Benefits
Cont…
Social security (public assistance) program covers all persons, but the benefits are paid only to those individual who can demonstrate need. The amount of benefits is paid based on the extent of demonstrated need.
Eg:
Child benefit (UK): Coverage must be child under age 16, 25 weeks residence in UK in last 52 weeks.
Widowed-mothers allowance (UK): for widows with at least one dependent child under age 19 for whom they get Child Benefit.
Malaysia – allowance for poor and old people
Social Security Coverage & Benefits

6. Social Security Coverage & Benefits
Cont…
Social security (insurance) program covers all persons but they must satisfy certain eligibility requirements.
Eg:
Provident fund: mandatory coverage for private sector employees, non-pensionable public sector employees and foreign workers. Voluntary coverage for domestic workers, self employed, and pensionable public sector employees.
Social Security Coverage & Benefits

7. 3.3 : QUALIFYING CONDITIONS
Certain conditions to be met before benefits can be awarded
3 aspects to be considered:
Proof of the contingency
Claimant is properly within the coverage
Various conditions are fulfilled
The qualifying conditions of social security whether in social Insurance or public assistance is depend on the types of schemes as well the individual who claims the benefit(s).
It may differ from one scheme to another or one country to the other country.
Social Security Coverage & Benefits

8. Social Security Coverage & Benefits
Cont…
Public assistance
Relate to the status of nationality, means test etc
Social insurance
Based from the record of contribution
i.e Old age benefits
- He / she must be a contributor (EPF)
- Age 55/56/58
Service Pension Scheme
- When public employees reach retirement age of 55/56 or optional ie 50 for male and 45 for female
- Or medically certified an unfit to work due to accident or disease
Social Security Coverage & Benefits

9. Social Security Coverage & Benefits
Cont…
Eg : SOCSO
All qualified employees under the acts should be registered and make a contributions with SOCSO regardless of their service status – permanent, temporary, part-time, probation etc
However there are some group of profession which are unqualified / not covered under the SOCSO:
public servant
domestic servant
self-employment
foreign workers
Social Security Coverage & Benefits

10. 3.4 : LEVEL AND SCOPE OF BENEFITS
Different level of benefits form between states and countries
Based from the socio-economic conditions
There are different scope or level of benefits under different schemes.
Identified under respective schemes
Guidelines from ILO, Legal provision
Based on proportion of wages
Based on the cost of subsistence
Social Security Coverage & Benefits

11. Cont… EPF Death withdrawal scheme. Withdrawal of the funds
retirement age 55/56/58 (Acc I)
housing , education (Acc II)
withdrawal at age of 50 (Acc II)
for health and medical purpose (Acc II)

12. Social Security Coverage & Benefits
Cont…
SOCSO :
Benefits related to the accident due to injuries sustained at work and invalidity from whatever cause.
Medical benefit (S 37)
Dependents benefits (S 22)
Disablement benefits (S 26)
Invalidity Pension (S 20)
Survivor Pension (S 20A)
Funeral Benefit (S 29)
# However, the level and scope of benefits is still depend on the qualifying conditions.
Social Security Coverage & Benefits

13. Social Security Coverage & Benefits
3.5 : TRENDS AND ISSUES
How much social security can a country afford when balancing the vsrous social & economic considerations involved?
Limited coverage under SOCSO
The awareness and cooperation of the employer
Role of NGO, eg: MTUC submit a proposal to increase the rate of EPF contribution and SOCSO’s benefits.
Maintenance of the value of benefits
Social Security Coverage & Benefits

14. Social Security Coverage & Benefits
TUTORIAL
Explain any social security benefits in Malaysia.
Analyze any social security issues in Malaysia.
Distinguish the different coverage, qualifying conditions and level of benefits practiced by our country and other country
Social Security Coverage & Benefits