Social Insurance

Social insurance is any government-sponsored program with the following four characteristics:
1. the benefits, eligibility requirements and other aspects of the program are defined by statute;
2. explicit provision is made to account for the income and expenses (often through a trust fund);
3. it is funded by taxes or premiums paid by (or on behalf of) participants (although additional sources of funding may be provided as well);
4. the program serves a defined population, and participation is either compulsory or the program is heavily enough subsidized that most eligible individuals choose to participate.

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