Portability (social security)
Encyclopedia
The portability of social security benefits is the ability of workers to preserve, maintain, and transfer acquired social security
rights and social security rights in the process of transferring from one private, occupational, or public social security scheme to another. Social security rights refer to rights stemming from pension schemes
(old age, survivor, disability
), unemployment insurance, health insurance
, workers' compensation, and sickness benefits.
Hence, if social security benefits are portable, contributors to, for example, old-age pension schemes do not experience any disadvantage such as the loss of contributions and benefits associated with these contributions when moving from one job to another, from one occupation to another, or from the public
to the private sector
.
International portability of social security rights allows international migrants
, who have contributed to a social security scheme for some time in a particular country, to maintain acquired benefits or benefits in the process of being acquired when moving to another country. International portability of social security benefits is therefore understood as the migrant's ability to preserve, maintain, and transfer acquired social security rights independent of nationality and country of residence.
International portability of social security benefits is achieved through bilateral
or multilateral
social security agreements between States. These agreements guarantee the totalization of periods of contribution to the social security systems of both states and the extraterritorial payment of benefits. Currently it is estimated that approximately 23 per cent of migrants worldwide are covered by bilateral social security agreements.
Social security
Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:...
rights and social security rights in the process of transferring from one private, occupational, or public social security scheme to another. Social security rights refer to rights stemming from pension schemes
Pension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
(old age, survivor, disability
Disability insurance
Disability Insurance, often called DI or disability income insurance, is a form of insurance that insures the beneficiary's earned income against the risk that a disability will make working uncomfortable , painful , or impossible...
), unemployment insurance, health insurance
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
, workers' compensation, and sickness benefits.
Hence, if social security benefits are portable, contributors to, for example, old-age pension schemes do not experience any disadvantage such as the loss of contributions and benefits associated with these contributions when moving from one job to another, from one occupation to another, or from the public
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
to the private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
.
International portability of social security rights allows international migrants
Migrant worker
The term migrant worker has different official meanings and connotations in different parts of the world. The United Nations' definition is broad, including any people working outside of their home country...
, who have contributed to a social security scheme for some time in a particular country, to maintain acquired benefits or benefits in the process of being acquired when moving to another country. International portability of social security benefits is therefore understood as the migrant's ability to preserve, maintain, and transfer acquired social security rights independent of nationality and country of residence.
International portability of social security benefits is achieved through bilateral
Bilateralism
Bilateralism consists of the political, economic, or cultural relations between two sovereign states. For example, free trade agreements signed by two states are examples of bilateral treaties. It is in contrast to unilateralism or multilateralism, which refers to the conduct of diplomacy by a...
or multilateral
Multilateralism
Multilateralism is a term in international relations that refers to multiple countries working in concert on a given issue.International organizations, such as the United Nations and the World Trade Organization are multilateral in nature...
social security agreements between States. These agreements guarantee the totalization of periods of contribution to the social security systems of both states and the extraterritorial payment of benefits. Currently it is estimated that approximately 23 per cent of migrants worldwide are covered by bilateral social security agreements.