Definition of Social Security

Definition of Social Security

From the Latin praevisio , foresight is the action and effect of foreseeing (see in advance, conjecture what will happen through the interpretation of signs or signs, or prepare means for future contingencies).

Social , from the Latin socialis , is that which belongs or is relative to society (the set of individuals that share a culture and interact with each other, forming a community).

It is known as social welfare , therefore, to actions that seek to meet the needs of the members of a society. The objective of social welfare is to improve the social, economic and human conditions in general of the population.

Social welfare is responsible for providing protection to those who are unable to obtain an income , either temporarily or permanently. These social services, therefore, contribute to the coverage of the main social problems, such as poverty, health , unemployment, disability or old age.

It can be considered that social security is a protection that society itself provides its members, since these public measures are financed with the contributions of all citizens through the payment of taxes and taxes. It is a solidary mechanism , where the economically active population helps to support those who can not work.

Social security is channeled through various institutions , according to each country. The National Institute of Social Security of Spain , the Mexican Institute of Social Security and the Social Security Institute of Paraguay are some examples of this type of organisms.

In Latin America, the Social Security Bank(abbreviated as BPS ) stands out, the social security institution of Uruguay, which is responsible, among other things, for the coordination of the services of the social welfare state. Its importance lies in that it represents one of the first examples of social security systems in Latin America; On the other hand, it is worth mentioning that achieving this was not easy, since it took several decades of similar initiatives until 1967 when its Constitution recognized it as a way to unify the three retirement funds with higher numbers of partners: the Rural, Civil and Industry and Commerce.

Spain has what is known as Corporate Social Welfare Plans (PPSE), a product that gives companies the possibility of offering their workers a remuneration very similar to that of a traditional Pension Plan; the latter must be managed by a Management Entity, while PPSEs are marketed by an Insurance Company.

A Corporate Social Welfare Plan is, in other words, a collective version of the insurance policies , which is administered similarly to a Pension Plan, from a fiscal point of view. This concept began to be implemented at the end of 2006, and through Law 35 of the Personal Income Tax.

It is called mutual provident society to one that is in charge to cover issues related to the workplace and workers, such as unemployment, retirement and the invalidity or death by accident. It is a non-profit organization formed in solidarity, which has complementary objectives to those of social security.

One of the characteristics of mutual benefit societies is that they convert individual risk into a collective one, so that they constitute technical insurance reserves. With regard to the service offered, it is called mutual activity (as cooperatives provide a cooperative activity ) and is called mutualists to the people who comprise it.