Social Security and Social Insurance in Greece (Coursework Sample)

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Social Security and Social Insurance in Greece Research
1.Social Security Expenditures: A historic viewpoint.
Throughout the 1980s, the social security expenditure in Greece dates back to the historic times. The welfare system in Greece has integrated vital legislative laws and acts. After the democracy reestablishment in the year 1974, objectives related social security issues have a new definition, and new policies are present with the aim of expanding social security insurance coverage. This coverage has tried to balance resource reallocations and region inequalities in relation to low income and lower classes. The main objective of the balance is clear in the Greece legislative acts. From the year 2009, Greece was submerged into a financial countrywide crisis, which was unprecedented in the countries past. During this period, Greece has applied structural change policies of hurtful social expenditures and raising taxes. The adjustment is with a dramatic attempt to reform of Greece's economic system in the image of neoliberals with deregulation and liberalization ethods. Additionally, Greece has boarded on a huge denationalization plan of many state-run firms  
. In May 2010, Greece was given a bailout worth 110 billion euros in loans from the European Union (EU) and IMF or International Monetary Fund. With first bailout has made Greece from evasion on its debts; but it became quite obvious in the past time that Greece will require additional financial help to continue repairing its loan-payments. Recently, on July21, 2011, the EU and IMF assured that Greece would be getting an additional bailout worth 109 billion euros (Council of the European Union 2011). The details of this plan are still being worked out.  The graph below is a representation of the historical perspective on social security expenditures. (Chambers, 1963)
Figure 1: A historic perspective of social security expenditures
2. Social Security Payment system (Pay-as-comfort or Complete funded or a mixture), describe.
The social security payment system also known as pay as you go, or mixture or fully funded system is on several Greece laws which include the First law enacted in the year 1934.It also includes the most current legislation enacted in the year 1951. These amendments on social securities were effective in the 1960's and 1970's.The regulations and legislation enacted in the year 1985 is on old ages pension systems, which are the non contributory pension service. In the year1988, pension payment system for uninsured persons was enacted. The security payment systems' has basis on the contributor's occupations and equivalent funding. The security system payments have a clause that allows exceptions. These exceptions are possible but are also subject to terms and conditions. The most common sectors in the system include; shipping sector, public sector, self-employed sector craftsmen and agriculturists amongst many others. The sources of funds for the social security payments are monthly deductions. Insured people attracts 6.667% from monthly total earnings, and 8.87% form other forms of employment. It is interesting to note that for calculation of benefits purpose, minimum earning is free of charge. Additionally, people with high earnings give the largest contributions. Greece contributes 10% from employer's payroll annually. This percentage guarantees the annual subsidies. Pay as you go cash is the tax deducted by an employer or withheld by an employer from the employees or staff salary or wages. (Juster, 1995)
3. Data for Dependency Ratio (demographic data): Alterations over time. Show the data on a graph Name: Dependency Ratio
Greece has multiple demographic data problems in the recent days. According to information Collected from the National Department of statistics in the year 1997, Greece has the greatest elderly in the entire European community. In the year 2006, it was registered that16% of men, and 20% of women ages ranged between 55 to 65 years. The research carried out on the same also showed that there was a very low child birth rate in Greece. The number of births registered per year was very low. The research findings show that every woman's bearing age in Europe is 1.3.These are some of the reasons why Greece faces acute problems when dealing with social securities. The report recommends an increase in childbearing to increase the productive age ratio in the country. (Gustman, 2000)
Figure 3. Showing Ratio of dependencies.
4. Data for Earning Circulation among the Elderly Populations (the beneficiaries').
The aged population dates back to the lifespan of humans and the challenging and complex distribution and social security benefits to loved ones. It is interesting to note that most people have preconceptions about becoming or growing older. The picture portrayed by old age is frail, dark and needy. However, this should not be the case. It is evident that the whole world has had challenges in dealing with social securities in relation to the elderly. Additionally, most if not all elderly people require medicine, proper sanitation and other needs. The aging population in Greece has increased drastically in the recent years. Additionally lower birth rates have been reported. Lower birth rate has created a social security phenomenon that has affected many other countries as well. According to the data reported in the recent times majority of the social security ration in Greece, Older person dominates the top charts. The Greece Government faces with the challenge of paying social securities with limited social security taxes.
5. Describe the Structure of Social Security Tax: Employees and Employers contributions. Require also historical data for this. (David, 1998)
Social security taxes are mostly imposed or charged on employees or employers, and exists as salary percentages from the staff pay from the employers. The security taxes are into employee wages deductions and employer paid taxes. Both categories are related to the staff wages. The initial or first category is where the employer withholds tax from the employer's salary or wages. It acts as tax is withdrawing or PAYE or PAYG. These types of taxes cover all advance tax income payments, contributions from social securities, and other many types of insurances such as disability and unemployment. The next type of tax is tax security paid from funds from the employer. These funds are non deductible from the staff or employee. However, the deductions are related directly to the staff and workers. Such taxes attract fixed tax charges and are linked proportionally to staff or employee's salary or wages. The tax charges by employers are used to cover employer's social security funding system, and other multiple programs.
6. Collect Data for the Construction of Social Security Advantages – GRR and display the re-distributional side of it
The social security benefits structure or pension structure varied in accordance to the date when the deceased entered the security system first. A surviving partner or spouse, irrespective of their title or age, are entitled to get survivor security pensions for 3 years starting from the time or month after the death of the insured. Surviving partners or spouse rare granted the pension which payable to their deceased spouse was provided they do not or receive other forms or types of pension. On the other hand, spouses who survive can receive 30% pension if the marriage lasted for 15 or more years, 40% pension if the marriage lasted for 25 years or more. Similarly, divorced partners are not eligible for the divorced partners pension or grant. €416.85 is the minimum amount of security pensions per month. (Hardy, 2006)
The graph above shows the social security administrative calculator in relation to population of the workers. The data is structures from the redistribution aspects using author's calculators.
7. Retirement Age and Advantages - Present and historical.
The retirement age is between 55 and 60 years old. At the age of 65 in men and 65 in women are eligible to get pensions. However, they are only eligible if they are contributors for 4,500 days. Men with age 62 years old and women aged 57years old have to have been contributors for 10,000 days at least. 10,500 days for men aged 58. Full security pensions are paid at different ages to the insured people who have a contribution of 11,100 days in the least.
Historically and recently, men at the age of 60 and women at the age of 55 who have contributed for 4,500 days are eligible for a pension or security benefits. On the other hand women aged 55 (with 4,500 days contribution in the least and who are in unhealthy or arduous employment, with 1,000 days contribution in the past 13 years are eligible. All public employees who have contributed social security tax for the working days to the retirement are eligible for social security pensions. Additionally, any private worker who has continuously and faithfully contributed social security tax for the p...