Actuaries define social insurance as a government-sponsored insurance program that is defined by statute, serves a defined population, and is funded through premiums or taxes paid by or on behalf of participants. Participation is either compulsory or the program is subsidized heavily enough that most eligible individuals choose to participate.
In the U.S., programs that meet this definition include Social Security, Medicare, the PBGC program, the railroad retirement program and state-sponsored unemployment insurance programs.
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