private income maintenance expenditures

Payments made in the private, nongovernmental sector to individuals and families. Financed by workers, their employers, insurance, and savings, these cash payments are made directly to those covered and to their dependents and survivors to cover some of the risks of illness, disability, retirement, and death. Examples of private income support are group life insurance, accidental death and disability insurance, paid sick leave, supplemental unemployment benefits, sickness insurance, retirement savings accounts (for example, individual retirement plans [IRAs], Keogh Plans) and employee pension plan benefits. Employee plans include defined benefit plans, defined contribution plans (for example, 401(k) plans), and employee stock ownership plans. Although such payments comprise a huge outlay, they are only about one- fourth of all income maintenance expenditures. The public sector that includes such large programs as social security, public employee retirement, unemployment insurance, and veterans programs pays three-quarters of all U.S. maintenance.