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President Still Considering Disability Cuts As Part Of Plan To Privatize Social Security

State Legislators Offer Formula For Improving No Child Left Behind Act

Veterans With Low Incomes Who Are Permanently And Totally Disabled Or Are Age 65

Gov. Dean Talks About Retirement Security And The GOP\'s Failure To Address The Problem

   
 
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  Problems In Sickness And Incapacity Benefits

 
There are measures take to help those employee on sick and incapacity benefit to get back to work. Some of many pension companies are committed to ensuring that employee on sickness and incapacity benefits get support to return to work. The new deal for disabled employee has already helped more than 25,000 placements of employee into work. Pension Companies recognize that they need to do more. That is why they are piloting the measures in "pathways to work", giving employee on incapacity benefits early and continuing support from specialist advisers, access to a range of condition management programmes, and improved financial incentives for returning to work.

But in some research, shows that more than two million employee are not eligible for the state pension and unemployment, sickness and incapacity benefits because they do not make National Insurance Contributions (NICs). Many employee pay contributions erratically, for such reasons as that they work seasonally with periods of unemployment, such as in the hotel and catering trades. The money they pay on NICs is effectively "lost" because entitlement is based on qualifying years rather than on lifetime contributions. Older women were the biggest losers as they had more frequent periods out of employment and made irregular contributions. This means that they were often not entitled to pensions or unemployment benefit in their own right and had to rely on their husband’s pension or Income Support benefit. With divorce rates increasing, even more low-paid women are likely to have no pension provision when they retire. The Equal Opportunities Commission is calling for an overhaul of the NICs system.

In some article, the experience of UK and Netherlands also highlights the dangers of leaving particular policy complementarities unexploited. In both countries the tightening of the unemployment benefit system was not matched by a correspondingly fundamental reform of the sickness and incapacity benefit systems. Consequently budgetary pressures have shifted from unemployment benefits to sickness and incapacity benefits. Since the latter have a longer duration than unemployment benefits, the shift created more serious conditions of dependency from publicly provided income support than unemployment insurance. Thus in the Netherlands, which has one of the most generous disability benefits systems among the OECD countries, the percentage of persons directly involved in social benefits reaches 17%.

Nevertheless, with levels of employment gradually increasing, the problem is little by little rising up the political agenda. The Department of Work and Pension (DWP) has launched ‘Pathways to Work’ pilots in seven Jobcentre Plus districts to try to help people on incapacity benefits get back to work. Personal advisers can tailor support to the individual; to try to give people who can get back to work the support to do so.
   
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