The term 'non-contributory' refers to a situation, program, or system in which individuals or parties do not contribute financially or otherwise to a fund, scheme, or service, but may still receive benefits or support from it. This can apply to various contexts, such as insurance or social welfare systems.
Non-contributory meaning with examples
- The non-contributory pension scheme allows employees to receive benefits without having to pay into the system during their working years, making it particularly appealing for workers who may not have the means to save for retirement.
- In the realm of healthcare, a non-contributory model can simplify access to services, as citizens may receive medical coverage without having to pay insurance premiums or contribute directly to a health fund.
- Many non-contributory educational programs offer scholarships and resources to students who might not otherwise afford higher education, allowing for broader access and improved equality in academic opportunities.
- The government launched a non-contributory social support initiative aimed at assisting low-income families, ensuring they receive essential resources like food and housing without demanding prior contributions.
- While some retirement plans are contributory, others, including non-contributory options, provide individuals with guaranteed income in their later years without requiring them to invest personally in the plan during their employment.