A contributory program is defined as:

A contributory program is defined as:

• A. Social programs financed in whole or in part by taxation or other mandatory contribution by their present or future recipients.
• B. Social programs financed by voluntary contributions
• C. A private retirement plan
• D. A noncontributory program

Answer: (A)

Contributory programs are funded through mandatory contributions from workers (and often their employers), typically via payroll taxes, and these payments come from present or future beneficiaries. That is why the description matches: social programs financed in whole or in part by taxation or other mandatory contributions by their present or future recipients. The idea is that participation and funding are not voluntary and are tied to the expectation of benefits in the future or for the current generation of workers. By contrast, programs funded by general revenues without mandatory contributions are noncontributory, voluntary contributions aren’t the defining feature, and private retirement plans sit outside this public contributory framework. Social Security and Medicare are classic examples of contributory programs because their benefits come from mandatory payroll taxes.

Contributory programs are funded through mandatory contributions from workers (and often their employers), typically via payroll taxes, and these payments come from present or future beneficiaries. That is why the description matches: social programs financed in whole or in part by taxation or other mandatory contributions by their present or future recipients. The idea is that participation and funding are not voluntary and are tied to the expectation of benefits in the future or for the current generation of workers. By contrast, programs funded by general revenues without mandatory contributions are noncontributory, voluntary contributions aren’t the defining feature, and private retirement plans sit outside this public contributory framework. Social Security and Medicare are classic examples of contributory programs because their benefits come from mandatory payroll taxes.