Table 53. Medical care benefits: Pretax status of employee
contributions, full-time employees, medium and large private

establishments, 1993

Profes-
sional, Blue-
techni- Clerical collar
All and
em- | i, sates | 27d
Method of payment loy- and ‘em- service
vee related ploy- | °TM
em- | ‘ees | Ploy
ploy- ees
ees
Number (in thousands) with
medical care ... -| 23,519] 6,529] 5,819] 11,172
Percent
Total with medical care 100 100 100
Pretax contribution 32 4 37 25
No pretax contribution 45 4 45 47
Data not available 22 16 18 28

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

52



supplements are usually found in plans where partici-
pants can retiree before age 62 and generally last until
tetirees are eligible for Social Security benefits.

Early retirement

Virtually all of the employees participating in de-

fined benefit pension plans can retire before normal
retirement age and receive an immediate, but reduced,
pension (tables 149-150). Early retirement is almost
always solely at the employee's option; few plans
require employer approval for early retirement benefits.
The amount of an early retirement pension is reduced
because benefits begin at an earlier age, and the retiree
is expected to receive plan payments over a longer
period. i .
Early retirement benefits are generally computed
based on the normal retirenient formula. The benefit is
then reduced by a percentage (factor) for each year
between the actual and normal retirement ages. If a
plan's normal retirement age is 62, for example, and the
reduction factor is 6 percent, a person retiring at age 59
would receive 82 percent of the normal formula amount
(that is, the person loses 6 percent for every year under
the normal age). In addition to the 18-percent reduction
for early retirement, the annuity in this example would
be based on fewer years of service and possibly lower
earnings than at age 62.

The reduction factor may be uniform or may vary
by age or service. For example, reduction factors may
differ for each year of early retirement, based on the
employee's life expectancy at that age. (actuarial
reductions), or the reduction factor may differ for age
brackets of several years instead of changing each year.
Many participants with early retirement opportunities
have uniform reduction factors, for example, 4 or 6
percent, for each year of early retirement. In plans with
a lower uniform reduction, such as 3 percent per year,
the employer subsidizes some of the early retirement
benefit by making the reduction less severe than if
benefits are computed actuarially.

Most employees are covered by plans permitting
early retirement at age 55; generally, 10 years of serv-
ice are required. However, some participants can retire
earlier than age 55, commonly at any age after 30 years
of service.

A small number of pension plans provide additional
monthly payments to supplement the early retirement
pension if employees retire after meeting a specified
age or length-of-service requirement generally higher
than the minimum needed to retire. Plan sponsors in-
clude these supplementary benefits either to induce
older workers to retire or as a reward for long service.
Supplements generally last until Social Security bene-
fits are payable.

16

Disability retirement

A career-ending disability may entitle an employee
to a pension before retirement age. If the disability
satisfies the plan's definition of total disability, pension
benefits often begin immediately. When an employer
provides other sources of disability income, such as
long-term disability insurance, the plan might defer
disability retirement benefits until the other forms of
income have ceased. Most pension plan participants are
covered by some type of disability retirement provision
(tables 151-152). .

Most blue-collar workers with disability retirement
coverage are in plans with immediate benefits. In con-
trast, many white-collar workers are in plans that defer
benefits. Workers with deferred benefits often receive
long-term disability insurance (LTD) benefits that
typically provide 50 or 60 percent of earnings at the
time. of disability; this frequently exceeds the amount
that pension plans with immediate disability retirement
provide. Furthermore, most deferred retirement benefits
are greater than immediate pensions, primarily because
the time during which LTD benefits are paid is
typically added to an employee's length of service for
computation of pension benefits. (See chapter 3 for
details of LTD benefit plans.)

Eligibility for disability retirement benefits usually
depends on Iength of service; often 10 years or more
are required. Some participants, however, have no age
or service requirement or have to meet the
qualifications of their LTD plans, which usually
imposes service requirements of 6 months or less.

Vesting

Even when an employee leaves an employer before
becoming eligible for either a normal, early, or
disability retirement benefit, a plan may ultimately pay
a pension (tables 153-154). If certain conditions are
satisfied at the time of separation, workers have a
vested interest in all or a portion of their accried
pension benefits and may begin receiving benefits years
later.

Although all pension participants are entitled to
vested benefits under ERISA, some variations exist as
to when vesting occurs. As a result of the Tax Reform
Act of 1986, however, most plan sponsors have short-
ened their vesting schedules in the past few years.”
For example, a large majority of the participants in de-
fined benefit pension plans have to complete 5 years of
service at any age before benefits are guaranteed (cliff
vesting). Most of the remaining participants are in plans
requiring 10 years of service. Participants not in plans
with cliff vesting generally are covered by a graduated

29 Multiemployer plans may continue to use 10-year vesting
schedules pursuant to a collectively bargained agreement.


Table 14. Paid vacations:
service, medium and large

Percent of full-time employees by amount of paid vacation days provided for selected periods of
Private establishments, 1993

Protet | Clerical | Blue-col Protas | Cterical | Btue-col-
i Allem- |technical,| 2nd} lar and Allem- |technical,, 2nd | lar and
Vacation policy ployees land retat,| Sales. | service Vacation policy Toyees land relat,| Sales | service
employ- | employ- Le employ- | employ- ”
ed em ees ees ed om ees: ees:
- ployees ployees
Total with paid vacations’ 100 100 100 | 100 After 5 years of
Vacation days by minimum 0 0) @ ie}
length-o-service require- 2 i) 1 3
ment?
1 0 a 1
39 21 34 51
6. eo 1
7 25 50 6 9 6 5
40 46 47 33
1 1 2
63 62 39 2 3 3 2
4 10 3 2
4 3 1
8 2 3 2 4 2 1
1 2 19) i)
3 2 1
5 1 ie) 1 3 1 Qe
ie) 1 (a) (9)
4 2 1 1 3 2 1
1 1
After 10 years of service:
1 1 ® Under 5 days ... ea a) ia)
is) e ® S$ days 1 e) 2
1 io) e Over 5
days is) - 0. o
10 days, 7 3 5 10
i) i) 1 Over 10 and under 15
4 2 8 days 2 1 1 4
56 46 60 60
1 1 4
62 79 73 5 4 5
: 30 22 15
6 4 5
2 6 6 4 3 1
2 1 i)
4 2 1
6 2 1 3 1 1
1 ® 0
3 1 1 5 2 1
1 10) a
2 1 Oo
1 a 9) iy) i) 0.
1 1 (o) a 1 2
- 0 i)
See footnotes at end of table.
7
18



H
z
¥
:
é

Table 180. Savings and thrift plans: Methods of distribution,
full-time employees, medium and large private establishments,
1993

Table 181. Savings and thrift plans: Eligibility requirements,
full-time employees, medium and large private establishments,
1993

Profes- Profes-
sional, | ericai| Blue sional, | clerica| BlUe-
techni- “FA! conar techni: |“t@4! colar
Al Vea, | 2nd. | and At Veal, | 8 | and
Methods of distribution’ and service Eligibifity requirementst and | S25 | sewice
PIV |related| Sm" | om- PY Jrelated| S| em-
em- ‘ees ploy- em- ‘ees ploy-
ploy- ees ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with
savings and thrift plans ...... 8284] 2,933] 2,470] 2,880 savings and thrift plans ...... 8,284} 2,933] 2,470| 2,880
Percent Percent
Total with savings and thrift Total with savings and thrift
plans .. 100 | 100 | 100 | 100 plans 100 | 100 | 100 | 100
98 | 98 With minimum age and/or
28 | 32 service requirement .. at | 74 | a8 | 82
45 | 53 Service requirement only..| 55 | 53 | 56 | 55
(?) 2 ths 6 6 4 8
7) | @) a | to 8 6
ss | 35 | 42 | 37
1 1 1 2
1 Sums of individual items may exceed totals because plans frequently 1 1 1 1
permit more than one distribution option. 8 5 10 "1
Less than 0.5 percent. 4 1 1 3
NOTE: Where applicable, dash indicates no employees inthis category. 1-11 months 2; 2) 2) 8
tat 16 | 22 | 16
1 1] (7) | ()
2 2} 3] 38
4] 2] 19 | 1
2 2 2 2)
() | Gy} @) | @)
1 7a, ee, e@)] @
No minimum age or service
requirement | 2] 1] t6
Not determinable 2 2 1 3
Average’
Average service requirement
(in months) 108 | 104 | 11.1 | 109

147

1 ita plan had alternate eligibility requirements, one of which was service
enly, the service only requirement was tabulated.
Less than 0.5 percent.
3 ‘The average is presented for all covered workers; averages exclude
workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totais.
Where applicable, dash indicates no employees in this category.



Table 169. Savings and thrift plans: Types of investments allowed In plans permitting employees to choose
investments, full-time employees, medium and large private establishments, 1993

Professional,
All employees technical, and
related employees

Employee] Employer | Employee] Employer | Employee] Employer | Employee} Employer
contribu- | contribu- } contribu- | contribu- | contribu- | contribu- | contribu- | contribu-
tions tions tions tions tions tions tions tions

Clerical and sales Blue-collar and
employees service employees

Number (in thousands) with
savings and thrift plans
with employee investment
CHOICE -...00r00000 |

Total with savings and thrift
iq plans with employee
! investment choice 100 100 100 100 100 100 100 100
1 48 38 50 37 50 39 45 38
79 84 80 84 80 84 78 83
48 47 51 50 47 46 45 46
48 55 st 59 50 55 “4 53
26 25 29 25 25 25 24 24
49 48 46 44 50 50 50 51
30 33 32 39 2g |- 30 30 29
1 1 1 1 2 2 () C)
7 10 7 2 8 13 4 6 i
3 4 4 6 2 3 3 4 |
1 Less than 0.5 percent. NOTE: Sums of individual items do not equal totals because
2 Includes purchase of Iife insurance, annuities, real estate, employees are often offered a number of investment choices.
mortgage, and deposits in credit unions or savings accounts. ‘Where applicable, dash indicates no employees in this category.

142


Employee Benefits in
Medium and Large Private

Establishments, 1993

U.S. Department of Labor
Robert B. Reich, Secretary

Bureau of Labor Statistics
Katharine G. Abraham, Commissioner

November 1994
Bulletin 2456



Chapter 6. Defined Benefit
Plans

A defined benefit pension plan obligates an em-
ployer to provide retirement benefits calculated by a
formula specified in the plan. Benefits generally are
based on salary, years of service, or both. An em-
ployer, however, ordinarily has considerable latitude in
financing these benefits. Most full-time employees in
medium and large private establishments participate in
defined benefit pension plans. However, in recent years
defined contribution plans, such as 401(k) plans, have
become increasingly prevalent. Defined contribution
plans, which specify employer and—if applica-
ble—employee contributions, but do not guarantee a
specific benefit, are discussed in the next chapter.

The Employee Benefits Survey includes a variety of
defined benefit pension plans provisions (table 136),
such as:

e Formulas for calculating benefits;

How benefits are coordinated with Social Security
payments;

Ceilings on benefit payments;

Survivor annuities;

Age and service requirements for retirement;
Availability of supplements to normal and early
retirement pension benefits;

Disability retirement benefits;

Vesting schedules;

Postretirement pension increases;

Employee contributions; and

Plan participation requirements.

To summarize the overall effect of many of these provi-
sions, pension benefits and replacement rates (the pro-
portion of preretirement income replaced by pension
payments) are computed for workers with several as-
sumed levels of earnings and years of service. Each of
these topics is discussed in the following sections of
this chapter.

Benefit formulas

Earnings-based formulas are the most prevalent
method used to determine retirement payments for em-
ployees covered by defined benefit pension plans
(tables 137-141). Such formulas pay a flat percent of
the employee's annual earnings per year of service (for

112

example, 1.5 percent of earnings times 30 years of
service, or 45 percent of annual earnings), or a percent
that varies by service, earnings, or age.

Approaches to calculating annual earnings and the
rate paid per year of service vary. For most participants
with earnings-based formulas, pensions are based on
earnings in the final years of employment (terminal-
earnings formula), for the remainder, an average of
career earnings is used (career-earnings formula).

Terminal earnings often are defined as the average
over a S-year period. Such formulas usually designate
the 5 consecutive years with the highest earnings out of
the last 10 years before retirement.

Participants in plans with terminal-earnings formu-
las frequently have benefit formulas that vary according
to service, earnings,.or a combination of the two
factors. As an example of variation by earnings, a
terminal-earnings formula might credit an employee
with 1 percent of earnings up to the first $12,000 in
each year of service plus 1.5 percent of the earnings
exceeding that amount. If earnings were $40,000 and
service was 30 years, the annual pension payment
would be computed as follows:

1 percent times $12,000
15 percent times $28,000.
Total credits per year of service

Credits ($540) times 30, years

16,200

Similarly, formulas based on career earnings typically
provide participants with percentages that varied, usu-
ally by earnings.

The earnings used to compute pension benefits for
earnings-based formulas commonly include only
"basic" earnings, that is, straight-time earnings. When
additional earnings are part of the benefit calculation,
such earnings may include overtime pay, shift differen-
tials, bonuses, and commissions.

Most plans that do not use a percent-of-earnings
benefit formula specify a dollar amount to be paid for
each year of service; for example, a plan might pay $20
monthly for each of an employee's 30 years of service,
thus yielding a pension of $600 a month. Although the



Table 64. Non-health maintenance organizations: Amount of individual deductible,’ full-time employees, medium and large

private establishments, 1993
Professional, technical, Clerical and sales Blue-collar and service
All employees and related employees employees employees
Fi Pre- Pre- Pre- Pre-
« Deductible? All | Fee- | ferred | Alt Fee- | ferred | All Fee- | ferred | All Fee- | ferred
t non- for- pro- | non- | for- pro- | non- for- pro- | non- for- pro-
a HMO |service| vider | HMO |service} vider | HMO {service} vider | HMO |service| vider
& plans | plans | ogani-} plans | plans | ogani-j plans | plans | ogani- | plans | plans | ogani-
& zations zations zations zations
Number {in thousands) -
non-HMO plans 18,179] 11,802} 6,077] 4,709] 2,709] 1,895} 4,268] 2,450] 1,762} 9,202} 6,644} 2,420
Percent
Total in non-HMO plans ... 100 100 100 100 100 100 100 100 100 100 100 100
Deductible specified ..... -| 87 95 74 85 94 74 87 97 76 89 95 74
Deductible on an annual
basis? 87 94 74 84 92 73 87 96 76 89 94 74
Based on eamings* 6 7 2 8 ab) 4 6 9 2 4 5 1
Flat dollar amount 81 87 72 76 81 69 81 88 73 85 89 73
@) |) - @) 1 - - - - @) | @) -
2 2 2 1 1 1 1 2 1 4 3 5
1 1 2 2] (8) 3 1 1 1 1 1 2
22 24 18 16 7 15 19 19 19 26 29 19
P ) 7) 7) |) 1] () | ©) 17) 7] @) 1 Gy} OO)
4 10 12 g 12 14 9 10 ah 8 10 11 8
(®) (8) 1 1 1 1 1 1 14 (8) | (8) 1
19 22 16 7 7 7 19 23 4 at 23 15
@) 7G) 7G) G7 @) - @) ry) 7) 7 Cy] 8)
12 iW 13 12 12 14 at) 14 16 10 9 on
@) 7] @) 7 8) 1 1 17) | GTO) | Od) OD -
5 6 5 3 4 2 5 5 5 7 7 7
8 8 7 10 12 7 10 10 9 5 5 5
(8) 1] (8) 1 2.) (8) | ©) 1] (8) | (8) | (8) | 8)
12 4 26 14 5 26 12 3 24 W 5 26
() 1] - 1 2} -]@)]@) 4 - | M]_ ee] -
Average®
Average annua! deductible .......] $218 | $220 | $216 | $238 | $251 | $221 | $231 | $231 | $235 | $203 | $204 | $198

1 ‘The deductible Is the amount of covered expenses that an individual responsible for satisfying a new deductible requirement each pian year.
must pay before any charges are pald by the medical care plan. 4 These plans have deductibles that vary by the amount of the
Deduetibles that apply separately to a spectfic category of expense, suchas _— participant's earnings. A typical provision is 1 percent of annual eamings
a deductible for each hospital admission, were excluded from this with a maximum deductibis of $150.
tabulation, © Less than 0.5 percent.

2 ‘Amount of deductible described Is for each insured person. However, 8 The average is prasented for all covered workers; averages exclude
many plans contain a maximum family deductible. In some plans, tie workers without the plan provision.
individual and the family deductibles are identical. If the deductible applied
only to dependents’ coverage, it was not tabulated. NOTE: Because of rounding, sums of individual items may not equal totals.

Deduetibles are calculated on an annual basis, with the enrollee © Where applicable, dash indicates no employees In this category.

61



Table 172. Savings and thrift plans: Withdrawal availability,
full-time employees, medium and large private establishments,
1993

Table 173. Savings and thrift plans: Withdrawa! requirements
in plans permitting withdrawals, full-time employees, medium
and large private establishments, 1993

Profes- Profes-
sional, 5 Biue- sional, a Biue-
an [tech 1292!) conar ‘ay |textni- | 282!) colar
ej em- | & | sales | and em | 4 | sales | 24
Withdrawal provision and | “em- | Service ltem Joy | aNd | om. | Service
PY |rolated| So" | em- Ov" Tretated| Sm” | em
am | | dy wm | BP | lr
ploy- ees ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with
savings and thrift plans .......| 8,284{ 2,933} 2,470] 2,880 savings and thrift plans
with withdrawals permitted | 3,880] 1,332] 1,253] 1,295
Percent
Percent
Total with savings and thrift
plans ... 100 | 100 | 100 | 100 Total with savings and thrift
plans with withdrawals
47 | 45 | st} 45 permitted .. 100 | 100 | 100 | 100
29} 31 | 32] 26
wl] 15] 19] 19 At any time ..... | 36 | 36 | 30 | 43
Withdrawals not permitted 51 51 46 54 After meeting an age and/or
Data not available .. 3 3 3 1 service requirement ......] 40 | 36 | 46 | 37
‘Once per time period at 23) 21 19
‘Other limit 2 2 2 1
1 Hardship reasons may include death or illness of a family member, Not determinable 1 2 1 1

education expenses, sudden uninsured fosses, or purchase of a primary
residence.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

Table 174. Savings and thrift plans: Maximum amount that
may be withdrawn in plans permitting withdrawals, full-time
employees, medium and large private establishments, 1993

Profes-
sional, 5 Blue-
ay techni [2821] cottar
cal, and | “and
Maximum amount of em- and sales service
withdrawal ploy- related} & em
ees - | Ploy | oloy-
em ‘ees | Ploy:
Ploy- ees
ees
‘Number (in thousands) with
savings and thrift plans
with withdrawals permitted 3,880! 1,332} 1,253] 1,295
Percent
Total with savings and thrift
plans with withdrawals
permitted .... 100 100 400 100

Full account balance ..
Partial account balance
Not determinable ...

62 60 62
36 37 37

~82

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

Table 175. Savings and thrift'plans: Penalties imposed upon

withdrawal of funds in plans permitting withdrawals, full-time
employees, medium and large private establishments, 1993

Profes-
sional, Blue-
All techni: Clerical collar
cal, and
Penalties for withdrawals a and sales service
ee felated | oy. | em
em- | lees | Ploy
ploy- ees
ees
Number (in thousands) with.
savings and thrift plans

with withdrawals permitted 3,880} 1,332} 1,253} 1,295

Percent

Total with savings and thrift

With penalty .. 30 | 30 | 32 | 29

Employer contributions
suspended on) 7 10 6

Alt contributions

13 22 21
Other 1 1 2
No penalty 65 65 65
Not determinable 4 3 7

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

145



Table 77. Non-health maintenance organizations: Types of
limitations on hospital room and board coverage, full-time
employees, medium and large private establishments, 1993

Profes-
sional, Blue-
- ag | tachni-|HeACAll colar
and
em- | &% | sates | _and
‘Type of coverage ploy- and ‘em- service
‘ees. | elated ploy- | &TM
em | ‘ees | Ploy:
ploy- ees
ees
q Number (in thousands) in
non-HMO plans with
i hospital roorn and board
4 coverage 18,179] 4,709] 4,268] 9,202
Percent
Total in non-HMO plans with
! hospital room and board
100 100 100
5 6 4 5
4 37 33 30 42
7 12 13 13 10
i Separate coinsurance ... 4 4 4 5
i Limits on days .... 23 20 14 29
1 Per confinement 22 19 14 27
i Per year .. 1] () i 2
3 2 3 5
1 1 1] (1).
58 61 66 53

1 Less than 0.5 percent

plan benefits.

dash Indicates no employees in this category.

2 Major medical limits are expressed only In terms of total benefits
payable under the plan rather than for individual categories of cara. Limits
ara set as deductibles, coinsurance percentages, and overall dollar limits on

NOTE: Sum of individual items may be greater than the total because some
Participants were In plans with more than one type of limit. Where applicable,


Table 1. Summary: Participation’ in selected employee benefit programs, full-time employees, medium and large private

establishments, 1993
(in percent)
Profes- Profes-
sional, ical| Blue- sional, ica) | Blue-
techni {Heres couar atem-| orca collar
All em-| cal, and em-| cal, :
Benefit Ployees| and ro-|,S2°5 | service Benefit ployees| and re- eam service
lated [ONEOY employ: fated [cag [employ-
Jemploy- ees jemptoy- ees
ees ees
lHeatth care benefits:
91] 89} 93 921 Medical care s2{ s¢| 79 | 82
97 | 97 | 98] 96]! Dental care .. e2 | 68 58
21] 27 | 31} 13]| Vision care 26; 27 | 26] 27
3 5 5 | 13 || Outpatient prescription drug
os | sa| 6 | 76 coverage .. 20; 83 | 78 | 80
a3] e6; @5 | 80
90 | 95 | 92 | 85 |[Retirement income benefits:
53 | 66] 54] 44
3 4 3 1 |] Altretirement®. ve} e3| 7] 76
1 2 1] 4 Defined benefit 56 | 57 | 54] 56
Defined contri 49! 60} 54] 40
Unpaid time off: ‘Savings and thrift 29 98] 34] 21
Deferred profit sharing 13] 12; iw]! 42
Maternity leave 6; 63} 6 | 59 Employee stock ownership 3 3 4 2
Patemity leave ~_ 53] 55 | 51 | 52 Money purchase pension a| 13 7 6
Stock bonus .... o/]eoele;e
Disability benefits:
‘Cash or deferred arrangements:

Short-term disability protection a7} 91} 90 | 69 with uti 36} 46 | 44 | 26
Paid sick leave 65 | 95] 80] 45 35 | 46) 43 | 25
Sickness and accident insurance.| 44 | 28 | 37 | 57 23} 38] 33) 24

4 3 6 3

Long-term disability insurance ........| 41 | 64 | 50 3 5 3 2

‘Survivor benefits: 1 1 1 1
91] 95 | o2 7} 10 6 6
69) 73] 65
5 6 4
ie) 0 e iv)
2 3 2 1
4 2 1 6
snvutticpants are workers covered by a paid time off, insurance, re- full premium are outside the scope ol the survey. Only Gariont employ-
firement, or capital accumulation plan. Employees subject to a minimum ees are counted as participants; retirees are exchided.
service requirement before they are eligible for benefit coverage are ? Includes defined benefit pension plans and defined contribution re-
GOunted as participants even if they have not met the requirement at the _tiement plans. The total is less than the sum of the individual terns be.

time of the survey. ff employees are required to pay part of the cost of Cause many employees participated in both types of Plans.
a benefit, only those who elect the coverage and pay their share are * Less than 0.5 percent.
counted as participants. Benefits for which the employee must pay the ‘ Includes money purchase and employee stock ownership plans.



Premera sere?

tact,

pereerrren

Table 140. Defined benefit plans: Types of earnings included

in earnings-based formulas, full-time employees, medium and
large private establishments, 1993

Table 141. Defined benefit plans: Dollar
amount formule, full-time employees, medium
and large private establishments, 1993

Profes-
sional, Blue-
ag | techni: {1% conar
Definition cal, | or | and
of nloy- | 2nd | S25 | sewvice
eamings vee related | loy- | em
. om | ‘ees | Ploy:
ploy- ees
ees
Number (in thousands) with
eamings-based formula ......| 11,562] 3,823] 3,286 4,453
Percent
Total with eamings-based
formula .. 100 100 100 100
Straight-time earings only ...[. 67 65 66 68
Straight-time eamings plus
33 3 34 32
32 32 32 30
23 27 18 24
19 20 16 20
9 9 8 10

NOTE: Sums of individual items may be greater than totals because more
than one type of eamings may be included in this definition. Where

applicable, dash indicates no employees in this

category.

Table 142. Defined benefit plans: Integration with Social
Security, full-time employees, medium and large private

establishments, 1993

Profes-
sional, 5 Blue-
ay | techne [CletCal copay
Intregration em |S | gaiog | and
with Social and service
Security Ploy: trelated| &TM | em.
ees Ploy-
om | ‘ees | Ploy:
ploy- ees.
ees
‘Number (in thousands) with
defined benefit pension ......| 16,015] 4,405] 3,939 7,671
Percent
Total with defined benefit
pensi 100 | 100 | 100
With integrated formula 43 59 60 36
Step-rate excess! .. 31 40 39 22
reakpoint 23 29 32 14
Dollar amount
breakpoint ... 9 "1 7 8
Offset by Social
Security? 17 19 21 14
Without integrated formi 52 41 40 64

* Formula applies lower benefit rate to eamings subject to FICA (Social
Security) taxes or betow a specific dollar breakpoint.
2 Benefit as calculated by formula is reduced by portion of primary Social

Security payments, for example, 50 percent.

121

Biue-
Ay | collar
em- | and
Item service
Ploy: |" om.
ees
Ploy-
20s
Number (in thousands) with .
dollar amount formula .........| 3,497] 2,754
Percent
Total with dollar amount
formula .... 100 100
Flat monthly amount per
year of service 97 | 97
Less than $5.00 2 2
$5.00 - $9.99 6 6
$10.00 - $14.99 6 8
$15.00 - $19.99 12 13
$20.00 - $24.99 29 29
$25.00 - $29.99 18 15
$30.00 - $34.99 15 14
$35.00 - $39.99 4 4
$40.00 or more 6 7
Dollar amount varies 3 3
By service ... 4 1
By eamings 2 2
Average"
Average flat dollar amount per
year of service .... | $24.76 | $24.51

1 The average is presented for all covered workers;
averages exclude workers without the plan provision.

NOTE: Data were insufficient to show professional,
technical, and related employees and clerical and sales
‘employees separately. Because of rounding, sums of
individual items may not equa! totals. Where applicable,
dash indicates no employees in this category.



~ Sata Sc iy AN GS I RS IER

Table 150. Defined benefit plans: Early retirement reduction,
full-time employees, medium and large private establishments,
1993

Table 151. Defined benefit plans: Method of calculating
disablility retirement benefits, full-time employees, medium
and large private establishments, 1993

Profes-
sional, ‘ Biue-
Al ay | techni |SF4) collar
em- Benefit eam | | sates | ond
retirement and service pa and service
reduction’ Bloy- elated ploy. em- Provisions Ploy- related ploy- em-
em- vee ploy- em- ree ploy-
ploy- ees ploy- ees
ees ees
Number {in thousands) with Number (in thousands) with
early retirement available ...} 15,280] 4,133] 3,758] 7,388 defined benefit pian .. .| 16,015] 4,405) 3,939] 7,671
Percent Percent
Total with early retirement Total with defined benefit plan ..| 100 100 100 100
available .... 100 100 100 100
With disability retirement .
available .. 63 63 66 75
36 4 «4 38
2 3 2 2 at 32 30 52
4 2 5 5
1 1 2 i 32 24 22 at
5 7 5 5
1 1 1 1 9 6 7 W
8 9 8 7
(3) - @) | @)- benefit* .. 1 2 1 1
W 9 9 14 Deferred disability
2 a st 2 retirement ...... 28 31 36 22
Gy) @) |} Gd) -
é @) 1] (3) §)
Reduction varies 64 65 65 62
By service 10 9 9 1 3 2 2 4
By age ... 54 56 56 52
Reduction differs a4 28 3 17
each years wu) 28 27 2 30 1] (5) 1 2
Reduction differs by Disability retirement not
agé bracket? .. 26 29 31 22 available 31 37 “4 25
Other reduction‘ .... (3) 1 1} (3)
Average” 1 Immediate disability pensions may be supplemented by additional
slowness unt an employee reaches a specified age or becomes etigible for
‘Average uniform reduction 2 The disabled worker's pension is computed under the plan's normal
percentage .... 48 | 48 | 46 | 49 benefit fonnula and is paid as ff refrement had occurred on Pe plan's normal

+ Reduction for each year prior to normal retirement.

2 In specific cases, uniform percentage reductions may approximate
actuarial reductions, such as early retirement at age 55 with a reduction of 6
percent per year between age 55 and the plan's normal retirement age of 62.

3 Less than 0.5 percent.

4 Reduction schedule is related to actuarial assumptions of the life
expectancy at age that pension payments begin.

5 Rate of reduction is held constant within age brackets, but differs
‘amoung brackets, somtimes in approximation of an actuarial table. For
example, benefits may be reduced by 6 percent for each year between age
60 and the plan's normal retirement age, and by 3 for each year retirement
precedes age 60. Also includes some plans that reduce benefits
arithmetically for each year immediately below normal retirement age and
actuarially below a specified age, usually 55.

8 Reduced amount was not derived from normal retirement formula.

7 ‘The average Is presented for all covered workers; averages exclude
workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

127

retirement date, either based on years of service actually completed or
projected to a later date.

‘The disabled worker's pension is computed under plan’s normal benefit
formula, based on years of service actually completed, and then reduced for
early receipt.

‘The disabled worker's benefit is not computed by the plan’s normal
benefit formula. The methods used include fiat amount benefits, dollar
amount formulas, percent of unreduced normal benefits less Social Security,
and percent of eamings formula both with and without Social Security offsets.

5’ Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.



a given provision and the average value of that
provision. For example, EBS tabulations indicate the
percent of employees in fee-for-service medical care
plans who must pay selected deductibles (such as $100,
$150, and $200 per year), as well as the average
deductible. (All tabulations of averages include only
those employees actually covered by the provision
being averaged.)

Most tables in this bulletin also include the number
of employees receiving the benefit. This provides the
reader with additional information on the prevalence of
various benefit plans and provisions.

Survey estimation methods

The survey design uses an estimator that assigns the
inverse of each sample unit's probability of selection as
a weight to the unit's data at each of the two stages of
sample selection. Two weight-adjustment factors are
applied to the establishment data. The first factor is
introduced to account for establishment non-response
and a second poststratification factor is introduced to
adjust the estimated employment totals to actual counts
of the employment by industry for the survey reference
date.

The general form of the estimator for a population
total Y is:

ny,
Le

fA

es £2;f1,
yy
25,

where,
n’ = number of responding sample establishments;
0; = occupation sample size selected from the ith

establishment;

Y= value for the characteristics of the jo selected
occupation in the ith selected establishment;

Pi =the probability of including the ith establish-
ment in the sample;

P,; =the probability of including the j'” occupation
in the sample of occupations from the i

establishment;

fl, =weight adjustment factor for nonresponse for
the i establishment;

2; = weight adjustment factor for poststratification
totals for the ith establishment.

171

Appropriate employment or establishment totals are
used to calculate the proportion, mean, or percentage
that is desired.

Rellability of estimates

The statistics in this bulletin are estimates derived
from a sample of usable occupation quotes selected
from the responding establishments. They are not
tabulations based on data from all employees in
medium and large establishments within scope of the
survey. Consequently, the data are subject to sampling
and nonsampling errors.

Sampling errors are the differences that can arise
between results derived from a sample and those
computed from observations of all units in the
population being studied. When probability techniques
are used to select a sample, as in the Employee Benefits
Survey, statistical measures called “standard errors" can
be calculated to measure possible sampling errors.

This evaluation of survey results involves forming
confidence intervals that can be interpreted in the
following manner: Assume that repeated random
samples of the same size were drawn from a given
population and an estimate of some value, such as a
mean or percentage, was made from each sample.
Then, the intervals described by one standard error
below each sample's estimate“and one standard error
above would include the population's value for 68
percent of the samples. Confidence rises to 90 percent
if the intervals surrounding the sample estimates are
widened to plus and minus 1.6 standard errors, and to
95 percent if the intervals are increased to plus and
minus 2 standard errors.

Nonsampling errors also affect survey results. They
can be attributed to many sources: Inability to obtain
information about all establishments in the sample;
definitional difficulties; differences in the interpretation
of questions; inability or unwillingness of respondents
to provide correct information; mistakes in recording or
coding the data; and other errors of collection,
response, processing, coverage, and estimation for
missing data.

Computer edits of the data and professional review
of both individual and summarized data reduce the
nonsampling errors in recording, coding, and pro-
cessing the data. However, to the extent that the
characteristics of nonrespondents are not the same as
those of respondents, nonsampling errors are introduced
in the development of estimates. Because the influence
of these limitations on the EBS estimates is unknown,
reliability measurements are incomplete.



Table 69. Non-health maintenance organizations: Major Table 69.. Non-health maintenance organizations: Major

medical coinsurance rate for selected services, full-time medical coinsurance rate for selected services, full-time
employees, medium and large private establishments, 1993 employees, medium and large private establishments, 1993 —
Continued
Profes-
sional, ‘ Blue- Profes-
ag [tachi | FCS colar sional, | crericai| Blue
al, and techni- | “8°! collar
em- , | sales i Alt and
ltem and service cal, and
ploy- em- em- sales -
related em- ttem and service
ees Ploy- ploy- em-
em- | POY | pioy- oes [elated iy. | em
Ploy- ees . em- | oes | Ploy:
ees ploy- ees
ees
Number (in thousands) with
major medical coverage for
¥ hospital room and board ....:: 16,702| 4,298] 3,976) 8,429 Outpatient surgery
F Number (in thousands) with
ka major medical coverage for Total with major medica!
oa inpatient surgery ... | 15,648] 4,123) 3,835] 7,690 coverage for outpationt
¥ Number (in thousands) with ‘SUIQETY .... -| 100 100 100 100
* major medical coverage for
= outpatient surgery ...| 15,049] 3,880{ 3,670] 7,498 Overall plan coinsurance
&. ‘Number (in thousands) with percent! ... 81 78 82 83
2 Major medical coverage for Separate coinsurance
%. extended care plans ...........| 12,776] 3,348] 3,240] 6,188 rent? 2 18 i 7
n © 1] (@)
§ Percent @)]@)] @)
4 2 2} (3)
i Hospital room and board 19 15 16
q Total with major medical Extended care
z coverage for hospital :
2 FOOM AN OAT ...ssseeeseeee 100 100 100 100 Total with major medical
coverage for extended -
Overall plan coinsurance care ...... eee] 100 100 100 100
| 91 88 a1 92
Overall plan coinsurance
+ 9 12 9 8 81 83 85 79
(3) 5 : (@)
(3) | (8) | 3) 1 wf] ow] i] at
M1 CQ); AQ) 7 2 1 2 2
2 2 2 1 3 3 2 3
@) 1) - (@) @) 7 @)] @) 7] @
6 9 6 5 @) 7 @) | @) 1) @)
@) | @) 1] (3) 12 " 9 14
2 1 2 2
Inpatient surgery
Total with medi * ‘The plan coinsurance is expressed in terms of total benefits payable
sovotene lor Vaart ‘under the plan, rather than for Individual items. The overall coinsurance
surgery 400 100 100 400 appiies to many, if not all, types of medical care covered under the plan.
sroremeremnees : seraataiae coinsurance iis apply to nevidual categories of care, e..
‘Overall pian coinsurance . tess hana 5 ey
| 93 89 94 94 ‘ ‘The coinsurance rate varies by days or a specified dollar amount of
expense. For example, 80 percent coverage up to $5,000 and 90 percent
7 rl Ce thereafter.
(°) °) °) © NOTE: Because of rounding, sums of individual items may not equal totals.
@) 11>) 4 Where applicable, dash indicates no employees in this category.
1 2 1 1
@M)] @) | ©) 7
5 7 4 4
‘Se6 footnotes at end of table.
67



The degree of participation varies widely among
employee groups, with white-collar workers more
likely to have LTD insurance than blue-collar workers.
However, some employees not covered under LTD
insurance are eligible for an immediate disability
pension through their retirement plan (see chapter 6).

Full-time participants often have to wait 6 months
after the onset of disability before beginning to receive
LTD payments. For some participants, LTD benefits
commence after the expiration of sick leave and
Sickness and accident insurance benefits (table 41).

The majority of LTD plan participants receive their
LTD benefit as a fixed percent of predisability
earnings. The benefit commonly yields 60 percent of
monthly pay (tables 42-44). Most of these plans set a
limit on monthly payments, for example, between
$4,000 and $10,000.

A large majority of both white-collar and biue-
collar participants are in plans that provided a fixed
percent of earnings. However, those participants in
plans with other benefit formulas are more likely to
have a plan that pays a variable percentage based on the
level of earnings.

Most LTD plans have a monthly maximum limit,
either a dollar maximum in plans that pay a fixed
percent of earnings, a disability income ceiling, or a
combination of both methods. Disability income
ceilings affect benefits only if the amount payable from
the LTD plan plus income from other outside sources,
such as family Social Security payments, exceed a

specified percentage (for example, 70 or 75 percent) of
predisability earnings. .

Participants in long-term disability plans usually
have their benefits continued until retirement or a
specified number of months, depending on the
employee's age at the time of disability. The duration
of benefits may be reduced gradually according to an
age schedule or reduced once at a specified age (table
45).

Service requirements found in LTD plans are
usually more restrictive that for other insurance benefits
studied (table 46). Because of the long-term nature of
the LTD benefits, employers often restrict eligibility to
employees who demonstrate some attachment to the
establishment. Most plans impose service requirements
before LTD coverage begins, often 3 to 12 months.

Some plans provide survivor benefits, payable to an
eligible dependent upon the death of a disabled
employee (table 47). These benefits usually take the
form of a lump-sum payment, often equal to 3 times the
monthly LTD benefit or a percent of the monthly LTD
benefit paid for a fixed number of months (generally
not more than 6 months).

A large majority of participants are in plans that
include coverage for disabilities due to mental illness
(table 48). However, these participants often have
limits placed upon such coverage. For example,
benefits are provided for a specified period, such as 24
months, and then cease unless the participant is
institutionalized at the end of the limiting period.



|

Table 114, Dental care benefits: Pretreatment authorization
provisions, full-time employees, medium and large private

establishments, 1993
Profes- a
sional, jlue-
techni- Clerical collar
Allem-| cal, | aie, | and
Item ploy- | and re- ‘em- service
ees | lated ploy. | om
em- | ‘ees | Ploy:
ploy- eos
ees
Number (in thousands) with
dental care .. .| 17,704} 5,233] 4,620] 7,851
Percent
Total with dental care 100 100 100 100
Preauthorization required .........] 56 51 58 59
Minimum expense requiring
preauthorization:
Less than $100 CG) - - (")
$100... 10 9 9 10
$101-$199 8 8 9 9
svenoneesasees 16 13 17 16
Greater than $200 19 18 19 20
Dollar amount not
determinable ... 3 3 3 3
Preauthorization not required ...} 42 45 40 4
Data not available ..... 2 4 2] (1)
Average?
Average minimum expense
requiring preauthorization ...| $213] $211] $213} $214

7 Less than 0.5 percent.

2 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

96


Table 34. Sickness and accident Insurance: Fixed percent of
earnings amounts, full-time employees, medium and large
private establishments, 1993

Table 35. Sickness and accident insurance: Maximum
benefits based on percent of earnings formulas, full-time
employees, medium and large private establishments, 1993

Profes- i Profes
sional, lue- sional, Blue-
- techni |Cleticaly conar techni: |letieall cotiar
All ‘cal and | ‘and Al cal, and. | ‘and
Fixed percent of eamings em- and sales service Maximum benefit per week em- | and: sales service
Ploy- |related| Of | om Ploy- | retated| 2 |” om.
ees | om- ploy- ploy. ees | om ploy- ploy-
ploy- ees ees ploy- ees ees
ees ees
Number (in thousands) with Number (in thousands) with
fixed percent of eamings percent of eamings benefit | 8,290)
benefit ....... 7,558} 1,843) 2,143} 3,572
Percen
Number with percent of
Total with fixed percent of eamings benefit 100 100 100 100
eamings benefit .. 100 100 100 100
With maximum ral 69 66 74
Less than 50 percent 1 3 17) Less than $200 37 | 36 33 | 39
50 percent... 41 4 41 42 $200 - $299 7 4 7 9
51 - 89 percent 2y-4 1 4 $300 - $399 18 16 17 19
60 percent... 24 25 24 23 9 12 10 7
61 - 69 percent ... 22 18 23 23 29 31 33 2
70 percent... “§ 4 6 4 a} Oy] Cy) 1
71-79 percent ... 3 6 4 1
80 percent or more 2 3 1 2 Average?
Average? Average maximum benefit per
week $343] $341] $261
Average fixed percent of
eamings benefit .... 58) 58. 59) 58
1 Less than 0.5 percent.
‘The average |s presented for all covered workers; averages exclude
1 Less than 0.8 percent workers without the plan provision.

2 ‘The average is presented for all covered workers; averages exclude
workers without the plan provision.

NOTE: Because of rounding. sums of individual Kems may not equal totals.
‘Where applicable, dash indicates no employees in this category.

NOTE: Because of rounding, sums of individual tems may not equal totals,
Where appticable, dash indicates no employees in this category.

32



Chapter 9. Benefits by Selected
Characteristics

This chapter presents incidence of employee
benefits for four selected characteristics—geographic
region, major industry segment, union status, and part-
time employment.

Tables 198 and 199 present, for the first time,
incidence of employee benefits for full-time employees
by four geographic regions: Northeast, South, North
Central, and West.” The incidence of insurance and
retirement benefits was typically higher in the
Northeast and North Central regions. Establishments in
the Northeast employed about 6.6 million full-time
workers, the South employed 8.7 million workers, the
North Central employed 7.9 million workers, and the
West employed 5.6 million workers.

Overall, the incidence of benefits provided to
workers in goods-producing industries was higher than
that provided to workers in  service-producing
industries, particularly for blue-collar and service
workers. Service-producing industries accounted for
about three-fifths of those employed full time in 1993.41
(See tables 200-203.)

In general, employees covered by collective
bargaining agreements were more likely to receive
insurance and retirement coverage than nonunion
workers. About one-fifth of full-time employees in
medium and large private establishments were covered
by collective bargaining agreements. Tables 204 and
205 show incidence of employee benefits for full-time
workers by union status.‘?

40 Geographic regions are defined as follows: Northeast

Connecticut, Maine, Massachusetts, New Hampshire, New Jersey,
New York, Pennsylvania, Rhode Island, Vermont; South—Alabama,
Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky,
Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South
Carolina, Tennessee, Texas, Virginia, West Virginia; North Central--
IMtinis, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri,
Nebraska, North Dakota, Ohio, South Dakota, Wisconsin; West--
Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana,
Nevada, New Mexico, Oregon, Utah, Washington, Wyoming.
41 Goods-producing industries include manufacturing, mining, and
construction. Service-producing industries include transportation,
communications, electric, gas and sanitary services; wholesale trade;
retail trade; finance, insurance, and real estate; and services. See
Appendix A for additional information on survey scope.

157

Finally, tables 206 and 207 present. incidence of
benefits for part-time workers in medium and large
private establishments.“? Part-time workers within the
scope of the Employee Benefits Survey were far less
likely to be covered by benefit plans than full-time
workers. Part-time workers account for about one-
seventh of the 34.3 million employees in medium and
large private establishments.

Benefits by geographic region

The incidence of paid leave benefits varied little by
geographic region, with the exception of unpaid
maternity leave. Such leave was more common in the
West and Northeast regions, and was due primarily to
the existence of state mandated coverage. Insurance
and retirement benefits were more prevalent in the
Northeast and North Central regions. The higher
incidence of these benefits in the Northeast and North
Central regions may be largely attributed to
proportionately higher concentrations of unionized
blue-collar workers in goods-producing industries
within those regions. The incidence of other benefits,
such as child care, employee assistance programs, and
reimbursement accounts varied little among geographic
Tegions.

Benefits by industry

The incidence of benefits provided to full-time
workers in goods-producing industries was typically
higher than for those in service-producing industries.
Workers in service-producing industries were more
likely to receive sick leave, but this was more than
offset by sickness and accident insurance coverage,
where the incidence of coverage for workers in goods-

2 Occupations are categorized as union or nonunion at the time of
data collection, To be categorized as union, the occupations must meet
the following criteria: 1) A labor organization must be recognized as
the bargaining agent for workers in the occupation; 2) wage and salary
rates must be determined through collective bargaining or
negotiations; and, 3) settlement terms must be embodied in a signed,
mutually-binding collective bargaining agreement.

43 Bmployees are classified as full-time or part-time in accordance
with the practices of surveyed establishments.



Table 58. Health maintenance organizations: Coverage for
‘selected services, full-time employees, medium and large

Table 59. Health maintenance organizations: Coverage for
alternatives to hospital care, full-time employees, medium and

private establishments, 1993 large private establishments, 1993
Profes- Profes- a
sional, a Blue- sional, . jlue-
techni- Clerical collar techni | Clerical collar
Category of care and extent of ar om-| cal, sales | 9nd Catagory of care and extent of Alem ana. sales somee
‘coverage Dloy- jandre-} “on, | Service coverage Ploy- em-
ees | lated em- ees | lated | oigy. | om
| ploy- em- | POY | ploy-
em- | ‘gas | Ploy- ees,
ploy- ees Ploy- ees
ees ees
Percent Percent
Hospital room and board
Extended caret
Total with coverage 100 100 100 100
Covered in full 82 85 84 7 Total with coverage 100 100 100 100
Subject to limi 18 15 16 23 Covered in full .. 26 23 26 28
Subject to limits? . ma) mil mai] 7
Inpatient surgery
Home health care!
Total with coverage . 100 100 100 100
Covered in full 97 97 98 96 Total with coverage 100 100 100 100
‘Subject to limits’ 3 3 2 4 82 83 80 83
18 17 20 17
Outpatient surgery?
Total with coverage . 100 100 100 100
Covered in full 95 96 94 95 100 100 100 100
Subject to limitst 5 4 6 5 . 75 76 79 71
Subject to limits? .. 25 24 21 29
Inpatient physician visits _
ith covera: 1 Some plans provide this care only to a patient who was previously
ToBovered in full 7 ‘v Oe 13 nospitalzed and ie recovering without. Need ‘of the extensive care provided by
‘Subject to limits 3 4 2 4 ee artie oe be set in terms of dollar or day ceilings on benefits, a
i - requirement that the participant pay a percentage of cost (coinsurance), or a
Office physician visits requirement that the participant pay a specific amount (deductible or
. copayment) before reimbursement begins or services are rendered.
Total with coverage .. 100 | 100 | 100 | 100 fee
Covered in full 21 23 18 21 NOTE: Because of rounding, sums of individual items may not equal totals.
Subject to limits* ee 79 7 82 79 ‘Where applicable, dash indicates no employees in this category.
Diagnostic x-ray and
laboratory services
Total with coverage 100 100 100 100.
Covered in full 98 97 98 98
‘Subject to limitst 2 3 2 2

1 Limits may be set in terms of dollar or day ceilings on benefits, a
‘Fequirement that the participant pay a percentage of costs (coinsurance), or a
requirement that the participant pay a specific amount (deductible or
copayment) before reimbursement begins or services are rendered.

Charges incurred in the outpatient department of a hospital and outside
of the hospital

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

57



Table 168. Savings and thrift plans: Types of investments allowed, full-time employees, medium and large private
establishments, 1993

2 Includes purchase of iife insurance, annuities, real estate, employees
mortgage, and deposits in credit unions or savings accounts.

141

Professional, A
All employees technical, and | “erica and sales | Blue-collar and
related employees ‘Service employees
Investment
Employee | Employer | Employee | Employer | Employee | Employer | Employee| Employer
contribu- | contribu- | contribu- | contribu- | contribu- | contribu- | contribu- | contribu-
tions tions tons tions tions tions tions tions
‘Number (in thousands) with
‘savings and thrift plans ....... 8,284 8,284) 2,933 2,933 2,470 2,470 2,880 2,880
Percent
Total with savings and thrift
plans .. 100 100 100 100 100 100 100 100
Company stock 4a 49 46 50 45 49 40 48
Common stock fund ... 68 49 70 51 70 52 66 46
Long-term interest bearing
securities .. 42 28 45 31 4 29 38 26
Diversified stock and bond
fund .. 42 33 44 36 il] 44 34 37 29
Govemment securities 23 14 26 15 22 15 20 13
Guaranteed investment
contracts ... 7 43 30 42 28 44 32 43 31
Money market funds .. 26 20 28 24 25 19 25 16
Certificates of deposi 1 1 1 1 1 1 C) fas)
Other? ..... 6 6 7 7 7 8 3 4
Not determinable 3 3 4 4 2 2 .. 3 3
1 Less than 0.5 percent. NOTE: Sums of individual items do not equal totals because

are often offered a number of investment choices.
Where applicable, dash indicates no employees in this category.



Table 26. Paid sick leave: Percent of full-time employees by sick teave provision, medium and large private establish-

ments, 1993—Continued

Profes- Profes-
sional, | Clerical |Blue-col sional, | Clerical |Blue-cot-
; ‘allem: | techni | and | tar and ‘Alvem. | techni | and | lar and
Sick leave policy’ Towees |cah and| sales | service Sick teave policy’ Y'Jeal, and| sales | service
_ Ployees | retated | employ- | employ- Ployees | related | employ- | employ-
employ-| ees | ees employ-| ees | ees
ees ees
Alter 20 years of service: After 25 years of service?
Under 5 days 1] 0 0) 1 Under 5 days .. 1/0 | 6 1
5 and under 10 days 3 1 2 7 5 and under 10 days 3 1 2 7
10 and under 15 days 2 1 5 1 10 and under 15 days 2 1 5 1
15 and under 30 days 3 3 4 3 16 and under 30 days 3 3 4 3
30 and under 60 days 8 8 7 | ou 30 and under 60 days 9 8 7/01
60 and under 120 days 2 | 1 | 23 | 17 60 and under 120 days 1 | 14 | wl] 12
120 and under 180 days a | so | 35 | 92 120 and under 180 days 45 | 54 | 40 | 37
180 days or more ... 73 | 17 | 2] 19 180 days or more .. 13 | 17 | 2 | 19
* Employees receiving partial pay only or no sick leave in their early terval.

years of service are included in the overall percentages of workers pro-
vided sick leave; however, they are disregarded in computing the distri-
butions by length of service up to the service period at which they be-
come eligible for full sick leave pay.

? Employees are either granted a specific number of days after com-
pletion of the indicated length of service, or accrue days during the next
12-month period. The total number of days are assumed available for
use immediately upon completion of the described tength-of-service in-

2 Provisions were virtually the same after longer years of service.

* Less than 0.5 percent.

5 Employees are granted a specific number of sick leave days for
each illness or disability after completion of the described length-of-
service interval. *

NOTE: Because of rounding, sums of individual items may not equal
totals. Where applicable, dash indicates no employees in this category.

Table 27. Paid sick leave: Average number of days at full
pay for full-time employees by type of plan, medium and
large private estabishments, 1993

Profes-
sional, | Clerical |Biue-col-
‘Allem. | techni. | and | tar and”
cal, and| sales | service

Sick teave policy Ployees |ai.an| sles 4
employ-| ees | ees

ees
Paid annual sick leave days' by
minimum length-of-service
requirement:
120] 153 10.2
144] 185 15
169] 21.4 132
19.7 | 245 147
218| 269 159
232| 284 473
245| 298 18.4

Paid per disability sick leave days*
by minimum fength-of-service
requirement:

1180| 1245| 1139! 1103

After 25 years? 128.6] 1930| 1259| 1233

' Employees are either granted a specific number of days after comple-
tion of the indicated length of service, or accrue days during the next 12-
month period. The total number of days are assumed available for use
immediately upon compietion of the described length-ot-service interval.

? The average (mean) was virtually the same after longer years of serv-
ice.
? Employees are granted a specific number of sick leave days for each
illness or disability after completion of the described length-of-service inter-
val. This number may vary by length of service.

NOTE: Computation of average excluded days paid at partial pay and
workers with only partial pay days or zero days of sick leave.

28


Table 62. Self-insured medical care benefits’: Administrative
provisions, full-time employees, medium and large private
establishments, 1993

Table 63. Health maintenance organizations: Summary of
selected features, full-time employees, medium and large
Private establishments, 1993

Profes- Profes-
‘sional, a Blue- sional, A Blue-
. an [techni [TCA cotter ay {techni {CAI cotar
em | 4 | sates | 2nd em | S% | sates | and
Funding and administration ploy and ‘em. | Service Feature and | “em. | Service
ee, | related ploy. | 2m ee. | related ploy. | 2m
em- | ‘ges | Ploy- em- | ‘ees | Ploy
Ploy- ees ploy- ees
ees ees
‘Number (in thousands) with Number (in thousands) in HMO
self-insured plans 11,148) 2,871] 2,702} 5,576 Plans .. »| 5,340] 1,820] 1,550) 1,970
Percent Percent
Total with self-insured plans .....) 100 100 100 100 Total in HMO pians .... 100 100 100 100
Administrative service only Model type:
contract? ..... seep 52 52 56 St _ Group/stafft .... 41 42 39 41
Minimum premium payment? 2 1 1 4 Individual practice
Administrative service only < association? 52 51 53 52
and minimum premium Mixed model 7 7 9 6
payment 4 3 3 5
No administrative service Point of service feature 10 W 10 7
‘only or minimum Federally qualified .. so | st 81 80
premium payment ..........) 42 45 40 41 Limit on copayments* 19 12 18 28
Preventive dental careS ..... 5 6 6 4
Vision screening or
1 Includes plans that are financed on a pay-as-you-go basis, plans examinations .... 14 15 9 16

financed through contributions to a trust fund established to pay benefits, and
plans operating their own facilties if at least partially financed by employer

contributions.
2 ‘An arrangement where an establishment pays the cost of benefits but
hires another establishment to handle administrative services,
An arrangement where an establishment seff-insurers benefits up toa
Certain level of payments then contracts with an insurer to pay clams above
level.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

60

3 Care is provided at centfalized focations.

2 Care is provided by doctors working out of their offices.

8 Enrollees may obtain care from non-HMO providers, with limited
reimbursement.

4 In these plans, HMO’s limit the dollar amount the individual pays after
which coverage is in full. For example, there is a copayment limit of $1,000
after which the HMO covers ail services at 100 percent.

5 Includes dental examinations and/or x-rays only.

NOTE: Where applicable, dash indicates no employees in this category.


Table 115. Vision care benefits: Fee arrangement and financial
Intermediary, full-time employees, medium and large private
establishments, 1993

Table 115. Vision care benefits: Fee arrangement and financial
intermediary, full-time employees, medium and large private
establishments, 1993 — Continued

Profes- Profes-
sional, |oreicai| Blue sional, | pjerieq)| Blue-
ay [techni |8FS!) coltar ay {techni {PEE cotar
Fee arrangement and financial] em- bee sales sate Fee arrangement and financial | em- oa sales is a
intermediary ploy- related} &TM em- intermediary ploy- related} &TM em-
ees Ploy- ees ploy-
em- | "ees | Ploy em- | ‘ees | Ploy
ploy- ees ploy- ees
ees ees
Percent
Number {in thousands) with
vision care .. 3,622
Health maintenance
organization® 22 1 6 1 4
Pa Self insured? 1 (4) (4)
Total with vision care .... 100 | 100 | 100 Commercial insu
company .... 1 1 1 1
By) si eB Blue Cross/Blue Shield 2] 2{ 3] 2
ecr Independent
Car weeny ee 6 7 4 7 organization’ pl] we] 2] to
Blue Cross/Blue Shield 3/ 4] 3] 3 Vision organizatio Mp PP OTe
Independent 4 - 4
organization? .. Mm] pa dc Other O17 ©
Combined financed (4) | 4) | 4) - myn
Vision organizations .. 23 24 25 Less than 0.5 percent.
5 These are plans where the financing comes from two different kinds of
financial intermediaries. For example, an establishment contracts with Blue
10 12 8 " Cross/Blue Shield to pay part of the benefits and a commercial company to
4 7 3 3 pay.the other benefits.
© Organizations of providers other than Blue Cross/Blue Shield.
7 A preferred provider organization (PPO) is a group of hospitals and
company .. 4 3 2 6 physicians that contracts to provide comprehensive vision services. To
Blue Cross/Blue Shield 1 1 2 1 ‘encourage use of organization members, the vision care plan limits
Independent relmbursement rates when participants use nonmember services.
organization® . (4) | oy | ey | 4 8 Includes federally qualified {those meeting standards of the Health
Vision organization® .. 1 i 4 1 Maintenance Organization Act of 1973, as amended) and other HMO's
delivering comprehensive health care on a prepayment rather than

| These plans pay for spect vsion procedures ae expenses are

incul .

2 Includes plans that are financed on a pay-as-you-go basis, plans
financed through contributions to a trust fund established to pay benefits, and
plans operating their own faciities if at least partially financed by employer
contributions. Includes plans that are administered by a commercial cartier
through Administrative Services Only (ASO) contracts.

8 These ot ions provide and finance ail benefits, but are not
affiated with an insurance company or Blue Cross/Blue Shield.

97

fee-for-service basis.

®@ includes exclusive provider organizations, which are groups of hospitals
and physicians that contract to provide comprehensive vision services.
Participants are required to obtain services from members of the organization
In order to receive pian benefits.

NOTE: Because of rounding, sums of individual items may not equa! totals.
Where applicable, dash indicates no employees in this category.



Table 199. Other benefits: Eligibility for specified benefits, full-time employees, by geographic region,
medium and large private establishments, 1993

- Benefit Northeast South North Central West
43 40 42 44
Supplemental 3 2 9 1
Family benefits:
Employer assistance for child care . 7 6 9 4
Adoption financial assistance .. 7 4 7 1t
Eldercare ... 44 3t 23 28
Long-term care insurance 9 5 4 5
Health promotion programs:
In-house infirmary se 35 29 35 29
Wellness programs ... 41 30 42 36
Employee assistance prog! 59 57 68 63
‘Miscellaneous benefits:
Employer-subsidized recreation
facilities .... 24 26 32 23
Job-related travel accident insurance 45 46 43 44
Nonproduction bonuses ... 36 “4 40 42
Prepaid legal services 6 6 9 6
Education assistance:
Job-related .. 68 69 81 70
Not job-related 26 20 20 24
Flexible benefits plans .. 12 12 8 16
Reimbursement accounts 44 59 54 47

160


HESS ASIPSO ENR OS ONS ae gE SES A RAE

THER eA RR OANA RAG, =

oe

Table 136. Defined benefit plans: Summary of plan
provisions, full-time employees, medium and large private
establishments, 1993

Table 137. Defined benefit plans: Primary formula and
availability of alternative formula, full-time employees, medium
and large private establishments, 1993

Profes- Profes-
sional, . Blue- sional, Blue-
ay [techni |8AI) conar ay | techni: [CletiCal) colar
cal, and cal, | 205 | and
Provision em | and | S28 | service Benefit em | and | S25 | service
Ploy | related| 8TM |” am- formula’ PY” | related} 8 | em.
em- ie Ploy- em- Ploy- ploy-
ploy- ees ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with
defined benefit pian .... -| 16,015} 4,405] 3,939] 7,671 defined benefit pian -| 16,015] 4,405/ 3,939] 7,671
Percent Percent
Total with defined benefit plan ..} 100 100 100 100 ‘Total with defined benefit plan ..; 100 100 100 100
Basic provisions Percent of terminal eamings 61 74 73 48
. With alternative formula ..} 21 26 18 19
Employee contribution Percent of career eamings “1 13 10 10
required. .... 3 2 2 3 With aitemative formula 3 4 2 3
Benefits based on earings .. 72 8&7 83 58 Dollar amount formula .... 22 7 11 36
Benefits integrated with With altemative formul 1 1 (?) 1
Social Security ......0000| 48 59 60 36 Percent of contribution
Benefits subject to formula ... 2] (7) 1 4
maximum? .... 37 4at 48 30 Cash account 3 6 4 2
Early retirement benefits With altermative formula (?) (?) (7?) | (7)
available ... 95 94 95 96 Other... (7) | (2) (7) | (?)
Disability retirement benefits =
available -| 69 63 66 75
Portabitity provisions 7 8 8 7 1 Alternative formulas are generally designed to provide a minimum
benefit for employees with short service or low eamings.
10 10 8 1" Less than 0.5 percent.
, NOTE: Because of rounding, sums of individual items may not equal totals.
Other provisions ‘Where applicable, dash indicates no employees in this category.
Normal retirement
supplement available ...... 4 4 2 6
Early retirement supplement
available 10 6 4 16
Minimum benefits provision .. 2 3 2 2 .
Early retirement requires
employer approval .......... 3 2 1 §
Lump-sum postretirement .
‘SUIVivOr DENEFIS -.....-...0.. 2 1 2 3
Lump-sum preretirement
survivor benefits 3 3 2 3
Full pension restored
spouse predeceases
retiree ..... 10 6 10 13

1 Provisions that restrict benefits, such as limits on the number of years
of service included in benefit computations.

NOTE: Where applicable, dash indicates no employees in this category.

119



Table 46. Long-term disability insurance: Eligibility
requirements, full-time employees, medium and large private

establishments, 1993

Table 47. Long-term disability Insurance: Survivor benefits,
full-time employees, medium and large private establishments,
1993

Profes- Profes-
sional, Blue- sional, Blue-
‘ay | techni {HCA cotar techni [Clerical cotar
- . and All and
em. | oA: sales | _o"3 em | sales | ond
Length of waiting period and service Survivor provision and service
Ploy: | rotated | ©TM | om. Ploy- | related} © |” om.
ees ploy- ees Ploy-
em- | ‘sas | Ploy: em- | ‘ees | Ploy
Ploy- ees Bloy- ees
e0es ees
Number (in thousands) with Number (in thousands) with
long-term disability long-term disability
insurance .... 11,827} 4,959] 3,671] 3,197 insurance .. 11,827} 4,959] 3,671] 3,197
Percent Percent
Total with tong-term disability Totat with long-term disabilit
insurance .... | 100 100 100 100 insurance .. se| 100 100 100 100
With service requirement 53 49 56 54 With survivor benefits. 26 25 26 3
1 month .. 10 12 7 Lump sum payment 20 23 21 14
2 months 2 2 3 Percent of monthly
3 months 12 14 12 benefit! 3 4 2
4-5 months My 1 Cy 2 Other... 3 } (7) 1 9
6 months 10 12 16 No survivor benefits 61 63” 59 60
7-11 moni Cy} ey] ey Not determinable .... 13 12 15 14
12 months .. 12 1 W
Greater than 12 months 3 5 3
No service requirement 42 47 38 39 2 Benefits are payable for a limited time period, typically 6 months.
Closed to new employees (a ee On i a Less than 0.5 percent.
Notdeterminebte § 4 5 z NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.
Average?
Average service requirement
(in months) ....... a 83 8.0 9.0 8.0

3 Less than 0.5 percent.

The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

38



Table 90. Mental health care benefits: Limits on coverage,
full-time employees, medium and large private establishments,
1993

Table 91. Mental health care benefits: Limits on coverage in
health maintenance organizations, full-time employees,
medium and large private establishments, 1993

Profes-
sional, ‘ Blue-
_ techni | 2R€ cotiar
Allem-| cal, | Sigg | and
Coverage limitation ploy- | and re- service

ees | lated | S| om-

em- pley- ploy-

ploy- ees

20s

Inpatient’

Total ..... 100 100 100
No limits ..... 7 16 7 14 16
Subject to separate fimits? 84 83 86 84
jays... 55 57 55 54
Dollars 47 40 4g 4g
Coinsurance 15 14 17 13
Copayment 4 5 5 3

Outpatient?

BBSSBa
RESERa
BSRaSa
aIBesen

Profas-
sional, i Blue-
techni- Clerical collar
Allem-| cal, sales and
Coverage limitation ploy- | and re- em- service
ees | lated ploy- | om
em- | ‘eas | Ploy
ploy- ees.
ees
Inpatient’
Total .. 100 100 100 100
No limits ... 7 7 9 4
‘Subject to separate limits 93 | 93 | of 96
Days 88 87 87 90
Dollars 8 7 5 10
Coinsurance . 16 13 15 20
Copayment 12 13 WW 12
Outpatient?
Total ... 100 100 100 100

No limits ......
Subject to separate limits?
Ss

97 97 97 97

Doliars 12 W 14 Ww
Coinsurance .. 7 20 13 18
Copayment 65 58 71 66

1 Excludes doctor's charges in the hospital

2 Separate limitations indicate that mental health care benefits are more
restrictive than benefits for other treatments. For example, if a plan limits
inpatient mental health care to 30 days per year, but the limit on inpatient
care for any other type of iliness ts greater than 30 days per year, that plan
contains separate limits. The total is less than the sum of the individual items
because many plans had more than one type of fimitation.

3 Includes treatment in one or more of the following: outpatient
department of a hospital, residential treatment center, organized outpatient
clinic, day-night treatment center, or doctor's office. if benefits differed by
location of treatment, doctor's office care was tabulated.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

1 Excludes doctor’s charges in the hospital

2 Separate limitations indicate that mental health care benefits are more
restrictive than benefits for other treatments. For example, if a plan limits
inpatient mental health care to 30 days per year, but the limit on inpatient
care for any other type of iliness is greater than 0 days per year, that plan
contains separate limits. The total is less than the sum of the individual items
because many plans had more than one type of limitation.

$ Includes treatment in one or mors of the following: outpatient
department of a hospital, residential treatment centet, organized outpatient
clinic, day-night treatment center, or doctor's office. If benafits differed by
lacation of treatment, dactor’s office care was tabulated.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.



Chapter 1. Results of
the 1993 Survey

The Bureau's 1993 survey of medium and large
establishments in private industry provides data on
employee work schedules and develops information on
the incidence and detailed characteristics of employee
benefits paid for, at least in part, by the employer.'
These benefits include paid lunch and rest periods;
holidays, vacations, and personal, funeral, jury-duty,
military, parental, and sick leave; sickness and
accident, long-term disability, and life insurance;
medical, dental, and vision care; and private retirement
plans. Because the survey data are limited to formal
plans, this bulletin may understate the extent of such
benefits as rest periods and personal leave.

- Data also are.collected on the incidence of several
other benefits, including severance pay, child-care
assistance, wellness programs, employee assistance
programs, and educational assistance. In addition,
information was obtained on flexible benefits plans,
reimbursement accounts, and unpaid parental leave.

Major highlights of the survey are reported later in
this chapter. Detailed information on the provisions of
the benefits studied appears in chapters 2-8.

For the 1993 survey of benefits in medium and large
private establishments, BLS collected information for
both full-time and part-time employees. Employees
were classified as either full-time or part-time workers
in accordance with their employers’ practices. Part-time
workers typically are scheduled to work fewer hours
per week than full-time workers engaged in the same
type of work activity. In addition, data were also
collected on the incidence of employee benefits by
union status, broad industry grouping, and broad
geographic regions.

Among the most frequently observed benefits
provided to full-time employees in medium and large
ptivate establishments in 1993 were medical care,

1 There are a few exceptions to this general rule. The survey
provides estimates on the availability of postretirement medical care
and life insurance, dependent life insurance, supplemental life
insurance, and long-term care insurance even if an employee or retiree
must pay for such coverage fully. This is because the guarantee of
insurability and availability of coverage at group premium rates can be
considered a benefit. In addition, reimbursement accounts, salary
reduction plans, and parental leave plans are tabulated even if the
employer bears no cost beyond administrative expenses.

dental care, life insurance, defined benefit pension
plans, holidays, vacations, and paid sick leave; each of
these benefits was provided to the majority of full-time
workers (tables 1-2). In contrast, such benefits as paid
parental leave, personal leave, sickness and accident
insurance, and long-term disability insurance were less
prevalent among full-time workers.

Work schedules, paid time off, and parental
leave

Eighty-two percent of full-time employees had
weekly work schedules of 40 hours, based on five 8-
hour days. Two-thirds of full-time employees were
provided formal rest time, such as coffee breaks and
clean up time; these benefits were more common
among blue-collar and service employees than among
white-collar employees. Paid rest periods averaged 26
minutes per day. (See chapter 2.)

Paid vacations, provided to virtually all full-time
employees, averaged 9.4 days after 1 year of service,
16.6 days after 10 years of service, and 21.9 days after
30 years of service. Virtually all employees covered by
vacation plans were required to work a specified period
of time before being able to take a vacation, with the
most common length-of-service requirement being 1
year. Two-fifths were allowed to carry-over at least
some of their unused vacation days into the following
year; one-fifth could cash in some or all of their
vacation days at the end of the year;

‘When other types of leave were provided, covered
employees received, on average:

10 holidays per year;

3 days of funeral leave per occurrence;
Jury duty leave as needed;

3 personal leave days per year;

14 days of paid military leave per year.

ceoeee

Unpaid maternity leave was available to 60 percent
of full-time employees; 53 percent were eligible for
unpaid paternity leave. White-collar workers were more
likely to be covered by such plans than were blue-collar

ee


Contents—Continued

|

Page
Vision care.... 47
Chapter 5. Life insurance...... 99
‘Types and amounts of benefit formulas 99 i
Coverage for older active workers and retirees. 99 |
Related protection .... 99
Service requirements 100
Accidental death and dismemberment . 100
Survivor inconte benefits ... 100
Chapter 6. Defined benefit plans. 112
Benefit formulas ..... 112 i
Private benefits and Social Security payments 113
Maximum and minimum benefit provisions 113
Methods of payment 114
Survivor annuities 114
Preretirement survivor benefits .. 114
Replacement rates 115
Normal retirement 115 i
Early retirement 116
Disability retirement 116
Vesting 116 i
Portability 7
Postretirement pension increases. 117
Employee contributions .... 117
Participation requirements 118
Chapter 7. Defined contribution plans .. 131
Plan types ... 131
Savings and thrift plans . 132
Employee contributions 132
Employer-matching contributions .. 132
Investment decisions .... 132
Withdrawals and loans. 132
Distribution ... 133
Participation requirements 133
Vesting 133
Deferred profit-sharing plans 133
Money purchase pension plans . 133
Stock plans ... 134
Cash or deferred arrangements . 134
Chapter 8. Flexible benefits plans and reimbursement accounts 155
Chapter 9. Benefits by selected characteristics 157
Benefits by geographic region ... 157
Benefits by industry ..... 157

vi


ass

Table 170. Savings and thrift plans: Method of allocating contributions to Investment options in plans permitting
employees to choose investments, full-time employees, medium and large private establishments, 1993

Professional, ,
4 Clerical and sales Blue-collar and
All employees Ck oy aoes employees service employees
Item
Employee} Employer | Employee] Employer | Employee] Employer | Employee} Employer
contribu- | contribu- | contribu- | contribu- | contribu- | contribu- | contribu- | contribu-
tions tions tions tions tions tions tions tions
Number {in thousands) with
savings and thrift plans
with employee investment
choice 7,139 4,818 2,574) 1,739 2,143) 1,502 2,422 1,577
Percent
‘Total with savings and thrift
plans with employee .
investment choice ... 100 100 100 100 100 100 100 100
Any muttiple 30 34 32 39 26 29 32 34
64 61 63 56 70 67 60 60
@) (oe) a) C) Cy) «) - -
5 5 5 5 4 3 8 6

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not
equal totals. Where applicable, dash indicates no employees in
this category.

143



Table 40. Long-term disability insurance: Summary of
provisions, full-time employees, medium and large private

establishments, 1993

Table 41. Long-term disability insurance: Benefit waiting
period," full-time employees, medium and large private

establishments, 1993

Profes- Profes-
sional, 5 Blue- sional, Blue-
‘ay { tochni- [CHCA conar tochni- |Clet¢al) coer
and All and
em- cal, sales and em- cal, | sales | 8nd
Provision and service Length of waiting period and service
Ploy- | retated | © | om- Ploy- | related |
ees |TM ploy- ees | Ploy. | oTM
em- ees ploy- em- e6s ploy-
ploy- ees ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with
jong-term disability jong-term disability .
insurance 11,827] 4,959] 3,671] 3,197 insurance .. 11,827] 4,959} 3,671} 3,197
Perzent Percent
Total with long-term disability Total with long-term disability
insurance ... 100 100 100 1400 insurance ... 100 100 100 100
Benefits based on fixed Fixed duration .. 87 94 89 75
percent of earnings .. 89 95 94 76 Less than 3 months 4 4 5 3
Benefits subject to disability 3 months .. 7 19 7 12
income limit . 28 32 28 23 4-5 months 4 4 5 2
Duration of benefits varies 6 months .. 56 60 57 50
by age .... ve 75 7 75 74 Greater than 6 months 7 8° 6 9
With coverage for mental Expiration of short-term
illness ..... 86 87 84 86 disability benefits 1 5 9 22
With survivor benefits 26 2} 2] 25 Other .. () |) | @) 1
With required employe: Not determinable 1 1 1 2
CONMDUHION ees] 27 31 28 20
- Average?
Average fixed duration (in
months) ... 5.7 5.7 5.6 6.0
* Length of time between onset of disability and beginning of long-term
disabitty insurance payments.
2 Less than 0.5 percent.
The average Is presented for all covered workers; averages exclude
‘workers without the plan provision.
NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.
35



Table 194. 401(k) salary reduction plans: Loan avallabiility,
fulltime employees, medium and large private establishments,

Table 195. 401(k) salary reduction plans: Methods of
. distribution, full-time employees, medium and large private
establishments, 1993

1993
- Profes- a Profes-
sional, . jlue- sional, ‘, Blue-
techni: |“°F24! cotar techni. [PeM@l) contr
an [err | and | ond an [techn Vand | Sod
Loan availabilty orm + and | S05 | service Methods of distibutiont | $0". | and sales | service
Ply" | related em- OY" | related em-
ees [Tem | POY | pioy- eos [TOE ploy | Sloy-
ploy | °° | ees ploy: | °° | ees
ees ees
Number (in thousands) with Number (in thousands) with
401(K) salary reduction - 401(k) salary reduction
.| 10,123] 3,631] 3,137] 3,455 plans | 10,123] 3,531| 3,137} 3,455
Percent Percent
Total with 401(k) salary Total with 401(k) salary
reduction plans ...w. 100 | 100 | 100 | 100 reduction plans ... 100 | 100 | 100 | 100
43 | 42] 41] 44 Lump sum os | 97 | 98 | 98
Any reason so | 40 | a7 | 41 Annuity 34 | 35 | 31 | 35
Hardship reasons only? . 3 2 4 3 Installments 49 | 49 | 46 | 53
Loans not permitted | 56 | 56} 57 | 55 Other... 1 2 1] (2)
Not determinable 1 2 2 1 Not determinable (?) a} () ] @)

1 Hardship reasons may include death or iliness of a family member,
education expenses, sudden uninsured losses, or purchase of a primary

residence.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

154

1 Sums of individual items may exceed totals because plans frequently
permit more than one distribution option.

2 Less than 0.5 percent.

NOTE: Where applicable, dash indicates no employees in this.category.



;
{
f

Table 68. Non-heaith maintenance organizations: Maximum benefit
provisions, full-time employees, medium and large private establishments,

1993 :
Profes-
sional, | Clerical | Blue:
All techni- and
Maximumt employees} cal and sales so
related | employees employees
employees ploy
Number (in thousands) with
non-HMO plans ..... 18,179 4,709) 4,268 9,202
Percent
Total with non-HMO plans 100 100 100 100
With maximum limits 80 76 74 83
if 75 73 70 78
(7) 1 (7) (2)
(*) 3 3 (7)
1 (2) (?) 1
(?) (?) 3 (?)
1 (2) (2) 1
1 (?) () 1
7 s 3 9
1 (7) (7) 1
1000 seeseeseseer 12 8 7 15
$500,001 - $999,999 .... 1 1 2 1
$1,000,000 .... 46 49 49 42
More than $1,000,000 .. 6 8 7 5
Annual or disability
maximum only 3 2 2 4
Both lifetime and ant -
or disability
maximums .. 2 1 2 2
Other maximum (?) @) (?) -
Without maximum fimits: 20 23 26 16
Not determinable .. (?) 1 - (?)
Average
Average lifetime maximum .......] $910,495] $990,763} $989,753] $839,035

1 Maximum described Is for each insured person. Where the maximurn differed for
employees ‘and dependents, the employee maximum was tabulated.
Less

than 0.5 percent.

3 The average is presented for all covered workers; averages exclude workers without the

plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals. Where
applicable, dash indicates no employees in this category.



Table 81. Non-health maintenance organizations: Limitations
on days of extended care facility coverage, full-time
employees, medium and large private establishments, 1993

Profes-
sional, Blue-
ay [technr |!) coer
em | S% | sales | 2nd

and service
Ploy: related ploy- em-

em- ploy-

Day limits

ploy- ees ees
ees
Number (in thousands) in |
non-HMO plans with day
limits on extended care .......] 9,997] 2,482] 2,423] 5,092
Percent

Total in non-HMO plans with
day limits on extended:care | 100 100 100 100

First dollar coverage’ for a
limited number of days

per confinement ... 16 14 9 19
2 4 1 2
2 1 1 2
@) 7] @) | @) | @)
3 3 2 3 |
(7) 11 (7) | (?)
8 5 5 12
alimited umber of days
Per confinement 45 44 48 44 -
2 1 1 3
7 16 20 16
3 4 3 3
12 13 14 10
1 4] () 1
9 9 9 | 10 i
First dotlar coverage! for a i
limited number of days
per year 5 6 5 4
100 days 1 | (?) 1 1
420 days 1 1 2 1
Other 3 4 3 2
Major medical coverag
@ limited number of days
per year 3B “4B 36 3
100 days .. 7 6 7 7
12 13 16 9
1] (?) | (?) 1
14 18 13 14
limited number of days
per lifetime .... 1 1 1 1
Major medical coverage> for
a limited number of days
per lifetime ...... 3 4 3 4

1 Includes plans in which all expenses were reimbursed for the full
‘semiprivate room rate, for a specified dollar amount, or for a limited or
Unlimited number of days.

2 Less than 0.5 percent.

3 Major medical limits are expressed only in terms of total benefits

payable under the plan, rather than for individual categories of care. Limits

“are set as deductibles, coinsurance percentages, and overall dollar limits on

plan benefits.
NOTE: Sum of individual items may be greater than the total because some

participants were in plans with more than one type of day limit. Where
applicable, dash indicates no employees in this catagory.

75

|


Employee Benefits in Medium and <&}
Large Private Establishment, 1993 :

U.S. Department of Labor
Bureau of Labor Statistics
November 1994

Bulletin 2456

OFFICE
HOURS
ree

DNovavan
Ractavell



Table 117. Life insurance: Summary of provisions, full-time
employees, medium and large private establishments, 1993

Profes-
sional, A Blue-
techni- Clerical collar
Ailem-| cal, | 2, | and
Item ploy- | and re- aed service
ees | fated | poy. | em
em- eee ploy-
ploy- ees
ees
Number (in thousands) with
basic fife insurance .| 26,175] 7,369} 6,724] 12,082
Percent
Total with basic life insurance ... 100 100 100
Multiple of eamings benefit 58 76 72 40
Dollar amount benefit ... 4 23 28 59
Benefits reduced for older
active workers 42 45 44 38
Retiree coverage available al 44 42 39
Supplemental coverage
available ... 61 72 68 si
‘Spouse coverage avail 59 64 65 52
Child coverage available .. 58 64 64 52
Required employee conti-
bution ...... 13 16} 12 Ww

NOTE: Where applicable, dash indicates no employees in this category.

101

Table 118. Life insurance: Method of determining basic
coverage, full-time employees, medium and large private
establishments, 1993

Profes-
sional, Blue-
techni | 272] cotar
cal, | sales and
Type ploy- andre-| “Grn. | Service
y- | tated ploy- | oTM
em- | ‘ges | Ploy
ploy- ees
ees
‘Number (in thousands) with
basic life insurance .... .| 26,175] 7,369] 6,724} 12,082
Percent
Tota! with basic lite insurance ...' 100 100 100
Multiple of eamings
benefit .... eee 76 72 40
Fixed multiple of
eamings? .. 7 n 40
Muttiple varies
CAMINGS were a) | eye)
Multiple varies by
SRIVICE -ssrseereeee (‘) 14)
Dollar amount benefit ... 23 28 59
Flat dollar amount 20 25 51
Dollar amount =~
varies by
eamings ... 2 2 6
Dollar amount
varies by
service 2 4 1
Other... 1 1 ()
Not determinable (’) - @)

1 Less than 0.5 percent.
2 Includes participants in plans in

which insurance equaled a multiple of
eamings, plus of minus a specified amount.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.



aS

Table A.2, Number of establishments and part-time occupational quotes studied and estimated number of part-time workers
within scope of survey, medium and large private establishments, United States, 1993

Number of occupational quotes studied?
‘vision’ Number of establish-
Industry division’ ments studied Total Professional, techn! Clerical and sal Biue-collar and
cal, and related and sales service

All industries 2,825 1,671 315 720 636
Manufacturing ... 500 31 1 16 14
Nonmanufacturing 1,825 1,640 314 704 622

Mining 14 - - - -
Constructio 52 4 - 2 2

‘Transportation, communications,
electric, gas, and sanitary services 279 44 3 14 ar
79 6 - 1 5
. 260 654 3 421 230
Finance, insurance, and real estate .| 397 | 130 1 103 16
Services 744 802 297 163 342
Estimated number of full-time workers within: scope of survey
All industries .. 5,564,940 726,678 2,221,163 2,617,100
157,084 3,184 71,089 82,812
5,407,856 723,494 2,150,074 2,534,288
12,536 - 9,792 2744
electric, gas, and sanitary services 167,199 3,153 51,172 112,874
ci 20,843 - 3,678 17,166
2,381,013 7116 1,395,185 978,712
Finance, insurance, and real estate . 244,794 6557 200,580 37,657
Services .... i 2,581,471 706,668 489,666 1,885,137
=|
* As defined in the 1987 edition of the Standard industrial Classifica they provided data for all items studied. See the section on survey re-

tion Manwal, US. Office of Management and Budget. Industry data are sponse.

shown for informational purposes only and are subject to larger than nor-

mal sample error. See section on reliability of estimates. NOTE: Because of rounding, sums of individual items may not equal
? These figures refer to all respondents to the survey, whether or not totals. Where applicable, dash indicates no employees in this category.

175



Table 147. Defined benefit plans: Average replacement rates for specified final earnings and years of service at selected
ages,’ full-time employees, medium and large private establishments, 1993

. Years of plan participation?
Final annual eamings
10 15 20 2 30 35 40
Pension only-Age 55
84 124 17.0 217 27.0 30.9 34.4
6.9 10.8 15.0 19.1 23.6 26.8 29.5
6.6 103 14.4 18.0 22.2 25.4 27.7
64 10.0 13.5 17.4 21.5 24.3 26.7
63 98 13.3 17.0 21.0 23.8 26.2
63 99 13.3 17.0 21.0 23.8 26.1
Pension only--Age 52
W147 17.3 23.3 29.7 35.5 40.1 44.0
10.3 15.3 20.4 25.8 30.8 345 37.7
9.7 14.5 19.1 24.1 28.8 32.3 35.2
2.4 14.0 18.4 23.3 27.8 31.3 33.9
9.2 13.7 18.0 227 27.3 30.6 33.2
9.2 13.7 18.4 22.7 27.3 30.6 33.1
Pension plus Social SecurityS~-Age 62
31.3 42.6 52.1 62.0 712 79.3 83.2
26.2 46 43.2 52.1 60.5 678 70.9
23.0 313 “39.4 473 54.6 60.4 63.3
21.4 29.3 36.6 43.7 49.8 54.2 56.9
20.2 27.6 34.3 40.5 45.9 50.0 52.6
18.5 25.5 31.8 37.8 43.0 47.0 49.6
Pension only--Age 65
12.2 18.5 24.5 30.9 36.8 41.6 45.6
10.7 16.2 214 26.9 32.0 35.9 39.1
10.1 15.3 20.1 253 30.0 33.7 36.7
98 14.8 19.4 245 29.2 32.8 35.6
96 14.4 19.0 24.0 28.8 32.3 wg
96 145 19.2 242 28.9 32.3 49
Pension plus Social Security--Age 65
39.3 52.1 62.8 73.7 84.2 92.8 96.8
31.9 42.1 51.9 62.0 717 79.3 82.6
28.1 37.9 473 56.3 64.6 70.4 73.4
25.9 35.4 43.8 51.9 58.1 62.8 65.7
24.5 33.2 40.9 476 53.3 57.7 60.4
22.2 30.4 37.7 4441 49.7 53.9 56.6

1 Replacement rate is defined as a pension benefit divided by
eamings in the final year of work. The maximum pension available 10
an employes, reduced for early retirement when applicable, was
calculated under each pension plan using the eamings and service
assumptions shown.

These calculations assume employees retired on January 1,
1993, and final earings are for 1992. Eamings histories, necessary for
applying the pension formulas, were constructed for each final earings
level based on data provided by the Social Security Administration.

For pension formulas that are integrated with Social Security and
for computation of Social Security benefits, the worker is assumed to
have retired at age 62 or age 65 after having paid into Social Security

124

for the same number of years as years of participation used for pension
calculations. The 20-percent reduction in Social Security benefits
received at age 62 is reflected in the combined pension and Social
Security replacement rates shown for employees retiring at age 62.
Full Social Security benefits are paid at age 65. Computations exclude
participants in cash-account pension plans or plans with benefits based
‘on gareer contributions.

2 Time spent satisfying service requirements for plan participation
was excluded from the calculation of replacement rates, unless the
pension plan specified that such time was to be included in beriefit

ns.
S' Excludes benefits for spouses and other dependents.



‘Table 190. 401(k) salary reduction plans: Investment choices, full-time employees, medium and large private

establishments, 1993

Investment choices for
employer contributions

All employees

Professional,
technical, and
related employees:

Clerical and sales
employees

Blue-collar and
service employees

Employes
eontribu-

tions

tlons

Employer
contribu-

tions

Employee!
contribu-

tions

Employer
contribu-

tions

Employee
contribu- | contrib

tions

Employer

u-
tions

Employee| Employer
contribu- | contribu-

tions

Number (in thousands) with
401(k) salary reduction
plans ..... seen

Total with 401(k) salary
reduction plans

Employee permitted to
choose investments
Two choices ..
Three choices
Four choices
Five choices .
Six choices .......
Seven or more choices
Employee not permitted t
choose investments
Not determinable |

a
3

oo ~ad8808

NOTE: Because of rounding, sums of individual items may not equal
totals. Where applicable, dash indicates no employees in this category.



Contents

Page

Chapter 1. Results of the 1993 survey ...... 1
Work schedules, paid time off, and parental leave 1
Disability benefits .... 2
Medical, dental, and vision care 2
Life insurance ....... 3
Defined benefit and defined contribution plans . 4
Flexible benefits plans and reimbursement accounts .. 5
Other benefits .. 6
Plan administration .. 6
Chapter 2. Work schedules, paid time off, and parental leave 14
Work schedules 14
Paid time off... 4
Paid lunch and rest periods 14
Paid holidays ... 14
Paid vacations .. 14
Paid personal leave .... 15
Paid funeral leave, jury-duty leave, and military leave 15
Parental leave 15
Chapter 3. Disability benefits 23
Paid sick leave ...... 23
Sickness and accident insurance 24
Long-term disability insurance .. 24
Chapter 4. Medical, dental, and vision care. 40
Medical care ...... 40
Employee contributions .. 40
Type of medical care plans 40
Fee-for-service plans 41
Preferred provider organizations .. 41
Health maintenance organizations 42
Cost containment 42
Hospital coverage 42
Alternatives to hospitalization 43
Surgical coverage. 43
Outpatient physicians visits and diagnostic services 44
Prescription drug benefits .... 44
Mental health coverage and substance abuse treatment 44
Other medical benefits .. 45
Participation requirements 45
Pre-existing condition limitation . 45
Coverage for retired workers 46
Dental care ..... 46



Table 119. Life insurance: Fiat doliar benefit amounts, full-time employees,
medium and farge private establishments, 1993

Profes-
al sional, | Clerical | Blue-colar
Amount of insurance technical, | and sales ‘
employees | ang related | employees employes
employees P|
Number (in thousands) with
dollar amount of basic life
insurance .. an 10,7271 1,727 1,857 7,143
Percent
Total with dollar amount of
basic life insurance 100 100 100 100
Flat dollar amount .. 87 83 90 87
Less than $5,000 5 3 8 5
$5,000 - $9,999 22 16 20 24
$10,000 - $14,999 30 29 34 29
$15,000 - $19,999 9 7 5 10
$20,000 - $24,999 9g 6 9 9
$25,000 - $29,999 6 7 6 5
$30,000 - $49,999 4 5 5 3
$50,000 - $99,999 3 8 3 1
$100,000 and over (4) 2 1 ()
Dollar amount varies by
eamings ..... a 10 10 7 ahi
Dollar amount varies by
service 3 7 3 ~ 2
Average?
Average fiat dollar amount of
basic life insurance ............] $15,481 $25,665 | $16,241 $12,914

1 Less than 0.5 percent.

‘The average is presented for all covered workers;averages exclude workers without the

plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals. Where
applicable, dash indicates no employees in this category.

102


ee

Chapter 3. Disability Benefits

This chapter discusses three types of disability
benefits: Sick leave, sickness and accident insurance,
and long-term disability insurance. Paid sick leave and
sickness and accident insurance protect workers against
loss of income during temporary absences from work
due to illness or accident. During more extended
periods of disability, workers' incomes may be
continued through long-term disability insurance plans.
(See tables at end of this chapter.) Among the
disability benefit provisions included within the

Employee Benefits Survey are:

« Waiting periods before benefits begin,
e Amount of benefits,

e Duration of benefits,

¢ Plan eligibility requirements.

Short-term disability protection, through sick leave,
sickness and accident insurance, or both, is provided to
a large majority of full-time employees in medium and
large establishments (table 24). Sick leave usually
provides 100 percent of the worker's normal earnings,
whereas sickness and accident insurance usually
replaces 50 to 67 percent of pay. (Some sick leave
plans may provide days off at partial pay in addition to
those at full pay. All sick leave tables shown at the end
of this chapter éxclude days paid at partial pay.)

Sick leave is provided to most full-time employees
and-sickness and accident insurance to a significant but
smaller number of full-time workers. Some workers
have both sick leave and sickness and accident
insurance, with the two benefits coordinated.
Coordination can take two forms: Starting insurance
benefits after sick leave pay has ended, or paying both
benefits concurrently. When payments are made from
both sources, sick leave pay is reduced.by the amount
of the insurance benefits so that the total benefit does
not exceed full salary. Regardless of the method of
coordination, employers offering sickness and accident
insurance tend to allow fewer sick leave days than
those without such insurance.

Long-term disability insurance (LTD), which
typically pays 60 percent of earnings, is also available
to many full-time employees in medium and large

23

establishments. LTD insurance payments usually begin
after 3 or 6 months of disability and continue until
Tetirement age or for a specified number of months,
depending on the worker's age at the time of disability.

Paid sick leave and LTD insurance are more
prevalent among white-collar workers, and sickness and
accident insurance is more common among blue-collar
workers.

Paid sick leave

Of the employees covered by paid sick leave plans,
most are allowed a fixed number of days, such as 13
days, per year (annual sick leave ‘plans). Other
participants receive sick leave benefits, for example, 30
days, for each illness (per disability sick leave plans).
Workers covered by both annual and per disability
benefits generally use annual sick leave for occasional
absences and per disability siék leave for longer
absences (tables 25-31).

Employees having annual sick leave plans can
usually expect an increase in the number of days
granted as their length of service increases, such as 12
days after 1 year of service, 17 days after 5 years, and
22 days after 10 years. Nearly all workers covered by
annual plans receive full pay while they are sick and
are not subject to a waiting period before benefits
begin.

Annual sick leave plans also allow many employees
to carry over and accumulate unused sick leave from
year to year (cumulative plans). Most cumulative plans
have limits on the amount of sick leave, often 30 days,
that can be carried over to the next year. Other
cumulative plans allow workers to accumulate an
unlimited amount of sick leave. Noncumulative plans
commonly provide a greater number of days per year
than cumulative plans. This difference increases at
longer years of service.

Benefits provided from a per-disability sick leave
plan frequently include some days off at full pay and
some at partial pay, for example, 50 percent. Total days
available for each disability and the mix of full and
partial pay days often becomes more generous as
service increases. The following is an example of a per-
disability sick leave plan:


Table 94. Alcohol abuse treatment benefits: Limits on
coverage, full-time employees, medium and large private
establishments, 1993

Table 95. Drug abuse treatment benefits: Limits on coverage,
full-time employees, medium and large private establishments,
1993

Profes- Profes- Blue

sional, si Blue- sions -

techni |°! g | collar collar

- Allem-| cal, | 2ic, | and Lo Ail em- and
Coverage limitation | ploy- |andre- S | service Coverage limitation ploy- service

ees | lated ploy- em- ees em-

em- | EX | ploy- ploy-

ploy- ees ees

ees

Inpatient detoxification’ Inpatient detoxification’

Total 100 100 100 100 Total 100 100 100 100
No fimits 30 34 34 26 No limits 31 35 35 28
Subject to separate limits? .. 70 66 66 74 Subject to separate limit: 69 65 65 72

50 47 47 53 Days 48 46 46 51
36 32 38 38 Dollars 36 32 37 38
12 ab 14 12 Coinsurance .. 12 "1 14 13

3 3 3 Copayment 3 4 3 3

100 100 400 100
90 87 87 92

46 42 48 47
16 15 7 16

Outpatient rehabilitation?
Total

100 100 100 100

No limits u 15 13 9
Subject to separate so | 95 | 87 | of
Days 47 46 46 48
Dollars ... 55 51 54 57
Coinsurance 37 32 36 40
Copayment 9 9 Rl 8

Inpatient rehabilitation?

100 100 100 100

No limits 10 12 13 8
Subject to separate limit go | 88 | 87 | 92
Days 65 63 64 67
Dollars 47 42 49 48
Coinsurance . 16 16 18 16
Copayment 5 6 5 4
Outpatient rehabilitation
Total 100 100 100 100

No limits
Subject to separate {imi
Dollars

Coinsurance
Copayment

11 14 12 9
89 86 88 91
46 46 47 46
55 52 54 58
38 33 36 al

9 Q 1 9

* Detoxification is the systematic use of medication and other methods
under medical supervision to reduce or eliminate the effects of substance
abuse.

2 ‘Separate limitations indicate that alcohol abuse treatment benefits are
‘more restrictive than benefits for other treatments. For example, if a plan
limits inpatient rehabilitation care to 30 days per year, but the limit on
inpatient care for any other type of iliness is greater than 30 days per year,
the plan contains separate limits. The total is less than the sum of the
individual items, because many plans had more than one type of limitation,

> Rehabilitation is designed to alter the abusive behavior in patients once
thay are free of acute physical and mental complications.

Includes treatment in one or more of the following: outpatient
department of a hospital, residential treatment center, organized outpatient
clinic, day-night treatment center, or doctor's office. If benefits differed by
location of treatment, the location offering the most beneficial coverage was
tabulated.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

82

* Detoxification is the systematic use of medication and other methods
Under medical supervision to reduce or eliminate the effects of substance

iso.

2 Separate limitations indicate that drug abuse treatment benefits are
mare restrictive than benefits for other treatments. For example, if a plan
limits inpatient rehabilitation care to 30 days per year, but the limit on
inpatient care tor any other type of iliness is greater than 30 days per year,
the pian contains separate limits. The total is less than the sum of the
ingiyidual items, because many plans had more than one type of limitation.

> Rehabilitation is designed to alter the abusive behavior in patients once
they are free of acute physical and mental complications.

Includes treatment in one or more of the following: outpatient
department of a hospital, residential treatment center, organized outpatient
Giinic, day-night treatment center, or doctor's office. {i benefits differed by
location of treatment, the lecation offering the most benaidal coverage Was

ed.

NOTE: Because of rounding, sums of individual items may not equa! totals.
Where applicable, dash indicates no employees in this category.


Table 84. Outpatient prescription drug benefits: Summary of
coverage, full-time employees, medium and farge private

establishments, 1993
Profes-
sional, 5 Blue-
techni- Clerical collar
Allem-| cal, sales and
Provision ploy- |and re- ‘em- service
ees | fated | oy. | em
em- eee ploy-
Ploy- ees
ees
Number of employees (in
thousands) with outpatient
prescription drug coverage | 23,118] 6,408] 5,728] 10,982
Percent
Total with outpatient
prescription drug
coverage .. 100 | 100 | 100 | 100
Coverage for brand name
drugs ... g99 | 99 | 100 | 99
Higher reimbursement for
generic drugs .... ase 25 25 27 25
Coverage for mail order drugs’ | 25 24 | 26 25
Higher reimbursement for
prescriptions filled at
selected pharmacies .... 18 19 17 18

1 Programs that provide drugs for maintenance purposes, that is, drugs

required on a continuous basis.

NOTE: Sum of individual items may be greater than the total because some
participants were in plans with more than one type of coverage. Where
applicable,

, dash indicates no employees in this category.

Table 85. Outpatient prescription drug benefits: Brand name

drug provisions in non-health maintenance organization plans,
fult-time emptoyees, medium and large private establishments,

1993
Profes-
sional, - Blue-
techni | etcal) cotar
Allem-j cal, ale and
Type of coverage ploy- | and re- em- service
ees | lated | 1, em-
em- bale ploy-
ploy- ees
ees
Number of employees (in
thousands) in non-HMO
plans with outpatient brand
name prescription drug
coverage .. ..| 17,792} 4,637] 4,224], 8,930
Percent
Total in non-HMO plans
with outpatient brand
name prescription drug
coverage .... 100 100 100
Covered im full .esssssessscssesecere 1 ty) 1
Subject to the major medical
limits of plan ..... 70 73 70 68
Subject to copayment per
27 27 29 27
1 1 1 2
1 1 1 1
) = (") 1
4 3 2 6
TMP, e
1 1 1 1 a!
,,C) - ©)
8 8 9 7
2 2 2 2
1/1) 1 2
2 2 4 2
4 § § 3
1 1 2 1
1 1 1 1
4 4 5 3
to] wz] aw] 9
1 1 1 1
5 3 5 7

1 Less than 0.5 percent.



Final Straight-  Joint-and-

annual life survivor Survivor

salary annuity annuity annuity
Age 55

$15,000 27.0 24.0 12.2

$35,000 22.2 19.7 99

$55,000 21.0 18.7 9.4
Age 62

$15,000 35.5 31.9 16.4

$35,000 28.8 25.9 13.2

$55,000 27.3 24.5 12.4
Age 65

$15,000 36.8 33.1 17.0

$35,000 30.0 27.0 13.8

$55,000 28.8 25.8 13.1

Defined contribution plans specify employer and
employee contributions but do not guarantee future
benefits. Such plans can be vehicles for financing
retirement benefits if funds can not be withdrawn
easily, or they may be shorter term capital
accumulation plans if periodic withdrawals are allowed.
Defined contribution plans were available to nearly
one-half of the full-time workers and were more
prevalent among white-collar than blue-collar workers.
(See chapter 7.)

The most frequently observed types of defined
contribution plans were savings and thrift plans and
deferred profit-sharing plans. Twenty-nine percent of
full-time workers were enrolled in a savings and thrift
plan, while 13 percent of full-time workers were
covered by a deferred profit-sharing plan.

Major highlights include:

¢ The most common employer miatching rate in a -

savings and thrift plan was 50 percent up to the
first 6 percent of earnings saved by the employee;

© Nine out of 10 participants in savings and thrift
plans could choose how they wanted their own
contributions invested; 6 of 10 could choose how
they wanted employer contributions invested;

© Prior to normal payout at retirement, disability, or
termination of employment, nearly one-half of the
participants in savings and thrift plans were
allowed to withdraw all or a portion of employer
contributions;

« Nearly one-half of participants in savings and thrift
plans were allowed to borrow from their accounts,
usually at any time;

« Two-fifths of the participants covered by deferred
profit-sharing plans were in plans that based
employer contributions on a specific formula; the
remainder were in plans with discretionary
employer contributions;

e Four-fifths of savings and thrift participants had to
meet a minimum age or service requirement before
beginning to accumulate benefits, and just over
nine-tenths of deferred profit-sharing plan
participants had to meet such requirements; most
plans required a minimum amount of service,
commonly 1 year, but did not require an employee
to be a designated minimum age.

A large majority of employees enrolled in one or
more defined contribution plans were allowed to choose
between receiving currently taxable income or
deferring taxation by placing the money in a retirement
account. These cash or deferred arrangements,
popularly known as 401(k) plans, usually took the form
of salary reduction plans with employer contributions.
Key findings include:

e Nearly all participants in savings and thrift plans are
covered by 401(k) plan features;

¢ 9 of 10 employees participating in. 401(k) salary
reduction plans could make pretax contributions,
commonly 10, 15, and 16 percent of earnings;
maximum pretax contributions averaged 12.5
percent;

One-half of employees in 401(k) salary reduction
plans were allowed to transfer or "rollover"
distributions received from a plan of a former
employer.

Flexible benefits plans and reimbursement
accounts

Employees may receive benefits independently or
as part of a package, complete with options, known as a
flexible-benefits or cafeteria plan. (See chapter 8.)
Among full-time employees, 12 percent had flexible-
benefits plans, and 52 percent were covered by
employer-sponsored reimbursement accounts.

Reimbursement accounts allow employees to use
pretax dollars to pay for certain expenses not covered
by benefit plans. Included in these expenses are
premiums for insurance benefits, typically health care
benefits. Such plans are frequently referred to as
premium conversion plans. Forty-seven percent of full-
time employees were covered by premium conversion
plans. This included plans designed just for premium -



This is more common for restorative services, such as
fillings, crowns, and endodontics, than for preventive
services. In this type of arrangement, each procedure is
subject to a specified maximum dollar amount that the
plan will pay to the participant or the dentist.
Orthodontic care is rarely ‘subject to this type of
schedule.

A few plans may require a copayment, after which
benefits are paid in full. Copayments, such as $5 or $10
per procedure, usually apply to preventive care, though
higher copayments are often associated with major
dental services.

Finally, payments based on incentive schedules are
rare. Under such arrangements, ‘the percent of dental
expenses paid by the plan increases each year if the
participant regularly gets examinations by a dentist. For
example, a plan may pay 70 percent of all dental
charges in the first year that services are received.
Services in the next year are paid at 80 percent and, in
the following year, 90 percent, provided the patient
receives.a dental examination each year. Should a
patient not receive dental care in a given year, future
charges would revert to 70 percent.

Frequently, plans specify a deductible amount
before any dental benefits are paid by the plan.
Deductibles, such as $25 and $50 per year (tables 110-
111), often apply. However, some plans require the
participant to pay a one-time deductible (usually $50)
rather than a yearly deductible..When a deductible is
specified, it frequently applies to restorative services.
Deductibles are less common for preventive services
and orthodontia. .

Most plans limit the amount of payment each year
by specifying an annual maximum benefit, for example,
$1,000 per year (tables 112-113). Benefits for
orthodontic services are often subject to a separate
lifetime maximum, commonly ranging between $1,000
and $1,500.!9

19 For more details on dental care benefits, see Rita S. Jain,
"Employer-Sponsored Dental Insurance Eases The Pain,” Monthly
Labor Review, October 1988, pp. 18-23.

47

As a cost containment technique, most dental
participants are in plans that require participants to
obtain authorization from the plan before. undergoing
expensive treatment (table 114). Commonly,
procedures costing $200 or more are subject to advance
authorization.

Vision Care ,

Vision care coverage, when available, is typically
provided through a fee-for-service plan. Vision benefits
may also be available through an HMO or a PPO,
which restrict the providers available to participants
(table 115). .

Vision benefits cover eyeglasses, and, with few
exceptions, eye examinations (table 116). Most vision
care participants are also covered for contact lenses. To
be included in the survey, contact lenses must be
available for cosmetic reasons. Coverage limited to
medically necessary contact lenses is not included in
the survey.

Participants with vision care coverage generally
have limits placed on their benefits. Typically, vision
care participants have coverage for eyeglasses and
contact lenses subject to a scheduled dollar allowance
per benefit. Eye examinations are commonly subject to
either a dollar maximum per visit, or the participant is
Tequired to pay a small copayment per visit. For
eyeware, other plans require an employee copayment or
offer a discount on the purchase of eyeglasses and
contact lenses at specified locations. -

Some vision care participants have eye examina-
tions and eyeglasses paid in full; a few have contact
lenses covered in full.?°

20 For more details on vision care benefits, see Rita S. Jain,
“Employer-Sponsored Vision Care Brought Into Focus," Monthly
Labor Review, September 1988, pp. 19-23.



Table 203, Other benefits: Eligibility for specified benefits,
full-time employees in service-producing industries, medium
and large private establishments, 1993

(In percent)

Profes-
sional,
techni-
cal, and
related
empioy-
ees

Income continuation plans:
Severance pay . 7
‘Supplemental unemployment

benefits

Family benefits:
Employer assistance for chitd

Miscellaneous benefits:
Employer-subsidized recreation
facilities .. :
Job-related travel accident

* Less than 0.5 percent

164


ST

Table 107. Dental care benefits: Fee arrangement and
financial intermediary, full-time employees, medium and large
private establishments, 1993

Table 107. Dental care benefits: Fee arrangement and
financial intermediary, full-time employees, medium and large
private establishments, 1993 — Continued

Profes- a al, Blue:
sional, Biue- sional, - =
ay | techni [Cletcaly conar ay {techni | Clerical collar
cal,
Fee arrangement and financial! em- | S | sates | and Fee arrangement and financial! em- | on4 | sales | or,
i. and service i Noy- em-
ary Ploy: | related} em | Erne intermediary POY” | related em.
ees [ome | PIO | oy 965 Jom: | POY | ploy-
ploy} °°5 | ‘ees Ploy- ons
ees ees
Percent
Number (in thousands) with
dental care .... 4,620] 7,851
at a a 4 &
Total with dental care ... 100 | 100 | 100 | 100 Oper ery eo
2 3 2 1
Traditional fee-for-service’ 87 87 85 88 (4) 1 (4) | 4) 1 4)
52] 53] 50] 53
4]°3 3 4
20 7 19 | 22 (*) - : (4)
5 6 5 5 1 1 2 (4)
TP 2] lt) ops Ges Go RG)
4) 1) fy -
9 10 10 7
4 Less than 0.5 percent.
5 These are plans where the financing comes from two different kinds of
6 5 7 6 financial intermediaries. For example, an establishment contracts with Blue
2 2 4 2 Cross/Blue Shield to pay part of the benefits and a commercial company to
pay the other benefits,
6 of providers other than Blue Cross/Blue Shield.
2 a 2 2 7 A preferred provider organization (PPO) is a group of hospitals and
1 (*) (*) 1 dentists that contracts to provide comprehensive dental services. To
encourage tse of organization members, the dental care plan limits
) | 4) 1 4) - Teimbursement rates when particioants use nonmember services.
q q i 1 5 includes federally qualfied (those meeting standards of the Health
Maintenance Organization Act of 1973, as amended) and other HMO’s
delivering comprehensive health care on a prepayment rather than

1 ‘These plans pay for specific dental procedures as expenses ara

2 Includes plans that are financed on a pay-as-you-go basis, plans
financed through contributions to a trust fund established to pay benefits, and
plans operating their own faciities if at least partially financed by employer
Contributions. Includes plans that are administered by a commercial carrier

‘Administrative Services Only (ASO) contracts.
‘These organizations provide and finance all benefits, but are not
affiliated with an insurance company or Blue Cross/Blue Shield.

foes

fee-for-service basis.

9 Includes exclusive Provider organizations, which are groups of hospitals
‘and dentists that contract to provide comprehensive dental services.
Participants are required to obtain services from members of the organization
in order to receive plan benefits.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

89



Appendix C. Availability of
Survey Data

The tables published in this bulletin present the
major findings of the Employee Benefits Survey of
medium and large private establishments. Survey data
are also available in research articles, special bulletins
and reports, short publications, and electronic media.

Articles based on Employee Benefits Survey data
are published periodically in the Bureau's Monthly
Labor Review and Compensation and Working
Conditions. The following is a list of recent articles:

Kymn, Christine. "AIDS Provisions in Health
Insurance, “Compensation and Working
Conditions," August.1994, pp. 4-7.

Bucci, Michael and Grant, Robert B. “Health
Insurance: Employer Offerings and Employee
Choices in Small Private Establishments,"
Compensation and Working Conditions, August
1994, pp. 1-3.

Foster, Ann C. “Employee benefits in the United
States, 1991-92," Compensation and . Working
Conditions, July 1994, pp. 1-6.

Foster, Ann C. “Portability of pension benefits
among jobs," Monthly Labor Review, July 1994, pp.
45-50.

Wiatrowski, William J. "On the Disparity Between
Private and Public Pensions," Monthly Labor
Review, April 1994, pp. 3-9.

Scofea, Laura A. "The Development and Growth of
Employer-Provided Health Insurance," Monthly
Labor Review, March 1994, pp. 3-10.

Graham, Avy D. “Coordinating Private Pension
Benefits with Social Security," Monthly Labor
Review, March 1994, pp. 35-38.

Wiatrowski, William J. "Employee Benefits for
Union and Nonunion Workers," Monthly Labor
Review, February 1994, pp. 34-37.

178

Williams, Arthur C. "Health Care Plans Covering
Outpatient X-ray and Lab Tests" Monthly Labor
Review, August 1993, pp. 44-47.

Thompson, Jerline. “Incidence and Type of Dis-
ability Insurance Benefits, 1958-90," Monthly Labor
Review, July 1993, pp. 51-53.

Bucci, Michael. “Lump-sum Benefits Available
from Savings and Thrift Plans," Monthly Labor
Review, June 1993, pp. 57-60.

Wiatrowski, William J. "Factors Affecting Retire-
ment Income," Monthly Labor Review, March 1993,
pp. 25-35. .
Williams, Dolphene F. "Employer-Provided Retiree
Health Care Benefits," Compensation and Working
Conditions, August 1993, pp. 1-4.

Special bulletins and reports focus on a single topic
or combine related themes. Recent publications
include:

Employee Benefits for Union and Nonunion
Workers, 1991-92, Summary 94-7, July 1994.

Health Insurance: Employer Offering and Employee
Choice in State and Local Governments, 1992,
Summary 94-12, September 1994.

Payouts from Employee Benefit Plans, Bulletin
2436, December 1993.

Employee Benefits in the United States, Summary
93-4, June 1993.

Employee Benefits in a Changing Economy: A BLS
Chartbook, Bulletin 2394, September 1992.

Substance Abuse Provisions in Employee Benefit
Plans, Bulletin 2412, August 1992.



sem

oe ah a pte

i
i

RTT

Table 202. Summary: Participation’ in selected employee benefit programs, full-time employees in service-producing

Industries, medium and targe private establishments, 1993
(In percent)

Profes- Protes-
sional, | cjoricai| BIVe sional, | rericai) Blue
techni |C8%84) cotiar techni- | 18%" collar
Allem-| cal, ‘and Allem-| cal, and
Benefit ployees| and re-|, S925 | sence Benefit ployees| and re- |, S465 | service
tated OTRO employ] lated |ONROY"lemploy-
lemptoy-| ees lemploy- ees
ees ees
Survivor benefits:
es | a5 | 91 | 86 || Lite insurance . as | 95] 90) 81
97 | 95} 98 | 96 || Accidental death and
29 | 31 | 34] 21 dismemberment es | 73| 63 | 64
6} 6 | 4 | (9}) Survivor income be 3; 3] 4] 1
63 | s3| 67] 69
s2 | 66 | 05 | 74 |Health care benefits:
o7 | | ot] 7
47 | 89 | 52] 30|} Medical care ve | e4| 7) 7%

‘Unpaid time off:

Matemity leave

Paternity leave 49} 49} 49 | 49
Disability benefits:

‘Short-term disability protection 86 89 89 81
Paid sick leave 7 | 96 | 2] 64
Sickness and 33 25 32 40

Long-term disability insurance ... 46] 66] s1] 22

58 60 88 56 [Retirement income benefits:

‘Dental care ..
Jon 27 27 25 30

76 82 76 72

All retirement? ..
Defined benefit .
Defined contribution

Savings and thrift

Deferred profit sharing 3} 2] wl 1
Employee stock ownership 3 3 4 3
Money purchase pension .. 9} 15 7 5

Cash or deferred arrangements:
‘With employer contributions ... ws | 41] 42) 22
No employer contributions ..... s| 1 6 6

"Participants are workers covered by a paid time off, insurance, re-
‘irement, of capital accumulation plan. Employees subject toa minimum
service requirement before they are eligible for benefit coverage are
counted as participants even if they have not met the requirement at the
time of the survey. If employees are required to pay part of the cost of
a benefit, only those who elect the coverage and pay their share are

163

‘counted as participants. Senefits for which the employee must pay the
full premium are outside the scope of the survey. Only current employ-
ees are counted as participants; retirees are excluded.

® Includes defined benefit pension plans and defined contribution re-
tirement plans. The total is less than the sum of the individual items be-
cause many employees participated in both types of pians.



Table 70. Medical care benefits: Average major medical provisions,
full-time employees, medium and large private establishments, 1993

Profes-
sional, a Blue-
" Clerical
All technical, collar and
Average! employees and andsales service
related Ploy employees
employees
Annual deductible?
Individual $218 $238 $231 $203
Family 535 563 566 503
Annual! out-of-pocket expense
maximut
Individual ane 1,319 1,288 1,311 1,339

Family 2,642 2,633 2,692 2,620

Lifetime maximums ... 910,495} 990,763] 989,753] 839,035

1 ‘The average is presented for all covered workers; averages exclude workers without the
plan provision.

2 "The deductible is the amount of covered expenses that an individual or family must pay
before any charges are paid by the medical care plan. Deductibles that apply separately toa
specific category of expense, such as a deductible for each hospital admission, were excluded
from this tabulation.

3 The out-of-pocket expense maximum is the amount an individual or family must pay
before the pian will pay 100 percent of additional charges. Deductible amounts were excluded
from computation of the out-of-pocket dollar limits. Usually, out-of-pocket limits were specified
on an annual basis. Charges for certain services, such as mental health care, may not be
counted toward the out-of-pocket maximum.

4 The maximum is the total emount of expenses that the plan will pay. Maximum
described Is for each insured person. Where the maximum differed for employees and
dependents, the employee maximum was tabulated.

68



Table 28. Paid annual sick leave:’ Percent of full-time

employees by unused sick leave policy and carryover

Provisions, medium and large private establishments, 1993

Table 29. Paid annual sick leave:' Average number of days
at full pay for full-time employees by accumulation policy,
medium and large private establishments, 1993

Profes- Profes-
sional, | Clerical |Bue-col- Blue-col-
, ' techni | and | tar and lar and
Uenssed sick leave policy and Fovess [eal and] sales | service Sick leave policy avem service
carryover provis ees | related | employ- | employ- Ployees employ-
empioy-| ees | ees ees
ees
Unused sick feave policy Paid annual sick leave days by
minimum length-of-service
Total with paid annual sick requirement*
leave 100 | 100 | 100 | 100
After 1 year of service
ao | 55 | 49 | 42 Cumulative plan o1| 101] 87 | 82
8 2 5 | 17 Noncumulative pian wee | 255 | 139 | 127
nf] ou 9 | 12
a2 | a2 | 35 | 28 After 3 years of service
Data not available 01 6 ro) 1 Cumulative pian o4| 106] 901. 84
Noncumulative pian 220} 334 | 201 | 156
Carryover provisions
Alter 5 years of service
Total with paid annual sick Cumulative plan oe | 12] 94] 27
leave ... 100 | 100 | 100 Noncumulative plan 277 | 401 | 278} 189
Unlimited accumulation w} a} 1] 1 After 10 years of service
Cumulative plan... 107 | 125] 105 | 90
Limit on total number of days Noncumulative pian 334} 477 | 951 | 218
accumulated e: | ve | ot | a4
After 15 years of service
Under 10 days 3 2 3 5 Cumulative plan 3 | 13] 12] 92
6 4 5 9 Noncumulative 376 9 | 407 | 243
3 2 4 4
3 1 3 4 After 20 years of service
5 3 9 3 ‘Cumulative plan ... 15 13.5 11.5, 94
2 2 3 2 Noncumulative plan ato | 562 | 447 | 272
9) iv) 1) 9)
10 e] mon After 25 years of service” -
3 3 3 5 Cumulative pian 11.6 13.5 15 95
1 1 1 1 Noncumulative pian 440 | 611 | 476 | 288
9 | 10 7/4
3 4 2 3 Data not available oO oO oO oO
5 6 5 3
3 é 3 i * Paid sick leave plans with a specified number of days available each
year.
2 tl ei Ft + Employees are either granted a specific number of days after comple-
; } , 3 tion of the indicated length of service, or accrue days during the next 12-
3 4 3 2 month period. The total number of days are assumed available for use
é 3 ; 3 immediately upon completion of the described length-of-service interval.
8 : 7 3 rhe average (mean) was virtually the same at longer years ot service.
« Less than 0.5 percent.
is) 6 a io) NOTE: Computation of average excluded days paid at patal pay and
Data not available . 1 1 110 workers with only partial pay days or zero days of sick leave.

* Paid sick eave plans with a specified number of days available each

year.
? Less than 0.5 percent.

* Includes carryover provisions that vary by length of service.

NOTE: Because of rounding, sums of individual items may not equal to-

tals. Where applicable, dash indicates no employees in this category.

29



TT |

Table A.1, Number of establishments and full-time occupational quotes studied and estimated number of full-time workers
within scope of survey, medium and large private establishments, United States, 1993

Number of occupational quotes studied”
7 Number of establish-
Industry division ments studied Professional, techni- ; Blue-collar and
2 Total ea ea icted | Clerical and sales colar
Al industries 2325 11,341 3,580 3,674 4,187
Manufacturing 500 2,768 601 342 4,825
Nonmanufacturing 1,825 8573 2978 3,282 2,962
Mining. 14 101 38 7 56
Construction 52 243 v 43 18 182
Transportation, communications,
electric, gas, and sanitary services 279 1,838 41s 497 626
Wholesale trade 73 380 60 451 159
Retail trade 260 806 105 450 251
Finance, insurance, and real estate 307 2317 879 4,405 83
Services. a 744 3178 1,468 704 4,005
Estimated number of fulltime workers within scope of survey

28,728,207 7,745,345 7,339,191 19,643,670

10,540,772 2,051,052 4,283,228 7,206,482

18,187,435 5,694,203 6,055,964 6,437,178

209,748 113,524 18,158 168,064

624,872 93.249 37873 » 493,750

‘Transportation, communications,

electric, gas, and sanitary services 2,452,550 535,015 638,480 1,279,054
4.149,188 182,149 445,430 '515,609

21562,171 290,412 4,963,696 908,083

2,280,953 750,156 1,405,046 116,751

~ 8,823,956 3,720,787 2,147,282 2,955,887

7 As defined in the 1987 edition of the Standard industrial Classifica they provided data for all items studied. See the section on survey re~
tion Manual, U.S. Office of Management and Budget. industry data are sponse.
shown for informational purposes only and are subject to larger than nor-
mal sample error. See section on reliabiity of estimates. NOTE: Because of rounding, sums of individual items may not equal
® ‘These figures refer to all respondents to the survey, whether or not totals. Where applicable, dash indicates no employees in this category.

174


amount for services performed over a given time
period. Throughout this chapter, features found in
HMO's are contrasted with those found in non-HMO's
(both fee-for-service plans and PPO's).

HMO's, another arrangement that increased
enrollment during the 1980's, provide a prescribed set
of benefits to enrollees for a fixed payment. The HMO
thus bears the risk associated with delivering care.8 In
this survey, HMO's are classified as either group/staff,
with services provided in central facilities, or as
individual practice associations (IPA's), with providers
working from their own offices.

HMO's may be financed through independent
organizations, commercial insurers, or Blue Cross/Blue
Shield organizations. Independent organizations, such
as Kaiser Permanente, are most prevalent.

An alternative method of categorizing medical care
plans is to determine whether or not participants have a
“point-of-service" option (table 63). In such plans,
participants can use care providers within or outside a
given network, although reimbursement of expenses is
less if participants do not use network providers.
“Point-of-service” plans include all workers in PPO's
and a few workers in HMO's that have an open
enrollment option. Such an option allows patients to
receive services from a non-HMO provider at a lower
reimbursement than if care is received from the
designated HMO provider.

Fee-for-service plans

Fee-for-service plans allow patients to choose their
own providers and reimburse the patient or the provider
after services are received. Benefits are typically
subject to limitations that apply to many or all services,
including deductibles, coinsurances, catastrophic
expense limits, and plan maximums (tables 64-70).

Fee-for-service plans nearly always require a
participant to meet a specified deductible before
eligibility for benefit payments. This . approach is
designed to discourage unnecessary use of medical
services. Deductibles are typically specified as an
annual flat-dollar amount, such as $100 or $200 per
individual. In some plans, however, the deductible may
not apply to hospital room and board expenses.

When medical care plans cover an employee and
family, a family deductible is often specified in
addition to individual deductibles. There are two types
of family deductibles. In the first type, the deductible is
a flat-dollar amount for the year. To satisfy this
deductible, one family member must meet an individual
deductible, then another family member or a
combination of family members must meet the

8 For a more detailed discussion on HMO's, see Thomas P. Burke
and Rita S. Jain, “Trends in Emptoyer-Provided Health Care Benefits,"
Monthly Labor Review, February 1991, pp. 24-30.

41

remaining amount of the family deductible. In the
second type, the plan specifies the number of family
members required to meet individual deductibles. After
the required number of family members meet
individual deductibles, no additional individual
deductibles are required during that year. Most
commonly, family deductibles are equal to two or three
times the individual deductible.

Once the deductible has been met, a plan almost
always pays a specified percentage of covered medical
expenses, with the employee paying the remainder
(coinsurance). Plans often pay 80 percent of expenses;
other plans may pay 90 percent. Alternatively, plans
may have.a different coinsurance rate for certain
services, such as hospital room and board and
outpatient surgery. For these services, the plan usually
pays a higher percent of expenses, often 100 percent.

Most full-time participants in fee-for-service plans
have their coinsurance increased to 100 percent after
they pay out a specified dollar amount for covered
expenses (out-of-pocket expense limit), for example, an
annual out-of-pocket expense limit of $1,500 per
individual. Frequently, out-of-pocket expense limits are
also specified for family expenses. As used in this
bulletin, the term “out-of-pocket expense limit" refers
to the coinsurance amount paid by a plan participant. A
deductible, if required, is an additional expense the
participant must pay. ~ .

A plan's out-of-pocket expense limit protects the
participant from catastrophic medical expenses. For
example, assume a plan has a $250 annual deductible
and then pays 80 percent of medical expenses up to an
out-of-pocket expense limit of $2,000. Once the out-of-
pocket expense limit is reached, the plan's share of
expenses rises to 100 percent. In this case, the
employee would pay the first $250 of expenses and
$2,000 (20 percent) of the next $10,000 of expenses.
Covered expenses above that amount would be paid in
full by the plan.

Plans that both require an annual deductible and
place a limit on out-of-pocket expenses cover most
participants. The sum of these two items equals the
total that the plan requires an individual to pay for
covered medical expenses in a calendar year.

Fee-for-service plans often place a ceiling on the
amount payable by the plan, usually a lifetime
maximum. A maximum of $1 million is common.

Preferred provider organizations

Ina preferred provider organization, participants are
provided medical services at a higher level of
reimbursement if they receive care from designated
hospitals, physicians, laboratories, or dentists.
Individuals may choose their own provider, although
typically at a lower level of reimbursement.


Table 132. Spouse life insurance: Type and amount of
coverage, full-time employees, medium and large private

Table 133. Child life insurance: Type and amount of
coverage, full-time employees, medium and large private

establishments, 1993 establishments, 1993
Profes- Profes-
- st 5 Blue- sional, i Blue-
techni |e%<2 conar techni | rica cotiar
Allem-| cal, | 2, } and Allem-| cal, | S10, | and
‘Type and amount of coverage | ploy- jandre-| “2,” service Type and amount of coverage | ploy- | and re- ‘em. {service
ees | lated | iy. | em- . ees | lated joy- | om
em- eee ploy- em- ae ploy-
ploy- ees ploy- ees
ees ees
Number of employees (in Number of employees (in
thousands) with spouse life thousands) with child life
insurance cuverage .. ..| 15,853] 4,735) 4,340} 6,278 insurance coverage ..... .| 15,285] 4,717} 4,309] 6,258
Percent Percent
Total with spouse life Total with child life insurance
insurance coverage .. 100 100 400 100 coverage .... 100 100 100
Flat amount... 37 33 37 40 Flat amount .. 46 42 50 46
Less than $1,000 1 Cy 1 1 Less than $1,000 1 1 1 2
1,000 5 2 3 8 1,000 .. 10 7 10 13
$1,500 1 1 1 1 $1,500 . 2 1 1 2
$2,000 6 5 5 7 $2,000. 12 Wu 12 13
$2,500 2 1 2 4 $2,500 .. 4 3 4 4
$3,000 1 1 1 2 $3,000 .. 1 1 2 1
$4,000 Mp Ta] $3,001-$3,999 .. 1 1 1] (ty
$5,000 9 10 9 9 $4,000 . 1 2 1/0)
Greater than $5,000 12 13 16 9 $5,000 .. 7 8 9 5
Varies by age of spouse 1] () 1] () Greater than $5,000 . 6 7 8 5
Varies by eamings 3 2 4 2 Varies by age of child 2 . 2 1 t 3
Varies by employee option 27 34 25 25 Varies by earnings (‘) aya) |
Percent of employee Varies by employes option 23 28 19 22
4] 3 5 4 Percent of employes
(") 14 (') ” coverage ... 1 1 1 1
28 28 29 28 Not determinable 28 28 29 28
Average? Averages
Average flat benefit amount ......| $7,316] $8,949] $9,055} $5,224 Average flat benefit amount ...... $3,393} $3,790} $3,710] $2,885

} Less than 0.5 percent.

2 The average is presented for all covered workers; averages exclude

‘workers without the plan provision.

NOTE: Because of rounding, ‘sums of individual items may not equal totals.

‘Where.

applicable, dash indicates no employees in this category.

Less than 0.5 percent.

1
2 Amount of insurance increases at some point after 1 year of age.
3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

110


existed prior to coverage by the plan. Among the
possible restrictions imposed are a limit on the amount
the plan will pay for treatment of the condition or a
specified time period after joining the plan during
which no payment-will be made for treatment of the
condition. .

Coverage for retired workers

Although the Consolidated Omnibus Budget
Reconciliation Act of 1985 requires employers to
continue health care benefits for employees who are
retired, laid off, or otherwise separated from
employment, workers may be charged all of the
premium .costs at group rates. In addition, the
continuation period stipulated by the law is limited.!*
The survey of medium and large private establishments
focuses on coverage for retired employees that are
financed wholly or partly by the employer.

Many of the full-time medical care participants in
the survey work for employers who finance, at least in
part, medical care protection after retirement (tables
102-103). The vast majority of these. workers are in
plans that provide postretirement coverage regardless of
their age. Retirees are typically covered by the same
plan as active employees, although benefits are
coordinated with Medicare once a retiree reaches age
65. It is more likely for the coverage to be partly paid
by the retiree than to be wholly employer financed.

Dental Care

Dental care benefits are available to a majority of
full-time employees in medium and large private
establishments. Dental care may be offered as a part of
a comprehensive medical and dental plan, or as a
separate plan in addition to medical coverage. Often,
employers offer a series of medical plans from which
employees may choose, as well as a separate dental
plan that can accompany any medical plan.

Employers may impose a service requirement
before employees are covered by a dental care plan.
When imposed, such requirements are often 3 to 12
months (table 104). Employers may set up a longer
service requirement for dental coverage than for
medical coverage.

When a single plan includes dental benefits together
with medical care benefits, it is not possible to
distinguish which portion ‘of the employee's
contribution, if applicable, goes toward dental

18 The act requires employers who maintain health insurance plans
to continue coverage to terminated workers for up to 18 months.
Workers may be charged up to 102 percent of the premium cost.
Based on a 1989 change to this law, employees disabled at the time of
termination can have benefits continued for up to 29 months, and can
be charged up to 150 percent of the premium cost after 18 months.

46

coverage. Therefore, employee contribution data are
examined in stand-alone dental plans, that is, those that
offer-dental benefits separately. from medical plans.
When such plans require an employee contribution, that
contribution is typically a flat amount—for example, $5
per month for individual coverage and $10 per month
for family coverage (tables 105-106).

A large majority of participants covered by dental
care plans receive benefits through a fee-for-service
plan, which reimburses patients or providers only after
services are received (table 107). Such plans are
commonly self-insured or obtained through. a
commercial insurer. The remaining participants have
their dental benefits provided through either a health
maintenance organization or a preferred provider
organization.

Dental plans nearly always cover preventive and
restorative services (table 108). Preventive care
typically includes dental examinations, prophylaxis
(cleaning), and x-rays. Restorative procedures include
fillings, periodontal care, endodontic care, prosthetics,
and crowns. Periodontal care is the treatment of tissues
and bones supporting the teeth. Endodontics involves
the treatment of the tooth pulp, such as root canal work.
Prosthetics deals with the construction and fitting of
bridges and dentures.

Orthodontic care, including straightening teeth and
maintaining proper spacing of teeth, is covered less
often by dental plans than are other procedures. In
addition, plans frequently limit orthodontic coverage to
dependent children only.

There are four methods used by dental care plans to
cover dental services:

Plan pays a percent of dental charges;
Plan pays up to a specified dollar amount per
procedure;
¢ Plan requires patient to pay an initial copayment,
after which the plan pays additional charges;
Plan pays a varying percent of dental charges, based
on a patient's past use of dental services.

Dental payments are frequently based on a
proportion of the usual, customary, and reasonable
charge for a procedure (table 109). The proportion
covered by a plan often depends on the type of
procedure performed. Less costly procedures such as
examinations and x-rays may be covered at 100
percent. Fillings, surgery, endodontics, and periodontics
are more likely to be covered at 80 percent. The most
expensive  procedures—crowns, prosthetics, and
orthodontia—are often covered at 50 percent of the
usual, customary, and reasonable charge.

Some dental plan participants are offered
reimbursement based on a schedule of cash allowances.


Chapter 7. Defined Contribution
Plans

Defined contribution plans generally specify the
level of employer contributions to a plan, but not the
formula for determining eventual benefits as in a
defined benefit plan. Instead, individual accounts are
set up for participants, and benefits depend on amounts
credited to these accounts, plus investment earnings.
Although employers normally guarantee they will make
contributions, the employee bears the risk of fluctuation
in investment earnings.

This chapter examines details of defined contribu-
tion plans, including:

© Types of defined contribution plans available;

¢ Provisions, such as contributions and distributions,
associated with several types of plans; and

Pretax arrangements, known as 401(k) plans, and
their unique features.

Since 1975, when the Employee Retirement Income
Security Act (ERISA) became effective, the number of
participants in private defined contribution plans has
risen steadily, while the number of participants in
defined benefit plans has increased only slightly. Most
of the recent participation growth in defined
contribution plans is occurring in new plans,
particularly in 401(k) type plans, which offer cash. or
tax-deferred options on currently taxable compensa-
tion?

Defined contribution plans are primarily designed to
provide retirement benefits. Most retirement plans do
not allow withdrawal of employer contributions until
retirement age, death, disability, separation from
service, age 59'/,, or hardship. However, some plans
may impose less stringent restrictions for withdrawal of
employer contributions, for example, permitting one or
two withdrawals per year, or allowing withdrawal after
2 or 5 years of service. Nevertheless, these defined
contribution plans may also furnish retirement income

3? Data taken from U.S. Department of Labor, Pension and Welfare
Benefits Administration, Private Pension Plan Bulletin, No. 2,
Summer 1993.

33 Such withdrawals, while permitted by the plan, may trigger
current income tax liability and tax penalties for the recipient.

131

because withdrawals of the employer's contributions are
voluntary, not mandatory. For purposes of the
Employee Benefits Survey, all defined contribution
plans are considered retirement plans.

Plan types

Defined contribution plans may be classified by
type of plan (table 1). The survey provides data on the
following types: Savings and thrift plans, deferred
profit-sharing plans, money purchase pension plans,
employee stock ownership plans (ESOP’s), and stock
bonus plans. Savings and thrift and money purchase
pension plans are more common among white-collar
workers, while deferred profit-sharing plans are
common among both white-collar and blue-collar
workers. Stock plans, however, cover a small portion of
employees. -

Most participants in defined contribution plans
make contributions to their plans. In fact, nearly all
savings and thrift plan participants are required to make
contributions as a condition of joining the plan, with
the employer matching some or all of the employee
contribution. In contrast, nearly all participants in
Private defined benefit plans have all contributions
made by the employer.

Employees may receive retirement benefits from
defined benefit plans, defined contribution plans, or
both. A large number of participants are enrolled in
more than one plan. When more than one plan is
available, the employer most often provides a defined
benefit plan and a savings and thrift plan (table 159).

Another type of plan frequently encountered is a
401(k) plan (named after the applicable section of the
Internal Revenue Code). Such plans, also known as
cash or deferred arrangements, are usually features of
other defined contribution plans that give employees
the opportunity to defer income and taxes into the
future. The features of these plans are discussed in
more detail at the end of this chapter.

34 Plans that allow the purchase of company stock at below market
value (stock purchase plans), or that allow the purchase of stock in the
future at a designated price (stock option plans), serve to accumulate
financial assets and are considered separate employee benefits in
chapter 1. They are not included among the defined contribution plans
designed for retirement purposes.



In PPO's, like fee-for-service plans, benefits are
typically subject to limitations including deductibles,
coinsurances, out-of-pocket expense limits, and plan
maximums that apply to many or all services (table 71).
These limitations can differ depending upon whether or
not care is provided by a designated provider. For
example, assume that an individual's total covered
medical expenses are $3,600 in one year. When care is

provided within the PPO network, the plan pays 90 .

percent of expenses, or $3,240. When care is provided
outside the PPO network, the plan imposes a $100 a
year deductible and reimburses 80 percent of the
remaining expenses. Thus, outside the PPO network the
plan pays only $2,800 of the expenses.

PPO's may also vary the way payments are made,
_based on the provider used. For example, services
received from non-network providers may be subject to
a plan deductible and coinsurance. Network services,
alternatively, may be subject only to a small
copayment, such as $10 per office visit or $5 per
prescription. The remaining cost of such services is
borne by the plan.

Health maintenance organizations (HMO's)

- Health maintenance organizations provide a fixed
set of medical benefits for a prepaid fee. Most medical
services are either covered in full or require patients to
pay a minimal copayment. Typical copayments are $5
or $10 per physician's office visit or $3 or $5 per out-
of-hospital prescription drug.

HMO's are unique in that they encourage preventive
care, including physical examinations, vision screening,
hearing care, well baby care, and immunization and
inoculation, Many HMO's are federally qualified,
which provides advantages when soliciting new
participants (table 63). HMO's must provide a
minimum group of benefits, such as honie health care,
well baby care, and hearing care, to become federally
qualified.

HMO's are more likely to require participants to pay
at least part of the premium for coverage than are non-
HMO's (tables 50-52). In addition, average monthly
premiums for individual and family coverage are higher
for participants in HMO's than for those in non-HMO's.

Cost containment

In addition to data on the extent of coverage for
specific medical services, the survey measures the
availability of medical plans with either benefit
management programs, managed care plans, or review
boards. These programs help make sure that the
services rendered are medically necessary and are
provided in the most appropriate health care setting.
These programs are partly in response to the rapid rise
in medical care costs during the 1980's.

42

Most medical care participants have some
“managed care" provision available to them (table 72).
This includes all participants in HMO and PPO plans,
in which the plans manage care by directing patients to
specific providers or services. In addition, many fee-
for-service participants are in plans with at least one
managed care feature. These could include
preadmission certification for —_ hospitalization,
preadmission testing, and second surgical opinion
(tables 73-74).

Some advanced managed care programs may
consist of four or more features. These often include
preadmission review of all hospital admissions for
nonemergency or nonmaternity care, concurrent review
to monitor care while hospitalized, discharge planning
to coordinate a continued course of treatment in more
appropriate health care settings, and mandatory second
surgical opinions for selected procedures.

Among the features studied, some plans have their
care subject to utilization review. This is the process of
teviewing the appropriateness and quality of care
provided to patients. A higher level of reimbursement
for prehospitalization testing, a means of decreasing the
length of hospitalization, is also prevalent.

Some managed care programs may consist of only
one or two cost containment provisions, such as
mandatory second surgical opinions and preadmission
certification before being admitted to a hospital (except
in cases of emergency). Less prevalent cost
containment features in fee-for-service plans include
incentives for the employee to audit hospital bills and
incentives for child deliveries in lower cost birthing
centers, rather than in hospitals.

Increasingly, medical care plans require a separate
deductible for hospital admission to discourage
unnecessary hospitalization. These deductibles are
often between $100 and $300 per hospital admission.

In fee-for-service plans, second surgical opinion
provisions generally apply to inpatient surgical benefits
(table 75). Plan enrollees usually receive lower levels
of reimbursement if they do not obtain second
opinions.

Second surgical opinion provisions are rare in
HMO's. By their very nature, HMO's emphasize
Preventive, cost efficient medical care. Built-in forms
of utilization review, including second surgical
opinions, are automatically provided.

Hospital coverage

Medical plan enrollees covered by the survey
routinely have coverage for hospital room and board
charges (tables 76-78). (Coverage also extends to
"miscellaneous" charges while hospitalized, such as
routine nursing care, prescription drugs, and surgical
dressings.) Many plans cover hospital room and board


Table 75. Non-health maintenance organizations: Second
surgicat opinion provisions, full-time employees, medium and

jarge private establishments, 1993

Table 76. Non-health maintenance organizations: Extent of
coverage for hospital room and board, full-time employees,
medium and large private establishments, 1993

Profes- Profes-
sional, 5 Biue- sional, 5 Blue-
‘ay [techni | 822!) collar techni {821 cottar
cal, and Ailem-| cal, | 2S | and
. as em- 4, | Sales i “| sales fs
Second surgical opinion and service Extent of coverage ploy- | and re- ‘service
ploy- related voy: em- ees | lated ill em-
em- | POY" | ploy- em- | eek | ploy-
ploy- ees Ploy- ees
ees ees
‘Number (in thousands) in Number (in thousands) in
non-HMO plans ..... 18,179] 4,709| 4,268} 9,202 non-HMO plans with
hospital room and board
Percent coverage ..... | 18,179] 4,709} 4,268] 9,202
Total with non-HMO plans ........]_ 100 100 100 100 Percent
‘With second surgical opinion Total in non-HMO plans with
program ...... wel 75 7 74 76 hospital room and board
With no penalties for coverage ..., 100 100 100 100
non-compliance: 31 31 31 30
With penalties for First dollar coverage only! ........ 8 9 7 8
non-compliance ........ 44 44 42 45 First dollar coverage then .
Coinsurance reduced major medical 34 30 a7 39
Major medical only? 58 61 66 53
3 2 3 3
18 19 18 7
2 4 3 2 1 Includes plans in which all expenses ware reimbursed for the full
7 6 8 9 semiprivate room rate for a specified dollar amount, ar for a limited or
unlimited number of days.
1 1 1 1 2 Major medical limits are expressed only in terms of total benefits
payable under the plan rather than for individual categories af care. Limits
2 1 1 2 are set as deductibles, coinsurance percentages, and overall dollar fimits on
5 6 6 5 plan benefits,
3 2 3 3
4 3 3 4 NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.
25 2 26 24

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

71



ARRON

Pathe!

eh oR Seep

é
ca
:

Table 92, Mental health care benefits: Limits on coverage in
non-health maintenance organizations, full-time employees,
medium and large private establishments, 1993

Table 93. Substance abuse treatment benefits: Relationship
to other coverage,’ full-time employees, medium and large
private establishments, 1993

Profes- Profes-
sional, . Blue- sional, , Blue-
techni. |lereal| colar techni [RC collar
_ Allem-| cal, | oles and Allem-| cal, | Sigg | and
Coverage limitation ploy- jand re- ‘em- services Type of coverage ploy- {and re- ‘eom- service
ees | lated ploy- | &TM ees | lated ploy- | ©TM
em- ‘ees ploy- em- ees ploy-
ploy- ees ploy- ees
ees ees
Inpatient! Percent
Total . too | 100 | 100 | 100 Alcohol abuse
- Total with inpatient
No limits .. 1 | 21 1s | 18 cot
Seger] |B] a |B gchar on] | | | oe
Devars sy | ss | 6s | 87 Covered differently .. 1 67 | 68 | 75
Coinsurance 14 16 18 12 eh i
Total with inpatient
Copayment 2 2 3] 2 rehabilitation? too | 100 | 100 | 100
Covered the same. 3 12 12 7
Outpationt® Covered differently - a1 | es | as | 93
Total .. 100 | 100 | 100 | 100 Total with outpatient
_ habilitation* 400 | 100 | 100 | 100
No limits ... 5 7 4 4 *
i Covered the same. 10 13 "W 8
Subject to separate limits? 95 93 96 96 i
Days 30 27 31 30 Covered differently .. 90 87 89 92
Dollars 82 | 79 | 84] 82
Coinsurance 64 | 6 | 63 | 66 Drug abuse
Copayment 4} 8] &] 8 Total with inpatient .
detoxification? 100 j“to00 | 100 | 100
1 Excludes doctor's charges in the hospital Covered the same 30) 33 | 33 | 26
2 Separate imitations indicate that mental health care benefits are more «Covered differently . 7O |) 67 | 67 | 74
restrictive than benefits for other treatments. For example, if a plan limits .
inpatient mental health care to 30 days per year, but the limit on inpatient Total with inpatient
care for any other type of illness is greater than 30 days per year, that plan rehabilitation? . 400 | 100 | 100 | 100
contains separate limits. The total is less than the sum of the individual items Covered the same 3} 4 12 7
because many plans had more than one type of limitation. iffere!
3 includes treatment in one fc more te otowing: curation: Covered differently .. 1 so | 88 | 98
department of a hospital, residential treatment center, organized outpatient ; ;
clinic, day-night treatment center, or doctor's office. If benefits difered by Total with outpatient
location of treatment, doctor's office care was tabulated. rehabilitation’ .. 100 | 100 | 100 | 100
Covered the same 10 12 11 7
NOTE: Because of rounding, sums of individual items may not equal totals. Covered differently . 90.| 88 | 89 | 93

Where applicable, dash indicates no employees in this category.

1 Reetationship to other coverage is a comparison to similar
non-substance abuse treatment. For example, if alcoho! rehabilitation is
limited to 30 days per year, but inpatient care for any other type of iliness is
not limited in terms of days, the plan contains inpatient alcohol rehabilitation
provisions that ara covered differently.

2 ‘Detoxification is the systematic use of medication and other methods
under medical supervision to reduce or eliminate the effects of substance

abuse.
3 Rehabilitation is designed to alter the abusive behavior in patients once
they are free of acute physical and menta! complications.

Includes treatment in one of more of the following: outpatient
department of a hospital, residential treatment center, organized outpatient
clinic, day-night treatment center, or doctor's office. If benefits differed by
location of treatment, the location offering the most beneficial coverage was
tabulated.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

81



Table 42. Long-term disability insurance: Method of payment,
full-time employees, medium and large private establishments,
1993

Table 43. Long-term disability insurance: Maximum benefits"
based on percent of earnings formulas, full-time employees,
medium and large private establishments, 1993

Profes- Profes- 4
sional, a Blue- sional, . Blue-
. ay | teenni- FORFEY conar ay | techni [2H conar
em | Ol | sales | nd em- | | sales | and
Method of payment and ‘service Maximum benefit and service
POY” | related} SP | em Ploy- | related | OTM | “em.
om fom | BO | shy ot (Mom | OY | poy
Ploy- ees Ploy- ees
ees ees
Number (in thousands) with
Percent of eamings benefit | 11,387} 4,909| 3,634] 2,844
.| 11,827] 4,959] 3,671] 3,197
Percent
Percent .
Total with percent of eamings
Total with long-term disability benefit .. .. 100 | 100 | 100
insurance ..... | 100 | 100 | 100 | 100
With maximum ... 75 | 66 | 61
Fixed percent of eamings 89} 95 {| 94 | 76 Flat maximum per month 7 | 66 | 61
Less than 50 percent 1 1 1 1 $2,000 or less 7 6 5 aul
50 percent .. 20 17 | 23} 20 $2,001 - $3,000 9 9 8 9
51-59 percent GM) ey) ce - $3,001 - $4,000 4 5 4 3
60 percent .. 50 | 55 | 48] 43 $4,001 - $5,000 4] 15] 13] 13
61 - 69 percent 15 | 18 | 417 9 $5,001 - $7,500 1 12 | 10 9
70 percent .. 3 2 3 2 $7,501 - $10,000 1%] 1] 6] 12
Greater than 70 percent ..) (7) | (4) | (7) | (1) $10,001 or more 9 ch "1 4
Percent varies by eamings .. 6 4 5 | 12 No maximum .. 24] 3 | 39
Percent varies by service a] Cy) 1 1 Not determinable (?) 1 | (7)
Percent varies by length of
isabilit PCy] : . Average?
1 1 1 2
3 - () 9 Average flat maximum benefit
|) : “) (per month) ... $6,861) $6,907] $7,468] $5,922
Average?
1 ludes limits on all disability income, which restrict long-term
Average fixed percent of <isabilty Insurance payments i income from al sources exceeds a spectied
A amount
earnings .. | 589] 59.5] 588] 58.0 2 Tess than 0.5 percent.

1 Less than 0.5 percent.
2 The average Is presented for all covered workers; averages exclude
workers without the plan provision.

NOTE: Because of rounding, sums of individual tems may not equal totals.
‘Where applicable, dash indicatas no employees in this category.

36

The average is presented for all covered workers; averages exclude
‘workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.


Table 143. Defined benefit plans: Maximum benefit
provisions’, full-time employees, medium and large private

Table 144. Defined benefit plans: Availability of lump sum
benefits at retirement, full-time employees, medium and large
private establishments, 1993

establishments, 1993
Profes- a Profes-
sional, A lue- sional, ., Blue-
techni: |e") cottar techni- |“) cottar
. Alt cal, and ‘and Alt cal, and ‘and
Maximum em- | and | S265 | service Option em- | ang | SA€5 | service
benefit Ploy: | related| ST" | em Ploy | retated| &TM | om.
ees ploy- 8 ees ploy-
em | ‘ees | Poy em- | Tees | Ploy-
ploy- ees ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with
defined benefit plan ... 16,015} 4,405) 3,939} 7,671 defined benefit plan .... 16,015} 4,405) 3,939) 7,671
Percent Percent
Total with defined benefit plan.) 100 100 100 100 Total with defined benefit plan...) 100 100 100 100
Subject to maximum .... 37 4 48 30 With lump sum available 10 12 "1 8
Limit on years of Full lump sum avaitable .. 9 12 10 7
credited service .. 37 40 46 30 Limited to specified
Less than 30 5 6 6 4 amount .. 3 3 4 2
30 12 Ww 15 aa No limit 6 8 6 5
31-34 .. 3 4 3 3 Partial lump sum with
35 10 ot 15 6 reduced annui a] 1 1
36-39 . (?) a4] () 1 @) No lump sum available 90 es | 89 | 92
6 & 6 5
Greater than 40 1 1 2 1
Other maximums .. 1 1 1 | (7) T Less than 0.5 percent.
Not subject to maximu s3_ | so | 52 | 70 NOTE: Because of rounding, sums of individual items may not equal totals.
‘Average* Where applicable, dash indicates no employees in this category.
Average credited service
maximum {in years) .. 328 | 33.0 | 32.7 | 32.7

1 These maximum provisions are independent of Intemal Revenue Code
ceilings on pensions payable from defined benefit plans.

2 ‘Loss than 0.5 percent.

3 The benefit yielded under the formula is fimited to a percent of terminal
eamings or to a fiat dollar amount.

‘4 The average is presented for all covered workers; averages exclude

workers without the plan provision.
Note: Sums of individual items may not equal totals because some benefit

formulas contain a limit on years of credited service and another maximum
provision. Where applicable, dash indicates no employees in this category.

122



Table 123. Life insurance: Reductions in benefits for older
workers, full-time employees, medium and large private
establishments, 1993

Table 124. Life insurance: Age at which benefits for older
workers are first reduced, full-time employees, medium and
large private establishments, 1993

- Profes- Profes-
sional, Blue- sional, Blue-
techni |Cieall coar techni- {lence ona
Allem-| cal, sales |_ 2nd Allem-| cal, sales |_ 2nd
Policy Ploy- | and re- em- service Age ploy- | and re- em service
ees | lated | poy. | em ees | lated ploy- | &TM
em- eee ploy- em- @ oe Ploy-
Pploy- ees ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with
basic life insurance ..... -| 26,175] 7,369] 6,724) 12,082 basic life insurance .... .-| 26,175| 7,369] 6,724] 12,082
Percent Percent
Total with basic life insurance ...} 100 100 100 100 Total with basic life insurance ...} 100 100 100 100
With reductions for older With reductions for older
workers | 42 45 44 38 workers .... | 42 45 44 38
Percent per year Age of first reductior
reduction ...... 8 7 8 9 Age 60 or before 1 1 1 1
Flat percent then per MPO? ma] ©
year reduction ......... 1 1 @) Q) 23 26 25 19
Reduction varies by 3 2 4 2
age ..., 31 34 34 28 14 12 12 15
Other reduction G) 1 17") G7, a] cy
Reduction not @) i a] OY)
determinable ........... 1 2 1 1 1 2 1 1
No reductions for older No reductions for older
workers . 35 36 36 34 workers .... 35 36 36 34
Not determinable 23 19 19 27 Not determinable 23 19 19 27

7 Less than 0.5 percent

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

* Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

Table 125. Life insurance: Retiree coverage, full-time

employees, medium and large private establishments, 1993
Profes-
sional, Blue-
techni |“2RAl| cotar
Allem-| cal, sales and
Coverage ploy- jf and re- em- service
ees | lated ploy- | 2m
em- ee ploy-
ploy- ees
ees
Number (in thousands) with
basic life insurance ..... -| 26,175] 7,369} 6,724] 12,082
Percent
Total with basic life insurance ...| - 100 100 100 100
With retiree coverage 4 44 42 39
Employer paid 31 33 30 30
Retiree paid 8 9 9 6
Jointly paid .. 2 2 4 2
Source of payment
unknown, 1 1 1 1
No retiree coverag 57 54 56 59
Not determinable ... 2 2 2 2



Some plans also provide lump-sum death benefits to
the survivors of employees who die before retirement.
Payments are in the form of a flat amount, such as
$3,000, or the equivalent of a specified number of
monthly retirement payments, such as 60.

Replacement rates

A commonly used indicator of pension benefits
measures the percentage of a retiree's final year's earn-
ings that is "replaced" by a pension payment. To
calculate replacement rates for defined benefit pension
plans in medium and large private establishments, the
benefit under each surveyed plan, reduced for early
retirement when applicable, is determined for
employees retiring at age 55, 62, and 65. These benefit
levels are then expressed as percents of earnings in the
last year of employment. The calculations assume
employees retired on January 1, and final earnings are
for the previous calendar year.?”

For employees retiring at age 62 and 65, average
replacement rates resulting from defined benefit
pension plans alone and in combination with primary
Social Security benefits (primary means excluding
benefits for spouse and other dependents) are calculated
for various combinations of final annual earnings and
length of plan participation (table 147).* Average
replacement rates for employees retiring at age 55
reflect only pension payments, because Social Security
does not pay benefits at age 55. For private pension
formulas that are integrated with Social Security and
for computation of Social Security benefits, the worker
is assumed to have retired after having paid into Social
Security for the same number of years as years of
participation used for pension calculations.

When combined with primary Social Security pay-
ments available at age 62 and 65, replacement rates
change substantially as earnings increase. Workers
earning $15,000 in their final year of service have a
considerably higher rate of earnings replaced after 30
years of service than do workers at the $55,000 and
$65,000 earnings levels. The primary Social Security
benefit payment at age 65 is larger than the average
private pension at lower earnings levels, but the
pension benefit. becomes the greater component at
higher earnings levels. The pension payment is
generally the larger component regardless of earnings
at age 62 because there is a 20-percent reduction in

27 Barings histories, necessary for applying the pension formulas,
were constructed for each final earnings level based on data provided
by the Social Security Administration.

28 The Social Security spousal benefit, which is 50 percent of the
primary benefit, is paid in addition to the primary benefit while both
partners are alive (unless the spouse is eligible for a larger primary
benefit).

M15

Social Security benefits received at age 62 rather than
at age 65.

Although private pension replacement rates
(excluding Social Security) for white-collar employees
usually remain fairly constant at higher earnings levels,
rates for blue-collar workers commonly decrease. Pro-
duction and service workers often have dollar-amount
formulas, paying workers with the same years of
service the same benefit, regardless of earnings history.
This results in a steady decrease in the replacement
rates as final earnings increase. Average replacement
rates for earnings-based formulas, on the other hand,
incréase slightly with higher final earnings.

The replacement rates just discussed apply to em-
ployees who receive a straight-life annuity, that is, they
do not provide benefits for a surviving spouse. Benefit
rates differ, however, when an employee elects a
survivor annuity for his or her spouse. The straight-life
annuity replacement rate diminishes slightly, for
example, a reduction of 10 percent of the retiree's
annuity, to account for survivor benefits. Should the
tetiree die, the benefit for the surviving spouse
("survivor annuity") is about half that paid to the retiree
under the joint-and-survivor annuity.

Normal retirement -

A majority of defined benefit pension plan partici-
pants can retire before age 65 and still receive full
private pensions (normal retirement benefits) (table
148). Participants who are required to be age 65 to
receive unreduced benefits usually do not have to
satisfy a length-of-service requirement; however, some
plans may require workers hired after age 60 to
complete at least 5 years of service.

When plans permit normal retirement prior to age
65, they generally impose a minimum service require-
ment. For example, normal retirement at age 60 and 62
is available to a large number of participants, but the
majority of these workers also have a service
requirement, commonly 5 or 10 years. Participants who
can retire with unreduced benefits prior to age 60,
including those who can retire at any age, usually have
to work 30 years.

Plans that require combining a worker's age and
service to reach a specified sum, such as 80 or 85, for
retirement with full benefits cover few participants.
This type of arrangement usually specifies a minimum
age. Minimum lengths of service are less common.
When a plan specifies alternative age-and-service
requirements for normal retirement, such as age 62 with
10 years of service or age 55 with 20 years of service,
the earliest age and associated service is tabulated.

A few pension plans provide monthly payments to
supplement normal retirement pension benefits. These



Table 138. Defined benefit plans: Terminal earnings formula,
full-time employees, medium and large private establishments,
1993

Table 139, Defined benefit plans: Definition of terminal
earnings, full-time employees, medium and large private

establishments, 1993
- Profes- Profes-
sional, ‘ Blue- sional, q Blue-
ay {techni [1S colar ay techni: [KA cotta,
em- cal, sales and Definition em- cal, and
Item Joy. | and service of loy- | and service
Ploy- | related | SO | em- eamings Ploy- | related] SO | em.
ees ploy- ees ploy-
em- | ‘ees | Ploy em: | ‘ees | Ploy
ploy- ees Ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with :
terminal eamings formula ...|_ 9,803] 3,262] 2,880] 3,660 terminal eamings formula ...] 9,803] 3,262] 2,880] 3,660
Percent Percent
Total with terminal eamings Total with terminal eamings
formula ... eee| 100 100 400 100 formula 100 100 100 100
Flat percent per year of Final year ... 1 (1) 1 1
sevice ... -| 48 44 42 57 Three years .. 14 13 1 16
Less than 1.00 percent...) 4 1 2 9 1 14 (4) 2
1.00 - 1.24 percent ......... 5 5 5 5 3 4 2 4
1.25 - 1.49 percent ......... 8 7 8 8 GM) 1] @) |} ey
1.50 - 1.74 percent .. 22 21 7 27 3 4 2 4
1.75 - 1.99 percent ......... 4 5 4 4 9g 8 9 abl
2.00 - 2.24 percent ......... 5 4 7 4 7 7 8 7
2.25 percentor greater...) (1) | (1) | (1) | (1) 2 1 1 3
Percent per year varies | 54 55 57 42 1 Q) - 1
By service . 7 7 10 5 83 84 86 81
By eamings 36 | 41 At 29 3 3 3 2
By age . MPC} oy | cy 16) 13 | 124 21
By eamings and service 7 7 7 8 4 4 3 5
Other... 1 1 a} oc) 9 6 7 13
Of other time period 3 3 2 3
Average? High consecutive 5 65 68 ral 58
Of last 10 53 54 57 48
Average fiat percent per year 12 13 13 9
OF SEMVICE ceesstccorsessserneeenee| 1.48 | 1.54 | 1.55 | 1.41 Of other time period as) 11)
Other period? .... ase 2 3 2 2

1 Less than 0.5 percent.

2 ‘The average is presented for all covered workers; averages exclude

workers without the pian provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

120

1 Less than 0.5 percent.

2 Formulas based on eamings during period other than 3 or 5 years’
service, or period not immediately before retirement (for example, first 5 of

fast 10 years’ service).

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.



Table 171. Savings and thrift plans: Frequency of investment changes In plans permitting employees to choose
Investments, full-time employees, medium and large private establishments, 1993

Professional, -
- 4 Clerical and sales Blue-collar and
techni a
All employees relied apioyees employees service employees
tem
‘Employee| Employer | Employee | Employer | Employee | Employer | Employee | Employer
contribu- | contribu- | contribu- | contribu- | contribu- | contribu- | contribu- | contribu-
tions tions tions tions tions tions tions tions
Number (in thousands) with
savings and thrift plans
with employee investment
choice - 7,139 4,818 2,574) 1,739 2,143) 1,502 2,422 1,577
Percent
Total with savings and thrift
plans with employee
investment choice .... 100 100 100 100 100 100 100 100.
Atany time ........ 29 32 35 42 29 29 23 24
Specified number of times
65 63 59 53 67 68 68 69
5 4 5 5 3 3 5 3
16 15 15 12 19 20 14 13
35 34 30 24 37 35 39 44
9 10 10 "1 7 9 10 10
2 1 1 1 1 1 2 3
- a) - ) - (“) - C)
Not determinable 5 4 4 5 3 i. 8 6 5

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not
equal totals. Where applicable, dash indicates no employees in
this category.



‘Table 182. Savings and thrift plans: Vesting provisions,
full-time employees, medium and large private establishments,
1993

Table 183. Deferred profit-sharing plans: Employer
contributions, full-time employees, medium and large private
establishments, 1993

Profes- es Profes-
sional, ‘ lue- sional, -na|| Blue-
techni- |S] contar techni | cottar
All and All and
‘ em | 4 | sales and em- | 4") sates | 2nd
Vesting provision and service Employer contributions and service
Ploy” | related] Sev | em: ploy- | reiated| &TM | em
ees ploy- ees ploy-
em- | "Geg | Ploy em- ploy-
ploy- ees ploy- | °S | ees
ees ees
Number (in thousands) with Number (in thousands) with
savings and thrift plans .... 8,204| 2,933] 2,470) 2,880 deferred profit-sharing
plans ... 3,777] 939} 1,209| 1,629
Percent
Percent
Total with with savings and
thrift plans wu} 100 | 100 | 100 ] 100 Total with deferred
profit-sharing plans .. 100 | 100 | 100 | 100
Immediate full vesting. | 34 | 94 | 34 | 33
Based on stated formula......| 40 | 94 ) 40 | 44
Clif vesting? . | 29 | 27 | 25 | 35 Fixed percent of profits ....] 9 7 6] 12
_ With full vesting after:
| 1-2years 2 3 2 3 2 1 1 2
3-4 years. 9 8 8) 1 ity 3 4 3 3
5 years ... yw} te] 15 | 2t Fixed percent of profits in
More than 5 years (7) - (?) - ‘excess of reserved
amount .. 2 a1) 3
Graduated vesting? .. 33 34 38 28 Sliding percentage bas:
With full vesting after: : ‘on profits, sales, or
4 years or less 5 5 8 1 15} 13 | 23 | 10
S years .. 1 | 18) 21 14 10 8 6} 14
6 years .. 5 5 5 5 No predetermined formula...| 60 ) 66 | 59 | 56
7 years .. 5 6 3 7 Data not available C) - 4 -
40 years (7) - - 1
Class years vestings .... 2 3 2 1 1 Less than 0.5 percent.
With each class vested NOTE: Because of rounding, sums of individual items may not equal totals.
3 a1) Where applicable, dash indicates no employees in this category.
@ 7) 1
@) |] @) | @ :
2 1 2

1 Under cliff vesting, an employee is not entited to any benefits until
satisfying requirements for 100 percent vesting. -

2 ‘Less than 0.5 percent.

3 Under graduated vesting, an employee's rights to benefits increase
with length of service, eventually reaching 100 percent.

4 ‘Under class year vesting, employee contributions for a given year
(class) become nonforteitable after meeting vesting requirements.
‘Subsequent contributions must meet similar requirements,

NOTE: Because of rounding, sums of individual items may: ‘not equal totals.
‘Where applicable, dash indicates no employees in this category.

148



Preface

This bulletin presents results of a 1993 Bureau of
Labor Statistics survey of the incidence and detailed
provisions of selected employee benefit plans in medi-
um and large private establishments. The survey
provides representative data for 34 million employees
in the Nation's private nonagricultural industries. Ap-
pendix A provides a detailed description of the cover-
age and statistical procedures used in the survey.

The 1993 Employee Benefits Survey reports on
benefits provided to employees in establishments with
100 or more workers in all private nonfarm industries.
Between 1979 and 1986, the survey provided benefits
data on full-time employees in medium and large estab-
‘lishments, those with either 100 or 250 employees or
more, depending on the industry; coverage in the serv-
ices industries was limited. The 1987 survey examined
benefits provided to full-time employees in State and
local governments with 50 employees or more. In 1988,
1989, and 1991, expanded surveys of medium and large
establishments covered full-time employees in
establishments employing 100 workers or more in all
private industries.

Beginning in 1990, the Employee Benefits Survey
included both full-time and part-time employees in all
private industries (regardless of employment) and State
and local governments. In that year, the survey covered
small private establishments and governments. At the
present time, small private establishments and State and
local governments are surveyed in even-numbered
years, and medium and large private establishments are
surveyed in odd-numbered years.

The 1993 Employee Benefits Survey provides an
expanded "survey highlights" section (Chapter 1) with a
number of key findings for major benefits, such as
time-off benefits; disability benefits; medical, dental,
and vision care; life insurance; and defined benefit
pension and defined contribution plans. Individual
chapters, with general information and details describ-
ing the benefit provisions, follow along with the respec-
tive tables for each benefit.

iti

Data for this bulletin were compiled and analyzed in
the Division of Occupational Pay and Employee
Benefits Levels by Cathy Baker, Michael Bucci,
Thomas Charboneau, Kenneth Elliott, Jason Ford, Ann
Foster, Avy Graham, Robert Grant, Douglas Hedger,
Jonathan Kelinson, Natalie Kramer, Marc Kronson,

- Christine Kymn, James Moore, Laura Scofea, Patrick

Seburn, Margaret Simons, Cynthia Thompson, Jerline
Thompson, and Arthur Williams, under the direction of
Allan Blostin, James Houff, and John Morton. Text was
prepared for-publication by Mahin Eslami. :

Computer programming and systems design for the
survey were provided by David Caples, Mary
Constable, Mohamed Elzein, Beverly Fantroy, Fred
Ford, Aholivah Maier, Lien Nham, Robert Roscoe, and
Chery! Sims of the Division of Directly Collected
Periodic Surveys, under the direction of Leslie
Chappel. Mary Gessley, Thomas Kelly, Charlotte
Mueller, and Jill Montaquila of the Statistical Methods
Group (Office of Compensation and Working
Conditions) were responsible for the sample design,
nonresponse adjustments, sample error computations,
and other statistical procedures, under the direction of
Chester Ponikowski. Fieldwork for the survey was
directed by the Bureau's Assistant Regional
Commissioners for Operations.

Material in this publication is in the public domain
and, with appropriate credit, may be reproduced with-
out permission.

Questions on the data in this publication should be
referred to the staff of the Employee Benefits Survey at

* (202) 606-6222. Sensory impaired individuals may ob-

tain information in this publication upon request. Voice
phone: (202) 606-STAT; TDD phone: (202) 606-5897;
TDD Message Referral phone: 1-800-326-2577.

Pictured on the cover of this bulletin is Waiting for
the Vet by Norman Rockwell, (c) 1952, The Curtis
Publishing Company.


Table 165. Savings and thrift plans:

private establishments, 1993

Employer matching contributions, full-time employees, medium and large

- Emptoyer matching rate
Specified matching percentage Varies Varies
Employee contribution tobe | tora) Varies by Varies
" 1-49] so |s1-e9| 100 | °% } of "| iwest-| rant
Total |. . service __|-ment |
percent|percent| percent] percent foron choice level
li
Percent
All employees
Total with savings and thrift
plans .. wef 100 f 82] 17 | 35 9 19 4 7 2 5
Up to the
0.01 - 2.00 percent 4 4 | (7) 1 : 3 | (7) - - (?)
2.01 - 3.00 percent 12 | 10 1 3] (7) 6 | (2) 1 - ()
3.01 - 4.00 percent 12 9 3 4 1 2} (?) 1 : 1
4.01 - 5.00 percent 12 11 4 2 i (?) 4] (7) 1 () | @)
5.01 - 6.00 percent 46 | 35 7 | 18 6 4 2 3 2 4
6.01 - 7.00 percent 4 4 1 2 - 1 (7) - - -
7.01 - 8,00 percent 4 3 - 1 1 (2) | (@) 1 - -
8.01 - 9.00 percent .. 2 2 - - 1] (7) - - - -
9.01 - 10.00 percent 3 3 1 2 - @)}@ 1] @) - -
11.01 - 12.00 percent .. 1 1 1 - - : - . - -
Greater than 12
percent .... 1 1 (7) 1 - (7) - . - -
Professional, technical, and ..
telated
Total with savings and thrift
lans ... e2 | 17 | 33 9} 20 4 5 2 6
Up to the first:
0.01 - 2.00 percent .. 3 3] () 1 - 2 - : - :
2.01 - 3.00 percent .. 13 42 | (7) 3 | (7) 7 1 | (F) - (7)
3.01 - 4.00 percent 1 9 2 5 1 2{ (7) 1 : (?)
4.01 - 5.00 percent 13 4 5 2] (7) 4] () 11 (2) 1 (®)
5.01 - 6.00 percent 46 | 33 7) 18 5 4 3 3 2 5
6.01 - 7.00 percent 4 4} (?) 2 - 1 | (2) > - -
7.01 - 8.00 percent 5 5] - 2 2/27) | @) | @ - -
8.01 - 9.00 percent 2 2} - : 2 | (*) : - : -
9.01 - 10.00 percent ... 2 2 4] @)] - - (2) | @) - -
11.01 - 12.00 percent ... 1 1 1 - - - - - :
Greater than 12
percent... 4 4 | (7) 1 - (7) - - -
Clerical and sales
Total with savings and thrift
plans .. sweet 100 | 82] 14 | 39 | 14 18 4 6 3 6
Up to the first:
0.01 - 2.00 percent 4 4 | (7) 2 - 2] (?) - - (?)
2.01 - 3.00 percent 10 10 1 3} (?) 6 | (2) | (*) - {?)
3.01 - 4.00 percent WW 9 2 5 | (®) 2| (7) 1 : 4
4.01 - 5.00 percent a 9 3 3 | (7) 3 | (7) 1 (2) | (7)
5.01 - 6.00 percent 64 | 41 7 | 2 8 4 3 3 2 4
6.01 - 7.00 percent 3 2 1 1 : 1 (2) - - -
3 2{| - 440) 1 @ 1 @) +] - -
2 2 - - 2) (?) - - - -
9.01 - 10.00 percent 2 2! (7) - (7) (7) . - -

See footnotes at end of table.

138



2

Aude Baby.

&
€

Chapter 5. Life Insurance

Life insurance is provided to nearly all full-time
employees in medium and large private establishments
(tables 117-135). Most workers with life insurance are
covered by formulas based on earings, such as
multiple-of-earnings formulas, which commonly
provide basic insurance of one or two times annual
salary. Flat dollar amounts, often $5,000 to $15,000,
cover many of the remaining life insurance plan
participants.

Employers generally pay the entire cost of basic life
insurance. When employee contributions are Tequired,
it is frequently because life insurance benefits are being
offered as part of a cafeteria plan or reimbursement
account. (For definitions, see chapter 8.) These plans
allow workers to choose from various benefit options
depending on their needs. In such cases, employees
may have to contribute, often in the form of pretax
dollars, to obtain the benefit package they desire.
Another form of employee contribution is a specified
flat dollar amount per $1,000 of coverage, such as 20
cents per $1,000 of coverage per month.

Types and amounts of benefit formutas

Basic coverage for full-time life insurance
Participants is often linked to their earnings. This link
enables the level of protection to increase automatically
with a rise in pay. The most common method of tying
life insurance protection to earnings is to tmaultiply the
employee's annual earnings by a factor ‘of one or two
and round the product to the next higher $1,000. For
example, an employee earning $22,700 would receive
$46,000 of coverage under a plan Providing two times
earings ($22,700 x 2 = $45,400, which rounds up to
$46,000). Participants covered by these plans may have
a limit placed on the amount of coverage available.
Such maximums usually range between $50,000 and
$500,000.

A flat dollar amount of insurance, regardless of
earnings, is the other prevalent means of providing life
insurance protection. Insurance amounts ranging from
$5,000 to $15,000 are quite common in such plans.
Production and service workers are much more likely to
teceive this type of benefit than professional, technical,
and related workers or clerical and sales workers.
However, when provided, the flat-dollar amount of life

insurance coverage is usually highest for the
Professional, technical, and related workers.

Although it usually provides smaller amounts of
insurance than earnings-based formulas, flat-amount
coverage has improved considerably over the years. For
example, participation in flat-dollar plans providing life
insurance of $20,000 or more has increased tenfold
since the survey was first conducted in 1979.

Other methods of providing life insurance
protection cover a small percent of participants. These
include: flat dollar amounts that increase as service
increases; flat dollar amounts that increase as wages
increase; and multiple-of-earnings formulas that
increase the multiple at higher salary levels.

Coverage for older active workers and retirees

Many plans reduce benefjts for older active
workers. Coverage is reduced to minimize the
increased cost of insuring older workers.2! Plans that
reduce coverage commonly make their first reduction at
age 65 or 70. Rarely do reductions occur before age 65.

Many plans reduce coverage for older workers only
once, typically to 50 percent of the original life
insurance amount. Other plans reduce coverage in
several stages, such as a reduction to 65 percent of
original coverage at age 65, then to 50 percent at age
70.

Basic life insurance coverage often continues after
retirement for full-time participants in medium and
large private establishments. This coverage almost
always continues for the rest of the retiree's life, but the
amount of the benefit is usually reduced at least once
during retirement.2?

Related protection

Additional life insurance, supplementing basic
coverage, is often available. In the large majority of
cases, employees have to pay the full premium for such
benefits. The typical supplemental plan provides term
life insurance in multiples of one to three times annual
pay, at the employee's option. The availablity of

71 Details on life insurance benefits for older workers are discussed
by Michael A. Miller in "Age-Related Reductions in Workers’ Life
Insurance,” Monthly Labor Review, September 1985, pp. 29-34.

?? For more information on retiree life insurance, see Margaret
Simons and Cynthia Thompson, “Life Insurance Benefits for Retired
Workers,” Monthly Labor Review, September 1990, pp. 17-21.



Table 61. Medical care benefits': Fee arrangement and
financial intermediary, full-time employees, medium and large
private establishments, 1993

Table 61. Medical care benefits’: Fee arrangement and
financial intermediary, full-time employees, medium and large
private establishments, 1993 — Continued

Profes- . Profes-
say | ooh |Clotll Cor ay [toot [tS tar
Fee arrangement and financial} em- bea sales ont, 2 Fee arrangement and financiat/ em- a sales sone
intermediary ploy- related | 2 ‘em- intermediary Pploy- related| &TM em
ees ‘em- ploy- ees ‘em ploy- ploy
ploy- | °@5 pee ploy ees y-
f ys ees
ees ees
Percent

‘Number (in thousands) with
medical care .. «| 23,519} 6,529] 5,819] 11,172
Percent
Total with medical care ... 100 100 100 100
Tradifional fee-for-service? 50 4 42 59
Self insured? 30 24 26 35

Commercial insurance

7 10
cy | (8) | (8)
(8) 1] (8)
Preferred provider
organization” 26 29 30 22
Self insured? 16 19 19 13
Commercial i
company .... 6 6 7 6
Blue Cross/Blue Shield ... 3 4 4 2
independent
ganization’ (8) 4] (8) 1 (8)
Combined financed @) 7 (8) | OO) 1 8)

1 Pians providing services or payments for services rendered in the
hosptalorby a physian. ‘Excludes plans that provided only dental, vision,
(or prescription drug cove

"These plans pay for spectic medical procedures as expensas are

3 Includes plans that are financed on a pay-as-you-go basis, plans
contibutions to a trust fund established to pay benefits, and

contributions. Includes
‘through Administrative Services Only (ASO) contracts.

23 28 27 18

wo

4
3

Ww 22 20 14
2

4 ‘These organizations provide and finance ail benefits, but are not
affiliated, with an insurance company or Blue Cross/Biue Shield.

5 Less than 0.5 percent.

& ‘These are plans where the financing comes from two different kinds of
financial intermediaries. For example, an establishment contracts with Blue
Cross/Blue Shield to pay part of the benefits and a commercial company to

pay, the other benefits.
A preferred provider organization (PPG) is a group of hospitals and
physicians that contracts to provide comprehensive madical services. To

‘encourage use of organization members, the health care plan limits
reimbursement rates when participants use nonmember services.

8 Includes federally qualified (those meating standards of the Health
Maintenance Organization Act of 1973, as amended) and other HMO's
delivering comprehensive health care on a prepayment rather than
fee-for-service basis.

8 ‘Includes exclusive provider organizations, which are groups of hospitals
and physicians that contract to provide comprehensive medical services.
Participants are required to obtain services from members of the organization
in order to receive plan benefits.

NOTE: Because of rounding, sums of individual Hams may not equal tetas.
‘Where applicable, dash indicates no employees In this category.



Plans also frequently cover such care at a coinsurance
rate of 50 percent rather than the usual 80 percent paid
by plans for other illnesses. In addition, expenses for
outpatient mental health care often can not be used to
meet the employee's maximum out-of-pocket expense
limit. Reimbursement for these expenses thus does not
increase to 100 percent even when the out-of-pocket
expense limit is met.'4

Alcohol and drug abuse treatment benefits cover
nearly all full-time medical participants (tables 93-99).
Nearly all participants with alcohol abuse treatment
benefits have the same coverage for drug abuse
treatment. Benefits provided under substance abuse
care include both detoxification and rehabilitation.
Detoxification involves supervised care by medical
personnel designed to reduce or eliminute the
symptoms of chemical dependency. Rehabilitation
provides a variety of services intended to alter the
behavior of substance abusers. Such services are
generally provided once a person’ completes
detoxification.

Virtually all participants covered by alcohol abuse
treatment benefits are eligible for inpatient (in-hospital)
detoxification, and, in most cases, receive inpatient
rehabilitation coverage. Detoxification is considered
medically necessary, and thus nearly all medical plans
include it. There is a greater tendency to exclude
inpatient rehabilitation, because it requires less constant
and less immediate care. Outpatient alcohol abuse
treatment, generally rehabilitative care, is available to
most participants with alcoholism coverage. Coverage
patterns are similar for drug abuse treatment benefits.

As is the case with mental health care, plans are
more restrictive in covering substance abuse treatment
than other illnesses.'5 Participants are more likely to
have inpatient detoxification treated the same as any
other inpatient confinement than to have inpatient
rehabilitation or outpatient care covered the same as
any other illness. Limitations for substance abuse
treatment most commonly include:

e Restrictions on the number of days of inpatient
hospital care per year;

¢ Restrictions on the number of outpatient visits per
year; :

14 A detailed examination ‘of mental health care provisions in
employer-provided health care plans is provided by Allan P. Blostin in
“Mental Health Benefits Financed By Employers,” Monthly Labor
Review, July 1987, pp. 23-27.

15 The designation of substance abuse coverage as more restrictive
than that for other illnesses results from a comparison of types of
coverage. For instance, if a plan limits inpatient substance abuse care
to 30 days per year but the limit on inpatient care of any other illness
‘exceeds 30 days per year, that plan contains separate, more restrictive,

* Reduced coinsurance levels for
treatment;

e Employee's share of the cost of outpatient care not
included in out-of-pocket expense limit;

® Maximum dollar amounts per year or per lifetime.

outpatient

A typical limit on inpatient care is 30 days per year.
Similarly, outpatient care might be restricted to 20 or
30 visits per year at a coinsurance rate of 50 percent. In
non-HMO plans, payments are often limited to a dollar
maximum for both inpatient and outpatient care, with
$50,000 per lifetime a common limit. Limitations on
days and dollars are often combined for alcohol and
drug abuse care.’ For example, plans often limit
coverage to 30 days per year and to $50,000 per
lifetime for both alcohol and drug abuse treatment.

HMO's frequently impose limits on the number of
days of both inpatient and outpatient substance abuse
treatment. In addition, an HMO may require a small
copayment for outpatient visits, such as $20 per visit.

Other medical benefits

The survey also measures the incidence of several
other services provided through medical care plans. For
example, some plans cover at least part of the costs for
routine physical examinations and for well-baby care
(table 54). HMO's nearly always include coverage for
hearing care, physical examinatjons, well-baby care,
and immunizations and inoculations. HMO's must
include these benefits to qualify under the Health
Maintenance Organization Act of 1973, as amended."”

Participation requirements

Medical care plans typically require new employees
to serve only a short eligibility period, if any, before
coverage begins (table 100). Many medical care plan
participants are allowed to join a plan immediately
upon being hired. For participants required to complete
a minimum length of service, the required period may
range from 1 month to 1 year.

Pre-existing condition limitation

Plans may impose restrictions on care provided to
individuals who join a plan with a "pre-existing
condition" (table 101). This is a medical condition that

16 For more detailed discussion of employer-provided substance
abuse coverage, see Mare E. Kronson, "Substance Abuse Coverage
Provided by Employer Medical Plans,” Monthly Labor Review, April

+ 1991, pp. 3-10. In addition, see Substance Abuse Provisions in

45

Employee Benefit Plans, Bulletin 2412 (Bureau of Labor Statistics,
August 1992)

17 Under this act, an HMO must provide certain coverage, such as
home health care, physical examinations, and children's eye and ear
examinations, Under certain circumstances, employers may be
required to offer employees medical care coverage through Federally
qualified HMO's.



Table 205. Other benefits: Percent of full-time employees eligible for
specified benefits, by union status, medium and large private

establishments, 1993

Benefit

Union employees

Nonunion
employees

Income continuation plans:
Severance pay ...

Supplemental unemployment benefits :

Family benefits:
Employer assistance for child care ..
Adoption financial assistance
Eldercare ...
Long-term care insurance

Health promotion programs:
In-house infirmary ..
Wellness programs
Employee assistance programs ..

Miscellaneous benefits:
Employer-subsidized recreation

facilities ....
Job-related travel accident insurance
Nonproduction bonuses
Prepaid legal services ..
Education assistance:
Job-related
Not job-related

Flexible benefits plans ..
Reimbursement accounts

as

388R BSR ~Boe

Be 88

a8ae

29

»858

73
9

166



Table 110. Dental care benefits: Amount of individual
deductible,’ full-time employees, medium and large private
establishments, 1993

Table 111. Dental care benefits: Services covered by
deductible! provisions, full-time employees, medium and large
private establishments, 1993

Profes-
ison | ial oar
Allem-| cal, ae and
Catagories of care ploy- | and re- service
ees | lated | STM | em-
em- Ploy- ploy-
ploy- ees
ees

~ . Profes-
sional; ‘ Blue-
techi-| 12% collar
Allem-| cal, sales and
Type of deductible ploy- | and re- ‘em- service
ees | lated loy- | 2m-
em- pie ploy-
ploy- e0s
ees
Number (in thousands) with .
dental care .. .| 17,704] 5,283) 4,620} 7,851
Percent
Total with dental care .. 100 100 100 100
Subject to separate dental
deductible? . 64 65 70 59
Yearly deductible only 59 61 65 55
Under $25 @) 1) ) |
19 20 7 20
1 1 1 1
34 35 42 2
3 2 2 3
2 1 1 2
(@) } @) 1] (4)
3 2 3 3
Gy} @) } @) 1
2 2 3 2
Gy) @) | er]

Both yearly and lifetime

deductibles ..... 2 1 2 2
No deductible .... 36 35 29 | 40
Data not available (3) | (3) 4 8) 1
Average*+
Average employes yearly
deductible .. $45] $44] $46) S44

Average employes lifetime
deductible ... 56 62 55 53

' Amount of deductible described is for each insured person. in some
plans, the individual and family deductibles are identical, Excludes separate
eductibles for orthodantic procedures.

2 Deductibles may not apply to all covered dental procedures. If
separate deductibles applied to different procedures, the sum of the
eductible amounts was tabulated.

3 Less than 0.5 percent.

* The average is presented for all covered workers; averages exclude
workers without the plan provision,

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

Number of employees (in
thousands) with a dental
deductible 11,269} 3,375} 3,243] 4,651
Percent
Total with a dental
deductible .. 100 100 100

15 15 16 16
50 53 50 46

All categories? ...
All except exams and x-rays
All except exams, x-rays, and

-orthodontia ... 22 20 21 23

All except orthodontia 4 3 3 6
All except exams and

orthedontia 1 1 1 1

we 9 7 9 9

1 Includes plans with both a yearly deductible only, and a yearly and
lifetime deductible.

‘This applies to all categories of care covered by the plan. The
categories of dental care are exams, x-rays, surgery, filings, periodontal
carg, endodontics, crowns, prosthetics, and orthodontia.

3" includes other category combinations.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.



Table 14. Paid vacations: Percent of full-time employees by amount of paid vacation days provided for selected periods of
service, medium and large private establishments, 1993--Continued

4 Profes- | Clerical | Biue-col| Proles- | Clerical | Biue-col
# All em- |technical,) 2nd | lar and All em- jtechnicay,| 2nd | lar and
2 Vacation policy land retat,| Sales | service Vacation policy ployees [and Telat,| Sales | service
: Playees }and £013t-| employ- | employ- ‘ed em | employ- | employ-

ees ees ees ees
ployees ployees
After 18 years of
service:—Continued
10 days ..... 4 2 3 6 iv) ia) oO iy)
Over 40 and under 15 | 1 e 1 2
1 e 8 1
25 15 2 33 is) - (9) is)
4 2 3 6
4 5 4 3
53 57 60 46 is) 0, 19) iy)
Over 20 and under 25 15 days ... 13 7 13 8
days 3 4 2 2 Over 15 and under 20
25 days 3 5 3 2 days... 1 1 () 1
Over 25 and under 36 20 days 35 36 39 33
days 2 3 1 Over 20 and under 25
30 days 1 2 0 days .. | 2 3 2 2
Over 30 days 3 6 1 25 days | 31 34 31 28
Over 25 and under 30
After 20 years of service: days | 3 4 3 2
Under 5 days rol © 0 0 90 days 5 5 4 5
5 days ... 1 ie) 1 2 Over 30 days 4 8 3 2
Over § and under 10
days i) - e () After 30 years of service’
10 days 4 2 3 6 Under 5 days 4 © a) (a) (a)
Over 10 and under 15 5 days ..... - 1 a) 1 2
() e 1 ‘Over § and under 10
7 13 18 days .. z - ie) iv)
. 2 3 6
i 1 1
51 56 46 a 19)
* 7 13 18
5 3 3 -
a 16 acy 1 is) 1
35 38 32
4 3 1
4 iv) 1 3 2 2
7 3 2 29 28 24
4 3 2
10 7 9
8 4 3

* Employees receiving no pald vacations in their early years of service 12 month period. The total number of days are assumed available for
are included in the overall percentage of workers provided paid vaca- use immediately upon completion of the described length-of-service in-
tions; however, they are disregarded in computing the distributions by terval.

length of service up to the service period at which they become eligible “ Provisions were virtually the same after longer years of service.
for vacations.
® Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal

either are granted @ specific number of days after com- totals. Where applicable, dash indicates no employees in this category.
plotion of the indicated tength of service, or accrue days during the next

19



The survey also examines carryover and cash-in
provisions for unused vacation time (tables 16-17).
Many full-time workers are allowed to carry over at
least some of their unused vacation days into the next
year; others can cash in some or all of their vacation
days at-the end of the year. Workers without carryover
and cash-in coverage lose unused vacation days at the
end of the year. White-collar workers are more likely
to have carryover provisions than blue-collar workers,
who,- in turn, are more likely to receive cash-in
provisions.

Paid personal leave. While nearly all employers
provide paid vacations, few provide formal personal
leave (table 18). Such leave allows employees to be
absent from work with pay for a variety of reasons not
covered-by other specific leave plans. Most commonly,
employees provided personal leave are eligible for 1 to
5 days per year. A few employees are provided as
much personal leave as needed.

Paid funeral leave, jury-duty leave, and military leave.
A large majority of full-time workers are eligible for
paid leave to attend funerals of family members (table
19). Eligible employees usually receive a set number of
days, such as 3 days, per occurrence. However, some
plans vary the number of days off by family
relationship to the deceased. For example, a plan may
provide 3 days off for the death of a spouse, parent, or
child, and 1 day off for the death of other relatives. For
employees who do not have a funeral leave plan, some
employers may provide an informal benefit or allow
employees to use other types of paid leave, such as paid
sick leave days, to attend a funeral.

Most workers are eligible for paid leave while
serving as a juror (table 20). Paid time off for jury duty
is usually provided "as needed"; employer payments

commonly make up the difference between the
employee's regular pay and the court's jury allowance.

Military leave, providing pay for absence from work
to fulfill military training or duty commitments, is
available in many establishments (table 21). A common.
provision is 2 weeks off per year, but some workers are
in establishments providing paid military leave as
needed. Pay for military leave is either regular pay or
the difference between regular pay and military pay.

Parental leave

The survey defines parental leave as paid or unpaid
time off for a new mother or father to use to care for a
child (tables 22-23). These plans are separate from an
employee's other leave plans, such as sick leave and
paid vacations, which might also be used to care for a
newborn child. Unpaid maternity and paternity leave
generally can be taken after regular paid leave is used,
and can continue for a fixed period of time. Employees
can expect to return to their own or similar jobs
following leave. Paid parental leave is rare.>

As a result of the Family and Medical Leave Act of
1993, employers with 50 or more employees are
required, effective August 5, 1993, to provide 12
unpaid workweeks of leave during any 12-month period
for various family matters, including parental leave.*
(Much of the data for this survey was collected prior to
the effective date of this legislation.) In addition,
various States require employers to provide a minimum
amount of unpaid parental leave, such as 6 weeks in
Minnesota and Wisconsin, and 4 months in California.

3 For additional details on parental leave plans, see Joseph R.
Meisenheimer, "Employer Provisions for Parental Leave," Monthly
Labor Review, October 1989, pp. 20-24.

4 For more information, see "Parental Leave Benefits Provided by
Employers,” Issues in Labor Statistics, Summary 93-1, Bureau of
Labor Statistics, 1993.



LL i

Table 116. Vision care benefits: Coverage for selected services, full-time employees, medium and large
Private establishments, 1993
Sched-
sei Covered Copay- Not H
Type of vision benefit Total | Covered in full a Ione ce ment Other? covered
Percent |
All employees |
Eye exam .. 100 94 20 37 32 10 6 }
Eyeglasses 100 100 1S 48 25 18 -
Contact lenses’ ... 100 1 3 68 18 16 g
Professional, technical, and ; , |
telated
100 92 22 33 34 10 8 H
100 100 4 45 27 21 -
100 oT 1 65 19 19 9
Clerical and sales
Eye exam ... 100 94 15 40 31 13 6
Eyeglasses 100 100 12 49 24 22 - i
Contact lenses? 100 ot 3 62 15 2t 9 |
Blue-collar and service
Eye exam 100 96 22 39 31 8 4
Eyeglasses. 100 100 16 50 25 13 -
Contact tenses? 100 31 3 72 18 12 9

1 The total is less than the sum of individual items Surgery, is normally provided under the surgical portion of
because many participants are in.plans with more than one the medical plan and is not described in this table.
type of limitation, .
S Includes plans subject to coinsurance and retail NOTE: Because of rounding, sums of individual items may
nt. ot equal totals. Where applicable, dash indicates no
3 includes plans where coverage is for elected contact employees in this category,
tenses; medically necessary contact lenses, i.c., cataract

98


goatee

Fait ohh ito

pera s

Chapter 8. Flexible Benefits
Plans and Reimbursement Accounts

Employers have traditionally offered their workers
benefit plans in a number of areas, such as medical
care, life insurance, and retirement benefits. Employees
may have a choice from among a number of plans in a
given benefit area. For example, an employee may be
offered a choice between a traditional fee-for-service
medical plan and a health maintenance organization. In
recent years, new approaches to offering benefits have
emerged. BLS currently collects data on two of these
flexible benefits plans and reimbursement accounts.
Both arrangements are governed by Internal Revenue
Code section 125.

A growing number of full-time employees in
medium and large private establishments are being
offered flexible benefits plans (table 196). These plans,
often called cafeteria plans, allow employees to design
individual benefit packages by choosing from among
several types of benefits. In a flexible benefits plan,
employers provide each worker with an amount of
“benefits credits." These credits may equal a fixed
dollar amount for each worker, or an amount that varies
among workers according to earnings, length of service,
size of family, or-other characteristic. The employee
then chooses from various benefits and benefit levels,
using credits to purchase the desired benefits. If the
credits are not sufficient to pay for the benefit,
employees may have the option to fund the difference
with pretax contributions.

Flexible benefits plans usually provide several
options, including various levels of life insurance,
separate dental choices, participation in fee-for-service
medical plans (with varying deductibles and out-of-
pocket maximums). or in alternative medical plans
(such as health maintenance organizations and
preferred provider organizations), varying levels of
accidental death and dismemberment insurance, and
long-term disability insurance coverage. Some
employees covered by flexible benefits plans may
receive cash in lieu of benefits or deposit unused credits
into reimbursement accounts. Or they may choose to
purchase short-term disability coverage, deposit credits
in a 401(k) plan, or buy and sell vacation days.

Participants are often required to purchase minimum _

levels of coverage, a basic level of life insurance, for
example.

Reimbursement accounts are offered to a large
number of full-time employees (usually white-collar) in
medium and large private establishments. These
accounts, also called flexible spending accounts,
provide funds from which employees pay for expenses
not covered by their regular benefits package.

Reimbursement accounts are usually funded solely
by employee pretax contributions, although some
accounts may be partially funded by employers.
Reimbursement accounts may be part of a flexible
benefits plan, or they may stand alone.

A’ large majority of employees eligible for
reimbursement accounts may allocate funds for health
care deductibles, coinsurances, and the cost of services
not covered by. their medical care plan, such as dental
expenses and vision exams (table 197). Eligible
employees often may use money from these accounts to
pay for dependent care expenses, generally both child
care and care for elderly or disabled relatives.
Reimbursement account funds may also be allocated
for the payment of the employees’ share of health care
premiums, and other insurance premiums, such as life
insurance or a spouse's insurance premiums.

Some accounts, known as premium conversion
plans, are established solely to allow medical plan
participants to pay required plan premiums with pretax
dollars. Although such arrangements differ from the
usual reimbursement accounts, where employees are
reimbursed with pretax money after a payment is made,
these arrangements nonetheless meet the Internal
Revenue Code requirements for a section 125 plan.

Nearly all employees participating in flexible
benefits plans or reimbursement accounts are required
to contribute toward the cost of their benefits, or are
allowed to contribute to obtain additional benefits.
These contributions usually take the form of a salary
reduction arrangement, which results in lower income
tax liabilities.

Individual benefit plans offered through a flexible
benefits plan are analyzed and included in the
tabulations for specific benefit areas in this bulletin.**

439 For information on flexible benefits plans in medium and large
private establishments, see Joseph R. Meisenheimer and William 3.
Wiatrowski, "Flexible Benefits Plans: Employees Who Have a
Choice," Monthly Labor Review, December 1989, pp. 17-23.



producing industries was nearly twice as high as that
for service-producing industries.

About 9 in 10 workers “in goods-producing
industries received medical care, and life insurance
coverage, a slightly higher proportion of coverage than
those in services-producing industries. Goods-
producing workers were also more likely to have
retirement plans. However; workers in the service-
producing industries were more likely to have long-
term disability insurance, flexible benefit plans, and
reimbursement accounts.

Benefits by union status

Workers covered by collective bargaining
agreements were more likely to receive medical care,
retirement, and life insurance coverage, than those who
were not. Sick leave was the only benefit nonunion
workers were more likely to receive, but this was more
than offset by sickness and accident insurance
coverage, where the incidence of coverage for union
workers was twice as high as that for nonunion
workers.

About 9 in 10 union workers received medical care,
retirement, and life insurance coverage, a greater
incidence of coverage than for nonunion workers.
Union workers were also more likely to receive dental
insurance than nonunion workers. Nonunion workers,
however, were more commonly provided long-term
disability insurance coverage.

The method for providing retirement income
coverage varied considerably between union and
nonunion workers. Union workers were more likely to
receive a defined benefit pension plan (81 percent
compared to 48 percent of nonunion workers).
However, only one-third of union workers were offered
defined contribution plans compared to one-half of
nonunion workers.

These findings held true for most other benefits,
with one exception. Nonunion workers were more
likely to be eligible for flexible benefits plans and
reimbursement accounts than were their union
counterparts.

Benefits for part-time employees

Paid vacations and holidays were the most common
benefits available to part-time workers; insurance and
retirement protection were the least common. Few
part-time workers within the scope of this survey
received benefits usually provided to full-time workers,
such as medical care, life insurance, private retirement
plans, or parental leave. Full-time employees in
medium and large private establishments were nearly

158

twice as likely to have retirement plans and parental
leave, and more than 3 times as likely as part-time
employees to be covered by medical care and life
insurance benefits.

Because of both the limited sample size and
incidence of benefits among part-time workers, plan
provisions could not be examined to the same extent as
for full-time workers.

The number of hours per day and hours per week
for which part-time employees were scheduled to work
varied widely. Most prevalent were work schedules of
4 or 5 hours per day, typically 5 days per week. Total
hours were frequently between 15 and 30 per week.
Part-time white-collar employees tended to work longer
hours per day but fewer days per week than blue-collar
workers.

Paid time off was the most prevalent type of benefit
program available to the part-time workforce. About
one-half of all part-time employees were eligible for
paid vacations, paid holidays, paid jury: duty leave,
funeral leave, and paid rest periods. Paid time-off was
commonly prorated based on the work schedule of the
part-time employee. For example, an employee
working 4 hours per day would receive 4 hours of pay
for each vacation day granted. .

Paid time-off benefits for part-time employees were
significantly lower than the benefits for full-time
employees. For example, part-time employees received
an average of 8 paid holidays per year, while full-time
workers received pay for 10.2 holidays.

Additionally, part-time employees received fewer
paid vacation days than full-time workers. Part-time
employees eligible for paid vacations were granted an
average of 12.3 days at 5 years of service, compared to
13.6 days for full-time workers. At 20 years of service,
part-time employees averaged 17.8 days, while full-
time employees averaged 20.4 days. *

Other types of leave were less common. Just over
one-fourth of part-time employees were eligible for
paid sick leave. Maternity leave and paternity leave,
either paid or unpaid, was provided to about one-third
of part-time workers.

Insurance benefits—sickness and accident
insurance, long-term disability insurance, medical care,
dental care, and life insurance—were available to fewer
than one-fourth of part-time workers. Similarly, two-
fifths of part-time workers were eligible to participate
in a retirement plan.

The incidence of other benefits, such as
severance pay, legal services, family-related benefits
(including child care and elder care), and health
promotion programs, was also less common than for
full-time workers.



Table 201. Other benefits: Eligibility for specified benefits,
full-time employees in goods-producing industries, medium
and large private establishments, 1993

(in percent)
Protes-
sional, | Clerical |Blue-col-
techni- | and | tar and
Benefit sayorm,|cal,and| sales | service
Ployees | related | employ- | employ-
employ-| ees | ees
ees
Income continuation plans:
Severance pay 43 | 72 | 49 | 34
‘Supplemental unemployment
benefits 9 4 4 12
Family benefits:
Employer assistance for child
care 3 6 2 2
Adoption financial assistance 6 | 14 5 4
Eldercare 34 | a6 | 38 | 33
Long-term 6 | 12 9 3
Health promotion programs:
in-house infirmary 42] 58 | 38 | 99
Wellness programs 39 | 58 | 45 | 34
Employee assistance programs .| 60 | 80 | 63 | 54
Miscellaneous benefits:
Employer-subsidized recreation
FACHIBOS snr at | 44 | a1 ar
Job-related travel accident
i 45 | 70 | 59 | 35
42 46 46 40
9 4 a | 1
Job-related 7% | 92 | 80 | “oe
Not job-related ze | 36 | 33 | 24
Flexible benefit plans ... a | 1 | 1 5
Reimbursement accounts a2 | 61 | 49 | 35

162


Table 26. Paid sick leave: Percent of full-time employees by sick feave Provision, medium and large private establish-

ments, 1993
Protes- Profes-
sional, | Clerical |Blue-col sional, } Clerical |Biue-col-
Atlem. | technic | and | tar and ‘Allem. | techni | and | lar and
Sick leave policy’ loyees {Ch and| sales Sick leave policy’ %,|eal, and] sales | service
Ployees | related | employ- | employ- Ployees | related | employ- | employ-
employ-| ees | ees employ-| ees | ees
ees ees
Provided paid annual sick leave? 100 | 100 | 100°} 100
After 25 years of service:
After 1 year of service: Under 5 days .... 4 2 2 7
Under 5 days ... 6 2 3 12 5 and under 10 days 40 | 27 44 | 48
5 and under 10 days at 30 48/45 10 and under 15 days 35 45 3t 30
10 and under 15 days .. 37 49 32 31 15 and under 30 days 4 6 4 2
15 and under 30 days 8 10 10 5 30 and under 60 days 3 2 4 2
30 and under 60 days 2 3 1 1 60 and under 120 days 5 5 6 4
60 and under 120 days, 1 2 1 1 420 and under 180 days 6 10 4 3
120 and under 180 days ... 1 2 1 1 180 days or more... 2 2 3 1
180 days or more ... is) 1 0 is)
[Provided paid per disability sick
After 5 years of service: leave’ .. 100 | 100 | 100 | 100
Under 5 days .. 5 2 3 10
5 and under 10 days. 39 27 44 45 || After 1 year of service:
10 and under 15 days 36 | 46 92 30 Under 5 days 2 1 2 5
16 and under 30 days 5 7 5 4 5 and under 10 days 9 7 10 12
30 and under 60 days 5] 6 4 4 10 and under 15 days .. 13 10 16 18
60 and under 120 days .. 5 6 8 3 18 and under 30 days 23 25 26 14
120 and under 180 days 2 4 2 2 30 and under 60 days .. 1461.17 13 12
180 days or more 0 1 v) io) 60 and under 120 days, 6 8 6 4
120 and under 180 days - "1 13 6 14
After 10 years of service: 180 days or more .... 3 5 1 2
Under 5 days ... 5 2 3 10
5 and under 10 days .. 39 27 43 | 45 || After 5 years of service:
10 and under 15 days 36 45 32 | 30 Under 5 days .. 1 oO 0 1
45 and under 30 days ... 4 7 4 2 5 and under 10 days 3 1 2 7
30 and under 60 days 4 4 5 3 10 and under 15 days .. 3 1 6 1
60 and under 120 days... 7 7 8 5 15 and under 30 days .. 6 5 8 7
120 and under 180 days 3 6 2 2 30 and under 60 days .. 31 | 2.96 33 | oat
180 days or more ... 1 1. 1 0 60 and under 120 days 30 30 | 32 | 29
120 and under 180 days . 15 16 " 20
After 15 years of service: 180 days or more .... 3 5 1 2
Under 5 days 5 2 3 9
5 and under 10 days 39 27 43 48 || Alter 10 years of service:
40 and under 15 days 35 45 31 30 Under 5 days . 1 ) 0 1
15 and under 30 days 5 7 5 3 5 and under 10 days 3 1 2 7
‘30 and under 60 days 3 2 4 3 10 and under 15 days 2 1 5 1
60 and under 120 days 6 7 6 5. 15 and under 30 days .. 3 2 4 3
120 and under 180 days 5 8 4 3 30 and under 60 days ..... 13 12 " 16
180 days or more 1 1 2/0 60 and under 120 days 43 | 44 5t 32
420 and under 180 days 26 | 3t 18 27
180 days OF MOFE wn. 5 6 4 3
5 2 3 9
39 27 43 | 46 || After 15 years of service:
35 45 31 30 Under 5 days .. 1 iy) o 1
45 and under 30 days 5 7 4 2 5 and under 10 days 3 1 2 7
30 and under 60 days... 3 2 4 2 10 and under 15 days 2 1 5 1
60 and under 120 days ... 6 6 6 5 45 and under 30 days ~. 3 3 5 3
120 and under 180 days...| 8 3 3 30 and under 60 days ... 8 9 7 1
180 days or more ... 2 2 3 1 60 and under 120 days 22 | at ar 19
120 and under 180 days ... 52 58 a7 | 46
180 days or more . 5 7 4 3
See footnotes at end of table.
27



|

Table 207. Other benefits: Eligibility for specified benefits,
part-time employees, medium and large private establish-

ments, 1993 i
7 {in percent) |
Profes- :
sional, | Clerical |Blue-col-
‘Alem. | techni: | and | tar and
Benefit Joyees (Cah and] sales | service !
ployees | related | employ- | employ- i
employ-| ees | ees
ees i
Income continuation plans: :
Severance pay 13 19 16 9
‘Supplemental unemployment
benefits 0) - 1 vy |
Family benefits:
Employer assistance for child
care 5 20 2 4
Adoption financial assistance 4 7 5 i. 4
Eldercare .. 20 28 20 18 |
Long-term care insurance . 4 3 6 2
Health promotion programs:
in-house infirmary W 40 6 8 :
Wellness programs 19 38 20 2
Employee assistance program: 38 61 48 24
Misceltaneous benefits: i
‘Employer-subsidized recreation i
facilities af 10 7 10 8

Job-related tvavel accident
it 2. | 23 | a9 | 12
16 25 12 WW

Not job-related 8 12 10 5
Flexible benefit plans 5 16 4 3 j
Reimbursement accounts. 19 37 22 W i

* Less than 0.5 percent. |

168



Table 128. Life insurance: Supplemental coverage, full-time
employees, medium and large private establishments, 1993

- Profes-
* | sional,- a Blue-
techni- |STAN cotiar
Aliem-| cal, sales and
Coverage ploy- | and re- ‘em- service
ees | lated ploy- em-
em- | ees | Ploy
ploy- ees
ees
Number (in thousands) with
basic life insurance .| 26,175| 7,369| 6,724] 12,082
Percent
Total with basic life insurance ...{ 100 100 100 100
With supplemental
72 68 51
52 55 43
1t 8 4
9 4 3
- FOL e
1 () 1
‘No supplemental
coverage .. 39 28 32 49

1 Less than 0.5 percent

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

Tabto 129. Supplemental life insurance: Maximum coverage
available, full-time employees, medium and large private
establishments, 1993

Profes-
teen | Fa har
and

. Allem-} cal, | Sigg | and
Maximum ploy- | and re- service
ees | lated | Soy. | em-
am. | |
g ees

ees

Number (in thousands) with
supplemental life insurance | 16.009| 5,326) 4,555| 6,128

Percent

Total with supplemental

coverage .. 100 | 100 | 100 | 100
Maximum specified 28 31 33 22
Dollar maximum 7 19 19 | .13
Less than $50,000 2 1 1 3
$50,000 - $99,000 1 1 1 1
$100,000 - $249,999 5 4 8 3
$250,000 - $499,999 4 6 4 3
$500,000 - $999,999 6 7 6 5
$1,000,000 or more, 3 4 5 2
Other maximum ... 1] (1) 1 1
No maximum specified 56 55 51 59
Not determinable ... 16 14 16 18

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

108



Table 154. Defined benefit plans: Provisi
of deferred vested benefits, full-time employees,

ions for early receipt

medium and

Table 155. Defined benefit plans: Portability provisions,
full-time employees, medium and large private establishments,

large private establishments, 1993 1993
Profes- Profes-
sional, ‘ Blue- sional, Blue-
techni. |Clet2l) colar techni- |“2%22!) cotar
Receipt of oe cal, pen and Portability a cal, pion and
deferred vested and service wisi and service
benefits Ploy- | related | ST” | em provisions ploy: | related| o"TM | em-
ees en Ploy ploy- ees ‘em: Bloy- ploy-
ploy- ees ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with
defined benefit plan .. 16,015} 4,405| 3,939] 7,671 defined benefit pian . 46,015] 4,405] 3,939] 7,671
Percent Percent
‘Total with defined benefit plan...) 100 100 100 100 Total with defined benefit plan ..) 100 100 100 100
Deferred vested benefits With portability provisions .. 7 8 8 7
available prior to normal Transfer of pension
| 98 97 98 99 CHOMIES -.ssssesennevees . 7 7 7 7
Single employer plan .. 5 6 7 3
46 42 46 48 Multi-employer plan ...] "2 1 1 3
52 54 51 $1 Transfer of pension
43 46 38 43 benefits ..... (an ae eae eee
Lump sum over $3,500
7 6 10 6 paid out at termination | (*) +) 0] -
2° 2 3 2 No portability provisions .......) 93 92 92 93
available prior to norma ‘
retirement age .... | 2 8 2 1 Less than 0.5 percent. -

NOTE: Because of rouriding, sums of individual items may not ‘equal totals.
Where applicable, dash indicates no employees in ‘this category.

129

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

Table 156. Defined benefit plans: Postretirement pension
increases, full-time employees, medium and large private

establishments, 1993

Profes-
sional, A Blue-
techni. |Clere@l) cofiar
All cal, and
em- | | sales | and
Item loy- and | ‘om. | Service
POY" |rolated| Sioy. | er
em | ‘ees | Ploy
ploy- ees
ees
Number (in thousands) with
defined benefit plan ... .| 16,015| 4,405} 3,939) 7,677
Percent
Total with defined benefit plan ..| 100 100 100 100
With postretirement increase
available’ ... w=] 10 10 8 W
Automatic cost-of-living
increase ... a 4 4 4 4
Discretionary increase
granted fo retirees in
the last 5 years 6 6 4 7
No postretirement increases 90 90 | .92 89

1 Total may exceed sum of individual items because employees may be
covered by more than one type of postretirement increase.



paid and unpaid parental leave, paid sick leave,
sickness and accident insurance, long-term disability
insurance, medical care, dental care, vision care, life
insurance, defined benefit pension plans, defined
contribution plans, flexible benefit plans, and
reimbursement accounts.

Data are also collected on the incidence of the
following additional benefits: Severance pay,
supplemental unemployment benefits, travel accident
insurance, nonproduction cash bonuses, prepaid legal
services, child care, adoption assistance, eldercare, in-
house infirmaries, long-term care insurance, wellness
prograras, recreation facilities, job-related and non-job-
related educational assistance, employee assistance
programs, stock option plans, stock purchase plans, and
cash profit-sharing plans.

Sample design

‘The State Unemployment Insurance (UI) reports for
the 50 States and the District of Columbia is the list of
establishments from which the sample is selected
(called the sampling frame). ‘The sample design for this
survey and the Employment Cost Index (ECD) is a 2-
stage probability sample of detailed occupations. The.
first stage of sample selection is a probability sample of
establishments; the second stage is a probability sample
of occupations within those establishments.

The sample of establishments is a subset of the ECI
sample that covers establishments having 100
employees or more at the time of selection. The ECI
sample is updated over a 4-year cycle. Each year, new
sample establishments are introduced into the survey in
selected industries, replacing previously selected
sample units in those same industries. Using this
procedure, the entire sample is replaced approximately
every 4 years.

To ensure that the sample is representative of all
establishments that began business after the various
industry samples were selected, a sample of “births”
(newly opened establishments) is added to the existing
sample each year.

The sample of establishments is selected by first
stratifying the sampling frame by industry group, and
then by region and establishment employment. The
industry groups usually consist of 3-digit Standard
Industrial Classification groups, as defined by the
Office of Management and Budget.

The number of sample establishments allocated to
each stratum (defined by industry) reflects the ratio of
employment in the stratum to employment in all
sampling frame establishments. Thus, a stratum that
contains 1 percent of the total employment within the
scope of the survey receives approximately 1 percent of
the total sample establishments. Some industries are

170

sampled at a higher rate than other industries because
of publication requirements or highly variable data.
Each sampled establishment within an industry

group (stratum) has a probability of selection
proportional to its employment. For example, consider
two establishments, A and B, with respective
employment of 5,000 and 1,000. Establishment A is
five times more likely to be selected than establishment
B.

At the beginning of each visit by a Bureau field
economist to a sampled establishment, a second-stage
probability sample of occupations is selected from the
establishment. Data are then collected for these
sampled occupations. The number of occupations
selected from an establishment varies from four in the
smallest establishments to eight in the largest
establishments. The probability of an occupation being
selected is proportional to its employment size within
the establishment.

The narrowly defined occupations are based on the
Standard Occupational Classification (SOC) system
compiled by the Department of Commerce. These
narrowly defined occupations are then classified into
the three occupational groups shown in this bulletin.

Data collection -.

Bureau field economists visit or contact sampled
establishments by telephone to collect data for the
survey. To reduce the reporting burden, respondents are
asked to provide documents describing their flexible
benefits plans; reimbursement accounts; defined benefit
pensions; defined contribution plans; medical, dental,
and vision care plans; and insurance plans. BLS
analyzes these plans in Washington to garner the
required data on plan provisions. Data on paid leave
generally are obtained directly from the employer at the
time of the visit.

Data calculation

Tabulations in this bulletin show the percent of all
employees who receive specified benefits, such as paid
holidays or medical care, as well as information on the
provisions of many of these benefits. To present
provision data, tabulations generally indicate the
percent of all employees receiving a benefit
(participants) who are covered by specified features.
For example, a tabulation may show the percent of
workers with medical care benefits who are covered by
a health maintenance organization.

The majority of tables in the bulletin indicate the
percent of employees covered by a particular benefit
plan or provision. In addition, average benefit
provisions—such as the average number of paid
holidays per year—are presented. In some cases,
tabulations indicate both the percent of employees with



Table 52. Medical care benefits: Amount and type of employee contribution for family coverage,’ full-time employees, medium

and large private establishments, 1993

Professional, technical, Clerical and sales Blue-collar and service
Al employees and related employees employees employees
‘Type and amount of
contribution a | Ne | HMO} an | Bee HMO | an | NOS | mo | an | NO | HM
plans plans plans | plans plans Plans j pians plans plans | plans plans plans
Number (in thousands) with
contributory coverage .... 13,431} 4,292} 5,355] 3,820] 1,535} 4,587) 3,447] 1,140] 7,781| 6,163] 1,617
Percent
100 100 100 100 100 100 100 100 100 100 100 100
sie) 7 e|ele;7|e)"7) eel a
a) @) T/ (Uy) () 1 ©) 1] (?) 1] Cy) (| Cd
@) 7 () 7 @) | @) a} (7) 7) ] @)] @) | @ | @ 7] @
1 1 1 1 1 2] (7) | (?) 4 1 1 1
$15.00 - $19.99 1 1 1} (2) | (8) 1 1 1 1 2 2 1
$20.00 - $29.99 4 4 3 3 3 2 2 3 1 5 5 4
$30.00 - $39.99 .... 6 6 6 5 5 5 5 4 6 8 9 7
$40.00 - $49.99 4 5 2 4 4 3 3 3 1 5 6 2
$50.00 - $59.99 4 3 5 4 3 5 3 3 3 4 4 7
$60.00 - $69.99 5 5 6 4 4 3 6 6 8 5 5 7
$70.00 - $79.99. 4 4 4 4 4 5 4 4 3 4 4 4
$80.00 - $89.99 2 2 2 2 3 2 2 2 2 2 2 1
$90.00 - $99.99 3 4 2 3 3 3 4 5 2 3 3 1
$100.00 - $124.99 9 8 9 8 8 9 10 10 9 8 7 10
$125.00 - $149.99 7 8 6 7 6 9 9 10 7 7 8 4
$150.00 - $174.99 5 4 6 5 4 6 6 5 9 4 3 4
$175.00 - $199.99 3 3 4 4 4 3 3 3 4 3 3 4
$200.00 or greater 8 6 13 8 7 11 8 7 ci 7 5 15
5 5 3 4 4 1 3 3 1 7 7 5
15 16 15 22 24 19 15 15 7 aki 1 10
3 3 2 3 4 1 4 5 3 2 2 2
1 1 1 1 1 4/()/ 8) |] 1 1 1
determinable ... 10 10 9 7 7 9 10 1 9 1 12 10
Averages
Average fiat monthly
contribution (doliars per
month) .. | 107.42] 102.48} 121.84) 113.95] 112.58] 116.94) 115.42) 112.08) 124.98} $98.72| $91.70) 124.14

1 Pians providing services or payments for services rendered In the
hospitai or by a physician. Excludes plans that provided only dental, vision
‘of prescription drug coverage. If the amount of contribution varied by either
size or composition of family, the rate for an employee with a spouse and
‘one child was used. For a small percentage of employees, the employes
Contributes the same amount for single and family coverage.

2 Less than 0.5 percent.
A composite rate is a set contribution covering more than one benefit
area, for example, health care and sickness and accident Insurance. Cost

51

cata for individual plans can not be determined.

"Amount varies by options selected under a “cafeteria plan’ or
employer-sponsored reimbursement account.

‘The average is presented for ail covered workers; averages exclude
workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equa! totals.
‘Where applicable, dash Indicates no employees in this category.



yale

“ae menial Mebane pits.

Table 122. Life insurance: Minimum benefits placed on multiple of earnings
formulas, full-time employees, medium and large private establishments,

1993
Profes- Clerical Blue-collar
All ica and
Minimum technical, | and sales ‘
employees | and related| employees employee s
employees ye
Number (in thousands) with
multiple of earnings
formula .... ovseenesnae 15,309| 5,596) 4,831 4,882
Percent
Total with multiple of eamings
formula 100 100 100 100
With minimum benefit
amount... iW 1 9 12
Less than $5,000 «) C) (") @)
$5,000 - $9,999 .. 2 2 2 3
$10,000 - $24,999 .. 7 7 6 7
$25,000 - $49,999 .. 1 1 () 1
$50,000 - $74,999 .. 1 1 1 1
No minimum specified 88 88 90 86
Not determinable .... 2 1 1 3
Average?
Average MINIMUM ....sss.srsereeres : $14,978 | $15,819 | $13,742 | $14,991

7 Less than 0.5 percent.

2 The average Is presented for all covered workers; averages exclude workers without the

plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals, Where
applicable, dash indicates no employees in this category.

105



i

Table 71. Preferred provider organizations:' Summary of
selected features, full-time employees, medium and large
private establishments, 1993

Table 72. Medical care benefits: Availability of managed care
benefits, full-time emptoyees, medium and large private
establishments, 1993

Profes- Profes-
sional, 5 Blue- sional, - Biue-
techni- | “FC! couar techni- |e coutar
All cal and | ond All call and | “and
Item em- | and | S225 | service Managed care plan em- | and | 52° | service
Ploy: | related] OTM | om- Ploy- | retated| STM” | em-
ees |" om. Ploy. ploy- ees | om. e oy. ploy-
ploy- ees ploy- ees
ees ees
Number (in thousands) in PPO Number {in thousands) with
plans 7 1,895} 1,762] 2,420 MeEdICAl CAFE «1.0000 23,519] 6,529] 5,819] 11,172
Percent Percent
Total with PPO plans ....-| 100 100 100 100 Total with medical care .. 100 100 100 100
Services subject to PPO With managed care benefits 90 92 94 87
incentive: Traditional fee-for-service
Hospital room and board ..J 96 98 98 94 with managed care
83 83 79 86 features! .. 40 33 36 47
Preferred provider
83 84 80 86 organization? 26° 29 30 22
81 81 7 84 Exclusive provider
organization? ...... 1 2 1 1
29 27 23 35 Prepaid health
. maintenance
organization¢ ... 23 28 27 | 18
90 92 87 91 Without managed care 10 8 6 13
7 4t cb} 35
5 6 6 4 1 Fee-tor-service plans with preadmissloff certification or mandatory
sseognd surgical opinion features.
44 47 4a 45 2 A preferred provider organization (PPO) is a group of hospitals and
2 28 24 19 physicians that contract to provide comprehensive medical services. To
encourage use of organization members, the heatth care plan fimits
39 | 45 | 37 37 feimbursement rates when participants use nonmember services.
3 An exclusive provider organization is a group of hospitals and
physicians that contract to provide comprehensive medical services.
Participants are. required to obtain services from members of the organization
37 | 43 | 35 | 33 — trgceive plan benef
3 2 2 4 ‘nih maintenance organization provides a prescribed set of benefits
Outpatient prescription to enrollees for d fixed payment.
16 4 12 20 NOTE: Because of rounding, sums of individual items may not equal totals.
, dash indicates no employees in this category.
8 9 7 8
8 s 6 12
5 3 9 3
(*) . 1 1

1 A preferred provider organization (PPO) is a group of hospitals and
physicians that contract to provide comprehensive medical services. To
‘encourage use of organization members, the health care pian limits
reimbursement rates when participants use nonmember services.

2 Sum of individual items ts greater than the total because many pian

participants ware in plans with more than one incentive,

3 The amount of total expenses Incurrad by the individual Is discounted
under the PPO. For example, under the non-PPO, total expenses are
$10,000; under the PPO, total expenses are discounted by 10 percent.

Less than 0.5 percent.

NOTE: Where applicable, dash indicates no employees in this category.

69



Table 18. Paid personal eave: Percent of full-time
employees by number of paid personal leave days provided
per year, medium and large private establishments, 1993

Table 19. Paid funeral leave: Percent of full-time employees
by number of paid funeral ieave days available per
occurrence, medium and large private establishments, 1993

Profes- Profes-

sional, | Clerical |Biue-col- sional, | Clerical |Blue-col-

techni- | and | tar and techni- | and | lar and

Number of days foes cal, and| sales | service Number of days Aian, [cal. and| sales | service

telated | employ- | employ- Ployees | related | employ- | employ-
employ-| ees ees employ-| ees ees

ees ees
Total with paid personal leave 100 100 100 100
1 day .. 12 13 " 14 Total with paid funeral leave 100 100 100
2 days 32 26 38 31 1 day .. ) 1 1
3 days 18 7 18 18 2 days 2 2 5
4 days 7 7 15 19 3 days 68 70 78
5 days 8 " 7 9 4 days 4 4 3 4
More than § days on 5 5 5 6 5 days 13 7 16 8
‘maximum specifi 6 10 6 2 More than 5 days 0 iv) iv) iY)
Varies by fength of service? 7 4 7 "1 No maximum specified * 4 6 5 3
Number of days not available ra) ro) e ro) Number of days not availat 2 2 3 1
‘Average days per year .. 3 3 3 3 ‘Number of days varies by rlason-
ship to decea: | 23 | 22 22 24
* Personal leave provided as needed.

? ‘The maximum number of days provided was included in the distibu- Average days per occurence .. 8 3 8 8

tion of personal leave days.
® Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

Table 20. Paid jury-duty leave: Percent of full-time
employees by number of paid jury-duty leave days available
Per occurrence, medium and large private establishments,
1993

* Less than 0.5 percent.

? Funeral leave provided as needed.

? The maximum number of days provided for any occurrence was in-
cluded in the distribution of funeral leave days.

NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

Table 21. Paid military leave: Percent of full-time
employees by number of paid military leave days available
per year, medium and large private establishments, 1993

Profes- Profes:

sional, | Clerical |Btue-col- sional, | Clerical |Blue-col

‘Alem: | techn | “and | tar and Atvem. | techni | and | far and

Number of days cal, and] sales | service Number of days MH em" Jal, and] sales | service

Ployees | related | employ- | employ- Ployees | retated | employ- | employ-
employ- ees ees employ-| ees ees

ees ees
Total with paid military leave 400 | 100 | 100 | 100
Total with paid jury-duty leave .. 100 | 100 | 100 | 100 Under 10 days 2 2 3 2
Under 10 2 2 2 2 10 days .. si | ss | st | 49
10 days... 5 3 6 6 11-14 days 8 7 | 10 7
11-19 days 2 2 i 2 15 days . 8 6 5 | 2
22:30 days 1 2 2 1 16-19 days 2 3 2 2
More than 30 en) 1 1 2 3 2 1
No maximum specified ev | e9 | es | 86 21-29 days 4 1/0 | ©
Number of days not available 4 1/0] 0 30 days 2 3 2 2
More tan 30 days 2 2 2 | 2
5 No maximum specifi 2 | 7 | a
Less than 0.5 percent.

2 ER Sly lonne provided as needed. Number of days not available 2 2 2 1
NOTE: Because of rounding, sums of individual items may not equal to- Average days year 14 4 2 “4

tals. Where applicable, dash indicates no employees in this category.

yal

* Less than 0.5 percent.
? Military leave provided as needed.

NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.



Table 104. Dental care benefits: Eligibility requirements,
full-time employees, medium and large private establishments,
1993

Table 105. Stand-alone dental plans’: Amount and type of
employee contribution for individual coverage, full-time
employees, medium and large private establishments, 1993

Profes- Profes-
sional, 7 Biue- sional, . Blue-
‘an {techni {HRA cota ay [techni [MSNA coar
cal, and cal, and
Eligibility requirement em- | Ay | sales | orice ‘Type and amount of em- | Sag | sales | comice
ploy- relatea| 2 em- contribution ploy- related} © em-
ees | em. Ploy ploy- ees Jem | POY | ploy.
ploy- ees ploy- | °° | ‘ces
ees ees
‘Number (in thousands) with Number (in thousands) in
dental care .| 17,704] 5,233] 4,620) 7,851 ‘stand-alone plans with
contributory coverage .... 6,431] 2,498) 1,928] 2,005
Percent
Percent
Total with dental care ........«| 100 | 100 |. 100 | 100
Total in stand-alone plans with
With a service requirement ...} 52 41 jl 51 60 contributory coverage .........] 100 100 100 100
-| 44 Ww 12 10
4 3 2 6 Flat monthly amount 49 41 53 55
18 14 20 19 Less than $5.00 28. 22 31 31
1 1 @) 1 $5.00 - $9.99 16 13 16 19
9 7 9 9 $10.00 - $14.99 4 3 3 4
2 1 @) 5 $15.00 - $19.99 14 (7) 2 1
6 5 6 8 @) 1] @) 1] @)
Greater than 12 months 1 C) @) 2 1 1 1 (7)
Without a service 2 1 1 3
sequirement .. 29 38 29 24 37 46 4 ce)
Closed to new employees My] Cy] () ] eC) @) 4?) |) | @)
Not determinable? ... 18 20 20 16 Not determinable Wey 11 "Wi W
Other ... 1 1 1 1
1 Less than 0.5 percent. Average®
2 Plans where service reckoned were unknown, usually because plan
documents (typically prepared by dental care provider) sj month
employer's eligibility provision. TO MARION ot en $5.90] $6.22] $6.12] $5.41

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

1 ‘These are plans that are offered separately from medical plans.

2 Less than 0.5 percent.

3 A composite rate is a set contribution covering more than one benefit

area, for example, dental care and sickness and accident insurance. Cost

data for individual plans cannot be determined.

Amount varies by options selected under a “cafeteria plan* or
reimbursement account.

‘The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

87



workers.” Paid maternity and paternity leave plans were
virtually non-existent. For plans that provided a fixed
number of days of unpaid maternity or paternity leave,
maximum benefits averaged about 4.3 months per
occurrence.

Disability benefits

Employees may be protected from loss of income
during short-term illnesses or injuries by sick leave,
sickness and accident insurance, or both. (See chapter
3.) For longer term’ or permanent disabilities,
employees may have long-term disability insurance to
replace their incomes. Short-term disability protection,
through sick leave, sickness and accident insurance, or
both, was provided to 87 percent of full-time
employees. Forty-one percent of full-time employees
were covered by long-term disability (LTD) insurance.
Sick leave and LTD insurance were more prevalent
among white-collar workers, and sickness and accident
insurance was more common among blue-collar
workers.

Survey data on paid sick leave indicate that three-
fourths of covered workers were allowed a fixed
number of days’ per year, with the average being 12.0
days after 1 year of service, 16.9 days after 5 years,
21.8 days after 15 years, and 24.5 days after 25 years.
Three-fifths of full-time employees covered by annual
sick leave plans were allowed to carry over and
accumulate unused sick leave from year to year
(cumulative plans). Of those workers in cumulative
plans, 81 percent had limits on the amount of sick leave
that could be carried over to the next year.

Of the workers with sickness and accident
insurance:

* 74 percent had their benefits fully paid by their
employer;

¢ Three-fifths had their benefits determined by a fixed
percentage of earnings, usually 50, 60, or 67
percent;

© Those with earnings-based benefits typically had a
dollar limit on the amount of the weekly benefit,
with the average being $300;

¢ The other type of benefit formula commonly
provided was a flat dollar amount per week; the
average was $156;

© Two-thirds were subject to an eligibility
requirement before being able to join the plan,
generally less than five months.

For those full-time workers -with long-term
disability insurance protection, 89 percent received

2 Most of the data on maternity and patemity leave included in the
survey were collected prior to the effective date of the Family and
Medical Leave Act.

their benefit as a fixed percent of predisability earnings,
with the most prevalent benefit being 60 percent of
monthly pay. The majority of workers with percent of
earings benefits were subject to a monthly dollar
maximum, averaging $6,861 per month. Twenty-eight
percent of workers with LTD benefits were subject to a
maximum imposed on all sources of disability income.
Such maximums were generally 70 percent or more of
predisability earnings. Other LTD features included:

* 27 percent of participants were required to
contribute to the cost of their coverage;

© Slightly less than three-fifths had to wait 6 months
after the onset of disability before beginning to
receive LTD payments;

© Seven-eighths were in plans that included coverage
for disabilities due to mental illness; nearly two-
fifths of these participants had limits placed on
mental illness coverage, usually restricting the
duration of benefits to 24 months.

Medical, dental, and vision care

Medical care was among the most widespread
benefits provided to full-time employees in medium
and large private establishments—82 percent of
workers participated in such plans. The availability of
other health-related benefits was less prevalent—62
percent of full-time employees participated in a dental
care plan, and 26 percent had vision care coverage.
Health care benefits varied little among occupational
groups. (See chapter 4.)

Forty-nine percent of medical care Participants were
covered by non-traditional plans, that is, health
maintenance organizations (HMO's) or . preferred
provider organizations (PPO's). (O's covered 23
percent of full-time workers with medical care benefits
while PPO's covered 26 percent.

Nearly two-fifths of medical care Participants were
in plans paid for entirely by the employer; one-fifth had
family coverage wholly employer financed. “When
workers contributed, their fixed monthly- premiums
averaged $32 for individual coverage and $107 for
family coverage.

For full-time employees participating in medical
care plans:

¢ Virtually all participants in traditional fee-for-
service plans were subject to an annual deductible;
the average deductible was $218;

 .The percentage of expenses paid by the plan varied
between traditional fee-for-service plans and
PPO's; traditional fee-for-service plans generally
paid 80 percent’ of expenses, while PPO's
frequently paid 90 percent or more for expenses;



Table 73. Non-health maintenance organizations: Availability
of selected cost containment features, full-time employees,

medium and large private establishments, 1993

Table 74, Non-heaith maintenance organizations:
Prehospitalization certification requirements, full-time  -
employees, medium and large private establishments, 1993

Profes- Profes-
sional, ‘ Blue- sional, 4 Blue-
ay [techni [FA colar ay | techni: {F821 coher
~. cal, | Sic, | and cal, | Sigg |_and
Cost containment feature | joy. | and | Sine | service ttem Soy. {2nd | SCS | service
ey, [related] Sav. | em eee [related] So. | em=
em- | eX | ploy- em- | POX | ploy-
ploy- ees ploy- ees
ees ees
Number {in thousands) in ‘Number (in thousands) with
non-HMO plans .... .| 18,179} 4,709] 4,268} 9,202 Preadmission certification ...| 13,395] 3,387! 3,325] 6,683
Percent Percent
Total with non-HMO plans ..... 100 100 100 100 Total with preadmission
certification .. 100 100 100 100
Preadmission certification
requirement .. 74 72 78 73 Pian does not impose
Utilization or concurrent ity ae 3 2 5 2
42 43 44 41 Plan does impose penalty’...| 97 98 95 98
51 4s 48 54 No benefit .. a 5 3 3 6
Deductible on
4 14 15 13 admission ... 35 36 38 4
Hospital audit program .. 14 14 15 43 Less than $100 1 1 | (2) 1
$100 - $199 3 4 6 2
$200 - $299 13 10 13 14
NOTE: Sum of individual items may be greater than the total because many $300 - $399 7 7 7 6
participants were in plans with more than one type of cost containment $400 - $499 ... 3 3 3 4
feature. $500 or greater .. 9 12 9 7
Reduced coinsurance,
paid by plan 34] 35 | 31 34
40 percent .. 1 1 1 1
50 percent .. 18 19 7 18
60 percent .. 4 5 5 3
80 parcent .. 3 4 3 3
‘Other percent 8 7 6 10
Reduced coinsut
paid by plan up to
maximum deductible
‘on hospital admission 10 12 9 10
Reduced coinsurance and
‘separate deductible
per admission .. 2 3 1 3
Other 7 3 2 3 3
Penalty | 8 8 9 9

70

1 Sum of Individual items may exceed total because more than one type

of Apnalty may apply.
Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.


Table 82. Health maintenance organizations: Extent of

coverage for extended care facilities, full-time employees,
medium and large private establishments, 1993

Table 83. Non-heaith maintenance organizations: Extent of
coverage for surgical services, full-time employees, medium
and large private establishments, 1993

Profes- Profes-
- sional, ‘ Blue- sional, Blue-
ay { techni | 2% conar techni: [Metical] conar
cal, | 279 | and All feat, | 294 | and
‘Type of coverage poy- and sales service Type of surgery and extent of | em- | and sales service
related em- ge Ploy- | related] © | em.
ees ploy- ees ploy-
em- | ‘ees | Ploy- em- | ‘ees | Ploy-
ploy- ees ploy- ees
ees ees
Number (in thousands) in HMO.
plans with extended care Number (in thousands) in
benefits .. 4,632] 1,589] 1,343} . 1,701 non-HMO plans with
T inpatient surgery .. .| 18,171] 4,704] 4,268] 9,199
Percent Number (in thousands)
non-HMO plans with
Total in HMO plans with outpatient surgery .... .| 18,171] 4,704] 4,268] 9,199
extended care benefits .......| 100 100 100 100
Percent
70 73 71 65 Inpatient surgery
53 56 55 50
5 5 4 5
10 9 10 10 100 100 400 100
2 2] () 3
29 ch “B 23 Covered in full .....ccecene| 13 12 10 15
8 8 6 9 ‘Subject to limits other
7 18 16 16 than major medical .....] 14 "1 9 7
1 271 C) 9 7 5 13
4 4 2 5 4 4 3 4
3 3 4 1 yea | Cy] cy
5 6 6 3 AC) EC) | Co | cD
4 3 4 6 Major medical limits only2 | 73 76 81 68
1 1 1 aia
4 3 3 6 Outpatient surgery
‘Total in non-HMO plans with
* Less than 0.5 percent. outpatient surgery 100 | 100 | 100 | 100
NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indices no employees inthis catagory. Seappat to wiwscher we) wl] wy) 7
13 9 9 16
9 6 5 13
3 3 2 3
1? cd ya) 1
(fo i ep eG nO
71 74 7 67

1 Less than 0.5 peroent.

2 Major medical limits are expressed only in terms of total benefits
payable under the plan, rather than for individual categories of care. Limits
are set as deductibles, coinsurance percentages, and overall dollar limits on

lag benefits.
Charges incurred In the outpatient department of a hospital and outside
of the hospital.

NOTE: Sum of individual tems may be greater than the total because some.

participants wera in plans with more than one type of limit. Where applicable,
dash indicates no employees in this category.

76


Contents—Continued

Tables—Continued |
Page
111. Services covered by deductible provisions 94
112. Maximum benefit provision ...... 95
113. Maximum benefit provisions for orthodontia care . 95
114, Pretreatment authorization ...... 96
Vision care:
115. Fee arrangement and financial intermediary .. 97
116. Coverage for selected services .... 98
Life insurance:
117. Summary of provisions . 101
118. Method of determining basic coverage 101
119. Flat dollar benefit amounts ....... 102
120. Multiple of earnings benefit amounts 103
121. Maximum benefits placed on multiple of earnings formulas .. 104
122. Minimum benefits placed on multiple of earnings formulas .. 105
123, Reduction in benefits for older workers . 106
124. Age at which benefits for older workers are first Teduced 106
125. Retiree coverage .... 106
126. Reduction in benefits for retirees .. 107
127. Methods of reducing benefits for retirees 107
128. Supplemental coverage .. ‘ 108
129. Supplemental life insurance: Maximum coverage available 108
130. Availability of supplemental coverage by type of basic plan .. 109
131. Dependent coverage ... 109
132. Spouse life insurance: type and amount of coverage 110
133, Child life insurance: type and amount of coverage ... 110
134. Accidental death and dismemberment: method and amount of coverage .. 1
135. Eligibility requirement ... 11
Defined benefit plans:
136. Summary of plan provisions .... 119
137. Primary formula and availability of alternate formula 119
138. Terminal earnings formula .. 120
139. Definition of terminal earnings 120 \
140. Types of earnings included in earnings-based formulas 121
141. Dollar amount formula .. 121
142. Integration with Social Security . 121
143. Maximum benefit provisions .... 122
144. Availability of lump sum benefits at retirement 122
145. Postretirement survivor benefits . 123
146. Preretirement survivor benefits 123
147. Average replacement rates for specified final earnings and years of service at
selected ages ...... 124
148. Requirements for normal retirement 125
149. Requirements for early retirement 126
150. Early retirement reduction ..... 127



Table 121. Life insurance: Maximum benefits
formulas, full-time employees, medium and targe private establishments,
1993 .

placed on multiple of earnings

Profes-
i . Blue-collar
Maximum empiyees technica, | and sales san
ployees | and related| employees empl oye 6
employees
Number (in thousands) with
multiple of earnings
formula ... 15,309) 5,596 4,831 4,882
Percent
Total with multiple of earnings
formula ... wn 100 100 100 100
With maximum benefit
amount ... 52 53 53 50
Less than $50,000 2 1 2 2
$50,000 - $99,999 18 17 18 17
$100,000 .. 6 7 7 5
$100,001 - $249,999 7 7 7 7
$250,000 - $499,999 12 14 10 12
$500,000 .. 2 3 2 2
$500,001 - $999,999 2 2 2 1
$1,000,000 or more 3 3 4 3
No maximum specified 46 45 46 48
Not determinable .... 2 1 1 3
Average’ ~
Average maximum ... $263,286) $253,525] $291,085] $245,953

1 The average is presented for all covered workers; averages exclude workers without the

pian provision.

NOTE: Because of rounding, sums of individuat items may not equai totals. Where
applicable, dash Indicates no employees in this category.

104



Table 79. Non-health maintenance organizations: Extent of
coverage for extended care facilities, full-time employees,
medium and large private establishments, 1993

Tabie 80. Non-health maintenance organizations: Types of
limitations on extended care facilities, full-time employees,
medium and large private establishments, 1993

Profes- Profes-
sional, q Biue- sional, a Blue-
ay [techni |M2FAI colar Ay | toot | 12%) cone
- and
em- | 7 | sales | and em- | 4 | sales | and
Extent of coverage _ | and em- | Service Type of coverage ploy- and om- service
Ploy related] poy. | em cos jrolated) Sor | em.
em- els Ploy- em- eee ploy-
ploy- ees ploy- ees
ees ees
Number (in thousands) in Number (in thousands) in
non-HMO plans with fnon-HMO plans with
extended care benefits .......] 14,733] 3,868] 3,642] 7,223 extended care benefits 14,733; 3,868] 3,642) 7,223
Percent Percent
Total in non-HMO plans with Total in non-HMO plans with
extended care benefits .......}. 100 100 100 100 extended care benefits .......} 100 100 100 100
First dollar coverage only! ....) 13 13 11 14 Covered in full ene 2 2 2 2
First dollar coverage then Subject to limits other than :
major medical 65 63 65 67 major medical ... 7 74 7 79
Major medical only2 21 24 24 19 Limit on days .. 72 70 70 75
Limit on dollars ... 5 5 4 6
Separate coinsurance 9 7 7 1
1 Inciudes plans in which all expenses were reimbursed for the full Limited to maximum
‘semiprivate room rate, for a specified dollar amount, or for a limited or Percentage rate of

ted number of days.

Major medical limits are expressed only in terms of total benefits
Payable under tha plan, rather than for individual categories of care. Limits
are set as deductibles, coinsurance percentages, and overall dollar limits on
plan benefits.

NOTE: Because of rounding, sums of individual Items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

14

7 14 17 18
21 24 24 19

| Less thari 0.5 percent.

2 Major medicat limits are expressed only In terms of total benefits
payable under the plan, rather than for individual categories of care. Limits
are Set as deductibles, coinsurance percentages, and overall dollar timits on
plan benefits.

NOTE: Sum of individual items may be greater than the total because some
participants were in plans with more than one type of fimit.. Where applicable,
dash indicates no employees in this category.



supplemental coverage is more prevalent for employees
who have their basic insurance determined by a
multiple-of-earnings formula than for those with a flat
“dollar amount of coverage.

Life insurance coverage for dependents is also
widely available to participants. Workers with this
coverage are usually required to pay the entire
premium. The most prevalent method used to provide
dependent coverage is a flat dollar benefit. In such
plans, spousal coverage typically provides benefits of
$5,000 or more while coverage for children usually
offers benefits of $1,000, $2,000, or $5,000 per child.
Among other plans, the employee often has the option
to select specific benefits.

Service requirements

Life insurance participants often have to work a
minimum period to qualify for the plan. The most
prevalent service requirements for such workers are 1
to 3 months. Most of the other participants do not have
to meet any service requirement to qualify for benefits.

Accidental death and dismemberment
Accidental death and dismemberment (AD&D)
insurance is available to a large majority of full-time

employees in medium and large private establishments.
This insurance provides additional benefits if a worker
dies or loses an eye or a limb in an accident. The
AD&D benefit commonly equals the basic life
insurance benefit for accidental death, and a portion of
that benefit for dismemberment.*

Survivor income benefits

A small percent of full-time employees in medium
and large private establishments are covered by plans
that provide a monthly income to surviving members of
a deceased employee's family. These survivor income
benefits are in addition to other benefits, such as basic
life insurance and survivor pension benefits. Survivor
income payments are generally a percentage of the
employee's pay or a flat dollar amount. Benefits usually
continue for 24 months, although some continue until a
specific event occurs, such as the surviving spouse
remarries or reaches age 65, or surviving children reach
a given age.

28 For more information on accidental death and dismemberment
benefits, see Cynthia Thompson, "Compensation for Death and
Dismemberment,” Monthly Labor Review, September 1989, pp. 13-17.


4
5

Table 100. Medical care benefits’: Eligibility requirements,
full-time employees, medium and large private establishments,
1993

Tabie 101. Non-heaith maintenance organizations:
Pre-existing condition provisions,’ full-time employees,
medium and large private establishments, 1993

Profes- Profes- a
sional, . Blue- sional, . lue-
techni {“282l] conar techni: {MCA coniar
All | cal, | 294 | and Al | cat, | 20 | and
- 7 - 4 les i
Eligibility requirement em- | and | SHS | service item em- | and om. | service
Ploy | related |e Ploy- | rotated em-
ees ploy- | om ees Ploy-
em- ploy- em- ees Ploy-
ploy- ees ees ploy- ees
ees ees
‘Number (in thousands) with Number (in thousands) in
medical care .. .}| 23,519] 6,529} 5,819} 11,172 non-HMO plans ... 18,179{ 4,709] 4,268} 9,202
Percent Percent
Total with medical care .... 100 100 100 Total with non-HMO plans ........ 100 100 100 100
With a service requirement ... 44 35 43 49 Pre-existing condition clause 57 54 62 55
13 13 12 13 No pre-existing condition
5 3 3 7 clause ...... 43 46 38 45
7 14 21 16
4] (7) 1 2 ' .
7 4 6 8 A pre-existing condition is any ailment present at the time the
2 1/(@) 3 gadicipant enrolls in the plan. Plans will typically deny or limit coverage of
(?) (2) (?) () ‘such conditions for a specific time period following enroliment.
(7) | (7) - (?) NOTE: Because of rounding, sums of individual items may not equal totals.
Without a service ‘Where applicable, dash indicates no employees in this category.
FEQUIFEMENE crsssseseseeneen] 32 39 32 28
Closed to new employees...) (7) | (7) | (#) -
Not determinable’ .... 24 26 25 23

1 Plans providing services or payments for services rendered in the
hospital or by a physiian. "Excludes plans that provided ony dental sion,
of prescription drug coverage.

2 Less than 0.5 percent.

3 Plans where service requirements were unknown, usually because plan
documents (typically prepared by health care provider) did not specify the
employer's eligibility provision,

NOTE: Because of rounding, sums of individuat items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

Table 102. Medical care benefits: Effect of retirement on
coverage,’ full-time employees, medium and large private
establishments, 1993

Profes-
sional, Blue-
techni- |OTCA conar
Al and
‘ em | | sales | and
Retiree coverage and ‘service
. Ploy: | related soy em-
ees | om. ploy- ploy-
ploy- ees
ees
‘Number (in thousands) with
medical care ..... .| 23,519} 6,529] 5,819] 11,172

Percent

Total with medical care .. 100 100 100 100

With retiree coverage -| 52 59 55 46
Without retiree coverage ....... 42 37 4a 44
Not determinable .... 7 4 4 9

1 Plans providing services or payments for services rendered in the
hospital or by a physician. Excludes plans that provided only dental, vision,
or prescription drug coverage.

NOTE: Because of rounding, sums of individuat items may not equal totals.
‘Where applicable, dash indicates no employees in this category.



annually after 1 year of service. The standard error for
this estimate is 0.75 days.

Standard errors cannot be computed for table 147.
The data shown in this table are projections based on
models of the plan provisions.

Mathematical details on chart showing esti-
mates and generalized standard errors
Each estimate used in the production of the tables in
this bulletin has an approximately normal distribution.
Standard errors for the percentage estimates were
computed from a representative portion of the 1993

where:
S = standard error
P = percentage estimate from the bulletin
e = exponential function

In = natural logarithm function.

For the 1993 Employee Benefits Survey, -

a = ~-1.037145, b = -0.017285, c = -0.187576, and
d=0.007293.

survey estimates using a method called “balanced
repeated replication." Estimates are produced for each
of 64 half-sample replicates, and the variability or
standard error is calculated from these estimates. To
simplify their presentation, a curve was fitted to the

These are regression coefficients. The curve fits the
data with R? = 0.90034 and no definite pattern in the

s 3 : : residuals.
standard error estimates using regression techniques The equation of the curve was obtained empirically,
(chart A-1). using the following equation:

The curve's equation is:

[a+ofintt00~ P)? incry} + efincPy}? -+a{incPyin(.00- Py}? ] S=aP? (100-P)°.
= Pe’

Chart A-1. Generalized standard errors, medium and large private establishments, 1993

‘Standard error
2.6 -

ye ee nae See
2
18
1.6
1.4

0 10 20 30 40 50 60 70 80 90 100
Percent estimate

173



Table A-3. Standard errors for table 11 — Paid holidays and
vacations: Average number of days, full-time employees,
medium and large private establishments, 1993

Profes-
- : sional, 5 Blue-
ay | techni |°8F8l) conar
cal, and
om 4 sales A
Item ploy- and | ‘em. | service
e oy related ploy- | em
em- | ‘ees | Ploy
ploy- ees j
ees |
i
Paid holidays ...... sesso 0.12 | 0.17 | 0.21 | 0.16 |
Paid vacation by minimum |
Jength of service
requirement:
After 1 year .. 08 16 12 2
After 3 years 07 |° 19 | at | 08 i
After 5 years 10 20 14 14
After 10 years 10 20 AS 12
After 15 years 10} 19 16] 13 |
After 20 years 13 22 AZ 18 H
After 25 years .. 16 24 20 21 {

After 30 years .. 7 24 24 24 |

Table A-4. Standard errors for table 17 — Paid vacations: Average number of days by length of service and
cash-in/carryover provisions, full-time employees, medium and large private establishments, 1993 i

-_ Cash-in, ‘ ‘
Vacation days by minimum “ Carryover A Cash-in and | No cash-in or
length-of-service requirement | Al! plans bool a only Cash-in only | “Canyover | carryover
0.08 0.15 0.18 0.38 0.58 0.10
07 4 16 35 57 09 |
10 16 19 38 64 13 i
After 10 years .... 10 -16 20 37 62 12
After 15 years .. 10 AS 20 40 54 15
After 20 years .. 13 19 23 45 53 18
After 25 years 16 21 26 50 58 24
After 30 years .. 17 22 29 55 59 23

NOTE: Computations of average excluded workers with zero vacation days.

176



MNS

Table 54. Medical care benefits: Coverage for selected services, by type of plan, full-time employees, medium and large private
establishments, 1993

Professional, technical, Clerical and sales Blue-collar and service
All employees and related employees employees employees
Categories of care
at | Ae | HMO} an] NCS P HMO] an | Ne | Mo] an | Nm | Mo
plans plans plans | plans plans plans | plans plans plans | plans b plans
Number of employees (in
thousands) .. .| 23,519} 18,179} 5,340] 6,529] 4,709} 1,820] 5,819] 4,268] 1,550] 11,172} 9,202] 1,970
Percent
Hospital room and board 100 100 100 100 100 100 100 100 100 100 100 100
Inpatient surgery ... 100 100 100 100 100 100 100 100 100 100 100 100
Outpatient surgery’ . 100 100 100 100 100 100 100 100 100 100 100 100
Inpatient physician visits .. 100 100 100 100 100 100 100 100 100 100 100 100
Office physician visits .. 100 100 100 100 100 100 100 100 100 99 99 100
Diagnostic X-ray and
laboratory 100 100 100 100 100 100 100 100 100 100 100 100
Extended care? 82 81 87 84 82 87 86 85 87 80 78 86
Home health care? ... 86 82 96 88 84 97 89 86 96 83 80 96
Hospice care .. 65 70 49 67 72 52 68 73 53 63 67 43
inpatient mental health 38 99 93 99 99 96 97 98 92 97 99 92
‘Outpatient mental health 97 96 99 98 97 99 97 97 98 96 96 99
Alcohol abuse treatment
Inpatient detoxification? 98 98 100 99 98 100 98 97 99 99 99 99
Inpatient rehabititation* 80 85. 62 78 85 62 79 86 60 82 86 65
Outpatient rehabilitation+ 82 84 7 82 83 78 82 84 7 83 84 78
Drug abuse treatment
Inpatient detoxification? 98 97 99 98 98 100 97 96 98 98 98 99
Inpatient rehabilitation’ 78 83 62 77 83 62 76 83 59 80 83 63
‘Outpatient rehabilitation* 80 81 7 81 82 78 8t 82 77 |. 79 80 76
Hearing careS ot 13 94 37 14 94 3t 8 95 28 14 93
Physical exam 42 25 99 49 2g 100 46 26 99 36 23 99
Well-baby care 48 33 98 56 39 98 55 39 98 39 27 97
immunization and inoculation . 37 19 98 43 22 97 40 18 98 31 7 98
Birthing center ...... 24 30 4 20 27 3 22 238 5 27 32 5
1 Charges incurred in the outpatient department of a hospital and 4 Rehabilitation is designed to alter abusive behavior in patients once
‘outside the hospital. they are free of acute physical and mental complications,
‘Some plans provide this care only 10 a patient who was previously

Plans provide, as a minimum, coverage for hearing examination
hospitalized and is recovering without need of the extensive care provided expenses. .
by a general hospital.

3 ‘Detoxification is the systematic use of medication and other methods NOTE: Because of rounding, sums of individual items may not equal totals.
under medical supervision to reduce or eliminate the effects of substance ‘Where applicable, dash indicates no employees in this category.

53



Table 50. Medical care benefits: Requirements for employee contributions, by type of funding arrangement, full-time
employees, medium and large private establishments, 1993

Professional, technical, Clerical and sales Blue-cotlar and service
All employees and related employees: employees employees
Contributory status .
au | Nom) mo | an | NOM | Mo | an | NOTM Tio | an | Nom | tivo
plans plans plans | plans plans plans } plans plans plans | plans plans plans
‘Number (in thousands) with
single coverage for medical
care .. 23,519} 18,179] 5,840] 6,529] 4,709] 1,820} 5,819] 4,268] 1,550] 11,172! 9,202) 1,970
Number (in thousands) with
family coverage for medical
” care... | 23,406 18,067} 5,339] 6,496] 4,677] 1,819] 5,798) 4,249) 1,550] 11,111} 9,141) 1,970
Percent
Single coverage .
Total with single coverage
for medical care »-| 100 100 100 100 100 100 100 100 100 100 100 100
Employee contributions
not required servers] OF 40 30 31 32 28 32 33 29 44 47 31
Employee contributions .
required 61 60 65 67 67 68 65 66 63 55 53 64
Not determi 2 1 5 2 1 4, 3 1 8 1 1 4
Family coverage
Total with family coverage
for medical care 0. 100 100 100 100 100 100 100 100 100 100 100 100
Employee contributions.
not required at 24 13 15 17 9 ra 18 15°] 28 31 14
Employee contribi
required .. 7 74 80 82 82 84 79 81 74 70 67 82
Not determinable 3 2 7 3 1 6 4 1 abl 2 2 4

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

49



Table 4. Other benefits: Eligibility for specified benefits, full-time employees, medium and large private establish-

ments, 1993
Professional, technical, Clerical and sales Blue-collar and service
Benefit Allemployees | and related employees employees employees
Total number of employees 28,728,207 7,745,345 7,399,191 13,643,670
Income continuation plans:
Severance pay ... 12,090,820 4,959,576 9,545,013 4,186,232
‘Supplemental unemployment benefits| 1,216,266 106,399 i 1,019,263
Family benefits:
Employer assistance for child care .. 1,918,382 941,699 465,114 511,569
Adoption financial assistance 1,983,285 830,098 632,689 520,499
9,003,023 2.574.987 2,384,434 4,043,603
1,618,730 , 558,893 406,407
9,228,463 3,141,580 1,752,318 4,334,566
Wellness programs 10,647,073 3,921,672 2,789,704 3,935,697
Employee assistance programs 17,688,956 5,736,546 4,698,951 7/252,860
Miscellaneous benefits:
Employer-subsidized recreation
facilities .. 7,658,068 2,918,795 1,777,522 2,961,751
Job-related travel ac 42.771,262 4,555,449 3,835,565 4.380248
Nonproduction bonuses 10,793,340 2,869,952 2,782,305, 5,141,082
Prepaid legal services 1,912,102 845 421,728 1,101,529,
Education assistance:
20,773,936 6,575,782 5,318,427 8,879,726
6,308,569 2,001,822 1,582,504 2,724,243
3,345,312 1,599,367, 942,202 803,743
14,849,030 5,279,446 4,555,168 5,014,416
11



Chapter 4. Medical, Dental,
and Vision Care

Medical Care
‘

Medical care benefits are provided to a large
majority of full-time employees in medium and large
private establishments. The Employee Benefits Survey
covers a number of medical care benefit provisions
(table 49), including:

Required employee contributions,

‘Types of plans,

Coverage for hospitalization and surgery,

Plan cost containment features,

Prescription drug benefits,

Mental health and substance abuse treatment
benefits,

© Coverage for retired workers.

ecoecwee

These topics are discussed throughout this chapter.

Employee contributions

The majority of full-time participants have to pay
part of the cost for their medical benefits—whether for
individual or family coverage (tables 50-52). As
tracked by the Employee Benefits Survey, the
percentage of participants required to contribute toward
their coverage, and the required contribution, have
steadily increased over the past several years, Blue-
collar workers are more likely to have both individual
and family coverage fully financed by the employer
than are white-collar workers.

Employees required to contribute toward the cost of
their medical care coverage may be given the
opportunity to do so with pretax dollars (table 53).
These employees have the advantage of reducing their
taxable income when purchasing medical coverage.
Pretax contributions may be required or optional, and
they may be offered as part of a flexible benefits
arrangement. (For definition, see chapter 8.)

Type of medical care plans

Full-time workers with medical benefits are covered
by one of three types of plans—a traditional fee-for-
service plan, a Preferred Provider Organization (PPO),
or a Health Maintenance Organization (HMO) {tables
54-61) These plans represent differences in fee

arrangements, that is, the method of selecting medical
service providers and paying for care.

Fee-for-service plans—the most prevalent fee
arrangement—allow patients to chose any provider and
pay for specific medical procedures as expenses are
incurred. There are generally three arrangements for
financing plan benefits: Self-insured plans, commer-
cially insured plans, and Blue Cross/Blue Shield plans.
Self-insured plans (in which the plan
sponsor—typically the employer—bears the financial
tisk of paying for covered medical services) cover the
largest number of fee-for-service participants.
Commercially insured plans and Blue Cross/Blue
Shield plans cover most of the other fee-for-service
participants. In addition, a small proportion of fee-for-
service participants have their benefits financed by
more than one source.

Establishments that self-insure their medical care
benefits may enter into an “administrative services
only" (ASO) contract with a third party to pay claims
and handle other administrative details (table 62). In
such a case, the employer is still responsible for
financing all medical care claims. Another arrangement
available to self-insured plans is a minimum premium
plan (MPP), which is insurance coverage to pay claims
above a specified amount. Such arrangements limit the
employer's liability in the case of catastrophic
expenses,

PPO's, which have become widespread since first
studied in the Employee Benefits Survey of medium
and large private establishments in 1986, offer a higher
level of reimbursement for services rendered by
designated health care providers (such as hospitals and
physicians), although participants are free to choose
any provider. Designated providers agree in advance to
a given fee schedule.

Financing arrangements for PPO's are similar to
those used for fee-for-service plans. Most PPO's are
financed through a commercial insurer, a Blue
Cross/Blue Shield organization, or are self-insured.

PPO's can be considered a type of fee-for-service
plan because care providers are not reimbursed until
services are performed. In this way, fee-for-service
plans and PPO's can be contrasted with HMO's
(described below), which prepay providers a fixed


Plans with surgical benefits often require enrollees
to satisfy a deductible for in-hospital procedures. When
outpatient surgery is needed, however, a deductible
requirement is less common. Generally, when
deductibles do not apply for in-hospital surgery, they do
not apply for outpatient procedures either.

Outpatient physicians visits and diagnostic
services

Nearly all health care participants have coverage for
physicians’ visits and diagnostic x-ray and laboratory
tests (DXL) (tables 54, 55, and 58). Expenses for
physicians' office visits and DXL are generally covered
as a percentage of usual, customary and reasonable
charges and are subject to an annual deductible and a
lifetime maximum benefit.

Notable differences in physicians’ office visits are
evident by type of medical care provider. Although
most HMO's require copayments for office visits,
copayments are virtually nonexistent in fee-for-service
plans. In addition, PPO's often require copayments for
office visits. Copayments for office visits in HMO and
PPO plans are usually minimal, such as $5 and $10 per
visit.

Prescription drug benefits

Virtually all participants have medical plans that
cover outpatient prescription drugs (tables 84-88).
Inpatient prescription drugs are always covered under
hospital miscellaneous services, generally in the same
fashion as room and board charges. Outpatient
prescription drugs are covered under separate
provisions of the medical plan.

Coverage for outpatient prescription drugs differs
by type of medical plan. Usually, in non-HMO plans,
outpatient prescription drugs are covered under general
plan limitations; that is, before any benefits are
provided, the participant has to meet a yearly
deductible. Services are then covered at the applicable
coinsurance rate. However, in HMO's, prescriptions are
usually subject to a minimal copayment, commonly $3
or $5 per prescription.

HMO participants are somewhat more likely than
their non-HMO counterparts to have prescription drugs
covered in full. However, HMO participants are also
more likely not to have prescription drug coverage at
all.

Perhaps due to the rapidly rising cost of prescription
drugs, medical care plans are turning to a variety of
alternatives to lower both plan and patient costs. These
alternatives include:

e Encouraging patients to have pharmaci¢s substitute
less expensive generic drugs for brand-name drugs;

¢ Setting up mail order programs for drugs needed on
a routine basis;

¢ Establishing relationships between plans and
selected pharmacies to provide drugs at a lower
cost.

Pharmacies can often fill a prescription using either
a brand name drug or a generic drug. Fee-for-service
participants may receive higher reimbursement for
obtaining generic rather than brand name prescription
drugs, when generic drugs are available. Generic drugs
cost less than brand name drugs.

Mail order drug programs are also often available to
fee-for-service participants. These programs supply
drugs for maintenance purposes, that is, drugs required
on a continuous basis. In such arrangements,
participants often receive a higher reimbursement or
pay less for mail order drugs than for drugs purchased
directly from a pharmacy.

Some fee-for-service participants. may receive
higher reimbursements if prescriptions are filled at
certain pharmacies with discount policies. The plan
Providers negotiate the price of prescriptions with the
pharmacies, usually at cost plus minimal dispensing
fees. Group HMO plans normally have an in-house
pharmacy, where minimal copayments are required for
prescriptions. IPA HMO plans, on the other hand,
might be affiliated with "discount" pharmacies, that
also provide prescriptions with minimal copayments.'>

Mental health coverage and substance abuse
treatment

Mental health coverage, though available to nearly
all participants, is frequently subject to more restrictive
limitations than other illnesses (tables 89-92). Medical
care participants with mental health benefits frequently
have more restrictive hospital coverage for mental
illness than for other ailments. Plans commonly limit
the duration of hospital stays (often to 30 or 60 days per
year for mental health care, compared to 120, 365, or
unlimited days for other illnesses) and frequently
impose a separate, lower dollar maximum on covered
hospital expenses (such as a lifetime maximum of
$50,000 on all mental health benefits).

Even more restrictive is coverage for mental health
cate outside the hospital (psychiatric office visits).
Nearly all participants with mental health care coverage
are subject to limits for outpatient care. Outpatient
mental health care is commonly covered for fewer
visits per year than other outpatient services, and it is
subject to maximum dollar limits on annual payments.

13 For a more comprehensive discussion on prescription drug
coverage, see Cathy Baker and Natalie Kramer, "Employer-Sponsored
Prescription Drug Benefits," Monthly Labor Review, February 1991,
pp. 31-35.


a

i
:
i

Table 78. Hospital room and board coverage: Copayment provisions,’ by type of plan, full-time employees, medium and large

private establishments, 1993

Professional, technical, Clerical and sales Blue-collar and service

All employees and related employees employees employees
Non-HMO plans. Non-HMO plans Non-HMO plans Non-HMO plans
‘Type of copayment provision Pre- Pre- Pre- Pre-

HMO | Fee- | ferred | HMO
plans? } for- pro- | plans?
service! vider
plans? | organi-
zation?

Fee- | ferred | HMO | Fee- | ferred | HMO | Fee- | ferred
for- pro- | plans? | for- pro- | plans? | for- pro-

service| vider service] vider service} vider
plans? | organi- plans? | organi- plans’ | organi-
zation’ zation? zation?

‘Number (in thousands) with
separate COpAyMENE ...cssere

672| 1,378: 724 183 | 360) 258 196| 287 264, 293 732 202

Total with separate copayment | 100 100 100 100

Per confinement 75 64 84 91
(4) 1 to | (*)
- - 13 -
27 37 18 36
1 3 5 5
15 14 10 10
16 8 7 15
6 : 8 21
(4) | 4) - 1
9 2 3 3
1] (4) . -
copayment amount per
year ..., 10 1 12 13
Copayment per year 5 9 2 4
‘Copayment per day 21 1 23 7
Copayment limited to a
specified number of days - 25 1 -

100 100 100

3
8
3
8

49 | 79 | 80 | 70] 8 | 63 | 69} 90
1 13 1 2 6] - 1 | 10
- 8 : : wf] - : 12
19 | 15] 19 | 25} 18 | 25] so | 23
2 8] (4) 4 1 1 3 7
6} 11 14] 32] | 2 6 1
9} 15 | 25 6| 13] 10 8] 25
: 7 3] - 7 o] - | +10

(4) : 1 | (4) - 0 0 :
3 3 15 2 5 9 2] (4)

(4) - 2] (4) - - (4) -
1 to] 4 1] 13 6 1 13
a 3 7; 1 5 8 2
2| 2] 17 1] 17 | 34 1] 31

37 1 - 18 2 - 22 :

‘ A copyament Is the amount of covered expenses that an individual
rnust pay before any charges are pald by the medical care plan.

2 ‘Includes federally qualified (those meeting standards of the Health
Maintenance Organization Act of 1973, as amended) and other HMO's
delivering comprehensive health care on a prepayment rather than
fee-for-servce basis.

3 ‘A preferred provider organization (PPO) is a group of hospitals and
physicians that contracts to provides comprehensive medical services. To
encourage use of organization members, the health care plan fimits
reimbursement rates when participants use nonmember services.

3 These plans pay for specific medical procedures as expeses are
incurred.
4 Less than 0.5 percent.

These are plans where a limit is placed on the maximum copayment
an individual is responsible for during the year. For example, an individual
is subject to a copayment of $100 per confinement with a fimit of $300 per
year.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

73



—

Table 159. Retirement plans: Participation in combinations
of plans, full-time employees, medium and targe private
establishments, 1993

TORR BET Ser NEAT RTSTIEH oF IE

(in percent)
Profes-
sional, | Clerical | BMS
Atem. | teen | and | Col
Type of plan cal, and) sales
ployees service
related | employ- employ-
employ-| ees
ees ees
Total with defined benefit pension ...; 100 100 100 100
With:
No other plan .. ss | 40 | 46 | 67
Savings and thrift plan 31 43 38 20
Deferred profit plied pian | 5 4 5 5
Savings and thrift and deferred
profit sharing J o4 1 1 1
Money purchase pension 3 3 2 3
Other combinations .. 6 9 7 4
Total with savings and thrift 100 100 100 100
With:
18 13 14 26
59 64 60 53
Deferred profit sharing plan 9 7 11 9
Defined benefit pension and
deferred profit sharing 2 1 2 3
Money purchase pension 4 6 5 3
Other combinations. 8 9 | 6 6
Total with deferred profit sharing.....| 100 | 100 | 100 | 100
With:
46 40 46 49
20 20 7 22
19 23 22 18
5 2 4 6
2 3 | 2 2
Other combinations ...... 8 12 9 6

NOTE: Because of rounding, sums of individual items may not equal
totals. Where applicable, dash indicates no employees in this category.

135

Table 160. Savings and thrift plans: Summary of provisions,
full-time employees, medium and large private establishments,
1993

Profes-
sional, 5 Blue-
ay | techni [P28 conar
em- cal, sales | 2nd
Item loy- | and em. | Service
eee related) em-
em- eee ploy-
ploy- ees
ees
Number {in thousands) with
savings and thrift plans .......|_ 8,284] 2,933} 2,470} 2,880
Percent
‘Total with savings and thrift
plans ... 100 100 100 100
Pre-tax contributions
allowed ........ 99 100 99 98
Transfer/rollover
contributions allowed ......} 51 53 52 47
Employee choice of
investments for
employee contributions ...J 86 88 87 84
Employee choice of
investments for
employer contributions 58 59 61 55
immediate full vesting 34 34 34 33
Loans permitted .. 48 48 48 49
Withdrawals permitted a7 45 51 45

NOTE:, Bacause of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

Table 161. Savings and thrift plans: Transfer and rollover
provisions,’ full-time employees, medium and large private

establishments, 1993
Profes-
sional, " Blue-
teohni- |eHCal) covar
All and
em- cal | sales | 2°¢
Item. and service
ploy- em-
ees [related] Soy. | em
em- cee Ploy-
ploy- ees
ees
Number (in thousands) with
savings and thrift plans .......) 8,284] 2,933} 2,470] 2,880
Percent
Total with savings and thrift
plans .. 100 100 100 100
Transfers/rollovers allowed ...} 51 53 52 47
Transters/rollovers not
allowed ... 43 43 4a 42
Not determinable 7 4 4 an

1 Relates to the allowance of transfers/rollovers of contributions and
eamings from the previous employer's plan.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.



Table 152. Defined benefit plans: Requirements for disability Table 153. Defined benefit plans: Vesting requirements, i
retirement, full-time employees, medium and large private full-time employees, medium and large private establishments, |
establishments, 1993 1993 |
- Profes- Profes-
sional, 5 Blue- sional, Blue-
reaiteneasir | At [SEP] ana | Sta as [ae ana | oe
lequirements for , it l, and
disability soy: and sales service requratments ploy. and sales service |
retirement! Ree related | coy. | om eee | felated) sioy. | em
em- | "ees | Ploy: ~~ em- | ‘ees | Ploy: |
ploy- | ~ ees Ploy- ees |
ees ees t
Number (in thousands) with Number {in thousands) with
defined benefit plan 16,015] 4,405] 3,939] 7,671 defined benefit plan .. 16,015] 4,405] 3,999} 7,671/
Percent Percent :
Total with defined benefit plan..} 100 | 100 | 100 | 100 Total with defined benefit plan ..| 100 | 100 | 100 | 100
With disability retirement Immediate fult vesting MM] ey} a pe
i 69 | 63 | 66 75 Cliff vesting? .... 96 94 | 94 98
W 9 13 W 92 es | 88 95
No age requirement...) 96 | 29 | 24 | 45 79 80 | 80 | 78)
Less than 5 years of Cy] @) 0} (*)
i @) 4 @) 7 @) | @ 12 8 8} 17
6 5 5 6 4 5 6 2)
20 14 10 | 28 @) - MIO)
4 5 5 2)
@)) 1) | = ECO ECGr Te
10 10 8 10 ‘Sum of age plus: . i
Greater than 15 service yp Oy | Cd | CD |
years of service .| (2) | (7) | (2) | (?) Graduated vestings .. 4 6 6 2 |
Less than age 40 (7) 7 () | @) 1 @) With full vesting after:
1 1 1 1 Less than 7 years 1 1 1] ())
4 4 4 4 7 years ..... 3 4 4 1
More than 7 years 1 1 11)
1 1 1 2 -
1 1] (@) 1 @) 1 Less than 0.6 peroent. i
1 2 2 4 2 Under a cliff vesting schedule, an employee is not entitled to any
Greater than 10 benefits accrued under a pension pian until satisfying the requirement for
years of service (2) 1 () 1 I eee stars of con joe completed bek 18 fro
cna rs exclude years of service
Sum of age plus service | (7) | (7) | (#) | (?) counting towards satisfaction of minimum vesting standards.
Receipt of long-term 4 Graduated vesting schedules give an employee Tights to a gradually
disability insurance increasing share of pension benefits determined by years of service,
benefits .. 16 7] 21 12 eventually reaching 100-percent vesting status (usually after 7 years).
Minimum vesting
Tequirornent®..... 2 3 3 2 NOTE: Because of rounding, sums of individual items may not equal totals.
Disabilty retirement not Where applicable, dash indicates no employees in this category.
available 31 a7 | 34} 2 |
|

1 tfaplan had altemative age and service requirements, the earliest age
and associated service were tabulated; if one altemative did not specify an
age, it was the requirement tabulated.

Less than 0.5 percent.

3 An employee may be entitled to pension benefits after satisfying

‘vesting service requirements, usually 5 years.

NOTE: Because of rounding, sums of indviual Kems may not equal totals.
Where applicable, dash indicates no employees in this category.

128


conversion and those allowing reimbursement of other
expenses as well.

Tn addition:

* About two-thirds of employees eligible for
reimbursement accounts could allocate funds for
medical care deductibles, coinsurances, and other
health expenses not covered by their medical plan;

© 77 percent could use money from these accounts to
pay for dependent care expenses.

Other benefits

In addition to the major benefits just described, the
survey estimated the incidence of 22 other benefits
(tables 3-4). These data show the percent of workers
eligible for a specific benefit, but not the proportion of
employees actually taking advantage of that benefit.

Of these benefits, data reveal the following for full-
time employees:

¢ About three-fourths were eligible for job-related
educational assistance;

* Non-job related educational assistance was only
offered to about one-fourth of workers;

¢ 37 percent were eligible to be in employee wellness
programs;

* Employee assistance programs were available to 62
percent of the workers;

© Such benefits as long-term care insurance, and child
care benefits, were offered to less than 1 out of 10
workers,

Plan administration

In addition to collecting the data on individual
benefit plans, the survey explored how insurance and
Tetirement benefits were administered and financed
(tables 5-6). At least nine-tenths of full-time
participants were in single-employer plans for life
insurance, health care, long-term disability insurance,
and defined benefit pension plans. Four-fifths of
sickness and accident insurance participants were in
single-employer plans. Most of the remaining

: employees with sickness and accident insurance were

covered by State temporary disability insurance plans

_ in New York and New Jersey.

Generally, there were more participants in wholly
employer-financed plans than in partly employer-

- financed plans, with the exception of medical care. A

greater proportion of workers with medical care
coverage had plans partly financed by the employer (for
both single and family coverge) than had wholly
employer-financed plans. Sixty-one percent of full-time
workers with medical benefits had to contribute toward
the cost of individual coverage; 76 percent had to
contibute toward the cost offamily coverage.



TT |
|
|

Table 157. Detined benefit plans: Employee contribution Table 158, Defined benefit plans: Eligibility requirements,
requirements, full-time employees, medium and large private full-time employees, medium and large private establishments, |
establishments, 1993 1993 |
Profes- Profes- i
sional, |y....)| Blue- sional, |4..4)| Blue-
- techni. |eFicaly cojar technic {Clerical coher |
al [cat | and | SoG AL cal, | and
Employee em- | ond | S288 | sewvice i em- | ond | sales | . and |
contributions ploy- em- requirements! ploy- em- vice |
related em- related em-
ees ploy- I ees ploy-
em | eag | Ploy: em- | Fes. | Ploy:
Ploy- ees ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with i
defined benefit plan 16,015] 4,405] 3,939] 7,671 defined benefit plan ...........| 16,015] 4,405) 3,939] 7,671
Percent Percent
Total with defined benefit plan..| 100 | 100 | 100 | 100 Total with defined benefit plan...) 100 | 100 | 100 | 100
Employee contribution Plan participation available
FOQUIET .aoereoeeenn wef  D 2 2 3 to new empioyees..........| 100 | 100 | 100 | 100
Pretax contribution With minimum age and/or
p alowed 1 1 1 1 . service requirement ....| 66 67 79 59
retax cont Service requirement
allowed .. uf 2 2 1 2 req 25 | 23 | 28
No employee contribution 1 1 3
required ... 97 | 98 98 97 (2) 1 3
1 1 4
g} 20] 18
NOTE: Because of rounding, sums of individual items may not equal totals. ( 2 ) z 2
Where applicable, dash indicates no employees in this category. ( } ( 2 ( 2
1) (2) | (2)
Gy) @) | @)
@) 1 4
40) 53 | 26
1 5 5
3 3 2
36 | 45 19
. - (7) | (7)
1 1 1
(7) | (7) | (2)
1 11 (2)
(?) - | @)
No minimum age or .
service requirement 34 33 2 4
Average*
Average service requirement
(in months) ... 412 | 114 | 114 | 108

1 Excludes administrative time lags.

2 Less than 0.5 percent.

3 The Internal Revenue Code requires that nearly all plans must allow
participation to full-time employees who have reached the age of 21 who
have completed one year of service. Plans that provide immediate vesting of
accrued benefits may require up to three years. Church plans are exempt
from the intemal Revenue Code.

The average is presented for all covered workers; averages exclude
workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equa! totals.
Where applicable, dash indicates no employees in this category.

130



Table 49, Medical care benefits: Summary of selected
features, full-time employees, medium and large private
establishments, 1993

Profes-
sional, . Blue-
ay [techni |PTCAl) cotar
em | oa sales | and
Item and service

ploy- em-

ees | Telated| oy. | em
em | ees | POY

Ploy- ees

ees

Number (in thousands) with
Medical C6! .....--reereen| 23,519] 6,529] 5,819] 11,172

Percent

Total with medicat care ... 100 100 100 100

Traditional fee-for-service? ...| 50 4 42 59
Preferred provider

organization’ | 26 29 30
Prepaid health maintenance

organization* 23 28 27

Retiree coverage available> | 52 59 55
With service requirements .... 35 43
Coverage for dependents .....| 100 100 100

88sa 8

1 Plans providing services or payments for services renderad in the
hospital or by a physician. Excludes plans that provided only dental, vision or
regeription drug coverage.

2 ‘The plan pays for specific medical procedures as expenses are
incurred. =

® A preferred provider organization (PPO) is a group of hospitals and
physicians that contracts to provide comprehensive medical services. To
encourage use of organization members, the health care plan limits
‘reimbursement rates when participants use nonmembers’ services.

4 Includes federally qualified (those meeting standards of the Health
Maintenance Act of 1973, as amended) and other HMO’s delivering
comprehensive health care’on a prepayment rather than fee-for-service

basis.

Tabulations cover plans in which insurance was continued for longer
than 1 month after retirement. It excludes plans that provide only the retiree's
share of premiums for medical insurance under Medicare (Part B).

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

48


Contents—Continued

Page i
Benefits by union status 158 i
Benefits for part-time employees 158 |
Appendixes: I
A. Technical note 169 |
B. Sutvey response . 172
C. Availability of survey data 178
Tables:
Full-time employees in medium and large private establishments, 199:
1. Selected benefits: Percent participating 8
2. Selected benefits: Number participating 9 |
3. Other benefits: Percent eligible .. 10
4, Other benefits: Number eligible 11
5. Insurance and retirement plans: Type of plan sponsor 12
6. Insurance and retirement plans: Type of plan financing 13
Work schedules: .
7. Hours scheduled per week and per day .. 16
8. Type of work schedule .......... 16
Paid time off:
9. Lunch time: Minutes per day 16
10. Rest time: Minutes per day . 16
11. Holidays and vacations: Average number of days 17
12. Holidays: Number of days provided each year 17
13. Holidays: Policy on holidays that fall on a regularly scheduled day off 17
14. Vacations: Amount provided for selected periods of service 18
15. Vacations: Length of service required to take vacation 20
16. Vacations: Unused vacation policy ..... 20
17. Vacations: Average number of days by length of service and unused vacation policy 20
18. Personal leave: Number of days provided per year ...... 21
19. Funeral leave: Number of days available per occurrence 21
20. Jury-duty leave: Number of days available per occurrence .. 21
21. Military leave: Number of days available per year .. 21
Parental leave:
22. Parental leave policy ........ 22
23. Unpaid maternity and paternity leave: Duration of benefits 22
Short-term disability coverage:
24. Participation in sickness and accident insurance plans and paid sick leave plans ..... 26
Paid sick leave:
25. Type of provision .. 26
26. Number of days 27

vii


Table 206. Summary: Participation’ in selected employee benefit programs, part-time employees, medium and large private

establishments, 1993

(In percent)
Profes- Profes-
sional, | ericai| Blue: sional, | clerical} Blue
techni. |Cl2F8!| conar techni. | Cencal collar
Allem-| cal, and All em-| cal, an
Benefit ployees| and re- aren service Benefit ployees| and re- ae service
lated |°"2ROY |employ tated |°POMlemploy-
|employ- ees jemploy-| ees
ees ees
Paid time off: [Survivor benefits:
Holidays 43) 96] 57} 45 ]) Lite insurance 2s | 36} 27 | - 20
Vacations 5s | 55 | 57 | 54 || Accidental death and
Personal leave 14 7/ 2! 10 dismemberment 19] 2} 19] 16
Lunch period 2 3 2 2 || Survivor income benefits fo) -1 0 | 0
Rest time so | 67 | 67 {| 49
Funeral leave 44 | 42 | 57 | 33 |[Health care benefits:
Jury duty leave 49) 54] 52] 46
Military leave 14 | 6 18 9 || Medical care 24} 93} 22] 24
Maternity leave 1 21 6 1 || Dental care 7} 27 | wl 14
Paternity leave 1 21 © | @ |! Vision care 10} 13-| 10 8
Outpatient prescription drug
Unpaid time off: coverage .... 24} a1 | 22] 2s
Maternity teave 36} 43 | 38 | 33 |iRetirement income benefits:
Patemity leave 32; 95} 33} 30
All retirement? 40 St 45 33
Disability benefits: Defined benefit ae | 31 | 29 | 23
Defined contributi 23} 24} 32] 16
Short-term disability protection a3} 45] 32} 31 Savings and thrift 8 6| 15 4
Paid sick leave . 26; 39] 26] 22 Deterred profit sharing 9 3| 12 8
Sickness and accident insurance | 17 | 19] 12} 21 Employee stock ownership 2 1 4 1
Money purchase pension 4] 14 4 3
Long-term disability insurance .. 4] 10 5 1
Cash or deferred arrangements: -
With employer. contributions 18 7 | 24 9
No employer contributions 4] 42 5 2

Participants are workers covered by a paid time off, insurance, re-
tirement, or capital accumulation plan. Employees subject to a minimum
service requirement before they are eligible for benefit coverage are
counted as participants even if they have not met the requirement at the
time of the survey. If employees are required to pay part of the cost of
a benefit, only those who elect the coverage and pay their share are
counted as participants. Benefits for which the employee must pay the

Tull premium are outside the scope of the survey. Only current employ-

ees are counted as participants; retirees are excluded.
? Less than 0.5 percent.

2 Includes defined benefit pension plans and defined contribution re-
tirement plans. The total is less than the sum of the individual items be-
cause many employees participated in both types of plans.

167



Table 196, Flexible benefits plans and reimbursement
accounts': Type of plan, full-time employees, medium and

Table 197. Reimbursement accounts: Expenses included, |
full-time employees, medium and large private establishmer |
1993 |

large private establishments, 1993
- Profes- Bl Profes- i
sional, A lue- sional, Blu: |
techni: |OtICA) onar techni. |IEMCAY) coy, |
Alt cal, and | “ond Alt ‘cal, and an}
Type of em- | and | S25 | senvice Expenses em | and | SAS | sony |
Plan Ploy- | retated} OF | em Ploy: | retated | OP | “err
ees Ploy: | oy ees Ploy- |
em | ‘ees | POY om | fees | PO,
ploy- ees ploy- ee
ees ees |
Number (in thousands) with Number (in thousands) with H
flexible benefits plans and reimbursement account ...... 14,849] 5,279] 4,555} 5,¢
reimbursement accounts ....| 15,130] 5,355] 4,620) 5,155 i
- Percent
Percent
Total with reimbursement
Total with flexible benefits account! 100 | 100 | 10
plans and reimbursement
accounts ... 100 100 100 100 Health premiums .... 45 47 4
Health premiums only 13 18 2
Flexible benefits plan with Other health 78 70 5
reimbursement accounts 20 28 19 13 Dependent care expenses -. 83 78 7
Flexible benefits plan (?) (2)
Expenses not d (?) | (7)

without reimbursement
oe 2 1 1 3

78 70 80 84

1 Flexible benefits plans, also known as flexible compensation and
cafeteria plans, allow employees to choose between two or more benefits or
benefits options in determining their individual benefits packages.
Reimbursement (flexible spending) accounts, which are used to finance
benefits or expenses unpaid by insurance or benefit plans, may be part of a
flexible benefits program or stand alone (freestanding accounts). These
accounts may be financed by the employer, employee, or both. The
employee contribution is usually made through a salary reduction
arrangement.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

156

1 Total is less thari the sum of individual items because many plans a
funds to be used for multiple purposes.
2 Less than0.5 Pereent.

NOTE: Where applicable, dash indicates no employees in this category.


i

soba 2

5 REM oR

Table 67. Non-health maintenance organizations: Maximum out-of-pocket expense provisions, full-time employees, medium

and large private establishments, 1993 — Continued

Professional, technical, Clerical and sales Blue-collar and service

All employees and related employees employees employees
Pre- Pre- Pre- Pre-
ftem All Fee- | ferred] All Fee- | ferred Alt Fee- | ferred | All Fee- | ferred
non- for- pro- | non- | for- pro- non- for- pro- | non- | for- pro-
HMO jservice| vider | HMO |service} vider | HMO |service| vider | HMO |service| vider
plans | plans | organi-| plans j plans |organi-} plans | plans |organi-} plans | plans | organi-
zations zations zations zations

Percent

Not determinable .. (?) 11 @) 1

TEE aye | |e)

Averages

Average annual dollar
maximum on individual
out-of-pocket expense ....

Average annual doliar
maximum on family
out-of-pocket expense ....

.| $1,319 | $1,288 | $1,408 | $1,288

2,642] 2,544) 2,852] 2,633

$1,230 | $1,404 | $1,311 | $1,271 | $1,393 | $1,339 | $1,319 | $1,424

2,545| 2,786] 2,692] 2,592] 2,865] 2,620) 2,522] 2,897

1 Deductible amounts were excluded from computation of the
‘out-of-pocket dollar timits. With rare exceptions, an out-of-pocket limit was
‘specified on an annual basis. Few workers were in plans where the
expense limit applied to a disabllty or @ period other than a year. Charges
for certain services, such as mental health care, may not be counted toward
the out-of-pocket maximum.

2 Less than 0.5 percent.

3 Some plans relmburse medical expenses at more than one
coinsurance rata, They impose a limit on out-of-pocket expenses by

specifying a maximum on covered medical expenses beyond which all
‘expenses are paid at 100 percent.

4 Ail covered expenses are pald at 100 percent.

5 The average is presented for all covered workers; averages exclude
workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash Indicates no employees in this category.

65



Table 15. Paid vacations: Percent of full-time employees by Table 16. Paid vacations: Percent of full-time ne employees by

tength of service required to take vacation, medium and unused vacation policy, medium and large privat
large private establishments, 1993 establishments, 1993
! Profes- Profes-
: sional, | Clerica! |Blue-co!- sional, | Clerical |Blue-col-
atvem. | techni: | and | tar and anem. | techni] and | tar and
Length of service requirement | cal, and| sales | service Policy resem, |eal, and| sales | service
- Ployees | ‘elated | employ- | employ- Ployees | related | employ- | employ-
empioy-} ees | ees employ-| ees | ees
ees ees
Total with paid vacations ... 100 | 100 | 100 | 100 Total with paid vacations .. 100 | 100 | 100 | 100
With service requirement 92; 87 | 93 | 95 2 | a2 | a5 | 10
8 | 13 7 6 10 5 6 | 15
1 1 1 1° a | 1 9 6
7 9 9 6 so | 39 | 47 | 57
1 1 1) 0 Data not available 2 2 3 3
2g | 35,{ 34 | 21
1 1 1 1
o ? o & NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.
7 | 6 4
1 QO 1) 1

” Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

Table 17. Paid vacations: Average number of days by length of service and cash-in/carryover provisions,

full-time employees, medium and large private establishments, 1993 -
Vacation days by minimum Cash-in, Carryover Cash-in and | No cash-in or
tength-of-service All plans carryover, Cash-in only
fequirement ‘or both only carryover carryover

9.4 10.6 10.8 7A 14.2 83
11.2 122 12.0 9.9 15.5 10.3
13.6 14.6 14.5 118 18.3 126
16.6 177 WS 15.2 215 15.5
18.8 19.8 19.6 17.4 23.6 17.8
20.4 21.5 2t4 19.3 25.2 19.4
21.6 22.5 22.2 20.4 26.2 20.7
219 22.8 225 20.7 263 214

1 Employees either are granted a specified number of days 2 The average (méan) was essentially the same for longer

after completon of the indicated length of service or accrue days lengths of service.
during the next 12-month period. The total number of days are
assumed avalable for use immediately upon completion of the © NOTE: Computations of average excluded workers with zero

described length-ot-service interval. vacation days.

20


Table 66. Non-health maintenance organizations: Coinsurance rates, full-time employees, medium and large private

establishments, 1993
Professional, technical, Clerical and sales Blue-collar and service
All employees and related employees employees employees
Pre- Pre- Pre- Pre-
Coinsurance All Fee- | ferred | All Fee- | ferred | All Fee- | ferred | All Fee- | ferred

non- | for- | pro- | non- | for- | pro- | non- | for- | pro- | non- | for | pro-
HMO jservice] vider | HMO |service| vider | HMO |service} vider | HMO |service| vider
plans | plans | organi-| plans | plans | organi-| plans | plans | organi-| plans | plans | organi-
zations zations zations zations

Number (in thousands) in

; non-HMO plans . 48,179] 11,802] 6,077) 4,709] 2,709] 1,895] 4,268] 2,450} 1,762] 9,202] 6,644] 2,420
& : Percent
é
z Total with non-HMO plans ........| 100 | 400 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100
4 90 97 7a | 87 | 9B | 74 92) 98 82 | 91 96 7
£ ral 86 44 6 | 84 | 39 70 | 86 48 75 | 86 | 45
ba 3 3 4 4 5 3 4 3 5 3 2 4
12 4 27 15 6 |. 29 14 5 26.) 10 4 | 2
a é 2 2 2 3 3 4 2 3 é a
(yy GM) 7c} cy ©) 3 1 1 11 (8) ] CO) pC)
(4) - (4) | 4) - (4) | (4) - (4) | (4) - (4)
10 3 22 13 2] 26 8 2 18 9 4 | 23
: i 1 Represents the Initial coinsurance in plans that have 100 percent expenses. For example, 80 percent coverage up to $5,000 and 90 percent
Ty coverage after the Individual pays a specified dollar amount toward thereafter.
expenses. For example, the plan pays 80 percent until the individual's Less than 0.5 percent.
out-of-pocket expenses reach $1,000, and then coverage Is at 100 percent. 5 Includes plans with overall benefit limitations, such as maximum dollar

2 A few plans have more than one coinsurance rate. In those cases, amounts and deductibles, where the coinsurance rate is 100 percent,
the coinsurance rate shown |s that which applies to the malotity of benefits
7 under the pian. NOTE: Because of rounding, sums of individual tems may not equal totals.
. The overall coinsurance rate varies by specified dollar amount of Where applicable, dash indicates no employees in this category.

63



Table 165. Savings and thrift plans: Employer matching contributions, full-time employees, medium and large
private establishments, 1993 — Continued

Employer matching rate
Specified matching percentage Varies Varies
Employee contribution to be Total Varies by b Varies
matched! by [AMUN inyact-| BY
Total | 1-49] 50 }51-99] 100 serve} °f. | mont | Profit
percent] percent} percent| percent contri- choice level
bution :
Percent
Clerical and sales
Total with savings and thrift
plans
‘Up to the first:
Greater than 12
percent... 1 +] (?) 1 - (?) - - - -
Blue-collar and service
Total with savings and thrift .
| 100 | 81 19 | 35 8 18 4 10 2 3
. 6 5 | (2) | (?) - 4 1 - - (*)
2.01 - 3.00 percent 12 io | (7) 4 - 5 | (?) 2 : ;
3.01 - 4.00 percent .. 13 10 3 3 1 1} (7) 3 : (7)
4.01 - 5.00 percent .. 13 FT) 5 3} (7) 3 1 1 | (2) | ()
5.01 - 6.00 percent .. 40 | 32 7| 17 5 4 4 2 2 3
6.01 - 7.00 percent .. 5 5 1 2 : 1] (7) - J: -
7.01 - 8.00 percent . 4 1 - 1 (7) | (?) 1 2 - -
8.01 - 9.00 percent .. 1 1 - - 4 | (?) : - - -
9.01 - 10.00 percent 5 si @)] 4] - | @]@Q];@Qy - -
11.01 - 12.00 percent . 1 1 1 - - - - - - -
Greater than 12 .
percent @)} @) | - - | ey - - - -

1 Employee may contribute a percent of salary up to a
specified maximum; ceilings on contributions to be matched by
employers generally are tower. if maximum contributions vary,
such as by length of service, the highest possible contribution

was tabulated.

2 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not
equal totais. Where applicable, dash indicates no employees in
this category.

139



Table 57. Non-health maintenance organizations: Coverage for
mental health and substance abuse treatment, full-time
employees, medium and large private establishments, 1993

Profes-
sional, ‘ Blue-
techni | FC colar
1 | cal, id
Category of care and extent of aon at sales sortce
coverage ees | lated ploy- em-
em- Oe ploy-
ploy- ees
ees
Percent
Inpatient mental heaith
Total with coverage 100 100 100 100
Covered in full .. 1 2 1 1
Subject to separate limits
OMY on secsscenee 9 Wt 7 8
Subject to separate limits
plus major medical 81 75 83 83
Major medical only? 12 10 7
Outpatient mental health
Total with coverage 100 100 100 100
Covered in full .. cy) | 8) | (8) 1
Subject to separate limits
only! .. a 9 " 7 8
Subject to separate iimits
plus major medical 87 83 89 88
Major medical only? 4 6 3 3
Inpatient alcohol
detoxification

Total with coverage 100 100 09 100
3

Covered in full . 3 2
Subject to separate limi
only! .., 15 17 12 16

Subject to separate limits
plus major medical 82 79 85 81
Major medical only2 a7 (3) 1 1
inpatient alcohol
rehabilitation>
Total with coverage 100 100 100 100
Covered in full ... 1 2 1 1
Subject to separate limits
only! .. 18 19 | 12 19
‘Subject to separate limits
plus major medical 79 86 79
Major medical onty2 (@) 1] (3)
Outpatient alcoho!
rehabilitation®
Total with coverage 100 1 100
Covered in full .. 1/3) 7 @
Subject to separate limits
only! .... 14 14 10 16
Subject to separate limits
plus major medical 78 7S 81 78
Major medical onty2 7 10 8 6

‘See footnotes at end of table,

Table 57, Non-health maintenance organizations: Coverage for
mental heaith and substance abuse treatment, full-time
employees, medium and large private establishments, 1993 —
Continued

Profes-
sional, + Blue-
techni | Clerical copay
Category of care and extent of |Allem-} cal, | ois, | and |
coverage ploy- | and re- ‘em. | Sorvics
ees | lated oy. | om
em- | PRY | ploy.
ploy- ees
ees i
Percent |
Inpatient drug detoxification‘ | |
Total with coverage .. 100 | 100 | 100 | 100 '
Covered in full ... 2 3 2 2
Subject to separate limits
‘only? | 13 15 10 13 H
‘Subject to separate limits i
plus major medical .. 73 67 74 75 |
Major medical only2 .. 12 15 14 9
Inpatient drug rehabilitation®
Total with coverage 100 100 100 100
Coverad in fult 1 2 1 1

‘Subject to separ
rt 17 17 iW 19

only
Subject to separate limits

plus major medical .. 76 72 80 7
Major medical only? .. 6 9 8 3
Outpatient drug
rehabilitation®

Total with coverage

Covered in full
Subject to separate limits

only? .... 13 13 10 15
Subject to saparate limi

plus major medical 79 76 82 80
Major medicat onty? .. 7 10 8 5

* Separate limits apply to individual categories of care; e.g., separate
limits or benefits for inpatient mental health. Limits may be set in terms of
dollar or day ceilings on benefits, a requirement that the participant pay a
Percentage of costs (coinsurance), or a requirement that the participant pay a
‘specific amount (deductible or copayment) before reimbursement begins or
services are rendered.

Major medical limits are expressed only in terms of total benefits
Payable under the plan, rather than for individual categories of care. Limits
are set as deductibles, coinsurance percentages, and overall doliar limits on.
plan benefits.

3 Less than 0.5 percent.

+ Detoxification is the systematic use of medication and other methods
under medical supervision to reduce or eliminate the effects of substance
abuse.

® Rehabilitation is designed to alter abusive behavior in patients once
they are free of acute physical and mentaf complications

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.


Table 6. Plan financing: Source of contributions for
selected employee benefit programs, full-time employees,
medium and large private establishments, 1993

(in percent)

Profes-

sional, | Clerical | Blue-

collar

‘attem-| techni} and | ola
Plan financing cal, and} sales ;

Ployees | retated | employ-| Sevice
loy-
employ-| ees | SRO
ees

Medical care for employees .. 100 | 100 | 100 | 100
Wholly emptoyer financed a7 | 31 | 32 | 44
Partly employer financed e | 67 | 65 | 55
Not determinable ... 2 2 3 1
Medical care for family 100 | 100 | 100 | 100
‘Wholly employer financed at 1 | 17 | 2
Partly employer financed 76 | 2 | 79 | 70
Not determinable ... 3 3 4 2
Dental care for employees 100 | 100 | 100 | 100
Wholly employer financed 44 | 35 | 39 | 58
Partly employer financed sa | 63 | 59 | 46
Not determinable ... 2 2 2 2
Dental care for family 100 | 100 | 100 | 100
Wholly employer financed 31 23 26 39
Partly employer financed se | 7 | 71 58
Not determinable 3 2 3 3
Ue insurance .. 1oo | too | 100 | 100
‘Wholly employer financed e7 | es | e7-| 89
Partty employer financed 13 16 12 WwW
Not determinable ... iv) oO 1 (0)
Sickness and accident insurance .... 100 | 100 | 100 | 100
Wholly employer financed 7 | 65 | 67 | st
Partly employer financed | 2 | 34 | 32 | 19
Not determinable 0) 1/0 )
100 | 100 | 100 | 100

73 | 69 | 71 | 80

Partly employer financed a7] 3t 2a | 20
Not determinable . (0) o) +1 0
Defined benefit pension 100 | 100 | 100 | 100
Wholly employer ez | 98 | 98 | 97
Partly employer financed 3 2 2 3

* Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal
totals. Where applicable, dash indicates no employees in this category.

13



Table 30. Paid sick leave: Percent of full-time employees by Table 31. Paid annual sick leave: Percent of full-time
Jength-of-service requirement for participation, medium and employees in plans allowing use of sick leave for other

large private establishments, 1993 : Purposes, medium and large private establishments, 1993
Protes- Profes-
sional, | Clerical |Biue-col- : sional, | Clerical |Blue-col-
‘Alem. | techni: | and | lar and ‘Alem. | ‘echni- | and | lar and |
Length-of-service. requirement | 5//2a, | cal, and} sales | service Other purposes ‘ cal, and| sales | service |
ees | related | employ- | employ- Ployees | related | employ- | employ- i
employ-| ees | ees employ-| ees | ees
ees ees
‘Total with paid annual sick |
Annual plans leave 100 |. 100 | 100 | 100
Total with paid annual sick Other purposes altowed' n 70 73 n
leave . --| 100° | 100 | 100 | 100
"1 "1 9 14
64 53 69 69 60 61 60 59
2 2 13 10 13 12 12 16
4 2 4 6 a7 | a7 36 37 i
21 20 22 at 1 1 1 1
H 1 QO 1 1
| 18 13 21 19 ‘Other purposes not allowed 28 28 27 28
| 0 0 1 19)
8 5 6 1 Data not available . 1 1 1 1
Q) Q «) 1

* This total is smaller than the sum of the components because some
employees could use sick leave for more than one other purpose.

Data not available 2 1 1 NOTE: Because of rounding, sums of individual items may not equal to-
Per disability plans tals. Where applicable, dash indicates no employees in this category.
Total with paid per disabiity
‘sick leave - 100 100 100
59 54 62 65
7 6 6 9
of - fo} -
| 9 8 WW 10 -
2 1 3 1
27 3t 27 Pal
oO; Oo} Oo] 0
3 | 8 | 14 | 24
Y QO QO 1
4 46 Ki: 35
0 0 1 -

|

* Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

30


Table 186. Deferred profit-sharing: Eligibility requirements,
full-time employees, medium and large private establishments,
1993

Table 187. Deferred profit-sharing plans: Vesting provisions,
fulltime employees, medium and large private establishments,

- Profes- Profes-
sional, Blue- sional, a Blue-
techni-|H*t@al) coiar teohni- {Clerical conar
an [er | and | “ond AL ee | and | onal
Eligibility requirements! | Sm. | and sales | conic Vesting provision em | and | S25 | sewice
Poy |relatod| Soy. | et Ploy | related} Say. | em
em- | Sey | ploy: em- eee ploy-
ploy- ees Ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with
deferred profit-sharing deferred profit-sharing
plans ... 3,777| 939] 1,209] 1,629 plans ... 939| 1,209 1,629
Percent Percent
Total with deterred Total with deferred
profit-sharing plans 100 | 100 | 100 | 100 profit-sharing plans .... 100 | 100 | 100 | 100
With minimum age and/or Immediate full vesting ... we | 2 | 14] 16
service requirement .. 93 93 92 94
Service requirement only 54 54 54 53 21 26 21 19
4 2 2 6
9 9 | 16 5 @) | @) | @) | @)
37 | 42 | 33 | 38 6 9 6 3
3 2 2 5 1% | t6] 4) 15
(?) : (7) )] () () 1 @) 1 -
9} 10} 10 8
1 1 2} (%) Graduated vesting? ..... 55 46 62 55
4 7 4 2 With full vesting after:
4 2 4 6 4 years or less .... 2] (7) 1 3
at | 29 | 28) 33 5 years 1% | |] 24] 1
4 4 3 5 6 years 5 2 G 6
2 | 25] 2 | 28 7 years so | 28] 29] 31
®) | - 1 - 10 years 2 1 1 3
1 year. () - 1 : More than 10 years 4 - (?) 4
No minimum age or service
requirement | 6 6 7 4 Not determinable .... 6 3 3 | 10
Not determinable 1 1 1 2
Average? 1 Under cif vesting, an employee is not entitled to any benefits until
satgfyng requrements for 100 percent vesting.
Average service requirement 3 Deder ‘yeduted vesting ‘an employee's rights to benefits increase
in months) .. wwn| 10.9 | 106 | 106 | 118 with tongth of service, Sean easing 10 percent

1 fa plan had altemate eligibility requirements, one of which was service
only, the service only requirement was tabulated.
Less than 0.5 percent.
3 The average Is presented for all covered workers; averages exclude
workers without the pian provision.

NOTE: Because of rounding, sums of Individual tems may not equal totals.
Where applicable, dash indicates no employees in this category.

150

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees In this category.



Table 51. Medical care benefits: Amount and type of empioyee contribution for individual coverage,’ full-time employees,
medium and large private establishments, 1993 :

|
Professional, technical, Clerical and sales Blue-colfar and service i
All employees and related employees employees employees |
Type and amount of |
contribution at | fimo | HMO | al | Age | Mo | an | RO | Mo | an | NO% | tao |
plans plans plans | plans plans plans | plans plans plans | plans plans plans i
Number (in thousands) with H
contributory coverage 14,314] 10,828] 3,485/ 4,406] 3,164) 1,242) 3,799) 2,825 974| 6,109) 4,840} 1,270
Percent |
Total with contributory |
100 100 100 100 100 100 100 100 100 100 100 100 |
Flat monthly amount 63 62 66 58 56 64 66 65 67 65 64 67
Less than $5.00 3 2 3 2 2 4 2 2 3 3 3 2 |
$5.00 - $9.99 5 4 7 5 3 8 4 4 6 6 5 6 |
$10.00 - $14.99 9 9 aa] 9 8 10 g 8 12 abl W 10 i
$15.00 - $19.99 6 7 4 5 6 5 6 6 3 7 8 3
$20.00 - $29.99 14 14 1 12 13 10 15 17 9 13 14 13
$30.00 - $39.99 8 8 10 8 8 7 9 9 10 8 7 14
$40.00 - $49.99 8 8 9 8 8 8 9 8 9 9 9 10
$50.00 - $59.99 5 4 6 6 5 8 6 6 6 3 3 4
$60.00 - $69.99 3 4 3 1 1 2 4 4 3 5 5 3
$70.00 - $79.99 1 1 1 1 1 2 1 1 2 1 1 1
$80.00 - $89.99 () | @) 1) (2) | (2) 1 1} (7) 27 (7) 1 () 1 @)
1 1) () 7) @)] @) | @ 1 1 1 1 1] (?)
(2) | (2) | @) 1 1} (7) ] (2) | @) 1) | @) | 1
$125.00 - $149.99 (@) 7) | @) | @ 1 @ 1] (7) | (7) | @) : : -
$150.00 - $174.99 (7) | (2) - (2) | (2) - : : : (2) | (2) -
$175.00 - $199.99 @}@y- | Qe y- }@ 1) @)]@)] -
$200.00 or greater (@) | @) - (@) | @) - CQ), 7 - - - - |
Composite rate’ .... 6 7 4 4 5 2 3 4 2 9 9 7
Amount varies by employee
options 19 19 7 26 28 22 18 18 19 13 14 12
Amount varies by eamings ... 3 3 2 3 4 2 3 3 3 2 2 3
Other... 7 1 4 1 1 1 1 1 1 (7) 1 1 1
Contribution not
determinable .... 9 9 9 8 7 9 9 9 9 1 W 1
Average>
Average fiat monthly
contribution .. .| $31.55] $31.48] $31.77} $31.87} $31.99] $31.60] $33.84] $33.90] $33.67] $29.90] $29.74} $30.46 i

1 Plans providing services or payments for services rendered in the 4 Amount varies by options selected under a “cafeteria plan’ or
hospital or by a physician. Excludes plans that provided only dental, vision _employer-sponsored reimbursement account.
‘oF prescription drug coverage. ‘The average is presented for all covered workers; averages exclude
2 Less than 0.5 percent. ‘workers without the plan provision.
3 A composite rate is a set contribution covering more than one benefit
area, for example, health care and sickness and accident insurance. Cost NOTE: Because of rounding, sums of individual items may not equal totals.
data for individual plans can not be determined. Where applicable, dash indicates no employees in this category.

50


Table 7. Work schedules: Percent of full-time employees by Table 8. Work schedule: Percent of full-time employees by

hours scheduled per week and per day, ' medium and large type of work schedule, medium and large private

private establishments, 1993 > establishments, 1993
Protes- Protes-
sional, | Clerical |Blue-co!- sional, | Clerical |Blue-col-
techni- {and | lar and Al techni- { and | lar and

Work schedule cal, and| sales | service Work Schedule yao, |al, and| sales | service
related | employ- | employ- Ployees | related | employ- | employ.
employ-| ees | ees employ-} ees | eos
88s 8s

100 700 / 100 100 100 | 100 | 100 100

With fixed work schedule 94 1 94 95

2 1 1 2 With flexibie work schedule 4 6 5 2
4 5 6 3 With rotating work schedule 1 1 0) 1
1 2 2 1 With non-fixed work schedule 1 2 1 1
6 7 9 4 Data not available 1 1 1 1
2 2 4 2

82 80 7 86 .
3 2 H 2 Less than 0.5 percent,

NOTE: Because of rounding, sums of individual items may not equal to-

2 1 1 7 tals. Dash indicates no employees in this category.
4 5 6 3
9 10 14 6

gl" la) s

(e) 1
1 1 a io)
1 9) q
1 (0) 2

} Work schedule data included paid lunch and paid rest periods.
? Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

Table 9. Paid lurch time: Percent of full-time employees by Table 10, Paid rest time: Percent of full-time employees by

minutes of paid funch time per day, medium and large minutes of paid rest time per day, medium and large private
Private establishments, 1993 establishments; 1993
Protes- Profes-
sional, | Clerical |Biue-col- sional, | Clerical |Blue-col-
‘Alt em. | techni- tar and Allem. | techni | and | tar and
Minutes per day se cal, and service Minutes per day ‘ cal, and] sales | service
Overs | related ‘employ- Ployees | related | employ- | employ-
employ- ees employ-| ees | ees
ees ees
Total with paid rest time 100 | 100 | 100 | 100
Total with paid lunch time .. 100 | 100 | 100 | 100 1 1 1 2
Under 20 minutes 6 4 3 7 5 5 4 5
20 minutes ... 28 4 9 37 31 27 22 36
Over 20 and under 30 minutes 2 - 2 2 2 1 1 4
30 minutes ...... 45 87 36 44 30 minutes .. 57 4 70 49
‘Over 30 minutes 13 27 37 5 it 1 1 (v) 1
‘Number of minutes 210 O 3
available .. 6 9 13 4 Number of minutes not
available 1 1 1 1
NOTE: Because of rounding, sums of individual items may not equal to- * Less than 0.5 percent.

tals. Where applicable, dash indicates no employees in this category.
NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

16


omer

ee ed

Table 164. Savings and thrift plans: Maximum pretax
employee contributions,’ full-time employees, medium and
large private establishments, 1993

Profes-
sional, 5 Blue-
an | techni |2F8! cottar
cal, and
Maximum pretaxcontibutions | $0" | and | SSS | service
ees related ploy- ploy-
Ploy- ees ees
ees
Number (in thousands) with
savings and thrift plans that
allow pretax contributions ...| 8,198} 2,920] 2,457] 2,821
Percent
Total with savings and thrift
plans that allow pretax
contributions 100 100 100 100
Percent of employee
eamings ... $2 89 93 94
5 percent or less 3 3 2 2
6 percent 4 4 3 5
7 percent 1 1 1 1
8 percent 3 2 3 5.
8.01 - 8.99 percent (7) (7) | @) | @)
9 percent 3 4 2 3
10 percent .. 19 16 21 a
11 percent .. 1 1 1 2
12 percent .. 8 8 7 8
42.01 - 12.99 percent .. (2) | (7) 1 -
43 percent .. 2 2] (?) 3
14 percent .. 4 4 6 3
15 percent .. 20 20 24 17
16 percent .. 16 16 19 13
17 percent .. 3 3-| 2 4
17.01 - 17.9: (2) | () | @) -
18 percent .. 1 14) 2
48.01 - 18.99 percent .. (27) | (2) : (?)
20 percent .. 2 2 1 3
20.01 - 24.99 percent . () | @) | @) | @
25 percent or more ... (?) 1 . (?)
Specified dollar amount 2 3 2 1
Up to the Intemal Revenue
Code limit ....... se 6 8 5 5
Average
Average maximum pretax
contribution (percent of
eamings ... 128 | 12.9 13.0 125

1 Includes contributions that are not matched by the employer. If
maximum contributions vary, such as by length of service, the highest
bulated.

Possible contribution was ta
2 Less than 0.5 percent.

3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equa! totals.
Where applicable, dash indicates no employees in this category.

137



YA ANS ARE AIA INN

SA AIRE RE

Table $6. Alcohol abuse treatment benefits: Limits on
coverage in health maintenance organizations, full-time
employees, medium and large private.establishments, 1993

Table 97, Drug abuse treatment benefits: Limits on coverage
in health maintenance organizations, full-time employees,
medium and large private establishments, 1993

Profes- Profes-
sional, ‘ Blue- sional, ‘ Blue-
techni |") colar techni | Mall cota
: Allem-| cal, | Si, | and Allem-| cal, | 208 | and
Coverage limitation ploy- jand re- ‘em- service Coverage limitation ploy- | and re- ‘om. | Service
ees | lated ploy. | om ees | lated loy- | Om
em- | Pek | ploy- em- | FY | ploy-
ploy- ees Ploy- ees
ees ees
Inpatient detoxification’ Inpatient detoxification'
100 100 100 100 Total 100 100 100 100
52 54 57 47 No limits 53 56 60 45
48 46 43 53 Subject to separate limits? .. 47 44 40 55
39 39 36 4 Days 37 36 33 41
7 8 5 6° Dollars 7 8 6 7
10 6 8 17 Coinsurance 11 6 8 18
Copayment 7 8 5 8 Copayment 7 8 5 7

Inpatient rehabilitation?

100 100 100 100
13 124) 15 13

Subject to separate limits? 87 | 83 | 385 | 387
Days 21 7| 7! 7
Dollars 14] wl oa] 14

Coinsurance
Copayment 14 16 14 13
Outpatient rehabilitation*
Total 100 100 100 100
limit 21 22 21 21
79 78 79 79
65 65 64 66
14 16 11 14
16 15 10 22
2 21 30 36

inpatient rehobilitation’

100 100 100 100
13 13 15 12

78 76 76 a1
15 18 11 15
Coinsurance ..

Copayment 14 te} 13] 13

Outpatient rehabilitation*

100 100 100 100
21 22 21 19
79 78 7 81
67 66 66 68
14 16 11 15
17 16 12 23

Copayment 2g 21 30 37

1 Detoxification is the systematc use of medication and other methods
under medical supervision to reduce or eiminate the effects of substance
abuse,

2 Separate limitations indicate that alcohol abuse treatment benefits are
more restrictive than benefits for other treatments. For example, if a plan
limits inpatient rehabilitation care to 30 days per year, but the limit on
inpatient care for any other type of dinass ts greater than 30 days per year,
the plan contains separate limits. The total is less than the sum of the
individual items, because many plans had more than one type of limitation.

3 ‘Rehabilitation is designed to alter the abusive behavior in patients once
they are free of acute physical and mental complications. -

Includes treatment in one or more of the foliowing: outpatient
department of a hospital, residential treatment center, organized outpatient
clinic, day-night treatment center, or doctor's office. If benefits differed by
location of treatment, the location offering the most beneficial coverage was
tabulated. °

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

83

1 Detoxification is the systematic use of medication and other methods
under medical supervision to reduce or eliminate the effects of substance
abuse.

2 Separate limitations indicate that drug abuse treatment benefits are
more restrictive than benefits for other treatments. For example, it a plan
limits inpatient rehabilitation care to 30 days per year, but the limit on
inpatient care tor any other type of illness is greater than 30 days per year,
the plan contains separate limits. The total is less than the sum of the
individual items, because many plans had more than one type of limitation,

Rehabilitation is designed to alter the abusive behavior in patients once
they are free of acute physical and mental complications.

Includes treatment in one or more of the following: outpatient
department of a hospital, residential treatment center, organized outpatient
clinic, day-night treatment center, or doctor's office. If benefits differed by
‘ocation of treatment, the location offering the most beneficial coverage was
tabulated.

NOTE: Because of rounding, sums of individual items may not equal totals,
Where applicable, dash indicates no employees in this category.



Table 204. Summary: Percent of full-time employees participating’ in
selected employee benefit programs, by union status, medium and large
private establishments, 1993

, Nonunion.
Benefit ‘Union employees employees
Paid time off:
95 90
97 97
20 22
1 8
74 66
90 81
92 89
55 52
2 3
Patemity leave 1 1
Unpaid time off:
Matemity leave 65 59
Patemity leave 59 51
Disability benefits:

Short-term disability protection 95 84
Paid sick leave ...... 50 69
Sickness and accident 72 3

Long-term disability insurance ......... 28 45

‘Survivor benefits:

Life insurance " 95 90

Accidental death and dismemberment 7 67

Survivor income benefits .. 9 4

Health care benefits:

Medical care .. 90 79

Dental care 73 58

Vision care see 48 20

Outpatient prescription drug coverage 89 78

Retirement income benefits:

All retirement? 88 76
Defined benefit Bi ¢ 48
Defined contribution .. 35 53

Savings and thrift 15 33
Deferred profit sharing 5 16
Employee stock ownership 2 3
Money purchase pension .. 7 8

Cash or deferred arrangements:

‘With employer contributions 18 a
No employer contributions .. 9 6

1 participants are workers covered by a paid time off, insurance, retirement, OF
capital-accumulation plan. Employees subject to a minimum service requirement before
they are eligible for beneft coverage are counted as participants even i! they have not met
the requirement at the time of the survey. tf employees are required to pay part of the cost
of a benefit, onty those who elect the ‘coverage and pay thelr share are counted as
participants. Benefits for which the employee must pay the full premium are outside the
scope of the survey. Only current ‘employees are counted as participants; retirees are

excluded.
2 includes defined benefit pansion plans and defined contribution retirement plans. The

total ig Tess than the sum of the individual tems because many employees participated In
both types of plans.

165



Rey

Table 44. Long-term disability insurance: Limits on all
disability income,’ full-time employees, medium and large
private establishments, 1993

Table 45. Long-term disability insurance: Duration of
payments, full-time employees, medium and large private
establishments, 1993

Profes- Profes-
sional, Blue- sional, Blue-
ay | techne |CRRES!) collar techni- |“'2rI¢al| cojtar
and All and
em- | 4 | sales | and em- | °% | sales | and
Disability income limit and service Duration and service
Ploy: | related} | em- Ploy- | retated| 7
ees ploy- | © ees ploy. | or
em- ees ploy- em- oes ploy-
Ploy- ees ploy- ees
ees ees
‘Number (in thousands) with ‘Number (in thousands) with
long-term disability long-term disability
insurance 11,827] 4,959] 3,671} 3,197 insurance .... | 11,827] 4,959] 3,671] 3,197
Percent Percent
Total with long-term isablity Total with long-term disability
insurance .... | 100 100 100 100 insurance .... | 100 100 100 100
With disability income limit...) 28 32 28 23 For life .... 3 4 2 3
Fixed percent of eamings 28 32 27 23 Until a specified age 10 "1 10 9
Less than 70 percent 2 2 1 2 Until retirement ..... 3 2 2 3
8 10 7 7 Varies by age;! one change | ~ 9 9 8 10
7 8 8 6 Varies by age; gradual
2 2 4 2 change .... 65 66 67 63
Varies by other than age 2 1 1 3
8 10 7 7 Other .. 1 | (#2) | (7) 2
(7) 7 () 11 (?) Not determinable .. 7 7 9 6
() 1 @) } @) | @)
60 58 59 65
Not determinable .... 1 10 13 12 1 The duration of benefits may be reduced gradually according to a
Schedule or once at a specified age. **
Average? 2 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal totals.
Average fixed percent of ‘Where applicable, dash indicates no L
eamings Gleabilty income applicable, das! ‘employees in this category.
limit ... 80.2 | 79.8 | 79.7

1 Limit on income during disability from all sources, including long-term
aisapilty insurance, Social Securty, and pension benefits.
2 Less than 0.5 percent.
‘The average is presented for all covered workers; averages exclude
workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

37



Table 86. Outpatient prescription drug benefits: Brand name
drug provisions in health maintenance organization plans,

full-time employees, medium and large private establishments,

Table 87. Outpatient prescription drug benefits: Generic drug
provisions in non-health maintenance organization plans,

full-time employees, medium and large private establishments,
1893

1993
Profes- a Profes-
sional, . slue- sional, . Blue-
- tech | NE") cotter techni |) cotter
Allem-| cal, | ig. | and Allem-{ cal, | 21°. | and
Type of coverage ploy- jand re- ‘em- service Type of coverage ploy- | and re- ‘om- service
ees | lated | poy. | om ees | lated loy- | om
em- ne ploy- em- ee “ ploy-
ploy- ees ploy- ees
ees ees
Number of employees (in Number of employees (in
thousands) in HMO plans thousands) in non-HMO-
with outpatient brand name plans with outpatient
drug coverage ... 1,688] 1,438] 1,820 generic drug coverage ........ 4,374| 1,059] 1,137] 2,178
Percent Percent
Total in HMO plans with Total in non-HMO plans
outpatient brand name with outpatient generic
AAUg COVEFAGE ..n..uun| 100 | 100 | 100 | 100 drug coverage ..... .| 100 | 100 } 100 | 100
Covered in full .. 4 4 4 3 Covered in ful 6 6 5 7
Subject to copayment per Subject to the major medical
prescription .... 84 87 84 81 limits of plan .. 42 3) 43 43
Less than $2.00 .. 2 1 1 2 ‘Subject to copayment per
$2.00 .... 3 3 3 4 prescription ... 60 62 64 56
$2.01-$2.99 1 1 1 1
x 14 16 13 12 Less than $2.00 .. 2 3 1 1
17) 11) $2.00 1o | 12 6] 1
4 3 2 5 $2.01- 4 5 3 4
(00 i Oo Be OO wn $3.00 1] 12] 15 9
35 37 36 33 $4.00 6 3 8 6
3 2 1 5 $5.00 19 20 24 6
5 4 6 5 $5.01-$6.99 3 2 4 2
§ 4 8 4 $7.00 3 2 1 5
8 10 8 6 Greater than $7.00 2 3 2 1
MPT mey Unspecified copaymi Mpa, ay pe
Unspecified copayment 3 4 3 3
Subject to a separate yearly
‘Subject to a separate yearly deductible ..... 2 2 2 1
deductible ..... 6 5 4 7
Subject to a separate
‘Subject to a separate yearly coinsurance rate .. 12 12 9 13
maximum 9 8 7 10
Subject to a separate yearly
Other .... 13 10 12 17 maximum .. 2 2 1 2

1 Legs than 0.5 percent.

NOTE: Sum of individual items may be greater than the total because some
participants were in plans with more than one type of coverage. Where
applicable, dash indicates no employees in this category.

3

1 Less than 0.5 percent.

NOTE: Sum of individual items may be greater than the total because some
participants were in plans with more than one type of coverage. Where
applicable, dash indicates no employees in this catagory.


Appendix A: Technical Note

Scope of survey

The Employee Benefits Survey (EBS)—the Bureau
of Labor Statistics (BLS) survey of the incidence and
characteristics of employee benefit plans—is conducted
jointly with the Bureau's Employment Cost Index
(CI). The portion of the sample from which the EBS
estimates are made covers all private-sector
establishments! in the United States employing 100
workers or more at the time of sample selection.? * All
private-sector industries are covered in the survey with
the exception of farms and private households.

The industrial and establishment size coverage of
the survey varies on a rotating basis. All surveys cover
full-time and part-time workers in all 50 States and the
District of Columbia. In even-numbered years, EBS
data are collected for small private establishments
(those employing fewer than 100 workers) and State
and local governments, regardless of employment size.
In odd-numbered years, data are collected in medium
and large private establishments (those employing .100
workers or more).

The industrial coverage, establishment size cover-
age, and geographic coverage for the survey were
different prior to 1990. The surveys done from 1979 to
1986 covered only medium and large private
establishments and excluded most of the service
industries. Establishments that employed at least 50,
100, or 250 workers, depending on the industry, were
included. The survey conducted in 1987 consisted of
State and local governments with 50 or more
employees. The surveys carried out in 1988 and 1989
included all private-sector establishments that
employed 100 or more employees. All surveys
conducted from 1979 to 1989 excluded part-time
employees and establishments in Alaska and Hawaii.

+ BLS defines an establishment as an economic unit that produces
goods or services (such as a factory or a store) at a single location. An
establishment is not necessarily a firm; it may be a branch plant, for
example, or a warehouse.

2 The establishments included in this survey had to be determined in
advance of the actual collection because BLS only surveyed the larger
establishments. BLS classified establishments by size as of the
reference date of the sampling frame. All establishments of 100
employees or more that were sampled are included in the survey, even
if they employed fewer workers at the time of data collection.

Data in Appendix B indicate the estimated number
of full- and part-time employees within the scope of the
survey, the number of responding sample ‘establish-
ments, and the number of sampled (and responding)
occupational quotes* within those establishments that
are actually studied for each major industry division.

Occupational groups

Each of the narrowly defined occupations selected
for study is classified into one of the following three
broad occupational groups:

Professional, technical, and related. Includes profess-
ional, technical, executive, administrative, managerial,
and related occupations.

Clerical and sales. Includes Clerical, administrative
support, and sales occupations.

Blue-collar and service. Includes precision production,
craft, and repair occupations; machine operators and
inspectors; transportation and moving occupations;
handlers, equipment cleaners, helpers, and laborers; and
service occupations. :

Excluded from the survey are self-employed
persons, proprietors, major stockholders, members of a
corporate board who are not otherwise officers of the
corporation, volunteers, unpaid workers, family
members who are paid token wages, the permanently
disabled, partners in unincorporated firms, and U.S.
citizens working overseas.

Benefit areas

BLS requests that sampled establishments provide
data for a sample of their occupations on work
schedules and details of plans in each of the following
benefit areas: Paid lunch periods, paid rest periods,
paid holidays, paid vacations, paid personal leave, paid
funeral leave, paid military leave, paid jury-duty leave,

3 Data are collected individually for narrowly defined occupations
that are sampled within establishments. All of the employees in the
detailed occupation selected may not be surveyed. Data for a group
(manageable number) of employees in the detailed occupation that
included the selected employee position are collected. This group is
called a quote.



Table 56. Non-health maintenance organizations: Coverage
for alternatives to hospital care, full-time employees, medium
and large private establishments, 1993

Profes-
sional, 5 Blue-
i. | Clerical
techni- "ong | collar

Category of care and extent of Allem-| cal, sales | 200

ploy- }andre- | service
coverage ees | lated | on. | em-
em- eee ploy-
ploy- ees
ees
Percent

Extended care’

Total with coverage 100 100 100 100

Covered in full .. 2 2 2 2
Subject to separate limits

onty2 .. "1 " 9 12
Subject to separate limits

plus major medical .. 65 6 65 67
Major medical only? .. at 24 | 4 19

Home health care!

Total with coverage 100 100 100 100
Covered in full .. 5 6 5 5
Subject to separate limi

OMly? on. seseee 12 W 9 14
Subject to separate limits
plus major medical 50 49 55 4B
Major medical only$ 33 34 31 33
Hospice care
Total with coverage

100 100 100 100
5

Covered in full ..
16 16 13 18

42
37

50
34

plus major medical

38
Major medical only3 38

1 Some plans provide this care only to a patient who was previously
hospitalized and is recovering without need of the extensive care provided by
general hospital.

2 Separate limits apply to individual categories of care; e.g., separate
limits or benefits for extended care. Limits may be set in terms of dollar or
day ceilings on benefits, a requirement that the participant pay a percentage
of costs (coinsurance), or a requirement that the participant pay a specific
amount (deductible or copayment) before reimbursement begins or services
are rendered.

3 Major medical limits are expressed in terms of total benefits payable
under the plan, rather than for individual categories of care. Limits are set as
deductibles, coinsurance percentages, and overall dollar limits on plan
benefits.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

55



‘pret hp

acl icalihcekeet aco atllioa aca ciaciianaaae

Table 88. Outpatient prescription drug benefits: Mail order
drug! provisions, full-time employees, medium and Jarge
private establishments, 1993

Table 89. Mental health care benefits: Relationship to other

coverage, ' full-time empl edi a
lishments, 1993 iployees, medium and large private

Profes-

4 Profes-
sional, 5 Blue- 4
techni- {RCA cotar Sone |Clericall Blue
Allem-| cal, | 279 | and ret and | collar
‘>. | sales - Altem-| cal, and
Item ploy- jandre-} “SPS | service Type of coverage ploy- |andre-| Sales i
ees | lated | em. em- | Service
ploy. | & ees | lated em-
em- ‘eas ploy- ‘em- ploy- oy-
ploy- ees toy. | ees | %
ees ploy: ees
ees
Percent
Number of employees {in .
thousands) with outpatient - Inpationt?
mail order drug caverage ....| 5,798] 1,568| 1,487| 2,743
Total covered 100 | 100 | 100 | 100
Percent Covered the same 14 16 12 13
Total with outpatient mail Covered differently as | e4 | as | 97
der drug coverage ..... 100 | 100 | 100 | 100
order drug coverage Outpatient?
Treated the same as brand
name 7] oi] a | 16 Total covered ... 100 | 100 | 100 | 100
Covered the same
Treated differently than brand 3 4 3 3
name | 83 | at | 79 | 95 Covered differently 97 | 96 | 97 | 97
Covered in full... 12 " 12 12 .
eg atonstip eather coverage f a comparison to similar nor-mental
- For example, if inpatient mental health care is limited to 30,
Copayment per prescription 66 6s 64 68 days per Year, but inpatient care for any other type of itness isnot limited in
Less than $2.00 2 t 5 2 die ‘oat vad the plan contains mental health provisions that are covered
$200 "1 6 4 17 Excludes doctor's charges in the hospital
33.00 2 2 2 2 in one or more of the following: outpatient
$4.00 3 2 2 4 cppariment of 2 hospital, residential treatment center, organized outpatient
$5.00 15 14 16 16 loatn yan camer Center, or doctor's office. if benefits differed by
$5.01-$6.99 3 5 2 3 (eatlon of . the location offering the most benefical coverage was
$7.00 1} (7) 1 1
Greater than $7.00 .. 26 aw 30 21 NOTE: Because of rounding, sums of individual items may not equal total
Unspecified copaymer 3 ‘4 2 2 Where applicable, dash indicates no empioyees in this category." totals.
Coinsurance per prescription 1 3 1 1
Other 3 2 2 5

1 Programs that provide drugs for maintenance purposes, that is, drugs
required on a continuous basis.
Less than 0.5 percent,

NOTE: Because of rounding, sums of individual items may not equal totals,
‘Where applicable, dash indicates no employees in this category.

19



Methods of payment

The benefit formulas just described are used to com-
pute a straight-life annuity, that is, a periodic payment
for the life of the retiree, with no additional payments
to survivors. Defined benefit pension plans offer a va-
tiety of additional payment methods, although each is
based on the straight-life annuity. For married employ-
ees, the standard benefit prescribed by law is the joint-
and-survivor annuity, which provides payments to a
surviving spouse after a retiree dies. Such employees
may choose a straight-life annuity or some other form
of benefit, but only upon written approval of both the
employee and spouse.

Another optional method of payment is for the em-
ployee to receive the pension benefit in a Jump-sum
payment (table 144). This lump sum provides the
employee with the actuarial equivalent of the annuity.
In most of these plans, only a full lump-sum option is
available. If a participant elects a full lump-sum
distribution, he or she receives no further benefits from
the pension plan. Where a partial distribution is
available, the participant generally receives a reduced
annuity for the remainder of her or his life.

Survivor annuities

ERISA also requires defined benefit pension plans
to provide a spouse with at least 50 percent of the re-
tiree's payments after the retiree's death (table 145).
When this type of pension is paid, the employee will
generally receive a lower benefit during retirement to
account for the likely increase in the length of time the
plan will have to make payments. When the retiree
dies, a pension benefit will be payable for the life of the
surviving spouse. All defined benefit pension plan
Participants have survivor annuity options available to
them.?5

The most prevalent type of survivor benefits—joint-
and-survivor annuities—provides a reduced benefit to
the retiree and a percentage of that reduced benefit to
the spouse upon the retiree's death. The reduction may
be a percent of the benefit—for example, 10 per-
cent—or may be actuarially determined based on the
life expectancy of the retiree and spouse. Although
some participants have plans that offer only one joint-
and-survivor option that pays a surviving spouse 50
percent of the retiree's adjusted pension, a majority of
participants have a choice of two alternative percent-
ages or more (for example, 50, 67, or 100 percent) to be
continued to the spouse, with corresponding reductions
in the employees’ annuities. Should the spouse prede-

?6 Survivor benefits are discussed in more detail in Donald Bell and
Avy Graham, "Surviving Spouse's Benefits in Private Pension Plans,”
Monthly Labor Review, Aptil 1984, pp. 23-31.

14

cease the retiree, the retiree's unreduced benefit may be
restored, although such provisions are uncommon.

Unlike joint-and-survivor annuities, survivor annui-
ties based on the retiree's accrued benefit do not reduce
the employee's pension to adjust for survivor benefits,
The retiree receives the straight-life annuity; following
the retiree's death, the spouse receives a percent of that
annuity—often 50 percent. Such plans cover few par-
ticipants.

A few pension plans provide a lump sum or install-
ment death benefit to the survivor of a deceased retiree.
Payments are in the form of a flat amount, such as
$5,000, in addition to the survivor annuity or a certain
number of monthly payments, such as 60 or 180, less
payments already received by the retiree. The latter
usually occurs when the retiree and the spouse do not
elect to take the joint and survivor annuity option.

Preretirement survivor benefits

Virtually all defined benefit pension plans offer
survivor benefits in case the employee dies before re-
tirement (table 146). Participants usually have to be
vested, that is, have a permanent right to accrued
pension benefits before plans would make such benefits
available. For a large majority of the Participants, a
surviving spouse would receive an annuity equivalent
to the amount payabie if the employee had retired on
the day prior to death with a joint-and-survivor form of
Payment in effect. Most survivor pensions like these are
based on an early retirement benefit and, aside from the
joint-and-survivor reduction, are provided at no cost to
the employee. For a few participants, however,
preretirement joint-and-survivor protection may involve
an extra cost to the employee and is available only if
elected. The employee normally pays this cost through
a small deduction in the pension, ultimately payable to
either the employee or the surviving spouse.

Other participants have a preretirement survivor
annuity calculated as a portion of their accrued benefit
{the benefit earned as of the date they died, without a
joint-and-survivor reduction). If an active employee
dies after completion of the vesting requirement, a
typical survivor would receive an annuity equal to 50
Percent of the employee's accrued benefit to date.
Payments may be reduced by the early retirement
adjustment, and begin when the employee would have
reached early retirement age. If the employee lives to
become eligible for early retirement, the survivor
benefit in many cases switches to the equivalent of a
50-petcent joint-and-survivor benefit calculated as if
the employee had retired on the day of death. (When
provisions change based on age of the employee, the
earliest available preretirement survivor annuity is
tabulated.)



TE ne ee NENT AREER TERRE

vesting provision, which increases the portion of
guaranteed benefits as years of service increase. Full
vesting usually comes after 7 years.

Most commonly, participants accrue years of vested
service regardless of age, although a few are affected
by the plan sponsor's right to exclude years of service
before a specified age in determining vesting eligibility.

Unreduced vested pension payments begin at the
plan's normal retirement age, based on the benefit for-
mula in effect when the employee left the plan. As an
alternative, terminated and vested participants may re-
ceive a reduced pension prior to normal retirement age
if the participant had satisfied the early retirement
service requirement before leaving the plan.

For terminated and vested employees who wish to
receive a pension beginning prior to normal retirement
age, ERISA requires the benefit to be at least the actu-
arial equivalent of what would have been received
Starting at age 65. The actuarial equivalent benefit is a
reduced amount determined by the life expectancy at
the age that pension payments begin. Although under
ERISA. the reduction factor used in determining the
pension for terminated and vested employees can be
more severe than for early retirement, the.same factor is
used in plans covering many participants with early
tetirement provisions. When reductions differ, it is
common to provide actuarial reductions ‘to deferred
vested benefits, eliminating the subsidy employers give
to employees choosing early retirement.*°

Portability

‘When employees change employers, vested pension
benefits are frequently held by the employer until the
employee reaches retirement age. Alternatively, a plan
may include a portability provision, that is, the ability
to transfer years of credited service or accumulated
benefits from one employer to another. Currently, only
a few full-time employees with a defined benefit pen-
sion plan are covered by a portability provision (table
155). Most of these participants are covered by either a
multiemployer plan established by a union or a single
employer plan offered by an establishment that has a
reciprocity agreement with related establishments, such
as in the utilities industry. In these plans, if a vested
employee moves to another employer, benefits from the
prior employer usually in the form of years of credited
service are transferred over to the new employer. Some
participants covered under a portability provision may

3 For additional details on plan vesting requirements, see Avy D.
Graham, "How Has Vesting Changed Since Passage of Employee
Retirement Income Security Act?," Monthly Labor Review, August
1988, pp. 20-25.

117

have an option to cash out vested pension benefits val-
ued at greater than $3,500.

Postretirement pension increases

Inflation can severely erode the purchasing power ot
a fixed pension over a worker's retirement years. To
guard against this, some pensions are adjusted on a
discretionary basis, and others are subject to automatic
increases specified in the pension plans. The Employee
Benefits Survey studies automatic increases and
discretionary, or ad hoc, increases granted during the 5-
year period prior to the survey. Ad hoc increases are
more common than automatic  postretirement
adjustments (usually annual adjustments based on CPI
changes) in the private sector (table 156).

Because the survey counts the number of current
employees covered by defined benefit pension plans
and not the number of retirees, the survey cannot spec-
ify the proportion of annuitants actually receiving pos-
tretirement pension increases. Thus, the measures dis-
cussed in this section describe the incidence of postre-
tirement increases among active plan participants.

Ad hoc pension increases are not directly linked to a
cost-of-living index. Instead, retirees’ current pensions
usually increase by a percent of the present benefit,
commonly a uniform amount. For ¢xample, a plan may
provide a 5-percent pension increase to all individuals
who retired prior to the survey year. Other plans may
provide greater pension increases for individuals retired
longer. For instance, a plan might grant a 5-percent
pension increase if retired 10 years or less, and a 10-
percent increase if retired more than 10 years.

A small number of plans grant automatic increases
in pension benefits to compensate for increases in the
cost of living. In most instances, these cost-of-living-
adjustment formulas are based on changes in the BLS
Consumer Price Index. Adjustments are often re-
stricted, however, by provisions that limit the benefit
change to a portion of the CPI change or by ceilings
(generally 3 percent or less) on the periodic increase
that can be applied. Plans providing cost-of-living in-
creases most often call for annual adjustments.

Employee contributions

The employer usually pays the full cost of defined
benefit pension plans for private sector participants
(table 157). For employees who have to pay part of the
cost, contributions are most commonly expressed as a
percent of earnings. Most participants in contributory
plans pay a flat percent of all earnings, for example, 3
or 4 percent. Participants in other contributory plans
often pay one rate (for example, 2.5 or 4 percent) on
earnings above a specified level, and a lower rate (or
frequently zero) below that earnings level. The annual
earnings leve] at which this break occurred is either a



Days at
Length of Daysat 50 percent
service Full pay of pay

year 20 45
3 years 40 25
5 years 65 65
10 years 100 30
20 years 130 0

Because per-disability benefits are renewed for each
new disability, provisions to carry over unused days are
not included in such plans.

Workers are often not eligible “for sick leave
benefits when first beginning to work for an employer.
Many employees have to meet length of service
requirements, frequently 1 to 6 months, before qualify-
ing for sick leave benefits.

Although sick leave is commonly thought of as
teplacing lost income while an employee is ill or
injured, a majority of workers can use their benefits for
other reasons. For example, using sick leave for a
doctor's appointment or to take care of a sick child were
the most frequently observed provisions.

Sickness and accident insurance

Sickness and accident insurance plans cover a large
number of full-time employees in medium and large
establishments, protecting them against income losses
due to short-term disabilities. Most participants have
their benefits fully paid by their employer. The
remainder often pay a percent of earnings, up to a
specified maximum contribution® (tables 32-39).

Benefit payments under sickness and accident
insurance plans are either a percent of employee
earnings or a flat dollar amount. White-collar
participants are more likely to be covered by plans with
eamings-based formulas than are blue-collar
participants.

Under earnings-based formulas, the percent of
earings is usually fixed—typically 50, 60, or 67
percent—although some plans may vary the percent by
length of service or length of disability. A large
Majority of the participants in earnings-based plans
have a dollar limit on the amount of the weekly benefit.

Blue-collar workers are the most frequent recipients
of scheduled dollar benefits, which provide either a
fixed weekly amount, for example, $150 or $200, or
varying weekly benefits (usually based on earnings).

Plans that place a fixed maximum on the number of
weeks of coverage, commonly 26 weeks, cover
virtually all participants.

5 The prevalence of such contribution formulas is influenced in
large part by the mandatory sickness and accident insurance plans in
New York and New Jersey, discussed later in this chapter.

Some of the employees with sickness and accident
insurance have to be on the job for a specified time
before the plan will cover them. This ‘service
requirement is typically 6 months or less.

Sickness and accident insurance, unlike sick leave,
usually requires a waiting period before benefits begin,
most commonly | to 7 days. Waiting periods may be
shortened or eliminated entirely for employees involved
in an accident or who are hospitalized. The waiting
period is effectively dropped when sickness and
accident insurance is coordinated with sick leave,
because insurance payments typically start immediately
after sick leave pay has ended.

Workers in two States, New Jersey and New York,
are covered by mandatory temporary disability
insurance plans tnat are at least partially employer
financed. Both of these State plans pay benefits based
on a proportion of the worker's earnings for up to 26
weeks with a limit on the weekly benefit.6 The State of
Hawaii requires that employers provide a minimum
level of temporary disability income protection for up
to 26 weeks. :

Long-term disability insurance

Long-term disability insurance provides a monthly
benefit to employees who, due to illness or injury, are
unable to work for an extended period of time.
Generally, LTD benefit payments begin after 3 or 6
months of disability and continue until retirement age,
or for a specified number of months, depending on the
employee's age at the time of disability (table 40). In
Most instances, the LTD payments equal a fixed
percent of predisability earnings.

A large number of full-time employees have LTD
coverage; most of the participants have their coverage
fully provided by their employers. However, of those
who have to contribute towards the cost of their LTD
plan, many can choose from various options under a
"flexible benefits plan," with employee contributions
varying by the mix of benefits selected. (See chapter 8
for additional information on flexible benefits plans.)
Another way in which contributions are paid by
employees is to charge'a monthly amount per $100 of
covered earnings, for example, $0.20 per $100 of
coverage.”

§ Both States permit an employer to substitute a private plan for the
State plan if the benefits provided are at least equivalent. In New
York, many employers agree to pay the employee's share of plan costs.
Califomia and Rhode Island also have mandated temporary disability
insurance pians, but these plans require no employer contribution and,
thus, are not included in this survey.

7 Covered earnings are that portion of a worker's earnings to which
the replacement rate formula is applied. For example, if an LTD plan
pays 60 percent of earnings with a maximum monthly benefit of
$3,000, covered earnings would be $5,000 ($3,000 is 60 percent of
$5,000).


‘Table 184. Deferred profit-sharing plans: Allocation of Table 185. Deferred profit-sharing plans: Selected plan

emptoyer contributions to individual employee accounts, features, full-time employees, medium and large private
full-time employees, medium and large private establishments, establishments, 1993
1993
Profes-
Profes- i
sional, |cjoricai|, BY sional Icrerical| BU
techni- |S") collar an [eh Vand | oer
an [fect and | ond | | ca | Stes | and
Allocation of employer em- | S| sales | orice Item 5 "| and pened service
contributions ploy- | ateg| em | em. ploy’ |related| gy. | eT
ees jem | PY | ploy- em- | "Gog | ley
ploy- | °° | ees Ploy- ees
ees ees
Number (in thousands) with Number (in thousands) with
deferred profit-sharing deferred profit-sharing
Plans... | 3,777! 939) 1,209] 1,629 plans .. 939 | 1,209 | 1,629
Percent Percent
Total with deferred Total with deferred
profit-sharing plans nun] 100 | 100 | 100 | 100 profit-sharing plans .. 100} 100} 100] 100
Equally to all participants 7 7 6 7 Loans permitted .. 23, 21) 19] 26
Proportional to eamings . 52 59 50 50 Withdrawals permitted 24 18 20 24
1s | 26] 15 23| 19) 28| 22
6 gs) 15 1a] 16] 15| 10
3 1 2 2e| a7| 37] 2
1 rane eas) Employee permitted to choose
‘Allocation formula net investments “0 48 56 51 42
BVAHADIC sane 9| 10 es | 10

1 Less than 0.5 percent. 1

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

149



Appendix B: Survey Response

Information on 1993 survey response

Data for the 1993 Employee Benefits Survey were
collected from November 1992 to October 1993,
reflecting an average reference period of April 1993.
There were approximately 143,000 medium and large
establishments—those employing 100 workers or
more—within the scope of the survey. A sample of
3,666 establishments was chosen from Unemployment
Insurance reports with reference dates from 1984 to
1991; also included was the "birth" sample, which
represents establishments beginning operations through
1992. (A description of sampling procedures appears in
appendix A.) Respondents were asked for information
as of the time of the data collection contact.

The following summary is a composite of establish-

ment responses to the survey:
Establishments Number
In sample 3,666
Out of business and out of scope 219
Refusing to respond 1,122
Responding fully or partially 2,325

The 2,325 responding establishments (tables Al-
A2) yielded 13,012 occupational observations (quotes)
for which data were collected.

There were three procedures used to adjust for
missing data from partial and full refusals. First,
imputations for the number of plan participants are
made for cases in which this number is not reported
(approximately 19 percent of participants in health
plans, 14 percent in retirement plans, and less than 9
percent of participants in all other types of plans). Each
of these participant values is imputed by selecting a
similar plan from another establishment with similar
employment in a similar industry. The participant rate
from this selected plan is then used to approximate the
number of participants for the plan that is missing a
participation value.

Second, imputations for plan provisions were made
when they are not available in a partially responding
establishment. These plan provisions are imputed by
selecting a plan from another establishment with
similar characteristics. Provisions from this selected

172

plan are then used to represent the missing data. (This
was done for about 6 percent of the participants in
sickness and accident insurance plans; 12 percent of
flexible benefits plan patticipants, 30 percent of
medical, dental, and vision care participants; 19 percent
of Iong- term disability’ insurance participants; 44
percent of retirement plan participants; and 9 percent of
life insurance plan participants. Imputations were done
for less than 3 percent of the participants in paid leave
plans.)

Lastly, for all other forms of missing data (totally
unusable establishments and refusals), a weight
adjustment is made using the sample unit employment.
This technique assumes that the mean value of the
nonrespondents equals the mean value of the
respondents at some detailed "cell" level. These cells
are defined in a mafner that groups establishments
together that are homogeneous with respect to the
characteristics of interest. In most cases, these cells are
the same as those used for sample selection.

One other form of missing data occurs when an
establishment cooperates in the survey but refuses all
information concerning one or more of the selected
occupations. No adjustment was made for these missing
data for this survey. If data had been supplied for all
sampled occupations in cooperating establishments, the
estimates in this bulletin would represent 39.4 million
employees instead of the 34.3 million employees
actually represented. .

Standard errors

Chart A-1 provides standard errors for use in
evaluating the estimates in the tables shown in chapters
1-9 of this bulletin containing percentage estimates. For
example, table 1 shows that 65 percent of all employees
participated in sick leave plans in 1993. Chart A-1
shows a standard error of approximately 1.75 percent
for this estimate. Thus, at the 95-percent level, the
confidence interval for this estimate is 61.5 percent to
68.5 percent (65 percent plus and minus 2 times 1.75
percent).

Standard errors for tables 11, 17, 27, and 29 could
not be represented graphically. They are presented as
tables A3-A6. For example, the first entry in table 27
shows an average of 12.0 days of paid sick leave



tents—Continued

189. Eligibility requirements
190. Investment choices
191. Vesting provisions
192. Transfer and rollover provisions
193, Withdrawal availability
194. Loan availability
195. Methods of distribution

Flexible benefits plans:
196. Flexible benefits plans and reimbursement accounts: Eligibility .
197, Reimbursement accounts: Eligibility by expenses covered

Benefits for full-time employees by geographic region:
198. Summary: Participation in selected employee benefit programs
199. Other benefits: Eligibility for specified benefits .....

Benefits for full-time employees by industry:

200. Summary: Participation in selected employee benefit programs, g0ods-producing
industries

201. Other bene! igibility for specified benefits, goods-producing industries

202. Summary: Participation in selected employee benefit programs, service-producing
industries

203. Other benefits: Eli;

bility for specified

Benefits for full-time employees by union status:
204. Summary: Participation in selected employee benefit programs
205. Other benefits: Eligibility for specified benefits

Benefits for part-time employees:
206. Summary: Participation in selected employee benefit program ..
207. Other benefits: Eligibility for specified benefits

Appendix tables:
A1. Survey scope: Full-time employees ......
A2. Survey scope: Part-time employees ....
A3. Variances: Average number of holidays and vacation day:
A4, Variances: Average number of vacation days by unused vacation polic:
AS. Variances: Average number of sick leave days .
AG. Variances: Average number of sick leave days by unus:

sick leave policy .

156
156

159
160

161
162

163
164

165
166

167
168

174
175
176
176
77
177



Savings and thrift plans

Savings and thrift plans enroll a large number of
employees in medium and large private establishments.
Under these plans, employees may contribute a
predetermined portion of earnings (usually pretax) to an
account, all or part of which the employer matches
(table 160). Contributions are invested in various
vehicles, such as stocks, bonds, and money market
funds, as directed by the employee or employer,
depending upon the provisions of the plan. Although
usually designed as a long-term savings vehicle,
savings and thrift plans may allow withdrawals for
specified conditions (such as medical and educational
expenses) and may allow participants to borrow funds
from their account. Also many savings ani thrift plans
allow participants to transfer or "rollover" amounts
received from a plan of a former employer (table 161).
Such a rollover continues the tax deferral on money
that had been sheltered from taxes before the
terminated employee received it.

Employee contributions. (See tables 162-164.) Savings
and thrift plans allow employees to choose from a
range of contribution rates. A plan, for example, might
allow employee contributions of any amount from 5 to
20 percent of pay. Maximum contributions are
commonly 10, 15, and 16 percent.

The ability to make employee contributions on a
pretax basis, known as salary reduction, has, after only
a few years, become a dominant feature of savings and
thrift plans. Nearly all participants in savings and thrift
plans are allowed to make pretax contributions.

The provisions governing pretax contributions vary
widely. For example, many participants in plans
allowing pretax contributions are allowed to make only
pretax contributions; some have an option to make
either pretax or posttax contributions; and others must
make at least some of their contributions on a pretax
basis.

The tax status of employee contributions is
important not only because of the current deferral of
income taxes, but also because an employee may not
withdraw pretax contributions from his or her
account—except in limited circumstances—without tax
penalties.

Employer-matching contributions. (See table 165.)
Employers give incentives for participating in a savings
and thrift plan by matching all or a portion of the
employee's contribution (adding this amount to the
employee's account). Usually the employer matches a
portion of the employee's contribution up to a specified
percent of the, employee's earnings. For example, an
employer may match half of the employee's

132

contribution up to the first 6 percent of earnings.
Assuming the employee contributes 8 percent of
earnings, the employer would add 3 percent (half of the
first 6 percent of the employee's earnings) for a total
contribution of 11 percent to the employee's account. In
contrast with these straight percentage matches, some
participants receive matching contribution rates varying
by length of service, level of employee contribution, or
company profits.>>

Tn some savings and thrift plans, the employer may
also provide discretionary profit-sharing contributions
to the employee's account (table 166).

Investment decisions. (See tables 167-171.) Most
participants in savings and thrift plans can choose how
they want their own contributions invested. Investment
vehicles offered by these plans include company stock,
common stock funds, guaranteed investment contracts,
government securities, money market funds, and long-
term interest bearing securities such as corporate bonds
and Treasury notes. The number of choices in these
plans varies from two to seven or more. Employees are
nearly always allowed to split their contributions
among the various options—typically in multiples of 10
or 25 percent. For example, a participant may choose to
invest 50 percent in company stock and 50 percent in
government securities. In addition, plans often permit
participants to change their investment choices
periodically, such as 2 or 4 times per year.

In most cases, employees have less flexibility in
how employer contributions are invested. When no
choice is allowed, the plan typically specifies that the
matching contribution is invested in company stock. -

Withdrawals and loans. (See tables 172-179.) Prior to
normal payout at retirement, disability, or termination
of employment, many participants in savings and thrift
plans are allowed to withdraw all or a portion of
employer contributions. As withdrawal provisions are
canceled or further restricted (typically due to the tax
penalties associated with withdrawals), loan provisions
(discussed later in this section) have become more
available.

Many participants in plans permitting withdrawal of
employer contributions are only allowed access to
funds for hardship reasons, such as medical or
educational expenses. The remaining participants can
withdraw employer contributions for any reason.

Withdrawals of employer contributions may also be
subject to a variety of other restrictions. For example,
some participants who are allowed to make withdrawals
can only withdraw part of their employer's contribution.

35 For more information on savings and thrift contributions and
benefits, see Michael Bucci, "Contributions to Savings and Thrift
Plans," Monthly Labor Review, November 1990, pp. 28-36.



Table 166. Savings and thrift plans: Discretionary
profit-sharing contributions,’ full-time employees, medium and
large private establishments, 1993

. Profes-
sional, ‘ Blue-
techni: |OFCA) cotar
All {cal | 200 | and
em- 5 | sales fs
item and service
Ploy- | related lov. em-
ees | om. Ply. ploy-
ploy- ees
ees
‘Number (in thousands) with
savings and thrift plans .... 8,284] 2,933) 2,470] 2,880
Percent
Total with savings and thrift
plans . 400 | 100 | 100 | 100
With discretionary
profit-sharing
contributions 12 W u 14
No discretionary
profit-sharing
contributions. 88 89 89 86
Not determinable ) | @) ] @) | @)

1 Employer contributions in addition to matching funds, provided at
employer discretion based on profitably.
Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

Table 167. Savings and thrift plans: Investment choices, full-time employees, medium and large private

establishments, 1993
Professional, ‘
4 Clerical and sales Blue-collar and
All employees technical, and
ploy’ related employees employees service employees
Investment choices
Employee | Employer | Employee] Employer | Employee | Employer | Employee} Employer
contribu- | contribu- | contribu- | contribu- | contribu- | contribu- | contribu- | contribu-
tions tions tions tions tions tions tions tions
Number (in thousands) with
savings and thrift plans ....... 8,284 8,284 2,933 | 2,933 2,470) 2,470) 2,880) 2,880
Percent
Total with savings and thsift
plans ... 100 100 100 100 100 100 100 100
Employee permitted to
choose investments 86 58 88 59 87 61 84 55
Two choices 12 7 8 6 7 4 19 "1
Three choices .. 21 13 21 12 24 17 19 ab
Four choices 30 7 31 7 32 19 26 17
Five choices 15 13 16 14 17 15 13 11
Six choices .. 3 3 4 3 3 2 3 3
Seven or more “7 6 5 8 7 4 4 5 3
Employee not permitted to
choose investments . 7 36 6 35 7 33 8 38
Not determinable .... 7 7 6 6 7 6 : 8 7

NOTE: Because of rounding, sums of Individual items may not

equal totals. Where applicable, dash indicates no employees in

this category.



Table 176. Savings and thrift plans: Loan availability, full-time
employees, medium and large private establishments, 1993

Profes-

sional,

techni-
cal,

Blue-
collar
and

‘Clericat
and

sales ic
em. s0rvice
related | Soy. | om
em- | PY" | ploy-
ploy- ees
ees

Loan availabilty

‘Number (in thousands) with
‘savings and thrift plans

Total with savings and thrift
plans .. 100 | 100 | 100 | 100
Loans permitted 4s | 48 | 48 | 49
Any reason .. 46 | 46 | 45 | 46
Hardship reasons only’ 3 2 3 3
Loans not permitted so | 50 |} 50} 50
Not determinable 2 2 2 1

1 Hardship reasons may include death or illness of a family member,
‘education expenses, sudden uninsured losses, or purchase of a primary
residence.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

Table 178. Savings and thrift plans: Maximum amount that
may be borrowed in plans permitting loans, fulltime
employees, medium and large private establishments, 1993

Profes-
sional, . Blue-
techni: Clerical collar
All cal and and
Loan provision ptoy- and sales service
Ply” | related em-
0s [oem | PIX | toy-
ploy- | °° | ees
ees
Number (in thousands) with
savings and thrift plans
with foans permitted .... 4,008} 1,404) 1,185) 1,419

Percent

Total with savings and thrift
plans with loans permitted ..| 100 100 100 100

Full account balance

available .. 2 2 2 2
Partial account balance
available .. 96 95 97 94

Not determinable ..

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

146

Table 177. Savings and thrift plans: Loan requirements in
plans permitting loans, full-time employees, medium and large
private establishments, 1993

Profes-
sional,
techni-
. cal,
Loan provision and
related
em-
ploy-
ees

Number (in thousands) with
savings and thrift plans
with loans permitted ....

Percent

Total with savings and thrift
plans with loans permitted ..j 100 100 100 400

At any time .. 48 47 37 57
After meeting an age/or

service requirement ... 9 5 15 7
Once per time period 39 42 43 32
Other limit .. 3 2 4 2
Not determinable .. 2 4 2 1

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

Table 179. Savings and thrift plans: Repayment provisions in

plans permitting loans, full-time employees, medium and large
private establishments, 1993

Profes-
sional, ‘Blue-
ay | teehni- |SNA! cotar
ém | and
Repayment provisions and service
Ploy- | related] ST | om-
ees | em- ploy. ploy-
ploy- ees
ees
Number (in thousands) with
savings and thrift plans
with loans permitted .. 4,008} 1,404] 1,185] 1,419

Percent

Total with savings and thrift
plans with loans permitted ..) 100 100 100 100

Repayment after specified

period .. 90 90 90 90
For purchase of a homet 48 52 58 35
Less than 15 years 16 18 19 an)
15 - 20 years. 16 18 20 W
25 years ... 2 4 1 1
Greater than 25 years 3 4 3 1
‘Not determinable " 9 14 1
For any reason ... | 42 37 32 55
Less than 5 years .. 18 19 12 21
5 years .... 24 18 20 34

At discretion of plan .
administrators (7) a] (?) | Fr)
Not determinable .... 10 10 10 10

1 Plan specifies longer repayment period for purchase of a home than for
other reasons.
2 Less than 0.5 percent.


Table 48. Long-term disability insurance: Coverage for mental
illness, full-time employees, medium and large private

establishments, 1993

Profes-
sional, 5 Blue-
ay | technk {CFA conar
em- |! | sales | and
Mental illness provision and service
Ploy- | related| oTM | om.
ees | em- Ploy- ploy-
ploy- ees
ees
Number (in thousands) with
long-term disability
insurance .| 11,827] 4,959] 3,671] 3,197
Percent
Total with long-term disability
insurance ... 100 | 100 | 100 | 100
With coverage for mental
illness 86 87 84 86
No limit 53 51 48 61
Coverage only
institutionalized ........... 1 -2 1 (4)
Duration of coverage
limited unless
institutionalized ..........1 27 30 29 a1
Less than 24 months ....) 1 1/0) 1
24 months 26 29 28 20
Greater than Cy] @y 1 -
Duration of coverage
FMRC -..sessssoseseesorssesees 4 5 5 2
Less than 24 months ....] (") | (") 1] (*)
4 5 5 2
PME Em
1 17) 1)
14 12 16 14

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

39



Contents—Continued

Tables—Continued
Page
151. Method of calculating disability retirement benefits 127
152. Requirements for disability retirement 128
153. Vesting requirements .... 128
154. Provisions for early receipt of deferred vested benefits . 129
155. Portability provisions 129
156. Postretirement pension increases “129
157. Employee contribution requirements 130
158. Eligibility requirements 130
Retirement plans:
159. Participation in combinations of plans 135
Savings and thrift plans: .
160. Summary Of provisions .........sssssssssecsssreessesessnsssnecssssonersssansnerssasssesossnvesscesssnesecssssnseessassennes 135
161. Transfer and rollover provisions 135
162. Maximum employee contributions 136
163. Method of determining pretax contribution .. 136
164. Maximum pretax employee contributions 137
165. Employer matching contributions .. 138
166. Discretionary profit-sharing contributions 140
167. Investment choices 140
168. Types of investments allowed 141
169. Types of investments allowed in plans permitting employees to choose investments 142
170. Method of allocating contributions to investment options in plans permitting employees
to choose investments .... 143
171, Frequency of investment changes in plans permitting employees to choose investments 144
172. Withdrawal availability ..... 145
173. Withdrawal requirements in plans. permitting withdrawals ... 145
174. Maximum amount that may be withdrawn in plans permitting withdrawals 145
175. Penalties imposed upon withdrawals of funds in plans permitting withdrawals 145
176. Loan availability ... 146
177, Loan requirements i in n plans permitting loans 146
178. Maximum amount that may be borrowed in plans permitting loans 146
179. Repayment provisions in plans permitting loan: 146
180. Method of distribution 147
181. Eligibility requirements 147
182. Vesting provisions 148
Deferred profit-sharing plans:
183, Employer contributions 148
184. Allocation of employer contributions to individual employee accounts .. 149
185. Selected plan features 149
186. Eligibility requirements .. 150
187. Vesting provisions 150
401(k) salary reduction plans:
188. Maximum pretax employee contributions ..... 151

xi


Tabie 36. Sickness and accident insurance: Minimum benefits Table 37. Sickness and accident insurance: Type of waiting
placed on percent of earnings formulas, full-time employees, period, full-time employees, medium and targe private
medium and large private establishments, 1993 establishments, 1993
Profes- Profes-
sional, ‘ Blue- sional,  naj| Blue- |
my [techni [FCA couar techni | HNC colar
cal, and ‘and Wait . All cal, and ‘and
Minimum benefit per week | © | and | S225 | service faiting period em 1 and | S25 | service
Ploy: | related| 2 | “em provision Ploy- | rotated siove em-
ome ome | BOF ao 2 [ame | 0% | oy
a ploy- ees Ploy- ees
® ees ees
‘Number (in thousands) with Number (in thousands) with
percent of eamings benefit | 8,290] 1,931] 2,302] 4,058 sickness and accident
insurance 12,699} 2,148} 2,742} 7,809
Percent
Percent H
Total with percent of earings i
benefit ...... | 100 100 100 100
Total with sickness and
33 37 33 30 accident insurance ..........]_ 100 100 100 | 100 i
2a | 35 | 30] 23 |
3 1 1 5 Waiting period not
1 1 1 1 dependent on sick
1 - 1 1 TOAVE ..asecsesecereen 88 83 85 90
67 63 67 69 Waiting period begins
Cec t ey] ey after sick leave ...... 3 6 4 2
Later of waiting period or
Average? sick leave? ..... levee 6 6 7 5 |
Earlier of waiting period or
Average minimum benefit per sick leave? 1 1] @) |] @)
week .... , $22 $27 $34 Not determinabl 4 4 3
1 Less than 0.5 percent. 7 Benefits begin when sick ieave is exhausted or the walting period Is i
‘The average Is presented for all covered workers; averages exclude i, whichever is later.
workers without the plan provision. Benefits begin when sick leave is exhausted or the walting period is
leted, whichever is earlier.
NOTE: Because of rounding, sums of individuat items may not equal totais. Less than 0.5 percent.

Where applicable, dash indicates no employees in this category. |
NOTE: Because of rounding, sums of individual items may not equal totals. i

‘Where applicable, dash indicates no employees in this category.

33


dollar amount in these formulas sometimes varies with
an employee's earnings or service, the predominant
method is to multiply a uniform (single) dollar amount
by years of service.

The basis of pension payments differs sharply by
employee group. A large majority of white-collar par-
ticipants are provided earnings-based pensions, whereas
dollar-amount formulas are commonly applied to blue-
collar participants.

In addition, two other types of defined benefit
pension formulas are used, although they cover only a
small percent of participants. Percent-of-contribution
formulas. specify a periodic contribution by an
employer, and occasionally by an employee, to a plan.
Benefits are a percent of total contributions, for
example, 1 percent of total contributions per month; if
career contributions totaled $40,000, then monthly
pension benefits would equal $400.

Cash account pension formula specify an employer
contribution and a rate of interest on that contribution.
Benefits are computed as a percent of each employee's
account balance. Although both percent-of-contribution
and cash account pension formulas resemble the
formulas in defined contribution plans, the Internal
Revenue Service classifies these plans as defined
benefit plans because the employer guarantees a certain
level of benefits.

In some pension plans, participants are eligible to
receive benefits from either primary or alternative for-
mulas, whichever yields a greater benefit. Alternative
formulas often are included to provide a minimum level
of benefits for persons with short service or low
earnings. For example, a plan may have the two fol-
lowing formulas: a primary formula of 1.25 percent of
average career earnings times years of service and an
alternative formula of $15 a month (or $180 a year) for
each year of service. In this case, the alternative for-
mula provides a higher benefit for persons with average
career earnings of less than $14,400 a year.

Private benefits and Social Security payments.
Regardless of whether they provide private retire-
ment plans, all employers (except certain exempted
ones) share the cost of Social Security coverage equally
with their employees. Because many plan sponsors feel
that private pension and Social Security benefits should
not be duplicative, pension plans may contain Social
Security integration provisions. Such integration may
take the form of an offset provision, under which part
of the Social Security benefit is subtracted from the
annuity, or a provision to calculate the pension at a
lower rate for earnings below the Social Security

113

taxable wage base‘ than for earnings above the base
(table 142).

Social Security offsets are usually applied immedi-
ately upon retirement, whether or not the retiree is eli-
gible for Social Security benefits. The offset typically is
specified as a small percentage of the Social Security
payment, for example, 1 percent times years of service.
Frequently the maximum offset is limited to 50 percent
of the Social Security payment.

Plans that apply lower pension benefit rates to an
employee's earnings below a specified level and higher
rates above that level are known as "step-rate excess"
plans. For example, a plan may provide a benefit equal
to i percent of earnings up through the Social Security
taxable wage base and 1.5 percent of earings above
the base for each year of service.

Benefit formulas are often coordinated with Social
Security for pension plan participants. In 1989 and
earlier surveys, the offset approach to coordinating
private pension plans and Social Security was more
prevalent than the éxcess approach, especially among
terminal-earnings-based plans. Since 1991, excess plans
have been the most frequently observed method of co-
ordinating benefits for all earnings-based plans. This
change resulted from the Tax Reform Act of 1986,
which imposed new rules for pension plans that coordi-
nate with Social Security benefits.2>-

Maximum and minimum benefit provisions

The Employee Retirement Income Security Act of
1974 (ERISA) and subsequent amendments place ceil-
ings on the size of annual pensions from defined benefit
plans. These restrictions largely affect only highly
compensated: employees.: Many plans, however, have
provisions that restrict benefit levels for all participants.
For example, some participants are in plans that limit
the number of years of service included in benefit com-
putations; maximums of 30 to 40 years are typical. For
other participants, annual pensions (usually including
Social Security payments) can not exceed either a
specified percent of average annual earnings, or a
specified dollar amount (table 143).

In some pension plans, participants are covered by a
provision for a minimum retirement benefit, regardless
of age or service. Such minimum benefits provide a
level of protection, such as a flat amount of $100 a
month, below which retirement benefits can not fall.

2% The Social Security taxable wage base increases annually. In
1993 it was $57,600,

25 For a comprehensive analysis of pension benefit formulas
integrated with Social Security, see Avy D. Graham, “Coordinating
Private Pension Benefits with Social Security,” Monthly Labor Review,
March 1984, pp. 35-38.



Table 5. Plan administration: Type of plan sponsor for selected employee benefit programs, full-time employees, medium

and large private establishments, 1993

(In percent)
Sickness and | Long-term
Plan sponsor Medical care} Life insurance accident disability Detned penett Savings and thrift
insurance insurance
All participants
Total 100 100 100 100 400 100
Single employer 94 98 81 99 90 400
Multiemployer’ 6 5 4 rc) 8 -
Employer association’ i) @ ) 1 ) -
Mandated benefits! ro) o) 16 - 2 -
Professional, technical, and
related
Total .. 400 100 100 100 100 100
Single employer 98 99 7 99 96 100
Multiemptoyer' 2 1 1 i) 3 -
Emptoyer association’ .. is] is) 19] 1 @ -
Mandated benefits’ 6 - 23 - 1 2
Clerical and sales
400 100 100 400 100 400
%6 97 7 100 95 100
3 3 2 a 4 -
1 io) ~ 19] 1 -
- - at - fv) -
400 100 100 100 100 100
91 92 83 400 a4 100
9 8 5 Q@ 12 ~
a Q a @ iv) -
- ie) 12 - 3 -

* Individual employers in the same or in a related industry contibut-
ing a negotiated amount to a trust {und providing benefits for employees.
‘covered under a collective bargaining agreement.

? Less than 0.5 percent.

° Band of medium and targe employers in a common trade or busi-
ness, for example, savings and loan associations. The plan sponsored
by the association is not negotiated with the employees.

“ The majority of the participants with mandated sickness and acci-

12

dent insurance benefits were covered by State temporary disability in-
surance plans. The remaining employees were covered by the Railroad
Unemployment Insurance Act. Mandated defined benefit pension plan
participants were covered by Railroad Retirement Tier 2.

NOTE: Because of rounding, sums of individual items may not equal
totals. Where applicable, dash indicates no employees in this category.



A Note on the Tables

The majority of the tables presented throughout this bulletin indicate the
percent of all employees, or of a selected group of employees, covered by
particular benefits and benefit features. Understanding the group of employees
about whom data are being presented is the key to using these tables; this
information is contained in the first row of each table. Some tables indicate the
percent of all employees covered by the survey who have a certain benefit; other
tables show the percent of employees covered by a certain benefit who have a
certain plan feature.

For example, table 1 indicates that 82 percent of all full-time employees
were covered by a medical care plan. In chapter 4, most of the tables present data
on the percent of workers with medical care who have certain provisions.
Workers with medical care equal 100 percent in these tables, with smaller
percentages indicating the availability of plan features. For example, in table 61,
100 percent refers to those workers with medical care plans, and 50 percent
indicates those workers with medical care covered by a fee-for-service plan.

Another type of table estimate presented throughout the bulletin displays
average benefit values rather than percentages of workers. These averages are
presented for all covered workers; averages exclude workers without the plan
provision.

Appendix A discusses all of these data calculations in more detail.



Contents—Continued i

Tables—Continued |
{
Page |
|
27. Average number of days at full pay by type of plan ....... 28 :
28. Annual plans: Unused sick leave policy and carryover provisions .. 29
29. Annual plans: Average number of days at full pay by unused sick leave policy .. 29
30. Length-of-service requirements for participation 30
31. Other uses of sick leave ..... 30
Sickness and accident insuranc
32. Method of payment .... 31
33. Flat dollar amounts ..........: 31
34, Fixed percent of earnings amounts 32
35. Maximum benefits based on percent of earnings formulas 32
36. Minimum benefits based on percent of earnings formulas .. 33
37. Type of waiting period 33
38. Duration of benefits .... 34
39. Bligibility requirements . 34 |
Long-term disability insurance:
40. Summary of provisions 35
41. Benefit waiting period 35
42. Method of payment . 36
43. Maximum benefits based on percent of earnings formulas 36
44. Limits on disability income 37
45. Duration of payments .. 37
46. Eligibility requirements 38
47. Survivor benefits 38
48. Coverage for mental illness 39
Medical care:
49. Summary of selected features .... 48
50. Contributory status by funding arrangement 49
51. Amount and type of employee contributions for individual coverage 50
52. Amount and type of employee contributions for family coverage 51
53. Pretax status of employee contributions ....... 52
54. Coverage for selected services, by type of plan 53
55. Coverage for selected services in non-HMO's 54
56. Coverage for alternatives to hospital care in non-HMO's 55
57. Coverage for mental health and substance abuse treatment in non-HMO's 56
58. Coverage for selected services in HMO's ..... 57
59. Coverage for alternatives to hospital care in HMO's 57
60. Coverage for mental health and substance abuse treatment in HMO's 58
61. Fee arrangement and financial intermediary .. 59
62. Administrative provisions in self-insured plans 60
63. Selected features in HMO's ... 60
64. Amount of individual deductibles in non-HMO' ..:.. 61
65. Relationship of individual and family deductibles in non-HMO's 62
66. Coinsurance rates in non-HMO' .... 63
67. Out-of-pocket expense provisions in non-HMO's .... 64

Vii



Table 148. Defined benefit plans: Requirements for normal Table 148. Defined benefit plans: Requirements for normal

retirement, full-time employees, medium and large private retirement, full-time employees, medium and large private
establishments, 1993 establishments, 1993 — Continued
Profes- Profes-
sional, 5 Blue- sional, ‘ Blue-
ay {techni |NA cotar ay | teotn |P1SNCA coftar
Requirements em- cal, | Stes and Requirements em cal, | sales and
for normal joy: | 2% | om. service for normal oy. and | “em. | Service
retirement! Pee related] ploy. | 2TM retirement! wee [related | ploy. | om
em- ‘ees ploy- em eo es ploy-
ploy- ees ploy- ees
ees ees
Number (in thousands) with Percer
defined benefit plan ... 16,015} 4,405] 3,939) 7,671
- 2
Percent At age 63 - 64 ...... 2{ (7) 3 4
‘i 2
Total with defined benefitplan..) 100 | 100 | 100 | 100 so erence | ay 1) | )
ie 2 - 2 2
No age requirement 5 6 5 5 at agete ofservice | CO) | ay | 2
No sel
@) | @) | @) | @) requi
requirement 26) 28 30 23
30 years of seer 4 5 1-4 years of service | 4 2 1 6
jore than 30 years of 5 of servi 45 1
rice @) (?) (?) 1 years of service ..... 6 18 13
Less than s 2 a? 2) 6-9 years of service | (7) | (7) 1 | (?)
than age 5 199) - {2} 40 years of service ..| 2 2 1 3
years of service...) ("} | —, ‘4 © 20 years of service | (2) | - | (2) | ()
” 1 1 1 1 25 years of service ... 1 - (?) 1
2 2 2 2 Sum of age plus service’ .. 8 aut 5 7
ice.) (7) | OY | CO) io) 2 3 1 2
25 years of service ...) (7) | (7) | (7) | () 1 1] (?) 1
30 years of service ... 3 3 3 2 3 4 2 3
@ | - 1@)] 5 Equals 90 my 2{ (?) 1
2 rf 2 2 Equals More than 90 1 2 1 1
Sannanonee
j @)|@)] = | @) 1 Normal retirement is defined as the point at which the participant could
Fa 18 13 10 14 retire and immediately receive all accured benefits by virtue of service and
by earnings, without reduction due to age. Ifa plan had altemative age and
By requirement 3 3 2 3 service requirements, the earliest age and associated service were tabulated;
i 5 years of service 3 5 3 3 itone aemative id hot specify an age, it was the requirement tabulated.
: an 0.5 percent.
Q io years ot ervice “ e) e) e) ) 3 insome plans, parcipants must also saisty a minimum age or service
. 20 years of service ..| (2) | (2) | (7) | (7) requirement:
25 years of service...) 1 1 1 1 NOTE: Because of rounding, sums of individual items may not equal totals.
30 years of.service ... 4 2 2 5 Where applicable, dash indicates no employees in this category.
More than 30 years
of service (2) ) @) | @) | @)
At age 61 errs @ {| - | - | @
7 15 years of service (?) - - (7)
a 21 17 21 23
3 2 4 3
5 years of service 5 6 7 4
10 years of service 7 3 5 10
15 years of service 1 1 1] (7)
20 years of service .... 2 2 2 3
21 - 24 years of
service ... (?) 1] @) | @)
25 years of service 4] ()] @) 1
30 years of service ... 1 1 i 1
More than 30 years
OFSEFVICD veecenseee] 1 1 a] (?)
See footnotes at end of table.
125



Table 120. Life insurance: Multiple of earnings benefit
amounts, full-time employees, medium and large private
establishments, 1993

Formula. ploy-
ees

Profes-
sional, i Blue-
techni: |") collar
cal, and
» | sales ry
and em- | Service
related | roy. | oTM
em- | ‘ges | Ploy
ploy- ees
ees

‘Number (in thousands) with
multipte of earnings basic
life insurance ....

15,309] 5,596] 4,831) 4,882

Percent
Total with multiple of eamings
formula ........ 400 | 100 | 100 | 100
Flat multiple of earnings? ..| 99 99 99 99
Less than 1.0 .. 7 4 4 4 5
54 48 56 58
13 13 1 13
22 25 at 19
3 5 3 2
2 2 2 1
1 2 4 1
Multiple varies by
earings ...... men nO a
‘Multiple varies by service 1 @) 1 1
Average?
Average flat multiple of
eamings formula ..... 1.4 15 1.4 14

1 Less than 0.5 percent.

2 includes participants in plans in which insurance equaled a multiple of

eamings, plus or minus a specified amount.

3 ‘The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

103



Table 65. Non-health maintenance organizations:

‘medium and large private establishments, 1993

Relationship of individual and family deductibles," full-time employees,

All em; es Professional, technical, Clerical and sales Blue-collar and service
iployet and related employees employees employees
Kanehin of inci Pre- Pre- Pre- Pre-
Fo cadccnaualand | ay | Fee- | tered | an | Fee- | fered] at | Foo- | sencal au | Feo. | tee
ily deduct Ron: | for | pro- | non | for. | pro- | non- | for- | pro- | non- | fore | pro-
HMO | service} vider | HMO |servica| vider | HMO |service| vider | HMO | service vider
plans | plans | organi-| plans | plans | organi-{ plans Plans }organi-} plans | plans | organi-
zations zations zations zations
Number (in thousands) in
non-HMO plans ... 18,179] 11,802] 6,077] 4,709} 2,709] 1,695] 4,268] 2,450 1,762] 9,202] 6,644] 2,420
Percent
Total with non-HMO plans ......... 100 100 100 100 100 100 100 100 100 100 100 100
Individual and family
deductibles specified ...... 74 78 68 70 74 67 7 82 71 74 7 66
Family deductible is
multiple of individual
it 63 65 60 63 66 59 67 70 64 61 62 58
1 1 - @) | (8) - 1 1 - 1 2 -
1 1 1 1 1 11 (3) | (8) 1 1 1 1
32 uM 29 4 37 31 35 39 29 30 32 26
1 1 1 1 1 1 1 1 () 1 2 1
3 4 2 3 4 2 3 5 1 3 3 3
(8) 1] (8) 1 os B60 God Bd Go 1] (8%)
24 22 27 23 22 24 27 24 31 23 22 27
M7, A-e,ea,e 1) 8) 1 8) F 8) [| - @)
Specified number of -
individual deductibles
must be met to satisfy
family deductibles...) 14 13 8 7 8 7 10 12 7 13 15 8
Less than 3 individuat
deductibles es 5 6 3 3 4 1 6 7 4 5 6 3
3 individual deductibles 6 7 5 4 3 6 4 5 3 8 10 5
More than 3 individual
deductibles wn] (2) 1 (3) | (3) | (9) - (8) | (8) - (io i no I BG
No individual and/or family
deductible ...... 26 22 32 25 3 23 7 29 25 22 4
1 - 1 2 : @) | @) - @®) | @) -

* Deductibles are calculated on an annual basis with the enrollee

responsibe for satistying a new deductible requirement each plan year.
2 For

». the individual deductible requirement is $100 while the

example,
familly deductible requirement is $300.
9 Less than 0.5 percent.

* For example, the individual requirement is $100 and three individual
deductibles must be met to satisfy the family requirement.

NOTE: Because of rounding,

‘sums of individual items may not equal totals.

‘Where applicable, dash indicates no employees in this category.



Table 11. Pald holidays and vacations: Average number of Table 12. Paid holidays: Percent of full-time employees by

days for full-time employees, medium and large private number of pald holidays provided each year, medium and
establishments, 1993 . large private establishments, 1993
Profes- Profes-
sional, | Clerical |Blue-col- sional, | Clerical |Blve-col-
Alvem. | techni- | and | tar and ‘allem. | techni} and | lar and
ttem ployees {C2 and] sales | service Number of days ! cal, and} sales | service
YeeS | related | employ- | employ- Bloyees | Tetated | employ- | employ-
empioy-| ees ees employ-| es ees
ees ees
102] to6 | i103 | 99
Total with paid holidays... 100 | 100 | 100 | 100
Paid vacation by minimum length of Under 5 day 1 ) 1 2
service requirement:* 2 1 2 2
94] 120] 96 | 79 “) 0) ¢) -
‘ 12] 129 | 112] 103 11 8 15 11
136 | 156 | 138 | 123 “) Y ) Y
166 | 194 | 167 | 155 8 6 9 8
188 | 204] 192 | 176 ) 0) 0) )
204 | 220 | 205 | 195 12 4 13 12
216 | 232 | 216 | 206 0) 0) ) Q
arg | 236 | 219 | 209 11 10 12 1"
iv) oO 1 «)

* Employees either are granted a specified number of days after com- a 3) |
pletion of the indicated length of service or accrue days during the next 12 6 a 14 14
month period. The total number of days are assumed available for use im- ° 0 Py 0
mediately upon completion of the described length of service interval. » » é a

? Employees receiving vacation days, but none at 1 year of service, 1 7 ° 0
were included only for the service periods for which they receive vaca- + H 4 a

Ss.
i lays 4 2 2 6
The average (mean) was essentially the same for longer lengths of Number of days not avaliable rm) ny 0 1

NOTE: Computation of average included partial days and excluded " Less than 0.5 percent.

workers with zero holidays or vacation days.
NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

Table 13. Paid holidays: Percent of full-time employees by
policy on holidays that falt on a regularly scheduled day off,
medium and large private establishments, 1993

Profes-
‘sional, | Clerical |Blue-col-
techni- | and | lar and
Holiday policy ployees cal, and] sales | service

Total with paid holidays

Holiday is not observed ....

Another day off is granted .... 79 82 83 75
Additional day's pay in lieu of

holiday ... 5 2 4 8
Another day off or day's pay,

depending on when holiday falls.) 9 1 6 "1
Another day off or holiday not

‘observed, depending on when

holiday falls . 2 1 2 3

Other provision applies
Holiday policy not determinabie ..

* Includes plans where the policy differs by holiday.

NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

17



_

Table 163. Savings and thrift plans: Method of determining
pretax contribution, full-time employees, medium and large

‘Table 162. Savings and thrift plans: Maximum employee
contributions,’ full-time employees, medium and large private

establishments, 1993 private establishments, 1993
. Profes- Profes-
sional, | a), Blue- sional, .
: * | Clerical , {Clerical Blue~
an [techni and | collar an |fchn- "and | collar
Maximum employee em- and sales service Pretax contributions em- | and | Sales | and
contributions Ploy- | reiated| 2 | om ploy- | stated | em | service
ees |e | PY | soy ees | me | Bley | em
Ploy- ees Ploy- | $°S | Ploy:
ees ees ees
Number (in thousands) with Number (in thousands) with
‘savings and thrift plans .......| 8,284} 2,933] 2,470} 2,880 savings and thrift plans .......] 8,284] 2,933] 2,470] 2,880
Percent Percent
Total with savings and thrift ‘Total with savings and thrift
plans .. 100 | 100 | 100 | 100 plans .. 100 | 100 | 100 | 100
Percent of employee Pretax contributions allowed | 99 | 100 | 99 | 98
e2 | a9 | 93 | 94 All contributions must be
2 2 2 3 so | 56 | 54] 57
2 2 2 3
1 1 1 1 Pp 29 | 29 | 33 | 24
4 | (2) 1 3 Contributions up to
8.01 - 8.99 percent () 4 1 1 ‘specified percent may
9 percent 2 4 1 2 be pretax... | 44 4 ei
10 percent 14 { 10] t6] 15 Initial contributions must
11 percent 4] (4) ]-4 1 be pretax; additional
12 percent 8 9 8 8 contributions can not
42.01 ~ 12.99 percent (7) | (7) 1 - be pretax ... a 3 3 2 5
43 percent 3 4 2 4 Initial contributions raust
5 5 6 4 be pretax; all
21 20 | 24] 18 additional
iw | 19 | 21 15 contributions may be
4 4 3 6 pretax 1 (1) 1 1
(?) 1 @) | @ - Initial contrit
8 3 2 3 be pretax; additional
(2) | ¢?) - (7) contributions up to a
(7) 11 (4) | () ‘specified percent may
4} 3] 3] 5 be pretax ... Dap ms man a Gn a)
20.01 - 24.99 percent ... 1 1 1 1 No pretax contributions
25 percent or more 1 1 (7) 2 allowed .. a1) 1 2
Specified dollar amour 2 3 2 1
Up to the Intemal Revenue
Code limit . .| 6 8 5 5 * Less than 0.5 percent.
‘Average? NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.
Average maximum contribution
(percent of eamings) .........| 13.8 | 14.0 | 137 | 137

1 Includes contributions that are not matched by the employer. If
maximum contributions vary, such as by length of service, the highest

posgible contribution was tabulated.
Less than 0.5 percent.

3 The average is presented for all covered workers; averages exclude

‘workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

136



¢ 83 percent of participants in non-HMO plans had an
individual limit on out-of-pocket expenses; the
average limit was $1,319;

© 77 percent of non-HMO participants had a lifetime
maximum apply to their benefits, generally
$1,000,000.

Coverage for selected medical services varied:

« All of the participants in medical care plans had
coverage for hospital room and board; virtually all
medical care participants were covered by
physicians visits in the hospital, surgery, and x-ray
and laboratory services;

© Coverage for alternatives to hospitalization, such as
stays in an extended care facility and home health
care, was available to over four-fifths of medical
participants; it was more common for these 2
alternatives to hospitalization to be covered under
HMO's than non-HMO's.

A variety of managed care features were included in
medical care plans. For example, 74 percent of workers
covered by non-HMO plans were required to’ get
preadmission certification before entering the hospital.
Second surgical opinion provisions applied to 75
percent of the non-HMO participants; the majority of
these plan enrollees were assessed penalties for not
obtaining second opinions. Ninety-six percent of all
PPO participants had hospital room and board coverage
treated more generously if care was received at
specified hospitals; it was somewhat less likely for
surgery, physicians services, and outpatient prescription
drugs to be subject to an incentive for using preferred
providers.

Prescription drug coverage was provided to nearly
all workers in medical care plans.

© One-fourth of prescription drug participants
received higher reimbursement for obtaining
generic rather than brand name prescriptions;

¢ Mail order drug programs were also available to
one-fourth of workers who had prescription drug
coverage;

e It was more likely for non-HMO participants to
have prescription drug coverage than HMO
participants;

© Prescription drugs were rarely covered in full.

Though available to nearly all participants, mental
health coverage and alcohol and drug abuse treatment
had more restrictive provisions than other ailments. Of
the medical care participants with mental health
benefits, 85 percent had more restrictive hospital

coverage for mental illness than for other ailments;
coverage was even more restrictive for mental health
care outside of the hospital.

Other medical features reveal:

© 44 percent of full-time participants were required to
complete an eligibility requirement before being
able to join the plan, usually 3 months or less;

© 53 percent of non-HMO participants were subject to
a "pre-existing condition" clause upon joining the
plan;

« 52 percent of participants were in plans that
provided medical care coverage after retirement.

Among dental care participants:

© Virtually all workers had coverage for preventive
and restorative dental procedures, and just over
seven-tenths had coverage for orthodontia;

e The overwhelming majority or participants were
Teimbursed by a percent of the usual, customary,
and reasonable charge for all dental procedures;

© 44 percent of participants had to contribute toward
the cost of their individual coverage, and 66
percent were required to contribute toward family
coverage; -

© 64 percent of workers were in plans that specified a
deductible amount before any benefits were paid
by the plan, most commonly, $50 per year;

e 83 percent of participants were in plans that
specified an annual maximum benefit; the most
prevalent limit was $1,000 per year;

e Among participants with orthodontic services, 86
percent were subject to a separate lifetime
maximum benefit, most commonly $1,000.

Data for vision care participants reveal:

e All participants had coverage for eyeglasses; with
few exceptions vision care participants had
coverage for eye examinations and for contact
lenses;

e The overwhelming majority of vision participants
had their coverage subject to limitations; in most
cases the participants were subject to a scheduled
dollar allowance per benefit.

Life Insurance

Life insurance protection was available to 91
percent of full-time employees in medium and large
establishments in 1993. (See chapter 5.) Among full-
time employees with life insurance protection:

a



pension plan. These plans accumulate funds through a
fixed contribution to accounts set up for each
employee. Typically, employer contributions are a
percent of employee salary, such as 3 percent per year.
These contributions, plus earnings, are available at
retirement. In general, employee contributions are
neither required nor allowed, employees do not
Participate in investment decisions, and accounts may
not be accessed—by either withdrawal or loan—prior
to retirement.

These plans are referred to as pension plans because
they often provide a periodic payment to employees at
retirement. This is accomplished by using the funds
accumulated in each employee's account to purchase an
annuity—often from an insurance company—that
guarantees a periodic payment for life. Other payment
arrangements may be available, though, including a
jump sum or series of installments.

Stock plans

Two types of stock plans are considered defined
contribution plans—stock bonus plans and employee
stock ownership plans.” A stock bonus plan specifies
employer or employee and employer contributions to a
trust fund that invests in various securities. Employee
stock ownership plans (ESOP's), however,.are generally
wholly employer financed and must be designed to
invest primarily in company stock. ESOP's may be used
as the means by which employees purchase their own
company, with stock distributed to individual employee
accounts periodically as loans used to finance the
purchase are repaid,

Both types of stock plans make benefit distributions
in either company stock or cash. Stock plans are found
infrequently among full-time employees in medium and
large private establishments.

Cash or deferred arrangements

Plans with a cash or deferred arrangement enroll
many employees within the scope of the survey.**
‘These arrangements, also known as 401(k) plans, allow
Participants to choose between receiving currently

37 Stock purchase plans and stock option plans are considered
separate employee benefits and are discussed in chapter 1.

38 For 401(k) plans with no employer contribution, participants are
those workers actually making pretax contributions. For other plans,
participants are those workers in plans offering cash or deferred
arrangements, whether or not workers actually made pretax
contributions,

134

taxable income or deferring taxation by placing the
money in a retirement account. Cash or deferred
arrangements usually take the form of either salary

reduction plans
allocations.

Salary reduction plans allow employees to contrib-
ute a part of their earnings to a retirement plan, and
defer income taxes on those contributions and their
earings until distribution (table 188). Such contribu-
tions are referred to as "employee elective deferrals" or
“pretax contributions.”

Salary reduction features, more common among
white-collar employees than among blue-collar
employees, are available through several types of
defined contribuiion plans. The most frequently
observed vehicle for salary reduction is a savings and
thrift plan. The remainder generally make salary
reduction contributions through a profit-sharing plan or
a freestanding plan, that is, a plan set up for employee
salary reduction with no employer contribution.

Deferrals of profit-sharing allocations give
employees the choice of receiving an employer's profit-
sharing contribution immediately in cash, or deferring
the contribution and postponing taxation until
distribution. Such arrangements are infrequent.

In addition to data on provisions of individual
defined contribution plans, information is also available
on the provisions of 401(k) salary reduction plans that
include employer contributions. The following
provisions (tables 189-195) are examined:

or deferrals of profit-sharing

Plan participation requirements;
Investment choices;

Vesting schedules;

Transfer or rollover of distribution;
Availability of withdrawals and loans; and
Distributions at retirement.

eoenes

The growth of 401(k) plans has helped to expand
the defined contribution plan as a savings vehicle for
retirement. Unlike some defined contribution plans,
such as money purchase plans, 401(k) plans generally
Tequire employee contributions as a condition of
participation and then require the individual employee
to decide how much pay to save. Finally, the
Participant must determine where to invest the
aggregated funds, including matching employer
contributions, to enhance retirement income.



Table A-5. Standard errors for table 27 — Paid annual sick
leave: Average number of days at full pay, full-time
employees, medium and large private establishments, 1993

Profes-
sional, 5 Blue-
ay techni: [1M copar
cal, and
em- 4 | Sales
Item and service
Ploy- em-
ees | "lated ploy- | om
om | ‘ees | Ploy
ploy- ees
ees
Paid annual sick leave days
by minimum fength of
Service requirement:
After 1 year 0.75 | 1.34 | 060 | 1.16
i After 3 years J 1.58 78 | 1.415
H After 5 years d 1.61] 1.45 | 1.14
‘ After 10 years A 1.68 | 1.99 | 1.19
Q After 15 years 1. 1.79 | 2.06 | 1.20
After 20 years 5 1.82 | 2.09 | 1.24
After 25 years A 2.13 | 212 | 1.27
Paid per disability sick leave
by minimum length of
service requirement:
After 1 year .. 4.97 | 853 | 367 | 6.99
After 3 years 458 | 7.74 | 3.52 | 6.13
After 5 years 3.90 | 622 | 3.25 | 621
After 10 years .. 2.97 | 4.21 | 3.90 | 5.84
After 15 years E 4.28 | 4.32 | 5.82
After 20 years 4.67 | 5.04 | 6.06
After 25 years 5.42 | 610 | 686

177

Table A-6. Standard errors for table 29 — Paid annual sick
leave: Average number of sick days at full pay by
accumulation policy, full-time employees, medium and large
private establishments, 1993

Profes-
sional, Blue-
techni- | Clerical) conar
All and
em- | sales | and
ltem and ‘service
Ploy: | related | 9
ees ploy. | om
em- | ‘eas | Ploy-
ploy- ees
ees
After 1 year of service:
Cumutative plan .... 0.18 | 018 | 035 | 0.22
Noncumutative plan .. 1.88 | 3.91 1.29 | 2.63
After 3 years of service:
Cumulative plan 28 37 25
Noncumulative plan 438 | 158 | 256
Atter 5 years of service:
Cumulative pian .. 38 42 29
Noncumutative plan 430 | 238 | 252
After 10 years of service:
Cumulative pian ... le. 55 52 32
Noncumulative plan 440 | 430 | 258
After 15 years of service:
Cumulative plan ... 85 68 86
Noncumulative plan 455 | 435 | 2.62
After 20 years of service:
Cumulative plan ..... 85 -70 389
Noncumulative plan .. 4.64 | 4.45 | 2.76
After 25 years of service:
86 71 39
5.22 | 455 | 2.83



Table 22. Parental leave: Percent of full-time employees by

parental leave policy, medium and large private establish-
ments, 1993
Profes-
sional, | Clericat /Blue-col-
‘Alem. | techni | and | lar and
Employer leave policy cal, and{ sales | service
- Ployees | related | employ- | employ-
employ-| ees | ees
ees
+ Total . 100 | 100 | 100
Eligible for parental leave’ 63 66 62 .| 60
Eligible for maternity leave 62 66 62 60
Paid days only 1 2 11 0
Unpaid days only 59 60 58 58
Both unpaid and paid day: 2 3 2 1
information not available on
‘type of days: 1 2 1 1
Not eligible for matemity leave ...} e a fo)
Eligible for patemity leave 54 56 53 53
9) 19) 1 iv)
52 53 50 52
1 1 1 fo)
Information not available on
type of days 1 1 1 a
Not eligible for patemity leave ....| 9 10 10. 8
Not eligible for paréntal leave 37 34 38 40

* Parental leave includes plans providing maternity leave only, paternity
eave only, and both maternity and paternity leave.

® Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

Table 23. Unpaid maternity and paternity leave’: Percent of
eligible full-time emptoyees by maximum duration of
benefits, medium and large private establishments,

Profes-
sional, | Clerical |Blue-col-
All eligi-| techni- | and | lar and
Duration ble em-|cal, and] sales | service
ployees | related | employ- | employ-
employ-| ees | ees
ees
Total with Unpaid Maternity |
100 | 100 | 100 | 100
1 1 1 i
1 2 1 a
13 10 4 15
1 1 e 1
36 33 31 40
5 5 5 4
3 4 2 2
6 6 9 5
12 13 15 9
21 @ 1 4
1 1 2 1
8 10 9 6
3 3 1 4
Q a 1 a
iy) Oo 0 0
8 8 9 7
a 4 19) is)
co) (0) = 6
1 2 1 6
Average months 430 | 494 | 432 | 390
Total with Unpaid Paternity
Leave .. 100 | 100 | 100 | 100
Under 4 month 2 1 2 2
1 month 1 1 1 iv)
Over 1 but under 2 months 9 6 9 12
2 months 19) o is) 19)
Over 2 but under 3 months 40 39 35 44
3 months .... 4 4 4 5
Over 3 but under 4 months 3 4 3 2
4 months .... 7 7 10 6
Over 4 but under 5 months 12 14 16 9
5 months 2 i) ) 4
‘Over § but 1 1 2 1
6 months .... 7 9 9 5
‘Over 6 but under 9 months 2 1 1 3
9 months ... i) ) 1 (o)
‘Over 9 but under 12 months ra) - a -
12 months .. 8 9 9 6
‘Over 12 but under 24 months te) 1 ro) Q
24 months .. 0 a) ~ Q
‘Over 24 months 1 2 1 eo
‘Average months ... 428 | 509 | 430 | 3.0

* Includes only pians that allowed a fixed number of unpaid leave days.

? Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal to-

tals. Where applicable, dash indicates no employees in

this category.


Table 198. Summary: Participation’ in selected employee benefit programs, full-time employees, by
geographic region, medium and large private establishments, 1993

Benefit Northeast South North Central West
Paid time off:

Holidays 94 92 93 87

Vacations .. 98 96 98 96

Personal leave 40 16 18 13

Lunch period 15 9 7 3

Rest period 49 69 72 82

Funeral leave 86 80 87 7

Jury duty leave 95 91 92 79

Military teave 59 48 57 48

Matemity leave 3 2 2 3

Paternity leave 1 4 (7) 2

Unpaid time off:
Matemity jeave 70 47 54 79
Paternity leave 60 42 43 73
Disability benefits:

Short-term disability protection .. 94 79 93 82
Paid sick leave .. 70 60 60 73
Sickness and accident insurance 68 33 50 25

Long-term disability insurance .. 40 37 47 4

Survivor benefits:
Life insurance 93 88 95 88
Accidental death and
dismemberment ... 14 61 74 - 68
Survivor income benefits 5 4 7 5
Health care benefits:

Medical care ... 83 80 84 79

Dental care 62 52 65 72

Vision care .. 3 7 24 40

Outpatient prescription drug

coverage .. 82 79 83 78

Retirement income benefits:

ir 81 74 82 7

58 50 60 55

46 52 46 52

24 33 aT 3t

i 7 10 14

Employee stock ownership 3 3 3 3
Money purchase pension 12 5 8 9

Cash or deferred arrangements:

With employer contributions 31 40 33 40
No employer contributions .. 8 4 8

1 panicipants are workers covered by a paid time off, full premium are ouside the scope of the survey. Only curent
insurance, retirement, or capita-accumulation plan. Employees employees are counted as participants; retirees are excluded.
subject to a minimum service requirement before they are Less than 0.5 percent.
eligible for benefit coverage are counted as participants even if 3 Includes defined benefit pension plans and defined
they have not met the requirement at the time of the survey. If contribution retirement plans. The total is less than the sum of
ered yaes are required 19 pay part of the cost of a benef, only the individual tems because many employees participated in
those who elect the coverage and pay their share are counted —_—both types of plans.
as participants. Benefits for which the employee must pay the

159



|

To meet the needs of data users interested in
specific benefit topics, Employee Benefits Survey data
are used to prepare three series of short publications.
Understanding Employee Benefits is a popularly written
series of flyers covering benefits. Recent topics include:

The Employee Benefits Survey

The Health Care Puzzle

Retirement and Capital Accumulation
Employee Benefits in Small Establishments
Benefits for the Family

Employee Benefits for Teachers in the Public
Sector

Employee Benefits Briefs are one-page highlights of
benefits topics. Recent briefs cover:
Portability of. Pension Benefits Among
Jobs—November 1994

Employees Benefits For Union and Nonunion .

Workers—Semptember 1994
Dental Care Benefits—July 1994

Nontraditional Benefits—May 1994
Reimbursement Accounts—March 1993

‘U.S. GOVERNMENT PRINTING OFFICE: 1995 —

179

Surgery Benefits—January 1994
Preferred Provider Organizations—November
1993

Issues in-Labor Statistics is one of a series of BLS
occasional reports that present information of curr-
ent interest. Recent reports on employee benefits
include:

Parental Leave Benefits Provided by Employers,
Summary 93-1, March 1993. .

Health Care Benefits Under Close Scrutiny,
Summary 93-2, March 1993. ,

Electronic data are also available. Through the BLS
LABSTAT on-line data service, users may access
Employee Benefits Survey news releases and historicat
data on major benefit incidences and provisions.

More information may be obtained by writing the
Employee Benefits Survey, Bureau of Labor Statistics,
2 Massachusetts Avenue, NE. Room 4160,
Washington, DC 20212-0001. Public information is
also available by telephone at 202-606-6222.

385 15



BACT E oo Napanee ZR

age

eat neRRATA

meres

Table 108. Dental care benefits: Coverage for selected procedures, full-time employees, medium and large private

establishments, 1993 — Continued

Type of dental procedure
Extent of coverage ‘nag | Petiodon- | Endodon- Prosthet- | Ortho-
Exams | X-rays | Surgery'| Fillings | +) care tics Crowns ies dontiaz
Percent
Clerical and sates
Total with dental care ..... 100 100 100 100 100 100 100 100 100
100 100 100 100 99 100 99 97 69
10 1 4 7 4 4 1 1 (4)
10 10 15 16 15 15 16 15 10
2 1 6 3 6 7 7 7 7
76 76 73 72 72 73 73 73 50
2 2 2 2 2 2 1 1 1
- - 1-4) - 1 (4) 1 3 31
Blue-collar and service
Total with dental care ..... 100 100 100 100 100 100 100 100 100
Covered 100 100 99 100 99 99 97 96 74
In full. 7 | oo 4 8 4 4 2 2 ()
Scheduled cash

allowance ..... 14 14 16 17 16 1s 16 15 11
Subject to copaym 3 1 5 2 5 5 6. 6 5

Percent of usual,

customary and

70 71 71 69 70 70 72 72 56
3 3 4 4 4 4 1 1 1
- - 1 - 1 1 3 4 26

1 Excludes plans that limited coverage to accidental injuries, removal
‘of impacted wisdom teeth, or repair of jaw.

2" Panticipants were included as having coverage for orthodontia in
cases where benafits were limited to children.

3 Includes plans that paid the full cost with no deductible or maximum
dollar amount.

4 Less than 0.5 percent.

5 Participant pays a specific amount per procedure and plan pays all
remaining expenses. In the case of orthodontia, the copayment is

generally applied once per lifetime.

& Includes plans that provide care based on an incentive schedule or
discounted ‘benefit. An incentive schedule is a reimbursement
arrangement in which the percentage of dental expenses paid by the plan
increases if regular dental appointments are scheduled. Discounted
benefits are available it obtained from an approved provider.

NOTE: Because of rounding, sums of Individual items may not equal
totals. Where applicable, dash indicates no employees in this category.



Additionally, some who can make withdrawals have a
penalty imposed if they do so. Most commonly,
penalties involve suspending employee contributions,
and employer matching contributions, for a given
period, such as 6 months or 1 year. Other penalties
include suspending employer matching contributions
only, or forfeiting nonvested employer contributions.

Another method of accessing an employee's account
prior to final payout is a loan, the availability of which
has risen steadily in recent years. Loans usually have to
be repaid within 5 years, but longer payment periods
may apply for home purchase or renovation loans.

Interest rates on employee loans are typically
determined by a specific economic indicator (such as
the prime rate or U.S. Treasury bill rate), are at the
discretion of the plan sponsor (employer, employer
association, or union), or vary by the reason for the
Joan. In the last case, loans for the purchase of a home
are often available at lower rates than other loans.

Distribution. (See table 180.) At retirement, savings
and thrift plans virtually always allow for payout in the
form of a lump sum. Many participants can choose
from among a lump sum and other options, such as a
lifetime annuity or installments over a specified period.

Participation requirements. (See table 181.) Minimum
age and/or service Tequirements are frequently imposed.
on new participants in savings and thrift plans. To
begin accumulating benefits, a large majority of
savings and thrift plan participants must complete a
minimum amount of service, commonly 1 year, but
usually are not required to be a designated minimum
age.

Vesting. (See table 182.) Saving and thrift plans are
subject to the same vesting rules under the Employee
Retirement Income Security Act as defined benefit
plans. Vesting schedules vary significantly, however,
between defined benefit and savings and thrift plans.
All vesting schedules apply to employer contributions;
employee contributions (including pretax contributions)
are always 100-percent vested.

Immediate full vesting is often provided in savings
and thrift plans. In addition, graduated vesting, in
which an employee's nonforfeitable percentage
increases over time until it reaches 100 percent,
commonly after 5 or 7 years, applies to a large number
of participants in savings and thrift plans. In contrast,
few defined benefit plan participants have either
immediate full vesting or graduated vesting.

"Cliff" vesting, in which no vesting occurs until an
employee satisfies the service requirements for 100-
percent vesting, is more common in defined benefit

133

plans than in savings and thrift plans. Savings and thrift
plan participants covered under a cliff vesting schedule
are usually fully vested after reaching 5 years of
service.

Finally, class-year vesting—under which employer
contributions for a particular year (class) become
nonforfeitable after a specific period of time, usually 2
years—applies to few saving and thrift plan
participants.

Deferred profit-sharing plans

Deferred profit-sharing plans, although not as
widespread as savings and thrift plans, are available to
a significant number of employees. Most deferred
profit-sharing plans hold money in employee accounts
until retirement or another condition stipulated by the
plan (for example, disability or death). In some plans,
however, the employee may have a choice to receive a
portion of the profits in cash, with the remainder placed
in a deferred account.

Many participants in deferred profit-sharing plans
have employer contributions determined by a specified
formula, such as 4 percent of profits if annual sales
were $2 million to $5 million, and 8 percent if. sales
exceeded $5 million. The remaining participants are in
plans in which the employer determines its contribution
at its own discretion (table.183).

Once the employer contribution is determined, the
plan may allocate it to individual participants in a
number of ways (table 184). A common method of
allocation is as a proportion of salary. Other allocation
methods include formulas based on earnings and
service, participants' contributions as a percentage of
total contributions, and equal allocations to all
participants. Plan features, such as loans and
withdrawals from employee accounts, are seldom
available to participants in deferred profit-sharing plans
(table 185).

Deferred profit-sharing plans may allow employees
to contribute to their’plan as a means of increasing the
value of their account. However, it is infrequent for
employees to be required to contribute to such plans.
Plans typically give employees only limited
opportunities to make investment choices. Plan
participation and vesting requirements tend to be
similar to those found in saving and thrift plans (tables
186-187).

Money purchase pension plans

Another type of defined contribution plan, available
to a small percent of full-time employees in medium
and large private establishments, is a money purchase

36 profit-sharing plans that pay benefits directly to the participants
in cash are not considered defined contribution plans; they are reported
in chapter 1.



Table 98. Alcohol abuse treatment benefits: Limits on
coverage in non-health maintenance organizations, full-time
employees, medium and large private establishments, 1993

Table 99. Drug abuse treatment benefits: Limits on coverage
in non-health maintenance organizations, full-time employees,
medium and targe private establishments, 1993

Profes- a Protes-
sional, i lue- sional, i Blue-
techni |) couar techni- |etieall colar
Allem-} cal. | cates and Allem-) cal, | Sigs | and
Caverage limitation ploy- jand re- ‘em- service Coverage limitation ploy- | and re- en- service
ees | lated ploy- em- ees | lated ploy- em-
em- ‘08. ploy- em- ped ploy-
ploy- ees ploy- ees
ees ees

Inpatient detoxification’ Inpatient detoxification’

Total 100 100 100 100 100 100 100
No limits 24 27 25 22 27 25 24
Subject to separate li - 76 73 75 78 73 75 7%

Days 53 50 50 58 50 51 53
Dollars .. 45 a 50 4 41 49 45
Coinsurance 13 13 16 12 13 16 an!
Copayment .. 2 2 2 2 2 2 2
Inpatient rehabilitation?
100 100 100 100 100 100 100
10 13 13. 7 12 12 7
Subject to separate limits? .. 90 87 87 93 88 88 93
Ds 63 59 60 66 59 61 65
52 48 57 52 50 58 54
15 16 18 14 Coinsurance ... 16 18 14
3 3 3 2 Copayment 3 3 3 2
Outpatient rehabilitation*
100 100 100 100 Total .. 100 100 100 100
9 12 10 6 No fimits .. 8 " 9 6
91 88 30 94 ‘Subject to separate limits? 92 89 91 94
42 39 40 44 Days ... 40 39 41 4a
66 64 68 65 Dollars 67 65 69 67
42 39 44 43 Coinsurance .. 43 39 44 45
4 5 4 3 Copayment 4 5 4 3

1 Detoxification is the systematic use of medication and other methods
under medical supervision to reduce or eliminate the effects of substance
abuse.

2 Separate limitations indicate that alcohol abuse treatment benefits are
more restrictive than benefits for other treatments. For example, if a plan
fimits inpatient rehabilitation care to 30 days per year, but the limit on.
inpatient care for any other type of illness is greater than 30 days per year,
the plan contains separate limits. The total is less than the sum of the
indiyidual tems, because many plans had more than one type of limitation.

3 'Rehabiltation is designed to alter the abusive behavior in patients once
they are free of acute physical and mental complications.

Includes treatment in one or mora of the following: outpatient
department of a hospital, residential treatment center, organized outpatient
clinic, day-night treatment center, or doctor's office. If benefits differed by
location of treatment, the location offering the most beneficial coverage was
tabulated.

NOTE: Because of rounding, sums of individual items may not equa! totals,
‘Where applicable, dash indicates no employees in this category.

1 Detoxification is the systematic use of medication and other methods
under ‘medical supervision to reduce or eliminate the effects of substance

se.

2 Separate limitations indicate that drug abuse treatment benefits are
more restrictive than benefits for other treatments. For example, if a plan
limits inpatient rehabilitation care to 30 days per year, but the limit on
inpatient care for any other type of iiness is greater than 30 days per year,
the plan contains separate limits. The total is less than the sum of the
indiyidual tems, be because many plans had mora than one type of fimitation.

ination is designed to alter the abusive behavior in patients once
they aro free rf acute physical and mental complications.

Includes treatment in one or more of the following: outpatient
department of a hospital, residential treatment center, organized outpatient
iinic, day-night treatment center, or doctor's office. If benefits differed by
locaton not treatment; the location offering the most beneficial coverage was

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.


© 13 percent were required to contribute toward
coverage;

© 58 percent were covered by a multiple-of-earnings
formula, most commonly one or two times
earnings; this formula was more prevalent among
white-collar workers than blue-collar workers;

e A flat dollar amount of insurance, regardless of
earnings, covered 41 percent of participants; this
type of benefit was more common among blue-
collar workers than among white-collar workers;

¢ Three-fifths had benefits supplementing basic
insurance, with the employee paying the full cost
in the majority of cases;

¢ Three-fifths of the participants had dependent life
insurance protection; three-fifths of those
employees had to pay the full cost of coverage;

Accidental death and dismemberment insurance was
available to 76 percent of full-time employees. This
insurance provides additional benefits if a worker dies
or loses an eye or a limb in an accident.

Defined benefit and defined contribution plans

Nearly four-fifths of all full-time workers were
covered by at least one retirement plan in 1993.
Defined benefit plans, which specify a formula for
determining future benefits, were available to about
three-fifths of full-time employees in medium and large
establishments. (See chapter 6.)

Seventy-two percent of participants in traditional
defined benefit pension plans were in plans with
formulas based on earnings. The most common formula
was based on earnings during the final years of
employment (terminal-earnings formulas), such as the
last 5 consecutive years.

Slightly more than half of participants in plans with
terminal-earnings formulas had benefits that varied by
service, earnings, or by both; virtually all of the
remaining participants in these plans received a flat
percent of earnings, averaging 1.48 percent per year of
service.

White-collar participants more commonly were
covered by plans with earnings-based formulas, and
more commonly had benefits coordinated with Social
Security. Blue-collars workers, in contrast, were often
covered by formulas that specified a dollar amount to
be paid for each year of service, and seldom had
benefits integrated with Social Security. Dollar amount
formulas, averaging about $24.76 a month per year of
service, applied to just over one-fifth of pension plan
participants.

Other key findings for defined benefit participants
include:

¢ Common eligibility requirements for a normal, or
unreduced, pension were: Age 65 with no specified
length of service, age 65 with 5 years of service,
and age 62 with 10 years of service;

© 82 percent of covered workers could retire with a
reduced pension at age 55 or earlier, most often
after 5 to 10 years of service;

* 7 of 10 pension plan participants were covered by
some type of disability retirement, commonly with
provisions for immediate unreduced benefits;

* 83 percent of pension plan participants could
become vested or had a guaranteed right to their
accrued pension benefits after working 5 years;

About one-tenth of covered workers were in plans
that allowed portability or transfer of pension
credits from one employer to another.

Using defined benefit pension formulas reported in
the 1993 survey, straight-life annuity replacement rates
(those with no survivor protection) were calculated for
specified earnings levels and service periods at selected
ages. For example, based on 30 years of plan
participation and a final salary of $35,000, an employee
retiring at age 55, when no Social Security benefits are
available, could expect an average benefit equal to 22
percent of final salary. In contrast, at age 65, the
average pension equaled 30 percent of final salary, and
neatly 65 percent when primary Social Security
benefits were included. (See table 147.)

Other major findings include:

© Pension replacement rates in the private: sector
decline as final earnings increase; formulas that
specify a flat dollar amount per year of service
regardless of earnings tend to reduce the
replacement rates for the higher earnings levels;

© Replacement rates decline for workers retiring at
younger ages; most private pension plans have
provisions for reducing payments to workers who
retire early to account for the receipt of benefits
over a longer time.

Replacement rates were also calculated to account
for pension benefits provided to a surviving spouse.
The following estimates reflect the reduction to the
tetiree's pension replacement rate for the joint-and-
survivor benefit option and the subsequent survivor
annuity after 30 years of plan participation.


| Table 108. Dental care benefits: Coverage for selected procedures, full-time employees, medium and large private
Hf establishments, 1993

|

Type of dental procedure
Extent of coverage Peri
im 7 1] Fil ‘eriodon- | Endodon- Prosthet- | Ortho- |
Exams X-rays Surgery Fillings tal care tics Crowns ics dontia2 |
Number {in thousands) with |
dental care 17,704} 47,704] 17,704] 17,704] 17,704] 17,704] 17,704] 17,704] 17,704
Professional, , i
related employees ........| 5,283} 5,283] 5,233] 5,233] 5,283] 6,233] 5,233] 5,283) 5,283
i Clerical and sales
employees .... 4,620) 4,620) 4,620] 4,620| 4,620) 4,620] 4,620] 4,620) 4,620
a: Blue-collar and service
q employees .... 751, 7,951] 7,851] 7,e5t| 7.851] 7,851] 7,851} 7,851] 7,851
E Percent
i All employees
: Total with dental care ..... 100 100 100 100 100 100 100 100 100 i
100 100 100 100 | 99 99 98 97 72
10 i 4 8 4 4 2 2 (4)
| 12 12 15 7 15 15 16 15 4
i 2 1 5 3 5 6 6 6 5
i
i 73 73 72 70 71 71 72 72 54 i
i 3 2 3 3 3 3 1 1 1 |
- - (4) - 1 1 2 3 28
; Professional, technical, and
4 related a
| Tatal with dental care .....| 100 100 100 100 100 100 100 100 100
H i
I Covered 100 100 100 100 99 100 98 97 Te i
H In full " 1 4 8 5 4 2 2 (4)
Scheduled cash
allowance «no "1 "W 15 16 15 15 16 16 12
d Subject to copayment .. 2 1 5 3 5 5 5 5 4
iB Percent of usual,
| 73 74 73 70 72 72 73 72 54
E 3 3 3 3 "3 3 1 1 1
f - - (*) - 1 (*) 2 3 28
ie
See foonotas at end of table.



Bureau of Labor Statistics

| Regional Offices
:

Region |

1 Congress Street, 10th Floor
Boston, MA 02114-2023
Phone: (617) 565-2327

Region ll

Room 808

201 Varick Street

New York, NY 10014-4811
Phone: (212) 337-2400

Region Ill

3535 Market Street, 8th Floor
Gateway Building, Suite 8000
Philadelphia, PA 19104-3309
Phone: (215) 596-1154

Region IV
1371 Peachtree Street, NE
Atlanta, GA 30367-2302
Phone: (404) 347-4416

Region V
9th Floor
Federal Office Building
230 S. Dearborn Street
Chicago, IL 60604-1595
Phone: (312) 353-1880

Region VI
Federal Building
525 Griffin Street, Room 221
Dallas, TX 75202-5028
Phone: (214) 767-6970

Regions VII and VIII

1100 Main Street

Suite 600

Kansas City, MO 64105-2112
Phone: (816) 426-2481

Regions IX and X

71 Stevenson Street

P.O. Box 193766

San Francisco, CA 94119-3766
Phone: (415) 744-6600



RE

Table 112. Dental care benefits: Maximum benefit
provisions,' full-time employees, medium and large private
establishments, 1993

Table 113. Orthodontic care benefits: Maximum benefit
provisions, full-time employees, medium and large private
establishments, 1993

Profes-
sional, i Blue-
‘echni- Clerical collar
Allem- and
Dollar amount! ploy- anit te- sales service
ees | lated soy. em-
em- | PY | toy.
loy- | ees
ploy. ees,
ees

Profes-
sional, . Blue-
techni. |Hereall opar
Allem-| cal, sales and
Dollar amount? ploy- | and re- ‘em- service
eas | lated | jigy. | em-
em- eee ploy-
ploy- ees
ees
Number (in thousands) with
dental care ... .| 17,704] §,233| 4,620} 7,851
Percent
Total with dental care ... 100 100 100 100
Yearly maximum specified? 83 82 84 83
Less than $500 . 1 (4) 1 2
$500 .... 4 4 4 4
$501-$749 (4) 7 (4) | 4) 4)
$750 .... 5 5 3 5
$751-$899 1 1] (4) 1
45 42 48 46
7 7 5 8
13 15 15 10
2 3 2 2
2 a a 2
My) Cy} cry ©)
1] (4) | (4) 1
Greater than $3,000 Cy] C4] yy 4
No yearly maximum .. 7 18 16 7
Maximum provision ni
determinable .... (4) 7 (4) 4 4)
Averages

Average yearly maximum .........] $1,135 | $1,143 | $1,148 | $1,123

1 Includes all covered dental procedures except orthodontia. Amount of
maximum ‘specified is for each insured person.

2 Coverage for dental procedures may also be subject to scheduled
allowance, deductible, or coinsurance pronsions in addition to maximum
dollar limitations.

3 if separate yearly maximums applied to different procedures, the sum
of the maximums was tabulated.
3 Less than 0.5 percent.

5 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

‘Maximums applied to dental expenses only.

Number {in thousands) with

orthodontic care ... 12,707} 3,752} 3,169] §,787

Percent

Tota! with orthodontic care 100

8
8
3

Lifetime maximum ..

2
8
8
<0
z
8

Less than $500 @) | @) | @) 1 @)
$500 .. 6 6 7
$501-$749 2 2 1

aR) 9 abl "1

2 2 1 3

35 34 38 35

WW 10 8 14

14 21 16 9

Greater’ than $i 500 . 2 2 2 2

Dollar amount unspecified .... 2 2 1 2

No lifetime maximum .. 14 12 16 14

Average?

Average lifetime maximum .......| $1,072 | $1,105 | $1,056 | $1,059

1 Coverage for orthodontia procedure may also be subject 1o scheduled
allowance, deductible, or coinsurance provisions in addition to maximum
dollar limitations.

3 Less than 0.5 percent.

3 The average is presented for all covered workers: averages exclude
workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.



Table 134. Accidental death and dismemberment insurance:
Method and amount of coverage, full-time employees, medium

and large private establishments, 1993

Profes-
sional, ‘ Blue-
techni- [CSAC colar
Allem-| cal, | cates | and
Amount of coverage’ ploy- | and re- em service
ees | lated loy- | em
em- pri ploy-
ploy- ees
ees
Number (in thousands) with
AD&D insurance 19,795] 5,620| 4,772] 9,402
Percent
Total with AD&D insurance ....... 100 100 100 100
Multiple of life insurance 85 82 87 86
Less than 1 times 3 2 1 4
1 times ... 8t 78 85 80
Greater than 1 times .. 1 2 1 1
Flat amount ... 10 10 7 WW
Less than $5,000 1 | (7) 1 1
$5,000 - $9,999 3 1 1 4
$10,000 - $19,999 .. 3 2 2 3
$20,000 - $29,999 .. 2 Pd 2 2!
$30,000 or greater .. ()} 7) ) @)] @
Multiple of eamings 4, 6 5 2
Less than 1 times | AY} = |) | @)
1 times . 3 5 3 1
Greater than 1 times .. 2 2 2 1
Other .. 2 2 1 1

1 Benefits shown are payable for accidental death and are the maximum

payable tor dismemberment.
2 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

111

Table 135, Life insurance: Eligibility requirements, full-time
employees, medium and large private establishments, 1993

Profes-
sional, ‘ Blue-
techni- Clerical collar
Allem-| cal, | and
Length-of-service requirement | ploy- jandre-| S2!°5 | service
ees | lated | 0" | om.
em- ae ploy-
ploy- ees
ees
Number (in thousands) with
basic life insurance .... .-| 26,175] 7,369] 6,724) 12,082
Percent
Total with basic life insurance ...| 100 100 100 100
With service requirement 48 37 49 53
1 month 14 14 13 14
2 months 5 3 3 7
3 months. 20 14 23 22
4-5 months 1] (7) 1 1
6 months 6 3 7 7
7-11 months () - - (1)
12 months ... 2 2 2 2
Greater than 12 months ...| (7) | (1) | (1) | (7)
No service requirement ... 34 47 35 25
Closed to new employees ...) (7) | (1) | (1) | (7)
Not determinable 18. 15 16 21
Average?
Average service requirement
(in months) 3.2 3.2 32 3.2

* Less than 0.5 percent,

2 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.



Table 60. Health maintenance organizations: Coverage for
mental health and substance abuse treatment, full-time
employees, medium and targe private establishments, 1993

Profes-
sional, ‘ Blue-
- techni. |'FAN) conar
Category of care and extent of |Alem-| cal. “| calgs | and
coverage ploy- | and re- ‘em. | Servics
ees } lated ploy- em-
em- ‘eos Ploy-
ploy- ees

ees

Percent

Inpatient mental heaith

Total with coverage

100 100 100 100
5

Covered in ful 6 6 4
‘Subject to limits’ 95 94 94 96
Outpatient mental heaith

Total with coverage 100 100 100 100
Covered in full .. 2 2 2 1
‘Subject to limits" 98 | 98 | 98 | 99

Inpatient alcohol
detoxification?
100 100 100 100
43 44 49 38
57 56 St 62
Inpatient aicoho!
rehabilitation?

Total with coverage 100 100 100 100
Covered in ful 9 10 9 8
Subject to limits’ 91 90 91 92

Outpatient alcoho! ,
rehabilitation?

Total with coverage 100 100 100 100
Covered in full . 6 6 6 5
Subject to limits? .. 94 94 94 95

‘See footnotes at end of table.

58

Table 60. Health maintenance organizations: Coverage for
mental health and substance abuse treatment, full-time
employees, medium and large private establishments, 1993 —
Continued

Profes-

sional, ‘ Blue-
atom. |" Clerical) cotar

C: em- , and

ategar of are andextentof "soy |andre-| S265 |sonaco

ees | lated oy. | em-

em- ve y | ploy-

ploy- ees

ees
Percent

Inpatient drug detoxification?

Total with coverage 100 100 100 100
Covered in full 45 47 52 38
Subject to limit 55 $3 48 62

inpatient drug rehabilitation?

Total with coverage 100 100 100 100
Covered in full 10 10 1 9
Subject to limits* . 90 90 89 91

Outpatient drug
rehabilitation?

Total with coverage too | 100 | 100 | 100
Covered in full 6 6 6 5
Subject to limits? .. 94 94 94 95

1 Limits may ba set in terms of doltar or day ceilings on benefits, a
requirement that the participant pay a percentage of cost (coinsurance), or a
fequirement that the panicipant pay a specific amount (deductible or
copayment) belore reimbursement bagins or services are rendered.

2 Detoxification is the systematic use of medication and other methods
under medical supervision to reduce or eliminate the etfects of substance
abuse.

3 Rehabilitation is designed to alter abusive behavior in patients once
they are free of acute physical and mental complications.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where appiicable, dash indicates no employees in this category.



Table 67. Non-health maintenance organizations: Maximum out-of-pocket expense provisions, full-time employees, medium
and large private establishments, 1993

Professional, technical, Clerical and sales Blue-collar and service
All employees and related employees employees employees
- Pre- Pre- Pre- Pre-
Item Al Fee- | ferred | All Fee- | ferred | All Fee- | ferred} All Fee- | ferred
non- for- pro- | non- for- pro- | non- for- Pro- | non- for- pro-
HMO’ | service} vider | HMO |service} vider | HMO |servica| vider | HMO |service! vider
plans } plans plans | plans |organi-| plans | plans | organi-| plans | plans organi-
zations zations zations zations
Number (in thousands) with
non-HMO plans 18,179| 11,802] 6,077] 4,709] 2,709] 1,895} 4,268] 2,450] 1,762] 9,202] 6,644] 2,420
Percent
Total with non-HMO plans ........ 100 100 100 100 100 100 100 100 100 100 100 100
With limit on out-of-pocket
expense ..... ww} 83 86 79 83 87 78 88 92 84 81 83 7
With an annual dollar
75 79 69 73 7 79 83 74 74 77 66
1 1 | (7) 1 1] (7) 1 1] (2) 1 1]?
1 1 a] (2) 1 (8) 4 1-(?) 1 (7) 1 1 }
1 1 | (?) | () 1 : 1} (7) 1 1} 4 | (?)
4 5 3 4 5 4 4 5 3 4 5 3
1 1) 7) 7 @) 1} 4 |) ] @) | 1 1 1 1
8 8 6 9 10 6 7 8 5 8 8 7
3 4 3 3 3 4 4 5 4 3 4 2
7 8 7 8 8 8 7 & 7 7 8 6
17 17 17 15 16 15 18 19 16 17 17 18
8 8 7 9 9 8 9 8 10 7 8 3
$1,500 - $1,999 11 12 9 9 10 9 12 13 10 "1 12 9
4 avsses 7 7 7 7 9 5 9 9 9 6 6 7
$2,000 or greater 7 7 8 7 6 7 7 7 8 7 7 8
Per family: “
$1 - $499 “| 7) ] 2) )) @)] @)] a) pon] 1 1} (*)
$500 - $749 . 1 2 1 1 1 | (7) 2 2 1 2 2 2
$750 - $999 .. 2 2 1 2 2 1 1 1 1 2 2 2
$1,000 ....... 3 2 3 4 3 4 4 4 3 2 1 2
$1,001 - $1,249 1 1 2 2 1 2 2 2 3 1 1 1
$1,250 - $1,499 1 1 1 1 1 1 1 1 1 1 1 1
2 2 2 3 3 3 2 2 2 2 1 2.
4 4 2 3 3 4 3 5 2 4 5 2
6 6 6 6 5 6 7 7 7 6 6 4
6 5 8 8 7 9 7 5 10 4 3 5
$3,000... 7 5 9 7 6 9 7 7 8 6 4 W
$3,001 or greater...) 11 0 13 9 9 WW 12 12 14 i 10 13
No family maximum ..| 32 39 21 28 Ki} 19 3 37 23 35 40 2a
Annual maximum on
out-of-pocket expense
based on eamings .. 4 3 5 7 3 6 7 5 3 3 1
Annual maximum on
out-of-pocket expense
varies by coinsurance
rates neces 3 1 7 3 1 6 2 1 5 3 1 10
Other 1 11?) 1 21 () | (@) 1] (7) 1 1} (?)
No out-of-pocket expense
requireds ............. 8 3 17 10 2 19 6 2 12 8 4 19
No limit on out-of-pocket t
expense 8 W 4 7 9 4 5 7 4 40 13 4
See footnotes at end of table.
64


Table 2, Summary: Participation’ in selected employee benefit programs, full-time employees, medium and large

private establishments, 1993

Protessionai, technical, Clerical and sales Biue-collar and service
Benefit All employees and related employees ‘employees ‘employees
Total number of employees 28,728,207 7,745,945 7,399,191 13,643,670
Paid time off:
26,271,303 6,819,931 12,521,508
27,829,003 7,205,774 13,145,837
6,089,992 2,269,572 1,763,574
2,522,681 332,041 1,769,921
19,453,776 4,848,343 10,393,693
23,832,137 6,233,393 10,915,043
25,747,490 6,741,070 11,615,623
15,144,944 3,992,931 6,046,975
732,491 211,019 180,382
302,735 105,521 48,232
Unpaid time off:
Maternity leave 17,357,504 4,870,992 4,370,956 8,115,617
Patemity leave . 45,111,189 4,229,838 3,752,382 7,128,968
Disability benefits:

Short-term disability protection 24,954,858 7,039,406 6,604,948 11,310,504
Paid sick teave 18,626,548 6,581,607 5,882,161 6,162,780
Sickness and accident insurance - 12,698,793 2,148,116 2,741,820 7,808,857

Long-term disability insurance ... 2 11,827,189 4,958, 3,670,793 3,197,474

‘Survivor benefits:
26,175,130 7,369,023 6,724,216 12,081,891
19,794,576 5,620,420 4,772,141 9,402,015
4,422,259 503,122 319,191 599,946
23,519,250 6,528,529 5,818,718 11,172,003
17,704,449 5,233,099 4,620,122 7,851,288
7,605,647 2,110,365, 1,872,916 8,622,366
Outpatient prescription drug
coverage 23,118,335 6,408,016 5,728,087 10,982,222
Retirement income benefits:
22,507,806 6,452,284 §,752,295 10,303,226
16,015,138 4,404,634 3,939,401 7,671,103
14,039,204 4,609,028 3,926,710 5,503,467
8,283,586 2,932,946 2,470,487 2,880,152
3,776,541 938,504 1,208,586 1,629,450
842,230 270,394 ‘299,930 272,007
2,364,667 1,020,982 537,294 806,391
7,109 896 1,253 4,959
10,360,303 3,585,678 204,133 3,570,493
10,122,654 3,590,746 3,136,797 3,455,111
8,198,458 2,920,042 2,457,140 2,821,276
1,062,281 251,731 447,016 963,534
Other .... 861,915 358,973 232,641 270,301
Deferral of profit sharing
allocation ... 237,649 54,932 67,335 116,381
No employer contributions 1,970,492 739,176 435,398 795,917
Other benefits:

‘Stock option 24,831 2,821 6,939 15,071

Stock purchase 518,179 241,602 126,834 139,744

Cash profit sharing 1,034,225 167,078 87,947 779,201

* Participants are workers covered by a paid time off, insurance,
fetirement, or capital accumulation plan. Er subject to a
minimum service requirement before they are eligible for benefit cov-
erage are counted as participants even it they have not met the re-
quirement at the time of the survey. If employees are required to
pay part of the cost of a benefit, only those who elect the coverage
and pay their share are counted as participants. Benefits for which

9

the employee must pay the full premium are outside the scope of the
survey. Only current employees are counted as participants; retirees
are excluded.

? includes defined benefit pension plans and defined contribution
retirement plans. The total is less than the sum of the individual
items because many employees participated in both types of plans.

2 Includes money purchase and employee stock ownership plans.

a



ee

——

ee

Tabte 191. 401(k) salary reduction plans: Vesting provisions,
fulltime ‘employees, medium and large private establishments,

Table 192. 401(k) salary reduction plans: Transfer and
rollover provisions,’ full-time employees, medium and large
private establishments, 1993

Profes- Profes-
sional, 7 Blue- sional, 5 Blue-
techni- |%8l! conar techni- [282 coltar
a [fT and | od an ar" | and | ong
Vesting provision om | and | S3°5 | sorvice tem em- | and | S2°S | service
Ploy | related | OT | em- Ploy: | related| &TM |” om-
ees ‘em- ploy- ploy- ees ‘om- ploy- loy-
poy: | & | ‘a “a ploy- | 8 vee
ees ees
Number (in thousands) with Number {in thousands) with
401 (K) salary reduction : 401(k) salary reduction :
IANS sore .| 10,128] 3,531| 3,197| 3,455 plans .. .| 10,123] 3,531] 3,137] 3,455
Percent Percent
Total with 401(k) salary Total with 401(K) salary
reduction plans ..... 100 | 100 | 100 reduction plans 100 | 100 | 100 | 100
Immediate full vesting .. a4 | s6 | s2 | 33 Transters/roliovers allowed...| 51 | 54 | 51 | 48
‘Transfers/roliovers not
Ciiff vesting! 26 | 25 | 22] 31 allowed .... 44 | 43 | 45) 43
With full Not determinable FE 4 4 9
2 2 1 2
8 7 7{| 10
16} 15 | 13) 19 1 Relates to the allowance of transfers/rollovers of contributions and
More than S years...) (2) | (7) | (?) . earnings from the previous employer's plan.
. NOTE: Because of rounding, sums of individual items may not equal totals.
Graduated vesting? .. 37 | 35 | 44] 33 ,
With full vesting after ‘Where applicable, dash indicates no employees in this category.
4 7 1
18 | 23 6 Table 193. 401(K) salary reduction’plans: Withdrawal
4 4 5 availability, full-time employees, medium and large private
2} | ® establishments, 1993
(7) | (7) 1
2 1 1 Profes-
Sea tcl Se
All and
2 years .. 1] 2] 0) @) , em- | 4 | cates | ond
More than 3 years () | @) | @) 1 Withdrawal provision and service
ye : Ploy- | related| SP |} em-
Other... (om to Ga Ga) oe | er. Bloy- | ploy
ry> ees,
Not determinable ene 1 2 1 2 ees
+ Under cif vesting, en employee Is not ented to any benefits unt naoaidy etary voaucto ce) vith
saifying requirements 00 Percont vesting: plans ... vwoe{ 10,123| 3,831] 3,137] 3,455
3 Under graduated vesting, an employee's rights to benefits increase
with length of service, eventually reaching 100 percent. Percent

4 ‘Under class year vesting, employee contributions for a given year
(class) become nonforfeitable after meeting vesting requirements,
‘Subsequent contributions must meet similar requirements.

NOTE: Because of rounding, sums of individual tems may not equal totais.
Where applicable, dash indicates no employees in this category.

153

Total with 401(k) salary

reduction plans .. 100 | 100 | 100 j 100
Withdrawals permitted 41 | 40 | 44
Any reason ... 2s | 27 | 27

Hardship reasons only’
Withdrawals not permitted ...
Data not available ....

16 13 7
57 58 53

vw Bars

1 Hardship reasons may include death or illness of a famity member,
‘education expenses, sudden uninsured losses, or purchase of a primary
residenos.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees In this category.



Table 109. Dental care benefits: Percent of charges paid by plan for selected procedures, full-time employees, medium and
large private establishments, 1993

Type of dental procedure
Percent of usual, customary, Fodor
and reasonable charge Exams X-rays | Surgery’ | Filings Period on Endodion Crowns Prosthet sane.
Number of employees {in
thousands) in dental plans
with coverage based on-a
percentage of charges ............ 12,837} 12,947) 12,762] 12,456) 12,627] 12,641 12,833} 12,786 9,543
Professional, technical, and :
related employees se 3,822! 3,853 3,820. 3,687 3,778 3,775 3,809 3,774) 2,832
Clerical and sales
employees .. 3,508 | 3,525 3,393 3,341 3,346 3,368 3,377 3,365 2,310
Blue-collar and service
employees .. 5,507 §,569 §,549 5,428 5,503, 5,497] 5,647} 5,646 4,401
Percent
All employees
Total with dental care based
‘on a percentage of
100 100 100 100 100 100 100 100
- (?) (?) (7) (?) (2) (7) (?)
1 11 9 13 13 66 77 84
- - (@) | @) | @) ] @) -
(7) 1 1 2 1 7 7 7
1 2 2 3 3 2 2 1
2 7 7 7 7 3 2 1
20 60 63 59 59. 13 10 5
2 3 4 4 4 1 (7) (7)
5 8 7 7 7 4 (?) 1
68 7 6 § 6 3 1 1
Professional, technical, and
related
Total with dental care based
on a percentage of
100 100 100 100 100 100 100 100 106
~ - (7) (7) (?) (7) 1 1 1
1 14 13 16 16 69 7 87
= > - - 1 1 1 1 -
(?) (7) 2 1 2 2 9 9 8
1 1 3 3 3 3 2 2 (?)
1 3 5 5 5 5 3 2 {(?)
16 19 59 63 59 58 10 8 4
) 1 3 3 3 3 1 (2) @)
3 4 6 5 5 5 2 (?) (2)
78 71 8 6 6 7 3 1 (?)

‘See footnotes at end of table.



Chapter 2. Work Schedules, Paid
Time Off, and Parental Leave

The majority of full-time employees work a 40-hour
week. Time off with pay is available to employees in
several different forms—from daily rest periods to
annual vacations of several weeks. The EBS covers the
following paid time-off benefits: Lunch and rest
periods; holidays and vacations; and personal, funeral,
jury-duty, and military leave. Paid and’ unpaid
maternity and paternity leave are also surveyed.
(nformation. on paid sick leave is discussed under
Disability Benefits and appears in chapter 3.)

Work schedules

Weekly work schedules of 40 hours are
predominant among the full-time employees covered by
the survey of medium and large private establishments.
However, alternatives, such as 35 or 37/, hours per
week, are found among white-collar workers. A large
majority of the workforce is scheduled to work five 8-
hour days (table 7).

A small but growing number of workers studied
have formal flexible work arrangements, which give
employees the opportunity to begin and end work
within a range of hours (table 8). Limits on the amount
of flexibility vary from plan to plan but, generally,
employees have to be at work during midday core
hours. White-collar workers are more likely to have
flexible work schedules than are blue-collar workers.

Paid time off

Paid lunch and rest periods. Although formal paid
lunch periods are seldom provided, most employees are
provided formal rest time, such as coffee breaks and
cleanup time (tables 9-10). Both benefits are more
prevalent among blue-collar workers than among
white-collar workers. _

Most blue-collar employees who are eligible receive

paid lunch periods of 20 or 30 minutes per day; their
white-collar counterparts usually receive 30 minutes
each day. Paid rest time is often provided as two daily
breaks of 10 or 15 minutes each.
Paid holidays. Paid holidays, commonly 10 days or so
per year, are provided to nearly all full-time employees.
Fioating holidays and “personal holidays," such as
employee birthdays, are included in the holiday plans
reported (tables 11-13).

Paid holidays generally commemorate patriotic,
cultural, or religious events. Among the paid holidays
commonly received are:

New Year's Day;

Memorial Day;

Independence Day;

Labor Day;

Thanksgiving Day; and

* Christmas Day.

Employers may provide additional days for some
holidays, such as the day after Thanksgiving.

When a holiday falls on a scheduled day off, such as
a Saturday or Sunday, another day off is regularly
granted to most employees receiving paid holidays.
The remaining workers usually receive either another
day off or an additional day's pay, depending on when
the holiday fails.

Paid vacations. Paid vacations are provided to virtually
all full-time employees (table 14). Common vacation
pay provisions for all employees are 5 or 10 days at 1
year of service, 15 or 20 days at 10 years, and 20 to 30

, days at 20 years or more. Plans covering white-collar

employees, on average, provide slightly more vacation
days than those for blue-collar employees.

In cases when holiday, vacation, sick, or personal
leave are combined under one leave category and can
not be shown separately, the total amount of leave is
reported as vacation time. These consolidated leave
plans or “leave banks" have been adopted by a number
of establishments, most notably those that must always
Temain open, such as hospitals and nursing homes.

Almost all white-collar employees receive their
regular salaries or earnings during vacation periods.
Most blue-collar employees also receive their regular
pay; the remainder receive either a flat-sum payment or
Payments based on a percentage of regular earnings.
‘Anniversary-year bonus vacation days, such as an extra
week of vacation at 10 and 20 years of service, are
included in the count of regular vacation time.

Virtually all vacation plans require workers to
complete a specified period of time before being able to
take a vacation (table 15). The most prevalent length-
of-service requirements are 6 months or 1 year.


expenses at a percentage of the semiprivate room rate,
frequently 80 percent. In these types of plans, the
individual is typically subject to a yearly deductible
before the percentage rate can go into effect. Other

. plans either have hospital room and board expenses
covered at the full semiprivate room rate for a specified
period (usually 365 days), followed by a percentage of
the semiprivate room rate, or reimburse expenses at the
full semiprivate room rate for an unlimited number of
days without being subject to either a deductible or
dollar maximum,

Significant differences in hospital room and board
coverage are evident by type of medical care provider.
Although HMO participants usually have hospital room
and board covered in full without any limitations, full
coverage is virtually nonexistent for hospitalization in
non-HMO's. When there is a limit on room and board
in HMO's, it is usually a copayment per admission,
often between $100 and $300.

Variations in coverage by type of medical care
Provider for hospital stays, as well as other categories
of care, can affect the enrollees’ out-of-pocket
expenses. Non-HMO plan participants generally pay a
higher percentage of total health care expenses than
HMO participants.9

Alternatives to hospitalization

To help hold down the costs of medical care, a
number of plans provide coverage for less expensive
alternatives to a hospital stay. These alternatives
include extended care facilities, home health care, and
hospices. Coverage patterns typically differ between
HMO and non-HMO participants (tables 79-82).

Extended care facilities provide skilled nursing
care, rehabilitation, and convalescent services to
patients requiring less intensive treatment than that
provided in a hospital. HMO's usually provide coverage
for stays in extended care facilities, with some plans
providing unlimited.coverage. Non-HMO's also provide
coverage for extended care benefits, but very few plans
provide full coverage.

Home health care provides skilled nursing and
Telated care to patients in their own homes. Home
health care benefits are provided to virtually all HMO
participants; these benefits are furnished less
extensively to non-HMO participants (table 54). The
higher incidence of coverage for home health care
benefits in HMO's relates to the fact that federally
qualified HMO's must provide this benefit. The vast
majority of HMO participants in the survey belong to
federally qualified plans. When home health care

_° For more information regarding out-of-pocket expenses for
medical services, see Allan P. Blostin, Robert B. Grant, and William J.
Wiatrowski, “Employee Payments for Health Care Services,” Monthly
Labor Review, November 1992, pp. 17-32.

43

benefits are provided in HMO's, coverage is typically
unlimited. Unlimited coverage is quite rare in non-
HMO's.

Plans, especially non-HMO's, often limit the
duration of stays in extended care facilities and the
number of visits of home health care services. For
example, coverage in an extended care facility is
commonly limited to 60 days per confinement, and
home health care services are frequently restricted to
100 visits per year.

Another expanding alternative to hospitalization is
hospice care (table 54). A hospice offers nursing care
and psychological support to terminally ill
patients—usually defined as having 6 months or less to
live—and to their families. Plans often place ceilings
on maximum dollar amounts payable during a hospice
stay. Medical care plans cover hospice care less often
than other alternatives to hospitalization. !@

Surgical coverage

Medical plans base payments for in-hospital surgery
on the “usual, customary, and reasonable" (UCR)
charges for the specific procedure performed." As is
true with hospitalization, in-hospital surgical benefits
are most likely to be covered at a specified percentage
tate, usually after any required overall plan deductible
(table 83). Many participants are covered at 80 percent
of the UCR charges. Others are ‘Covered for the full
UCR charges or according to a schedule establishing a
maximum amount payable for each procedure. Charges
exceeding the scheduled maximums, however, are
generally covered, subject to the plan's overall
deductible and coinsurance. .

Medical plans usually cover outpatient surgery the
same way as in-hospital surgery, whether in full, a
percent of UCR charges, or subject to a schedule of
maximum payments. For HMO enrollees, both
inpatient and outpatient surgery are almost always
covered in full.

With the steady rise in costs of medical care, health
care insurers are encouraging enrollees to substitute less
expensive outpatient services, such as outpatient
surgery, for inpatient hospital services. To encourage
the use of outpatient surgery, non-HMO's may provide
higher reimbursement rates over those provided for
inpatient surgery.!2

19 For a more detailed discussion on alternatives to hospitalization,
see Thomas P. Burke, “Alternatives to Hospital Care under Employee
Benefit Plans, Monthly Labor Review, December 1991, pp. 9-15.

' The “usual, customary, and reasonable" charge is defined as
being not more than the physician's usual charge; within the customary
range of fees charged in the locality; and reasonable, based on the
medical circumstances.

12 For more information on incentives for outpatient surgery, see
Robert B. Grant, "Outpatient Surgery: Helping to Contain Health Care
Costs," Monthly Labor Review, November 1992, pp. 33-36.

ee


Table 106. Stand-alone dental care plans’: Amount and type
of employee contribution for family coverage, full-time
employees, medium and large private establishments, 1993

Profes-
| sional, A Blue-
techni: {MMC collar
All cal, and | and
‘Type and amount of em- | ond | 84S | service
contribution? Ploy- | related | em
em-
68s ploy-
em- | ‘ges | Ploy:
ploy- ees
ees

Number (in thousands) in
stand-alone plans with

contributory coverage .. 7,501] 2,910} 2,143) 2,448

Percent

Total in stand-alone plans with

contributory coverage ........| 100 | 100 | 100 | 100
Flat monthly amount .. 54 47 57 61
Less than $5.00 - 2 1 2 4
$5.00 - $9.99 .. | 10 8 9 12
$10.00 - $14.99 -| 21 7 24 23
$15.00 - $19.99 7 6 4 6 8
$20.00 - $24.99 6 5 6 7
$25.00 or greater . 9 abl 10 7
Composite rate? .. 1 1 1 2
Amount varies by employee’ 33 41 31 24
Amount varies by eamings ...) (5) | (5) | (5) :
Not determinable (8) £8) | CO) | Ode
OPEL «..esceeesnees as] Wi} 1 12
Average’
Average flat monthly
contribution ... ..| $17.23] $18.02] $18.31) $15.64

1 These are plans that are offered separately from medical plans.

2 |f the amount of contribution varied by either size or composition of
family, the rate for an employee with a spouse and one child was used. Fora
‘small percentage of employees, the employee contributes the same amount
tor single and family coverage.

3 A composite rate is a set contribution covering more than one benefit
area, for example, dental care and sickness and accident insurance. Cost
data for individual plans cannot be determined.

4 Amount varies by options selected under a "cafeteria plan* or
femployer-sponsored reimbursement account.

Less than 0.5 percent.

5 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

88


Table 24. Short-term disability coverage: Percent of
full-time employees by participation in sickness and accident
insurance plans and paid sick leave plans, medium and large
private establishments, 1993

Profes-
sional, | Clerical |Blue-col-
‘Altem- | techni- | and | tar and
‘Type of plan {oa and) sales | service

Ployees | related | employ-| employ-
employ-| ees | ees

With short-term disability coverage ..| 100 } 100 | 100 100

Sickness and accident insurance

only .. 25 7 " 46

Paid sick leave only ........ 49 69 58 31

Combined sickness and accident
insurance/paid sick leave .

26 24 31 24

NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

Table 25. Paid sick leave: Percent of full-time employees by
type of provision, medium and large private establishments,
1993

Profes-

Allem- | techni: | and | lar and

Provision cal, and] sales | service
Ployees | ‘elated | employ- | employ-
employ-| ees | ees

ees

100 { 100 | 100 | 100

Total with paid sick leave .........
Sick leave provided on:

An annual basis only’ 75 68 76 81

A per disability basis oniy’ — 7 | 5 | wl 1
Both an annual and a per

6 5 8 5

1 2 1 1

eo] oe) - 1

* Employees eam a specified number of sick leave days per year. This
number may vary by length of service.

* Employees eam a specified number of sick feave days for each il-
‘ness or disability. This number may vary by length of service.

* Plan does not specify maximum number of days.

* Includes formal plans with provisions that change from a specified
‘umber of days per year to a specified number of days per absence after
a certain service period.

* Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal to-
tals. Where applicable, dash indicates no employees in this category.

26

sional, | Clerical |Blue-co!-


—————&—————OOO

Table 200. Summary: Participation’ In selected employee benefit programs, full-time employees in goods-producing
industries, medium and targe private establishments, 1993

{In percent)

Profes- Profes-
sional, |cjericat| B1UE sional, Blue-
techni- | 84") cotter techni. | “%C colar
, Aiem-| cal, and Allem-| cal, ‘and
Benefit ployees| and re-| °° | service Benefit ployees| and re- Fatal service
lated mes. employ} tated |°RESY [employ-
lempioy- ees employ. ees
ees ces
Paid time oft [Survivor benefits:
97 | 100 | 100 | 96 || Lite insurance os | 9 | 97| 94
97 | 100 | 99| 96 || Accidental death and
10 | 16 | 19| 7 || _ dismemberment ... 7 | 7| 73) 73
i2| 4 | 7 | 16 || Survivor income benefits... al iw, 7! 7
74 | s8) 62} 81
Funeral leave as | 87 | 95 | 85 |[Healtn care benefits;
Jury duty leave 93 | 98 | 97 | 90
Miltary leave eo} as | 64 | 55 se | e7 | 88
Maternity tea 2) 5s} 2) 4 75 | 68} 60
Paternity leave 1 3 a [¢) 29 26 24
Unpaid time of: se | 8 | 87
Maternity leave + | 71]. 65°] 62 [Retirement income benefits:
Patemity leave ss| 68 | 61 | 54
All retirement .. s2 | 06] 03 | 81
Disability benefits: Defined ben e | 67 | 58 | 6
sa | 72) 64 | 48
Short-term disabilty protection sz | 95] 93 | 94 Savings and thrift 33 | s2| 44 | 28
Paid sick leave . a7) 97 {| 72] 31 Deterred profit sharing 3 | 13] i] 12
Sickness and acci -e1| 34] 59] 70 stock ownership | 2| 41 5| 2
Money purchase pension .. 7! a] 7] 6
Long-term disability insurance aa} so | 44 | 24
Cash or deferred arrangements:
‘With employer contributions es | 60) 49). 29
No employer contributions .... 6} 6| s| 6

Participants are workers covered by a paid time off, insurance, re-
tirement, or capital accumulation plan, Employees subject to a minimum
service requirement before they are eligible for benefit coverage are
counted as participants even if they have not met the requirement at the
time of the survey. If employees are required to pay part of the cost of
a benefit, only those who elect the coverage and pay their share are
counted as participants, Benefits for which the employee must pay the

{full premium are outside the scope of the survey. Only current employ-
es are counted as participants; retirees are excluded.

? Less than 0.5 percent.

2 Includes defined benefit pension plans and defined contribution re-
tirement plans. The total is less than the sum of the individual items be-
cause many employees participated in both types of plans.

161



Table 149. Defined benefit plans: Requirements for early
retirement, full-time employees, medium and large private

Table 149. Defined benefit plans: Requirements for early
retirement, full-time employees, medium and large private

establishments, 1993 establishments, 1993 — Continued
- Profes- Profes- a
sional, Blue- sional, lue-
‘ay [techni |ONCA cotar ; ay | techni |CFCAI) copar
Requirements mm cal, sales and Requirements om- cal, sates |_ 2nd
for early a and service for early toy. and | om. | Service
retirement* ploy | related} OT | em. retirement! ree felated ploy- | om
e68 J em- | PRY | ploy. em- | Foe | ploy.
Ploy- ees ploy- ees
ees ees
. Percent
Number (in thousands) with
defined benefit plan ..........| 16,015] 4,405] 3,939] 7,671
Between ages 56 - 59
Percent 15 years of 1 ' :
service .. -
Total with defined benefit plan..| 100 | 100 | 100 | 100 ©) My ©)
With early retirement (*) - (1) 1
available .. 95 94 | 95 96
No age requirement? 5 5 4 5 (ob ao ea) 1
Less than 30 years
of service .. My} 11) rp ey Ee) 1
. 90 years of service 4 4 3 § 7 3 4 "
Greater than 30
yearsofservice .| (1) | (1) | (4) | (1) MyM, e) 1
Less than age 55 «......00 9 9 1 7 2 1 2 3
No service 1
requirement? ...| (1) | (7 1 | (") 3 1 1 5
1 1 2] ()
11 0) 1 2
(ap is ee Ge ee Gn eG) ' ' ; '
el 2] 1| 2 QPapaye
1 2 2 1 requirement... (1) - () 1)
Syears ofservice | (1) - a) tC)
1 1 1 1 10 years of
i a] 5
2 2 4 2
() 17) | @) SONIC meee (1) | (1) | CD | CD
68 72 72 64 ‘Sum of age plus service? 3 4 3 2
Equals less than 80 2 4 2 1
2 4 2 1 (1) ty Cy] C)
4 GC) | - CG) ]
i 17) 1 Oy - ere)
20 23 | 22 16
6-9 years of 5 6 5 4
service .... Mp7 co | a
10 years of
service 32 31 35 | 31 1 Early refirementis defined as the point at which a worker could retire
and immediately receive accrued benefits based on service and eamings bu
eM | Oy - teduced for each year prior to normal retirement age. {fa plan had
altemative age and service requirements, the earfiest age and associated
"1 12 1" service were tabulated; if one altemative did not specify an age, it was the
requirement tabualted.
7 Less than 0.5 percent.
1 1 2 ‘Where no service requirement is specified for early retirement, the
seryice required for full vesting, usually 5 years, applies.
() ) C) 3 In most plans, participants must satisfy a minimum age or service
Between ages 56 - 59 .. 1 1 1 2 requirement.
10 years of ‘ 1 1 NOTE: Because of rounding, sums of individual items may not equal totals.
service ..... Oy, ey] - Where applicable, dash indicates no employees in this category.

‘See footnotes at end of table.

126



Table 3. Other benefits: Eligibility for specified benefits,
full-time employees, medium and large private establish-

ments, 1993
{In percent)
Pro-
fes- ,_ | Blue-
sional, | 1°" | colar
All |techni-| 5) | and
em- | cal, serv-
Benefit pioy- | and | Ses | “co
ees |related| ploy: em-
em- | "ees | Ploy:
Ploy- ees
ees
income continuation plans:
‘Severance pay .. 42] 56 | 48} 31
‘Supplemental unemplo; 4 1 1 7
Family benefits: .
Employer assistance for child care 7 12 6 4
Adoption financial assistance 7 | 1 9 4
Eldercare 31; 33 | 32] 30
Long-term care insurance 6| 8 8 3
Health promotion programs:
{in-house infirmary s2 | 41} 24} a2
Weliness programs .... 37 51 38 29
Employee assistance progr 62 | 74 | 64] 53
Miscellaneous benefits:
Employer-subsidized recreation
ities ... 27 | 38 | 24] 22
Job-related travel accident insurance | 44 $9 52 32
| 38 | 37] 38 | 38
7 5 6 8
72 | 85 | 72) 65
22 | 2) 2} 2
Flexible benefit plans .. wz 2a| 3] 6
Reimbursement accounts ... 52 68 62 7

10



Table 55. Non-heaith maintenance organizations: .Coverage
for selected services, full-time employees, medium-and: targe

private establishments, 1993

Table 55. Non-health maintenance organizations: Coverage
for selected services, full-time employees, medium and large
private establishments, 1993 — Continued

Profer- Blue. Profes-
sional, 5, - sional, . Blue-
. techni |S") colar techni | C82!) cotiar
Category of care and extent of |AHeTM| al. | sates | and Category of careandextentot |AllemTM| cl | sales | and
rage ploy- | and re- ‘em- [service cove ploy- | and re- service
coverag ees | lated ploy- | om erage ees | lated ploy- em-
em- ees, ploy- em- ee S ploy-
ploy- ees ploy- ees
“ees . ees
Percent Percent
Hospital room and board
Office physician visits
Total with coverage 100 100 100 100
Covered in full 5 6 4 5 Total with coverage .. 100 100 100 100
‘Subject to separate limits Covered in full ... 1 1 1 1
‘only. 3 3 3 3 Subject to separate limits
Subject to separate limits only? ... 8 10 8 7
plus major medical 34 30 27 39 Subject to separate limits
Major medical only? .. 58 61 66 53 plus major medical 15 17 15 14
Major medical only2 76 73 76 79
Inpatient surgery
Diagnostic x-ray and
Total with coverage ... 100 100 100 100 laboratory
Covered in full 13 12 10 15
Subject to separate limits Total with coverage 100 100 100 100
only! rv} 3) | @) 2 Covered in full w] to | 13
Subject to separate
plus major medical .. 13 W 9 15 (yp) | | Cy
Major medical only2 ... 73 76 81 68 Subject to separate limits
plus major medical 16 13 12 19
Outpatient surgery*+ Major medica! onty? 72 76 79 67
Total with coverage ... 100 100 100 100
Covered in full .... 16 7 14 7 1 Separate limits apply to individual categories of care; ¢.g., separate
Subject to separate limits or benefits for hospitalization. Limits may be set in terms of dollar or
only! 1 11) 2 day ceilings on benefits, a requirement that the participant pay a percentage
Subject to separate limits . of costs (coinsurance), or a requirement that the participant pay a specific
4 amount (deductible or copayment) before reimbursement begins or services
plus major medical .. 12 9 8 15 ‘are rendered.
Major medical only? .. 71 74 78 67 2 Major medical limits are expressed only in terms of total benefits
payable under the plan, rather than for individual categories of care. Limits
inpatient physician visits eset set as deductibles, coinsurance percentages, and overalll dollar limits on
P 3 Less than 0.5 percent.
Total with cov fine 109 100 108 4 ‘Charges incurred in te outpatient department o a hospital and ouside
Subject to separate fimits ofthe hose
only! ... ) | (8) | > 1 NOTE: Because of rounding, sums of individual items may not equal totals.
‘Subject to separate fimits ‘Where applicable, dash indicates no employees in this category.
plus major medical .. 17 14 10 22
Major medical only2 . 7 | 78) 83 | 72

‘See footnotes at end of table.

54



Bee FARA OF

Table 145, Defined benefit plans: Postretirement survivor
benefits, full-time employees, medium and large private
establishments, 1993

Table 146. Defined benefit plans: Preretirement survivor
benefits, full-time employees, medium and large private
establishments, 1993

Protes- Profes-
sional, Blue- sional, Blue-
ag [techni [M288 cotter an [techni |PNC8) cottar
Survivor cal, and ‘Survivor cal, and
benefit ploy- and sales service benefit Soy | and | sales service
provisions feos |elated} oy. | ome Fee [related | poy. | om
em- pel ploy- em- Pee ploy-
ploy- ees ploy- ees

ees ees

Number in thousands with Number (in thousands) with
defined benefit plan .... 16,015} 4,405] 3,939] 7,671 defined benefit plan 16,015] 4,405] 3,939} 7,671
Percent Percent

Total with defined benefit plan...) 100 100 100 100

‘With postretirement survivor
100 100 100
97 99 ot
22 26 a7
(?) 1 5
1 (?) 1

o

1 An annuity that provides income during the lifetime of both the retiree
‘and the surviving spouse. The accrued pension will usually be actuarially
reduced at retirement because of the longer time that payments are expected
tobe made. Employees and their spouses are raquirad to waive the spouse
‘annuity in writing if they desire a pension during the employee's lifetime only
‘or another option offered by the plan, such as guarantee of payment for a.

‘spegtfied period.
Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

Total with defined benefit plan ..) 100 100 100 100

With preretirement survivor
benefits’ ... 7
Equivalent to

joint-and-survivor

100 100 99

93 96 97 90

employee's
pension
With additional

81 81 85 80

. 4 4 4 4
With additionat

employee

COS verve] (5) | (8) | (8) | C8)
Employee choice of
8 WH 8 6
2 3 2 t
Percent of accrued

ne 6 4 2 9
Other? @) 1G) | G7 @)

No preretirement survivor
benefits

1 Survivor annuity is based upon the benefit the employee would have
received if retirement had occurred on the date of death.

2 ‘The spouse annuity is computed as if the employee had retired with a
Joint-and-survivor annuity. That Is, the accrued pension is first reduced
because of the longer time that payments were expected to be made to both
the retiree and the surviving spouse. The spouse's share is then the
specified percent of the reduced amount.

3 Plan reduces the accrued employee pension benefit for each year
survivor protection Is in foros,

Other percentages range from 51 - 100 percent of retiree’s pension.

5 Less than 0.5 percent.

© Attemative percentages were usually 50 or 100 percent.

7 Includes annuity based on a dollar amount formula or percent of
eamings.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.



ho ESOL BEE EERO Rte Bai

Table 126. Life insurance: Reductions in benefits for retirees,

full-time employees, medium and large private establishments,
1993

Table 127. Life insurance: Method of reducing benefits for
retirees, full-time employees, medium and large private

establishments, 1993
Profes- Profes-
sional, Blue- sional, Blue-
techni- |") cottar techni- Clerical collar
© Allem-| cal, sales and Allem-| cal, cues and
Reduction policy ploy- | and re- em- service Method Ploy- | and re- service
e8s | lated | toy. | om ees | lated Soy em-
em- | ‘ogg | Ploy- em- a i ploy-
ploy- ees Pioy- ees
ees ees
‘Number (in thousands) with Number (in thousands) with
basic life insurance ............] 26,175| 7,369] 6,724] 12,082 retiree coverage .. 10,832| 3,247| 2,851] 4.735
Percent Percent
Total with basic life insurance ...| 100 100 100 100 Total with retiree coverage .......| 100 100 100 100
With retiree coverage 4 44 42 39 With reductions ..... 83 88 87 78
No reductions .... 3 3 3 4 Percent of coverage 1S 17 7 12
With reductions Percent of coverage
Reduced once ......f 21 22 23 20 with minimum
Reduced more and/or maximum 7 7 7 7
than once 13 16 14 W Percent of salary ... 1 1 1 1
Reduction not Percent of salary with
determinable 3 2 2 5 minimum and/or
No retiree coverage 57 54 56 59 maximum .... 2 2 2 1
Not determinable ... 2 2 2 2 Minimum and/or
maximum benefit r
only . 4 3 5 3
Flat amount er 27 26 28
Other ... 5 4 7 3
Not determin 23 26 21 22
No reductions .... 8 7 7 10
Reductions not
determinable .... 8 5 6 12

107

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.



Achat feh ARON Nb Brads tits

eRe Re.

5

Table 130. Life insurance: Availability of supplemental
coverage by method of determining basic coverage, full-time
employees, medium and large private establishments, 1993

Profes-
sional, " Blue-
techni |SFCAH colar
Allem-| cal, | sates |_ and
Type ploy- | and re- ‘em- service
ees | lated ploy- em-
em- ees ploy-
ploy- ees
ees
Number (in thousands) with {
basic life insurance .............| 26,175| 7,369| 6,724| 12,082
Percent
Total with basic life insurance ...| 100 100 100 100
Multiple of eamings formuta 58 76 72 40
With suppiemental
benefits .. 44 58 55 28
Without supplemental
benefits 15 18 17 12
Flat dotlar amount formula...) 41 23 28 59
With supplemental
benefits .. 18 14 13 22
Without supplemental
benefits . 23 9 15 37
Other formula 1 1 1 (")
With supplems
benefits... MPC Per, a
Without supplemental
- benefits .. @) 1 1 @)

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
Where applicable, dash indicates no employees in this category.

109

Table 131. Life insurance: Dependent coverage, full-time
employees, medium and large private establishments, 1993

Profes-
sional, . Blue-
techni [2% collar
Allem-} cal, | 2S | and
Coverage ploy- | and re- pened service
ees | lated loy- em-
em- re 4 ploy-
ploy- ees
20s
Number (in thousands) with
basic life insurance .... 26,175| 7,369| 6,724| 12,082
Percent
Total with basic life insurance ...} 100 100 100 100
With dependent coverage so | 6¢ | 65 | 52
Employer paid 9 7 9 "
Employee paid .. 34 36 39 30
Jointly paid 8 12 10 8
Source of payment
unknown 1 t 1 1
Flexible benef 5 8 5 3
Composite rate 1 1 1 1
No dependent coverage .. 4 36 35 48

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.



Contents—Continued

Tables—Continued

68. Maximum benefit provisions in non-HMO's
69. Coinsurance rates for selected services in non-HMO'
70. Averages for major medical provisions ..
71. Summary of selected features in preferred provider organization:
72. Availability of managed care benefits ........
73. Availability of selected cost containment features
74. Prehospitalization certification requirements ..
75. Second surgical opinion provisions ........
76. Extent of coverage for hospital room and board in non-HMO's
77. Type of limitations on hospital room and board in non-HMO's
78. Copayment provisions for hospital room and board
79. Extent of coverage for extended care facilities in non-
80. Limitations on extended care facilities in non-HMO's ..
81. Limitations on days in extended care fz ies in non-HMO's ..
82. Extent of coverage for extended care facilities in HMO’:
83. Extent of coverage for surgical services in non-HMO's
84, Summary of coverage for outpatient prescription drug benefits
85. Brand name drug provisions in non-HMO's
86. Brand name drug provisions in HMO's ...
87. Generic drug provisions in non-HMO's.
88. Mail order drug provisions ....
89. Relationship of mental health benefits to other coverages
90. Limits on mental health care coverage ...
91. Limits on mental health care coverage in HMO's ...
92. Limits on mental health care coverage in non-HMO's
93. Relationship of substance abuse benefits to other coverages .
94. Limits on alcohol treatment benefits
95. Limits on drug treatment benefits
96. Limits on alcohol treatment benefits in HMO's .
97. Limits on drug treatment benefits in HMO's ..
98. Limits on alcohol treatment benefits in non-HMO's
99. Limits on drug treatment benefits in non-HMO's
100. Eligibility requirements .
101. Pre-existing condition provisions ..
102. Effect of retirement on coverage ..
103. Source of plan funding on retiree medical care benefits

Dental care:
104. Eligibility requirements 00a
105. Amount and type of employee contributions for individual coverage in stand-alone
dental plans .....
106. Amount and type of employee contributions for family coverage in stand-alone
dental plans .....
107. Fee arrangement and financial intermediary
108. Coverage for selected services ...........:+
109. Percent of charges paid by plan for selected services .
110. Amount of individual deductible



Table 103. Retiree medical care benefits: Source of plan funding,’ full-time employees, medium and targe private

establishments, 1993
Professional,
4 Clerical and sales Blue-collar and
All employees technical, and
- tem related employees employees service employees
Under |Age 65or] Under Under |Age65or} Under | Age 65 or
age 65 | greater | age 65 age 65 | greater | age65 | greater
Number (in thousands) with
medical! care ..... eee 23,519] 23,519 6,529 5,818 5,819{ 11,172] 11,172
Percent
Total with medical care .. 100 100 100 100 400 100 100
Retiree coverage provided ... 51 47 58 54 50 46 4
Employer paid 13 4 16 W 12 13 12
Jointly paid .. 27 23 30 31 27 23 19
Retiree paid 7 6 8 9g 8 5 4
Cost unknown 4 4 4 3 3 5 4
No retiree coverage -' 42 47 38 42 46 45 50
Not determinable 7 7 4 4 4 9 9

1 Plans providing services or payments for services rendered in
the hospital or by a physician, Excludes plans that provided only

dental, vision, or prescription drug coverage.

86

NOTE: Because of rounding, sums of individual items may not
‘equal totals. Where applicable, dash indicates no employees in
this category.



Table 32. Sickness and accident insurance: Method of

payment, full-time employees, medium and large private

Table 33. Sickness and accident insurance: Flat dollar

amounts, full-time employees, medium and large private

establishments, 1993 establishments, 1993
Protes- Profes-
sional, Blue- sional, Blue-
techni-| etal conar techni: |'=tical) conar
All cal, and ‘and Al cal and | and
Method of payment ‘ove and sales service Flat dollar amount per week ploy- and sales service
POY" | related | em- OY" | related em-
ee | om | Ploy: ploy- ees | om. | Ploy ploy-
ploy | °°S | ‘ees pioy- | °° | ‘ees
ees ees
Number {in thousands) with Number (in thousands) with flat
sickness and accident dollar amount of sickness
insurance ... -| 12,699] 2,148} 2,742) 7,809 and accident insurance ....... 3,681 143) 368) 3,171
Percent Percent
Total with fiat dollar amount of
100 | 100 100 400 sickness and accident
insurance ... 100 100 100 100
29 7 13 4
60 86 78 46 Less than $100 20 27 23 19
6 4 6 6 $100 - $199 56 55 60 ss
Dollar amount varies* 5 2 2 6 $200 - $299 19 17 8 at
Other... 1 1 (?) 1 $300 or more 5 1 9 5
Not determinable ()] - - {1 ()
Average
1 Benefits may vary by eamings, length of service, or length of disability. Average flat dollar amount of
2 Less than 0.5 percent. sickness and accident
NOTE: Because of rounding, sums of Individual items may not equal totals. Insurance per week .... $156 $138 | $147 | $158

‘Where applicable, dash indicates no employees In this category.

31

1 ‘The average Is presented for all covered workers; averages exclude

workers without the plan provision. -

NOTE: Because of rounding, Sums of individual tems may not equal totais.
‘Where applicable, dash indicates no employees in this category.



‘Table 188. 401(k) salary reduction plans: Maximum pretax Table 189, 401(k) salary reduction plans: Eligibility

e employee contributions,’ full-time employees, medium and requirements, full-time employees, medium and large private
} large private establishments, 1993 establishments, 1993
: Profes- , Profes- 3
sional, | ioral} Blues sional, | rer jlue-
‘ techni- |“2t4l) coniar techni: [HFC coyar
é an Tal | 293 | “and at | at | “and
i Maximum pretax contibutions | °TM | and | S805 | sanice Eligibility requirementst | &TM | and } S#25 |senice
* ploy | related | om | om- Ploy: | related] ST" | om-
‘ ees | em | PY | ploy- ees |" em- | P!% | ploy.
ploy- | °° | ces ploy- | °°S | ees
a ees ees
P Number (in thousands) with : Number (in thousands) with
q 401(k) salary reduction 401(k) salary reduction
i plans ... 10,123} 3,831] 3,137] 3,455 plans .. ss .| 10,128] 3,531) 3,137} 3,455
fi Percent , Percent
ed
if Total with 401(k) pretax salary Total with 401(k) salary
i reduction plans .. 100 | 100 | 100 | 100 reduction plans .. 400 | 100 | 100 | 100
iS Percent of employee
Hl earings .. 91 so | 92 | 93 With minimum age and/or
8 5 percent or less ..... 5 6 4 5 service requirement .. ei | 76 | 87 | 8
S 4 4 4 5 Service requirement only..| 53 ] 53 | 54 | 54
; 1 1 1 1 5 5 3 8
f 3 2 2 4 9] to] 11 7
A @)} @) | @) | @) a5 | 34) 37 | 35
2 4 1 2 2 3 1 3
] 19 16 19 at 1 | (?) 1 1
if 1 1 1 2 )) @)] + -
ie 8 9 7 9 Age 20 or less 7 5 8 9
iy () | @) 1 @) - No service requirement 1 1 1 2
2 3 1 3 2 2 2 2
4 4 5 2 4.) 2 6 5
19 | 19 | 22 | 17 20| 17] 25] 19
16 15 20 13 1 1 (7) | (7)
3 3 3 4 1-11 months 3 3 3 3
(7) (?) | @) - 16 12 22 45
1 1 (7) 2 1 1 1 1
18.01 - 18.99 percent (2) | (2) 3 (2) (2) 71 @) | @)
19.01 -19.99 percent (27) | (7) 1 @) | @ No service requirement | (2) | (?) - -
2 2 1 3 1 year... (?) 1/1)
() | @) | @ 4 @) No minimum age or service
(7) 4 . (7) requirement 17 22 ant 16
Specified dollar amount 2 2 1 2 Not determinable 2 2 1 2
Up to the intemal Revenue
Code limit 7 9 7 6 Average?
Not determinable (27) J (7) - (7)
. Average service requirement
Average? {in months) 11.0 | 41.0 | 11.4 | 110
Average maximum pretax
contribution (percent of 1 ita plan had altemate eligibility requirements, one of which was service
eamings) 12.5 12.6 12.9 12.2 only, the service only requirement was tabulated.
Less than 0.5 percent.
3 The averages are presented for all covered workers; averages exclude
* telus contbutons that ae not mated by the employer. If ‘workers without the plan provision.
naximum contributions vary, such as by length of service, the highest NOTE: Because of rounding, sums of individual items may not equal totals.
possible contibuton was wulatec: ‘Where applicable, dash indeates no employees in this egey.

3 The average is presented for all covered workers; averages exclude
workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
‘Where applicable, dash indicates no employees in this category.

151



flat amount stated by the plan, or the Social Security
taxable wage base. Plans with varying employee contri~
butions usually coordinate private benefits with Social
Security-payments, and as discussed earlier, pension
benefit computation rates used in these plans are often
higher on earnings above the Social Security taxable
wage base. :

Participation requirements

Some employees with defined benefit pension plans
have immediate coverage when they are hired (table
158). Others can participate regardless of age but have

118

to meet a service requirement, usually 1 year. However,
most employees with eligibility requirements generally
can not enter the pension plan until they reach age 21
and complete 1 year of service; this is the most restric-
tive requirement permitted under the Internal Revenue
Code.3!

3 However, some plans, such as those in religious institutions, are
exempt from certain restrictions in the Internal Revenue Code and may
require employees to meet greater age or length-of-service levels
before coverage begins.


Table 109. Dental care benefits: Percent of charges paid by pian for selected procedures, full-time employees, medium and
targe private establishments, 1993 — Continued

¥ . Type of dental procedure
é Pore roasonabio charge” Periodon- | Endo: Orth
and reasonable charge ‘ eriodon- \don- Prosthet- 10-
i Exams | X-rays | Surgery'| Fillings "Clore | tics | Crowns pi ontia
x : Percent
s
&
: Clericat and sales
Total with dental care based
on a percentage of
charges .. 100 100 100 100 100 100 100 400 100
> - (7) (7) () (?) @) @) (?)
(?) 1 9 8 12 13 68 73 81
z 3 - - (*) () (7) @) -
(?) (7) 1 1 1 1 8 8 6
1 1 3 3 3 3 2 2 1
1 2 5 5 5 5 3 3 1
22 24 66 68 65 64 5 13 10
(7) 1 3 3 3 3 1 1 (2)
2 2 5 5 5 5 1 (7) (?)
73 69 7 7 6 6 2. 1 (7)
® Blue-collar and service
: Total with dental care based
i 100 100 100 100 100 100 100 100
5 - (?) (7) () (?) () (?) 1
5 2 10 7 12 1 63 79 84
- - (?) (7) (7) -| (7) -
(?) 1 1 1 1 5 5 6
1 2 2 2 2 3 2 1
2 10 10 10 10 2 2 2
19 56 60 85 56 14 9 4
2 3 5 5 5 2 (2) (7)
9 10 9 9 9 7 (7) 1
65 7 5 5 6 3 1 2

1 Excludes plans that limited coverage to accidental injuries, removal deductible and limited payment to a maximum dollar amount,

of impacted wisdom teath, or repalr of jaw.
i ‘Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal

includes plans that paid 100 percent of charges, but imposed a _totals. Where applicable, dash indicates no employees in this category.

93



Tal

Table 38. Sickness and accident insurance: Duration of . Sickness and accident Insurance: Eligibility
benefits, full-time employees, medium and large private requirements, full-time employees, medium and large private
establishments, 1993 establishments, 1993
Profes- Profes-
sional, ‘, Blue- sional, Blue-
- toohni- |'ehcal cohar techni-| “tical colar
All cal, and ‘and All ‘cal and ‘and
Duration of benefits om: and sales service Eligibility requirement em- | and | Sales service
Ploy- | related | OF | em. Ploy- | rotated} 27 |" am.
ees | om- Bloy- ploy- 8S | em Ploy- ploy-
. Ploy- ees Ploy- ees
a ees ees
a
Number (in thousands) with Number (in thousands) with
‘sickness and accident sickness and accident
| INSUFANCE weesseeee 2,742| 7,809 insurance ... | 12,699] 2,148} 2,742] 7,809
Percent Percent
‘Total with sickness and Total with sickness and .
accident insurance ..... 100 ; 100 | 100 ; 100 accident insurance .... 100 | 100 | 100 | 100
96 97 94 96 With service requirement 67 63 64 69
2 3 3 1 nth 25 38 32 20
11 7 7 13 4 1 3 6
5 6 7 4 16 7 12 19
66 69 70 | 63 4} (') 1 6
1 2 4a 1 9 7 4 11
9 7 4] 12 My]. - |)
2 3 2 1 6 9 7 4
4 2 5 4 3 1 4 3
MEO tC) 27 | a3 | 31 | 23
C.-C) 1} (‘)
Average? 6 4 5 7
Average benefit duration (in Average?
weeks) 29 32) 28 28
| 45] 44] a7] 45
1 Less than 0.5 percent. .
| 2 ‘The average Is presented for all coverad workers; averages exclude
y workers without the plan provision, 1 Less than 0.5 percent.
| NOTE: Because of rounding, sums of individual items may not equal totals. workers nation ee soersonted fora Covered workers; ever—ges exclude
Where applicable, dash Indicates no employees In this category.
NOTE: Because of rounding, sums of individual Items may not equal totals.
Where applicable, dash indicates no employees in this category.
|
i
;
34