workers in each employee group were eligible for full
payment of the cost while the remainder jointly financed
the cost of the benefit with the employer. Employees
with partial reimbursement for education expenses out-

15

numbered those with full payment by about 2 to J in
all three employee groups. Full educational assistance
included total cost for books, tuition, and fees, but not
necessarily for worktime lost due to attending courses.



Table 29. Health insurance: Percent of full-time Participants
by coverage for selected special benefits, medium and large

firms, 1982
Profes- i
sional | Techni-

‘Alt par. |_29d_ | cal and | Produc-
Benefit item ticipants |20minis-| clerical |tion par-
icip trative | partici- | ticipants
partici- | pants
Pants:
Total 100 100 100 100

Covered by at least one of the

listed special benefits’ 59 60 58 59
Second surgical opinion 25 29 27 23 |
Alcoholism treatment 50 51 49 50 |
Drug abuse treatment . 37 38 35 37 i
Hearing care .. 9 8 7 10 |

Not covered by any of listed special i

benefits... 4 40 42 4

* The total is less than the sum of the individual items because many
Participants receive more than one benefit.

Table 30, Health Insurance: Percent of full-time participants by funding medium for selected types of coverage, medium
and large firms, 1982

‘na medi Basic | Basic | Basic | Major Basic | Basic | Basic | Major
Funding medium hospital’ | surgical" | medical’ | medica? | Pe"! |nospitar | surgical’ | medial’ medical | Dental
All participants Technical and clerical
700 700 700 100 700 100 700 100 700] 100
88. 7 67 90 68 86 75 63 99 68
Blue Cross-Blue Shield 27 21 21 13 3 26 19 19 14 3
Commercial carrie 42 39 31 56 46 40 37 28 58 44
Independent prepaid health
‘organization® 4 4 4 6 2 4 5 5 oO 1
Self-insured 15 14 aw 20 16 15 14 1 20 19
Combined 1 ) 0) 1 0 1 0 a) 11 6
Not provided 12 23 33 10 32 14 25 37 7 32
Professional and administrative Production
Total. 700 100 700 700 700 100 100] 100 160 700
Provided .. 88 76 63 94 76 88 79 a 87 64
Blue Cross-BI 25 7 7 13 2 28 24 23 12 3
Commercial carrier 45 42 33 62 52 41 37 32 53 45
Independent prepaid health
organization’ 8 5 5 0) 2 3 3 3 0) 2
Settinsured 12 12 8 18 19 16 15 13 20 14
Combined .. 1 iv) 0 1 1 1 iv) ro) 1 io)
Not provided ... 12 24 37 6 24 12 ai 29 13 36
| (A plan provision was classified as a basic benefit when it covered slo coverage linls have boon exhausted. These benefits are character
ine intial expenses incurred for a specific medical service’ Under these _ ized by deductible nnd cereus Provisions that are applied across
Provisions, a plan pald covered expenses in one of several ways: 1)In catagories of care,
full with no limitation; 2) in full for a specified period of time, or until 2 * Includes federally qualified (those meeting standards of Health
tat ercided s SaChes: and 3) a cash scheduled allowance benefit Maintenance Organization Act of Sons: amended) and other HMOs
ter epravided up 10 a dollar amount for a service performed by a hospi- delivering comprehensive healt cane ons Prepayment rather than fee-
12 gr blvsician. For a specific category of care, a plan may require the for-service basis, “Al HMOe arene here regardless of sponsor-
Racicipant to pay a lump sum amount each disability or year (deduct. _ship, e.g.. Blue Crose-Biue Shinty one commercial insurance carter.
ible) or a nominal charge each visit or procedure (copayment) before re. “Less than 0.5 percent.
imbursement begins or services are rendered. ;
* Major medical benefits cover many categories of expenses, some NOTE: Because of rounding, sums of individual items may not equal
Of which are not covered under basic benefits, and others for which ba. totals.



Table 22, Health insurance: Percent of full-time

and applicable benefit Period, medium and targe firms, 1982

Participants in pians with major medical coverage by amount of deductible

‘ci Professional and Technical and clerical ‘on partici
All participants administrative participants participants Production participants
‘Amount of deductible’ Benefit period
t-year | Other t-year | Other t-year | Other } tyear | Other
Total | period | period | Total period | period | T°! | period | period | TO | peta Period
Total .. 100 | 96 3 | 10 | 97 3 | 100 | 98 2 | 10 | 95 4
Deductible specified 100 96 3 | to | 97 a | 10 | 98 2 | 9 j 95 4
Based on earnings? 6 6 - 6 6} - 7 7] - 5 s | -
Flat dotier amount 94 a1 3 | 94 | 9 2 | 93 | oF 2} 94 | 90 4
$25 2 1 1 3 2 1 3 1 1 2 1 1
1 1 - 1 1 - ay fo) - 1 1 -
21 21 io) 24 21 i?) 18 18 23 22 1
is) 0 = iv) iy) = i) ia) - is) iv) -
5 5 iv) 5 5 e 4 4 rv) 6 6 -
i) iy) - 1 1 - iW) 9) - 0 7) -
56 | 54 2| 54] 53 1 | 5 | 56 1] SB] 85 3
fe) e) - 1 1 - 1 1 9) i?) -
4 4 - 6 6 7 7/ - 2 2| -
3 3 3 3 e 4 4 ro) 3 3 e
o}-}-f;oaf-f-fea]-]- tf o- | -

Amount of deductible described is for each insured person. However,
many plans contain a maximum family deductible. In some plans, the indi.
vidual and family deductibles are identical.

* These plans have deductibles which vary by the amount of the partici
Pants’ eamings. A typical provision is 1 percent of annual earnings with a

Table 23. Health Insurance: Percent of full-time Participant
Provisions,’ medium and large firms, 1982

maximum deductible of $150.
* Less than 0.5 percent.

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

its in plans with major medical coverage by coinsurance

Professional and . ;
All participants administrative Techrica’ and clerical | preduction participants
Participants Particip
Final coinsurance provision Initial coinsurance
7
80 | 85 | 90 80 } 85 | 90 80 | 85 | 90 80 | 85 | 90
- -| To | Tos th:
10° | ber-| per: | per- On| TS" | per-| per | per- Oth-| 19" | per |per-|per- On| TO" per per- | per- or
icent|cent|cent icent|cent|cent! ‘cent cent} cent cent|cent| cent
Total ro) 80; 5; 2) 4/100] so; 5). 2) 3/100] 92/, 3! 2) al 400 aa] 6| af 4
Final coinsurance changes to 100 i :
percent 83] $6) 4) 1! 2 72) 64) 4! 2) al 72] orl 2) 1) al sal asi sl} a] 2
When covered expenses? withi |
year reach: i i
$1-$2,000... 8 Ot yo Olt pl ale -| 8 a}
$2,001-$4,000 16; 15/0) | @ 1] 2t} 20; -| 19] 18) -!) 3) 1} 12 e 1
$4,001-$6,000 22! 20) 11 (| ©) | 26] 24) 4 0) 25) 25,0) 1 | O | 17; ale
$6,001-$8,000 sf 2] al -; 4 7 3) a) - 5 3! af -1 4] 6 -|o4
$8,001-$10,000 .. se OTM) & SA) 7 FAA! @ ale
More than $10,000 i =| -
Final coinsurance changes to other than !
100 percent UuUAra a; 2 valalal ay aeal-lal 4 yo-1 -1@
Coinsurance unchanged 35] 33) () 1 2) 26) 241 © t] 1) 26} 23] & 1] 2) 45] 43] & 2
i

* Coinsurance is the percent of covered expenses paid by the
Pian. The balance is paid by the employee.

* Amount of covered expenses described is for each insured per-
son, in rare cases, the limit for the individual and family are identical.

* Less than 0.5 percent,

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

32



Table 37. Private pension plans:' Percent of full-time participants by minimum age and associated service requirements for

normal retirement,’ medium and targe firms, 1982

Protes- Protes-
sional |Technical| sional [Technical
3!) Produc- ;.| Produc-
Age and service requirements? iipoats aa ang ce ton par ‘Age and service requirements? tops ee oe are ose fon pare
tive par- | ticipants | “elpant tive par- | ticipants | teipants
ticipants ticipants
Total . 100 100 400 100 lage 62 19 20 18 19
No service requirement 4 5 5 3
No age requirement 13 6 8 19 5 years’ service 1 2 1 1
Less than 30 years’ service r¥) oO 0 oO 10 years’ service g 7 6 "1
30 years’ service 13 5 8 19 15 years’ service ... 2 3 3 1
More than 30 years’ service .. (a) Vv) i) i] 20 or 26 years’ service 1 1 1 2
30 years’ service 2 2 2 1
Age 55 ... 4 7 3 4 Other service requirement fu) fu) iv) ul
20 years’ service 2 6 2 iy)
25 years’ service ry) “ iv () |/Age 63-64 2 1 3 1
30 years’ service 2 1 1 4 No service requirement 1 1 3 1
30 years’ service ) ) ) 0)
Age 56-59 1 1 1 2
20 years’ service 1 - 0 1 lage 65 42 4 44 42
30 or more years’ service 1 1 0 1 No service requirement 36 38 4 33
‘Other service requirement QO iv) oO ful 5 years’ service .. 1 1 1 1
10 years’ service 5 3 2 7
Age 60 10 14 14 6 || Other service requirement 0) * - ‘
No Service requirement 2 4 3 2 iv) QO
5 years’ service . o iv) oO o
10 years’ service 2 2 4 2 ||Sum of age plus service .. 8 10 9 7
15 years’ service 1 2 1 i) Equals less than 80 2 3 2 2
20 or 25 years’ service .. 1 1 1 0 Equals 80 .. 1 1 1 1
30 years’ service 2 3 3 2 Equals 85 .. 3 5 3 3
More than 90 years’ service ) 0) 3) 0 Equals 90 or more 2 2 3 2
Other service requirement 1 2 2 0

* Excludes supplemental pension plans.

? Normal retirement is defined as the point at which the participant
could retire and immediately receive all accrued benefits by virtue of
service and earings, without reduction due to age.

* ff a plan had alternative age and service requirements, the earliest
age and associated service were tabulated: if one altemative did not

al

specify an age, it was the requirement tabulated.

* Less than 0.5 percent.

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



from the 1982 survey data. Treatment for alcohol abuse
was available to one-half of the health plan participants,
while drug abuse treatment was open to three-eighths
{table 29). One-fourth were covered for a second sur-
gical opinion and less than one-tenth for hearing care.
There was little variation in coverage among occupa-
tional groups.

Employee contributions. About one-fourth of employ-
ees participating in employer-provided health insurance
plans paid part of the cost of their protection; one-half
were in plans requiring them to pay some of the cost
for dependents’ insurance. Flat rate contributions for
the single employee averaged nearly $9 a month, while
family coverage cost a little over three times as much.
Monthly employee contributions at times reflected the
extent of benefits; payments of less than $5 for employee
coverage frequently applied where only dental insur-
ance was on a contributory basis.

Production workers were less likely to contribute to-
wards health insurance premiums for themselves and
family members. Moreover, monthly contributions for
that occupational group, when required, were some-
what lower than for salaried employees. Exact data are
not available for about one-tenth of contributory pro-
duction participants, however, because payroll deduc-
tions sometimes applied to an insurance policy cover-
ing health insurance and one or more other benefit areas.

Funding medium. Commercially insured plans most
frequently were the funding medium in all the health
benefit areas; the heaviest concentration was in major
medical plans (table 30). Blue Cross-Blue Shield was an
important funding medium for basic benefits, but was
less important in funding major medical benefits. Some
firms paid for medical expenses of their employees di-
rectly out of their own funds (self-insured). One-fifth
of the health insurance participants had their major.
medical benefits funded through self-insurance by their
employers. This funding arrangement has gained im-
portance in recent years, particularly as a provider of
major medical and dental benefits. About 4 percent of
health insurance participants covered by the survey
were enrolled in Health Maintenance Organizations.”

Life insurance

Nearly all full-time employees participated in life in-
surance plans in 1982; four-fifths had the cost of a ba-
sic plan paid entirely by the employer. Life insurance
coverage has improved since 1979, either through an

4 Health Maintenance Organization (HMO) is a prepaid health
care plan that delivers comprehensive medical services to enrolled
members for a fixed periodic fee. HMO plans and plans provided
through the more traditional health insurers are compared by Allan
Blostin and William Marclay, “HMOs and Other Health Plans: Cov-
erage and Employee Premiums,” Monthly Labor Review, June 1983,
pp. 28-33.

increase in specified amounts of insurance or through
a liberalization of the formula for determining benefits.
The amount of basic coverage for nearly two-thirds of
all life insurance participants was based on earnings (ta-
ble 31), enabling the level of protection to automati-
cally increase with a rise in earnings. Earnings-based
formulas were much more prevalent among white-col-
lar workers (80 percent) than among blue-collar workers
(48 percent). Employee contributions for earnings-based
coverage, when required, were commonly expressed as
a fixed rate for each $1,000 of insurance."

The most common method of tying life insurance
protection to earnings was to multiply the employee’s
annual earnings by a factor of 1 or 2 and round the
product to the next $1,000. Over two-fifths of all em-
ployees in multiple-of-earnings plans had insurance
equal to annual earnings (table 32). Nearly as many,
however, had coverage equal to twice annual earnings,
an increasing trend. Professional-administrative partici-
pants had the highest coverage; over half with this type
of plan had insurance equal to two or more times earn-
ings. There was no upper limit on insurance for a ma-
jority of participants in plans based on earnings. Where
limits exist, the proportion of employees with maxi-
mums of under $100,000 has declined from 21 to 10
percent and the percent with maximums over $250,000
has increased from 6 to 12 percent since 1979.

Most of the remaining life insurance plan participants
(one-third) received a flat amount of insurance, regard-
less of earnings. One-half of all production-worker par-
ticipants were covered by a uniform amount, compared

with less than one-fifth in each of the other two groups. .

Over four-fifths of the workers with a flat amount of
life insurance were provided at least $2,000 but less than
$15,000 of coverage (table 33). Professional-administra-
tive employees had a larger concentration of partici-
pants (10 percent) insured for flat amounts of $20,000
or more than the other groups.

In the event a participant became totally disabled,
life insurance in virtually every plan was either contin-
ued for life, or was payable to the employee in lump-
sum or installment form. To qualify under disability
provisions, the employee was usually required to be be-
low a specified age (commonly age 60) at the time of
disability.

About three-fourths of all life insurance participants
had additional insurance coverage if accidental death
or dismemberment occurred. The amount of insurance
was usually doubled in the case of accidental death.

In addition to basic coverage, some employers of-
fered their workers supplemental life insurance that was

“Rates varied from 4 cents to $1.30 per $1,000, but were often in
the 20- to 29-cent range. The more expensive plans frequently ac-
cumulated an amount of permanent life insurance, which remained
in force after leaving employment without further payment of
premiums.

i
|
i
|
|



Table A-1, Estimated number of establishments and workers within scope of survey and number studied, medium and large

firms, United States,’ 1982

Minimum Number of workers in establishments
employment in| Estimated
Industry division* establishments } number of Professional | +. nical and
within scope of| establishments | Total? and cloreal Production
survey administrative
Within scope of survey*
BCA PON
All industries .. - 44,288 23,922,930 | 4,998,217 | 5,365,129 |- 10,679,378
Manufacturing 21,178 12,292,099 | 2,514,552 1,699,153 7,793,020
Nonmanufacturing - 23,111 11,090,231 | 2,483,665 | 3,665,976 2,886,357
Mining 250 590 373,015 85,597 53,220 228,671
Construction 250 679 387,803 85,821 63,241 190,793,
Transportation, communication, electric, gas,

Sanitary services 2,974,958 633,994 716,224 1,250,340
Wholesale trade ... 983,226 245,666 246,773 373,859
Retail trade .... 250 3,126,105 315,117 838,498 743,370
Finance, insurance and real estate 100 2,446,002 702,199 | 1,473,684 66,554
Selected services’... * 50-100 799,122 415,272 274,337 92,772

Studied
- 1,925 4,071,040 | 1,009,723 953,942 1,827,165
* 100-250 649 2,369,443 591,228 953,319 1,403,639
- 676 1,701,597 418,505 600,628 423,526
250 28 42,937 12,907 9,721 18,797
250 28 33,476 12,087 632 8,666
itary servi * 100.250 183 809,453 194,155 244,643 307,236
Wholesale trade 100 64 26,167 7,875, 7,562 7,846
Retail trade 250 175 388,098 4t,t71 116,658 69,039
Finance, insurance and real estate 100 147 314,717 99,973 183,648 $,543
Selected services” * 60-100 8t 89,749, 50,937 23,759 6,399

* Excludes Alaska and Hawaii,

* As defined in the 1972 edition of the Standard Industrial
Classification Manual, U.S. Office of Management and Budget.

* This figure includes out-of-scope workers. These workers —
executive management, part time, temporary, seasonal, and operational
Personnel in constant travel status (e.g. airine pilots) — are excluded from
the counts of employment by occupational group.

* Number of establishments and workers shown within the scope of
the survey are estimates. These estimates differ from those developed in
the 1982 PATG survey, since each is based on the findings of its
respective survey.

* Minimum employment size was 100 for chemical and allied products;
Petroleum fefining and related industries; machinery except electrical:

ical machinery, equipment, and supplies; transportation equipment:
and instruments and related products. Minimum size was 250 in all other
‘manufacturing industries.

available State Unemployment Insurance (UI) reports
for the 48 States covered by the survey and the Dis-
trict of Columbia. The reference date of the available
UI reports was generally March 1980. The refinement
Procedures included an effort to ensure that most sam-
pling frame units corresponded to the definition of an
establishment developed for this survey. (A small num-
ber of sampling frame units were not refined to corre-
spond to the definition of an establishment because of
limited company reporting ability.)

Sample design
The sample for this survey was a subsample of the
1982 PATC sample to reduce the costs and resources

* Minimum employment size was 100 for railroad transportation, focal
and suburban transit, deep sea foreign and domestic transportation; air
transportation; communications, electric, gas, and sanitary services; and
pipelines; and 250 for all other transportation industries. U.S. Postal
Service is excluded from the survey.

” Limited to advertising; credit reporting and collection agencies;
computer and data processing services; research and development
laboratories; commercial testing laboratories; management and public
relations services, engineering and architectural services; noncommercial
esearch organizations; and accounting, auciting, and bookkeeping
services.

* Minimum employment size was 50 for accounting, auditing, and
bookkeeping services; and 100 in all other selected services.

* These figures refer to all respondents to the survey, whether or not
they provided data for all items studied. See the section on survey
response.

required for data collection. The sample of 1,516° es-
tablishments was selected by first stratifying the sam-
pling frame by broad industry group and establishment
size group based on the total employment in the estab-
lishment. The industry groups consisted of the eight
major industry divisions, as defined by the Office of
Management and Budget, which are covered by the
survey and shown in table A-1.

The number of sample units selected in this survey is, at present,
largely determined by resources and operational constraints and may
be adjusted up or down in future surveys.

51



Table 50. Othe!
eligible employees,

medium and large firms, 1982—-Continued

r benefits: Percent of full-time employees in establishments providing specified benefits by percent of

Technical and clerical employees

Miscellaneous benefits-~-Continued

Subsidized meals:

Full defrayment of cost ..

Partial defrayment of cost
Educational assistance:

Full defrayment of expenses ...

Partial defrayment of expenses

Parking:

Provided at no cost
Provided below commercial rates
‘Company automobile for personal business:
Without reimbursing the company
Partially reimbursing the company

Production employees

Paid leave:
Funeral leave

Miltary leave ..

Profit sharing, savings, and stock plan:

Profit sharing .
Savings and th
‘Stock bonus plans

‘Stock purchase plans ..

Other stock plans?

Income continuation plans:

Severence pay ..

Miscellaneous benefits:
Employee discounts
Git .
In-house infirmary

Nonproduction bonuse:
Relocation allowance:
Full defrayment of expenses .
Partial defrayment of expenses .
Recreational facilities:
Full defrayment of cost
Partial defrayment of cost

Subsidized meals:

Full defrayment of cost

Partial defrayment of cost
Educational assistance:

Full defrayment of expenses ..

Partial defrayment of expenses ..

Parkit

Provided at no cost ..
Provided below commercial rates ..
‘Company automobile for personal business:
Without reimbursing the company ..
Partially reimbursing the company

110 0 51 t0 99 ;
Benefit Total None eligible | percent percent aiid Data not avail

eligible eligible igible able
100 95 1 oO 2 3
100 69 3 2 22 4
100 v7 1 1 25 3
100 48 2 1 47 3
100 a7 6 5 59 3
100 90 3 1 3 3
100 96 1 () i¥) 3
100 95 1 ¢) 3
100 9 1 2 B84 5
400 28 1 1 65 5
100 78 2 3 13 4
100 74 a 3 15 5
100 88 1 1 5 5
100 84 iu) 1 10 5
100 76 2 2 16 5
100 61 3 2 28 5
100 47 Q) 1 47 §
400 84 1 9 5
100 43 1 1 50 5
100 78 1 2 13 5
100 79 4 0) 12 6
100 82 1 0) 12 5
100 86 Y 9 5
100 84 Y YO 4 5
100 93 1 re) 1 5
100 80 1 1 13 5
100 75 1 1 18 5
100 51 2 10) 42 5
100 "1 2 2 8t 5
100 94 1 “) 1 4
100 94 1 - 0) 5
100 95 iv) - 0 5

* Less than 0.5 percent.

® Other stock plans

include Employee Stock Ownership Plans and

Tax Reduction Act Stock Ownership Plans.

49

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

totals. Dash indicates no employees in this category.



Administrative Details

Pre-existing condition

Minimum age of dependent children

Waiting period in case of infant illness

Maximum age of dependent children

Retiree eligibility

Eligibility of retirees eligible for medicare

Coverage of dependents of retirees eligible for
medicare

Medicare contribution for retiree

Medicare contribution for dependents of retirees
eligible for medicare

Disabled or retired employees benefit coverage

Coverage of retirees’ dependents not eligible for
medicare

Survivors benefit coverage

Section B
Hospital and Extended Care Coverage

Hospital room and board coverage
Hospital intensive care
Hospital miscellaneous coverage
Extended care coverage
Extended care in licensed extended care facility
Basis of extended care coverage
Extended care by home health care

Surgical and Medical Benefits
Surgical care coverage
Surgical schedule
Conversion factor for relative value schedule
Selected surgical procedure maximums
Maximum for multiple procedure
In-hospital medical coverage
Medical office coverage

Maternity Care Benefit
Who is covered
Obstetrical schedule
Voluntary abortion coverage
Miscarriages or therapeutic abortion coverage
Maximum for male sterilization
Maximum for female sterilization
Separate deductibles

Diagnostic X-Ray and Laboratory Testing (DXL)

Benefit
DXL coverage

Covered locations by DXL
DXL schedule
“Selected DXL procedure maximums

Outpatient Care and Special Accident Benefit
Outpatient care coverage
Comparison of inpatient and outpatient coverage
Separate limitations
Outpatient charges covered under major medical
Accident bodily injury—special benefit

55

Prescription Drug and Private Duty Nursing
Coverage

Prescription drug

Private duty nursing

Mental Health Care Benefits

Mental health care coverage

Hospital confinements due to mental disorders
coverage

Hospital confinements due to mental disorders
covered same as other illnesses

Selected coverages for mental health care

Coverage in special hospital

Dental Care Benefits
Dental care coverage

Coverage of employees
Coverage of spouses
Coverage of dependent children
Prophylaxis and routine exams
Fillings

Surgery - dental

Inlays

Crowns

Periodontal care

X-rays

Orthodontia

Incentive schedule

Deductible

Maximum coverage
Copayment

Vision Care Benefits

Vision care coverage
Eyeglasses
Schedule for eyeglasses
Eye exams
Contact lenses
Orthoptics

Other Medical Benefits
Second surgical opinion
Alcoholism treatment
Drug abuse treatment
Hearing care

Section C
Deductible, Coinsurance, and/or Maximum Benefit

Provisions

Covered expenses

Deductible expenses

Coinsurance by the amount of incurred expenses

Coinsurance by the number of days/visits

Maximum dollar per day/visit by number of
days/visits

Maximum number of days/visits for specified
expenses

Maximum dollar payable for specified covered
expenses

|



Table 49. Private pension plans:' Percent of full-time
Participants by age and service requirements for participa-
tion,’ medium and large firms, 1982

Protes- |
sional | Techni- |
‘and | cal and | Produc-

‘Age and service requirement | All par-
ee es 4 adminis-| clerical | tion par-
Provisions Ncipants "trative | partic. | ticipants
partici- | pants
pants

Minimum requirement

Total 100 100 100 100

With minimum age and/or service
requirement* 61 60 72 56
Age and service 34 36 48 26
Age only .. 4 6 5 3
Service only 23 18 18 28

Without minimum age and/or

service requirement .. 39 40 28 44

Maximum requirement

Total 100 | 100 100 | 100
With maximum age requirement’ .....| 61 72 69 51
Without maximum age requirement ..| 39 28 31 49

‘ Excludes supplemental pension plans.

? Excludes maximum 6-month administrative time lags allowed by
ERISA. Most plans with time lags adopt the beginning of designated 6-
month periods as participation dates.

* If a plan had alternate participation requirements, one of which was
service only, the service only requirement was tabulated.

“ ERISA legislation states that nearly all pension plans must allow par-
ticipation to tull-time employees who have reached age 25 and who have
completed one year of service. Age and service requirements for many of
these employees are more liberal than the ERISA standard.

® ERISA legistation permits plan administrators to impose a maximum
age for participation. Maximum age must be within 5 years of the plan's
‘normal retirement date.

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

47



Table 7. Pald vacations: Percent of full-time employees by amount of paid vacation provided at selected periods of
service, medium and large firms, 1982

Profes- i Profes-
sional | Techni sionat_| Techni-
‘Alem. |_20d | cal and | Produc- ‘Alem. |_890_ | cal and | Produc-
Vacation policy Toyens |2dminis-| clerical | tion em Vacation policy ovees |@0minis-) clericat | tion em-
Ploy trative | employ- | ployees| Ployees | ‘trative | employ- | ployees
employ-| ees employ-| ees
ees ees
Total 100 | 100 | +00 | 100
lAfter 15 years of service:
In plans providing paid vacations ... 99 100 100 99 io) @ i) @
4 1 2
At 6 months of service:* ia) o) 0 i)
8 4 5 10 15 days 30 24 26 35
5 days .. 39 49 52 29 Over 15 and under 20 days . 5 5 6 4
7 12 W 4 20 days 56 64 64 4B
4 6 5 2 Over 20 and under 25 days 1 2 1 1
1 3 (a 1 2 2 1 2
1 1 i) 2
is) io) e i)
29 5 W 49 @ o) ro) a)
2 1 1 3 3 1 2 5
62 83 84 42 Over 10 and under 15 days i) - - a)
+ 1 1 1 15 days 10 6 8 13
3 7 o 1 Over 15 and under 20 days 1 1 1 1
2 2 (o) 2 20 days 87 62 66 51
Over 20 and under 25 days 3 3 2 3
After 3 years of service: 25 days 22 25 20 22
Under 5 days . ® @ ae ol) Over 25 days .. 3 2 1 4
5 days 4 i) 11 7 |
Over 5 and under 10 days... 1 i) © | 2 |iAtter 25 years of service:
10 days . 79 79 88 75 5 days i) ) ) a)
Over 10 and under 15 days 6 5 4 8 10 days 3 1 2 5
6 n 6 3 Over 10 and under 15 days i) - - i)
“| 2 3 1 3 15 days 9 5 7 14
1 ! Over 15 and und i} 1 1 e
Atter 5 years of service: i 20 days 3t 37 35 26
Under 10 days .... wed OT e io) 1 Over 20 and under 25 days 2 2 2 2
10 days ae) 37 43 58 25 days | 45 47 48 44
‘Over 10 and under 15 days ..... | 6 7 7 6 ‘Over 25 and under 30 days 1 1 0 2
15 days . 39 49 47 30 6 5 4 7
‘Over 15 and under 20 days Pood 1 1 2 1 1 1 1
20 days .. 1 2 4 1104
Over 20 days. Pod 1 1] 4
! 19) i) @ @
After 10 years of service: 3 1 2 5
5 days ia) e a 1 io) - - iv)
10 days. 7 2 3 1" 15 days . 9 5 7 11
Over 10 and under 15 days...) 1 1 1 | 1 ‘Over 15 and under 20 days iv) ig) i) Q
15 days . 69 68 76 66 20 days. 29 36 34 24
Over 1 and under 20 days...) 6 4 4) 7 Over 20 and under 25 days 1 1 1 2
. 14 22 15; 9 25 days .. 42 42 45 40
3 2 4 | 4 |] Over 25 and un 1 +1 @ 2 |
: 30 days .. 10 12 8 "1 |
i Over 30 days 3 2 2 '
* Excludes situations where employees are credited with vacation NOTE: Data include anniversary year and bonus days and exclude
days during the first 6 months of service but, as a matter of establish- extended vacations, Dash indicates no employees in this category.

‘ment policy, must wait beyond 6 months before taking those days off.
? Less than 0.5 percent.



Table 31. Life insurance: Percent of full-time participants
by method of determining amount of basic life Insurance
and frequency of related coverages, medium and large

firms, 1982
Profes-
sional | Techni-
and | cal and | Produc-
Item Ail ar | adminis-| clerical |tion par-
ipants| ‘trative | partici- | ticipants
partici- | pants
pants
Total ..... 100 100 100 100
Basic life insurance’ - 100 100 100 100
Based on eamings .. 64 83 78 48
Multiple 45 65 62 27
Graduated schedule 19 18 7 20
Flat amount 33 14 17 49
Based on service 3 3 4 3
Other a) to) ie) iv)
With extended coverage during total
and permanent disability 99 99 98 99
‘With accidental death and
dismemberment coverage 72 70 66 7
With dependent coverage 16 14 18 15

* A few participants received only accidental death and dismemberment

insurance. :
® Less than 0.5 percent.

\

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

tals.

37



Contents—Continued

Tables—Continued:

7. Paid vacations: Amount provided at selected periods of service .......,

8. Paid holidays and vacations: Average number of days
9. Paid vacations: Length of service required to take vacation .
10. Paid personal leave: Number of days provided Per year ....

11. Short-term disability Coverage: Participation in accident and sickness insurance

plans and paid sick leave plans.
12. Paid sick leave: Type of provision
13. Paid sick leave: By provision ......
14. Paid sick leave: Average number of days at full pay by type of plan

15. Paid annual sick leave: Average number of days by accumulation Policy and

accident and sickness insurance coordination
16. Accident and sickness insurance: Type and duration of payments. .

17. Accidents and sickness insurance, percent-of-earnings formula: Maximum

benefit 2.2,
18. Long-term disability insurance: Metho: of determining payment .
19. Health insurance: Coverage for selected categories of medical care

20. Health insurance, basic hospital room and board coverage: Type of benefit
21. Health insurance, basic surgical benefits: Maximum allowance for selected
22. Health insurance, major medical coverage: Amount of deductible and a)

benefit period... os.
23. Health insurance, major medical coverage: Coinsurance provisions .

24. Health insurance, dental benefits: Extent of coverage for selected procedures
25. Health insurance, dental benefits: Deductible provision.................
26. Health insurance, dental benefits and orthodontic coverage: Maximum amount

Ofinsurance ..................,, wee
27. Health insurance, vision benefits: Extent of benefits
28. Health insurance, mental health benefits: Extent of benefits .
29. Health insurance: Coverage for selected special benefits .
30. Health insurance: Funding medium for selected types of coverage .

31. Life insurance: Method of determining amount of basic life insurance and

frequency of related coverages
32. Life insurance, multiple-of-earning:
maximum coverage provisions . .
33. Life insurance, flat dollar insurance: Amount of basic insurance .
34. Life insurance: Effect of retirement on coverage ...........
35. Private pension plans: Method of determining retirement payments .

36. Private pension plans: Provision for integration or offset of social security benefits .

37. Private pension plans: Minimum age and associated service requirements for
Rormal retirement ==... eee. eee eeeeeeetteeevstee

38. Private pension plans: Minimum age and associated service requirements for

early retirement .
39. Private pension plans, earl ly retire

of payments .........
40. Private pension plans: Provisions for disability retirement .
41. Private pension plans: Provision for credit for service after age 65 .
42. Private pension plans: Vesting provisions
43. Private pension plans: Provision for postretirement survivor annuity .
44. Private pension plans: Provision for Preretirement survivor annuity .

45. Accident and sickness insurance: Length of service requirement for parti ipation
46. Long-term disability insurance: Length of service requirement for Participation

47. Health insurance: Length of service requirement for participation .
48. Life insurance: Length of service Tequirement for participation ... .
49. Private pension plans: Age and service requirements for Participation
50. Other benefits: Percent of eligible employees

Appendixes:

insurance and

ee

Page



Table 19. Health insurance: Percent of full-time pa itegories of medical care, medium
and large firms, 1982—Continued

Provided care i
5 Not provided |
Category of medical care Total an By basic By major ey, pene tae |
benefits only’ : medical only? major medical |
100 100 18 12 63 Q |
100 100 18 13 69 io) j
100 100 18 13 68 ro)
100 60 2 2 1 40
100 100 39 ! at 40 is]
100 100 7 i 30 53 16)
100 cI § | 76 10 9
100 100 30 29 4a to)
100 96 7 76 3 4
100 89 4 84 "
100 99 18 12 72
100 64 60 4 - 36
100 25 23 2 ro) 75
rai Provision was classified as a basic benefit when it related to the ized by deductible and coinsurance provisions.
inal expenses incurred for a specific medical service. Under these pro- 2 Less than 0.5 percent.
visions, a plan paid covered expenses in one of several ways: (1) in Fe NeTa9e for any of the folowing services charged by the out-

full with no fimitation; (2) in full for a specified period of time, or until a Patient department of the hospital: Treatment for accidentel injury or
dollar limit was reached; or (3) a cash scheduled allowanes benefit that Gmergency sickness; surgical procedures; rehabilitative or Physical
Provided up to a dollar amount for a service performed by a hospital or therapy; and treatment for chronic iliness (radiation therapy, etc.).

ticipant to pay a specific amount each disability or year (deductible) or a Care agency. This care is usually provided to a Patient who was previ-

Rominal charge each visit or procedure (copayment) before reimburse- Cusly hospitalized and is recovering without need of the extensive care
‘ment begins or services are rendered. Provided by a general hospital.

* Major medical benefits cover many categories of expenses, some
of which are not covered under basic benefits and others for which ba- NOTE: Because of rounding, sums of individual items ‘may not equal
Sic coverage limits have been exceeded. These benefits are character- totals. Dash indicates no employees in this category.

Table 20. Health insurance: Percent of full-time Participants in plans with basic hospital room and board coverage by
type of benefit Payments, medium and large firms, 1982

Subject to limit on days of coverage per hospital confinement Subject to
‘Type of payment Total T other | Unlimited
Under 120 121 - 364 366 days inl
Al days | 120 days | '1 9 j 365 days | ents | limits
All participants
100 ral 13 19 4 30 5 19 40
Daily dollar atlowance .. 7 ? 4 1 is) | 1 6 i) ~
‘Semiprivate rate 93 64 9 7 3} 2 5 18 10
Professional and administrative

Total 100 67 10 19 3 33 3 20 12
Daily dollar allowance 3 3 1 1 a | 1 - ro) -
Semiprivate rate .. 7 65 9 18 2; 32 3 20 12

Technical and clerical i

Total . 100 66 u 2 | 3 27 3 20 1
Daily dollar allowance 5 2 2 io) 1 io) Qa -
Semiprivate rate 95 6 9 20 3 25 3 20 1%

Production :

Total ... 100 76 16 18 4 30 8 7 7
Daily dollar allowance 11 10 7 2 Oo |: 11 @ ig) ~
‘Semiprivate rate 89 66 9 16 4 ! 29 8 16 7

\ (cludes workers in plans where the basic beneft is limited bya * Less than 0.5 percent.
maximum dollar amount per confinement or per year, and other plane
where the limit on the number of days of coverage applies within NOTE: Because of rounding, sums of individual items may not equal
Specified time limit. totals. Dash indicates no employees in this category,

30



Table 1. Summary: Percent of full-time employees by
Participation’ in empioyee benefit Programs, medium and
large firms,” 1982

Protes-
sional | Techni-
Allem- |_ 24 | cal and | Produc-
Employee benefit program oyees {@dminis-| clericat | tion em-
Ploye trative | employ- | ployees
empioy-| ees |
ees |
Paid:
Holidays 99 g9 | 100 99
Vacations 99 | 100 | 100 99
Personal leave 24 32 33 16
Lunch period 9 3 3 16 |
Rest time .. 76 61 76 84 |
Sick teave 67 92 92 42 !
Accident and sickness insurance 51 30 35 68
Noneontributory 4 22 26 58
Long-term disability insurance 43 63 53 28
Noncontributory’ .. 33 |. 47 40 24
Health insurance for employee . 97 98 95 97
Noncontributory’ .. 71 68 61 77
Health insurance for dependents 93 96 ot 93
Noncontributory* 46 43 36 52
Life insurance .. 96 98 96 96
Noneontributory’ .. 82 81 80 83
Retirement pension 84 87 86 82 |
Noncontributory? 78 80 80 76

* Participation is defined as coverage by a time off, insurance, or pen-
sion plan. Employees subject to a minimum service ‘requirement before
they are eligible for a benefit are counted as participants even if they have
not met the requirement at the time of the survey. If employees are re.
quired to pay part of the cost of a benefit, only those who elect the cover.
age and pay their share are counted as participants. Benefits for which
the employee must pay the full premium are outside the scope of the sur-
vey. Only current employees are counted as participants; retirees are ex.
cluded even if participating in a benefit program,

* See appendix A for scope of study and definitions of occupational
groups.

* All coverage in the benefit program is provided at no cost to em-
ployee. Supplemental life insurance and pension plans, not tabulated in
this bulletin, may be contributory,

Table 2, Work schedule: Percent of full-time employees by
number of hours scheduled per week,’ medium and large

firms, 1982
Profes-
sional | Techni-
‘Allem- | 294 cal and | Produc-
Work schedule loyees | 20minis-| clerical | tion em-
Ploye trative ; employ- | ployees
employ-| ees
ees
100 100 100 100
1 i) ro) 1
3 4 8 1
1 2 2 1
7 9 18 2
3 4 5 1
84 7 71 93 if
i 1 ) 1 |
Hours per week not available .. i) a) iv) - |

| Work schedule data, limited to straight-time hours, included lunch and
test periods only if they were paid. Regularly scheduled overtime was ex-
cluded in this survey.

* Less than 0.5 percent.

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

16



Table 13. Pald sick leave: Percent of full-time employees by sick leave provision, medium and large firms, 1982

Protes- Profes- |
sional | Techni- sional | Techni- |
- ; ‘Alt em. |. 29d | cal and | Produc-| Alem | 29d [cal and | Produc
Sick leave policy’ ployees {@¢minis-| clerical | tion om, Sick leave policy’ ployees |@dminis-| clerical | tion em-
trative | employ- | ployees " trative |employ-| ployees
employ-| ees employ-| ees |
ees ees |
|
100 | 100 { 100 | 100 |
Sick leave provided i
Provided sick leave* 67 92 92 42 annually’—Continued
Sick leave provided Unused sick leave provisions:
annually’. 49 61 n 34 Carry-over only .. 7 19 27 " i
Cash-in only 6 1 8 a |
Less than 1 year of service: Cash-in and carry-over 2 1 3 3
Under 5 days .. 12 8 7 10 No provision .. 25 39 36 12
5 and under 10 days 16 at 25 9 Data not available ra) oO oO iv)
10 and under 30 days 9 18 15 3 |
30 and under 60 days (0) 1 iV) (9) ‘Sick leave provided on a per |
60 and under 120 day: 1 2 oO disability basis* | 19 32 26 9 '
120 days or more 1 4 1 1
Less than 1 year of service:
After 1 year of service: Under 5 days . 0 0) 1 9)
Under 5 days 3 1 2 5 5 and under 10 days 4 7 7 2
§ and under 10 days 19 13 a7 7 10 and under 30 days .. 4 7 7 1 i
10 and under 30 days 22 37 36 8 30 and under 60 days . 1 2 1 0) '
30 and under 60 days 1 3 1 1 60 and under 120 days 1 3 2 0
60 and under 120 days 1 2 Q oO 120 days or more .. 3 9 2 O
120 days or more 2 4 1 1
After 1 year of service:
After 5 years of service: Under 5 days .. 7) rv) 1 9)
‘Under 5 days .. 2 0 1 4 5 and under 10 days 3 5 5 2
5 and under 10 days .. 15 9 19 15 10 and under 30 days 5 6 8 2
10 and under 30 days .....| 20 29 33 9 30 and under 60 days 2 5 3 0)
30 and under 60 days... 6 10 10 2 60 and under 120 days 2 4 2 1
60 and under 120 days 3 6 5 1 120 days or more .. 3 9 2 1
120 days or more .. 3 7 2 1
After 5 years of service:
After 10 years of servici Under 30 days .. 2 2 4 1
Under § days ... 2 ) 1 4 30 and under 60 day: 3 4 4 1
5 and under 10 days 14 8 18 15 60 and under 120 days 10 14 14 6
10 and under 30 days 18 26 30 8 120 days or more .. 4 11 3 1
30 and under 60 days 5 7 8 2
60 and under 120 days 5 10 7 2 After 10 years of service:
120 days or more 4 9 5 1 Under 30 days . 2 2 3 1
30 and under 60 days 1 2 2 oO
After 15 years of service: 60 and under 120 days...| 10 13 14 6
Under 5 days ... 2 0 1 4 120 days or more 5 15 6 1
5 and under 10 days ~ 14 8 18 15
10 and under 30 days 18 25 29 8 After 15 years of service:
30 and under 60 days 3 4 6 2 Under 60 days 3 4 5 1
60 and under 120 days . 6 "1 8 2 60 and under 120 days 4 7 7 2
120 days or more 6 12 8 2 120 days or more " 24 14 5
After 20 years of servici After 20 years of service: |
Under 5 days 2 1) 1 4 Under 60 days 2 4 4 1
5 and under 10 days 14 8 18 15 60 and under 1 4 6 6 2
10 and under 30 days, 18 25 23 8 120 days or more 12 23 15 6
30 and under 60 days 3 4 5 1
60 and under 120 days .. 6 10 7 3 Atter 25 years of service:
120 days or more 6 13 9 2 2 4 4 1
3 5 6 2
After 25 years of service: 120 days or more 2 23 15, 6
Under 5 days .... 2 0) 1 3
5 and under 10 days 15 a 18 7 No maximum sick leave
10 and under 30 days 18 25 29 8 Specified” 1 1 oO
30 and under 60 days .. 3 4 5 1 Other basis* oO O tv) oO
60 and under 120 days 4 7 5 2
120 days or more 8 7 1 9. ||Not provided paid sick leave .. 33 8 8
* This table is limited to provisions for sick leave days for which full « Less than 0.5 percent.
Pay is granted. Some plans grant sick leave at partial pay, either in ad- § Provisions were virtually the same after tonger years of service.
dition or as an alternative to full-pay provisions. Partial-pay provisions * Sick leave is provided on a per illness or per disability basis. The
are excluded from the datailed tabulations. ‘number of days may vary by length of service,
® The total is tess than the sum of the individual breakdowns be- 7 Unlimited sick leave provided to employees as needed. i
cause some employees were covered under both an annual and a per * Includes formal plans with provisions that change from a specified |
disability plan. fumber of days per year to a specified number of days per absence

* Employees eam a specified number of sick days per year. This after a certain service period.
number may vary by length of service.



Table 5. Paid holidays: Percent of full-time employees by
number of paid holidays Provided each year, medium and
large firms, 1982

Produc-
tion em-
ployees

Number of days

Provided paid holidays 99
Under 6 days . 3
6 days ... 4
0) 1
8
10) 0)
7 9 G
i 1 ie)
10 15 7
3 4 1
30 26 27
1 2 1
7 15 18
1 1 i]
7 é 10
QO Q 0
4 6
10) Y) is)
2 2
0
t
1
More than 16 days 3
Number of days not availabi 0)
Not provided paid holidays ... 1

“Less than 0.5 percent.

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

Table 6. Paid holidays: Percent of full-time participants by
Policy on holidays that fait on a regularly scheduled day off,
medium and large firms, 1982

al and | Produc.
Clerical | tion par-
Partici- | ticipants
Pants

Holiday potiey All par-

Holiday is not observed
Another day off granted

Additional day's pay in tieu of
Roliday

Another day off or day's pay,
depending on when holiday falls ..

Another day off or holiday not
observed, depending on when
holiday fatis

f
i
“T
i
/

Other provision applies?
Holiday policy not determinable

; Less than 0.5 percent,
* Policy differs by holiday.

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

18



Table 21. Health insurance: Percent of full-time participants
in plans with basic surgical benefits by maximum allowance
for selected procedures, medium and large firms, 1982

Profes-
sional | Techni-
All pare | 296 _| cal and | Produc
Maximum allowance tieipants |@4inis-| clerical tion par-
trative | partici- | ticipants
partici- | pants
pants
Total 100 | 100 | 400 | 100
Usual and customary charge .. 64 68 62 62
Maximum scheduled allowance .. 36 32 38 38
Most expensive surgical
procedure:
$201-$300 ....... 1 1 1 2
$301-$400 1 1 0) 2
$401-$500 4 2 3 5
$501-$750 5 2 2 7
$751-$1,000 . 6 5 6 6
$1,001-$1,250 3 2 4 3
$1,251-$1,500 5 4 7 5
) _ $1,501-$2,000 5 6 9 3
< More than $2,000 6 10 7 4
Appendectomy:
$100 or less .. io) - - ie)
$101-$150 .. 2 1 1 3
$151-$200 .. 6 4 4 7
$201-$300 10 7 1 "
$301-$400 . 8 7 10 7
$401-$500 .. 4 3 6 4
More than $500 6 8 6 4
‘Not determinable” i 1 1 1 1
Tonsillectomy: |
12 1 1 2
$51-$100 “| 13 8 9 7
$101-$150 .. | 13 W 17 W
$151-$200 .. 4 4 5 4
More than $200 4 7 4 2
Not determinable’ 1 1 1 1
Hysterectomy:
$200 or jess 1 () () 1
$201-$300 .. 7 4 4 9
$301-$400 5 3 4 6
$401-$500 6 6 9 6
$501-$750 10 8 13 9
More than $750 6 8 5 5
Not determinable® 3 3 4 2

* Less than 0.5 percent.

? Information necessary to classify was not provided.

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

tals. Dash indicates no employees in

31



If certain conditions are satisfied at the time of separa-
tion, workers have a vested right in all or a significant
portion of their accrued pension benefits and may be-
gin receiving benefits years later. The Employee Re-
tirement Income Security Act of 1974 (ERISA) made
vesting a universal feature of private pension plans. Al-
though all pension participants are entitled to vested
benefits under ERISA, some variation exists as to when
this occurs. Most pension plans require 10 years of serv-
ice before benefits are fully guaranteed (table 42). While
two-thirds of the participants were covered by the 10-
year rule regardless of age, slightly over one-fifth were
affected by the plan sponsor’s right to exclude years of
service before age 22 in determining vesting eligibility.
One-eighth of the participants were in plans with a
gradually increasing vesting schedule, requiring up to
15 years for full vesting, but providing partial vesting
after a few years’ service. *

Unreduced vested pension payments begin at a plan’s
normal retirement age, based on the benefit formula in
effect when an employee left the plan. However, nearly
all terminated and vested participants could receive a
reduced pension at an earlier age (usually the plan’s
early retirement age). This option was available to 72
percent of the participants if they had just satisfied the
minimum vesting requirements when they left their
plans. Twenty-five percent were not eligible for an early
start of payments unless they had completed more years
of service than were required for vesting.

Postretirement survivor benefits. The ERISA legislation
also requires that retirement plans allow employees to
elect a form of pension in which at least 50 percent of
the retiree’s payments continue to the spouse after the
retiree’s death. When this type of pension—called a
joint-and-survivor annuity—is elected, the employee
will receive a lower benefit during retirement since
payments are likely to be made over a longer period of
time. When the retiree dies, the spouse will receive part
or all of the retiree’s monthly pension benefits.

Joint-and-survivor benefits are based on an actuarial
or arithmetic reduction of the employee’s pension which
is necessary to allow for continuation of benefits to the
employee’s survivor. Just under one-fourth of the par-
ticipants were in plans offering only a joint-and-survi-
vor option that provides a surviving spouse 50 percent
of the retiree’s actuarially adjusted pension. Nearly two-
thirds of participants had a choice of two or more al-
ternative percentages to be continued to the spouse (ta-
ble 43).

Preretirement survivor benefits. Nearly all participants
were in plans providing for survivor payments in case
the employee died before retirement. Employees usu-
ally had to be eligible for early retirement before any
death benefits were payable. For nearly three-fourths

of the participants, a surviving spouse would receive
an annuity equivalent to the amount payable if the em-
ployee had retired on the day prior to death and had
elected a joint-and-survivor form of payment (table 44).
Most survivor pensions of this nature were based on an
early retirement benefit and were provided at no cost
to the employee. However, for 23 percent of those em-
ployees having preretirement joint-and-survivor protec-
tion, it was available only if elected, and its cost was
paid by the employee through a small deduction in the
pension ultimately payable to either employee or spouse.

Employee contributions. Only 7 percent of pension plan
participants had to pay part of the cost of their plan;
virtually all of those paid a percent of earnings. For
just over one-fourth of these workers, the percentage
was a flat rate—most often 2, 3, or 4 percent of earn-
ings (none paid more than 4 percent). The majority of
participants in contributory plans paid one rate (usually
2 to 5 percent) on earnings above a specified level, and
a lower rate (frequently zero) below that earnings level.
The annual earnings level at which this break occurred
ranged from $3,000 to $32,400, the social security tax-
able earnings base in effect during 1982. Plans with
varying employee contributions usually coordinate pri-
vate benefits with social security payments, and pro-
vide a higher rate of earnings replacement on earnings
above the social security taxable wage base.

Plan participation requirements

The insurance and pension programs commonly
specify minimum length-of-service periods before em-
ployees may join a plan. These service requirements
often are nominal, coinciding with an employer’s pro-
bationary policy or the administrative time needed to
begin employer funding of benefits. Service require-
ments in some long-term disability insurance plans, how-
ever, are more restrictive, and are intended to limit the
number of covered workers and control employer costs.
Similarly, sponsors of pension plans frequently impose
age requirements which prevent younger or older
workers from participating.”

Insurance plans, The incidence of service requirements
did not vary significantly by benefit area, but was
slightly lower among health insurance plan members
and highest for accident and sickness insurance (tables

1® Age and service restrictions are not the only limitations on par-
ticipation in insurance and pension plans. Many firms limit these bene-
fits to persons with full-time and permanent employment status; others
have a more liberal requirement, such as a workweek of 20 hours or
more. Some plans are available only to persons covered by another
plan; for example, life insurance plans that restrict eligibility to those
who also are enrolled in the company’s health insurance program. In
other cases, participation in one plan blocks eligibility for others, as
when several alternative health insurance plans are offered by the
employer.



Regional Offices

Bureau of Labor Statistics

see aN Sas

REGION Vill

REGION Vil

Region |
1603 JFK Federal Building
Government Center
Boston, Mass. 02203
Phone: (617) 223-6761

Region II
Suite 3400
1515 Broadway
New York, N.Y. 10036
Phone: (212) 944-3121

Region il!
3535 Market Street
P.O. Box 13309
Philadetphia, Pa. 19101
Phone: (215) 596-1154

Region IV

1371 Peachtree Street, N.E.
Atianta, Ga. 30367
Phone: (404) 881-4418

Region V

9th Floor

Federal Office Buitding
230 S. Dearborn Street
Chicago, II!. 60604
Phone: (312) 353-1880

Region VI

Second Floor

555 Griffin Square Building
Dallas, Tex. 75202

Phone: (214) 767-6971

Regions Vil and VII

911 Walnut Street
Kansas City, Mo. 64106
Phone: (816) 374-2481

Regions [X and X

450 Golden Gate Avenue
Box 36017

San Francisco, Calif. 94102
Phone: (415) 556-4678


benefit for white-collar workers; over six-tenths of these
workers had paid sick leave plans only, and another
three-tenths had both paid sick leave and accident and
sickness insurance.

Seven percent of all employees in the survey had no
short-term disability coverage (table 11). Production
workers were more likely than white-collar workers to
be without this protection.

Sick leave plans. The number of days of paid sick leave
varies greatly, depending, in part, on whether a plan
specifies the number of days available each year (an-
nual plans) or for each absence due to illness or injury
(per-disability plans). These two basic types of leave
are contrasted in table 13, which distributes participants
according to the number of days of sick leave, and in
table 14, which gives the average number of days at
full pay. Both tables show how the number of available
sick leave days varies with years of service. Average
days of sick leave were computed for the first time us-
ing 1982 survey data.

The majority of employees covered by paid sick leave
were under annual plans (table 12). These plans com-
monly increased the number of available sick leave days
sharply over the first 5 years of service, and then only
slightly thereafter (table 13). The average (mean) num-
ber of days, however, increased appreciably through
15 years of service before leveling out, due to a few
plans with a large number of days. Annual sick leave
plans made available an average of 16.3 days at full pay
at i year of service, 36.1 days at 15 years, and 40.9 days
at 30 years (table 14).

Nineteen percent of ali employees had limits on paid
sick leave for each disability. The number of days of
paid leave under per-disability plans was generally
larger than under annual plans and increased sharply
with length of service. For example, at 1 year of serv-
ice, workers with this coverage commonly had from 5
to 30 days per disability, while at 5 years, the number
usually ranged from 60 to 120 days; at 15 years of serv-
ice, the most common coverage exceeded 120 days. The
average number of days increased from 46.6 at full pay
at 1 year, to 109.3 at 15 years, and 149.4 days at 30
years.

Two other pian provisions—those covering accumu-
lation of unused annual sick leave and coordination of
sick leave with accident and sickness insurance—greatly
affect the amount of sick leave protection (table 15).
Annual plans that allow employees to carry over un-
used sick leave from one year to the next (cumulative
plans) generally make a smaller number of days avail-
able each year than noncumulative plans, relying on
accumulated sick leave to provide protection for a dis-
ability of several weeks. For example, at 20 years of
service, cumulative annual plans averaged 13.3 days
while similar noncumulative plans averaged 54.2 days.

Persons with cumulative plans who carry over a por-
tion of their available sick leave from year to year can
eventually accumulate substantial protection.

Sick leave plans that are coordinated with accident
and sickness insurance tend to provide fewer days than
those that stand alone, as the insurance begins making
payments when the sick leave is exhausted. The differ-
ence is especially striking in noncumulative annual
plans—those that are coordinated with insurance aver-
aged 41 days less at 20 years’ service than similar plans
without insurance.

Almost ali paid sick leave plans provided the em-
ployee with full pay for at least a portion of the time
while on sick leave. In addition, about one-fourth of
the participants were in plans paying part of the em-
ployee’s regular salary after full-pay provisions were
exhausted. These partial pay provisions were much
more common in per-disability plans (52 percent of par-
ticipants) than in annual plans (15 percent). Another 2
percent of the sick leave participants received partial
pay only.

At 1 year of service, 84 percent of the workers cov-
ered by sick leave plans received benefits beginning on
the first day of illness or disability. The remainder typi-
cally had to wait 1 to 5 workdays, with the waiting
period often decreasing to zero after 10 to 15 years of
service.

Accident and sickness insurance. Two-fifths of the em-
ployees had accident and sickness insurance fully paid
by the employer. Another tenth were in plans that re-
quire the employee to pay part of the cost (contribu-
tory plans). The majority of the latter workers paid a
flat monthly amount, usually from $1 to $1.99, towards
the cost of the plan. Most of the others paid a percent
of monthly earnings.

Payments from accident and sickness insurance were
either based on earnings or were scheduled dollar
amounts (table 16). Of those workers covered by acci-
dent and sickness plans, 59 percent of the production
worker participants and 88 percent of the white-collar
participants could receive a benefit based on earnings.
Plans based on earnings pay either a percent of earn-
ings (usually 50 to 70 percent) or a dollar amount that
varies by earnings. Plans with percent of earnings for-
mulas often had limits on the amount of the weekly
benefit. Seventy percent of the workers in these plans
would receive less than the stated percent of earnings
if the payment would exceed a specified amount, which
varied from under $80 to over $300 (table 17). There
was a noticeable increase in the weekly payment maxi-
mum between 1981 and 1982, as about 10 percent of
participants shifted from the $120-$139 range to the
$140-$199 maximum benefit range.

Thirty-nine percent of production-worker partici-
pants were in plans paying fixed weekly dollar sums.



Table 18. Long-term disability insurance: Percent of full-time participants. by method of determining payment, medium
and large firms, 1982

‘ci Professional and Technical and clerical

All participants: administrative participants participants Production participants

With | Without With | Without With | Without With | Witho

Method maxi- | maxi- maxis | maxi- maxi- | maxi- maxi- | maxi

mum |} mum mum | mum mum | mum mum | mum

Total cover- | cover- Total cover- | cover- Total cover- | cover- Total cover- | cover

lage pro-|age pro- ‘age pro-/age pro- lage pro-|age pro- age pro-|age pr.

visions | visions visions | visions visions | visions visions | vision:

100 1 23 | 100 74 26 | 100 76 24 | 400 63 7

78 62 16 86 64 22 8t 64 16 67 87 10

2 1 1 1 1 O) i 1 (0) 3 2 2

29 23 6 29 20 10 27 22 5 29 26 2
Q 0) 0) C) QO -, 1 Q ) 1 1 -

36 30 6 4t 34 7 39 33 7 26 22

7 6 1 9 7 1 8 6 1 6 5 (9)

70 percent or more 4 2 2 5 2 3 4 2 2 2 1 !
Percent varies by earings .. 9 6 3 9 6 3 16 10 5 4 2 2
Percent varies by service 1 () 1 1 i) 1 1 Q 1 1 YO {)
Scheduled doltar amount varies by

eamings 10 2 8 2 2 - 2 1 0) 26 2 24
f 2 1 1 2 2 1 1 1 1 3 2 2
| Less than 0.5 percent. © NOTE: Because of rounding, sums of individual items may not equal to- |

* Includes flat dollar amounts and scheduled percent of eamings vary- tals. Dash indicates no employees in this, category,
ing by length of disability.

28



Table 16. Accident and sickness Insurance: Percent of full-time Participants by type and duration of i

Payments, medium and large firms, 1982

Maximum weeks of coverage

Type of payment Less Greater | Varies
Total | than | 13 | 1425} 26 | 27-51} 52 | than | by
13 52 | service
All participants
All types .. 100 1 1 5 53 1 16 iv) 12
Fixed percent of earnings 44 1 3 4 29 1 1/0 8
50-54 17 1) 1 2 13 - - 1
9) - - - iv) - - i)
12 1 1 2 6 () QO 1
10 0 u - 7 iv) Q) 1
5 0 oO 1 3 - - 1 |
4 o] o a) 2/0 1 /
2 - - - 1 - 1 - )
isability 1 - 0) iv) 0 0) 1 - Yo
By both service and length of
disability 1 - - - ) - - 1
By eaming 0) - - - - - } -
Fixed weekly dotiar benefit 30 0) 7 1 7 0) 3 - 2
7 Q 4 - 3 i) rv) - a
4 Yo 2 1 2 QO 0 - ~
3 - 4 «) 2 - - - iN)
5 ~ iy) iv) 4 0) 1 - ()
5 Q ) 0) 4 Q 1 - -
6 re) Q QO 3 i) - 2
Weekly dollar benefit varies .. 2 - 1 - ? 0) 17 | 4 i
By earnings... 20 - 1 - 6 is) 9/0 4
By service or fength of
disability .. 1 - ) - 1 - 0) - 0) |
Professional and administrative |
All types 3 4 6 62 QO 10 1 13
Fixed percent of eamings 68 2 2 6 rn) 1 1 7
50-54 25 - - 1 22 - - - 3
60-64 .. 23 2 1 4 13 bd iv) ¢ 3
65-69 .. 15 0 1 - 12 ty 1 0) 10)
70 oF m 5 - - 1 2 - ) - 1
Percent of eamings varies 13 - - ) 3 - a]
By service . 6 - - - 1 - 5 - v)
By length of disability 5 - - “) 2 - 3 - ~
By both service and length of
disability 2 - - - iv) - - - 1
By earings 1) - - - ~ - - Oo -
W 1 2 re) 6 Y 1 - 2
3 - 1 ~ 2 - - - -
+] - tho 9 - - -
3 - - - 1 - - - 1
$100-$119 2 - 0) . 1 : 1 7 “
$120-$139 2 1 oO - 1) 0) i) - -
$140 or mi 1 - - - 1 - - - 0)
Weekly dollar benefit varies 8 - - 4 - 1) QO 2
By earnings 7 - - 4 - Q) i) 2
By service or length of
disability 0 - - - 0 - - - -
Technical and clerical |
|
All types .. 100 2 8 5 89 2 8 1 16 |
|
Fixed percent of earnings 70 2 4 5 47 1 v) 10
50-54 26 Y ¢) 2 22 - - 2
55.59 () % - | @ | - - in)
60-64 20 1 2 3 8 Q 1 oO 4
65-69 16 CQ 1 - WW 1 1 () 2

See footnotes at end of table.

25


Chart 1. Paid time off; Percent of full
large firms, 1982

-time employees covered, medium and

Holidays

Li

Vacations

Rest time

Sick leave

Personal leave WG
Lunch period Z j

T T
50 75 100

Percent

Chart 2. Insurance and pension plans: Percent of full-

medium and large firms, 1982

time employees covered,

Retirement pension

Life insurance

Health insurance,
employees

Health insurance,
dependents

Long-term disability
insurance

Accident and
sickness insurance

MM Employer paid
4 Employer/employee paid

50 75
Percent

100



Employee Benefits in Medium

_and Large Firms, 1982

The 1982 benefits survey collected data on employee
work schedules and developed information on the in-
cidence and detailed characteristics of 11 private sec-
tor employee benefits paid for at least in part by the
employer: Paid lunch and rest periods, holidays, vaca-
tions, and personal and sick leave; accident and sick-
ness, long-term disability, health, and life insurance; and
private retirement pension plans. (See charts 1 and 2.)
In addition, data were collected on the incidence of 18
other employee benefits, including stock, savings and
thrift, and profit sharing plans; nonproduction bonuses;
employee discounts; educational assistance; relocation
allowances; and free or subsidized parking. The major
BLS findings are reported in this bulletin.

The survey covered full-time employees in medium
‘and large establishments (generally those with at least
100 or 250 employees, depending upon the industry).
Since data collection was limited to provisions of for-
mal plans, the extent of such benefits as rest periods
and personal leave may be understated. Furthermore,
the data show the coverage of benefit plans but not the
actual use of these benefits; for example, that part of
permissible paid sick leave actually taken.

Data are presented separately for.three occupational
groups—professional- administrative, technical-clerical,
and production workers. The text of this bulletin often
discusses the first two groups jointly, labeled white-col-
Jar workers, in contrast with production or blue-collar
workers.

Respondents provided information on the number of
workers covered by specified benefit plans. Workers
generally were counted as covered by plans that re-
quired a minimum amount of service prior to receiving
benefits, even if they had not met the minimum service
requirement at the time of the survey. Where
plans—such as health or life insurance—required an
employee to pay part of the cost (contributory plans),
workers were counted only if they elected the plan and
were paying their share of the cost. Data on insured
benefit plans and private retirement pension plans were
thus limited to “participants.” Plans for which only ad-
ministrative costs were paid by the employer were not
included in the survey.’

Tabulations in the bulletin show the percent of em-
ployees covered by benefit plans or plan provisions.
Percentage computations differ with respect to the
group of employees serving as a base for the calcula-
tions. Three such employee groupings are used: (1) All
employees covered by the survey; (2) employees who
participated in a particular type of benefit plan; and (3)
employees covered by a particular type of provision
within a benefit area to provide a close look at an im-
portant feature.

Compared to 1981 findings, 1982 results reflect a drop
of about 600,000 (5.5 percent) in production worker
employment within the scope of the survey. This de-
cline in employment did not occur evenly across indus-
tries. As a result, some shifts in survey findings regard-
ing relative incidence of types of benefit plan provisions
stem, not from changes in the plans, but from dispro-
portionate decreases in the number of employees cov-.
ered by different types of plans.

Summary

The great majority of full-time workers within the
scope of the 1982 survey of employee benefits were
provided with health and life insurance and private re-
tirement pension plans as well as paid holidays and va-
cations (table 1). The employer generally paid the full
cost of providing benefits. Provisions of many employee
benefits differed markedly between white-collar and
production workers.

On the average, employees received 10 paid holidays
each year. The number of days of paid vacation, in-
creasing with years of service, averaged nearly 16 days
after 10 years and 21 days after 20 years.

Ninety-three percent of all employees had some pro-
tection against loss of income due to short-term disabil-
ity—either. sick leave or accident and sickness insur-
ance, or both. Workers with 5 years’ service who were
covered by sick leave plans could take, on the average,
from 5 to nearly 15 weeks off with full pay per year or
per disability, depending on the type of plan. Most of

‘An exception, however, was made in table 34 which tabulates
postretirement life insurance coverage. Plans under which retirees
pay the full cost were included since the assurance of insurability at
retirement was, in itself, considered a benefit.



45-48). Except for long-term disability insurance plans,
service requirements were usually only 1, 2, or 3 months,
Requirements found in LTD plans were more restric-
tive; nearly two-fifths of the participants had require-
ments of from 6 months to 3 years or more. Because
of the long-term nature of this benefit, employers have
traditionally restricted eligibility to employees who
have demonstrated Some attachment to the company.

For health and life insurance benefits, the incidence
of requirements varied markedly among the employee
groups. While more than one-half of professional-ad-
ministrative employees could participate immediately,
Over two-thirds of production workers had some wait-
ing period.

Private pension plans. Three-fifths of pension plan par-
ticipants were required to meet certain minimum age
or service criteria (table 49). Minimum ages were re-
quired for nearly two-fifths of covered employees, re-
flecting the concern of plan sponsors about the costs of
funding retirement benefits, About one-third of the par-
ticipants had to meet both stipulated minimum age and
service requirements. ERISA legislation requires that
employers who provide pension plans make them avail-
able to all full-time employees by the time they have
reached age 25 and completed 1 year of service. Many
plans with minimum age and service requirements, how-
ever, allowed Participation at an earlier age. Service
requirements seldom exceeded | year, even when no
minimum age was specified.

Similarly, about three-fifths of all participants were
in plans with a maximum age, usually 59, beyond which
newly hired employees were not eligible. Maximum age
conditions are permitted under ERISA regulations as
long as the specified age is within 5 years of a plan’s
normal retirement age.

Both minimum and maximum Participation require-
ment provisions occurred in plans covering two-thirds
of white-collar employees, and approximately one-half
of the production workers.

Other benefits

In addition to the major benefits previously discussed,
information was collected on a number of other bene-
fit plans, such as profit sharing, severance pay, and re-
location allowances. Table 50 shows the extent of cov-
erage for each employee group within individual estab-
lishments. Generally, benefits were either provided for
all workers or did not exist in an employee group within
an establishment. For example, 72 percent of the pro-
fessional-administrative employees were in establish-
ments that did not have Profit sharing plans for this
employee group, 20 Percent worked in firms that of-
fered these plans to all professional-administrative em-
Ployees, and -5 Percent were in establishments that of-
fered the benefit to some but not all of this group. (Data

were not available for 3 percent.) The data in table 50
do not indicate, however, the Proportion of employees
actually using or receiving a specific benefit.

Funeral leave, military leave, parking (provided at
no cost or below commercial rates), and full or partial
Payment of education expenses were available to at least
three-fifths of the employees in each group. Employee
discounts on purchases of the employer’s goods or serv-
ices and in-house infirmary care were also important
benefits, covering at least two-fifths of the employees
of each group. Among the benefits surveyed, eligibility
was lowest for stock bonus plans, stock purchase plans,
and employee gifts. In addition, employee eligibility for
use of a company-owned or leased automobile for per-
sonal business was seldom found, but was provided
more often to the professional-administrative employ-
ees than to the other two groups.

Nonproduction bonuses, a benefit added to the study
in 1982, provided cash Payments to employees under a
formal company practice, such as Christmas bonuses,
or in recognition of employee achievements not directly
related to productivity (attendance, safety, and perfor-
mance awards). Less than one-fifth of the employees in
each occupational group were eligible for nonproduc-
tion bonuses.

Incidence of several other benefits differed by em-
ployee group, with a larger proportion of profes-
sional-administrative employees usually covered. For
example, full or partial payment of relocation expenses
for transferred or newly hired employees was available
to four-fifths of the professional-administrative employ-
ees but to only two-fifths of the technical-clerical em-
ployees and one-fourth of the production workers. Sev-
€rance pay was offered to over one-half of the white-col-
lar employees, almost twice the proportion of produc-
tion employees covered. Profit sharing, savings, stock
bonus, and stock purchase plans, available to a minor-
ity of workers in each employee group, were offered
least often to production workers.

The data in table 50 distinguish between full and par-
tial defrayment of the cost of the benefit to the em-
Ployee for six of these benefits. Parking, for example,
was nearly always free for those employees eligible for
the benefit. Conversely, meals served in a cafeteria or
other dining facility were generally provided at reduced
cost, rather than free, to those eligible. Fully paid re-
location allowances were available to 3 out of 4 eligi-
ble white-collar employees but to only one-half of the
covered production workers. (Full defrayment by the
employer of relocation expenses incurred by employ-
ees includes all of the cost of breaking a lease or sell-
ing a house, packing and moving expenses, and em-
Ployee and family living expenses during the move.)
For those employees provided recreational facilities,
which range from employer-sponsored sport teams to
sophisticated fitness facilities, nearly one-half of the



medium and large firms, 1982

White—collar employees

‘Short-term disability coverage: Percent of full-time employees by type of

Combined accident
and sickness

y—— Insurance/paid
sick /P
29%

leave

Blue—collar employees

I percent received lump-sum payments from vacation
funds.

Ninety-seven Percent of the employees covered by
vacation plans had to work for a specified period be-
fore being able to take a vacation. The most prevalent
length-of-service Tequirement was 6 months for
white-collar employees and 1 year for Production em-
Ployees (table 9).

Anniversary-year bonus vacation days were included
in the count of regular vacation time. Extended vaca-
tion plans, however, were excluded.‘

Personal leave

Formal personal leave, which allows employees to
be absent from work with pay for a variety of reasons
not covered by other Specific leave plans, was provided
to nearly one-fourth of the employees. One-third of the

“The 41-month contract negotiated in 1983 by the Steelworkers and
the major steel companies eliminated provision for extended vaca-
tions after 1983. Under such plans, employers contribute « specified
teegut 10 2 fund that provides 13 weeks of vacation every $ years
fo “Senior Group” employees (the one-half of the employees with
longest continuous service) and 3 weeks, in addition 10 regular va-
cation, every $ years to “Junior Group” employees. New contracta
negotiated in 1983 in the aluminum and can industries continued to
Provide for extended vacations,

white-collar employees received personal leave, twice
the proportion of production employees with this bene-
fit. Most commonly, employees provided personal leave
were eligible for 2 to 5 days (table 10), averaging 3.8
days per year. A small Proportion of employees, pri-
marily in the white-collar group, were provided as much
Personal leave as they needed with no maximum num-
ber of days specified. In cases where personal leave was
Part of an “annual leave” plan (combined vacation and
Personal leave) and could not be shown separately, it
was reported as vacation time. The survey did not cover
the extent of informal personal leave.

Short-term disability benefits

Workers may be protected against loss of income due
to a short-term disability through paid sick leave, usu-
ally providing 100 percent of normal earnings, or acci-
dent and sickness insurance, commonly providing 50 to
70 percent of earnings. Nearly one-fourth of the workers
had both types of Protection. Chart 3 shows that acci-
dent and sickness insurance was Most often provided
to blue-collar workers; nearly one-half of all blue-col-
Jar workers in 1982 had this insurance alone, and an-
other one-fifth had it in combination with a paid sick
leave plan. In contrast, sick leave was more often a



Table 8. Paid holidays and vacations: Average number of
days for full-time participants, medium and large firms,
1982

1 Profes-
1 sionat | Techni-
and | cal and | Produc-
Item te os |eaminis clerical tion par-
Pants trative | partici- | ticipants
| partici- | pants
[Pants
T
Paid holidays .. 100 | 102} 961} 101
ty Paid vacation by length of service:
6 months 3.3 44 40 24

88 | 103 95 76
104 1 11.0 | 104] 10.4
124 | 132 | 128! 119
157 | 163 | 158 | 153
181 | 187 | 185 | 17.7
20.5 21.0 20.6 20.2
223 | 227 | 225 | 219
228 | 233 | 230) 225

* The average (mean) was essentially the same for longer lengths of
service,

NOTE: Computation of average included half days and excluded
workers with zero holidays or vacation days.

Table 9. Paid vacations: Percent of full-time participants by
length of service required to take vacation, medium and
large firms, 1982

! Profes-
! sional | Techni-
and | cal and | Produc-
All ars clerical |tion par-
rative

Length of service requirement | All
ticipants Pattici- | ticipants

partici: | pants
pants

Total 100 100 100 100
With service requirement 97 96 97 98
1 month 6 8 7 4
2 months .. 2 3 2 1
3 months .. 7) 10 9 5
4-5 months 2 2 2 1
6 months 4 46 51 33
7-14 months .. 1 1 2 1
1 year 38 25 25 51

Without service requirement

j
Service requirement not determin- H
able |

* Less than 0.8 percent.

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





Tabie 39. Private pension plans:' Percent of participants in
plans with early retirement by reduction factor for
immediate start of payments, medium and large firms,

1982

Profes-
sional | Techni-
, All par: | 2nd _ | Gal and | Produc-
Basis of reducing accrued benefit ticipants adminis-| clerical |tion par-
ive | partici- | ticipants
pants
Total . 100 | 100
Actuariat .. a 7 7 25
Arithmetic reduction for each year
prior to normal retirement age .....|__79 83 83 75
46 39 48 48
2 4 2 1
7 8 7 6
1 1 2 1
6 6 9 4
2 2 2 2
7 8 1 5
1) ie) 1) 0
16 7 13 21
3 2 3 3
ie) 1 Q 1
1 iv) e) 2
7.3 or more 1 ~ io) 1
Percentage varies by service 3 10 3 0
Percentage varies by age* .. 30 34 32 27
Data not available ... Q - - 0)

* Excludes supplemental pension plans.

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

* ‘Less than 0.5 percent.

* The rate of reduction per year varies by age bracket, sometimes in
approximation of an actuarial table. For example, benefits may be re-
duced by 6.7 percent for each year between age 60 and the plan's normal
retirement age, and by 3.3 percent for each year retirement precedes age
60. Also includes some plans which reduge benefits arithmetically for
each year immediately below normal retirement age and actuarially below
a specified age, usually 55.

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

43

Table 40. - Private pension plans:' Percent of full-time
participants by provisions for disability retirement, medium
and large firms, 1982

Profes-
sional | Techni-
and | cal and | Produc-

Characteristic eipaats | @siinis-| clerical |tion par-
trative | partici- | ticipants
partici- | pants
pants

Total with disablity retirement
benefits 89 90 86 ot

Minimum requirements for
disability retirement

Total .. 100 | 100 | 100 | 100

No age or service 16 17 22 13

Age only io) io) 1 io)

Service only .. 56 45 a 69

Age and service . 8 5 8 9
Meets qualification for long-term

disability benefits .. 20 34 28 9

Benefit provisions

Total .. 100 100 | 100 100

immediate disability retirement? 66 49 50 82

Unreduced norma! formula 51 38 38 63

Reduced norma! formula’ .. 8 6 7 10

Other than normal formuta® 7 5 5 8

Deferred disability retirement 34 51 50 18

With benefits based on:

Service when disabled 3 4 5 2
Service plus credit to early

retirement date or later 30 46 44 15

1

Service with some credit

* Excludes supplemental pension plans.

? Less than 0.5 percent.

> Immediate disability pensions may be supplemented by additional al-
fowances until an employee reaches a specified age or becomes eligible
for social security.

* The disabled worker's pension is computed under the plan’s normal
benefit formula and is paid as if retirement had occurred on the plan's nor-
mal retirement date, based on years of service actually completed.

* The disabled worker's pension is computed under the pian’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 flat amount benefits, dollar
amount formulas, percent of unreduced normal benefits tess social secu-
fity, and percent of earnings formulas both with and without social security
offsets.

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



percent). Health plans included limits on coverage, how-
ever, through deductibles, coinsurance, or ceilings on
benefits.”

Unlike most other employee benefits, there were few
differences in health insurance incidence among em-
ployee groups. Production workers, however, were
more likely to have coverage for vision care and less
likely to have coverage for physicians’ office visits and
private-duty nursing. Dental coverage was more preva-
lent in health benefits of professional-administrative
employees.

The various categories of medical care are covered
under 1 of 3 benefit arrangements: Basic benefits only,
which generally have no deductible or coinsurance pro-
visions; major medical benefits only, which usually have
both deductible and coinsurance provisions; or basic
benefits plus major medical. The most expensive items
(hospital care, surgical care, and diagnostic X-ray and
laboratory services) were most commonly covered by
an arrangement that offered basic coverage plus sup-
plemental coverage under major medical benefits. Cer-
tain categories of medical care, such as private-duty
nursing, visits to a physician’s office, and prescription
drugs, usually were covered only under major medical
benefits. Dental and vision care were almost exclusively
covered as basic benefits.

Hospital coverage. The most costly component of
health care is that provided by a hospital. Nearly one-
half of all personal health care expenditures in the United
States are for hospital care.’ Virtually all of the partici-
pants in health plans analyzed in this study received
coverage for hospital expenses; nearly nine-tenths had
these expenses covered, at least in part, by a basic bene-
fit. Of those that received basic hospital coverage, most
were in plans that paid room and board expenses up to
the semiprivate rate (table 20). By paying the semi-
private rate, rather than a specified dollar amount per
day, the plan automatically provided some protection
against rising hospital charges.

Nine-tenths of the participants in basic hospital plans
had limited duration of coverage. Slightly over
seven-tenths had plans which specified the maximum
number of days covered per confinement, most com-
monly 120 or 365 days. Most of the remaining plans
limited the duration of coverage by specifying a maxi-
mum dollar amount per confinement.” The great ma-

"The deductible is a specified amount of medical expense that an
insured person must incur before benefits will be paid by the plan.
Coinsurance is a provision where both the (insured) participant and
the insurer share, in a specified ratio, the health care expenses result-
ing from an illness or injury. The coinsurance percentage is the share
paid by the plan.

° Health Care Financing Review, March 1983 (U.S. Department of
Health and Human Services, Health Care Financing Administration),
Vol. 4, No. 1, table 7, p. 18.

jority of hospital stays fall within these basic plan limi-
tations. Additional coverage was usually available un-
der a major medical plan for cases that exceeded these
limitations.

Surgical coverage. Like hospital room and board
charges, surgical benefits were most often covered by
basic benefits. Slightly more than one-fifth of partici-
pants, however, received payments for surgery only
under the cost-sharing provisions of a major medical
plan.

Nearly two-thirds of the participants with basic sur-
gical benefits were in plans with payments based on the
“usual and customary” charge for the procedure per-
formed (table 21). The remainder were covered by a
schedule of payments for surgical procedures, listing
the maximum amount covered for each operation. Ba-
sic surgical payments under the “usual and customary”
approach were not necessarily more liberal than bene-
fits from plans using a scheduled allowance for each
procedure. Some plans paid only 80 to 95 percent of
the “usual and customary” charge as the basic benefit.

Major medical coverage. Major medical benefits, pro-
vided to nine-tenths of the health insurance participants,
generally covered a wide range of medical services both
in and out of the hospital. There are two types of ma-
jor medical plans: One type supplements basic benefits
by covering expenses which exceed basic benefit limi-
tations or by covering expenses not paid by the basic
plan; the other type is comprehensive and stands alone
without basic plan coverage. About three-fifths of the
participants with major medical benefits had the sup-
plemental coverage and the remaining two-fifths had
the comprehensive coverage."

With very few exceptions, major medical benefits
were not paid until the participants paid a certain amount
of the expenses, the deductible portion. The deductible
amount was usually $100 or less per insured person,
payable each year (table 22). Its purpose was to keep
the premium cost down and discourage unnecessary use
of medical services.

Once the worker had met the deductible requirement,
the plan paid a specified percentage (coinsurance) of
incurred expenses. Nine-tenths of the participants were
in plans that paid 80 percent of expenses, with the re-

This limitation was commonly found in “comprehensive major
medical plans.” These plans usually covered hospital expenses in full
up to a specified dollar amount per confinement (typically between
$2,000 and $5,000) and 80 percent thereafter. For this study, the full-
coverage portion was treated as a basic benefit and the 80-percent
portion as major medical. -

"Comprehensive major medical plans can be broken down into
strict and modified varieties. All expenses covered are subject to the
deductible and coinsurance provisions under the strict version whereas
the modified version might cover hospital, or hospital and surgical,
expenses in full up to a specified dollar amount without the applica-
tion of a deductible. (Also see footnote 10.)



i three percent of all participants
tinWe"récéiving benefits for 6 months, as long
iidifieéd tinable to work. Although this pro-
faitly: consistent in all three employee
§ ‘groUupssithié percentage of white-collar participants cov-
pio 1 year of more was considerably lower (0
percent)” than among production-worker participants
(18: percent).
“Accident and sickness insurance plans usually require
an initial waiting period before payments are made from
the plan (often 7 days after the worker becomes sick
or injured). Nevertheless, workers frequently receive
payments immediately since many plans waive the wait-
ing period if the illness or injury results in hospitaliza-
tion or if absence is due to an accident. Also, workers
with sick leave often can use it to cover the waiting
period. For some employees, accident and sickness in-
surance is coordinated with sick leave and begins the
day after sick leave runs out,

Workers in two States, New Jersey and New York,
are covered by mandatory temporary disability insur-
ance plans that are partially employer financed. Both
of these State plans pay benefits based on a percentage
of the workers’ earnings for up to 26 weeks with a limit
on the weekly benefit ($95 in New York and $145 in
New Jersey in 1982).

Long-term disability insurance

Long-term disabilty insurance (LTD) continues the
income of employees during extended periods of dis-
ability. Generally, LTD begins after sick leave and ac-
cident and sickness insurance are exhausted and con-
tinues as long as the employee remains disabled, or until
retirement age. If disabled after age 60, however, LTD
benefits usually continue for 5 years or age 70, which-
ever is earlier.

Thirty-three percent. of the employees studied were
Participants in plans fully funded by the employer; an-
other 10 percent had plans requiring employee contri-
butions. Since the amount of LTD coverage almost al-
ways varies by earnings, so also does the cost to the
employee. The rate was usually under 1 percent in plans
charging a flat percent of earnings.

The degree of Participation varied widely among the
three employee groups, from three-fifths of profes-

“Both States permit an employer to substitute a Private plan for the
State plan if the benefits provided are equivalent or more liberal. Ia
New York, many employers agree to pay the employee's share of
Plan costs. California and Rhode Island also have mandated tempo-
rary disability insurance plans, but these plans require no employer
contribution and, thus, are not included in this survey.

sional-administrative workers and one-half of the tech.
nical-clerical workers to about one-fourth of the pro-
duction workers.’ However, many employees not cov-
ered under LTD are eligible for an immediate disabil-
ity pension through their retirement plan; 49 percent of
the employees were covered by immediate disability
retirement provisions and 43 percent were covered by
LTD insurance.

Long-term disability benefits were usually a fixed
percent of monthly pay integrated with payments from
social security and other government programs such as
workers’ compensation. Almost two-thirds of the par-
ticipants were guaranteed LTD payments of 50 to 60
percent of earnings in effect when work ceased due to
disability, subject to maximum payment limitations and
ceilings on disability income (table 18).

Slightly over one-fifth of the Participants were in
plans that provided a benefit which was not a fixed
percent of earnings, but was either a variable percent-
age of earnings or a scheduled dollar amount depend-
ent on earnings, length of service, or length of disabil-
ity. Production employees were two times as likely to
be covered under these formulas as white-collar em-
Ployees (34 compared with 17 percent).

For seven-tenths of the participants, LTD benefits
were limited by plan maximums, by ceilings on income
during disability, or by a combination of both. Since 26
Percent of the production-worker Participants had
scheduled dollar benefits, this group was less likely to
have plan maximums than the white-collar group. Plan
maximums commonly ranged from $1,500 to $4,000 per
month. Ceilings on disability income affected benefits
only if the amount payable from the LTD plan plus
income from other sources, such as rehabilitative em-
ployment and family social security payments, exceeded
a specified percentage of predisability earnings (fre-
quently 70 to 75 percent).

Health insurance

Almost all of the workers covered by the survey
were provided health insirance. Nearly three-fourths
had health plans totally financed by their employer and
nearly one-half also received noncontributory coverage
for their dependents.

Virtually all of the Participants in health plans were
covered for most categories of expenses related to hos-
pital and medical care (table 19). The only exceptions
were dental care (covering 68 percent of the partici-
Pants), extended care ’ (62 Percent), and vision care (22

“For an indication of the growth of long-term disability coverage
during the 1970's, see Mitchell Meyer, Profile of Employee Benefits:
1951 Edition (New York, The Conference Board, Inc., 1981), p. 24.

7 Extended care includes medical care provided by a home health
care agency or by a convalescent facility with rehabilitative and re-
Storative care. This care is usually provided to a Patient who was
Previously hospitalized, but is recovering from an iliness and no longer
in need of the care provided by a general hospital.



Section C questions are designed to identify and de-
scribe the benefit provisions of covered expenses in sec-
tion B that are subject to deductible, coinsurance,
and/or maximum benefit provisions. This section con-
sists of 15 sets of seven questions. One set of questions
is completed for each covered expense, or group of
covered expenses, with identical deductible, coinsur-

ance, and maximum benefit provisions. In the first ques-
tion of each set, a group of expenses with common pro-
visions is identified. The remaining six questions give
the benefit provisions for the group. Additional sets of
questions are completed until the benefit provisions of
all covered expenses have been described.



Table 33. Life insurance: Percent of full-time participants in
plans with flat dollar Insurance by amount of basic
insurance, medium and large firms, 1982

Amount of insurance

Profes-
sional | Techni-
‘and. | cat and | Produc-
erat. |adminis-| clerical |tion par-

pants trative | partici | ticipants
partici | pants

Total

Less than $2,000 ..
$2,000-$4,999
$5,000-$9,989
$10,000-$14,999
$15,000-$19,999
$20,000 and over ..

100 100 100 | 100

6 4 4 6
2t 2t 20 a
32 31 35 32
31 30 32 31

3 4 2 4

7 10 7 6

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

tals.

Table 34. Life insurance: Percent of full-time participants in
basic life insurance plans by effect of retirement on
coverage, medium and large firms, 1982

Effect of retirement

Total

Insurance continues®
Continues for life
Continues in full
Reduced once
Reduced more th:
during retirement

Ceases during retirement ..

Insurance discontinued immediately .

Profes-

sional | Techni-

and | cal and | Produc-

Bipbnts [28tinis-| clerical | ion par-

trative | partic | ticipants

partici- | pants

pants

too | 100 | 100
eo | 66 | 64 | 62
ez | 64 | 63 | 61
3 5 4 2
3s | 31 | aa | 37
24 | 28 | 25 | 22
1 1 1 2
as | a4 | ae | 38

* Includes plans in which coverage is fully retiree paid, and plans which
accumulate permanent, or paid-up, amounts of insurance through the con-

tributions of active employees.

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

tals.

39

i
|



Table 17. Accident and sickness insurance: Percent of full-time participants with benefits based on percent of
earnings formula by maximum weekly benefit, medium and targe firms, 1982

Maximum weekly benefit
No
Type of payment Total | Total | Less | $80 | $100 | $120 | $140 $160 ; $200 | $250 | $900 | maxi-
with | than | to {| to | to to to to to or | mum
maximum| $80 | $99 | sito | $139 | $159 $199 | $249 | $299 | more
All participants
Total .. 400 70 3] 19 3 5| 14 3 | 10 3] 30
Fixed percent of earings 1 70 3 | 19 3 si 4 a} 10 3 | iW) 21
50-54 . 35 30 3 | 417 1 1 4 1 2 1 1 5
55-59 . 1 1 - - 0) -. 0 - - -|o
60-64 . 24 16 - 0 0 2 riod e1] 0 5 8
65-69 .. 21 7] o 11 0 2 a, 1 21 0 3 3
70 of more 10 6 - 1 1) 0 1 - 1) 1 2 4
Percent of earnings varies 9} 0 - - - - - - - -1 0 8
Professional and administrative i
Total renee 100 et) 24 2 1| wf 3) 10 2/| 2] 33 i
Fixed percent of earnings . 84 66 | () 24 2 i 1: 3 1 2] 2 17
50-54 . 31 27 =; 3} 0 | 0 2 - 1 1 1 4
29 i8 ~ 0) 1) 1 - 1 9 1 5 a
18 17 () 1 1 0 e} 1 1 - 4 2
70 or more 6 4 -1 0 1 -| oO | - - 1 3 1
Percent of earnings varies wei] 0) - - - - - | - - -| 0 16
Technical and clerical
Total 100 67 2| 2 3 4| 15 2 7 a| im] 33
Fixed percent of earnings .. 90 67 2) 2 3 44 15 2 7 3) 0] 23
50-54 . 34 30 | () at 1; 0 5 -1 0 1 2 4
55-59 (9) 19] = iy) - - - - ~ 1)
60-64 25 14 - | 0 0) 1 4 1 5 1 i
65-69 24 18 1 1 1 1 wv 0 2 4 2 3
70 oF more ... 9 5 - re) 2 0) oO - 1 1 1 4
Percent of earnings varies ... 10 1 - - - - - - - - 1 10
Production
TOtD ene 100 74 6| 14 3 a| 1s ajo 3| 1] 2
Fixed percent of earnings 96 74 6| 14 3 8 | 15 4 | 1 3) 10 | 22
50-54 . 38 31 6] 12 1 2 5 2 3 1 1 7
55-59 .. 1 1 - - - ia) - 1 - - - iv)
60-64 .. 2i 16 -1o | 0 2 2 1 6] @ 4 5
65-69... a1 18 QO 0 iV) 3 8 2/ 0 4 4
70 or more . 13 7 - 1 1 1 1 ~) 0 1 1 6 i
Percent of earnings varies .. 4 ) - - - - - - - -10 4 |
Less than 0.8 percent. NOTE: Because of rounding, sums of individual items may not

equal totals. Dash indicates no employees in this category.

27


Tabie 41. Private pension plans:' Percent of full-time
participants by provision for credit for service after age 65,
medium and large firms, 1982

Table 42. Private pension pians:' Percent of full-time
participants by vesting provisions, medium and large firms,
1982

Profes- | Profes-
sional | Tech| sional | Techni.
and | cal and | Produc- {and | cal and | Produc.
Type of credit ets adminis-| clerical | tion par- Provision apes adminis-| clerical | tion par.
trative | partci- | ticipants partic. | ticipants
partici- | pants ants
pants
100 100 100 Type of vesting schedule
No credit for service 58 66 68 49 Total? 100 100 100
Pension deferred with no change|
in amount | s2 | se | 6 | 4 Cliff vesting? with full vesting after:
Pension def 10 years of service at any age... 66 | 62 | 61 | 74
actuarially .. 4 5 5 3 10 years of service after
Pension deferred, but increased age 22 2 | 2 | 2 | 4p
by percent per additional year Other 2 1 2 2
of service? . “ 2 2 1 1
Pension begins at ag 1 iv) 1 iv) Graduated vesting,’ with full vesting
after:

Credit for service* a2 | sa | 92] 51 15 years of service* 4 5 3
All service credited 2 | te | 2 | 30 Other 8 alon 8
Service credited to specified

maximum age se | 18 | 41 | 20 Provision for earliest receipt of
Service credited to specified fully vested benefit
maximum years of service .. 1 1 1 1
O) ola - Total 100 | 100 | 100 | 100
‘ret
* Excludes supplemental pension plans. Powe at normal retirement age 2 2 1 3
* The pension amount computed at age 65 is increased by a specified
percent (not part of the benefit formula) for each year the employee re —pavauieeror to normal retement
mains active. . aoe
> Less than 0.5 percen f
‘Additional service is included in the benefit formula. Mt spostion ooo agcaaamweni’| 72 | 72 | 73 | 72
* Includes participants in plans in which all service is credited and pen- sence resem Nl 2s | 26 | a | os
sion is actuarially increased for later retirement date,

NOTE: Because of rounding, sums of individual items may not equa! to-
tals. Dash indicates no employees in this category.

Excludes supplemental pension plans.

* Because plans may adopt alternative vesting schedules, sums of par-
ticipants covered by individual vesting schedules may exceed 100 percent.

* Under a cliff: vesting schedule, an employee is not entitled to any
benefits acorued under a pension pian untit satistying the requirement for
100 percent vesting. The Employee Retirement Income Security Act
(ERISA) specifies. 10 years as the maximum requirement for this form of
vesting.

“ Includes both participants in plans containing vesting schedules more
liberal than ERISA standards and, for graduated vesting, in plans adopting
other ERISA standards:

* Graduated vesting schedules give an employee rights to a gradually
increasing share of accrued pension benefits, determined by years of serv-
ice and eventually reaching 100 percent vesting status,

“ Participants in this group were in plans that adopted ERISA's longest
time span for graduated vesting which calls for 25 percent vesting with 5
years of service, with the vested percentage increasing 5 percentage
Points each year for 5 succeeding years, then 10 percentage points for
each of the next § years, Thus, 15 years is the maximum requirement for
this form of vesting

|



Table 16. Accident and sickness insurance: Percent of full-time participants by type and duration of
Payments, medium and large firms, 1982—Continued

Maximum weeks of coverage
T

Type of payment Less Greater | Varies
Total | than | 13 | 14.25 | 26 | a7st} se | than’! by
13 52 | service
Technical and clerical
Fixed percent of earnings-Continued
70 or more 7 ° Q 1 5 - 0 - 1
Percent of earnings varies 8 - ) i) 2 0) 4 - 2 i
By sevice . 5 - - - 2 ~ 2 - 1 |
By length of di 2 - 0 Y iv) iv) 1 - ro) |
By both service and k
disabitity .. 2 - - - () - - - 1
Fixed weekly dollar benefit . 12 QO 3 a) 8 re) 1 - 1
Less than $60 4 - 1 - 3 - - - 10)
$60-$79 2 v) 1 19) 1 - Q - -
$80-$99 2 - 1/1 0 1 - ~ - -
$100-$11 2 - 0) - 2 - } - 1
$120-$139 1 - ie) - 1 a) QO - ~
$140 or more . 1 - - - 1 - to) - 0 |
. Weekly dollar benefit varies 9 - 1 - 3 QO 2 1) 2
By eamings 9 3 0 2] 0 2
By service or length of
disability ... QO - iv) - re) - - - oO
Production
All types .. 100 1 13 5 50 2 18 () W
Fixed percent of earings .. 32) () 3 4 20 1 1 0) 3
50-54 13 | ¢) 1 2 8 - - - 1
55-59 0) - - - 0) - - ~ | -
60-64 i) 1 1 4 0) 0) 1
65-69 7 0 1 > 5 ) Q) 0 | 0
70 or more 4 - 0) 0 2 - - - | 1
Percent of earnings varies .. 1 - - Q - - - f 4
By service QO - - - a) - - - | Q
lity 1 - - - = - - - 1
By both service and length of H
disability . Of - - - |o - - nm)
() 9 1 24 1 4 ~ | 2
0) 5 yn 3 iv) i) - t -
Q 2; 4 2 0) 0 - -
- 1: 4) 2 - - - -
- Ore s C 1 - t
$120-$139 ) Oro $s Q 1 > lo
$140 or more . iv) O71 o 4 9) 2 ~ | 2
Weekly dollar benefit varies 27 - rio. 8 0) 14 QO | 4
By earnings .. 26 - 1 - Q) 13 Of 4
By service or length of
disability ... 2 - 1 - 1 - (0) - | 0
" Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may
not equal totals. Dash indicates no employees in this cate.
gory.



the workers covered by accident and sickness insurance
had a benefit based on earnings (commonly 50 to 70
percent) for a period from 13 to 52 weeks. Most em-
ployees also had some protection for extended income
loss due to disability; 43 percent had long-term disabil-
ity insurance, and 49 percent were covered under pri-
vate pension plans that provided immediate disability
retirement benefits.

Virtually all of the participants in health insurance
plans were covered for most categories of expenses re-
lated to hospital and medical care. Life insurance was
provided for nearly all employees, most commonly for
an amount equal to annual earnings, rounded to the
next $1,000.

Eighty-four percent of the employees in the survey
were covered by private retirement pension plans. Bene-
fits were most frequently based on earnings during the
last years of employment. Common eligibility require-
ments for normal retirement were: Age 65 with no
length-of-service requirement, age 62 with 10 years of
service, and 30 years of service with no age require-
ment. Virtually all covered employees could retire early
with a reduced pension, provided they fulfilled mini-
mum age and/or service requirements (most commonly,
age 55 with 10 or 15 years of service).

Funeral leave, military leave, parking (provided at
no cost or below commercial rates), and full or partial
‘defrayment of educational expenses were available to
at least three-fifths of the employees. Fewer than one-
fifth of the employees were eligible for stock purchase
plans, company automobiles for private use, nonpro-
duction bonuses, and noncash gifts.

Work schedules

Forty-hour straight-time weekly work schedules ap-
plied to 84 percent of the employees covered by the
survey (table 2).’ Twenty percent of the professional-ad-
ministrative employees, 29 percent of the techni-
cal-clerical employees, and 6 percent of the production
workers had shorter workweeks. Less than 2 percent
of the work force was scheduled to work other than a
5-day week.

Paid lunch and rest periods

Nine percent of the employees received formal paid
lunch periods, and 76 percent were provided formal
paid rest time, for example, coffee breaks and clean-up
time (tables 3 and 4). Both benefits were more common
among production employees than among the two other
occupational groups. The incidence of paid rest time
ranged from 61 percent for professional-administrative
employees to 84 percent for production employees.
Only 3 percent of the white-collar workers had paid

Work schedule data, limited to straight-time hours, included lunch
and rest periods only if they were paid. Regularly scheduled over-
time was excluded from work schedules in this survey.

lunch time compared to 16 percent of the production
workers. The study did not cover informal
arrangements.

Paid rest time, averaging 25 minutes a day for each
occupational group, was provided most commonly as
two daily breaks of 10 or 15 minutes each. Production
employees who were covered by paid lunch plans usu-
ally received 20 or 30 minutes a day, averaging 24 min-
utes. The 3 percent of white-collar workers eligible av-
eraged 33 minutes of paid lunch time each day.

Paid holidays

Virtually all full-time employees in each occupational
group were provided paid holidays, averaging 10 days
per year (tables 5 and 8). Extended holiday plans, such
as the Christmas-New Year’s Day period provided in
the auto industry, floating holidays, and “personal holi-
days,” such as employee birthdays, were included in
the holiday plans reported. The average number of paid
holidays for production workers fell by 0.4 days from
1981 to 1982 (to 10.1 days), reflecting employee
givebacks, primarily in the auto industry.’

When a holiday falls on a scheduled day off, such as
a Saturday or Sunday, another day off was regularly
granted to 88 percent of the white-collar‘employees and
80 percent of the production employees (table 6). An-
other 6 percent of the white-collar employees and 11
percent of the production employees received either
another day off or an additional day’s pay, depending
upon the day on which the holiday falls. Most of the
remaining participants regularly received an additional
day’s pay in lieu of the holiday.

Paid vacations

After 15 years of service, full-time employees com-
monly received 20 days of paid vacation annually (ta-
ble 7). Length-of-vacation provisions averaged 8.8 days
after 1 year; 15.7 days after 10 years; and 22.3 days after
25 years of service (table 8). Plans covering profes-
sional-administrative employees generally’ provided
more vacation days than those for other employees.
Fifty-five percent of the professional-administrative em-
ployees, for example, became eligible for at least 15
days of vacation after 5 years of service; this compared
with 34 percent of the production employees. Virtually
all white-collar employees received their regular sala-
ries or earnings during vacation . periods. About
seven-eighths of the production employees received
such vacation pay; 13 percent were provided vacation
payments based on a percentage of annual earnings; and

Collective bargaining agreements reached in 1982 by automobile
manufacturers and the United Auto Workers eliminated 9 annual paid
personal holidays plus 1 day of extra holiday pay each December.
In a related move, 1 paid floating holiday in December and 6 to 9
supplemental vacation days were eliminated for auto industry sala-
ried workers.



Table 3. Paid lunch time: Percent of full-time employees by
minutes of paid lunch time per day, medium and large firms,

1982
T
Profes-
sional | Techni-
Alteme |_8nd_ | cal and | Produc-
Minutes per day loyees |20minis-| clerical | tion em-
Ploy trative | employ- | ployees
employ-} ees
ees
Total 100 100 100 100
Provided paid lunch time 9 3 3 16
Under 20 minutes 1 0) 1 1
20 MINUtES nn . | 4 (0) a) 8
Over 20 and under 30 minutes ..} (°) - - 1
30 minutes ..... 4 1 1 G
Over 30 minutes .. 1 1 Oo
Not provided paid lunch time ot 97 97 84

* Less than 0.5 percent.

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

Table 4. Paid rest time: Percent of full-time employees by
minutes of paid rest time per day, medium and large firms,

1982
Profes-
sional | Techni-
‘Attem- |__ 2nd | cal and | Produc-
Minutes per day ployees |@0minis-| clerical tion em-
trative | employ- | ployees
employ-} ees
ees
Total .. 100 | 100 | 100 | 100
Provided paid rest time 76 61 | 76 84
Under 15 minutes 3 1] 4 4
15 minutes .. 5 5} 7 3
Over 15 and under 20 minutes. 1 ¢) 1 1
20 minutes . 27 7 18 35
‘Over 20 and 4 2 i 6
30 minutes .. 34 34 | 46 2g
Over 30 and under 40 minutes...) (') oO 7 0 1
40 minutes . 1 rto4 1
Over 40 minutes 2 - bP 4
i
Not provided paid rest time .. 24 so | 24 16

* Less than 0.5 percent.

NOTE: Because of rounding, sums of indi

idual items may not equal to-

tals. Dash indicates no employees in this category.



Appendix B: Availability of
the Survey’s Data Base

The tables published in this bulletin present the ma-
jor findings of the employee benefits survey; results of
additional review of various benefit plan provisions ap-
pear in the Monthly Labor Review. However, these cover
only a portion of the employee benefits information
collected. Persons interested in all provisions of a par-
ticular benefit studied during the annual survey can
purchase a set of magnetic tapes containing the survey’s
data base through The BLS Office of Wages and In-
dustrial Relations, Washington, D. C. 20212. The charge
for furnishing the data is limited to the cost of produc-
ing the tapes and preparing supporting documentation.

For major benefit items, the BLS survey obtained
plan provisions and employee participation data for each
of three employee groups (professional-administrative,
technical-clerical, and production workers). Informa-
tion on employer costs was not collected. The magnetic
tapes, which consist of a control file and plan data files
for each benefit area, may be used to derive national
estimates, similar to those published in the bulletin, for
any item on the data base. The tapes cannot yield reli-
able estimates for individual industries or geographic
regions. Full documentation accompanies the tapes, in-
cluding examples of estimating formulas. Although Bu-
reau staff will respond to any questions concerning the
content of the tapes, technical assistance in developing
estimates cannot be provided to purchasers due to the
heavy workload associated with the survey program.

Data users can purchase tapes with details of plans
for one benefit area or all, ive., health, life, accident and
sickness, or long-term disability insurance; private re-
tirement pensions; and paid time-off provisions—lunch
time, rest periods, holidays, personal leave, vacations,
and sick leave. (Table 50 presents all of the information’
that was collected on the other benefits surveyed.) The
plan data file contains provisions for each plan which
was reported and for which usable information was
available. However, plan identification numbers on the
tape are scrambled (and other identifying information
is removed) to protect the confidentiality of respond-
ing establishments.

Data users also can purchase the control file, which
contains establishment information required to produce
estimates from the plan data. Control file records in-
clude establishment sample weights and size codes; geo-
graphic, industrial, and employee group classification

54

codes; and the number of workers in the employee
group. The control file also lists all benefit plans offered
in each establishment, with the number of plan partici-
pants in each employee group. A plan is listed on more
than one control file record if it covers employees in
more than one establishment. Although plan identifica-
tion numbers on the control file are scrambled, the same
scrambled numbers appear on the data file so they can
be matched to make estimates. Because establishment
schedule numbers on the control file are scrambled dif-
ferently for each employee group, it will not be possi-
ble to link together plans offered to different employee
groups within an establishment. .

Benefit provisions obtained from plan documents are
recorded in coding manuals for insurance and pension
plans and then entered on the plan data file. A set of
coding manuals and instructions for completing them
are supplied to tape purchasers for interpretation of data
on the file. Paid time-off provisions are reported on
collection forms which are also provided to tape
purchasers.

The analysis-of insurance and pension plans is ex-
tremely detailed. The following list of health insurance
plan provisions included on the data base gives an in-
dication of the breadth and depth of the information
available on the magnetic tapes. Other insurance and
pension analysis is similarly detailed.

Health insurance data base
Plan Participation Requirements
When plan participation begins
Waiting period by type of benefit
Maximum age for participation

Employee Contribution for Employee and
Dependents’ Benefits ~
Percent paid or monthly contribution

Section A
Funding Media for Major Categories of Health
Care -

Hospital benefits

Surgical benefits

Medical benefits

Major medical benefits

Dental benefits



Table 25. Health insurance: Percent of full-time Participants
in plans with dental benefits by deductible provision,’ .
medium and large firms, 1982

Protes-
sional | Techni-
and | cal and | Produc:
adminis: | clerical |tion par-
trative | partici- | ticipants
Partici- | pants
Pants |

All par-
ticipants

‘Type of deductible®

Total . 100 100 100 100 i

Subject to basic dental deductible ..|_ 60 63 65 85

Yearly deductible 49 54 62 45

1 1 1 1
2 25 20 20
2 1 3 2
22 24 24 20
3 3 4 2
10 9 13 8

1 2 2 1 i
8 7 10 8
e ia) ) a

Subject to major medical

deductible 7 8 8 6
No deductible 33 29 27 39

Excludes separate deductibles for orthodontic procedures.

* Amount of deductible described is for each insured person. However,
many plans contain a maximum family deductible, in some plans, the indi-
vidual and family deductibles are identical.

> Less than 0.5 percent.

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

Table 26. Health insurance: Percent of full-time participants in plans with dental benefits and in plans with orthodontic
coverage by maximum amount of insurance, medium and large firms, 1982

Yearly maximum for all procedures excluding orthadontia Lifetime maximum for orthodontia
: Professional j Professional . i
Dollar amount i All and | era) | Production All and angel | Production
Paricipants administrative] Coticicants | Pattcipants | participants | administrative] SPA. C°NC@! | oricipants
| Participants ; Parcipat Participants | Particle
Total | 100 100 100 100 100 100 100 400
Maximum specified i 81 90 88 93 96 96 96 96
Less than $500 1 1 1 1 1 1 1 to)
$500 9 8 10 10 23 24 23 22
2 2 1 2 8 5 5 n
24 27 23 23 20 27 20 18
1 1 1 1 13 10 7 18
4 40 39 48 28 25 32 2
3 3 4 2 2 1 4 1
5 5 6 4 2 2 3 1
3 4 4 3 1 1 1 1
No maximum ..... 9 10 12, 7 4 4 4 4
+ Amount of maximum specified is tor each insured person. NOTE: Because of rounding, sums of individual items may not equal
? Less than 0.5 percent. totals.



Table 27. Health insurance: Percent of full-time participants
in plans with vision benefits by extent of benefits, medium

and large firms, 1982

Protes-
sional | Techni-
‘All pare |_ 29d | eal and | Produc-
Benefit fee eats adminis-| clerical | tion par-
icin trative | partici- | ticipants
partici- | pants
Pants
Total 100 | 100 | 100 | 100
Eye examinations only 15 25 26 7
Examinations and eyeglasses . 8 9 10 7
Examinations, eyeglasses, and
contact lenses 67 54 45 73
Orthoptics only" 6 8 10 3
Other combinations . 5 4 2 3

"Exercises to improve the function of the eye muscles.

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

tals.

Tabie 28. Health Insurance: Percent of full-time participants in plans with mental health benefits by extent of benefits,

medium and large firms, 1982

i Professional and adminis- | Technical and clerical Production
‘All participants trative participants participants participants
Coverage limitation
Hospital / Outpatient | Hospital j Outpatient | Hospital | Outpatient | Hospitat_ | Outpatient
care care care care care care care care
Total . 14 400 100 400 100 100 100 100
With coverage .. 99 st 99 94 99 94 99 89
Covered the same as other
linesses 56 7 59 5 56 7 55 8
Subject to separate limitations’ .. 43 84 40 89 44 87 44 80
Limit on days or visits 31 19 26 19 29 2t 33 18
Limit on dollars 15 63 a5 66 7 66 14 60
Major medica coinsurance .
limited to 50 percent 2 54 1~ 56 2 57 2 52
Other linfitations 8 13 7 12 8 12 7 13
Not covered 1 9 1 6 1 6 1 "W

‘The total is less than the sum of the individual items because
many plans had more than one type of limitation on mental health

coverage.

35



Appendix A: Technical Note

Scope of survey

This survey of the incidence and characteristics of
employee benefit plans covered private sector estab-
lishments' in the United States, excluding Alaska and
Hawaii, employing at least 50, 100, or 250 workers, de-
pending on the industry. Industrial coverage included:
Mining; construction; nianufacturing; transportation,
communications, electric, gas, and sanitary services;
wholesale trade; retail trade; finance, insurance, and real
estate; and selected services (table A-1).

Establishments which met the minimum size criteria
as of the reference date of the sampling frame were in-
cluded in the survey, even if they employed fewer
workers at the time of data collection. Establishments
found to be outside the industrial scope of the survey
at the time of data collection were excluded.

Table A-1 shows the estimated number of establish-
ments and employees within the scope of the survey
and the number within the sample actually studied for
each major industry division.

Occupational groups
Data were collected individually for the following
three broad occupational groups:

Professional-administrative:

Includes occupations that require a foundation
of knowledge in the theories, concepts, principles,
and practices of a broad field of science, learning,
administration, or management acquired through a
college-level education or the equivalent in pro-
gressively responsible experience. Above entry
levels, the exercise of a high degree of creativity,
originality, analytical ability, and independent judg-
ment to solve varied and complex problems in the
field of work is characteristic.

Technical-clerical:

Includes office and sales clerical, technical sup-
Port, protective services, and other such o¢gcupa-
tions that do not require full knowledge of a pro-

'For this survey, an establishment was an economic unit(s) which
Produced goods or services, a central administrative office, or an
auxiliary unit providing support services to a company. In manufac-
turing industries, the establishment was usually. a single physical 1o-
cation. In nonmanufacturing industries, all locations of an individual
company within a Standard Metropolitan Statistical Area (SMSA)
or within a nonmetropolits:: county were usually considered an
establishment.

50

fessional or administrative field of work or the ap-
Plication of a high level of creativity, originality,
analytical ability, or independent judgment. Job
performance skills are typically acquired through
on-the-job experience and/or specific training
which is less than that usually represented by a
baccalaureate degree. These skills include the ap-
plication: of a practical knowledge of established
procedures, practices, precedents, and guidelines.

Production:

Includes skilled, semiskilled, and unskilled trades;
craft and production occupations; manual labor oc-
cupations; custodial occupations; and operatives.

Excluded from the survey were executive manage-
ment employees (defined as those whose decisions have
direct and substantial effects on an organization’s
policymaking), and part-time, temporary, seasonal, and
traveling operating employees such as airline flight
crews and long-distance truckdrivers.

Benefit areas

Sampled establishments were requested to provide
data on work schedules and details of plans in each of
the following benefit areas: Paid lunch periods, paid
Test periods, paid holidays, paid vacations, personal
leave, sick leave, accident and sickness insurance, long-
term disability insurance, health insurance, private re-
tirement pensions, and life insurance.

BLS also collected data on the incidence of the fol-
lowing additional benefits: Funeral leave; military leave;
profit sharing plans; savings and thrift plans; stock bonus
plans; stock purchase plans; other stock plans; sever-
ance pay; employee discounts; noncash bonuses; non-
production bonuses; relocation allowances; recreation
facilities; subsidized meals; educational assistance; auto-
mobile parking; personal use of company-owned car;
and in-house infirmary.

Sampling frame

The scope of this survey was the same as that of the
Bureau’s 1982 National Survey of Professional, Admin-
istrative, Technical, and Clerical Pay (PATC). The list
of establishments from which the sample was selected
(called the sampling frame) was, therefore, the same as
that developed for the 1982 PATC. This sampling frame
was developed by refining data from the most recently .



Table 14. Pald sick leave: Average number of days at full
pay for full-time participants by type of plan, medium and

large firms, 1982

Profes- -
sional | Techni-
and | cal and | Produc-
All par- F
ttem all clerical | tion par-
ticipants partici | ticipants
pants
Paid annual sick leave' by tength of
service:
‘At 6 months zs} 205| 96) a6
At year .. 163/ 250] 136! 115
At years 204} 305| 187] 145
ALS years 254! 369) 239] 161
At 10 years 3i1/ 464] 309/ 190
At 15 years 361] 521] 365] 218
At 20 years 3a5| 554] 302] 233
At 25 years 403] 580) 407] 246
At 30 years? 403| 590} 412] 250
Paid per disability sick leave? by
length of servi

‘ALG months 424] sax] 272] 260
Atl year 46.6 63.2 33.1 30.14
At3 years s09| 636; 418] ga2
At 5 years 732| sea} 651| 622
At 10 years s72| 1010; a19| 74.1
At 15 years 1093 1162] 1036) 1055
At 20 years, 120.0] 1296) 1229! 1381
‘At 25 years 148.0) 1421] 1398| 1704
At 80 years? 1494! 1438] 1417! 171.0

* Employees eam a specified number of days per year. This number

may vary by length of service.

* The average (mean) increased only slightly for longer periods of serv-

ice.

* Employees eam a specified number of sick leave days for each ill
ness oF disability. 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.

23



Survey response

Each of the 36 combinations of occupational group
and work schedule or benefit area (e.g., health insur-
ance for production employees) was treated as an indi-
vidual survey and separate estimates developed for each.
This treatment facilitated the use of partially completed
establishment reports in the survey. Therefore, the ac-
tual number of responses for the survey varies for each
of the 36 combinations.

The following summary is a composite picture of the
establishment responses to the survey:

Number of establishments:

Insample .......0.. 002.2 e eee 1,516
Out of business and out of scope 39
Refusing to respond .... 152
Responding fully or partially . 1,325

There were two procedures used to adjust for miss-
ing data from partial schedules and total refusals. First,
imputations for the number of plan participants were
made for cases where the number of participants was
not reported (about 1 percent of all plans). Each of
these participant values was imputed by randomly se-
lecting a similar plan from another establishment in a
similar industry and region. The participation rate from
this plan was then used to approximate the num-
ber of participants for the plan which was missing a
Participation value but was otherwise usable.

For other forms of missing data (or nonresponse), an
adjustment was made using a weight adjustment tech-
nique based on sample unit employment. Under such a
techique, a model is assumed in which the mean value
of the nonrespondents is equal to the mean value of the
respondents at some detailed “cell” level. These cells
are defined in a manner that groups establishments to-
gether which are homogeneous with respect to the
characteristics of interest. In most cases, these cells are
the same as those used for sample selection. The spe-
cific weight adjustments used in this survey were cal-

justment for nonresponse. The general form of the es-
timator for a population total was:

n Y;
Y=yp —
: P;

1
Where n = sample size .
Y,= value for the characteristics of the it® unit
P;= the probability of including the it wnit in
the sample :

The estimation procedure was then the process of
estimating the appropriate employment or establishment
totals needed for each estimate and subsequently calcu-
lating the proportion, mean, or percentage which was
desired.

Reliability of estimates

The statistics in this bulletin are estimates derived
from a sample survey. There are two types of errors
possible in estimates based on a sample survey—sam-
pling and nonsampling. The “accuracy” of a survey re-

- sult is determined by the joint effects of sampling and

culated in four stages for each occupational group and *

benefit area combination. This allowed a maximum
amount of data from partially completed establishment
reports to be incorporated into survey estimates. For
example, data on the number of occupational group
employees in an establishment or participants in a plan,
or information on the existence of a plan could be used
even if the plan provisions could not be obtained.

Survey estimation methods

The survey design used an unbiased estimator (the
Horvitz-Thompson) which assigns the inverse of each
sample unit’s probability of selection as a weight to the
unit’s data. The estimator was modified to account for
a weight adjustment factor developed during the ad-

53

nonsampling errors.

Sampling errors occur because observations are made
from only a sample, not the entire population. Since
this survey was based on a probability sample, estimates
of sampling error for the survey estimates can be pro-
duced directly from the survey data after appropriate
procedures have been implemented. Sampling errors
for a limited number of the estimates published in the
bulletin are available in the detailed description of sur-
vey methodology and reliability noted below.

Nonsampling errors can be attributed to many
sources: Inability to obtain information about all cases
in the sample; definitional difficulties; differences in the
interpretation of questions; inability or unwillingness to
provide correct information on the part of respondents;
mistakes in recording or coding the data obtained; and
other errors of collection, response, processing, cover-
age, and estirnation for missing data. Through the use
of computer edits of the data and professional review
of both individual and summarized data, efforts were
made to reduce the nonsampling errors in recording,
coding, and processing the data. The nonresponse ad-
justment procedures are also a potential source of sur-
vey nonsampling error. To the extent that the charac-
teristics of the nonrespondents are not the same as those
of the respondents, nonsampling error is introduced in
the estimates. The magnitude of these and other non-
sampling errors is currently undetermined.

A more detailed description of survey methodology
and reliability may be obtained from the Office of Wages
and Industrial Relations, Bureau of Labor Statistics,
U.S. Department of Labor.



Contents |

|
}

g
§

Summary

Work schedules .

Paid lunch and rest periods .

Paid holidays . ..

Paid vacations

Personal leave ..

Short-term disability benefits
Sick leave plans .........
Accident and sickness insurance .

Long-term disability insurance ..

Health insurance ....
Hospital coverage .
Surgical coverage...
Major medical coverage .
Dental coverage .
Vision care .....
Mental health coverage
Selected special benefits ...
Employee contributions .
Funding medium ..

WOCWRMMOIIVIAARUUARBWDWWUH

Life insurance .
Retirement pension plan: 10
Private benefits and social security payments 10
Normal retirement . 10
Early retirement . 10
Disability retirement . 12
Postponed retirement 12
Postretirement pension increases . 12 |
Vesting ........ 6... cece e eee ee 12
Postretirement survivor benefits . 13
Preretirement survivor benefits . 13
Employee contributions ... 13
Plan participation requirements 13
Insurance plans ....... . 1
Private pension plans a. «14
Other benefits ... Sa 14
Charts:
Percent of full-time employees (or participants) covered, medium and large firms, 1982:
1. Paid time off : 2
2. Insurance and pension plans . 2
3. Short-term disability coverage: Type of plan 4
4. Private pension plans: Provision for coordination of pension with social security
benefits... 6... eee eee nee eee tenet e eect nee e eee e eee 11
Tables:
Percent of full-time employees (or participants), medium and large firms, 1982:
1. Summary: Participation in employee benefit programs .. 16 }
2. Work schedule: Number of hours scheduled per week . 16 |
3. Paid lunch time: Minutes per day . . 17 |
4, Paid rest time: Minutes per day ... 17 '
5. Paid holidays: Number of days provided each year . 18 H
6. Paid holidays: Policy on holidays that fall on regularly scheduled day off 18 |



Table. 38. Private pension plans:’ Percent of full-time

early retirement,’ medium and large firms, 1982

participants by minimum age and associated service requirements for

Profes- Profes-
sional |Technical sional |Technical
;_| Produc. | Produc-
a i-, “ a a All r. i
‘Age and service requirements? oes and ao and ce tion par-|| Age and service requirements’ toipants aoe and bole tion par-
tive par- | ticipants | eipants tive par- | ticipants | Scipants
ticipants ticipants
Total 100 100 100 100
Age 56 to 59 1 1 1 1
Participants in plans permitting 10 years’ service 1 (3) 1 1
early retirement 97 97 99 96 20 oF 30 years’ service 1 1 ) 1
No age requirement 5 9 5 3 || Age 60 .. 8 4 4 1"
Less than 30 years No service requirement 9) (9) 7) 1
service 0 1 1 ) 5 years’ service .. io) 6 = 0
30 years’ service 5 8 4 3 10 years’ service 4 2 2 7
More than 30 years’ 15 years’ service 2 2 1 3
service iv o o - 20 or more years’ service | (‘) (9) i) o)
Other service requirement .| (') - - 0)
Less than age 55 9 5 14 8
No service requirement QO QO oO oO 2 19] iW] 3
5 years’ service oO oO oO ie) 2 fequirement C) ie) QO 1
10 years’ service 3 2 6 1 5 years’ service oO - QO Oo
15 years’ service 2 2 3 1 10 years' service 1 - 0 2
20 years’ service 1 1 Oo oO 15 or 20 years’ service .. oO oO oO oO
25 years’ service . 4 o) 5 5
‘Sum of age plus service ... 10 9 7 "1
‘Age 55 63 68 67 58 Equals 70 or less 1 1 1 i
No service requirement 9 10 8 9 Equals 75 1 1 1 1
5 years’ service 4 9 5 2 Equals 76-80 .. 2 3 3 4
10 years’ service . 35 36 36 35 Equals 85 5 3 2 8
15 years’ service .. 10 9 14 9 Equals 90 o oO iv] -
20 years’ service 3 3 3 2 |
25 years’ service 0) o) 0) -__|[Participants in plans without early
Other service requirement . 1 1 1 || retirement 3 3 1 4

* Excludes supplemental pension pl

lans.

* Early retirement is defined as the point at which a worker could re-
tire and immediately receive accrued benefits based on service and
eamings but reduced for each year prior to normal retirement age.

° if a plan had altemative age and service requirements, the earliest
age and associated service were tabulated: if one alternative did not

42

specify an age, it was the requirement tabulated.
.

* Less than 0.5 percent,

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



¢°35, Private pension plans:’ Percent of full-time
piteibenes by method of determining retirement payments,
medium and large firms, 1982

Table 36. Private pension plans:' Percent of full-time
Participants by provision for integration or offset of social
security benefits, medium and large firms, 1982

Protes- Profes-
sional | Techni- sional } Techni-
at? All pa. | mis eesoal [ton pa Provision All bat | adminis-| clercal [tere
i me ‘conte | 20minis-| clerical | tion par- ov ‘pants |#4minis-| clerical |tion par
Basis of pay ticipants |"‘rative | partic {ticipants Neipants "trative | partic. | ticipants
Partici- | pants partici- | pants
pants pants
Total too | 100 | 100 | 100 Total 100 } 100 | 100 | 100
Terminal earings formula .. 52 cal 70 | 32 With integrated or offset formula 45 64 64 25
No alternative formula 27 39 | 4g 12
Terminal earnings alternative .. 6 9 7 4 Terminal eamings formula 40 58 88 at
Career earnings alternative 4 5 5 4 Integrated with social security|
Doliar amount alternative? 14 19 15 12 payment .. 7 13 9 3
Oftset by social security
Career earnings formula 15 23 16 12 payment? 33 45 50 17
No altemative formula 9 13 10 6 Based on service* . 24 34 39 "
Career eamings alternative .. iz) iy) 0 0 Not based on service* 8 cE tt 6
Dollar amount alternative? 6 9 5 5
Percent of contributions Other formuta | § 6 6 4
alternative ... 7) iv) - ro) Integrated with social security|
payment? 3 4 4 3
Dollar amount formula’ .. 30 5 13 52 Oftset by social security
No altemative formul 28 4 2 49 payment* 2 2 3 1
Dollar amount alternative? . 2 1 1 3 Based on service* 1 1 1 1
Percent of contributions Not based on service’ 1 1 2 °
altemative ) 0 ) 0)
Without integrated or offset formula.| 55 36 36 75
Percent of contributions formuta 2 1 io) 3
No altemative formula . 2 tT) oO 8 * Excludes supplemental pension plans,
‘ * Formula provides lower benefits for eamings subject to FICA (social
ON te ate toni 1 118 i security) taxes than for eamings in excess of tax base,
. * Benefit as calculated by formula is reduced by portion of primary so-

* Excludes supplemental pension pians. ;

* Alternative formulas are generally designed to provide a minimum
benefit for employees with short service or low earnings.

* Includes formulas based on dollar amounts for each year of service
and schedules of benefits that vary by length of service.

* Less than 0.5 percent.

* Includes money purchase plans.

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

ial security payment.

“Offset is equal to the product of a percent of primary social security
Payments and the participant's years of service with the employer. A
maximum offset is frequently applied, for example, 50 percent.

* Benefit formula includes a reduction by a specified percent of primary
Social security payments. Although generally offsets of up to 83.33 per-
Cent are permitted by the Internal Revenue Service for plan qualification,
offsets in excess of 50 percent are uncommon.

* Less than 0.5 percent.

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



at least partially employer financed. Only a small por-
tion of employees were Participants in these plans,
which generally required employees to share in the
financing.

Another kind of coverage sometimes available to the
workers is life insurance on their spouses or unmarried
dependent children. Nearly one-sixth of life insurance
Participants had dependent coverage in 1982; in most
cases, the employee paid Part of the cost. The most
common coverage for death of either a spouse or a
child was a flat amount of $1,000. Three-tenths of the
Participants with dependent life insurance, however,
had from $2,000 to $10,000 of spouse coverage. For
over a fourth of the participants in plans with depend-
ent coverage, the amount of insurance for a child in-
creases at specified ages. For example, a child may have
no coverage until 14 days old, then $250 until 6 months,
followed by $500 up to a year, and $1,000 after a year.
The typical maximum Payment in this type of plan was
$1,000; none of these plans had maximums of over
$5,000.

After retirement, basic life insurance coverage was
continued for life for over three-fifths of all Participants
(table 34), However, rarely was the Preretirement
amount of insurance continued in full. The face value
was reduced once, either upon or after retirement, for
one-third of participants; for one-fourth, the benefit
amount was periodically reduced as the Tetiree grew
older. Other forms of life insurance—accidental death
and dismemberment, supplemental, and dependent cov-
erage—were seldom available after retirement.

Retirement pension plans

Eighty-four percent of the employees in the survey
were covered by private retirement pension plans, with
the employer usually paying the entire cost. Coverage
varied by occupational group; the percent of employ-
ees provided pension plans was somewhat lower for
production workers than for the other two groups (82
Percent compared with 87 for professional-administra-
tive and 86 percent for technical-clerical).

Two-thirds of covered employees were in plans with
retirement payment formulas based on earnings (table
35). Although 15 percent of participants had plans that
used an average of career earnings, most were in plans
which based pensions on earnings in the final years of
employment (terminal earnings formula). Earnings were
defined as average earnings over a 5-year period for 87
percent of participants with terminal earnings formulas,
usually designating the 5 consecutive years with the
highest earnings out of the last 10 before retirement.

Dollar-amount formulas applied to the remaining
third of pension plan participants. While the dollar
amount in these formulas frequently varied with an em-
ployee’s annual. or final earnings, the predominant
method was to multiply a uniform dollar amount by

10

years of service. The amount credited per year gener-
ally ranged from $5 to $20 a month.

Pension plans with terminal earnings formulas typi-
cally provide the highest rate of earnings replacement
and those with dollar-amount formulas generally. pay
the least compared with Preretirement earnings. The
basis of payment differed sharply by employee group.
While a large majority of white-collar workers were
provided pension plans based on final earnings, dol-
lar-amount formulas applied to over half of the Produc-
tion employees.

Thirty-three percent of all participants were in pen-
sion plans providing benefits from either primary or al-
ternative formulas, whichever was greater. Alternative
formulas were often included to Provide at least a mini-
mum level of benefits for Persons with short service or
low earnings.

Private benefits and social Security payments. Employers
providing private pension plans share the cost of social
Security coverage equally with their employees. Be-
cause many plan sponsors feel that Private pension and
social security benefits should not be duplicative, for-
mulas for calculating private pensions often contain an
offset provision requiring part of the social security
pension to be subtracted from the annuity. Other plans
have “integrated” formulas that replace less of an em-
ployee’s earnings on which social security taxes were
paid (the tax base), and more of the earnings in excess
of this base. Forty-five percent of all participants were
in plans with offset Provisions or integrated formulas;
most of these were in plans using terminal earnings for-
mulas (table 36). Blue-collar employees were less likely
to have their benefits coordinated with social security
(chart 4).

Normal retirement. Forty-two percent of all Partici-
pants were covered by plans that specified age 65 as
the earliest age for retirement with full benefits (normal
retirement), and most of these employees were in plans
with no service Tequirement (table 37). Plans permit-
ting normal retirement at earlier ages (usually 60 or 62)
typically had length-of-service requirements,

Thirteen percent of all Participants were covered by
plans permitting retirement at any age with 30 years of
service, with the major concentration (19 percent)
among production workers. Plans which featured such
a provision almost always offered other normal retire-
ment opportunities at specified ages with lower service
requirements. (If a plan had alternative age and service
requirements, the earliest age and associated service
were tabulated; if one alternative did not Specify an age,
it was the formula tabulated.)

Early retirement. Virtually all of the employees par-
ticipating in a pension plan could retire early and re-
ceive an immediate, reduced Pension (table 38). In some



The establishment size groups are defined as follows:

Establishment
employment

50-99
100-249
250-499
500-999

1,000-2,499

2,500-4,999

5,000-9,999
10,000 and over

Employment size
group

Somranunan

The sample size was allocated to each stratum (de-
fined by industry and size) approximately proportional
to the total employment of all sampling frame estab-
lishments in the stratum. Thus, a stratum which con-
tained 1 percent of the total employment within the
-Scope of the survey received approximately 1 percent
of the total sample. The result of this allocation proce-
dure is that each stratum will have a sampling fraction
(the ratio of the number of units in the sample to the
number in the sampling frame) which is proportionate
to the average measure of size of the units in the stratum.

The 1982 sample consisted of the sample units se-
lected for the 1981 survey and a sample of the new es-
tablishments which were found during the universe up-
date process. For the 1981 survey, a random sample
was selected within each stratum using a probability
technique to maximize the probability of retaining es-
tablishments which were selected in the 1980 survey.’
A random sample of new establishments was selected
within each stratum using probabilities equivalent to
those’ used in selecting the 1981 sample. This method
of selection reduced collection costs by decreasing the
number of new establishments in the sample.

Data collection

Data for the survey were collected by visits of Bu-
reau field representatives to the sampled establishments.
To reduce the reporting burden, respondents were asked
to provide documents describing their private pension
plans and plans covering the four insured benefit areas
within the scope of the survey. These were analyzed
by BLS staff in Washington to obtain the required data
on plan provisions. Data on paid leave and other paid
time off generally were obtained directly from the em-
ployers at the time of the visit.

Data were collected during the months of January
through July. Respondents were asked for information
as of the time of the data collection visit.

>This method modifies the method introduced by Nathan Keyfitz
in “Sampling with Probabilities Proportional to Size: Adjusting for
Changes in the Probabilities,” Journal of the American Statistical As-
sociation, 1951, No. 46, pp. 105-9.

52

Data tabulation

The tables presented in this bulletin show the percent
of employees that were covered by paid leave plans,
participated in insurance or pension plans, or were eli-
gible for other benefits. Except in table 50, counts of
workers covered by benefit plans included those who
had not met possible minimum length-of-service Tequire-
ments at the time of the survey. Workers were counted
as participants in employee benefit plans that require
the employee to pay part of the cost only if they elected
the plan and paid their share. Plans for which the em-
ployee paid the full premium were outside the scope of
the survey, even if the employer paid administrative
costs. When tabulating the effect of retirement on life
insurance coverage, however, cases where the retiree
must pay the full cost of the insurance were counted
since the guarantee of insurability at retirement is con-
sidered a benefit.

Tables in this bulletin show the percent of workers
covered by individual benefit plans or plan provisions.
Percentages are calculated in three ways. One tech-
nique, followed in tables 1-5, 7, and 10-13, shows the
number of covered workers as a percent of all workers
within the scope of the survey. It is designed to show
the incidence of the individual employee benefits.

A second approach is followed in tables 6, 8-9, 14-16,
18-19, 29-31, 34-38, 41-49, which show the number of
workers covered by specific features in a benefit area as
a percent of all employees who participate in that
general benefit area. These tables answer questions con-
cerning typical coverages provided to persons with a
given insurance benefit or a private pension plan; for ex-
ample, what percent of all employees with health in-
surance receive dental coverage? _

The third approach provides a close look at an im-
portant feature (tables 17, 20-28, 32-33, and 39); for
example, what percent of all employees with dental
coverage in their health insurance are covered for or-
thodontic work? Table 40 combines the second and
third types above, indicating in the first row of data
the percent of persons in the benefit area who have a
particular coverage, while the remainder of the table is
based on all employees with that coverage.

This multilevel approach has the advantage of clearly
pointing out typical benefit plan characteristics after the
prevalence of the benefit has been established. Any of
the second or third types of tables, if desired, can be
converted to the first type by multiplying each data cell
by the appropriate factors. For example, to calcylate
the percent of all employees with orthodontic cover-
age, multiply the percent of those with dental plans that
cover orthodontia by the percent of health insurance
participants with dental coverage, and multiply that
product by the percent of all employees who have
health insurance coverage.



ther to induce older workers to retire or as a reward
for long service. Generally, supplemental payments con-
tinue until the retiree becomes eligible for reduced so-
cial security benefits. The reduced pension is then pay-
able for life. In recent years, other employers have acted
outside formal plan provisions to offer similar incen-
tives to employees who retire within a specified limited
time period.”

Disability retirement, A career-ending disability may
entitle an employee to a pension at an earlier than nor-
mal age. If the disability satisfies the plan’s definition
of total disability, pension benefits often begin immedi-
ately. When an employer provides other sources of dis-
ability income, such as long-term disability insurance,
the disability retirement benefit might be deferred until
other forms of income have ceased. Eighty-nine per-
cent of pension plan participants were covered by dis-
ability retirement provisions in 1982 (table 40). Employ-
ees in plans with immediate disability retirement out-
numbered by 2 to I those in plans with benefits deferred
to normal or early retirement age.

Over four-fifths of production workers with disabil-
ity retirement coverage were in plans with immediate
benefits. White-collar workers with disability benefits
in their pension plans, however, were equally divided
between plans with immediate and deferred benefits.
Workers with deferred benefits were usually provided
with long-term disability benefits ranging from 50 to 60
percent of earnings or more at the time of disabil-
ity—more than generally provided by pension plans
with immediate disability retirement. Furthermore,
most deferred retirement benefits were greater than im-
mediate pensions, primarily because the time during
which long-term disability benefits were paid was typi-
cally added to an employee’s length of service for com-
putation of pension benefits.

Requirements for disability retirement were usually
based on specified years of service such as 10 years or
more. Nearly one-sixth of the participants, however,
had no age or service requirement, and one-fifth had
to meet the qualifications for the LTD plan, which usu-
ally had a minimal service requirement.

Postponed retirement. Employees who continue on the
job after age 65 rarely receive private pensions until
their actual retirement. Moreover, postponed retirement
frequently is not reflected in the size of pension bene-
fits. Fifty-eight percent of all participants were in plans
with benefit formulas that excluded credit for all serv-

“Mary Popa, “Employers Made Early Retirement More Attrac-
tive: Fourth of Surveyed Companies Offer Incentives,” Employee
Benefit Plan Review, February 1983, pp. 8-14.

‘For amore complete discussion of disability retirement, see Donald
Bell and William Wiatrowski, “Disability Benefits for Employees in
Private Pension Plans,” Monthly Labor Review, August 1982, pp.
36-40.

ice after age 65 (table 41). Of the 42 percent that re-
ceived credit for such service, 16 percent were subject
to limits on the number of credited years (frequently,
only years up to age 68 or 70). However, a number of
plans with earnings-based benefit formulas did Tecog-
nize earnings levels after age 65, even when service was
not credited for these years.

In contrast to early retirees, who typically receive
reduced pensions over an extended time period, late re-
tirees seldom receive pensions that are increased to
compensate for the shorter time they will draw bene-
fits. Only 6 percent of the participants were in plans
that actuarially adjust the size of pensions or increase
the payment by a specified percentage for each addi-
tional year beyond the normal retirement age.

Among employee groups, one-half of production
workers and one-third of white-collar employees re-
ceived full credit for service after age 65. Multiemployer
plans, established by collective bargaining agreements,
frequently provide for employer contributions to the
pension fund for covered employees regardless of age.

Postretirement pension increases. Inflation can severely
erode the purchasing power of a fixed pension through-
out a worker's retirement years. Approximately two-
fifths of participants were in plans which increased pen-
sions for current retirees at least once during the 1978-
81 period. Most of these increases were not automatic
but ad hoc adjustments. The amounts of these ad hoc
increases were not directly linked to a cost-of-living in-
dex. Instead, retirees’ current pensions were usually in-
creased by either a percentage varying by the length
of retirement, or a dollar increase per year of service.
The latter type of increase more often affected the pen-
sions of production workers, and frequently resulted
from collective bargaining agreement provisions.
Only about 3 percent of all participants were in plans
that provided for automatic increases in pension bene-
fits to compensate for rises in the cost-of-living.” In
most instances, the cost-of-living adjustment formulas
provided for benefit adjustments proportional to rises
in the BLS Consumer Price Index. Nevertheless, ceil-
ings on individual increases limited periodic adjustments
to 3 percent or less for over one-half of the covered
workers. The percent of covered employees with limits
to cost-of-living adjustments that were greater than 3
percent continued to increase in 1982. Most of the af-
fected participants were in plans calling for annual ad-
justments. Lifetime ceilings on increases were rare.

Vesting. Even when an employee leaves an employer
without qualifying for either a normal, early, or disabil-
ity retirement benefit, a pension may ultimately be paid.

"The frequency, characteristics, and value of ad hoc postretirement
increases found in the 1982 survey will be explored in a future Monthly
Labor Review article.



Preface

This bulletin presents results of a 1982 Bureau of La-
bor Statistics survey of the incidence and provisions of
employee benefits in medium and large firms. This sur-
vey—the fourth in an annual series—provides repre-
sentative data for 21 million full-time employees in a
cross-section of the Nation’s private industries. It was
designed to provide the Office of Personnel Manage-
ment with information on benefits of private sector em-
ployees in order to compare them with benefits of Fed-
eral workers. The survey’s scope, therefore, is the same
as that of the Bureau’s annual National Survey of Pro-
fessional, Administrative, Technical, and Clerical Pay
which is currently used in the Federal pay comparabil-
ity process for white-collar workers. Appendix A pro-
vides a detailed description of the scope, statistical pro-
cedures, and definitions of terms used in the benefits
survey.

Although the benefits survey has relatively broad
coverage, it excludes the public sector and a number
of industries, such as agriculture, education, and health
services. It also excludes firms in Alaska and Hawaii;
establishments employing fewer than 50, 100, or 250
employees, depending on the industry; executive man-

iii

agement, operating employees in constant travel status
(such as airline pilots); and part-time, temporary, and
seasonal employees. Because of these exclusions, the
data do not statistically represent all employees in the
United States, or even all employees in private industry.

The reader also is cautioned against analyzing trends
since the pilot survey in 1979. Due to the experimental
nature of the earlier surveys, differences in the results
reflect not only changes in benefit practices in private
industry, but also improvements in procedures and tech-
niques built into the survey each year. Nevertheless,
several changes have been identified in this bulletin as
demonstrating trends in benefit provisions.

This bulletin was prepared in the Office of Wages
and Industrial Relations by the staff of the Division of
Occupational Pay and Employee Benefit Levels. Field-
work for the survey was directed by the Bureau’s As-
sistant Regional Commissioners for Operations.

Pictured on the cover of this bulletin is The Doctor
and the Doll by Norman Rockwell, reprinted with per-
mission from The Saturday Evening Post (c) 1929 by The
Curtis Publishing Company.



Table 24. Health insurance: Percent of full-time participants in plans with dental benefits by extent of coverage for
selected procedures, medium and large firms, 1982

Sched-| coq. | Sub- Percent of reasonable and customary charge
uled | "ive. [lect to Not
Type of dental procedure | Total | cash | Jey |copay-| cov-
allow- |Gjr"jment | Total | 50 | 60 | 61-74] 75 | 80 | 85 | 90 | 91-99} 100 | ered
ance
All participants
Examinations 13 41@ 831 | A 1 2} 2] @ 1 - 53 | -
Dental X-rays 100 | 14 44 @ | a 1 1 1 2} a| 5] e] - | 39
Fillings 100 | 25 4/1 @ 70 5 2 1 5 | 37 6 7] @ 71 @
Dental surgery 100 23 4 e 72 5 2 1 5 36 6 7 1 9 )
Periodontal care .. 10} 22) 391; @ | 7 7] 2 1 5] 3) 6] 71 @ e| 2
Inlays 100 | 25 1/ @ | 72] 3] 5 2}; 2] 6] 5) 51 @ 3 2
Crowns .. 100 | 25 1 1} 72} 36] 5 2} 2] 4} 5] 5|/ @ 3 2
Orthadontia .. too | 12} - 1/5 / 2] 3) @ 1 1; @]/a]e 2| 31
Professional and
administrative
Examinations 100 | 15 3 at | Q 1 1 a] 2] @ 1} - | 52) -
Dental X-rays 100 15 3] @ 81 ro) 1 1 3] 26 3 4 - 43 |
Fillings 400 | 26 4} 0 | 70 5] 2 1 5} 4; 5/ 4/ @ 710
Dental surgery 100 | 24 3} |) 72/] 6] 2 1 5} 399] 5| 4 1| 10] @
Periodontal care .. 100 j 23 3/0 | 72) 6] 2 1 3| a] s| 4] @ 9] 2
100 26 1 iv) ral 4t 6 2 2 13 2 2 QO 3 2
100 | 26 | -4 72 | 42 6 2 2] 13 2 21 0 3 2
100 14 - 1 58 51 4 e 1 1 0 iv) 0 2 27
Technical and clerical
Examinations 100 | 14 4/0 si | 1 1 2) 2] 2) - 51 -
100 15 4/0 81 iv) 1 1 2) 28 3 4 - 421
100 | 28 s|@ |e} 4] 2 1 5/4] 3] 4] @ 7/0
gery 100 | 27 5} @ | | 4] 2 1 5] a] 3} 4] @ 8] @
Periodontal care .. 100 | 27 4/@] 6) 7] 3 1 4}a7] 3] 4/0 8; 2
inlays .. 100 28 1 a) 69 38 6 2 2 14 2 2 vl 3 2
Crowns . 100 | 28 1] @ | 6] 38) 6/ 2] 27 4) 2] 216 3) 2
15 - ra) 52 42 4 el 2 1 iv) iv 7) 2 33
12) 4/1 @ | 94 i} a 1 1] 24) @ 2] - | 9) -
w| 3} @ | 85 1 1 1 2| 2) 8) mw] - | 35) ¢
23 3/0 73 8 4 1 6 | 34 9 wo} @ 7; 0
21 3 1| | 5 1 1 6/ 33} 8] 1] 1+] 0] @
Periodontal care 21 3 1 74 7 1 1 6 | 32 9 7 | @ 8 2
Inlays .. 100 23 1 1 73 32 3 1 1 16 8 8: @ 3 2
Crowns 100 } 23 1 1 74 | 33 3 4 1] 16 8 8) 3 1
Orthodontia 100 10 - 0 58 52 1 i) 1 1 °) e - 2 32
* Reimbursement arrangement in which the percentage of dental * Less than 0.5 percent.
expenses paid by the plan increases if regular dental appointments
are scheduled. NOTE: Because of rounding, sums of individual items may not

? Participant pays a specific amount per procedure and plan pays equal totals. Dash indicates no employees in this category.
all remaining expenses.

33



Tabie 10. Paid personal leave: Percent of full-time Table 11. Short-term disability coverage: Percent of |
|

employees by number of paid personal leave days provided full-time employees by participation in accident and sickness
per year, medium and large firms, 1982 Insurance plans and paid sick leave plans, medium and large
firms, 1982 i
Profes- i
sional | Techni- Profes-
‘Alem. |_8nd__ | cal and | Produc- sional | Techni-
Number of days ployees |@4minis-| clerical | tion em- ‘Attem- | 2nd | cal and | Produc-
trative | employ- | ployees ‘Type of plan joyees adminis-| clerical | tion em-
‘employ-| ees Ployees | trative | employ- | ployees
ees employ-| ees
es i
Total 100 | 100 | 100
Provided personal leave .. 24 32 39 16 Total . yoo | 100 | 100 | 100
FAY a resnrn 2 1 2 2
2 days 4 5 7 2 Accident and sickness insurance
3 days 3 5 4 2 only... 26 2 6 48
4 days 6 6 8 4 Noncontributory’ 23 2 4 43
5 days 3 5 3 2
More than 5 days 2 4 3 1 Paid sick teave only... 43 65 62 23
No maximum specified’ 3 5 4 2
Combined accident and sickness
Not provided personal leave . 76 68 67 84 insurance/paid sick teave 24 28 29 20
Noncontributory' accident and
" Workers were provided as much personal leave as they needed. Sickness insurance we) 20 | 22 | 15
2 indi i No accident and sickness insurance
hoe Because of rounding, sums of individual items may not equal to- of paid sick leave . . 7 6 3 9

" Provided at no cost to employee.

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

Table 12. Paid sick leave: Percent of full-time employees by }
type of provision, medium and large firms, 1982 H

Profes- i
sional | Techni- Hy
and | cal and | Produc-

fronees |2dmins-| clerical | tion em-
ees | trative | employ- | ployees
employ-| ees

ees

Provision

Total 100 | 100 | 100

Provided sick leave ... 67 92 92 42

Sick leave provided on: |
‘An annual basis only’

A per disability basis only* 16 a7 20 8
Both an annual and per
disability basis | 3 5 6 1
No specified maximum number
of days . 1 4 1 CQ
Other basis’ | O iv) 0 i) i
Not provided paid sick leave .. 33 8 8 58 |

* Employees earn a specified number of paid sick leave days per year.
This number may vary by length of service.

2 Number of days of paid sick leave is renewed for each illness or dis-
ability. This number may vary by length of service.

> Unlimited sick leave provided to employees as needed.

* Less than 0.5 percent.

* Includes formal plans with provisions that change from a specified
number of days per year to a specified number of days per absence after
@ certain service period.

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

2



Employee Benefits in Medium
and Large Firms, 1982

U.S. Department of Labor
Raymond J. Donovan, Secretary

Bureau of Labor Statistics
Janet L. Norwood, Commissioner

August 1983

Bulletin 2176

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402



Table 43. Private pension plans: Percent of ful
Participants by provision for postretirement sui
medium and large firms, 1982

Table 44. Private pension plans:' Percent of full-time
participants by provision for preretirement survivor annuity,
medium and large firms, 1982

Protes-
sional | Techni-
, All par- | 2nd. | eal and | Produc:
Type of annuity for surviving spouse | ,A1,P2'. |adminis-| clerical |tion par-

pattici- | ticipants
Pants

Profes-
sional } Techni-
and | cal and | Produc-

Type of any Jor suniving ents adminis-| clerical | tion par-
trative | partici | ticipants
partici- | pants
pants

Postretirement survivor annuity
Provided ..

‘Spouse's share of
vivor annuity only’ .
50 percent of reti

93 95 95 92

pension 23 15 18 30
51-99 percent of retiree's
pension 6 4 2 8
100 percent of retiree's
pension (a) @) a iv)
Alternative percentage at
retiree's option 64 76 74 54
Spouse's share of joint-and-sur-
vivor annuity plus portion of
retiree's pension . 1 1 4 2
Portion of retiree's accrued
Pension only 5 4 5 6
Postretirement survivor annuity not
Provideds .. . “| 0 (a) () 1

> Excludes supplemental pension plans.

? 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 length of time that payments
are expected to be made. ERISA requires that plans provide this annuity
as an automatic form of pension payment. Employees must waive the
spouse annuity in writing if they desire a pension during their lifetime only
or another, option offered by the plan, such as guarantee of payments for
a specified period. °

* Less than 0.5 percent.

* Includes participants in money purchase plans where the death bene-
fit is in the form of a lump sum payment equal to the present value of the
accrued benefit less payments already received.

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

45

Total 100 | 100 100 | 100 ~

Preretirement survivor annuity
Provided . | 99 | 100 100 98

Equivalent of joint and survivor

annuity? | 74 73 69 78
Based on early retirement’ ...| 66 65 6t 70
50 percent of employee
pension | 54 52 52 56
At employee cost® 2t 20 7 24
Over 50 percent of
employee pension. 2 13 8 14
At employee cost’ .. 1 rv) iv) 1
Based on normal retirement’ 8 8 9 8
At employee cost 1 (v) is) 1
Portion of accrued employee
benefit, reduced for early
retirement 13 13 16 12
Other annuity’ ... 4 13 14 8
Preretirement survivor annuity not
provided* 1 iv) 6 2

* Excludes supplemental pension plans.

? Many plans offer an elective preretirement spouse option. If the elec-
tive provision was the only option, it was tabulated; if it was in combination
with an automatic preretirement spouse option, only the automatic provi-
sion was tabulated.

* 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 length of time that payments
are expected to be made. Upon the retiree's death, all or part of the re-
duced pension is continued to the surviving spouse for life.

* Survivor annuity is based upon the benefit the employee would have
received if early retirement had occurred on the date of death.

* Plan reduces the accrued employee pension benefit for each year
survivor protection is in force.

® Less than 0.5 percent.

” Survivor annuity is based on the benefit the employee would have re-
ceived if eligible for normal retirement on the date of death.

® Includes annuity based on a portion of accrued benefits unreduced
for early retirement, or a flat dollar amount.

* A preretirement survivor annuity is required by ERISA only where
plans allow the payment of retiree benefits prior to the plan's normal re-
tirement age.

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



rr

Table 19. Health insurance: Percent of full-time participants by coverage for selected categories of medical care, medium

and large firms, 1982

Provided care
Not provided
Category of medical care Total at by basic By major ey, asic eee
benefits only’ | medical only? | oor medical
All participants .
Hospital room and board 100 100 18 12 70 i)
Hospitalization—miscellaneous services 100 100 7 13 70 @)
Outpatient care* .. 100 100 14 14 72 i)
Extended care* 100 62 27 22 13 38
100 100 38 22 39 )
100 400 ‘6 4 50 eQ
Physician visits—otfice 100 95 6 81 8 5
Diagnostic X-ray and laboratory 100 400 29 32 39 )
Prescription drugs 100 97 12 80 a5 3
Private-duty nursing 100 94 5 88 6
Mental health care 100 99 12 12 &s 1
Dental 400 68 63 5 * a2
Vision 100 22 19 3 vl 78
Professional and administrative
Hospital room and board .. 100 100 "7 2 ca i)
Hospitalization—-miscellaneous services 100 100 16 13 74 0
400 100 3 14 7? o)
100 65 28 22 15 35
100 100 39 24 37 i]
100 100 16 38 46 ig)
Physician visits—office 100 99 6 88 6 1
Diagnostic X-ray and laboratory 100 400 28 37 35 i)
Prescription drugs 100 98 6 85 6 2
Private-duty nursing 100 99 7 92 0) 1
Mental health care 100 100 8 12 80 Q
Dental 100 76 70 6 - 24
Vision 100 18 ' 15 3 °) 2
Technical and clerical
Hospital room and board . 100 100 7 14 69 0)
Hospitatization—miscellaneous services .. 100 100 15 18 70 ro)
100 100 10 15 74 0)
100 63 25 23 15 37
100 100 35 25 40 7)
100 100 14 39 47 e)
Physician visits—office .... 100 99 6 85 7 1
Diagnostic X-ray and laboratory 100 100 28 35 38 0)
Prescription drugs 400 97 7 84 6 3
Private-duty nursing 100 | 7 a 1 2
Mental health care 100 10000 | 10 14 76 (a)
Dentat . 100 ce | 63 5 - 32
Vision .. 100 19 15 4 () 81

See footnotes at end of table.

29



Table 32. Life insurance: Percent of full-time participants in plans with muitiple-of-earnings formulas by amount of basic
insurance and maximum coverage provisions, medium and large firms, 1982

in plans in plans with maximum coverage
without |
Formula Total Tf maximum Al Less than | $50,000. | $100,000. | $250,000 or
coverage $50,000 | $99,999 | $249,999 | more
All participants |
Total . 100 87 43 2 8 22 12 :
Life insurance is equal to annual earnings times:
Less than 1.0 3 2 1 - - 1 0)
1.0 44 30 14 1 2 9 2
1. 1 1 0) - - - (0)
16 8 3 5 () 1 3 Q
1.6-1. 0 > Q () - - ~
20. 38 19 ig 1 3 8 8
More than 20 6 2 4 - 1 1 2
Professional and administrative
Total 100 55 45 2 8 a 14
Ute insurance is equal to annual earnings times:
Less than 1.0 1 1 0) - ~ iy) i)
39 25 14 1 2 9 2
1 1 0) - : : 0“
8 4 4 ) 2 2 1
Y = QO 0 - - -
44 22 22 1 4 9 9
7 3 4 - 1 2 2 i
Technical and clerical
Total. 100 55 45 2 8 24 12
Life insurance is equal to annual earnings time:
Less than 1.0... 1 1 ) - - ro) ¢) |
0. 45 31 14 1 3 9 2 |
ie) ) cy ~ - 0)
7 2 () 1 3 ()
a) ~ QO 9) - ~ -
39 18 a 1 3 10 8
7 3 4 . 1 1 2
Production
Total . 100 60 40 3 7 20 10
Life insurance is equal to annual earnings times:
Less than 1.0 5 3 2 - - 2 “)
; 50 35 15 2 2 3 2
2 1 1 - - 4
8 2 5 iv) 1 4 ()
30 17 13 1 2 5 6
5 1 4 - 2 1 1
* Less than 0.5 percent, NOTE: Because of rounding, sums of individual items may not equal

totals. Dash indicates no employees in this category.

38



Table 15. Paid annual sick teave:' Average number of days at full Pay for full-time participants by accumulation policy
and accident and sickness insurance coordination, medium and large firms, 1982

T
Profes- | Profes-
sional | Techni- sional j Techni-
and | cal and | Produc- and | cal and | Produc-
tem tapes |adminis-| clerical |tion par| ftem ‘eeeate |@dminis-| cleticl |tion par.
trative | partici- | ticipants trative | partici. | ticipants
partici | pants partici. | pants
pants pants i
At 1 year of service: |
Cumulative plan .. 88| 103} 90)  7.4|[At 10 years of service~Continued
With accident Noncumulative plan .. 434) 611) 444) 255 |
insurance | 8t| 98; a5} 69 With accident and ‘
Without accident and insurance... 252| 985] 274) 15.4
sickness insurance .. 93] 107] 99) e4 Without accident and
Noncumulative plan ata] 325) 17.4) 142 sickness insurance .. 57.0! 738| 543] 380

With accident and
14.2) 216 | 14.8] 17.0 llAt 20 years of service:

insurance enn

Without accident and Cumulative plan 133) 177| 129) 106
sickness insurance | 264; 388] 201! 183 With accident and sickness |
insurance | 113) 189) 130 78 |

At 5 years of service: Without accident and 5
Cumulative plan - te] 128] 10] 84 sickness insurance 148} 188] 128) 140
With accident and sickness Noncumulative plan -| $42) 742) S76] 317
insurance . 96| 128] 108] 72 With accident and sickness
Without accident and insurance . | 908; 453/ 950! 184
sickness insurance 113} 129) 112/ 98 Without accident and
Noncumulative plan 342{ 491] 332] 2ta sickness insurance 714.71 9041 706) 48.0

With accident and sickness
insurance... 202) 31.0] 20.5] 13.3 At 25 years of service:
Without accident and Cumulative plan 136/ 1811 131! 109
sickness insurance 446; 593] 405] 308 With accident and sickness
insurance .. 116! 166) 13.3 8.0

At 10 years of service: Without accident and
Cumulative plan | 148) 141] 12.0 9.4 sickness insurance 15.0}; 189) 130] 144
With accident and sickness Noncumulative plan S68) 778] 600) 335

insurance .. . 10.4) 142} 119 75 With accident and sickness

Without accident and insurance .. a
sickness insurance | 123} 141) 120] 110 Without accident and

sickness insurance

325; 481| 369] 198

7481 944] 733] 50.4
i
* Paid sick leave plans with a specified number of days available of days of paid leave under a per disability pian is renewed for each ill
each year. Per disability plans were excluded from this table because ness or disability after the employee returns to work for a specified pe-
(1) only one-fifth of the employees with per disability plans were also riod. Data on per disability plans are presented in Table 14.

Covered under an accident and sickness insurance plan and (2) only an-
nual sick leave plans allow the employee to carry over and accumulate NOTE: Computation of average excluded days paid at partial pay and

unused sick leave from one year to the next year, Instead, the number workers with only partial pay days or zero days of sick leave.



maining 20 percent to be paid by the worker (table 23).
For more than three-fifths of the participants, however,
the Percentage paid by the plan increased to 100 per-
cent after a specified level of expenses was incurred
during a year. For example, a plan might pay 80 per-
cent of the first $5,000 of covered expenses and 100
percent thereafter, thus limiting the employee’s “out-
of-pocket” cost to $1,000 (in addition to the deduct-
ible). By limiting payments on the initial covered ex-
penses during an illness or accident, insurers of major
medical policies are able to absorb the expenses of an
infrequent catastrophic illness without substantial in-
creases in premium costs to the employer or worker.
The appeal of this type of protection contributed to'a
steady rise (17 percentage points) in “stop-loss” cover-
age between 1979 and 1982.” Production workers were
less likely to have this provision than white-collar
workers (54 compared with 72 percent).

Dental coverage. Employer-provided dental care has
increased markedly in recent years. In 1982, over two-
thirds of the Participants in health insurance plans re-
ceived coverage for dental expenses, compared with
one-half 3 years earlier.

Nearly all dental plans covered a wide Tange of serv-
ices including examinations, X-rays, and restorative pro-
cedures such as fillings, periodontal care, and inlays.
Participation in Plans covering orthodontic expenses,
at least for dependent children, increased to 69 percent
of employees with dental benefits in 1982 from 62 per-
cent in 1980 (table 24).

Participants in dental plans were generally covered
in 1 of 3 ways: (1) A percentage of Teasonable and cus-
tomary charges, (2) a schedule of cash allowances, or
(3) an incentive schedule. Coverage up toa Percentage
of the reasonable and customary charge for a proce-
dure was the most common form. The Percentage cov-
ered by a plan generally depended on the type of pro-
cedure performed. Lower cost procedures such as ex-
aminations and X-rays were usually covered at 80 or
100 percent. Fillings, Surgery, and periodontal care were
most likely to be covered at 80 percent. More expen-
sive Procedures—inlays, crowns, and orthodon-
tia—were often Provided at 50 percent of the reason-
able and customary charge.

About one-fourth of the dental plan participants were
offered reimbursement based on a schedule of cash al-
lowances. In this type of arrangement, each Procedure
was subject to a specified maximum dollar amount that
could be paid to the participant. Preventive Procedures
were less likely to be subject to this type of schedule
than restorative procedures.

“Recent trends in major medical benefits are examined further by
Douglas Hedger and Donald Schmitt, “Trends in Major Medical
Coverage During a Period of Rising Costs,” Monthly Labor Review,
July 1983

Four percent of dental plan participants had services
covered by an incentive schedule, Under this alrange-
ment, the percentage of dental expenses paid by the
plan increased each year if the participant was exam-
ined regularly by a dentist.

Unlike other basic health benefits, participants in den-
tal plans were typically required to Pay a specified de-
ductible amount before the plan paid any benefits (ta-
ble 25). The most common requirement was a $25 or
$50 deductible to be met by the participant each year.
However, some plans Tequired the participant to paya
deductible (usually $50) only once while a member of
the plan rather than every year. White-collar workers
were more likely than production workers to have plans
with deductible requirements.

Ninety-one percent of dental plan participants were
enrolled in plans that limited the amount of payment
each year by specifying a yearly maximum benefit (ta-
ble 26). The most common maximums were $1,000,
$750, and $500. Orthodontic services usually were sub-
ject to lifetime maximums, which have increased since
first tabulated in 1980. Lifetime maximums of $1,000
for orthodontia applied to 28 percent of Participants in
dental plans Providing this benefit.

Vision care. About one-fifth of the Participants in
health insurance plans received some form of vision
care benefits. The type and number of services covered
varied, with two-thirds of the Participants in plans fea-
turing coverage for eye examinations, eyeglasses, and
contact lenses (table 27). Production workers were the
most likely to receive vision care benefits and their
plans typically covered more procedures.

Mental health coverage. For slightly over two-fifths of
the participants in plans with mental health benefits,
coverage for hospital care was subject to more strin-
gent limitations than for hospitalization due to other
illnesses (table 28). This restriction was usually on the
duration of the hospital stay (often only 30 days for
mental health care as compared to 120 or 365 days for
other illnesses). Even more Testrictive was coverage for
mental health care outside the hospital (i.e., psychiatric
Office visits); less than one-tenth of the participants had
this type of care covered to the same extent as other
illnesses. Outpatient mental health care was usually cov-
ered in the major medical portion of a plan where there
were often ceilings on the amounts payable for mental
health care for each visit and/or each year, and where
the coinsurance for nonhospital treatment of mental ill-
nesses was often 50 percent, compared to 80 percent
for physical illnesses.

Selected special benefits. In addition to the medical ex-

penses listed in table 19, coverage for four additional
types of medical care was tabulated for the first time



Table 45. Accident and sickness insurance: Percent of
full-time participants by length of service requirement for
Participation,’ medium and large firms, 1982

Table 47. Health insurance: Percent of full-time Participants
by length of service requirement for Participation,’ medium
and large firms, 1982

T
Protes- i
sional | Techni- Techni-
- All par- | 49d. | cal and | Produc- ; All pare cal and | Produc.
Length of service requirement | 7 Eat. | adminis-| clerical |tion par- Length of service requirement | (Mt Par clerical |tion par-
trative | partici- | ticipants partici- | ticipants
partici- | pants pants
pants
Total 100 100 100 100 Total 100 100 100
With service requirement 73 67 74 74 With service requirement .. 58 41 53 68
1 month 24 28 28 22 1 month .. 18 16 7 19
2 months 10 5 8 11 10 6 8 13
3 months 24 18 2 25 19 13 19 22
4-5 months 6 7 8 5 3 - 1 6
6 months .. 6 6 5 7 7 5 7 7
7-11 months ro) - - @ Q - - ®
dyear 3 2 2 3 @ io) a eo
Over 1 year .. 1 1 2 ro)
Without service requirement .. 42 59 47 32
Without service requirement 27 33 26 26

* Length of time employees must be on the job before they are cov-
ered by a plan that is at least partially employer financed. There is fre-
quently an administrative time lag between completion of the requirement
and the actual start of participation. If the lag was 1 month or more, it
was included in the service requirement, Minimum age requirements are
rare.

? Less than 0.5 percent.

NOTE: Because of rounding. sums of individual items may not equal to-
tals. Dash indicates no employees i this category.

Table 46. Long-term disability insurance: Percent of
full-time participants by tength of service requirement for
Participation,’ medium and large firms, 1982

* Length of time employees must be on the job before they are cov.
ered by a plan that is at least partially employer financed. There is fre.
quently an administrative time tag between completion of the requirement
and the actual start of participation. if the fag was 1 month or more, it
was included in the service requirement. Minimum age requirements are
rare.

? Less than 0.5 percent,

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

Table 48. Life insurance: Percent of full
by length of service requirement for Partici
Plans,’ medium and large firms, 1982

fe participants:
ation in basic

Profes- Profes-
sional | Techni- sional | Techni-
All par-|__29d_ | cal and | Produc- Allpar-| 29d | cal and | Produc-
Length of service requirement 21 BP” | adminis-| clerical |tion par- Length of service requirement 2 BA: | adminis-| clerical | tion par-
trative | partici- | ticipants ‘pants trative | partici. | ticipants
partici | pants Partici- | pants
pants pants
Totat 100 | 100 } 100 | 100 Total .. woo | 100 | 100 | 100
With service requirement 66 63 1 66 With service requirement ez 46 61 cal
1 month 1 15 40 9 1 month 20 18 7 23
2 months 3 2 2 4 2 month: 9 4 6 2
3 months ; 14 12 15 15 3 months 20 14 22 22
4-5 months ; © i) (9) 1 4-5 months 1 v) 3 1
6 months | 16 14 16 20 6 months 10 7 "1 10
1 year. nt 13 14 17 9 7-14 months ) - - to)
Over 1 year and under 2 years...!  (*) 0 e) - 1 year 1 1 1 2
2 years . 2 2 2 3 Over 1 year . 1 1 1 to)
3 years 7 2 2 4 1
Over 3 years 14 2 5 4 Without service requirement 38 54 39 29
Without service requirement. %4 a7 | 20 | 34 ' Length of time employees must be on the job before they are cov-

' Length of time employees must be on the job before they are cov-
ered by a plan that is at least partially employer financed. There is fre-
quently an administrative time lag between completion of the requirement
and the actual start of participation. If the lag was 1 month or more, it
was included in the service requirement. .

* Less than 0.5 percent.

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

ered by a plan that is at least partially employer financed. There is fre-
quently an administrative time lag between completion of the require-
‘ment and the actual start of participation. if the lag was 1 month or
more, it was included in the service requirement. Minimum age require-
ments are rare.

? Less than 0.5 percent.

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



+ Jable:50:.-Other benefits: Percent of full-time employees in establishments Providin:

ig specified benefits by percent of

‘eligible employees, medium and large firms, 1982
er
“a 1 to 50 51 to 99 ~
~ Benefit Total | None eligible | percent percent | Atl ones {Pata rot avail
eligible eligible eligible able
Professional and administrative employees
Paid leave:
Funeral leave 100 6 iy) 1 89 3
Military leave .. 100 14 1 2 Bt 3
Profit sharing, savings, and stock plans; ,
Profit sharing . 400 72 1 4 20 3
Savings and thrit 400 54 is) 8 35 3
‘Stock bonus plans 100 84 2 1 10 3
Stock purchase plans 100 76 2 2 16 4
Other stock plans? 100 ral ) 5 24 3
Income continuation plans:
Severence pay 100 35 1 4 57 3
Miscellaneous benefits:
4 . Employee discounts 100 51 rv) 1 44 3
t Gifts 100 85 3 1 9 3
Hg In-house infirmary 100 44 2 2 49 3
‘ Nonproduction bonuses 100 76 5 1 15 3
- Relocation allowance:
Full defrayment of expenses 100 30 5 2 59 4
Partial defrayment of expenses 100 14 2 3 7 4
Recreational facilities:
Full detrayment of cost 100 84 i - 12 3
Partial defrayment of cost 100 83 (o) 0 14 3
‘Subsidized meals:
Full defrayment of cost 100 95 cy) °) 1 3
Partial defrayment of cost 400 68 3 1 24 4
Educational assistance:
Full defrayment of expenses . 100 66 0) 2 29 3
Partial defrayment of expenses 100 42 1 1 53 3
Parkin
Provided at no'cost 100 20 5 3 68 3
Provided below commercial rates 100 92 2 1 2 3
‘Company automobile for personal business:
Without reimbursing the compan} 100 79 17 CQ 1 4
Partially reimbursing the company .. 100 88 7 () 1 4
Technical and clerical employees
Paid leave:
Funeral leave .. 100 6 ) 2 90 3
Military leave 100 16 1 1 80 3
Profit sharing, savings, and stock plan:
Profit sharing 100 69 1 5 22 2
‘Savings and thrift 100 59 2 7 29 3
‘Stock bonus plan: 100 90 y) 1 7 2
Stock purchase plans 100 81 ° 2 14 3
Other stock plans’... 100 7 1 4 16 3
income continuation plans:
‘Severence pay .. 100 38 1 4 54 3
Miscellaneous benefits:
Employee discounts 100 39 ) 2 87 3
a me) &) fy) % | By 3
In-house infirmary 1 4 3 3 3
Nonproduction bonuses 100 79 1 1 16 3
Relocation allowance:
Full defrayment of expenses 100 64 4 tO) 29
Partial defrayment of expenses 100 85 1 0 "1 3
Recreational facilities:
Full defrayment of cost. 100 88 i) - 3
Partial defrayment of cost 100 86 re) ) 4 3
See footnotes at end of table.
48



Chart 4. Private pension plans: Percent of full-time participants by provision for
coordination of pension with social security benefits, medium and large firms,

1982

Pension
coordinated
with social
security
64%

Not
coordinated

White—collar participants

25%

75%

Blue—collar participants

cases, employer approval is required for early retire-
ment benefits.

The amount of an early retirement pension is lower
for three reasons: First, fewer years of service are ap-
plied to the benefit formula because an employee has
not worked until normal retirement age. Second, be-
cause benefits begin at an earlier age, the retiree is ex-
pected to receive plan payments over a longer period
of time. Third, pension funds are reduced, thereby low-
ering earnings on investment.

The normal benefit is either adjusted on an actuarial
basis or reduced by a percentage for each month be-
tween the actual and normal retirement ages (arithme-
tic reduction). An actuarial reduction, based on the life
expectancy of employees at the age of their retirement,
was used in plans covering one-fifth of participants with
early retirement opportunities (table 39). Almost one-
half of the covered employees could receive an early
pension subject to a uniform arithmetic reduction, most
commonly 6 percent a year. Reduction factors of less
than 6 percent were found more frequently (31 percent)
in plans for white-collar employees. (Low arithmetic
reductions result in a pension which is higher than those
reduced actuarially.) Three-tenths of the participants
were in plans where the arithmetic increase varied by

age bracket and perhaps approximated an actuarial
reduction.

The majority of participants were covered by plans
providing early retirement at age 55; generally, 10 to
15 years of service were required. One-tenth of the em-
ployees were in plans allowing early retirement at age
60 with 10 to’ 15 years of service; and another one-tenth
were in plans allowing early retirement at less than age
55, most often with 25 years of service.

A small but growing percentage (10 percent) of em-
ployees may first become eligible for early retirement
when their age and years of service equal a specified
sum. Age plus service requirements provide a range of
possible retirement dates for employees with long ca-
teers. Nearly one-tenth of production participants quali-
fied for an early retirement if the sum of their age and
service totaled 85.

Over nine-tenths of the white-collar workers could,
with specified years of service, retire by age 55, and
four-fifths of the production workers had plans with
similar provisions.

The early retirement pension in some plans was sup-
plemented by additional monthly payments if employ-
ees retire after meeting specific conditions. Plan spon-
sors include these special early retirement benefits ei-