Employee Benefits in Medium and

Large Private Establishments, 1997

U.S. Department of Labor

Alexis M. Herman, Secretary

Bureau of Labor Statistics

Katharine G. Abraham, Commissioner

September 1999

Bulletin 2517
iii

This bulletin presents results of a 1997 Bureau of Labor

Statistics (BLS) survey of the incidence and detailed

provisions of selected employee benefit plans in

medium and large private establishments. The survey provides

representative data for 46 million employees in the Nation’s

private nonagricultural industries. Appendix A provides a

detailed description of the coverage and statistical procedures

used in the survey.

The 1997 Employee Benefits Survey (EBS) reports on

benefits provided to employees in establishments with 100

or more workers in all private non-farm industries. Between

1979 and 1986, the survey provided benefits data on fulltime employees in medium and large establishments, those

with either 100 or 250 employees or more, depending on the

industry; coverage in the service industries was limited. The

1987 survey examined benefits provided to full-time

employees in State and local governments with 50 employees

or more. In 1988, 1989, 1991, 1993, and 1995, expanded

surveys of medium and large establishments covered full-time

employees in establishments employing 100 workers or more

in all private industries.

Beginning in 1990, the Employee Benefits Survey included

both full- and part-time employees in all private industries

(regardless of employment) and State and local governments.

In that year, the survey covered small private establishments

and governments. Currently, small private establishments and

Preface

State and local governments are surveyed in even-numbered

years (with the exception of 1996, when only small private

establishments were surveyed), and medium and large private establishments are surveyed in odd-numbered years.

The 1997 Employee Benefits Survey provides a “survey

highlights” section (chapter 1) with a number of key findings

for major benefits, such as time off; disability; medical, dental, and vision care; life insurance; and defined benefit pension and defined contribution plans. The remaining chapters

provide definitions of key terms and general information on

benefit provisions, along with the respective benefit tables.

 Material in this publication is in the public domain and,

with appropriate credit, may be reproduced without permission.

The public may access Employee Benefits Survey data at:

http://stats.bls.gov/ebshome.htm, the BLS Internet site.

Questions on the data in this publication should be referred

to the staff of the Employee Benefits Survey at (202) 606-

6222 or via E-mail: OCLTINFO@bls.gov. Sensory impaired

individuals may obtain information in this publication upon

request. Voice phone: (202) 606-7828; Federal Relay Service: 1-800-877-8339.

Pictured on the cover of this bulletin is Bedside Manner

by Norman Rockwell, March 10, 1923, The Curtis Publishing Company.
iv

Data for this bulletin were compiled and analyzed in

the Office of Compensation Levels and Trends by

Cathy Baker, Iris Dìaz, Elizabeth Dietz, Kenneth

Elliott, Daniel Elmore, John Foster, Avy Graham, Marc

Kronson, Antonio Lombardozzi, James Moore, Cynthia

Thompson, and Arthur Williams, under the direction of Allan

Blostin, John Morton, and Paul Scheible. Cathy Baker

prepared the tables with the assistance of Albert Schwenk.

James Houff reviewed the tables. Richard Busch, Ann Foster,

and Sidney Samuel prepared the survey chapters and

appendixes under the direction of Frances Harris and Hilery

Simpson.

Acknowledgments

Other table preparation, computer programming, and

systems design for the survey were provided by Aholivah

Maier, Pat O’Brian, and Cheryl Sims of the Division of

Directly Collected Periodic Surveys under the direction of

Leslie Chappel. Thomas Kelly and Christina L. McCarthy of

the Statistical Methods Group (Office of Compensation and

Working Conditions) were responsible for the sample design,

nonresponse adjustments, sample error computations, and

other statistical procedures, under the direction of

Terry Burdette. Data collection for the survey was directed

by the Bureau’s Assistant Regional Commissioners for

Operations.
v

Page

Chapter 1. Results of the 1997 survey .............................................................................................................. 1

Time off ................................................................................................................................................... 1

Health benefits ........................................................................................................................................ 1

Retirement benefits ................................................................................................................................. 2

Other findings ......................................................................................................................................... 2

Chapter 2. Work schedules, paid time off, and family leave ............................................................................ 14

Work schedules ....................................................................................................................................... 14

Paid holidays ........................................................................................................................................... 14

Paid vacations ......................................................................................................................................... 14

Paid personal leave ................................................................................................................................. 14

Paid funeral leave .................................................................................................................................... 14

Paid jury duty leave................................................................................................................................. 15

Paid military leave .................................................................................................................................. 15

Family leave ............................................................................................................................................ 15

Chapter 3. Disability benefits ........................................................................................................................... 24

Paid sick leave......................................................................................................................................... 24

Short-term disability................................................................................................................................ 24

Long-term disability ................................................................................................................................ 24

Chapter 4. Health benefits ................................................................................................................................ 41

Medical care ............................................................................................................................................ 41

Plan types ........................................................................................................................................... 41

Plan financing ..................................................................................................................................... 41

Limits on coverage ............................................................................................................................. 41

Cost containment features .................................................................................................................. 42

Alternatives to hospitalization ............................................................................................................ 42

Mental health and substance abuse treatment .................................................................................... 42

Prescription drugs ................................................................................................................................... 42

Services and provisions ...................................................................................................................... 43

Dental care .............................................................................................................................................. 43

Vision care .............................................................................................................................................. 43

Chapter 5. Life insurance .................................................................................................................................. 94

Basic life insurance ................................................................................................................................. 94

Benefit formulas ................................................................................................................................. 94

Variations in benefit formulas ............................................................................................................ 94

Provisions and related terms .............................................................................................................. 94

Chapter 6. Defined benefit plans ...................................................................................................................... 101

Benefit formulas ...................................................................................................................................... 101

Normal retirement ................................................................................................................................... 101

Early retirement ....................................................................................................................................... 101

Benefit payment methods ........................................................................................................................ 101

Vesting ..................................................................................................................................................... 101

Integration with Social Security .............................................................................................................. 102

Portability ................................................................................................................................................ 102

Disability retirement................................................................................................................................ 102

Post-retirement pension increases ........................................................................................................... 102

Contents
vi

Page

Chapter 7. Defined contribution plans .............................................................................................................. 115

Plan types ................................................................................................................................................ 115

Investment choices .................................................................................................................................. 115

Withdrawals, loans, and distributions ..................................................................................................... 115

Vesting ..................................................................................................................................................... 116

Employer contribution methods .............................................................................................................. 116

Related plans and terms .......................................................................................................................... 116

Chapter 8. Flexible benefits and reimbursement accounts ............................................................................... 138

Flexible benefit plans .............................................................................................................................. 138

Reimbursement accounts......................................................................................................................... 138

Account types ..................................................................................................................................... 138

Premium conversion plans ...................................................................................................................... 138

Chapter 9. Benefits by selected characteristics ................................................................................................. 140

Region ..................................................................................................................................................... 140

Industry ................................................................................................................................................... 140

Union status............................................................................................................................................. 140

Part-time employees ................................................................................................................................ 140

Appendixes:

A. Technical note .................................................................................................................................... 155

B. Survey response .................................................................................................................................. 160

C. Availability of survey data .................................................................................................................. 161

Tables

Full-time employees in medium and large private establishments, 1997:

1. Selected benefits: Percent participating .......................................................................................... 4

2. Selected benefits: Number participating ......................................................................................... 6

3. Other benefits: Percent eligible ...................................................................................................... 8

4. Other benefits: Number eligible ..................................................................................................... 9

5. Plan administration: Type of plan sponsor ..................................................................................... 10

6. Medical care benefits: Percent participating .................................................................................. 11

7. Medical care benefits: Percent participating by availability of selected features ........................... 11

8. Medical care benefits: Average monthly employee contributions .................................................. 12

9. Non-health maintenance organizations: Average plan limits .......................................................... 13

10. Retirement plans: Percent participating in defined benefit, defined contribution,

and deferred tax arrangement plans .............................................................................................. 13

Work schedules:

11. Hours scheduled per week and per day .......................................................................................... 16

12. Type of work schedule .................................................................................................................... 16

Paid time off:

13. Holidays and vacations: Average number of days .......................................................................... 17

14. Holidays: Number of days provided each year ............................................................................... 18

Vacations:

15. Number of days provided for selected periods of service .......................................................... 18

16. Method of payment ..................................................................................................................... 20

17. Length of service required to take vacation ................................................................................ 20

Contents—Continued
vii

Contents—Continued

18. Unused vacation policy............................................................................................................... 21

19. Average number of days by carryover and cash-in provisions .................................................. 21

20. Personal leave: Number of days available per year ........................................................................ 22

21. Funeral leave: Number of days available per occurrence ............................................................... 22

22. Jury-duty leave: Number of days available per occurrence ............................................................ 23

23. Military leave: Number of days available per year ......................................................................... 23

Family leave:

24. Duration of benefits ....................................................................................................................... 23

Paid sick leave:

25. Type of provision ........................................................................................................................... 25

26. Number of days .............................................................................................................................. 26

27. Average number of days at full pay................................................................................................ 28

28. Annual plans: Unused sick leave policy and carryover provisions ................................................ 28

29. Annual plans: Average number of days at full pay by accumulation policy .................................. 29

30. Length-of-service requirements for participation........................................................................... 29

31. Plans allowing uses of sick leave for other purposes ..................................................................... 30

Short-term disability:

32. Method of funding ......................................................................................................................... 30

33. Method of payment ........................................................................................................................ 30

34. Flat dollar amounts......................................................................................................................... 31

35. Fixed percent of earnings amounts................................................................................................. 31

36. Maximum benefits placed on percent of earnings formulas .......................................................... 32

37. Minimum benefits placed on percent of earnings formulas ........................................................... 32

38. Type of waiting period ................................................................................................................... 33

39. Length of waiting period ................................................................................................................ 33

40. Duration of benefits ....................................................................................................................... 34

41. Eligibility requirements .................................................................................................................. 34

42. Employee contribution provisions ................................................................................................. 35

43. Unfunded plans: Number of days .................................................................................................. 36

44. Unfunded plans: Average number of days ..................................................................................... 38

Long-term disability insurance:

45. Benefit waiting period .................................................................................................................... 38

46. Method of payment ......................................................................................................................... 39

47. Maximum benefits based on percent of earnings formulas ............................................................ 39

48. Eligibility requirements .................................................................................................................. 40

Medical care:

49. Summary of selected features ......................................................................................................... 44

50. Contributory status by fee arrangement .......................................................................................... 45

51. Amount and type of employee contributions for individual coverage ............................................ 46

52. Amount and type of employee contributions for family coverage .................................................. 47

Coverage for:

53. Selected services by type of plan .............................................................................................. 48

54. Selected services in non-HMOs................................................................................................ 49

Page

Tables—Continued
viii

55. Alternatives to hospital care in non-HMOs .............................................................................. 50

56. Mental health and substance abuse treatment in non-HMOs .................................................... 51

57. Selected services in HMOs ....................................................................................................... 52

58. Alternatives to hospital care in HMOs ..................................................................................... 52

59. Mental health and substance abuse treatment in HMOs ........................................................... 53

60. Fee arrangement and financial intermediary ..................................................................................... 54

61. Summary of selected features in HMOs............................................................................................ 55

62. Amount of individual deductibles in non-HMOs .............................................................................. 56

63. Relationship of individual and family deductibles in non-HMOs ..................................................... 57

64. Coinsurance rates in non-HMOs ....................................................................................................... 58

65. Out-of-pocket expense provisions in non-HMOs ............................................................................. 59

66. Maximum benefit provisions in non-HMOs ..................................................................................... 61

67. Averages for major medical provisions in non-HMOs .................................................................... 62

68. Selected features in preferred provider organizations ....................................................................... 63

69. Coinsurance rate comparison of PPO plans with other service providers ........................................ 63

70. Availability of managed care benefits ............................................................................................... 64

71. Availability of selected cost containment features in non-HMOs ..................................................... 64

72. Prehospitalization certification requirements in non-HMOs ............................................................ 65

73. Second surgical opinion provisions in non-HMOs ........................................................................... 65

74. Extent of coverage for hospital room and board in non-HMOs ........................................................ 66

75. Types of limitations on hospital room and board coverage in non-HMOs ....................................... 66

76. Copayment provisions for hospital room and board ......................................................................... 67

77. Start of plan benefits for extended care facilities in non-HMOs ....................................................... 68

78. Limitations on extended care facilities in non-HMOs ...................................................................... 68

79. Limitations on days of extended care facility coverage in non-HMOs ............................................. 69

80. Extent of coverage for extended care facilities in HMOs ................................................................. 69

81. Extent of coverage for surgical services in non-HMOs .................................................................... 70

82. Extent of coverage for physicians office visits in HMOs.................................................................. 70

83. Summary of coverage for outpatient prescription drug benefits ....................................................... 71

84. Brand name drug provisions in non-HMOs ...................................................................................... 71

85. Brand name drug provisions in HMOs ............................................................................................. 72

86. Comparison of mental health benefits with other coverages ............................................................. 72

Limits on:

87. Mental health care coverage ....................................................................................................... 73

88. Mental health coverage in HMOs ............................................................................................... 73

89. Mental health care coverage in non-HMOs ................................................................................ 74

90. Relationship between provisions for alcohol and drug treatment benefits .................................... 74

91. Relationship of substance abuse benefits to other coverages ........................................................ 75

Limits on:

92. Alcohol abuse treatment benefits ................................................................................................ 76

93. Drug abuse treatment benefits ..................................................................................................... 77

94. Alcohol abuse treatment in HMOs .............................................................................................. 78

95. Drug abuse treatment in HMOs .................................................................................................. 79

96. Alcohol abuse treatment in non-HMOs ...................................................................................... 80

97. Drug abuse treatment in non-HMOs ........................................................................................... 81

98. Application of out-of-pocket provisions to mental health care and

substance abuse treatment benefits in non-HMOs ....................................................................... 82

99. Eligibility requirements ................................................................................................................. 83

100. Pre-existing condition provisions in non-HMOs ........................................................................... 83

Contents—Continued

Page

Tables—Continued
ix

101. Source of funding of retiree coverage ........................................................................................... 84

Dental care:

102. Eligibility requirements ................................................................................................................. 84

103. Fee arrangement and financial intermediary ................................................................................. 85

104. Coverage for selected procedures ................................................................................................. 86

105. Percent of charges paid by plan for selected procedures ............................................................... 88

106. Amount of individual deductible ................................................................................................... 90

107. Relationship of yearly family deductibles to yearly individual deductibles .................................. 90

108. Services covered by deductible provisions.................................................................................... 91

109. Maximum benefit provisions ......................................................................................................... 91

110. Maximum benefit provisions for orthodontia care ........................................................................ 92

111. Pretreatment authorization............................................................................................................. 92

Vision care:

112. Coverage for selected services ...................................................................................................... 93

Life insurance:

113. Summary of provisions .................................................................................................................. 95

114. Method of determining basic coverage ......................................................................................... 95

115. Flat dollar benefit amounts ............................................................................................................ 96

116. Multiple of earnings benefit amounts ............................................................................................ 96

117. Maximum benefits placed on multiple of earnings formulas ........................................................ 97

118. Minimum benefits placed on multiple of earnings formulas ......................................................... 97

119. Retiree coverage ............................................................................................................................ 98

120. Reduction in benefits for retirees .................................................................................................. 98

121. Supplemental coverage .................................................................................................................. 99

122. Dependent coverage ...................................................................................................................... 99

123. Eligibility requirements ................................................................................................................. 100

124. Basic life insurance employee contributions ................................................................................. 100

Defined benefit plans:

125. Summary of plan provisions .......................................................................................................... 103

126. Primary formula and availability of alternate formula .................................................................. 103

127. Terminal earnings formulas ........................................................................................................... 104

128. Definition of terminal earnings ...................................................................................................... 104

129. Types of earnings included in earnings-based formulas ................................................................ 105

130. Dollar amount formulas ................................................................................................................. 105

131. Integration with Social Security .................................................................................................... 106

132. Maximum benefit provisions ......................................................................................................... 106

133. Availability of lump sum benefits .................................................................................................. 107

134. Postretirement survivor benefits .................................................................................................... 107

135. Preretirement survivor benefits ..................................................................................................... 108

136. Requirements for normal retirement .............................................................................................. 108

137. Requirements for early retirement ................................................................................................. 109

138. Early retirement reduction ............................................................................................................. 110

139. Method of calculating disability retirement benefits ..................................................................... 111

140. Requirements for disability retirement .......................................................................................... 111

141. Vesting requirements ..................................................................................................................... 112

Contents—Continued

Page

Tables—Continued
x

142. Provisions for early receipt of deferred vested benefits ................................................................ 112

143. Portability provisions .................................................................................................................... 113

144. Employee contribution requirements............................................................................................. 113

145. Eligibility requirements ................................................................................................................. 114

Defined contribution plans:

Savings and thrift plans:

146. Summary of provisions .................................................................................................................. 118

147. Transfer and rollover provisions ................................................................................................... 118

148. Maximum employee contributions ................................................................................................ 119

149. Method of determining pretax contribution................................................................................... 119

150. Maximum pretax employee contributions ..................................................................................... 120

151. Method of employer matching contributions ................................................................................ 120

152. Employee contributions by employer specified matching percentage........................................... 121

153. Discretionary profit-sharing contributions .................................................................................... 122

154. Investment choices ........................................................................................................................ 123

155. Types of investments allowed in plans permitting employees to choose investments ................... 124

156. Method of allocating contributions to investment options ............................................................ 125

157. Frequency of investment changes .................................................................................................. 126

158. Withdrawal availability ................................................................................................................. 127

159. Withdrawal requirements in plans permitting withdrawals ........................................................... 127

160. Maximum amount that may be withdrawn in plans permitting withdrawals ................................. 127

161. Penalties imposed upon withdrawal of funds in plans permitting withdrawals ............................. 127

162. Loan availability ............................................................................................................................ 128

163. Loan requirements in plans permitting loans ................................................................................. 128

164. Maximum amount that may be borrowed in plans permitting loans.............................................. 128

165. Interest provisions in plans permitting loans ................................................................................. 128

166. Repayment provisions in plans permitting loans ........................................................................... 129

167. Methods of distribution ................................................................................................................. 129

168. Service requirements ..................................................................................................................... 130

169. Vesting provisions ......................................................................................................................... 130

Deferred profit-sharing plans:

170. Employer contributions ................................................................................................................. 131

171. Allocation of employer contributions to individual employee accounts ....................................... 131

172. Selected plan features .................................................................................................................... 132

173. Service requirements ..................................................................................................................... 132

174. Vesting provisions ......................................................................................................................... 133

401(k) salary reduction plans:

175. Maximum pretax employee contributions ..................................................................................... 133

176. Service requirements ..................................................................................................................... 134

177. Investment choices ........................................................................................................................ 135

178. Vesting provisions ......................................................................................................................... 136

179. Transfer and rollover provisions ................................................................................................... 136

180. Withdrawal availability ................................................................................................................. 136

181. Loan availability ............................................................................................................................ 137

182. Methods of distribution ................................................................................................................. 137

Page

Contents—Continued

Tables—Continued
xi

Stand-alone reimbursement accounts:

183. Expenses covered .......................................................................................................................... 139

Benefits for full-time employees by geographic region:

184. Summary: Participation in selected employee benefit programs .................................................... 141

185. Other benefits: Eligibility for specified benefits ............................................................................. 143

Benefits for full-time employees by industry group:

186. Summary: Participation in selected employee benefit programs, goods-producing industries ....... 144

187. Other benefits: Eligibility for specified benefits, goods-producing industries................................ 146

188. Summary: Participation in selected employee benefit programs, service-producing industries ..... 147

189. Other benefits: Eligibility for specified benefits, service-producing industries .............................. 149

Benefits for full-time employees by union status:

190. Summary: Participation in selected employee benefit programs .................................................... 150

191. Other benefits: Eligibility for specified benefits ............................................................................. 151

Benefits for part-time employees:

192. Summary: Participation in selected employee benefit programs .................................................... 152

193. Other benefits: Eligibility for specified benefits ............................................................................. 154

Appendix tables:

A-1. Survey scope: Full-time employees ................................................................................................ 158

A-2. Survey scope: Part-time employees ................................................................................................ 159

Tables—Continued

Contents—Continued

Page
Chapter 1.

Results of the 1997 Survey

The Bureau’s 1997 survey of medium and large private

industry establishments provides data on employee

work schedules and on the incidence and detailed

characteristics of employee benefits paid for, at least in part,

by the employer.1 These benefits include holidays, vacations,

personal, funeral, jury-duty, military, family, and sick leave;

short-term disability, long-term disability, and life insurance;

medical, dental, and vision care, and private retirement plans.

Because the survey data are limited to formal plans, this

bulletin may understate the extent of such benefits as military

and jury duty leave.2

Data also are collected on the incidence of several other

benefits, including severance pay, child-care assistance,

wellness programs, employee assistance programs, and educational assistance. In addition, information is obtained on

flexible benefits plans, reimbursement accounts, and unpaid

family leave.

For the 1997 survey of benefits in medium and large private

establishments, BLS collected information on both full- and

part-time employees. Employees are classified as either fulltime or part-time workers in accordance with their employers’

practices. Part-time workers typically are scheduled to work

fewer hours per week than full-time workers engaged in the

same type of work activity. In addition, data are collected on

the incidence of employee benefits by union status, broad

industry grouping, and broad geographic region.

Major highlights of the survey for full-time employees in

medium and large private establishments are reported later

in this chapter. Detailed information on the provisions of the

benefits studied appears in chapters 2-9.

Among the most frequently observed benefits provided to

full-time employees in medium and large private

establishments in 1997 were medical care, life insurance,

holidays, vacations, and paid jury duty leave. Each of these

benefits was provided to the majority of full-time workers

(see the data tables at the end of each chapter). In contrast,

such benefits as personal leave, dental care, defined benefit

pension plans, short-term disability insurance, and long-term

disability insurance were less prevalent.

Time off

Time off was the most frequently provided benefit for fulltime employees in medium and large private establishments

in 1997. With few exceptions, nearly all full-time employees

received paid vacation benefits, and 9 out of 10 received paid

holidays. Unpaid family leave covered 93 percent of fulltime employees in 1997, compared with 84 percent in 1995,

reflecting the continued implementation of the Federal Family and Medical Leave Act of 1993. This act obligates employers with more than 50 employees to provide 12 weeks of

unpaid leave each year to employees for the birth or adoption of a child or for care associated with an illness of the

employee or a family member. Paid funeral leave and juryduty leave are also provided to many full-time employees.

The length of paid vacations and the number of paid holidays were similar in 1997 and 1995. The number of available vacation days increases with length of service. For example, in 1997, employees received, on average, about 10

vacation days after 1 year of service and 22 days after 30

years.

The definition of paid sick leave used in the survey changed

in 1995. Before 1995, the paid sick leave category included

plans that defined allowable days on a “per disability” basis,

in addition to plans that specified a number of days available

each year. Since 1995, participants in “per disability” plans

are not reported as having sick leave plans but are included

among short-term disability plan participants, along with

participants in sickness and accident insurance plans.

Health benefits

Approximately 3 out of 4 full-time employees participated

in employer-sponsored medical care plans. Sixty-nine percent of those participating were required to contribute to the

cost of single coverage in 1997, compared with 67 percent in

1995. An even greater proportion was required to contribute

to the cost of family coverage. In 1997, employee contributions per month averaged $39.14 for single coverage and

$129.92 for family coverage. In 1995, these averages were

$33.92 and $118.33, respectively.

Participation in non-traditional, or “managed care,” plans

continued to increase. In 1997, 73 percent of all full-time

employees with medical care coverage were in non-traditional

plans, compared with 63 percent in 1995. Thirty-three percent were in health maintenance organizations (HMOs), up

from 27 percent in 1995, 23 percent in 1993, and 17 percent

in 1991. Forty percent were in preferred provider organizations (PPOs), compared with 34 percent in 1995, 26 percent

in 1993, and 16 percent in 1991. In contrast, only 27 percent

of all medical care plan participants were in traditional feefor-service plans in 1997, down from 37 percent in 1995, 50

percent in 1993, and 67 percent in 1991.

Employees with medical care benefits were much more

likely to be eligible for preventive medical care benefits in

1997 than in the early 1990s. This may be due in part to the
2

Results of the 1997 Survey

increase in participation in non-traditional medical plans,

which are more likely to cover preventive care. For example,

routine physical examinations were available to nearly twothirds of participants in 1997, compared with three-tenths in

1991. Similarly, well-baby care benefits were offered to 66

percent of participants in 1997, compared with 36 percent in

1991.

Participants in traditional fee-for-service plans and PPOs

(non-HMOs) have a greater choice of health care providers

but bear a greater proportion of their health care costs. Annual deductibles, the amount the participant pays each year

before the plan reimburses any covered expenses, averaged

$268 for individuals in 1997, compared with $247 in 1995.

After the annual deductible is satisfied, the plan pays a percentage of covered medical expenses, known as coinsurance.

Eighty-three percent of participants in traditional fee-for-service plans were in plans that paid an 80 percent coinsurance

in 1997. Although more generous than fee-for-service plans

if a network provider is used, most PPO plans also include a

coinsurance provision. For example, 36 percent of PPO plan

participants were in plans that paid 80 percent of covered

expenses and 30 percent were in plans with 90 percent coinsurance.

Generally, the amount of yearly out-of-pocket expenses

participants had to pay in non-HMO plans was limited, with

the cost of services above this limit paid by the plan. In 1997,

these maximum out-of-pocket limits averaged $1,578 for

individuals and $3,101 for families. For the most part, plans

also restricted total lifetime benefits to a maximum amount.

Medical expenses above these lifetime maximums were not

covered by the plan. For participants in plans with lifetime

maximums, the average lifetime maximum was $1.1 million.

Retirement benefits

Four-fifths of full-time employees participated in one or more

employer-sponsored retirement plan in 1997. Retirement

plans are usually classified as either defined benefit or defined contribution. In defined benefit plans, the benefit at

retirement is specified by a formula, and the employer bears

the investment risk to fund the benefit. In defined contribution plans, the employer’s current cost (contribution) is specified, but the amount of retirement benefit is not known in

advance. Half of all full-time employees in medium and large

private establishments were enrolled in defined benefit plans

in 1997, compared with 52 percent in 1995. In contrast, 57

percent were in enrolled in defined contribution plans in 1997,

compared with 55 percent in 1995. This continues the trend

away from defined benefit plans and towards defined contribution plans.

In 1997, 39 percent of full-time employees in medium and

large private establishments participated in savings and thrift

plans, a common type of defined contribution plan. Other

types of defined contribution plans included deferred profit

sharing plans, covering 13 percent of full-time employees,

and money purchase plans, with enrollment at 8 percent in

1997.

In savings and thrift plans, participants are required to make

contributions to the plan. These contributions are matched

by employers, subject to the maximum specified in the plans.

The amount of contributions employees are allowed to make

is limited, often to 15 or 16 percent of earnings. Plans also

limit the employee contribution that will be matched by the

employer. In plans with specified employer matching rates,

for example, 42 percent of participants had their contributions up to 6 percent of earnings matched by employers.

Another 48 percent were in plans with matches on 6 percent

of earnings. The most common rate of employer match (applicable to 47 percent of participants) was 50 cents for each

dollar contributed by the employee.

Fifty-five percent of full-time employees deferred a portion of their current earnings (and sheltered the income from

current income taxes) by contributing to a retirement plan

such as a 401(k) plan. In 1991, the incidence of these plans

was 44 percent.

The retirement benefit earned by participants in defined

benefit plans typically reflects their earnings, age, and length

of service at retirement. For two-thirds of the participants,

the retirement benefit was a percentage of preretirement earnings, most commonly a percentage of earnings in the final

years of their careers. Most of the remaining participants were

in plans specifying a flat dollar amount for each year of service. A large majority had to attain a minimum age, typically

in combination with a minimum service requirement, to receive a normal retirement benefit. For seven-tenths of fulltime participants in defined benefit plans, the minimum age

for normal retirement with unreduced benefits was 62 or 65.

The minimum length of service required for normal retirement varied by age at retirement. For example, it was common to impose a service requirement of up to 30 years before age 62, 5 or 10 years at age 62, and 5 years or no requirement beginning at age 65. Voluntary early retirement,

with a reduced benefit, was available to almost all defined

benefit plan participants.

Other findings

Life insurance was available to 87 percent of full-time employees in medium and large private establishments in 1997.

Nearly three-fifths (58 percent) of participants in life insurance plans had their insurance protection defined as a multiple of annual earnings; for virtually all of the remainder,

insurance protection was a stated dollar amount (usually between $5,000 and $25,000). The amount of insurance protection averaged nearly $17,000 for employees in plans with

a stated dollar amount benefit and 1.5 times earnings for

employees in multiple-of-earnings plans.

Two other benefits were prevalent among full-time em-
3

Results of the 1997 Survey

ployees in medium and large private establishments—jobrelated educational assistance (67 percent of participants) and

cafeteria benefit plans (52 percent). The latter benefits, in

accordance with Section 125 of the Internal Revenue Code,

were mostly reimbursement account plans that allow employees to set aside funds, often on a pre-tax basis, to pay for

unpaid health care or other expenses. In some cases, Section

125 plans were available to finance benefit premiums.

The type of major benefits available to full-time employees varied by occupational group. In retirement plans, for

example, 46 percent of blue-collar and service employees

were in defined contribution plans as compared with 70 perA Note on the Tables

The majority of the tables in this bulletin indicate the percent of all employees, or of a selected

group of employees, covered by particular benefits and benefit features. Understanding the group

of employees about whom data are being presented is the key to using these tables; this information is contained in the first row of each table. Some tables indicate the percent of all employees

covered by the survey who have a certain benefit; other tables show the percent of employees

covered by a certain benefit who have a certain plan feature. Rows where there are no participants

reported are deleted from the tables.

For example, table 1 indicates that 76 percent of all full-time employees were covered by a

medical care plan. In chapter 4, most of the tables present data on the percent of workers with

medical care who are in plans with certain provisions. Workers with medical care equal 100 percent in these tables, with smaller percentages indicating the availability of plan features. In table

49, for example, 100 percent refers to those workers with medical care plans, and 27 percent

indicates those workers with medical care covered by a traditional fee-for-service plan.

Another type of table estimate presented throughout the bulletin displays average benefit values

rather than percentages of workers. These averages are presented for all covered workers; averages

exclude workers without the plan provision.

Data calculations are discussed in more detail in the appendixes.

1 There are a few exceptions to this general rule. The survey provides

estimates on the availability of postretirement medical care and life

insurance, dependent life insurance, supplemental life insurance, and longterm care insurance even if an employee or retiree must pay for such

coverage fully. This is because the guarantee of insurability and availability

of coverage at group premium rates can be considered a benefit. In addition,

cent of professional, technical, and related employees and

63 percent of clerical and sales employees. In contrast, about

half of each group participated in defined benefit plans. In

health care, one-third of blue-collar and service participants

were in traditional plans, compared with about one-fifth of

employees in the two other groups.

reimbursement accounts, salary reduction plans, and family leave plans

are tabulated even if the employer bears no cost beyond administrative

expenses.

2 Formal plans are those stated in a written document. If military or jury

duty leave is granted on a case-by-case without a written document, it

would not be counted.

— Endnotes —
4

Table 1. Summary: Participation1 in selected employee benefit programs2,

full-time employees, medium and large private establishments, 1997

(In percent)

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Paid time off:

Holidays .......................................... 89 89 91 88

Vacations ........................................ 95 96 97 94

Personal leave ................................ 20 23 33 13

Funeral leave .................................. 81 84 85 76

Jury duty leave ............................... 87 92 89 83

Military leave ................................... 47 60 50 38

Family leave ................................... 2 3 3 1

Unpaid family leave .......................... 93 95 96 91

Disability benefits3:

Paid sick leave ................................ 56 73 73 38

Short-term disability ........................ 55 54 52 58

Long-term disability insurance ........ 43 62 52 28

Survivor benefits:

Life insurance ................................. 87 94 91 81

Accidental death and

dismemberment ............................ 68 70 70 66

Survivor income benefits ................ 5 5 3 6

Health care benefits:

Medical care ................................... 76 79 78 74

Dental care ..................................... 59 64 59 56

Vision care ...................................... 26 28 25 24

Outpatient prescription drug

coverage ....................................... 73 76 76 70

See footnotes at end of table.
5

Table 1. Summary: Participation1 in selected employee benefit programs2,

full-time employees, medium and large private establishments, 1997

(In percent) — Continued

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Retirement income benefits:

All retirement4 ................................. 79 89 81 72

Defined benefit ........................... 50 52 49 50

Defined contribution5 .................. 57 70 63 46

Savings and thrift .................... 39 49 45 30

Deferred profit sharing ............ 13 15 15 12

Employee stock ownership ..... 4 6 6 3

Money purchase pension ....... 8 12 6 6

Stock bonus ............................ 1 1 3 1

Other ....................................... 1 1 6 () 1

Cash or deferred arrangements:

With employer contributions ....... 46 56 51 38

Salary reduction ...................... 44 56 50 34

Savings and thrift ................ 38 49 44 29

Deferred profit sharing ........ 3 3 5 3

Other ................................... 2 3 2 2

Deferral of profit sharing

allocation .............................. 3 1 2 5

No employer contributions .......... 9 11 8 8

1 Only current employees are counted as participants. Participants in insurance and retirement

benefits have met minimum length of service requirements and paid any required employee share of

the benefit cost. Participants in all other benefits include all employees in occupations offered the

benefit. 2 Employee benefit programs in this survey almost always include those sponsored by

employers, who pay some share of the cost. Except for unpaid family leave, postretirement medical

care and life insurance, dependent life insurance, supplemental life insurance, some salary

reduction plans, benefits for which the employees pay the full cost are excluded from the survey. 3 The definitions for paid sick leave and short-term disability (previously sickness and accident

insurance) were changed for the 1995 survey. Paid sick leave now only includes plans that either

specify a maximum number of days per year or unlimited days. Short-term disability now includes

all insured, self-insured, and state-mandated plans available on a per disability basis as well as the

unfunded per disability plans previously reported as sick leave. Sickness and accident insurance,

reported in years prior to the 1995 survey, only included insured, self-insured, and state-mandated

plans providing per disability benefits at less than full pay. 4 Includes defined benefit pension plans and defined contribution retirement plans. The total is

less than the sum of the individual items because many employees participated in both types of

plans. 5 The total is less than the sum of the individual items because some employees participated in

more than one type of plan. 6 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals. Where applicable, dash

indicates that no data were reported.
6

Table 2. Summary: Participation1 in selected employee benefit programs2, full-time employees, medium

and large private establishments, 1997

Benefit All

employees

Professional,

technical, and

related

employees

Clerical and

sales employees

Blue-collar

and

service

employees

Total number of employees .............. 38,409,120 10,659,842 9,168,433 18,580,845

Paid time off:

Holidays .......................................... 34,157,752 9,489,554 8,376,919 16,291,278

Vacations ........................................ 36,607,392 10,279,350 8,928,262 17,399,781

Personal leave ................................ 7,815,101 2,413,521 3,025,224 2,376,356

Funeral leave .................................. 30,932,869 8,970,382 7,819,932 14,142,555

Jury duty leave ............................... 33,329,622 9,791,186 8,135,270 15,403,166

Military leave ................................... 18,155,618 6,435,656 4,594,250 7,125,712

Family leave ................................... 734,936 320,538 271,212 143,186

Unpaid family leave .......................... 35,770,774 10,079,053 8,819,563 16,872,158

Disability benefits3:

Paid sick leave ................................ 21,437,761 7,773,925 6,680,840 6,982,996

Short-term disability ........................ 21,264,541 5,786,725 4,753,018 10,724,799

Long-term disability insurance ........ 16,625,435 6,644,191 4,728,568 5,252,676

Survivor benefits:

Life insurance ................................. 33,494,567 10,034,514 8,326,703 15,133,349

Accidental death and

dismemberment ............................ 26,036,523 7,418,536 6,415,033 12,202,954

Survivor income benefits ................ 1,980,391 538,286 257,470 1,184,635

Health care benefits:

Medical care ................................... 29,340,291 8,454,905 7,180,232 13,705,155

Dental care ..................................... 22,588,199 6,776,144 5,438,011 10,374,044

Vision care ...................................... 9,824,966 3,010,838 2,267,786 4,546,342

Outpatient prescription drug

coverage ....................................... 28,028,686 8,109,687 6,992,182 12,926,817

See footnotes at end of table.
7

Table 2. Summary: Participation1 in selected employee benefit programs2, full-time employees, medium

and large private establishments, 1997 — Continued

Benefit All

employees

Professional,

technical, and

related

employees

Clerical and

sales employees

Blue-collar

and

service

employees

Retirement income benefits:

All retirement4 ................................. 30,297,375 9,482,594 7,446,824 13,367,956

Defined benefit ........................... 19,202,331 5,497,836 4,504,026 9,200,470

Defined contribution5 .................. 21,722,430 7,464,248 5,734,345 8,523,836

Savings and thrift .................... 14,882,299 5,262,404 4,113,247 5,506,648

Deferred profit sharing ............ 5,084,445 1,562,409 1,350,731 2,171,304

Employee stock ownership ..... 1,721,781 663,905 512,925 544,951

Money purchase pension ....... 2,891,738 1,304,867 558,587 1,028,284

Stock bonus ............................ 542,826 79,694 286,378 176,754

Other ....................................... 206,957 75,395 7,244 124,318

Cash or deferred arrangements:

With employer contributions ....... 17,748,225 5,997,990 4,662,254 7,087,980

Salary reduction ...................... 16,756,141 5,927,415 4,573,348 6,255,378

Savings and thrift ................ 14,577,381 5,199,329 3,990,339 5,387,713

Deferred profit sharing ........ 1,313,810 370,068 444,629 499,114

Other ................................... 864,950 358,018 138,380 368,552

Deferral of profit sharing

allocation .............................. 1,186,634 116,675 169,496 900,463

No employer contributions .......... 3,476,891 1,225,123 770,542 1,481,226

1 Only current employees are counted as participants. Participants in insurance and retirement benefits have met minimum

length of service requirements and paid any required employee share of the benefit cost. Participants in all other benefits include

all employees in occupations offered the benefit. 2 Employee benefit programs in this survey almost always include those sponsored by employers, who pay some share of

the cost. Except for unpaid family leave, postretirement medical care and life insurance, dependent life insurance, supplemental

life insurance, some salary reduction plans, benefits for which the employees pay the full cost are excluded from the survey. 3 The definitions for paid sick leave and short-term disability (previously sickness and accident insurance) were changed for

the 1995 survey. Paid sick leave now only includes plans that either specify a maximum number of days per year or unlimited

days. Short-term disability now includes all insured, self-insured, and state-mandated plans available on a per disability basis as

well as the unfunded per disability plans previously reported as sick leave. Sickness and accident insurance, reported in years

prior to the 1995 survey, only included insured, self-insured, and state-mandated plans providing per disability benefits at less

than full pay. 4 Includes defined benefit pension plans and defined contribution retirement plans. The total is less than the sum of the

individual items because many employees participated in both types of plans. 5 The total is less than the sum of the individual items because some employees participated in more than one type of plan.

NOTE: Because of rounding, sums of individual items may not equal totals. Where applicable, dash indicates that no data were

reported.
8

Table 3. Other benefits: Eligibility for specified benefits, full-time

employees, medium and large private establishments, 1997

(In percent)

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Income continuation plans:

Severance pay ...................... 36 48 43 26

Supplemental unemployment

benefits ............................... 5 2 2 7

Family benefits:

Employer assistance for child

care ..................................... 10 14 10 7

Employer provided funds .. 6 8 6 5

On-site child care .............. 3 6 4 2

Off-site child care .............. 1 2 2 1

Adoption assistance ............. 10 16 12 6

Long-term care insurance ..... 7 10 11 4

Flexible workplace ................ 2 5 3 1 ( )

Health promotion programs:

Wellness programs ............... 36 44 36 32

Employee assistance

programs ............................ 61 75 63 52

Fitness center ....................... 21 31 19 16

Miscellaneous benefits:

Job-related travel accident

insurance ............................ 42 56 46 32

Nonproduction bonuses ........ 42 43 43 40

Subsidized commuting ......... 6 10 7 3

Education assistance:

Job-related ........................ 67 81 68 58

Not job-related .................. 20 25 18 18

Section 125 cafeteria benefits2: 52 70 62 36

Flexible benefit plans ............ 13 20 15 7

Reimbursement plans ........... 32 45 37 21

Premium conversion plans ... 7 5 11 7

1 Less than 0.5 percent. 2 Includes all types of plans under Internal Revenue Code Section 125. Flexible benefits

plans include reimbursement account features.

NOTE: Because of rounding, sums of individual items may not equal totals.
9

Table 4. Other benefits: Eligibility for specified benefits, full-time employees, medium and large

private establishments, 1997

Benefit All

employees

Professional,

technical, and

related

employees

Clerical and

sales employees

Blue-collar

and

service

employees

Total number of employees 38,409,120 10,659,842 9,168,433 18,580,845

Income continuation plans:

Severance pay ...................... 13,986,651 5,132,468 3,980,673 4,873,510

Supplemental unemployment

benefits ............................... 1,728,675 220,268 147,363 1,361,043

Family benefits:

Employer assistance for child

care ..................................... 3,668,841 1,444,649 943,028 1,281,164

Employer provided funds .. 2,281,671 853,937 574,301 853,433

On-site child care .............. 1,288,855 594,521 381,070 313,263

Off-site child care .............. 518,481 228,381 178,518 111,582

Adoption assistance ............. 3,989,972 1,667,505 1,137,646 1,184,822

Long-term care insurance ..... 2,875,465 1,095,118 1,015,981 764,366

Flexible workplace ................ 837,178 506,795 237,850 92,533

Health promotion programs:

Wellness programs ............... 13,973,160 4,652,363 3,346,315 5,974,482

Employee assistance

programs ............................ 23,331,835 7,978,011 5,755,125 9,598,699

Fitness center ....................... 7,926,712 3,275,763 1,762,339 2,888,611

Miscellaneous benefits:

Job-related travel accident

insurance ............................ 16,149,337 5,951,804 4,196,681 6,000,851

Nonproduction bonuses ........ 15,949,284 4,554,277 3,922,187 7,472,819

Subsidized commuting ......... 2,296,335 1,111,112 654,010 531,214

Education assistance:

Job-related ........................ 25,663,667 8,653,038 6,247,653 10,762,976

Not job-related .................. 7,788,806 2,703,010 1,694,646 3,391,150

Section 125 cafeteria benefits1: 19,915,360 7,493,138 5,728,282 6,693,940

Flexible benefit plans ............ 4,855,772 2,120,532 1,385,956 1,349,283

Reimbursement plans ........... 12,185,500 4,835,339 3,355,405 3,994,757

Premium conversion plans ... 2,874,089 537,267 986,922 1,349,900

1 Includes all types of plans under Internal Revenue Code Section 125. Flexible benefits plans include reimbursement

account features.

NOTE: Because of rounding, sums of individual items may not equal totals.
10

Table 5. Plan administration: Type of plan sponsor for selected employee benefit programs,

full-time employees, medium and large private establishments, 1997

(In percent)

Plan sponsor Medical

care

Life

insurance

Funded

short-term

disability1

Long-term

disability

insurance

Defined

benefit

pension

Savings

and thrift

All participants

Total2 .............................. 100 100 100 100 100 100

Single employer .................... 95 97 75 94 89 99

Multiemployer3 ...................... 5 3 7 1 9 4 ( )

Mandated benefits5 .............. - 4 ( ) 18 - 1 -

Employer association6 .......... 4 ( ) 4 ( ) 4 ( ) 4 ( ) 4 () 1

Not determinable .................. - - - 5 - -

Professional, technical, and

related

Total2 .............................. 100 100 100 100 100 100

Single employer .................... 98 99 74 93 96 99

Multiemployer3 ...................... 2 1 3 4 () 3 4 ( )

Mandated benefits5 .............. - 4 ( ) 23 - 1 -

Employer association6 .......... 4 ( ) 4 ( ) 4 ( ) 4 ( ) 4 () 1

Not determinable .................. - - - 7 - -

Clerical and sales

Total2 .............................. 100 100 100 100 100 100

Single employer .................... 97 98 76 96 95 99

Multiemployer3 ...................... 2 2 3 1 5 4 ( )

Mandated benefits5 .............. - 4 ( ) 21 - 4 () -

Employer association6 .......... 4 ( ) 4 ( ) 4 ( ) 4 () - 4 ( )

Not determinable .................. - - - 3 - -

Blue-collar and service

Total2 .............................. 100 100 100 100 100 100

Single employer .................... 92 94 75 94 83 99

Multiemployer3 ...................... 8 6 11 1 16 4 ( )

Mandated benefits5 .............. - - 14 - 1 -

Employer association6 .......... 4 ( ) 4 ( ) 4 ( ) 4 ( ) 4 ( ) 4 ( )

Not determinable .................. - - - 5 - -

1 Includes participants in funded short-term disabliity plans only. See chapter 3 for further discussion of funded and

unfunded short-term disability plans. 2 Totals may include participants in plans for which the sponsor was not determinable. 3 Individual employers in the same or in a related industry contributing a negotiated amount to a trust fund providing

benefits for employees covered under a collective bargaining agreement. 4 Less than 0.5 percent. 5 The majority of the participants with mandated short-term disability benefits were covered by State temporary

disability insurance plans. The remaining employees were covered by the Railroad Unemployment Insurance Act. 

Mandated defined benefit pension plan participants were covered by Railroad Retirement Tier 2. 6 Band of small employers in a common trade or business, for example, savings and loan associations. The plan

sponsored by the association is not negotiated with the employees.

NOTE: Because of rounding, sums of individual items may not equal totals. Where applicable, dash indicates that no data

were reported.
11

Table 6. Medical care benefits: Percent of full-time employees participating in employer-sponsored

medical benefits by type of medical plan and requirement for employee contributions, medium and

large private establishments, 1991, 1993, 1995, and 1997

Type of plan and contribution

requirement 1991 1993 1995 1997

Type of plan

Total ...................................................... 100 100 100 100

Traditional fee-for-service plans1 ........ 67 50 37 27

Preferred provider organizations2 ....... 16 26 34 40

Health maintenance organizations3 .... 17 23 27 33

Other4 ................................................. 5 () 1 1 1

Requirement to contribute for single

coverage

Total ...................................................... 100 100 100 100

Employee contribution not required .... 49 37 33 31

Employee contribution required .......... 51 61 67 69

Not determinable ................................ 5 () 2 - -

Requirement to contribute for family

coverage

Total ...................................................... 100 100 100 100

Employee contribution not required .... 31 21 22 20

Employee contribution required .......... 69 76 78 80

Not determinable ................................ 5 () 3 - 5 ( )

1 These plans pay for specific medical procedures as expenses

are incurred. 2 Groups of hospitals and physicians that contract to provide

comprehensive medical services at prearranged prices. To

encourage use of organization members, the health plan limits

reimbursement rates when participants use nonmember services. 3 Includes Federally qualified and other HMOs that deliver

comprehensive health care on a prepayment rather than

fee-for-service basis.

4 Includes exclusive provider orgainizations, which are groups of

hospitals and physicians that contract to provide comprehensive

medical services. Participants are required to obtain services from

members of the organization in order to receive plan benefits. 5 Less than .5 percent.

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

totals. Dash indicates no data were reported.

Table 7. Medical care benefits: Percent of full-time employees participating in

employer-sponsored medical benefits by availability of selected features, medium and large

private establishments, 1991, 1993, 1995, and 1997

Preventive care feature 1991 1993 1995 1997

Physical exams ......................... 30 42 56 63

Hearing care ............................. 24 31 33 35

Well-baby care .......................... 36 48 60 66

Immunizations .......................... 30 37 47 52
12

Table 8. Medical care benefits: Average monthly employee contributions for single and family

medical coverage, by type of plan,1 full-time employees in medium and large private

establishments, 1991, 1993, 1995, and 1997

Type of plan All

employees

Professional,

technical, and

related

employees2

Clerical

and sales

employees3

Blue-collar

and service

employees4

1991

Individual coverage

All plans .................................... $26.60 $26.35 $28.00 $25.82

Non-HMO plans ........................ 25.84 25.65 26.98 25.21

HMO plans ................................ 29.23 28.58 31.58 28.07

Family coverage

All plans .................................... 96.97 96.43 107.86 90.78

Non-HMO plans ........................ 91.52 92.66 103.99 83.67

HMO plans ................................ 118.19 110.08 121.40 121.97

1993

Individual coverage

All plans .................................... 31.55 31.87 33.84 29.90

Non-HMO plans ........................ 31.48 31.99 33.90 29.74

HMO plans ................................ 31.77 31.60 33.67 30.46

Family coverage

All plans .................................... 107.42 113.95 115.42 98.72

Non-HMO plans ........................ 102.48 112.58 112.08 91.70

HMO plans ................................ 121.84 116.94 124.98 124.14

1995

Individual coverage

All plans .................................... 33.92 34.84 35.59 32.22

Non-HMO plans ........................ 32.91 33.19 33.71 32.32

HMO plans ................................ 36.18 37.89 38.90 31.88

Family coverage

All plans .................................... 118.33 120.42 127.42 111.56

Non-HMO plans ........................ 112.18 116.21 119.84 105.96

HMO plans ................................ 132.66 128.28 141.12 129.85

1997

Individual coverage

All plans .................................... 39.14 37.19 39.38 40.43

Non-HMO plans ........................ 41.69 40.25 40.80 43.10

HMO plans ................................ 34.28 32.98 36.37 34.23

Family coverage

All plans .................................... 130.07 124.62 135.27 130.85

Non-HMO plans ........................ 132.37 127.76 134.01 134.22

HMO plans ................................ 125.79 120.16 137.87 123.61

1 Non-HMO plans include traditional fee-for-service

plans, preferred provider plans, and exclusive provider

organization plans. 2 Includes professional, technical, executive, and

administrative occupations. 3 Includes clerical, administrative support, and sales

occupations. 4 Includes production, craft, repair, laborer, and

service occupations.

 NOTE: Average contributions are for plans stating a flat

monthly cost.
13

Table 10. Retirement plans: Percent of full-time employees participating in retirement plans and tax

deferred retirement plans, medium and large private establishments, 1991,1993, 1995, and 1997

(in percent)

1991 1993 1995 1997

All retirement1 ..................................... 78 78 80 79

Defined benefit ................................. 59 56 52 50

Defined contribution .......................... 48 49 55 57

Cash or deferred arrangements

401(k) plans .................................. 44 43 54 55

1 Includes defined benefit and defined contribution plans. Some employees participate in both types, but are counted just

once in all retirement.

Table 9. Non-health maintenance organizations: Average major medical provisions, full-time employees

in medium and large private establishments, 1995 and 1997

Average limit All

employees

Professional,

technical, and

related

employees1

Clerical

and sales

employees2

Blue-collar

and service

employees3

1995

Annual individual deductible4 ................... $247 $264 $273 $229

Annual out-of-pocket expense

maximum5

Individual ................................................ $1,358 $1,419 $1,354 $1,328

Family ..................................................... $2,858 $2,894 $2,948 $2,801

Lifetime maximum6 ($ in millions) ............. $1.0 $1.2 $1.0 $0.9

1997

Annual individual deductible4 ................... $268 $310 $298 $237

Annual out-of-pocket expense

maximum5

Individual ................................................ $1,578 $1,565 $1,924 $1,432

Family ..................................................... $3,101 $3,375 $3,392 $2,820

Lifetime maximum6 ($ in millions) ............. $1.1 $1.2 $1.2 $1.0

1 Includes professional, technical, executive, and

administrative occupations. 2 Includes clerical, administrative support, and sales

occupations. 3 Includes production, craft, repair, laborer, and service

occupations. 4 Amount of covered expenses that an individual must

pay before any expenses are paid by the plan. Further

deductibles for specific medical services are excluded. 5 Amount of covered expenses that an individual or

family must pay, exclusive of deductibles, before the plan

pays 100 percent of additional expenses. Expenses for

certain medical services, such as mental health care, may not

be subject to this limit. 6 Total amount of covered expenses the plan will pay for

each individual. When the amount varied for employees and

dependants, the employee amount was used.

 NOTE: Average limits are calculated only for participants in

plans that specify the limit(s).
14

Chapter 2.

Work Schedules, Paid

Time off, and Family Leave

Time off with pay is available to employees in several

different forms—from a few days of personal leave

to several weeks for vacations. The Employee Benefits

Survey covers the following paid time-off benefits: Holidays

and vacations; and personal, funeral, jury-duty, and military

leave. Paid and unpaid family leave are also surveyed.

(Information on paid sick leave is discussed under disability

benefits in chapter 3.) Definitions of major plan types, key

provisions, and related terms follow.

Work schedules

Work schedules determine the starting and stopping time of

work for individuals or groups of employees. Most full-time

employees are scheduled to work five 8-hour days a week.

Common plan types follow.

Fixed work schedule. Under these schedules, the start and

end times for employees do not vary by day, and days worked

do not vary by week.

Flexible work schedule. Employees on flexible work schedules have the opportunity to begin and end work within a

range of hours. Limits on the amount of flexibility vary from

plan to plan, but generally employees have to be at work

during midday core hours.

Rotating work schedule. Start and end times for employees

on rotating schedules do not vary day by day, but days worked

do vary by week. For example, firefighters might work for

24 hours and be off for 48 hours.

Non-fixed work schedule. Under these schedules, employees’ hours of work vary from day to day. Examples of occupations that normally have non-fixed work schedules include

over-the-road truckdrivers and medical doctors.

Paid holidays

Holidays are days of special religious, cultural, or patriotic

significance on which work and business ordinarily ceases.

Workers usually receive time-off from work, at full or partial

pay, for a specified number of holidays each year. Some employers also include “personal holidays,” such as an

employee’s Birthday or “floating holidays” that vary from

year-to-year as determined by the employer or employee.

When a holiday falls on a scheduled day off, such as a Saturday or Sunday, another day off is often substituted. The following are common paid holidays:

New Years Day

Memorial Day

Independence Day

Labor Day

Thanksgiving Day

Christmas Day

Paid vacations

Vacations are time-off from work, normally taken in days or

weeks. Vacation benefits usually start after a length-of-service requirement is fulfilled. The amount of time-off may

vary based on an employee’s service with the employer or it

may be a fixed number of days per year. The time-off is usually paid at an employee’s normal hourly rate or salary. Common vacation provisions follow.

Carryover. Vacation plans with carryover provisions allow

employees to move a certain number of unused vacation days

into the next leave year. Any unused vacation days above the

carryover limit are lost.

Cash-in. Cash-in provisions allow employees covered by such

plans to receive their normal daily earnings or some other

amount for each unused vacation day up to a certain number

of vacation days per year. Like carryover provisions, any

unused vacation days above the cash-in limit are lost.

Paid personal leave

Personal leave allows an employee to be paid while absent

from work for a variety of reasons not covered by other specific leave plans. Employees granted personal leave are usually eligible for 1 to 5 days per year and a few employees are

provided as much personal leave as needed.

Paid funeral leave

Funeral leave provides time off from work due to a death in

the family. Eligible employees usually receive a set number

of days per occurrence. However, some plans vary the number of days off depending upon the employee’s relationship

to the deceased. For example, a plan may provide 3 days off

for the death of a spouse, parent, or child, but only 1 day off

for the death of other relatives. For employees who do not

have a formal funeral leave plan, some employers may pro-
15

Work Schedules, Paid Time off, and Family Leave

vide an informal benefit or allow employees to use other types

of paid leave such as paid sick leave days to attend a funeral.

Paid jury duty leave

Jury duty leave provides time away from work when an employee is summoned to serve as a juror. Paid time off for jury

duty is usually provided “as needed;” employer

payments commonly make up the difference between

the employer’s regular pay and the court’s jury allowance.

Paid military leave

Military leave provides time away from work so employees

can fulfill military commitments. Pay for military leave is

either regular pay or the difference between employees’ regular earnings and the amount they receive from the military.

Family leave

Family leave includes a variety of family-related paid or

unpaid leave for maternity, adoption, care of a newborn child,

and family illness. Also included is short-term leave, generally paid time-off from work for reasons such as a child’s

medical appointments or parent-teacher conferences. Paid

family leave benefits are rare.

The Family and Medical Leave Act of 1993 (FMLA) is a

Federal law entitling employees up to 12 weeks of jobprotected, unpaid leave during any 12-months. Such leave

may be for the birth and care of the employee’s child or

placement for adoption or foster care of a child with the

employee, care for an immediate family member, or the

employee’s own serious health condition. The FMLA applies

to private sector employers engaged in commerce who have

50 or more employees each working at least 20 calendar

weeks or more in the current or proceeding calendar year.

State and local governments, including schools and most

Federal Government employees, are also covered.
16

Table 11. Work schedule: Percent of full-time employees by

hours scheduled per week and per day,1 medium and large

private establishments, 1997

Work schedule

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

work schedule .................... 38,409 10,660 9,168 18,581

Percent

Total ................................ 100 100 100 100

Hours per week:

Under 30 ....................... 1 2 2 () 2

30 .................................. 1 2 ( ) 2 () 1

Over 30 and under 35 ... 1 2 () 1 2 ( )

35 .................................. 4 4 5 3

Over 35 and under 37.5 1 1 1 2 ( )

37.5 ............................... 5 7 8 3

Over 37.5 and under 40 2 2 3 1

40 .................................. 83 80 79 86

Over 40 ......................... 3 4 2 3

Hours per day:

Under 7 ......................... 2 2 1 3

7 .................................... 4 4 5 3

Over 7 and under 8 ....... 7 9 12 4

8 .................................... 82 80 80 85

Over 8 and under 9 ....... 2 ( ) 2 ( ) 2 () 1

9 .................................... 1 1 2 () 1

Over 9 and under 10 ..... 2 ( ) 2 () 1 2 ( )

10 .................................. 1 1 1 1

Over 10 ......................... 2 2 2 () 3

1 Work schedule data includes paid lunch and paid rest periods. 2 Less than 0.5 percent.

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

Table 12. Work schedule: Percent of full-time employees by

type of work schedule, medium and large private

establishments, 1997

Work schedule

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Participants (in thousands) 38,409 10,660 9,168 18,581

Percent

 Total ............................... 100 100 100 100

With fixed work schedule ...... 95 94 97 95

With flexible work schedule .. 1 3 1 1 ( )

With rotating work schedule 1 1 1 () 2

With non-fixed work schedule 1 2 1 2

Other ..................................... 1 ( ) 1 ( ) 1 ( ) 1 ( )

Data not available ................. 1 1 1 1 ( )

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
17

Table 13. Paid holidays and vacations: Average number of days for

full-time employees, medium and large private establishments, 1997

Item

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Paid holidays .............................................. 9.3 9.6 8.8 9.4

Paid vacation by minimum length of

service requirement:1

At 1 year2 .............................................. 9.6 12.4 9.9 7.9

At 3 years ............................................. 11.5 13.3 11.4 10.5

At 5 years ............................................. 13.8 16.0 14.2 12.4

At 10 years ........................................... 16.9 18.9 17.0 15.6

At 15 years ........................................... 18.8 20.7 19.4 17.4

At 20 years ........................................... 20.3 21.9 20.5 19.2

At 25 years ........................................... 21.5 23.1 21.7 20.3

At 30 years3 .......................................... 21.7 23.4 22.0 20.6

1 Employees are either granted a specific number of days after completion of the

indicated length of service, or accrue days during the next 12-month period. The total

number of days are assumed available for use immediately upon completion of the

described length-of-service interval. 2 Employees receiving vacation days, but none at 1 year of service, were included

only for the service periods for which they receive vacations. 3 The average (mean) was essentially the same for longer lengths of service.

NOTE: Computation of average included partial days and excluded workers with zero

holidays or vacation days. Methods used to calculate the average number of paid

holidays have been revised, to count partial holidays more precisely. The average

holidays in this table are comparable to those reported in the 1995 survey of medium and

large private establishments, but are not comparable to those reported in 1991 and 1993.
18

Table 15. Paid vacations: Percent of full-time employees by

number of paid vacation days provided for selected periods of

service, medium and large private establishments, 1997

Vacation policy

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid vacations ..................... 36,607 10,279 8,928 17,400

Percent

Total with paid vacations1 ......... 100 100 100 100

Vacation days by minimum

length-of-service

requirement2

After 1 year of service:

Under 5 days ................ 1 3 () 1 2

5 days ........................... 31 8 24 49

Over 5 and under 10

days ........................ 3 2 2 5

10 days ......................... 45 54 57 34

Over 10 and under 15

days ........................ 4 6 4 3

15 days ......................... 4 10 3 2

Over 15 and under 20

days ........................ 2 4 1 1

20 days ......................... 2 4 1 1

Over 20 days ................ 5 9 5 3

After 3 years of service:

Under 5 days ................ 3 () - 3 ( ) 3 ( )

5 days ........................... 5 2 3 9

Over 5 and under 10

days ........................ 3 2 1 5

10 days ......................... 65 53 73 67

Over 10 and under 15

days ........................ 7 7 5 9

15 days ......................... 8 14 7 4

Over 15 and under 20

days ........................ 2 4 1 1

20 days ......................... 2 6 2 1

Over 20 days ................ 5 10 5 3

After 5 years of service:

Under 5 days ................ 3 () - - 3 ( )

5 days ........................... 2 1 1 3

Over 5 and under 10

days ........................ 2 1 1 3

10 days ......................... 36 21 32 48

Over 10 and under 15

days ........................ 6 6 4 7

15 days ......................... 37 41 48 29

Over 15 and under 20

days ........................ 3 6 2 2

20 days ......................... 5 10 4 2

Over 20 days ................ 7 13 7 4

After 10 years of service:

Under 5 days ................ 3 () - - 3 ( )

5 days ........................... 2 1 1 3

See footnotes at end of table.

Table 14. Paid holidays: Percent of full-time employees by

number of paid holidays provided each year, medium and

large private establishments, 1997

Number of days

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid holidays ....................... 34,158 9,490 8,377 16,291

Percent

Total with paid holidays ............ 100 100 100 100

Less than 6 days .............. 4 2 3 7

6 days ............................... 13 8 19 14

6.1-6.9 days ...................... 1 ( ) 1 ( ) 1 ( ) 1 ( )

7 days ............................... 8 7 8 8

7.1-7.9 days ...................... 1 ( ) 1 () 1 1 ( )

8 days ............................... 12 13 12 10

8.1-8.9 days ...................... 1 ( ) 1 ( ) 1 ( ) 1 ( )

9 days ............................... 11 12 12 11

9.1-9.9 days ...................... 1 ( ) 1 ( ) 1 ( ) 1 ( )

10 days ............................. 21 25 24 18

10.1-10.9 days .................. 1 ( ) 1 () 1 -

11 days ............................. 13 14 11 14

11.1-11.9 days .................. 1 () 1 1 ( ) 1 ( )

12 days ............................. 7 9 5 7

12.1-12.9 days .................. 1 ( ) 1 ( ) 1 ( ) 1 ( )

13 days ............................. 2 3 1 3

13.1-13.9 days .................. 1 ( ) 1 ( ) 1 ( ) 1 ( )

14 days ............................. 1 1 ( ) 1 () 1

More than 14 days ............ 4 3 1 6

Number of days not available 1 ( ) 1 () 1 1 ( )

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
19

Table 15. Paid vacations: Percent of full-time employees by

number of paid vacation days provided for selected periods of

service, medium and large private establishments, 1997 —

Continued

Vacation policy

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

After 10 years of service:

Over 5 and under 10

days ........................ 1 3 ( ) 3 () 2

10 days ......................... 7 4 5 11

Over 10 and under 15

days ........................ 3 1 2 4

15 days ......................... 48 37 55 50

Over 15 and under 20

days ........................ 6 4 4 9

20 days ......................... 21 31 22 15

Over 20 and under 25

days ........................ 4 9 3 1

25 days ......................... 1 2 1 3 ( )

Over 25 days ................ 6 10 5 4

After 15 years of service:

5 days ........................... 2 1 1 3

Over 5 and under 10

days ........................ 1 3 ( ) 3 () 1

10 days ......................... 6 2 4 9

Over 10 and under 15

days ........................ 2 1 1 3

15 days ......................... 21 14 19 26

Over 15 and under 20

days ........................ 4 3 2 4

20 days ......................... 50 52 60 44

Over 20 and under 25

days ........................ 4 8 3 2

25 days ......................... 3 4 2 2

Over 25 and under 30

days ........................ 2 4 2 1

30 days ......................... 1 2 1 3 ( )

Over 30 days ................ 4 7 3 2

After 20 years of service:

5 days ........................... 2 1 1 3

Over 5 and under 10

days ........................ 3 ( ) 3 ( ) 3 () 1

10 days ......................... 6 2 4 9

Over 10 and under 15

days ........................ 1 1 3 () 2

15 days ......................... 11 8 12 12

Over 15 and under 20

days ........................ 2 1 2 2

20 days ......................... 48 49 57 44

Over 20 and under 25

days ........................ 4 8 3 3

25 days ......................... 15 15 13 17

Over 25 and under 30

days ........................ 3 6 3 2

30 days ......................... 1 2 1 1

Over 30 days ................ 4 7 4 3

See footnotes at end of table.

Table 15. Paid vacations: Percent of full-time employees by

number of paid vacation days provided for selected periods of

service, medium and large private establishments, 1997 —

Continued

Vacation policy

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

After 25 years of service:

5 days ........................... 2 1 1 3

Over 5 and under 10

days ........................ 3 ( ) 3 ( ) 3 () 1

10 days ......................... 6 2 4 9

Over 10 and under 15

days ........................ 1 1 3 () 2

15 days ......................... 10 7 11 11

Over 15 and under 20

days ........................ 1 1 1 1

20 days ......................... 33 34 37 31

Over 20 and under 25

days ........................ 4 7 2 3

25 days ......................... 29 30 32 26

Over 25 and under 30

days ........................ 2 3 2 1

30 days ......................... 5 4 3 6

Over 30 days ................ 5 9 4 3

After 30 years of service4

5 days ........................... 2 1 1 3

Over 5 and under 10

days ........................ 3 ( ) 3 ( ) 3 () 1

10 days ......................... 6 2 4 9

Over 10 and under 15

days ........................ 1 1 3 () 2

15 days ......................... 10 7 11 11

Over 15 and under 20

days ........................ 1 1 1 1

20 days ......................... 33 33 36 31

Over 20 and under 25

days ........................ 4 7 2 2

25 days ......................... 26 26 30 24

Over 25 and under 30

days ........................ 2 3 2 2

30 days ......................... 7 8 6 7

Over 30 days ................ 6 10 5 4

Vacation policy not available .... 1 1 1 1

1 Employees receiving no paid vacations in their early years of service

are included in the overall percentage of workers provided paid vacations;

however, they are disregarded in computing the distributions by

length-of-service up to the service period at which they become eligible for

vacations. 2 Employees either are granted a specific number of days after

completion of the indicated length-of-service, or accrue days during the next

12 month period. The total number of days are assumed available for use

immediately upon completion of the described length-of-service interval. 3 Less than 0.5 percent. 4 Provisions were virtually the same after longer years of service.

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

Where applicable, dash indicates no employees in this category.
20

Table 16. Paid vacations: Percent of full-time employees by

method of payment for vacation plans, medium and large

private establishments, 1997

Type of plan

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid vacation ...................... 36,607 10,279 8,928 17,400

Percent

Total .......................................... 100 100 100 100

Regular salaries

or earnings ...................... 96 98 98 93

Percent of annual earnings

plans ............................... 3 1 ( ) 1 () 5

Other ..................................... 1 ( ) 1 ( ) 1 () 1

Data not available ................. 1 1 1 1

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.

Table 17. Paid vacations: Percent of full-time employees by

length of service required to take vacation, medium and large

private establishments, 1997

Length-of-service requirement

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid vacations ..................... 36,607 10,279 8,928 17,400

Percent

Total with paid vacations .......... 100 100 100 100

With service requirement ...... 87 78 88 91

1 month ............................. 9 16 9 6

2 months ........................... 1 2 1 1

3 months ........................... 8 8 9 8

4-5 months ........................ 1 ( ) 1 () 1 1 ( )

6 months ........................... 25 29 30 20

7-11 months ...................... 1 1 1 1

1 year ................................ 42 23 37 55

Over 1 year ....................... 1 () - 1 ( ) 1 ( )

Without service requirement 12 21 11 8

Service requirement not

determinable ................... 1 1 1 1

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
21

Table 18. Paid vacations: Percent of full-time employees by

unused vacation policy, medium and large private

establishments, 1997

Type of plan

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid vacations ..................... 36,607 10,279 8,928 17,400

Percent

Total with paid vacations .......... 100 100 100 100

Carryover only ...................... 23 36 27 14

Cash-in only .......................... 13 6 8 19

Carryover and cash-in .......... 10 18 9 7

Unused benefit lost ............... 49 38 52 55

Data not available ................. 5 3 5 5

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

Where applicable, dash indicates no employees in this category.

Table 19. Paid vacations: Average number of days for full-time employees by carryover and cash-in

provisions, medium and large private establishments, 1997

Paid vacation by minimum

length of service requirement1 All plans

Carryover,

cash-in, or

both

Carryover

only

Cash-in

only

Carryover

and

cash-in

No

caryover or

cash-in

All employees

After 1 year2 ................. 9.6 11.1 11.3 7.5 15.0 8.4

After 3 years ................. 11.5 12.6 12.4 10.3 15.9 10.6

After 5 years ................. 13.8 15.2 15.1 12.1 19.0 12.6

After 10 years ............... 16.9 18.3 18.0 15.6 22.3 15.6

After 15 years ............... 18.8 20.3 20.0 17.8 23.9 17.6

After 20 years ............... 20.3 21.8 21.4 19.6 25.1 19.0

After 25 years ............... 21.5 22.9 22.7 20.7 25.9 20.2

After 30 years3 .............. 21.7 23.2 23.1 20.9 26.3 20.4

1 Employees either are granted a specific number of days after completion of the indicated length of service, or accrue

days during the next 12 month period. The total number of days are assumed available for use immediately upon

completion of the described length-of-service interval. 2 Employees receiving vacation days, but none at 1 year of service, were included only for the service periods for which

they receive vacations. 3 The average (mean) was essentially the same for longer lengths of service.

NOTE: Because of rounding, sums of individual items may not equal totals. Where applicable, dash indicates that no data

were reported.
22

Table 20. Paid personal leave: Percent of full-time employees

by number of paid personal leave days available per year,

medium and large private establishments, 1997

Number of days

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid personal leave ............ 7,815 2,414 3,025 2,376

Percent

Total with paid personal leave .. 100 100 100 100

1 day ..................................... 14 15 10 17

2 days ................................... 31 27 40 24

3 days ................................... 17 18 13 22

4 days ................................... 13 12 16 10

5 days ................................... 11 13 9 11

More than 5 days .................. 8 8 7 8

No maximum specified1 ........ 5 7 4 5

Number of days not available 1 1 1 2

Average

 Average days per year ............ 3.5 3.5 3.3 3.6

1 Personal leave provided as needed.

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

Table 21. Paid funeral leave: Percent of full-time employees

by number of paid funeral leave days available per occurrence,

medium and large private establishments, 1997

Number of days

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid funeral leave ............... 30,933 8,970 7,820 14,143

Percent

 100 100 100 100

Total with paid funeral leave

1 day ................................. 1 1 1 2

2 days ............................... 3 1 1 5

3 days ............................... 71 69 68 74

4 days ............................... 4 4 5 3

5 days ............................... 15 20 15 12

More than 5 days .............. 1 ( ) 1 ( ) 1 ( ) 1 ( )

No maximum specified2 .... 5 5 8 3

Number of days not

available ..................... 1 1 1 2

Number of days varies by

relationship to

deceased3 .................. 31 33 30 30

Average

 Average days per occurrance .. 3.7 3.9 3.6 3.7

1 Less than 0.5 percent. 2 Varies by length of service 3 Personal leave provided as needed.

NOTE: Because of rounding, sums of individual items may not equal totals.
23

Table 24. Unpaid family leave1: Percent of full-time employees by duration

of benefits, medium and large private establishments, 1997

Duration All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Number (in thousands) with

unpaid family leave ................. 35,771 10,079 8,820 16,872

Percent

Total with unpaid family leave .. 100 100 100 100

Under 12 weeks ................ 1 1 1 1

12 weeks .......................... 89 88 87 91

Over 12 weeks .................. 10 12 12 8

Average

Average weeks ......................... 14.00 14.77 14.29 13.38

1 The maximum number of weeks available was included in the distribution of unpaid

family leave weeks.

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

Table 22. Paid jury-duty leave: Percent of full-time employees

by number of paid jury-duty leave days available per

occurrence, medium and large private establishments, 1997

Number of days

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid jury-duty leave ............ 33,330 9,791 8,135 15,403

Percent

Total .......................................... 100 100 100 100

Under 10 days ...................... 4 4 2 5

10 days ................................. 7 5 7 8

Over 10 ................................ 6 6 4 7

No maximum specified1 ........ 83 85 86 80

Number of days not available 2 ( ) 2 ( ) 2 ( ) 2 ( )

1 Jury-duty leave is provided as needed. 2 Less than 0.5 percent.

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

Table 23. Paid military leave: Percent of full-time employees

by number of paid military leave days available per

occurrence, medium and large private establishments, 1997

Number of days

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid military leave ............... 18,156 6,436 4,594 7,126

Percent

Total .......................................... 100 100 100 100

Under 10 days ...................... 2 3 3 1

10 days ................................. 52 53 57 49

Over 10 days ........................ 23 24 17 27

No maximum specified1 ........ 22 19 23 23

Number of days not available 1 1 2 () 1

Average

Average days per year ............. 15.3 17.2 14.5 14.1

1 Military leave is provided as needed. 2 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
24

Chapter 3.

Disability Benefits

Protection against loss of income due to a nonoccupational illness or injury is available to manyworkers. EBS collects data on three types of disability

benefits: Paid sick leave, short-term disability (STD), and

long-term disability (LTD). Definitions of major plan types,

key provisions, and related terms follow.

Paid sick leave

Sick leave benefits provide paid time-off while an employee

temporarily cannot work due to a nonwork-related illness or

injury. Common plan types and provisions follow.

Annual plans. These plans specify a fixed number of sick

days allowable per year. Annual plans usually provide uniform benefits for all employees; however, benefits may increase with seniority, such as 12 days after 1 year of service,

18 days after 5 years, and 21 days after 10 years.

“As needed” plans. These plans do not specify a maximum

number of days per year.

Carryover provisions. Sick leave plans with a carryover provision allow employees to accumulate unused sick leave from

year to year. Most cumulative plans have a limit on the number of days that can be carried over to the following year.

Cash-in provisions. Sick leave plans with a cash-in provision

allow employees to turn in unused sick days for compensation,

such as 1 day’s pay for each unused sick leave day.

Short-term disability

Short term disability (STD) benefits provide for salary replacement, most often partial, for a 6- to 12-month period.3

Benefits are either paid as a percentage of employee earnings, such as 50 percent of pre-disability earnings, or a flat

dollar amount. STD benefits can vary by the amount of predisability earnings, length of service with the establishment,

or length of disability. Common plan types and provisions

follow.

Funded plans. These plans are insured through a commercial insurance company with the employer paying all or a

portion of the premiums.

Self-insured plans. Under these plans, the employer assumes

the role of an insurance company and is responsible for paying

all benefit claims by using money set aside for that purpose.

Self-insured plans are often administered through an

Administrative Services Only (ASO) contract with an

insurance company or other third party.

Unfunded plans. When employers pay expenses out of current operating revenue and do not set money aside, as with a

self-insured plan, the plan is “unfunded.” Such plans were

reported as sick leave prior to the 1995 Employee Benefits

Survey.4

State temporary disability plans. Workers in New York and

New Jersey are covered by mandatory temporary disability

plans that are at least partially employer financed. Both of

these State plans pay benefits based on a proportion of the

workers’ earnings for up to 26 weeks, with a limit on the

weekly benefit. Hawaii requires that employers provide a

minimum level of temporary disability income protection for

up to 26 weeks.

Waiting period provisions. Unlike sick leave, short-term disability plans usually require a waiting period, for example 7

days, before benefits are payable. Waiting periods may be

shortened or eliminated if a participant is disabled due to an

injury or is hospitalized. The waiting period is effectively

eliminated when short-term disability benefits are coordinated

with sick leave, because short-term disability benefits usually begin once sick leave benefits end.

Long-term disability

Long-term disability (LTD) benefits provide a monthly cash

amount to eligible employees who, due to nonwork-related

illness or injury, are unable to work for an extended period

of time. Benefits are usually paid as a fixed percent of predisability earnings up to a set limit. Most participants have a

waiting period of 3 or 6 months, or until sick leave and STD

benefits end, before benefit payments begin. LTD payments

generally continue until retirement, a specified age, or for a

period that varies by the employee’s age at the time of disability.

 3 Some sick leave plans may provide days off at partial pay in addition to

those at full pay. All sick leave tables exclude days at partial pay.

 4 For more information on short-term disability benefits prior to the 1995

Employee Benefits Survey, see Hilery Simpson, “Short-term Disability Benefits,” Compensation and Working Conditions, summer 1997, pp. 52-56.

— Endnotes —
25

Table 25. Paid sick leave: Percent of full-time employees by

type of provision, medium and large private establishments,

1997

Provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid sick leave .................... 21,438 7,774 6,681 6,983

Percent

Total with paid sick leave .. 100 100 100 100

Sick leave provision:

Annual number of days1 ....... 91 87 92 93

As needed2 ........................... 6 9 6 4

Other basis3 .......................... 3 3 2 3

Policy not available ............... 4 ( ) 4 ( ) 4 ( ) 4 ( )

1 Employees earn or accrue a specified number of sick leave days per

year. This number may vary by length of service. 2 Plan does not specify maximum number of days. 3 Includes formal plans that change from a specified number of days per

year to a specified number of days per absence after a certain service period. 4 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
26

Table 26. Paid annual sick leave: Percent of full-time employees by number

of days, medium and large private establishments, 1997

Sick leave policy1 All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Number (in thousands) with

paid annual sick leave ........ 19,454 6,792 6,147 6,515

Percent

Total with paid annual sick

leave2 ................................. 100 100 100 100

After 1 year of service:

Total .................................. 96 98 98 93

Under 5 days .................... 7 3 5 13

5 and under 10 days ......... 43 33 51 46

10 and under 15 days ....... 35 45 32 27

15 and under 30 days ....... 8 12 8 5

30 and under 60 days ....... 2 2 1 2

60 and under 120 days ..... 1 1 3 ( ) 3 ( )

120 and under 180 days ... 3 () 1 3 ( ) 3 ( )

180 days or more .............. 3 ( ) 3 ( ) 3 ( ) 3 ( )

After 3 years of service:

Total .................................. 99 100 99 97

Under 5 days .................... 8 3 5 15

5 and under 10 days ......... 43 32 51 46

10 and under 15 days ....... 33 42 30 26

15 and under 30 days ....... 7 9 5 5

30 and under 60 days ....... 7 9 7 4

60 and under 120 days ..... 2 3 1 1

120 and under 180 days ... 3 () 1 3 ( ) 3 ( )

180 days or more .............. 3 ( ) 3 ( ) 3 ( ) 3 ( )

After 5 years of service:

Total .................................. 99 100 99 97

Under 5 days .................... 7 3 3 14

5 and under 10 days ......... 43 32 52 47

10 and under 15 days ....... 33 42 29 26

15 and under 30 days ....... 4 4 3 4

30 and under 60 days ....... 5 9 4 3

60 and under 120 days ..... 6 8 7 3

120 and under 180 days ... 3 () 1 3 ( ) 3 ( )

180 days or more .............. 3 ( ) 3 ( ) 3 ( ) 3 ( )

After 10 years of service:

Total .................................. 99 100 99 97

Under 5 days .................... 5 2 3 11

5 and under 10 days ......... 44 32 51 49

10 and under 15 days ....... 33 42 30 27

15 and under 30 days ....... 4 4 3 4

30 and under 60 days ....... 4 6 2 3

60 and under 120 days ..... 6 10 7 2

120 and under 180 days ... 2 3 2 1

180 days or more .............. 3 ( ) 3 ( ) 3 ( ) 3 ( )

After 15 years of service:

Total .................................. 99 100 100 97

Under 5 days .................... 5 2 3 10

5 and under 10 days ......... 44 32 51 50

10 and under 15 days ....... 33 42 30 27

See footnotes at end of table.
27

Table 26. Paid annual sick leave: Percent of full-time employees by number

of days, medium and large private establishments, 1997 — Continued

Sick leave policy1 All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Percent

After 15 years of service:

15 and under 30 days ....... 4 4 3 4

30 and under 60 days ....... 4 6 2 3

60 and under 120 days ..... 6 8 6 2

120 and under 180 days ... 3 5 3 2

180 days or more .............. 3 () 1 3 ( ) 3 ( )

After 20 years of service:

Total .................................. 99 100 100 97

Under 5 days .................... 5 2 3 10

5 and under 10 days ......... 44 32 51 50

10 and under 15 days ....... 33 42 30 27

15 and under 30 days ....... 3 4 3 3

30 and under 60 days ....... 3 6 1 2

60 and under 120 days ..... 4 5 5 3

120 and under 180 days ... 4 7 3 2

180 days or more .............. 1 2 2 3 ( )

After 25 years of service4

Total .................................. 99 100 100 97

Under 5 days .................... 5 2 3 9

5 and under 10 days ......... 44 32 51 50

10 and under 15 days ....... 33 42 30 27

15 and under 30 days ....... 3 4 3 3

30 and under 60 days ....... 3 6 1 2

60 and under 120 days ..... 4 4 5 2

120 and under 180 days ... 5 8 4 3

180 days or more .............. 1 2 2 3 ( )

1 Employees receiving partial pay only or no sickleave in their early years of service are

included in the overall percentages of workers provided sick leave; however, they are

disregarded in computing the distributions by length of service up to the service period at

which they become eligible for full sick leave pay. 2 Employees are either granted a specific number of days after completion of the indicated

length of service, or accrue days during the next 12-month period. The total number of days

are assumed available for use immediately upon completion of the described length-of-service

interval. 3 Less than 0.5 percent. 4 Provisions were virtually the same after longer periods of service.

NOTE: Because of rounding, sums of individual items may not equal totals.
28

Table 27. Paid annual sick leave: Average number of days at

full pay for full-time employees, medium and large private

establishments, 1997

Sick leave policy

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Paid annual sick leave days1 by

minimum length-of-service:

After 1 year ......................... 11.2 13.3 10.1 9.9

After 3 years ....................... 13.0 16.1 12.1 10.4

After 5 years ....................... 15.2 19.3 14.5 11.5

After 10 years ..................... 17.6 22.6 17.3 12.6

After 15 years ..................... 18.8 24.7 18.1 13.2

After 20 years ..................... 20.5 27.3 20.2 13.6

After 25 years2 .................... 21.1 28.0 20.8 14.1

1 Employees are either granted a specific number of days after

completion of the indicated length of service, or accrue days during the next

12-month period. The total number of days are assumed available for use

immediately upon completion of the described length-of-service interval. 2 The average (mean) was virtually the same after longer years of

service.

NOTE: Computation of average excluded days at partial pay and workers

with only partial pay days or zero days of sick leave.

Table 28. Paid annual sick leave:1 Percent of full-time

employees by unused sick leave policy and carryover

provisions, medium and large private establishments, 1997

Unused sick leave and

carryover provisions

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid annual sick leave ........ 19,454 6,792 6,147 6,515

Percent

Total with paid annual sick

leave ................... 100 100 100 100

Carryover only .......................... 44 48 45 41

Cash-in only .............................. 8 2 7 16

Carryover and cash-in .............. 9 7 8 11

Unused benefit lost ................... 36 40 39 30

Data not available ..................... 2 3 1 2

Total with carryover

provisions ............... 100 100 100 100

Unlimited accumulation ............ 21 27 20 16

Limit on total number of days

accumulated

Total ...................................... 79 73 80 84

Under 10 days ...................... 3 2 3 4

10 days ................................. 3 2 2 5

11-19 days ............................ 5 1 6 8

20 days ................................. 3 2 3 4

21-24 days ............................ 7 4 13 4

25 days ................................. 3 1 5 2

26-29 days ............................ 2 ( ) 2 ( ) 2 () 1

30-39 days ............................ 11 10 11 13

40-49 days ............................ 5 6 4 5

50 days ................................. 2 ( ) 2 ( ) 2 () 1

51-64 days ............................ 7 8 6 8

65 days ................................. 3 3 2 3

66-79 days ............................ 5 7 4 4

80-89 days ............................ 2 2 2 3

90-99 days ............................ 6 6 6 6

100-109 days ........................ 2 1 2 2

110-119 days ........................ 2 () 1 2 ( ) 2 ( )

120-129 days ........................ 3 5 2 2

130 days ............................... 5 4 7 4

Over 130 days ...................... 5 7 2 6

Other3 ....................................... 2 ( ) 2 ( ) 2 ( ) 2 ( )

1 Paid sick leave plans with a specified number of days available each

year. 2 Less than 0.5 percent. 3 Carryover provisions vary by length of service.

NOTE: Because of rounding, sums of individual items may not equal totals.
29

Table 29. Paid annual sick leave1: Average number of days at

full pay for full-time employees by accumulation policy,

medium and large private establishments, 1997

Sick leave policy

All

employees

Professional,

technical,

and related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Sick leave days by minimum

length-of-service

requirement:2

After 1 year of service:

Cumulative plan ................ 9.0 10.0 8.3 8.4

Noncumulative plan .......... 14.0 17.9 12.3 11.8

After 3 years of service:

Cumulative plan ................ 9.4 10.8 8.6 8.7

Noncumulative plan .......... 17.4 23.4 16.1 12.6

After 5 years of service:

Cumulative plan ................ 9.8 11.4 9.1 8.8

Noncumulative plan .......... 21.8 30.0 20.9 14.6

After 10 years of service:

Cumulative plan ................ 10.3 12.1 9.5 9.0

Noncumulative plan .......... 26.8 37.1 26.3 17.0

After 15 years of service:

Cumulative plan ................ 10.5 12.6 9.6 9.1

Noncumulative plan .......... 29.2 41.4 28.0 18.2

After 20 years of service:

Cumulative plan ................ 11.3 13.9 10.6 9.2

Noncumulative plan .......... 32.1 45.8 31.5 19.0

After 25 years of service:3

Cumulative plan ................ 11.6 14.0 10.9 9.7

Noncumulative plan .......... 33.0 47.3 32.3 19.5

Data not available ..................... 4 ( ) 4 ( ) 4 ( ) 4 ( )

1 Paid sick leave plans with a specified number of days available each

year. 2 Employees are either granted a specific number of days after

completion of the indicated length of service, or accrue days during the next

12-month period. The total number of days are assumed available for use

immediately upon completion of the described length-of-service interval. 3 The average (mean) was virtually the same at longer years of service. 4 Less than 0.5 percent.

NOTE: Computation of average excluded days paid at partial pay and

workers with only partial pay days or zero days of sick leave.

Table 30. Paid sick leave: Percent of full-time employees by

length of service requirement for participation, medium and

large private establishments, 1997

Length of service requirement

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid annual sick leave ........ 19,454 6,792 6,147 6,515

Percent

Total with paid annual sick

leave ............................. 100 100 100 100

With service requirement .......... 66 54 72 74

1 month ................................. 17 19 16 15

2 months ............................... 3 3 2 3

3 months ............................... 18 15 21 19

4-5 months ............................ 1 1 () 1 1

6 months ............................... 16 13 21 16

7-11 months .......................... 1 - - 3

1 year .................................... 10 4 10 16

Over 1 year ........................... 1 1 ( ) 1 () 2

Without service requirement ..... 33 46 28 25

Data not available ..................... 1 ( ) 1 ( ) 1 () 1

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
30

Table 31. Paid annual sick leave: Percent of full-time

employees in plans allowing use of sick leave for other

purposes, medium and large private establishments, 1997

Other purposes

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

paid annual sick leave ........ 19,454 6,792 6,147 6,515

Percent

Total with paid annual sick

leave ................... 100 100 100 100

Other purposes allowed1 .......... 70 76 75 59

Funerals ................................ 10 13 6 9

Doctors’ appointments .......... 59 64 61 51

Personal business ................ 16 16 15 17

Care of sick child .................. 52 56 58 43

Other ..................................... 11 15 10 7

Other purposes not allowed ...... 22 17 19 30

Data not available ..................... 8 7 6 11

1 This total is smaller than the sum of the components because some

employees could use sick leave for more than one other purpose.

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

Table 32. Short-term disability: Method of funding, full-time

employees, medium and large private establishments, 1997

Type of funding

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

short-term disability ............ 21,265 5,787 4,753 10,725

Percent

Total with short-term disability .. 100 100 100 100

Unfunded1 ............................ 21 34 25 13

Insured .................................. 23 17 16 29

Self-insured .......................... 40 32 40 45

Legally required .................... 13 15 15 11

Unknown ............................... 1 1 2 2 ( )

Other ..................................... 2 1 1 2

1 Includes per disability sick leave plans, formerly reported under sick

leave. 2 Less than 0.5 percent.

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

Table 33. Short-term disability: Method of payment, full-time

employees, medium and large private establishments, 1997

Method of payment

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

funded short-term disability 16,729 3,810 3,557 9,363

Percent

Total with funded short-term

disability .............................. 100 100 100 100

Flat dollar amount ................. 23 4 8 36

Flat percent of earnings ........ 60 81 74 47

Percent varies1 ..................... 7 11 13 4

Dollar amount varies1 ........... 9 3 4 14

Other ..................................... 1 1 1 2 ( )

Not determinable .................. 2 () - - 2 ( )

1 Benefits may vary by earnings, length of service, or length of disability. 2 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
31

Table 34. Short-term disability: Flat dollar

amounts, full-time employees, medium and

large private establishments, 1997

Flat dollar amount per week

All

employees

Bluecollar

and

service

employees

Number (in thousands) with flat

dollar amount ...................... 3,783 3,336

Percent

Total with flat dollar amount

benefit ................................. 100 100

Less than $100 ..................... 14 13

$100 - $149 .......................... 25 24

$150 - $199 .......................... 22 22

$200 - $249 .......................... 20 21

$250 - $299 .......................... 15 15

$300 or more ........................ 5 4

 Average1

Average flat dollar amount per

week ................................... $173 $173

1 The average is presented for all covered workers;

averages exclude workers without the plan provision.

NOTE: Data were insufficient to show professional,

technical, and related employees and clerical and sales

employees separately. Because of rounding, sums of

individual items may not equal totals.

Table 35. Short-term disability: Fixed percent of earnings

amounts, full-time employees, medium and large private

establishments, 1997

Fixed percent of earnings

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

fixed percent of earnings

benefit ................................. 10,105 3,081 2,638 4,386

Percent

Total with flat percent of

earnings benefit .................. 100 100 100 100

Less than 50 percent ........... 1 1 ( ) 1 () 1

50 percent ............................. 27 20 22 35

51 - 59 percent ..................... 1 1 1 () 1

60 percent ............................. 28 20 29 32

61 - 69 percent ..................... 32 42 34 25

70 percent ............................. 6 10 7 4

71 - 79 percent ..................... 3 3 4 2

80 percent or more ............... 2 4 3 1

Average2

Average fixed percent of

earnings benefit .................. 61 63 62 59

1 Less than 0.5 percent. 2 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
32

Table 36. Short-term disability: Maximum benefits placed on

percent of earnings formulas, full-time employees, medium

and large private establishments, 1997

Maximum benefit per week

All

employees

Profes

sional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

percent of earnings benefit 11,305 3,485 3,105 4,714

Percent

Number with percent of

earnings benefit .................. 100 100 100 100

With maximum ...................... 61 61 53 65

Less than $200 ................. 20 16 17 24

$200 - $299 ...................... 11 4 10 17

$300 - $399 ...................... 14 14 15 13

$400 - $499 ...................... 3 6 1 2

$500 - $599 ...................... 1 1 1 1

$600 or more .................... 12 20 10 8

No maximum ........................ 35 35 41 31

Not determinable .................. 4 4 6 4

Average1

Average maximum benefit per

week ................................... $474 $671 $469 $340

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

workers without the plan provision.

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

Table 37. Short-term disability: Minimum benefits placed on

percent of earnings formulas, full-time employees, medium

and large private establishments, 1997

Minimum benefit per week

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

percent of earnings benefit 11,305 3,485 3,105 4,714

Percent

Total with percent of earnings

benefit ................................. 100 100 100 100

With minimum ....................... 4 4 3 5

No minimum ......................... 91 93 92 88

Not determinable .................. 5 3 5 7

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

Where applicable, dash indicates no employees in this category.
33

Table 38. Short-term disability: Type of waiting period,

full-time employees, medium and large private establishments,

1997

Waiting period

provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

funded short-term disability 16,729 3,810 3,557 9,363

Percent

Total with funded short-term

disability .......................... 100 100 100 100

Waiting period not

dependent on sick

leave ........................... 83 78 80 87

Waiting period begins after

sick leave .................... 8 10 11 6

Later of waiting period or

sick leave1 .................. 2 3 5 1

Earlier of waiting period or

sick leave2 .................. 2 6 1 3 ( )

Not determinable .............. 5 3 2 6

1 Benefits begin when sick leave is exhausted or the waiting period is

completed, whichever is later. 2 Benefits begin when sick leave is exhausted or the waiting period is

completed, whichever is earlier. 3 Less than 0.5 percent.

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

Table 39. Short-term disability: Length of waiting period,

full-time employees, medium and large private establishments,

1997

Length of waiting period

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

funded short-term disability 16,729 3,810 3,557 9,363

Percent

Total with funded short-term

disability .............................. 100 100 100 100

Immediate ............................. 5 7 7 4

1 day ..................................... 6 6 5 5

2 days ................................... 1 () 1 1 1 ( )

3 days ................................... 4 2 3 6

4 days ................................... 3 1 2 5

5 days ................................... 4 5 6 3

6 days ................................... 1 1 2 1

7 days ................................... 50 45 43 55

8 days ................................... 8 8 9 7

10 days ................................. 1 2 3 1 ( )

Greater than 10 days ............ 12 18 17 7

Not determinable .................. 5 3 2 6

Average2

Average waiting period (in

days) ................................... 9 11 10 7

1 Less than 0.5 percent. 2 The average is presented for all covered workers; averages exclude

workers without plan provisions.

NOTE: Because of rounding, sums of individual items may not equal totals.
34

Table 40. Short-term disability: Duration of benefits, full-time

employees, medium and large private establishments, 1997

Duration of benefits

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

funded short-term disability 16,729 3,810 3,557 9,363

Percent

Total with funded short-term

disability .............................. 100 100 100 100

Fixed duration ....................... 95 95 91 96

Less than 13 weeks .......... 3 6 5 1 ( )

13 weeks .......................... 14 9 9 18

14 - 25 weeks ................... 7 6 12 5

26 weeks .......................... 64 67 60 65

27 - 51 weeks ................... 2 2 3 1

52 weeks .......................... 5 3 2 7

Greater than 52 weeks ..... 1 1 1 ( ) 1 ( )

Duration varies ..................... 5 5 9 4

Not determinable .................. 1 () – – 1 ( )

 Average2

Average benefit duration (in

weeks) ................................ 25 25 24 26

1 Less than 0.5 percent. 2 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates that no data were reported.

Table 41. Short-term disability: Eligibility requirements,

full-time employees, medium and large private establishments,

1997

Eligibility requirement

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

funded short-term disability 16,729 3,810 3,557 9,363

Percent

Total with funded short-term

disability .............................. 100 100 100 100

With a service requirement ... 60 47 58 66

1 month ............................. 14 13 17 13

2 months ........................... 7 1 4 10

3 months ........................... 19 10 16 23

4 -5 months ....................... 1 1 1 1

6 months ........................... 10 12 12 7

7 - 11 months .................... 5 4 1 6

12 months ......................... 5 5 7 5

Greater than 12 months .... 1 1 1 1

Without a service

requirement .................... 36 49 37 30

Not determinable .................. 4 4 5 4

Average1

Average service requirement (in

months) ............................... 4.4 5.0 4.7 4.1

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

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
35

Table 42. Short-term disability: Employee contribution

provisions, full-time employees, medium and large

private establishments, 1997

Employee

contribution

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands)

with funded

short-term disability 16,729 3,810 3,557 9,363

Percent

Total with short-term

disability .................. 100 100 100 100

With required

employee

contribution ......... 18 19 22 17

Dollar amount ....... 8879

Percent of

earnings .......... 3572

Varies ................... 1 ( ) 1 () 1 1 ( )

Composite rate ..... 2 1 () 1 4

Flexible benefit ..... 2 4 5 1 ( )

Other ..................... 1 1 1 () 2

Contribution,

amount

unknown ......... 1 1 () 1 1

No required

employee

contribution ......... 80 78 77 81

Not determinable ...... 2312

1 Less then 0.5 percent.

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

equal totals.
36

Table 43. Unfunded short-term disability: Percent of full-time employees by

number of days, medium and large private establishments, 1997

Short-term disability

policy1

All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Number (in thousands) with

unfunded short-term

disability .............................. 4,520 1,974 1,185 1,362

Percent

Total with unfunded short-term

disability .............................. 100 100 100 100

After 1 year of service:

Total .................................. 76 80 72 73

5 and under 10 days ......... 10 9 15 6

10 and under 15 days ....... 12 11 6 19

15 and under 30 days ....... 16 15 19 14

30 and under 60 days ....... 11 13 12 8

60 and under 120 days ..... 15 18 12 12

120 and under 180 days ... 10 12 6 11

180 days or more .............. 1 2 2 () 2

After 3 years of service:

Total .................................. 87 89 83 87

5 and under 10 days ......... 2 () 1 2 ( ) 2 ( )

10 and under 15 days ....... 2 2 1 3

15 and under 30 days ....... 27 28 33 22

30 and under 60 days ....... 23 22 23 25

60 and under 120 days ..... 21 21 18 22

120 and under 180 days ... 12 14 8 13

180 days or more .............. 2 2 1 2

After 5 years of service:

Total .................................. 89 92 85 89

5 and under 10 days ......... 2 ( ) 2 () - -

10 and under 15 days ....... 1 1 2 ( ) 2 ( )

15 and under 30 days ....... 9 8 6 12

30 and under 60 days ....... 24 27 20 24

60 and under 120 days ..... 37 35 46 33

120 and under 180 days ... 16 18 12 17

180 days or more .............. 2 3 1 3

After 10 years of service:

Total .................................. 89 92 85 89

5 and under 10 days ......... 2 ( ) 2 () - -

10 and under 15 days ....... 1 1 2 ( ) 2 ( )

15 and under 30 days ....... 6 6 4 9

30 and under 60 days ....... 14 13 13 16

60 and under 120 days ..... 43 43 51 35

120 and under 180 days ... 23 25 15 27

180 days or more .............. 3 4 3 3

After 15 years of service:

Total .................................. 89 92 86 89

5 and under 10 days ......... 2 ( ) 2 () - -

10 and under 15 days ....... 1 1 2 ( ) 2 ( )

15 and under 30 days ....... 6 5 3 9

30 and under 60 days ....... 14 13 12 16

60 and under 120 days ..... 29 30 28 28

See footnotes at end of table.
37

Table 43. Unfunded short-term disability: Percent of full-time employees by

number of days, medium and large private establishments, 1997 —

Continued

Short-term disability

policy1

All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Percent

After 15 years of service:

120 and under 180 days ... 36 37 38 32

180 days or more .............. 4 5 4 4

After 20 years of service:

Total .................................. 89 92 86 89

5 and under 10 days ......... 2 ( ) 2 () - -

10 and under 15 days ....... 1 1 2 ( ) 2 ( )

15 and under 30 days ....... 6 5 3 9

30 and under 60 days ....... 13 13 12 14

60 and under 120 days ..... 28 30 28 25

120 and under 180 days ... 27 28 19 31

180 days or more .............. 15 14 23 10

After 25 years of service:

Total .................................. 89 92 86 89

5 and under 10 days ......... 2 ( ) 2 () - -

10 and under 15 days ....... 1 1 2 ( ) 2 ( )

15 and under 30 days ....... 2 2 3 2 ( )

30 and under 60 days ....... 12 12 10 12

60 and under 120 days ..... 27 29 27 25

120 and under 180 days ... 30 32 21 36

180 days or more .............. 17 16 24 15

After 30 years of service3:

Total .................................. 89 92 86 89

5 and under 10 days ......... 2 ( ) 2 () - -

10 and under 15 days ....... 1 1 2 ( ) 2 ( )

15 and under 30 days ....... 2 2 3 2 ( )

30 and under 60 days ....... 11 11 10 12

60 and under 120 days ..... 27 29 27 25

120 and under 180 days ... 31 33 22 36

180 days or more .............. 17 16 24 15

1 Employees receiving partial pay only or no benefit in their early years of service are

included in the overall percentages of workers provided short-term disibility; however, they are

disregarded in computing the distributions by length of service up to the service period at

which they become eligible for full disibility pay. 2 Less than 0.5 percent. 3 Provisions were virtually the same after longer periods of service.

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

applicable, dash indicates that no data were reported.
38

Table 44: Unfunded short-term disability: Average number of

days at full pay for full-time employees, medium and large

private establishments, 1997

Short-term disability

provisions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Short-term disability days1 by

minimum length-of-service:

After 1 year ......................... 48.5 51.6 40.0 50.9

After 3 years ....................... 56.7 57.2 49.9 61.7

After 5 years ....................... 73.8 73.5 70.4 76.9

After 10 years ..................... 85.7 86.8 81.1 87.8

After 15 years ..................... 99.0 98.7 101.6 97.2

After 20 years ..................... 108.1 106.1 117.1 103.8

After 25 years ..................... 124.0 119.0 135.6 121.9

After 30 years2 .................... 124.6 120.1 135.9 122.0

1 Employees are either granted a specific number of days after

completion of the indicated length of service, or accrue days during the next

12-month period. The total number of days are assumed available for use

immediately upon completion of the described length-of-service interval. 2 The average (mean) was virtually the same after longer years of

service.

NOTE: Computation of average excluded days at partial pay and workers

with only partial pay days or zero days of sick leave.

Table 45. Long-term disability insurance: Benefit waiting

period,1 full-time employees, medium and large private

establishments, 1997

Length of waiting period

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

long-term disability

insurance ............................ 16,625 6,644 4,729 5,253

Percent

Total with long-term disability

insurance ............................ 100 100 100 100

Fixed duration month ............ 73 74 76 68

Less than 3 months .......... 1 1 1 2 ( )

3 months ........................... 24 25 26 21

4 - 5 months ...................... 3 2 4 3

6 months ........................... 39 39 41 38

Greater than 6 months ...... 5 5 4 6

Expiration of short-term

disability benefits ............ 24 23 21 27

Other ..................................... 2 2 2 2

Not determinable .................. 2 2 2 3

Average3

Average fixed duration (in

months) ............................... 5.3 5.2 5.2 5.4

1 Length of time between onset of disability and beginning of long-term

disability insurance payments. 2 Less than 0.5 percent. 3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
39

Table 46. Long-term disability insurance: Method of payment,

full-time employees, medium and large private establishments,

1997

Method of payment

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

long-term disability

insurance ............................ 16,625 6,644 4,729 5,253

Percent

Total with long-term disability

insurance ............................ 100 100 100 100

Fixed percent of earnings ..... 93 95 95 88

Less than 50 percent ........ 2 3 1 3

50 percent ......................... 19 17 20 20

51 - 59 percent ................. 1 ( ) 1 () - 1

60 percent ......................... 54 55 56 51

61 - 66 percent ................. 2 2 2 2

67 percent ......................... 11 12 13 7

70 percent ......................... 3 4 2 2

Greater than 70 percent ... 2 2 1 2

Percent varies by earnings ... 2 3 2 1

Percent varies by other than

earnings .......................... 2 1 2 2

Flat dollar amount (per

month) ............................ 1 ( ) 1 () - 1 ( )

Other ..................................... 1 ( ) 1 ( ) 1 ( ) 1 ( )

Dollar amount varies ............. 1 - 1 4

Average2

Average fixed percent of

earnings .............................. 58.9 59.3 59.0 58.1

1 Less than 0.5 percent. 2 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.

Table 47. Long-term disability insurance: Maximum benefits1

based on percent of earnings formulas, full-time employees,

medium and large private establishments, 1997

Maximum benefit

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

percent of earnings benefit 15,975 6,522 4,658 4,795

Percent

Total with percent of earnings

benefit ................................. 100 100 100 100

With maximum ...................... 71 72 73 67

Flat maximum per month .. 69 71 70 65

$1,500 or less ............... 4 4 2 6

$1,501 - $2,000 ............ 1 1 1 2

$2,001 - $3,000 ............ 7 5 9 6

$3,001 - $4,000 ............ 4 4 4 4

$4,001 - $5,000 ............ 13 14 11 14

$5,001 - $7,500 ............ 12 11 11 13

$7,501 - $10,000 .......... 19 23 20 13

$10,001 or more ........... 9 10 12 5

Other maximum2 .............. 2 1 2 2

No maximum ........................ 29 28 27 33

Average3

Average flat maximum benefit

(per month) ......................... $7,452 $7,587 $8,056 $6,617

1 Excludes limits on all disability income, which restrict long-term

disability insurance payments if income from all sources exceeds a specified

amount. 2 Includes maximums that vary by length of service. 3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
40

Table 48. Long-term disability insurance: Eligibility

requirements, full-time employees, medium and large private

establishments, 1997

Length of service

requirement

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

long-term disability

insurance ............................ 16,625 6,644 4,729 5,253

Percent

Total with long-term disability

insurance ............................ 100 100 100 100

With a service requirement ... 68 63 65 76

1 month ............................. 15 17 14 15

2 months ........................... 4 3 3 6

3 months ........................... 19 17 22 21

4 -5 months ....................... 1 1 ( ) 1 () 2

6 months ........................... 13 12 10 15

7 - 11 months .................... 1 1 () - 3

12 months ......................... 12 12 12 11

Greater than 12 months .... 4 2 4 4

Without a service

requirement .................... 28 32 31 20

Not determinable .................. 4 5 4 4

Average2

Average service requirement (in

months) ............................... 6.3 5.7 6.3 6.9

1 Less than 0.5 percent. 2 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.
Chapter 4.

Health Benefits

The Employee Benefits Survey collects information

on a variety of health benefits, including medical,

prescription drug, dental, and vision care. Definitions

of major plan types, key provisions, and related terms follow.

Medical Care

Medical care plans provide services or payments for services

rendered in the hospital or by a physician. Those plans that

provide only dental, vision, or prescription drug coverage

are tabulated separately and described in their specific sections. Common plan types are fee-for-service plans, preferred

provider organizations (PPOs), exclusive provider organizations (EPOs), and health maintenance organizations (HMOs).

Plan types

Fee-for-service plans. Participants in fee-for-service plans

receive medical care from the providers they choose. The

plan reimburses either the provider or the individual for some

or all of the cost of care received. Coinsurance, out-of-pocket

expense maximums, and lifetime maximums are the main

plan limitations.

Preferred provider organizations. PPOs are groups of hospitals and physicians that contract to provide comprehensive

medical services. To encourage use of organization members, PPOs limit reimbursement when participants use nonmember services.

Exclusive provider organizations. EPOs have arrangements

with specific providers to offer medical services. Usually there

is no reimbursement for the services of non-network providers.

Health maintenance organizations. HMOs provide comprehensive medical services for a prepaid fee. Most services are

covered in full, with preventive care encouraged. HMOs are

classified as either group or staff, with services provided by

central facilities, or individual practice associations (IPAs),

with providers working from their own offices. HMOs that

use a combination of these models are referred to as a mixed

model in this survey. Participants in HMO plans are rarely

reimbursed for nonemergency services from non-HMO providers unless a point-of-service feature is present. In these

cases, enrollees may obtain care from non-HMO providers,

but at lower reimbursement levels than if care is received

from HMO providers.

Plan financing

Commercial insurance company. A commercial insurer underwrites an employer’s health costs and assumes all related

risks in return for regular premium payments.

Self-insured plans. Unlike commercially insured plans, employers with self-insured plans assume the risk associated

with their employees’ medical coverage. To limit this risk,

employers often purchase “stop-loss” insurance to cover

claims that exceed a certain amount in a given year. Selfinsured plans can be financed on a pay-as-you-go basis or

through contributions to a trust fund established to pay benefits. Employers can either administer these plans directly or

hire a firm to handle claims, dispute resolution, and other

administrative tasks.

Administrative Services Only (ASO). Third party contracts

to disburse the employer’s funds to pay claims and handle

other administrative details are commonly known as ASO

contracts.5

Blue Cross and Blue Shield organizations. BC/BS organizations are an extensive network of nonprofit health care insurers. Blue Cross plans provide hospital coverage; Blue

Shield plans cover medical and surgical services.

Independent Organizations. Independent organizations are

entities that combine the functions of financial intermediaries and health care providers. Most typical independent

organizations are such HMOs as Kaiser Permanente.

Limits on coverage

Deductible. A specified amount of covered medical expenses,

such as $200 per individual per year, is the deductible that a

participant must pay before the plan provides reimbursement.

Some plans specify the limit on the amount of deductible

that a family is expected to pay in a year. HMOs usually have

no deductible.

Coinsurance. After the individual meets the deductible, the

plan will pay a percentage of authorized expenses for the

remainder of the plan year. Coinsurance rates are usually es-

 41
42

Health Benefits

tablished as a percent of expenses to be paid by the plan. For

example, the plan may have a coinsurance rate of 90 percent,

that is, the plan pays 90 percent of covered medical expenses

and the participant pays the remaining 10 percent.

Out-of-pocket expense maximum. This maximum is the

annual limit on the amount of covered expenses that a participant or a family must pay after the deductible, if any, has

been satisfied. Once reached, covered expenses are fully reimbursed for the rest of the year.

Lifetime maximum. The lifetime maximum limits the amount

of covered expenses the plan is obligated to pay.

Pre-existing conditions. A pre-existing condition is any

ailment present at the time a participant enrolls for which a

plan may limit or deny coverage for a specific time period

following enrollment.

Cost containment features

Although health maintenance organizations were created

around the concept of cost containment, many fee-for-service plans and preferred provider organizations now also have

these features. Cost containment is designed to reduce costs

of expensive medical services, such as hospitalization or surgery, by imposing certain requirements or restrictions on their

coverage.

Preadmission certification. Some plans require prior authorization before a benefits recipient can be hospitalized on a

non-emergency basis or before the delivery of certain health

care benefits. Failure to obtain a preadmission certificate in

nonemergency situations usually reduces or eliminates the

health benefits provider’s obligation to pay for the services

rendered.

Utilization or concurrent review. This is the term given to

the process of reviewing the appropriateness and quality of

care provided to participants.

Preadmission testing. These are medical tests performed on

an outpatient basis prior to admission in order to reduce the

length of hospitalization. These tests are usually reimbursed

at higher levels than if the tests were done during hospitalization.

Nonemergency weekend admission restriction. Plans that

impose these restrictions limit reimbursement for

nonemergency weekend hospital admissions.

Hospital audit program. Some fee-for-service plans contain

provisions that provide financial incentives for participants

who uncover overcharges in their hospital bills.

Second surgical opinion. When nonemergency inpatient surgery is prescribed, some plans require a second surgical opinion to avoid unnecessary surgeries and to encourage nonsurgical alternatives when appropriate. If the participant does

not seek a second surgical opinion prior to

surgery, the plan generally reduces the benefits otherwise payable.

Alternatives to hospitalization

As with cost containment features, alternatives to hospitalization are offered as a means of reducing costs.

Extended care facilities. These facilities provide skilled nursing care, rehabilitation, and convalescent services to patients

who require less intensive treatment than that provided in a

hospital.

Home health care. Such care programs provide skilled nursing and related services to patients in their own homes.

Hospice care. These services provide nursing care and psychological support to terminally ill patients and their families, either on an inpatient basis or in the patient’s home.6

Mental health and substance abuse treatment

Mental health and substance abuse services include inpatient

and outpatient care for psychiatric conditions and alcohol or

drug dependency. The coverage for these conditions is usually

more restrictive than that for general medical conditions.

Detoxification. This treatment involves supervised care by

medical personnel designed to reduce or eliminate the symptoms of chemical dependency. Treatment can occur on an

inpatient or outpatient basis.

Rehabilitation services. These services are intended to alter

the behavior of substance abusers. They are usually provided

after detoxification is complete. Treatment can occur on an

inpatient or outpatient basis.7

Prescription Drugs

Prescription drug plans provide coverage for outpatient prescription drugs. Prescription drugs dispensed during a hospital stay are covered with hospital miscellaneous charges.

Name brand drugs. These are drugs that once were or still

are under patents.

Generic drugs. Once a drug’s patent has expired, some plans

provide more generous coverage for same-formula generic

drugs, because of their lower cost, than for brand name drugs.
43

Health Benefits

Generic drugs are used as a cost-containment measure by

some plans.

Mail order drugs. Used as a cost containment measure, some

plans use mail order pharmacies that normally provide a 3-

month supply of maintenance drugs.

Dental Care

Dental care plans provide services or payments for preventive and restorative care and related dental services.

Services and provisions

Preventive services. Such services include routine exams and

x rays.

Restorative services. These services include fillings, dental

surgery, endodontics (root canal therapy), periodontics (treat5 For more information on types of medical care plans and financing

methods, see John J. Kane, Allan P. Blostin, and Jordan N. Pfuntner,

“Changing Survey Strategies in the Evolution of Health Care Plans,”

Compensation and Working Conditions, September 1996, pp. 3-8. 6 Data from the 1989 EBS have been used to examine alternatives to

hospitalization. For more information see Thomas P. Burke, “Alternatives

to Hospital Care under Employee Benefit Plans,” Monthly Labor Review,

December 1991, pp. 9-15.

ment of gum disease), crowns, and prosthetics (replacement

of missing teeth with bridgework or dentures).

Orthodontia services. These are the correction of

malpositioned teeth.

Pretreatment authorization. When a procedure is expected

to exceed a certain cost, such as $300, pretreatment authorization must be obtained by the patient, usually from the dental claims administrator, before reimbursement will be made.8

Vision Care

Vision care plans provide coverage for eyeglasses, and with

few exceptions, eye exams and contact lenses.9

7 For more information, see Substance Abuse Provisions in Employee

Benefit Plans, Bulletin 2412, U.S. Department of Labor, Bureau of Labor

Statistics, August 1992.

8 For more information, see Ann C. Foster, “Dental Care Benefits, 1995,”

Compensation and Working Conditions, summer 1998, pp.45-49. 9 A detailed discussion of vision care benefits during the 1980-86 period

appears in Rita S. Jain, “Employer-sponsored Vision Care Brought into

Focus,” Monthly Labor Review, September 1988, pp. 19-23.

— Endnotes —
44

Table 49. Medical care benefits: Summary of selected

features, full-time employees, medium and large private

establishments, 1997

Selected features

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

medical care1 ...................... 29,340 8,455 7,180 13,705

Percent

Total with medical care ............. 100 100 100 100

Traditional fee-for-service2 ... 27 20 22 33

Preferred provider

organization3 .................. 40 40 42 39

Prepaid health maintenance

organization4 .................. 33 40 36 28

Retiree coverage available5 43 47 43 40

With a service requirement ... 67 55 65 76

1 Plans providing services or payments for services rendered in the

hospital or by a physician. Excludes plans that provided only dental, vision or

prescription drug coverage. 2 The plan pays for specific medical procedures as expenses are

incurred. 3 A preferred provider organization (PPO) is a group of hospitals and

physicians that contracts to provide comprehensive medical services. To

encourage use of organization members, the health care plan limits

reimbursement rates when participants use nonmembers’ services. 4 Delivers comprehensive health care on a prepayment rather than

fee-for-service basis. 5 Tabulations cover plans in which insurance was continued for longer

than 1 month after retirement. It excludes plans that provide only the retiree’s

share of premiums for medical insurance under Medicare (Part B).
45

Table 50. Medical care benefits: Requirements for employee contributions, by fee arrangement, full-time employees, medium

and large private establishments, 1997

Contributory status

All employees Professional, technical,

and related employees

Clerical and sales

employees

Blue-collar and service

employees

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

Number with medical care

coverage (in thousands) ..... 29,340 19,658 9,683 8,455 5,102 3,353 7,180 4,624 2,556 13,705 9,931 3,774

 Single coverage

Total with single coverage for

 medical care ........................... 100 100 100 100 100 100 100 100 100 100 100 100

Employee contributions not

required .......................... 31 33 26 20 22 17 24 25 24 40 43 34

Employee contributions

required .......................... 69 67 74 80 78 83 76 75 76 60 57 66

 Family coverage

Total with family coverage for

 medical care ........................... 100 100 100 100 100 100 100 100 100 100 100 100

Employee contributions not

required .......................... 20 23 14 10 11 7 14 14 14 29 33 19

Employee contributions

required .......................... 80 77 86 90 89 93 86 86 86 71 67 81

Not determinable .................. 1 ( ) 1 () - - - - - - - 1 ( ) 1 () -

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals. Dashes indicate no employees in this category.
46

Table 51. Medical care benefits: Amount and type of employee contribution for individual coverage,1 by fee arrangement,

full-time employees, medium and large private establishments, 1997

Type and amount of

contribution

All employees Professional, technical,

and related employees

Clerical and sales

employees

Blue-collar and service

employees

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

Number with contributory

coverage (in thousands) ..... 20,366 13,156 7,210 6,741 3,974 2,768 5,439 3,488 1,951 8,186 5,694 2,492

Total with contributory coverage 100 100 100 100 100 100 100 100 100 100 100 100

Flat monthly amount ............. 72 74 70 68 67 70 71 75 63 77 77 76

Less than $5.00 ................ 222342212111

$5.00 - 9.99 ...................... 343222214665

$10.00 - 14.99 .................. 7 7 8 8 6 12 6 7 4 7 7 8

$15.00 - 19.99 .................. 676665563888

$20.00 - 29.99 .................. 16 16 16 17 15 19 16 17 14 16 17 14

$30.00 - 39.99 .................. 11 11 12 10 9 10 13 13 13 12 11 13

$40.00 - 49.99 .................. 10 11 9 8 9 7 10 11 8 12 12 11

$50.00 - 59.99 .................. 444444445434

$60.00 - 69.99 .................. 444444343555

$70.00 - 79.99 .................. 333232564224

$80.00 or greater .............. 443453443442

Dollar amount unspecified 2 ( ) 2 ( ) 2 ( ) 2 () 1 2 ( ) 2 ( ) 2 ( ) 2 () 1 1 1

Composite rate3 .................... 1 2 2 ( ) 2 () 1 2 () 1 1 1 2 3 2 ( )

Varies4 .................................. 333333343333

Other ..................................... 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( )

Flexible benefits5 .................. 13 13 13 19 20 16 11 11 11 9 8 11

Percent of earnings .............. 111221112 2 ( ) 2 () 1

Exists, but unknown .............. 10 8 12 8 7 9 13 8 20 9 9 10

Average6 flat monthly

contribution in dollars .......... 39.14 41.69 34.28 37.19 40.25 32.98 39.38 40.80 36.37 40.43 43.10 34.23

1 Plans providing services or payments for services rendered in the

hospital or by a physician. Excludes plans that provided only dental, vision

or prescription drug coverage. 2 Less than 0.5 percent. 3 A composite rate is a set contribution covering more than one benefit

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

data for health care cannot be determined. 4 Based on worker attributes. For example, employee contributions

may vary based on earnings, length of service, or age. 5 Amount varies by options selected under a "cafeteria plan" or

employer-sponsored reimbursement account. 6 The average is presented for all covered workers and excludes

workers without the plan provision.

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

totals.
47

Table 52. Medical care benefits: Amount and type of employee contribution for family coverage,1 by fee arrangement, full-time

employees, medium and large private establishments, 1997

Type and amount of

contribution

All employees Professional, technical,

and related employees

Clerical and sales

employees

Blue-collar and service

employees

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

Number (in thousands) with

contributory coverage ......... 23,486 15,121 8,366 7,649 4,545 3,104 6,173 3,965 2,208 9,664 6,611 3,053

Total with contributory coverage 100 100 100 100 100 100 100 100 100 100 100 100

Flat monthly amount ............. 75 76 74 71 70 72 74 77 67 79 79 80

Less than $20.00 .............. 444454324564

$20.00 - 29.99 .................. 333222333444

$30.00 - 39.99 .................. 324326111324

$40.00 - 49.99 .................. 5 5 6 4 4 3 3 4 2 8 7 10

$50.00 - 59.99 .................. 351341231461

$60.00 - 69.99 .................. 555556452657

$70.00 - 79.99 .................. 333333342334

$80.00 - 89.99 .................. 555657675443

$90.00 - 99.99 .................. 554545666563

$100.00 - 124.99 .............. 11 12 9 9 10 8 12 12 10 13 14 9

$125.00 - 149.99 .............. 546666546445

$150.00 - 174.99 .............. 675776776664

$175.00 - 199.99 .............. 4 3 7 3 2 4 5 5 5 5 2 11

$200.00 - 224.99 .............. 333333462324

$225.00 - 249.99 .............. 222222342223

$250.00 - 274.99 .............. 112121213111

$275.00 - 299.99 .............. 1121 2 () 2 1 1 2 1 1 2

$300.00 or greater ............ 444443434444

Composite rate3 .................... 1 1 2 ( ) 2 ( ) 2 ( ) 2 () 1 1 2 () 2 3 2 ( )

Varies4 .................................. 333333333333

Other ..................................... 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( )

Flexible benefits5 .................. 11 11 11 17 18 15 10 10 10879

Percent of earnings .............. 111111112 2 ( ) 2 () 1

Exists, but unknown .............. 8 7 11 7 6 8 11 7 18878

Average6 flat monthly

contribution in dollars .......... 130.07 132.37 125.79 124.62 127.76 120.16 135.27 134.01 137.87 130.85 134.22 123.61

1 Plans providing services or payments for services rendered in the

hospital or by a physician. Excludes plans that provided only dental, vision

or prescription drug coverage. If the amount of contribution varied by either

size or composition of family, the rate for an employee with a spouse and

one child was used. For a small percentage of employees, the employee

contributes the same amount for single and family coverage. 2 Less than 0.5 percent. 3 A composite rate is a set contribution covering more than one benefit

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

data for health care cannot be determined. 4 Based on worker attributes. For example, employee contributions

may vary based on earnings, length of service, or age. 5 Amount varies by options selected under a "cafeteria plan" or

employer-sponsored reimbursement account. 6 The average is presented for all covered workers and excludes

workers without the plan provision.

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

totals.
48

Table 53. Medical care benefits: Coverage for selected services, by type of plan, full-time employees, medium and large private

establishments, 1997

Categories of care

All employees

Professional, technical,

and 

 related employees

Clerical and sales

employees

Blue-collar and service

employees

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

Number of employees (in

thousands) .......................... 29,340 19,658 9,683 8,455 5,102 3,353 7,180 4,624 2,556 13,705 9,931 3,774

Percent

Hospital room and board .......... 100 100 100 100 100 100 100 100 100 100 100 100

Inpatient surgery ....................... 100 100 100 100 100 100 100 100 100 100 100 100

Outpatient surgery1 .................. 100 100 100 100 100 100 100 100 100 100 100 100

Inpatient physician visits ........... 100 100 100 100 100 100 100 100 99 99 99 100

Office physician visits ............... 100 100 100 100 100 100 100 100 100 100 100 100

Diagnostic X-ray and laboratory 99 99 100 100 100 100 99 100 99 99 99 100

Extended care2 ......................... 78 76 84 81 80 83 77 79 76 77 72 90

Home health care2 .................... 85 81 93 89 86 93 85 81 91 83 79 95

Hospice care ............................. 60 69 43 64 74 47 58 69 38 60 66 43

Inpatient mental health ............. 96 97 95 98 98 97 95 96 94 96 96 95

Outpatient mental health .......... 95 93 99 97 95 99 95 93 98 93 91 99

Inpatient alcohol detoxification3 98 97 99 99 99 99 98 96 99 97 96 99

Inpatient alcohol rehabilitation4 80 84 72 80 85 73 81 85 72 80 83 71

Outpatient alcohol

rehabilitation4 ...................... 84 85 82 85 86 84 84 86 80 83 84 82

Inpatient drug detoxification3 .... 97 96 98 97 97 98 97 96 98 96 95 98

Inpatient drug rehabitation4 ...... 80 84 72 80 84 73 81 86 72 79 83 70

Outpatient drug rehabilitation4 .. 83 84 81 85 86 84 84 86 80 82 83 80

Hearing care5 ........................... 35 12 84 42 15 84 37 10 86 30 11 82

Physical exam .......................... 63 47 97 72 56 97 65 48 95 57 41 98

Well-baby care .......................... 66 51 96 73 58 96 67 51 96 61 48 95

Immunization and inoculation ... 52 34 90 57 36 89 55 34 92 48 32 89

1 Charges incurred in the outpatient department of a hospital and

outside the hospital. 2 Some plans provide this care only to a patient who was previously

hospitalized and is recovering without need of the extensive care provided

by a general hospital. 3 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 4 Rehabilitation is designed to alter abusive behavior in patients once

they are free of acute physical and mental complications. 5 Plans provide, as a minimum, coverage for hearing examination

expenses.
49

Table 54. Non-health maintenance organizations: Coverage for

selected sevices, full-time employees, medium and large

private establishments, 1997

Category of care and extent of

coverage

All

 employees

Professional,

technical,

 and

related

employees

Clerical

and

sales

employees

Bluecollar

 and

service

employees

Percent

Hospital room and board

Total with coverage .................. 100 100 100 100

Covered in full ....................... 7 9 8 6

Subject to separate limits

only1 ............................... 5 5 6 4

Subject to separate limits

plus major medical .......... 19 22 15 20

Major medical only2 .............. 68 64 70 70

Inpatient surgery

Total with coverage .................. 100 100 100 100

Covered in full ....................... 14 18 14 13

Subject to separate limits

only1 ............................... 1 3 () 1 1

Subject to separate limits

plus major medical .......... 5 4 4 5

Major medical only2 .............. 80 78 81 81

Outpatient surgery4

Total with coverage .................. 100 100 100 100

Covered in full ....................... 13 16 14 12

Subject to separate limits

only1 ............................... 2 2 4 2

Subject to separate limits

plus major medical .......... 6 6 5 7

Major medical only2 .............. 78 76 78 79

Inpatient physician visits

Total with coverage .................. 100 100 100 100

Covered in full ....................... 13 16 14 11

Subject to separate limits

only1 ............................... 1 1 1 1

Subject to separate limits

plus major medical .......... 8 8 6 9

Major medical only2 .............. 78 75 80 79

See footnotes at end of table.

Table 54. Non-health maintenance organizations: Coverage for

selected sevices, full-time employees, medium and large

private establishments, 1997 — Continued

Category of care and extent of

coverage

All

 employees

Professional,

technical,

 and

related

employees

Clerical

and

sales

employees

Bluecollar

 and

service

employees

Percent

Office physician visits

Total with coverage .................. 100 100 100 100

Covered in full ....................... 2 2 1 4

Subject to separate limits

only1 ............................... 21 29 28 13

Subject to separate limits

plus major medical .......... 18 18 17 19

Major medical only2 .............. 59 52 55 64

Diagnostic x-ray and

laboratory

Total with coverage .................. 100 100 100 100

Covered in full ....................... 15 18 17 13

Subject to separate limits

only1 ............................... 1 1 1 1

Subject to separate limits

plus major medical .......... 8 8 7 8

Major medical only2 .............. 76 73 75 78

1 Separate limits apply to individual categories of care; e.g., separate

limits or benefits for hospitalization. Limits may be set in terms of dollar or

day ceilings on benefits, a requirement that the participant pay a percentage

of costs (coinsurance), or a requirement that the participant pay a specific

amount (deductible or copayment) before reimbursement begins or services

are rendered. 2 Major medical limits apply to all benefits under the plan, not selected

individual benefits. Major medical limits are deductibles and coinsurance

percentages that must be paid by the participant before any plan benefits

begin, and overall limits on plan benefits that can be paid. 3 Less than 0.5 percent. 4 Charges incurred in the outpatient department of a hospital and outside

of the hospital.

NOTE: Because of rounding, sums of individual items may not equal totals.
50

Table 55. Non-health maintenance organizations: Coverage

for alternatives to hospital care, full-time employees, medium

and large private establishments, 1997

Category of care and extent of

coverage

All 

employees

Professional,

technical,

and 

related 

employees

Clerical

and

sales

employees

Bluecollar 

and

service

employees

Percent

Extended care1

Total with coverage .................. 100 100 100 100

Covered in full ....................... 4 4 4 3

Subject to separate limits

only2 ............................... 10 12 10 10

Subject to separate limits

plus major medical .......... 68 63 68 70

Major medical only3 .............. 18 21 17 18

Home health care1

Total with coverage .................. 100 100 100 100

Covered in full ....................... 7 8 8 7

Subject to separate limits

only2 ............................... 9 12 9 8

Subject to separate limits

plus major medical .......... 52 52 53 52

Major medical only3 .............. 31 28 30 33

Hospice care

Total with coverage .................. 100 100 100 100

Covered in full ....................... 9 9 12 7

Subject to separate limits

only2 ............................... 8 13 6 6

Subject to separate limits

plus major medical .......... 45 43 53 43

Major medical only3 .............. 37 35 30 43

1 Some plans provide this care only to a patient who was previously

hospitalized and is recovering without need of the extensive care provided by

a general hospital. 2 Separate limits apply to individual categories of care; e.g., separate

limits or benefits for extended care. Limits may be set in terms of dollar or

day ceilings on benefits, a requirement that the participant pay a percentage

of costs (coinsurance), or a requirement that the participant pay a specific

amount (deductible or copayment) before reimbursement begins or services

are rendered. 3 Major medical limits apply to all benefits under the plan, not selected

individual benefits. Major medical limits are deductibles and coinsurance

percentages that must be paid by the participant before any plan benefits

begin, and overall limits on plan benefits that can be paid.

NOTE: Because of rounding, sums of individual items may not equal totals.
51

Table 56. Non-health maintenance organizations: Coverage

for mental health and substance abuse, full-time employees,

medium and large private establishments, 1997

Category of care and extent of

coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

Inpatient mental health

Total with coverage .................. 100 100 100 100

Covered in full ....................... 1 1 1 2

Subject to separate limits

only1 ............................... 18 22 18 16

Subject to separate limits

plus major medical .......... 69 65 73 70

Major medical only2 .............. 11 12 8 13

Outpatient mental health

Total with coverage .................. 100 100 100 100

Covered in full ....................... 3 () 1 1 3 ( )

Subject to separate limits

only1 ............................... 21 26 20 18

Subject to separate limits

plus major medical .......... 76 71 78 79

Major medical only2 .............. 2 2 1 3

Inpatient alcohol

detoxification4

Total with coverage .................. 100 100 100 100

Covered in full ....................... 1 2 1 1

Subject to separate limits

only1 ............................... 19 22 19 17

Subject to separate limits

plus major medical .......... 68 65 69 69

Major medical only2 .............. 12 11 10 13

Inpatient alcohol

rehabilitation5

Total with coverage .................. 100 100 100 100

Covered in full ....................... 1 1 3 () 1

Subject to separate limits

only1 ............................... 22 25 22 20

Subject to separate limits

plus major medical .......... 74 70 75 75

Major medical only2 .............. 3 3 3 4

Outpatient alcohol

rehabilitation5

Total with coverage .................. 100 100 100 100

Covered in full ....................... 3 () 1 1 3 ( )

Subject to separate limits

only1 ............................... 22 25 22 20

Subject to separate limits

plus major medical .......... 75 72 76 77

Major medical only2 .............. 3 2 2 3

See footnotes at end of table.

Table 56. Non-health maintenance organizations: Coverage

for mental health and substance abuse, full-time employees,

medium and large private establishments, 1997 — Continued

Category of care and extent of

coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

Inpatient drug detoxification4

Total with coverage .................. 100 100 100 100

Covered in full ....................... 1 2 2 1

Subject to separate limits

only1 ............................... 19 22 19 17

Subject to separate limits

plus major medical .......... 69 66 70 70

Major medical only2 .............. 11 10 10 12

Inpatient drug rehabilitation5

Total with coverage .................. 100 100 100 100

Covered in full ....................... 1 1 1 1

Subject to separate limits

only1 ............................... 21 25 21 20

Subject to separate limits

plus major medical .......... 74 71 76 75

Major medical only2 .............. 3 3 3 4

Outpatient drug

rehabilitation5

Total with coverage .................. 100 100 100 100

Covered in full ....................... 3 () 1 1 3 ( )

Subject to separate limits

only1 ............................... 21 25 21 19

Subject to separate limits

plus major medical .......... 76 73 77 78

Major medical only2 .............. 2 2 2 3

1 Separate limits apply to individual categories of care; e.g., separate

limits or benefits for inpatient mental health. Limits may be set in terms of

dollar or day ceilings on benefits, a requirement that the participant pay a

percentage of costs (coinsurance), or a requirement that the participant pay a

specific amount (deductible or copayment) before reimbursement begins or

services are rendered. 2 Major medical limits apply to all benefits under the plan, not selected

individual benefits. Major medical limits are deductibles and coinsurance

percentages that must be paid by the participant before any plan benefits

begin, and overall limits on plan benefits that can be paid. 3 Less than 0.5 percent. 4 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 5 Rehabilitation is designed to alter abusive behavior in patients once

they are free of acute physical and mental complications

NOTE: Because of rounding, sums of individual items may not equal totals. 
52

Table 57. Health maintenance organizations: Coverage for

selected services, full-time employees, medium and large

private establishments, 1997

Category of care and extent of

coverage

All 

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar 

and

service

employees

Percent

Hospital room and board

Total with coverage .................. 100 100 100 100

Covered in full ....................... 78 79 80 77

Subject to limits1 ................... 22 21 20 23

Inpatient surgery

Total with coverage .................. 100 100 100 100

Covered in full ....................... 94 94 94 94

Subject to limits1 ................... 6 6 6 6

Outpatient surgery2

Total with coverage .................. 100 100 100 100

Covered in full ....................... 83 83 82 83

Subject to limits1 ................... 17 17 18 17

Inpatient physician visits

Total with coverage .................. 100 100 100 100

Covered in full ....................... 94 94 94 95

Subject to limits1 ................... 5 6 5 5

Not determinable .................. 3 ( ) 3 () 1 3 ( )

Office physician visits

Total with coverage .................. 100 100 100 100

Covered in full ....................... 9 11 9 9

Subject to limits1 ................... 91 89 91 91

Diagnostic x-ray and

laboratory services

Total with coverage .................. 100 100 100 100

Covered in full ....................... 94 94 94 94

Subject to limits1 ................... 5 6 5 5

Not determinable .................. 3 ( ) 3 () 1 3 ( )

1 Limits may be set in terms of dollar or day ceilings on benefits, a

requirement that the participant pay a percentage of costs (coinsurance), or a

requirement that the participant pay a specific amount (deductible or

copayment) before reimbursement begins or services are rendered. 2 Charges incurred in the outpatient department of a hospital and outside

of the hospital 3 Less than 0.5 percent.

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

Table 58. Health maintenance organizations: Coverage for

alternatives to hospital care, full-time employees, medium and

large private establishments, 1997

Category of care and extent of

coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales 

employees

Bluecollar

and 

service

employees

Percent

Extended care1

Total with coverage .................. 100 100 100 100

Covered in full ....................... 16 12 16 20

Subject to limits2 ................... 84 88 84 80

Home health care1

Total with coverage .................. 100 100 100 100

Covered in full ....................... 72 73 75 70

Subject to limits2 ................... 28 27 25 30

Hospice care

Total with coverage .................. 100 100 100 100

Covered in full ....................... 55 56 56 54

Subject to limits2 ................... 45 44 44 46

1 Some plans provide this care only to a patient who was previously

hospitalized and is recovering without need of the extensive care provided by

a general hospital. 2 Limits may be set in terms of dollar or day ceilings on benefits, a

requirement that the participant pay a percentage of cost (coinsurance), or a

requirement that the participant pay a specific amount (deductible or

copayment) before reimbursement begins or services are rendered.

NOTE: Because of rounding, sums of individual items may not equal totals.
53

Table 59. Health maintenance organizations: Coverage for

mental health and substance abuse treatment, full-time

employees, medium and large private establishments, 1997

Category of care and extent of

coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and 

service

employees

Percent

Inpatient mental health

Total with coverage .................. 100 100 100 100

Covered in full ....................... 9 9 10 7

Subject to limits1 ................... 91 91 90 93

Outpatient mental health

Total with coverage .................. 100 100 100 100

Covered in full ....................... 1 1 1 1

Subject to limits1 ................... 99 99 99 99

Inpatient alcohol

detoxification2

Total with coverage .................. 100 100 100 100

Covered in full ....................... 36 35 41 33

Subject to limits1 ................... 64 65 59 67

Inpatient alcohol

rehabilitation3

Total with coverage .................. 100 100 100 100

Covered in full ....................... 10 10 12 10

Subject to limits1 ................... 90 90 88 90

Outpatient alcohol

rehabilitation3

Total with coverage .................. 100 100 100 100

Covered in full ....................... 2 2 2 2

Subject to limits1 ................... 98 98 98 98

See footnotes at end of table.

Table 59. Health maintenance organizations: Coverage for

mental health and substance abuse treatment, full-time

employees, medium and large private establishments, 1997 —

Continued

Category of care and extent of

coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and 

service

employees

Percent

Inpatient drug detoxification2

Total with coverage .................. 100 100 100 100

Covered in full ....................... 36 35 41 33

Subject to limits1 ................... 64 65 59 67

Inpatient drug rehabilitation3

Total with coverage .................. 100 100 100 100

Covered in full ....................... 10 9 12 10

Subject to limits1 ................... 90 91 88 90

Outpatient drug

rehabilitation3

Total with coverage .................. 100 100 100 100

Covered in full ....................... 2 2 2 3

Subject to limits1 ................... 98 98 98 97

1 Limits may be set in terms of dollar or day ceilings on benefits, a

requirement that the participant pay a percentage of cost (coinsurance), or a

requirement that the participant pay a specific amount (deductible or

copayment) before reimbursement begins or services are rendered. 2 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 3 Rehabilitation is designed to alter abusive behavior in patients once

they are free of acute physical and mental complications.

NOTE: Because of rounding, sums of individual items may not equal totals. 
54

Table 60. Medical care benefits:1 Fee arrangement and

financial intermediary, full-time employees, medium and large

private establishments, 1997

Fee arrangement

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

medical care ....................... 29,340 8,455 7,180 13,705

Percent

Total with medical care ............. 100 100 100 100

Traditional fee-for-service2 ... 27 20 22 33

Self insured3 ..................... 19 13 16 25

With administrative

services only

contract4 ................. 11 8 8 15

Without administrative

services only

contract ................... 7 4 8 8

Not determinable .......... 1 5 () 1 3

Commercial insurance

company ..................... 4 4 4 3

Blue Cross/Blue Shield ..... 3 3 1 4

Independent organization6 5 ( ) 5 ( ) 5 ( ) 5 ( )

Combined financed7 ......... 5 ( ) 5 ( ) 5 ( ) 5 ( )

Preferred provider

organization8 .................. 40 40 42 39

Self insured3 ..................... 28 27 28 28

With administrative

services only

contract4 ................. 16 18 17 15

Without administrative

services only

contract ................... 10 8 9 11

Not determinable .......... 2 1 3 1

Commercial insurance

company ..................... 7 7 9 6

Blue Cross/Blue Shield ..... 5 5 4 5

See footnotes at end of table.

Table 60. Medical care benefits:1 Fee arrangement and

financial intermediary, full-time employees, medium and large

private establishments, 1997 — Continued

Fee arrangement

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

Total with medical care

Preferred provider

organization8

Independent organization6 5 () 1 1 5 ( )

Combined financed7 ......... 5 ( ) 5 ( ) 5 ( ) 5 ( )

Health maintenance

organization9 .................. 33 40 36 28

Commercial insurance

company ..................... 6 7 9 5

Blue Cross/Blue Shield ..... 5 6 4 4

Independent organization6 22 27 23 19

Combined financed7 ......... 5 ( ) 5 ( ) 5 ( ) 5 ( )

Other10 .................................. 1 1 1 1

1 Plans providing services or payments for services rendered in the

hospital or by a physician. Excludes plans that provided only dental, vision,

or prescription drug coverage. 2 These plans pay for specific medical procedures as expenses are

incurred. 3 Includes plans that are financed on a pay-as-you-go basis, plans

financed through contributions to a trust fund established to pay benefits, and

plans operating their own facilities if at least partially financed by employer

contributions. Includes plans that are administered by a commercial carrier

through Administrative Services Only (ASO) contracts. 4 An arrangement where an establishment pays the cost of benefits, but

hires another establishment to handle administrative services. 5 Less than 0.5 percent. 6 These organizations typically provide and finance all benefits, but are

not affiliated with an insurance company or Blue Cross/Blue Shield. 7 These are plans where the financing comes from two different kinds of

financial intermediaries. For example, an establishment contracts with Blue

Cross/Blue Shield to pay part of the benefits and a commercial company to

pay the other benefits. 8 A preferred provider organization (PPO) is a group of hospitals and

physicians that contracts to provide comprehensive medical services. To

encourage use of organization members, the health care plan limits

reimbursement rates when participants use nonmember services. 9 Delivers comprehensive health care on a prepayment rather than

fee-for-service basis. 10 Includes exclusive provider organizations, which are groups of hospitals

and physicians that contract to provide comprehensive medical services. 

Participants are required to obtain services from members of the organization

in order to receive plan benefits.

NOTE: Because of rounding, sums of individual items may not equal totals. 
55

Table 61. Health maintenance organizations: Summary of

selected features, full-time employees, medium and large

private establishments, 1997

Selected

features

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in HMO

plans ................................... 9,683 3,353 2,556 3,774

Percent

Total in HMO plans ................... 100 100 100 100

Model type:

Group/staff1 ...................... 24 27 21 23

Individual practice

association2 ................ 41 39 41 43

Mixed model ..................... 24 24 28 21

Not determinable .............. 11 10 10 13

Point of service feature3 ....... 19 19 19 19

Federally qualified ................ 62 64 65 57

Limit on copayments4 ........... 30 30 28 32

Preventive dental care5 ........ 10 12 11 7

Vision screening or

examinations .................. 85 86 85 83

1 Care is provided at centralized locations. 2 Care is provided by doctors working out of their offices. 3 Enrollees may obtain care from non-HMO providers, with limited

reimbursement. 4 In these plans, HMO’s limit the dollar amount the individual pays after

which coverage is in full. For example, there is a copayment limit of $1,000

after which the HMO covers all services at 100 percent. 5 Includes dental examinations and/or x-rays only.

NOTE: Because of rounding, sums of individual items may not equal totals.
56

Table 62. Non-health maintenance organizations: Amount of individual deductible,1 full-time employees, medium and large

private establishments, 1997

Deductible2

All employees Professional, technical,

and related employees

Clerical and sales

employees

Blue-collar and service

employees

All

nonHMO

plans3

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans3

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans3

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans3

Feeforservice

plans

Preferred

provider

organizations

Number (in thousands) in

non-HMO plans .................. 19,658 7,784 11,608 5,102 1,679 3,344 4,624 1,560 2,986 9,931 4,545 5,279

Percent

Total in non-HMO plans ............ 100 100 100 100 100 100 100 100 100 100 100 100

Deductible specified ............. 72 93 60 70 94 59 66 93 53 77 92 66

Deductible on an annual

basis4 .......................... 72 91 60 69 91 59 66 93 53 76 91 65

Based on earnings5 ...... 5 7 4 5 7 4 6 10 4 4 6 3

Flat dollar amount6 ....... 67 84 57 63 84 55 60 83 49 72 85 62

$100 .......................... 13 21 8 9 17 6 9 15 5 17 25 10

$150 .......................... 9 8 9 9 7 11 5 3 6 10 10 10

$200 .......................... 17 20 16 13 15 12 16 19 14 20 22 19

$250 .......................... 10 12 8 11 16 8 12 15 11 8 10 6

$300 .......................... 546656435556

Over $300 ................. 12 17 9 14 24 9 13 26 7 10 11 10

Other ................................. 1 1 7 () 1 3 - 7 ( ) 7 ( ) 7 () 1 1 7 ( )

No deductible ........................ 28 7 40 30 6 41 34 7 47 23 8 34

Not determinable .................. 7 ( ) 7 () - 7 ( ) 7 () - 7 ( ) 7 () - 7 ( ) 7 () -

Average8

Average annual deductible ....... $268 $281 $254 $310 $355 $275 $298 $354 $250 $237 $230 $245

1 The deductible is the amount of covered expenses that an individual

must pay before any charges are paid by the medical care plan. 

Deductibles that apply separately to a specific category of expense, such as

a deductible for each hospital admission, were excluded from this

tabulation. 2 Amount of deductible described is for each insured person. However,

many plans contain a maximum family deductible. In some plans, the

individual and the family deductibles are identical. If the deductible applied

only to dependents’ coverage, it was not tabulated. 3 These plans include fee-for-service, preferred provider organizations,

and exclusive provider organizations. Data are not shown separately for

exclusive provider organizations.

4 Deductibles are calculated on an annual basis, with the enrollee

responsible for satisfying a new deductible requirement each plan year. 5 These plans have deductibles that vary by the amount of the

participant’s earnings. A typical provision is 1 percent of annual earnings

with a maximum deductible of $150. 6 Includes other amounts not shown separately. 7 Less than 0.5 percent. 8 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

 Where applicable, dash indicates no employees in this category.
57

Table 63. Non-health maintenance organizations: Relationship of individual and family deductibles,1 full-time employees,

medium and large private establishments, 1997

Relationship of individual and

family deductibles

All employees Professional, technical,

and related employees

Clerical and sales

employees

Blue-collar and service

employees

All

nonHMO

plans2

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans2

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans2

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans2

Feeforservice

plans

Preferred

provider

organizations

Number (in thousands) in

non-HMO plans .................. 19,658 7,784 11,608 5,102 1,679 3,344 4,624 1,560 2,986 9,931 4,545 5,279

Percent

Total with non-HMO plans ........ 100 100 100 100 100 100 100 100 100 100 100 100

Individual and family

deductibles specified ...... 61 74 54 61 79 53 56 77 46 64 71 59

Family deductible is

multiple of individual

deductible3 .................. 53 65 47 54 71 47 49 72 38 55 60 51

2 times .......................... 24 29 22 29 40 24 21 28 17 24 25 23

2.5 times ....................... 323111111435

3 times .......................... 22 28 18 20 26 18 25 38 18 22 26 19

Specified number of

individual deductibles

must be met to satisfy

family deductible4 ....... 8 9 7 6 8 6 7 4 8 9 10 8

Less than 3 individual

deductibles ............. 452332434472

3 individual deductibles 435453314536

More than 3 individual

deductibles ............. 5 ( ) 5 () - 5 ( ) 5 () - - - - 5 ( ) 5 () -

No individual and/or family

deductible ....................... 39 26 46 39 21 47 44 23 54 36 29 41

Not determinable .................. 5 ( ) 5 () - 5 ( ) 5 () - 5 ( ) 5 () - 5 ( ) 5 () -

1 Deductibles are calculated on an annual basis with the enrollee

responsible for satisfying a new deductible requirement each plan year. 2 These plans include fee-for-service, preferred provider organizations,

and exclusive provider organizations. Data are not shown separately for

exclusive provider organizations. 3 For example, the individual deductible requirement is $100 while the

family deductible requirement is $300. Includes some multiples not shown

separately. 4 For example, the individual requirement is $100 and three individual

deductibles must be met to satisfy the family requirement. 5 Less than 0.5 percent.

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

 Where applicable, dash indicates no employees in this category.
58

Table 64. Non-health maintenance organizations: Coinsurance rates, full-time employees, medium and large private

establishments, 1997

Coinsurance

All employees Professional, technical,

and related employees

Clerical and sales

employees

Blue-collar and service

employees

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

Number (in thousands) in

non-HMO plans .................. 19,658 7,784 11,608 5,102 1,679 3,344 4,624 1,560 2,986 9,931 4,545 5,279

Percent

Total with non-HMO plans ........ 100 100 100 100 100 100 100 100 100 100 100 100

With coinsurance2 ................ 80 93 73 78 94 71 79 93 73 82 93 73

Coinsurance rate3

80 percent ..................... 54 83 36 51 82 36 52 83 36 57 84 36

85 percent ..................... 324213314324

90 percent ..................... 19 2 30 21 2 30 19 1 29 18 2 31

Other percent ................ 453482574342

Without coinsurance4 ........... 20 7 27 22 6 29 21 7 27 18 7 27

1 These plans include fee-for-service, preferred provider organizations,

and exclusive provider organizations. Data are not shown separately for

exclusive provider organizations. 2 Represents the initial coinsurance in plans that have 100 percent

coverage after the individual pays a specified dollar amount toward

expenses. For example, the plan pays 80 percent until the individual’s

out-of-pocket expenses reach $1,000, and then coverage is at 100 percent.

3 A few plans have more than one coinsurance rate. In those cases,

the coinsurance rate shown is that which applies to the majority of benefits

under the plan. Includes variable coinsurance rates not shown separately. 4 Includes plans with overall benefit limitations, such as maximum dollar

amounts and deductibles, where the coinsurance rate is 100 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
59

Table 65. Non-health maintenance organizations: Maximum out-of-pocket expense provisions, full-time employees, medium

and large private establishments, 1997

Type and

amount of

out-of-pocket

expense

provision

All employees Professional, technical,

and related employees

Clerical and sales

employees

Blue-collar and service

employees

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

Number (in thousands) with

non-HMO plans .................. 19,658 7,784 11,608 5,102 1,679 3,344 4,624 1,560 2,986 9,931 4,545 5,279

Percent

Total with non-HMO plans ........ 100 100 100 100 100 100 100 100 100 100 100 100

With limit on out-of-pocket

expense .......................... 79 85 76 79 91 74 79 89 74 80 82 80

With an annual dollar

maximum on

out-of-pocket

expense2 .................... 70 75 69 69 80 64 69 78 65 72 71 74

Per individual:

Less than $500 ......... 565694454556

$500 .......................... 657535545869

$501 - $999 .............. 9 8 10 10 5 13 10 9 11898

$1000 ........................ 16 12 18 16 17 15 13 9 15 17 12 21

$1,001 - $1,499 ........ 7 9 6 5 6 4 8 12 5 8 9 7

$1,500 ....................... 7 9 5 5 7 4 5 5 5 9 11 7

$1,501 - $1,999 ........ 343463352334

$2,000 ....................... 7 8 7 9 10 8 8 8 8 7 7 6

Greater than $2,000 10 13 8 10 17 7 14 22 10897

Per family:

Less than $1,000 ...... 324425463314

$1,000 ....................... 444222333656

$1,001 - $1,999 ........ 8 6 9 8 4 10 8 4 10 8 8 9

$2,000 ....................... 556887545445

$2,001 - $2,999 ........ 6 7 6 7 7 7 7 12 5 5 5 6

$3,000 ....................... 8 7 9 5 6 5 6 4 7 11 9 13

Greater than $3,000 15 18 13 18 24 15 18 29 12 12 13 12

No family maximum .. 12 16 10 12 19 8 9 12 7 15 17 13

Family maximum

cannot be

computed3 .......... 7 8 7 5 7 4 9 6 11 7 9 6

Annual maximum on

out-of-pocket expense

based on earnings ...... 666767888454

Annual maximum on

out-of-pocket expense

varies by coinsurance

rate4 ............................ 342223231352

Other ................................. 5 () 1 - 1 3 - - - - 5 () 1 -

No out-of-pocket expense

required6 ......................... 9 4 11 9 2 13 11 5 14749

No limit on out-of-pocket

expense .......................... 11 11 11 12 7 14 9 6 10 12 14 11

Not determinable .................. 1 5 () 1 5 ( ) 5 ( ) 5 () 2 5 () 2 5 ( ) 5 ( ) 5 ( )

See footnotes at end of table.
60

Table 65. Non-health maintenance organizations: Maximum out-of-pocket expense provisions, full-time employees, medium

and large private establishments, 1997 — Continued

Type and

amount of

out-of-pocket

expense

provision

All employees Professional, technical,

and related employees

Clerical and sales

employees

Blue-collar and service

employees

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

All

nonHMO

plans1

Feeforservice

plans

Preferred

provider

organizations

Average7

Average annual dollar

maximum on individual

out-of-pocket expense ........ $1,578 $1,651 $1,527 $1,565 $1,703 $1,478 $1,924 $1,906 $1,943 $1,432 $1,533 $1,349

Average annual dollar

maximum on family

out-of-pocket expense ........ 3,101 3,337 2,949 3,375 3,853 3,134 3,392 3,903 3,049 2,820 2,855 2,794

1 These plans include fee-for-service, preferred provider organizations,

and exclusive provider organizations. Data are not shown separately for

exclusive provider organizations. 2 Deductible amounts were excluded from computation of the

out-of-pocket dollar limits. With rare exceptions, an out-of-pocket limit was

specified on an annual basis. Few workers were in plans where the

expense limit applied to a disability or a period other than a year. Charges

for certain services, such as mental health care, may not be counted toward

the out-of-pocket maximum. 3 These are plans where a family maximum is stated in such a way that

it cannot be computed. For example, the individual out-of-pocket expense

is limited to $1,000 per year and the family out-of-pocket expense is limited

to three individuals. The family out-of-pocket expense cannot be computed

because each of the three individuals must separately reach an

out-of-pocket limit of $1,000. Thus, if two individuals each reach $1,000 in

their out-of-pocket expenses, and two other family members reach $900

and $800 respectively in out-of-pocket expenses, the family out-of-pocket

limit would not have been met. A family dollar maximum cannot be

computed in this example. 4 Some plans reimburse medical expenses at more than one

coinsurance rate. They impose a limit on out-of-pocket expenses by

specifying a maximum on covered medical expenses beyond which all

expenses are paid at 100 percent. 5 Less than 0.5 percent. 6 All covered expenses are paid at 100 percent. 7 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

 Where applicable, dash indicates no employees in this category.
61

Table 66. Non-health maintenance organizations: Maximum benefit

provisions, full-time employees, medium and large private establishments,

1997

Maximum1 All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

non-HMO plans .................. 19,658 5,102 4,624 9,931

Percent

Total with non-HMO plans ........ 100 100 100 100

With maximum limits ............. 68 67 59 74

Lifetime maximum only2 ... 64 64 56 68

Less than $250,000 ...... 1 3 ( ) 3 () 2

$250,000 ....................... 4 2 2 6

$500,000 ....................... 6 4 5 8

$1,000,000 .................... 41 43 36 42

More than $1,000,000 .. 11 14 13 8

Annual or disability

maximum only ............ 2 1 1 2

Both lifetime and annual or

disability maximums ... 2 1 2 2

Other maximum ................ 3 ( ) 3 () - 1

Without maximum limits ........ 30 32 40 25

Not determinable .................. 1 1 1 1

Average4

Average lifetime maximum ....... $1,089,175 $1,245,636 $1,225,040 $963,175

1 Maximum described is for each insured person. Where the maximum differed for

employees and dependents, the employee maximum was tabulated. 2 Includes other lifetime maximum limits not shown separately. 3 Less than 0.5 percent. 4 The average is presented for all covered workers; averages exclude workers without the

plan provision.

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

applicable, dash indicates no employees in this category.
62

Table 67. Non-health maintenance organizations: Average major medical

provisions, full-time employees, medium and large private establishments,

1997

Average1 All

employees

Professional,

technical,

and

related

employees

Clerical

and sales

employees

Bluecollar and

service

employees

Annual deductible2

Individual .............................. $268 $310 $298 $237

Family ................................... 647 721 789 550

Annual out-of-pocket expense

maximum3

Individual .............................. 1,578 1,565 1,924 1,432

Family ................................... 3,101 3,375 3,392 2,820

Lifetime maximum4 ................... 1,089,175 1,245,636 1,225,040 963,175

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

plan provision. 2 The deductible is the amount of covered expenses that an individual or family must pay

before any charges are paid by the medical care plan. Deductibles that apply separately to a

specific category of expense, such as a deductible for each hospital admission, were excluded

from this tabulation. 3 The out-of-pocket expense maximum is the amount an individual or family must pay

before the plan will pay 100 percent of additional charges. Deductible amounts were excluded

from computation of the out-of-pocket dollar limits. Usually, out-of-pocket limits were specified

on an annual basis. Charges for certain services, such as mental health care, may not be

counted toward the out-of-pocket maximum. 4 The maximum is the total amount of expenses that the plan will pay. Maximum

described is for each insured person. Where the maximum differed for employees and

dependents, the employee maximum was tabulated.
63

Table 68. Preferred provider organizations:1 Summary of

selected features, full-time employees, medium and large

private establishments, 1997

Type of services

and incentives

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in PPO

plans ................................... 11,608 3,344 2,986 5,279

Percent

Total with PPO plans ................ 100 100 100 100

Services subject to PPO

incentive:

Hospital room and board .. 94 97 97 91

Surgery ............................. 96 96 96 95

Physician’s in-hospital

visits ............................ 95 96 96 94

Office visits ....................... 91 92 92 90

Outpatient prescription

drugs ........................... 34 38 32 34

Type of PPO incentives:2

Coinsurance rate differs ... 92 95 89 91

Lower annual deductible ... 54 57 57 51

Higher lifetime maximum

benefit limit ................. 9 10 13 6

Lower catastrophic

maximum limit ............. 62 64 62 61

Lower hospital deductible 17 19 19 16

Office visits copayment ..... 53 55 60 48

Outpatient prescription

drugs copayment ........ 16 16 14 17

Discounted for PPO3 ............ 10 12 12 7

Not determinable .................. 2 1 2 2

1 A preferred provider organization (PPO) is a group of hospitals and

physicians that contract to provide comprehensive medical services. To

encourage use of organization members, the health care plan limits

reimbursement rates when participants use nonmember services. 2 Sum of individual items is greater than the total because many plan

participants were in plans with more than one incentive. 3 The amount of total expenses incurred by the individual is discounted

under the PPO. For example, under the non-PPO, total expenses are

$10,000; under the PPO, total expenses are discounted by 10 percent.

Table 69. Preferred provider organizations:1 Coinsurance rate

for preferred service providers versus other service providers,

full-time employees, medium and large private establishments,

1997

Coinsurance

rate comparison

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in PPO

plans ................................... 11,608 3,344 2,986 5,279

Percent

Total with PPO plans ................ 100 100 100 100

Overall coinsurance rate

differs .............................. 92 95 89 91

100 vs 80 .......................... 17 15 15 20

90 vs 80 ............................ 8 8 7 8

100 vs 70 .......................... 9 12 8 7

90 vs 70 ............................ 20 17 18 23

80 vs 70 ............................ 5 6 5 5

80 vs 60 ............................ 14 16 16 11

Other coinsurance rate ..... 19 21 19 17

Overall coinsurance rate

does not differ ................. 7 5 9 7

Not determinable .................. 2 1 2 2

1 A preferred provider organization (PPO) is a group of hospitals and

physicians that contract to provide comprehensive medical services. To

encourage use of organization members, the health care plan limits

reimbursement rates when participants use nonmember services.

NOTE: Because of rounding sums of individual items may not equal totals.
64

Table 70. Medical care benefits: Availability of managed care

benefits, full-time employees, medium and large private

establishments, 1997

Managed care plan

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

medical care ....................... 29,340 8,455 7,180 13,705

Percent

Total with medical care ............. 100 100 100 100

With managed care benefits 95 97 96 93

Traditional fee-for-service

with managed care

features1 ..................... 21 16 17 26

Preferred provider

organization2 .............. 40 40 42 39

Exclusive provider

organization3 .............. 1 1 1 1

Prepaid health

maintenance

organization4 .............. 33 40 36 28

Without managed care ......... 5 3 4 6

Not determinable .................. 1 5 ( ) 5 () 1

1 Fee-for-service plans with preadmission certification or mandatory

second surgical opinion features. 2 A preferred provider organization (PPO) is a group of hospitals and

physicians that contract to provide comprehensive medical services. To

encourage use of organization members, the health care plan limits

reimbursement rates when participants use nonmember services. 3 An exclusive provider organization is a group of hospitals and

physicians that contract to provide comprehensive medical services. 

Participants are required to obtain services from members of the organization

to receive plan benefits. 4 A health maintenance organization provides a prescribed set of benefits

to enrollees for a fixed payment. 5 Less than 0.5 percent.

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

Table 71. Non-health maintenance organizations: Availability

of selected cost containment features, full-time employees,

medium and large private establishments, 1997

Cost containment

features

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in

non-HMO plans .................. 19,658 5,102 4,624 9,931

Percent

Total with non-HMO plans ........ 100 100 100 100

With cost containment

features ........................... 73 74 70 74

Preadmission certification

requirement ................ 59 59 57 60

Utilization or concurrent

review ......................... 34 37 33 32

Preadmission testing ........ 42 42 34 46

Nonemergency weekend

admission restriction ... 11 8 8 14

Hospital audit program ..... 8 8 12 6

Other feature .................... 1 1 1 1
65

Table 72. Non-health maintenance organizations: 

Prehospitalization certification requirements, full-time

employees, medium and large private establishments, 1997

Preadmission

requirements

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

preadmission certification ... 11,595 3,006 2,638 5,951

Percent

Total with preadmission

certification ......................... 100 100 100 100

Plan does not impose

penalty ............................ 3 4 4 1

Plan does impose penalty .... 97 96 96 99

No benefit ......................... 3 2 3 4

Deductible on hospital

admission ................... 38 35 46 36

Less than $200 ............. 7 6 14 5

$200 - $299 .................. 12 9 14 12

$300 - $399 .................. 7 7 6 7

$400 - $499 .................. 4 3 3 4

$500 or greater ............. 8 9 9 8

Reduced coinsurance ....... 37 38 30 39

Without a maximum

dollar penalty .......... 26 26 22 28

With a maximum dollar

penalty .................... 10 11 8 11

Reduced coinsurance and

separate deductible

per admission ............. 2 1 2 2

Other ................................. 3 2 4 3

Penalty not determinable .. 14 18 11 14

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

Table 73. Non-health maintenance organizations: Second

surgical opinion provisions, full-time employees, medium and

large private establishments, 1997

Second surgical

opinion requirements

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in

non-HMO plans .................. 19,658 5,102 4,624 9,931

Percent

Total with non-HMO plans ........ 100 100 100 100

With second surgical opinion

program .......................... 50 50 50 50

With no penalties for

non-compliance .......... 32 31 36 30

With penalties for

non-compliance .......... 18 19 14 20

Coinsurance reduced

to:

50 percent ................. 6 8 5 6

Other ......................... 6 5 4 7

Lower schedule of

payments ............ 1 ( ) 1 ( ) 1 ( ) 1 ( )

No coverage ................. 1 ( ) 1 ( ) 1 ( ) 1 ( )

Deductible imposed ...... 4 3 3 5

Other penalties ............. 1 1 () 1 1

Penalty not

determinable ........... 2 2 1 2

No second surgical opinion

program2 ......................... 50 50 50 50

1 Less than 0.5 percent. 2 Includes plans in which documentation does not detail a second

surgical opinion program. By definition, managed care plans, such as

preferred provider organizations integrate second surgical opinion programs

as part of their structure. These managed care plans are quite often

responsible for initiating the second surgical opinion program. When this

occurs, that program was not tabulated.

NOTE: Because of rounding, sums of individual items may not equal totals.
66

Table 74. Non-health maintenance organizations: Start of plan

benefits for hospital room and board, full-time employees,

medium and large private establishments, 1997

Start of coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

 and

service

employees

Number (in thousands) in

non-HMO plans with

hospital room and board

coverage ............................. 19,658 5,102 4,624 9,931

Percent

Total in non-HMO plans with

hospital room and board

coverage ............................. 100 100 100 100

First dollar coverage only1 ........ 12 14 14 10

First dollar coverage then major

medical2 .............................. 19 22 15 20

Major medical only .................... 68 64 70 70

1 Includes plans in which all expenses were reimbursed for the full

semiprivate room rate up to a specified dollar amount, or for a limited or

unlimited number of days. 2 Major medical limits apply to all benefits under the plan, not selected

individual benefits. Major medical limits are deductibles and coinsurance

percentages that must be paid by the participant before any plan benefits

begin, and overall limits on plan benefits that can be paid.

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

Table 75. Non-health maintenance organizations: Types of

limitations on hospital room and board coverage, full-time

employees, medium and large private establishments, 1997

Type of limit

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in

non-HMO plans with

hospital room and board

coverage ............................. 19,658 5,102 4,624 9,931

Percent

Total in non-HMO plans with

hospital room and board

coverage ............................. 100 100 100 100

Covered in full ....................... 7 9 8 6

Subject to limits other than

major medical1 ................ 24 27 21 24

Separate copayment ........ 14 17 14 12

Separate coinsurance ....... 2 2 1 3

Limits on days ................... 10 10 7 11

Per confinement ........... 8 9 6 9

Per year ........................ 1 1 2 () 1

Limit on dollars ................. 3 1 1 4

Other ................................. 1 1 1 2 ( )

Major medical limits only ...... 68 64 70 70

1 Major medical limits apply to all benefits under the plan, not selected

individual benefits. Major medical limits are deductibles and coinsurance

percentages that must be paid by the participant before any plan benefits

begin, and overall limits on plan benefits that can be paid. 2 Less than 0.5 percent.

NOTE: Sum of individual items is greater than the total because some

participants were in plans with more than one type of limit.
67

Table 76. Hospital room and board coverage: Copayment provisions,1 by type of plan, full-time employees, medium and large

private establishments, 1997

Type of copayment provision

All employees Professional, technical,

and related employees

Clerical and sales

employees

Blue-collar and service

employees

HMO

plans2

Non-HMO plans

HMO

plans2

Non-HMO plans

HMO

plans2

Non-HMO plans

HMO

plans2

Non-HMO plans

Feeforservice

plans3

Preferred

provider

organization4

Feeforservice

plans3

Preferred

provider

organization4

Feeforservice

plans3

Preferred

provider

organization4

Feeforservice

plans3

Preferred

provider

organization4

Number (in thousands) with

separate copayment ........... 1,638 712 1,851 492 225 596 439 94 520 707 393 735

Percent

Total with separate copayment 100 100 100 100 100 100 100 100 100 100 100 100

Per confinement ................... 70 77 79 74 93 79 64 91 80 70 64 77

$100 .................................. 24 39 18 21 37 15 12 45 12 33 39 24

$200 .................................. 9 17 21 5 12 20 16 23 25 7 18 19

$250 .................................. 24 4 5 32 10 6 28 7 8 17 5 () 3

$300 .................................. 3 13 6 4 31 5 1 - 3368

$400 .................................. - - 5 () - - 5 () - - 5 () - - 5 ( )

$500 .................................. 1 - 6 1 - 9 1 - 7 2 - 3

Great than $500 ................ 1 1 - 5 () - - 1 9 - 5 () - -

Other ................................. 8 2 23 11 2 24 5 8 26 9 1 19

Limited to maximum amount

per year6 ......................... 26 13 15 34 12 15 33 34 14 16 9 15

Copayment per year ............. 832512 5 ( ) 2 2 14 5 4

Copayment per day .............. 25 2 21 22 2 23 36 - 22 21 2 19

Copayment limited to a

specified number of days - 20 - - 5 - - 6 - - 31 -

1 A copayment is the amount of covered expenses that an individual

must pay before any charges are paid by the medical care plan. 2 Delivers comprehensive health care on a prepayment rather than

fee-for-servce basis. 3 These plans pay for specific medical procedures as expenses are

incurred. 4 A preferred provider organization (PPO) is a group of hospitals and

physicians that contracts to provide comprehensive medical services. To

encourage use of organization members, the health care plan limits

reimbursement rates when participants use nonmember services. 5 Less than 0.5 percent. 6 Limits placed on the maximum copayment an individual pays during

the year. For example, an individual is subject to a copayment of $100 per

confinement with a limit of $300 per year.

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

 Where applicable, dash indicates no employees in this category.
68

Table 77. Non-health maintenance organizations: Start of plan

benefits for extended care facilities, full-time employees,

medium and large private establishments, 1997

Start of coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in

non-HMO plans with

extended care benefits ....... 14,922 4,103 3,630 7,189

Percent

Total in non-HMO plans with

extended care benefits ....... 100 100 100 100

First dollar coverage only1 .... 14 16 14 13

First dollar coverage then

major medical2 ................ 68 63 68 70

Major medical only ................ 18 21 17 18

1 Includes plans in which all expenses were reimbursed for the full

semiprivate room rate, up to a specified dollar amount, or for a limited or

unlimited number of days. 2 Major medical limits apply to all benefits under the plan, not selected

individual benefits. Major medical limits are deductibles and coinsurance

percentages that must be paid by the participant before any plan benefits

begin, and overall limits on plan benefits that can be paid.

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

Table 78. Non-health maintenance organizations: Types of

limitations on extended care facilities, full-time employees,

medium and large private establishments, 1997

Type of limit

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in

non-HMO plans with

extended care benefits ....... 14,922 4,103 3,630 7,189

Percent

Total in non-HMO plans with

extended care benefits ....... 100 100 100 100

Covered in full ....................... 4 4 4 3

Subject to limits other than

major medical1 ................ 78 75 78 79

Limit on days .................... 72 70 73 72

Limit on dollars ................. 2 3 2 2

Separate coinsurance ....... 7 8 7 7

Limited to maximum

percentage rate of

prior hospital

confinement ................ 14 10 16 15

Other limits ....................... 5 6 5 4

Limits not determinable .... 2 () - 2 ( ) 2 ( )

Major medical limits only ...... 18 21 17 18

1 Major medical limits apply to all benefits under the plan, not selected

individual benefits. Major medical limits are deductibles and coinsurance

percentages that must be paid by the participant before any plan benefits

begin, and overall limits on plan benefits that can be paid. 2 Less than 0.5 percent.

NOTE: Sum of individual items is greater than the total because some

participants were in plans with more than one type of limit. Where applicable,

dash indicates no employees in this category.
69

Table 80. Health maintenance organizations: Extent of

coverage for extended care facilities, full-time employees,

medium and largel private establishments, 1997

Type of coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in HMO

plans with extended care

benefits ............................... 8,097 2,777 1,931 3,390

Percent

Total in HMO plans with

extended care benefits ....... 100 100 100 100

Covered in full ....................... 16 12 16 20

Day limit ................................ 79 84 80 74

Per year ............................ 62 66 57 60

30 days ......................... 3 4 3 2

60 days ......................... 11 9 8 15

90 days ......................... 3 3 2 3

100 days ....................... 33 38 37 27

Other ............................. 12 12 7 14

Per confinement ............... 14 15 16 11

Per lifetime ........................ 1 2 1 1

Not determinable .............. 2 1 6 2

A limit other than

a day limit applies ........... 5 5 5 6

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

Table 79. Non-health maintenance organizations: Limitations

on days of extended care facility coverage, full-time

employees, medium and large private establishments, 1997

Day limits

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in

non-HMO plans with day

limits on extended care ....... 10,274 2,732 2,617 4,926

Percent

Total in non-HMO plans with

day limits on extended care 100 100 100 100

First dollar coverage1 for a

limited number of days

per confinement .............. 9 8 6 10

Major medical coverage2 for

a limited number of days

per confinement .............. 43 39 44 45

60 days ............................. 16 15 18 16

90 days ............................. 3 4 3 3

100 days ........................... 4 4 8 1

120 days ........................... 12 11 12 14

Other ................................. 8 6 3 11

First dollar coverage1 for a

limited number of days

per year .......................... 8 14 10 5

Major medical coverage2 for

a limited number of days

per year .......................... 38 39 40 37

60 days ............................. 13 12 10 15

90 days ............................. 2 3 3 1

100 days ........................... 8 6 8 9

120 days ........................... 11 12 15 8

Other ................................. 5 5 5 5

First dollar coverage1 for a

limited number of days

per lifetime ...................... 1 1 1 2

Major medical coverage2 for

a limited number of days

per lifetime ...................... 1 1 3 () 1

Days not determinable .......... 3 ( ) 3 ( ) 3 () -

1 Includes plans in which all expenses were reimbursed for the full

semiprivate room rate, up to a specified dollar amount, or for a limited or

unlimited number of days. 2 Major medical limits apply to all benefits under the plan, not selected

individual benefits. Major medical limits are deductibles and coinsurance

percentages that must be paid by the participant before any plan benefits

begin, and overall limits on plan benefits that can be paid. 3 Less than 0.5 percent.

NOTE: Sum of individual items is greater than the total because some

participants were in plans with more than one type of day limit. Where

applicable, dash indicates no employees in this category.
70

Table 81. Non-health maintenance organizations: Extent of

coverage for surgical services, full-time employees, medium

and large private establishments, 1997

Type of surgery and extent of

coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in

non-HMO plans with

inpatient surgery ................. 19,658 5,102 4,624 9,931

Number (in thousands) in

non-HMO plans with

outpatient surgery ............... 19,658 5,102 4,624 9,931

Percent

Inpatient surgery

Total in non-HMO plans with

inpatient surgery ............. 100 100 100 100

Covered in full ................... 14 18 14 13

Subject to limits other than

major medical ............. 5 4 5 6

Dollar limit ..................... 2 1 2 4

Separate coinsurance ... 1 1 1 1

Separate deductible ...... 2 1 2 2

Other limit ..................... 1 () 1 1 ( ) 1 ( )

Major medical limits only2 80 78 81 81

Outpatient surgery3

Total in non-HMO plans with

outpatient surgery ........... 100 100 100 100

Covered in full ................... 13 16 14 12

Subject to limits other than

major medical ............. 9 9 9 9

Dollar limit ..................... 2 1 1 3

Separate coinsurance ... 1 1 1 1

Separate deductible ...... 5 6 7 4

Other limit ..................... 1 ( ) 1 ( ) 1 ( ) 1 ( )

Major medical limits only2 78 76 78 79

1 Less than 0.5 percent. 2 Major medical limits apply to all benefits under the plan, not selected

individual benefits. Major medical limits are deductibles and coinsurance

percentages that must be paid by the participant before any plan benefits

begin, and overall limits on plan benefits that can be paid. 3 Charges incurred in the outpatient department of a hospital and outside

of the hospital.

NOTE: Sum of individual items is greater than the total because some

participants were in plans with more than one type of limit. Where applicable,

dash indicates no employees in this category.

Table 82. Health maintenance organizations: Extent of

coverage for physician’s office visits, full-time employees,

medium and large private establishments, 1997

Type of

coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in HMO

plans with physicians’s

office visits coverage .......... 9,683 3,353 2,556 3,774

Percent

Total in HMO plans with

physicians’s office visits

coverage ............................. 100 100 100 100

Covered in full ....................... 9 11 9 9

Subject to a copayment ........ 90 88 91 91

Less than $5 per visit ........ 2 1 1 2

$5 per visit ........................ 29 30 29 28

$6-9 per visit ..................... 1 1 2 1

$10 per visit ...................... 45 44 44 45

More than $10 per visit ..... 12 10 14 13

Unspecified copayment .... 2 2 1 2

Subject to other limits only .... 1 () 1 1 ( ) 1 ( )

Not determinable .................. 1 ( ) 1 ( ) 1 ( ) 1 ( )

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
71

Table 83. Outpatient prescription drug benefits: Summary of

coverage, full-time employees, medium and large private

establishments, 1997

Selected

features

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales 

employees

Bluecollar

 and 

service

employees

Number of employees (in

thousands) with outpatient

prescription drug coverage 28,029 8,110 6,992 12,927

Percent

Total with outpatient

prescription drug

coverage ....................... 100 100 100 100

Coverage for brand name drugs 100 100 100 100

Higher reimbursement for

generic drugs ...................... 48 48 51 47

Coverage for mail order drugs1 43 43 39 44

Higher reimbursement for

prescriptions filled at

selected pharmacies ........... 27 29 25 27

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

required on a continuous basis.

NOTE: Sum of individual items is greater than the total because some

participants were in plans with more than one type of coverage.

Table 84. Outpatient prescription drug benefits: Brand name

drug provisions in non-health maintenance organization plans,

full-time employees, medium and large private establishments,

1997

Type of coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number of employees (in

thousands) in non-HMO

plans with outpatient brand

name drug coverage ........... 18,451 4,765 4,413 9,273

Percent

Total in non-HMO plans

with outpatient brand

name drug coverage ..... 100 100 100 100

Covered in full ........................... 1 ( ) 1 ( ) 1 ( ) 1 ( )

Subject to the major medical

limits of plan ........................ 52 49 46 56

Subject to copayment per

prescription2 ....................... 46 47 50 44

Less than $5.00 .................... 3 2 1 5

$5.00 ..................................... 9 10 10 9

$10.00 ................................... 17 14 22 15

Greater than $10.00 ............. 8 11 9 6

Unspecified copayment ........ 1 1 1 2

Subject to a separate yearly

deductible ........................... 8 7 12 7

Subject to a separate

coinsurance rate ................. 10 13 11 9

Subject to a separate yearly

maximum ............................ 2 1 2 2

Difference in cost between

generic and brand name

drugs3 ................................. 8 7 7 8

Other ......................................... 2 1 2 2

1 Less than 0.5 percent. 2 Includes copayment amounts between $5 and $10 not presented

separately. 3 These are plans where the individual participant is required to use a

generic equivalent when available; if a generic equivalent is not chosen, the

individual must pay the difference in total cost between the brand name and

generic drug plus the cost to the individual. For example, if an individual is

subject to a $5 copayment for generic drugs and the brand name equivalent

is purchased, the individual must pay the difference in total cost between the

brand name and generic drug, plus the $5 copayment.

NOTE: Sum of individual items is greater than the total because some

participants were in plans with more than one type of coverage.
72

Table 85. Outpatient prescription drug benefits: Brand name

drug provisions in health maintenance organization plans,

full-time employees, medium and large private establishments,

1997

Type of coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number of employees (in

thousands) in HMO plans

with outpatient brand name

drug coverage ..................... 9,162 3,179 2,415 3,569

Percent

Total in HMO plans with

outpatient brand name

drug coverage ............... 100 100 100 100

Covered in full ........................... 1 2 1 1

Subject to copayment per

prescription1 ....................... 85 87 87 83

Less than $5.00 .................... 5 4 4 6

$5.00 ..................................... 31 31 30 32

$7.00 ..................................... 6 8 6 5

$10.00 ................................... 28 28 30 25

Greater than $10.00 ............. 7 5 9 7

Unspecified copayment ........ 1 2 1 2

Subject to a separate yearly

deductible ........................... 3 3 3 3

Subject to a separate yearly

maximum ............................ 3 4 2 3

Difference in cost between

generic and brand name

drugs2 ................................. 9 7 8 11

Other ......................................... 5 6 5 4

Not determinable ...................... 1 3 ( ) 3 () 1

1 Includes copayment amounts that are not presented separately. 2 These are plans where the individual participant is required to use a

generic equivalent when available; if a generic equivalent is not chosen, the

individual must pay the difference in total cost between the brand name and

generic drug plus the cost to the individual. For example, if an individual is

subject to a $5 copayment for generic drugs and the brand name equivalent

is purchased, the individual must pay the difference in total cost between the

brand name and generic drug, plus the $5 copayment. 3 Less than 0.5 percent.

NOTE: Sum of individual items is greater than the total because some

participants were in plans with more than one type of coverage. 

Table 86. Mental health care benefits: Comparison of

coverage for hospital room and board and outpatient care with

other illnesses, full-time employees, medium and large private

establishments, 1997

Relationship to

coverage for

other illnesses

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

Hospital room and board

Total covered ...................... 100 100 100 100

Covered the same .................... 12 13 10 13

Covered differently ................... 88 87 90 87

Outpatient care1

Total covered ...................... 100 100 100 100

Covered the same .................... 2 3 3 2

Covered differently ................... 98 97 97 98

1 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.
73

Table 87. Mental health care benefits: Separate limits on

coverage, full-time employees, medium and large private

establishments, 1997

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

mental health care benefits 28,236 8,249 6,835 13,152

Number (in thousands) with

outpatient mental health

care benefits ....................... 27,796 8,171 6,828 12,797

Percent

Hospital room 

and board

Total with mental health care

benefits ........................... 100 100 100 100

No separate limits1 ........... 14 14 12 15

Subject to separate limits2 86 86 88 85

Days ............................. 61 62 65 58

Dollars .......................... 41 39 39 44

Coinsurance ................. 13 13 15 12

Copayment ................... 7 7 9 6

Other ............................. 1 2 1 1

Outpatient care3

Total with mental health care

benefits ........................... 100 100 100 100

No separate limits1 ........... 4 4 4 3

Subject to separate limits2 96 96 96 97

Days ............................. 53 59 53 50

Dollars .......................... 55 50 57 56

Coinsurance ................. 36 31 37 38

Copayment ................... 30 35 30 28

Other ............................. 2 2 1 1

1 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 2 Separate limitations indicate that mental health care benefits are more

restrictive than benefits for other treatments. For example, if a plan limits

inpatient mental health care to 30 days per year, that plan contains separate

limits. The total is less than the sum of the individual items because many

plans had more than one type of limitation. 3 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, doctor’s office care was tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. 

Table 88. Mental health care benefits: Separate limits on

coverage in health maintenance organizations, full-time

employees, medium and large private establishments, 1997

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

mental health care benefits 9,238 3,243 2,396 3,599

Number (in thousands) with

outpatient mental health

care benefits ....................... 9,569 3,310 2,513 3,746

Percent

Hospital room

and board

Total with mental health care

benefits ........................... 100 100 100 100

No separate limits1 ........... 10 10 11 8

Subject to separate limits2 90 90 89 92

Days ............................. 84 82 83 88

Dollars .......................... 12 16 11 10

Coinsurance ................. 10 10 10 9

Copayment ................... 16 14 17 17

Other ............................. 3 ( ) 3 ( ) 3 ( ) 3 ( )

Outpatient care4

Total with mental health care

benefits ........................... 100 100 100 100

No separate limits1 ........... 3 3 5 2

Subject to separate limits2 97 97 95 98

Days ............................. 83 83 83 82

Dollars .......................... 19 19 19 18

Coinsurance ................. 13 15 11 13

Copayment ................... 61 64 57 62

Other ............................. 1 1 1 3 ( )

1 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 2 Separate limitations indicate that mental health care benefits are more

restrictive than benefits for other treatments. For example, if a plan limits

inpatient mental health care to 30 days per year, that plan contains separate

limits. The total is less than the sum of the individual items because many

plans had more than one type of limitation. 3 Less than 0.5 percent. 4 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, doctor’s office care was tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. 
74

Table 89. Mental health care benefits: Separate limits on

coverage in non-health maintenance organizations, full-time

employees, medium and large private establishments, 1997

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

mental health care benefits 18,998 5,006 4,439 9,553

Number (in thousands) with

outpatient mental health

care benefits ....................... 18,227 4,860 4,315 9,051

Percent

Hospital room

and board1

Total with mental health care

benefits ........................... 100 100 100 100

No separate limits2 ........... 16 17 12 18

Subject to separate limits3 84 83 88 82

Days ............................. 50 49 56 47

Dollars .......................... 55 53 55 56

Coinsurance ................. 15 15 18 13

Copayment ................... 3 3 5 2

Other ............................. 2 3 2 1

Outpatient care4

Total with mental health care

benefits ........................... 100 100 100 100

No separate limits2 ........... 4 4 3 4

Subject to separate limits3 96 96 97 96

Days ............................. 38 42 35 37

Dollars .......................... 74 72 78 72

Coinsurance ................. 47 42 52 48

Copayment ................... 14 15 15 13

Other ............................. 2 3 2 1

1 Excludes doctor’s charges in the hospital. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that mental health care benefits are more

restrictive than benefits for other treatments. For example, if a plan limits

inpatient mental health care to 30 days per year, that plan contains separate

limits. The total is less than the sum of the individual items because many

plans had more than one type of limitation. 4 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, doctor’s office care was tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit.

Table 90. Alcohol and drug abuse: Relationship between

provisions, full-time employees, medium and large private

establishments, 1997

Relationship of

coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

medical care ....................... 29,340 8,455 7,180 13,705

Percent

Total .......................................... 100 100 100 100

Covered together1 ................ 78 80 78 76

Covered separately but with

the same limits2 .............. 1 1 1 2

Other3 ................................... 19 17 19 19

Not determinable .................. 2 2 2 3

1 These are plans where all limits that apply to alcohol abuse treatment

also apply to drug abuse treatment. When care is received for one of these

types of treatment, it reduces the availability of care from the other. For

example, if alcohol and drug abuse are limited to 30 days per year and 20

days are used for alcohol abuse, then there are 10 days left for drug abuse. 2 These are plans where alcohol and drug abuse are subject to separate

and identical limits. For example, alcohol abuse treatment is limited to 30

days per year and drug abuse treatment is limited to a separate 30 days per

year. 3 Includes plans where alcoholism coverage differs from drug coverage;

and where some limits for alcohol and drug abuse treatment are separate

and identical and different limits reduce the availability of care from the other;

and where there is no coverage for alcohol and drug abuse treatment.

NOTE: Because of rounding, sums of individual items may not equal totals.
75

Table 91. Substance abuse treatment benefits: Relationship

to coverage for other illnesses, full-time employees, medium

and large private establishments, 1997

Relationship to

coverage for

other illnesses

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

Alcohol abuse

Total with inpatient

detoxification1 ................. 100 100 100 100

Covered the same .................... 25 26 25 24

Covered differently ................... 75 74 75 76

Total with inpatient

rehabilitation2 ................ 100 100 100 100

Covered the same .................... 7 7 6 6

Covered differently ................... 93 93 94 94

Total with outpatient

rehabilitation3 ................ 100 100 100 100

Covered the same .................... 6 7 6 6

Covered differently ................... 94 93 94 94

Drug abuse

Total with inpatient

detoxification1 ................. 100 100 100 100

Covered the same .................... 24 25 24 23

Covered differently ................... 76 75 76 77

Total with inpatient

rehabilitation2 ................ 100 100 100 100

Covered the same .................... 7 7 6 6

Covered differently ................... 93 93 94 94

Total with outpatient

rehabilitation3 ................ 100 100 100 100

Covered the same .................... 6 7 6 5

Covered differently ................... 94 93 94 95

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 3 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.
76

Table 92. Alcohol abuse treatment benefits: Separate limits

on coverage, full-time employees, medium and large private

establishments, 1997

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

inpatient detoxification

benefits ............................... 28,689 8,381 7,002 13,305

Number (in thousands) with

inpatient rehabilitation

benefits ............................... 23,538 6,785 5,789 10,965

Number (in thousands) with

outpatient rehabilitation

benefits ............................... 24,592 7,190 6,017 11,385

Percent

Inpatient detoxification1

Total with inpatient

detoxification benefits ..... 100 100 100 100

No separate limits2 ........... 26 27 27 25

Subject to separate limits3 74 73 73 75

Days ............................. 53 51 54 54

Dollars .......................... 37 36 34 38

Coinsurance ................. 12 12 14 11

Copayment ................... 4 6 4 4

Other ............................. 2 3 1 1

Inpatient rehabilitation4

Total with inpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 7 7 7 7

Subject to separate limits3 93 93 93 93

Days ............................. 69 68 71 68

Dollars .......................... 45 44 42 46

Coinsurance ................. 15 15 18 13

Copayment ................... 6 8 7 5

Other ............................. 2 4 2 2

See footnotes at end of table.

Table 92. Alcohol abuse treatment benefits: Separate limits

on coverage, full-time employees, medium and large private

establishments, 1997 — Continued

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Outpatient rehabilitation5

Total with outpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 7 7 7 6

Subject to separate limits3 93 93 93 94

Days ............................. 49 52 51 47

Dollars .......................... 51 48 55 51

Coinsurance ................. 26 24 31 25

Copayment ................... 23 25 23 21

Other ............................. 2 3 2 1

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that alcohol abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year,

the plan contains separate limits. The total is less than the sum of the

individual items because many plans had more than one type of limitation. 4 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 5 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. 
77

Table 93. Drug abuse treatment benefits: Separate limits on

coverage, full-time employees, medium and large private

establishments, 1997

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

inpatient detoxification

benefits ............................... 28,314 8,233 6,932 13,149

Number (in thousands) with

inpatient rehabilitation

benefits ............................... 23,459 6,762 5,805 10,892

Number (in thousands) with

outpatient rehabilitation

benefits ............................... 24,476 7,173 6,028 11,274

Percent

Inpatient detoxification1

Total with inpatient

detoxification benefits ..... 100 100 100 100

No separate limits2 ........... 26 26 27 24

Subject to separate limits3 74 74 73 76

Days ............................. 53 51 54 54

Dollars .......................... 37 37 35 39

Coinsurance ................. 12 12 14 11

Copayment ................... 5 6 4 4

Other ............................. 2 3 1 1

Inpatient rehabilitation4

Total with inpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 7 7 8 7

Subject to separate limits3 93 93 92 93

Days ............................. 68 68 71 68

Dollars .......................... 45 45 42 46

Coinsurance ................. 15 15 18 13

Copayment ................... 6 8 7 5

Other ............................. 2 4 2 2

See footnotes at end of table.

Table 93. Drug abuse treatment benefits: Separate limits on

coverage, full-time employees, medium and large private

establishments, 1997 — Continued

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Outpatient rehabilitation5

Total with outpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 7 7 7 6

Subject to separate limits3 93 93 93 94

Days ............................. 50 53 52 46

Dollars .......................... 51 48 55 51

Coinsurance ................. 26 24 31 25

Copayment ................... 23 25 23 21

Other ............................. 2 3 2 1

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that drug abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year,

the plan contains separate limits. The total is less than the sum of the

individual items because many plans had more than one type of limitation. 4 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 5 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. 
78

Table 94. Alcohol abuse treatment benefits: Separate limits

on coverage in health maintenance organizations, full-time

employees, medium and large private establishments, 1997

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

inpatient detoxification

benefits ............................... 9,595 3,330 2,543 3,722

Number (in thousands) with

inpatient rehabilitation

benefits ............................... 6,969 2,442 1,842 2,685

Number (in thousands) with

outpatient rehabilitation

benefits ............................... 7,942 2,809 2,049 3,083

Percent

Inpatient detoxification1

Total with inpatient

detoxification benefits ..... 100 100 100 100

No separate limits2 ........... 42 40 47 40

Subject to separate limits3 58 60 53 60

Days ............................. 50 51 47 51

Dollars .......................... 14 17 13 12

Coinsurance ................. 9 9 10 9

Copayment ................... 10 9 7 12

Other ............................. 1 2 1 4 ( )

Inpatient rehabilitation5

Total with inpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 12 11 15 12

Subject to separate limits3 88 89 85 88

Days ............................. 79 77 78 81

Dollars .......................... 20 24 18 16

Coinsurance ................. 13 13 14 13

Copayment ................... 14 13 11 17

Other ............................. 2 3 2 1

See footnotes at end of table.

Table 94. Alcohol abuse treatment benefits: Separate limits

on coverage in health maintenance organizations, full-time

employees, medium and large private establishments, 1997 —

Continued

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Outpatient rehabilitation6

Total with outpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 12 12 14 10

Subject to separate limits3 88 88 86 90

Days ............................. 70 67 72 71

Dollars .......................... 21 22 23 20

Coinsurance ................. 9 10 8 9

Copayment ................... 42 42 38 45

Other ............................. 1 2 1 1

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that alcohol abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year,

the plan contains separate limits. The total is less than the sum of the

individual items because many plans had more than one type of limitation. 4 Less than 0.5 percent. 5 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 6 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. 
79

Table 95. Drug abuse treatment benefits: Separate limits on

coverage in health maintenance organizations, full-time

employees, medium and large private establishments, 1997

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

inpatient detoxification

benefits ............................... 9,492 3,292 2,509 3,691

Number (in thousands) with

inpatient rehabilitation

benefits ............................... 6,933 2,452 1,841 2,640

Number (in thousands) with

outpatient rehabilitation

benefits ............................... 7,881 2,805 2,044 3,032

Percent

Inpatient detoxification1

Total with inpatient

detoxification benefits ..... 100 100 100 100

No separate limits2 ........... 42 40 47 40

Subject to separate limits3 58 60 53 60

Days ............................. 50 51 47 51

Dollars .......................... 14 17 14 12

Coinsurance ................. 9 9 10 10

Copayment ................... 10 9 7 12

Other ............................. 1 2 1 4 ( )

Inpatient rehabilitation5

Total with inpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 12 11 15 12

Subject to separate limits3 88 89 85 88

Days ............................. 78 77 78 79

Dollars .......................... 20 24 18 17

Coinsurance ................. 13 13 14 13

Copayment ................... 14 13 11 16

Other ............................. 2 3 2 1

See footnotes at end of table.

Table 95. Drug abuse treatment benefits: Separate limits on

coverage in health maintenance organizations, full-time

employees, medium and large private establishments, 1997 —

Continued

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Outpatient rehabilitation6

Total with outpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 12 12 14 10

Subject to separate limits3 88 88 86 90

Days ............................. 70 67 73 71

Dollars .......................... 21 22 23 20

Coinsurance ................. 9 11 8 9

Copayment ................... 42 42 38 45

Other ............................. 1 2 1 1

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that drug abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year,

the plan contains separate limits. The total is less than the sum of the

individual items because many plans had more than one type of limitation. 4 Less than 0.5 percent. 5 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 6 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. 
80

Table 96. Alcohol abuse treatment benefits: Separate limits

on coverage in non-health maintenance organizations,

full-time employees, medium and large private establishments,

1997

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Blue--

collar

and

service

employees

Number (in thousands) with

inpatient detoxification

benefits ............................... 19,093 5,051 4,459 9,583

Number (in thousands) with

inpatient rehabilitation

benefits ............................... 16,570 4,343 3,947 8,280

Number (in thousands) with

outpatient rehabilitation

benefits ............................... 16,650 4,381 3,968 8,302

Percent

Inpatient detoxification1

Total with inpatient

detoxification benefits ..... 100 100 100 100

No separate limits2 ........... 18 19 15 19

Subject to separate limits3 82 81 85 81

Days ............................. 54 51 59 55

Dollars .......................... 48 49 46 49

Coinsurance ................. 13 13 17 11

Copayment ................... 2 3 3 1

Other ............................. 2 4 2 2

Inpatient rehabilitation4

Total with inpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 5 5 4 6

Subject to separate limits3 95 95 96 94

Days ............................. 64 62 68 64

Dollars .......................... 55 56 53 56

Coinsurance ................. 15 17 19 13

Copayment ................... 3 5 5 2

Other ............................. 2 4 2 2

See footnotes at end of table.

Table 96. Alcohol abuse treatment benefits: Separate limits

on coverage in non-health maintenance organizations,

full-time employees, medium and large private establishments,

1997 — Continued

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Blue--

collar

and

service

employees

Outpatient rehabilitation5

Total with outpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 4 4 4 5

Subject to separate limits3 96 96 96 95

Days ............................. 40 43 41 38

Dollars .......................... 65 65 71 63

Coinsurance ................. 34 32 43 31

Copayment ................... 13 15 15 12

Other ............................. 2 3 2 2

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that alcohol abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year,

the plan contains separate limits. The total is less than the sum of the

individual items because many plans had more than one type of limitation. 4 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 5 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. 
81

Table 97. Drug abuse treatment benefits: Separate limits on

coverage in non-health maintenance organizations, full-time

employees, medium and large private establishments, 1997

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

inpatient detoxification

benefits ............................... 18,822 4,941 4,423 9,458

Number (in thousands) with

inpatient rehabilitation

benefits ............................... 16,526 4,310 3,964 8,252

Number (in thousands) with

outpatient rehabilitation

benefits ............................... 16,595 4,369 3,984 8,242

Percent

Inpatient detoxification1

Total with inpatient

detoxification benefits ..... 100 100 100 100

No separate limits2 ........... 17 17 15 18

Subject to separate limits3 83 83 85 82

Days ............................. 55 51 59 55

Dollars .......................... 49 50 48 49

Coinsurance ................. 13 14 17 11

Copayment ................... 2 3 3 1

Other ............................. 2 4 2 2

Inpatient rehabilitation4

Total with inpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 5 6 4 6

Subject to separate limits3 95 94 96 94

Days ............................. 64 62 68 64

Dollars .......................... 55 56 53 56

Coinsurance ................. 16 17 19 13

Copayment ................... 3 5 5 2

Other ............................. 2 4 2 2

See footnotes at end of table.

Table 97. Drug abuse treatment benefits: Separate limits on

coverage in non-health maintenance organizations, full-time

employees, medium and large private establishments, 1997 —

Continued

Coverage limitation

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Outpatient rehabilitation5

Total with outpatient

rehabilitation benefits ...... 100 100 100 100

No separate limits2 ........... 4 4 3 5

Subject to separate limits3 96 96 97 95

Days ............................. 40 43 41 37

Dollars .......................... 66 65 71 63

Coinsurance ................. 34 33 43 31

Copayment ................... 13 14 15 12

Other ............................. 2 3 2 2

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that drug abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year,

the plan contains separate limits. The total is less than the sum of the

individual items because many plans had more than one type of limitation. 4 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 5 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. 
82

Table 98. Mental health care and substance abuse treatment

benefits: Application to out-of-pocket expense provisions1 in

non-health maintenance organizations, full-time employees,

medium and large private establishments, 1997

Type of coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

Inpatient mental health care

Total .......................................... 100 100 100 100

Applied to out-of-pocket

limits ............................... 62 63 57 64

Not applied to out-of-pocket

limits ............................... 38 37 43 36

Outpatient mental health care

Total .......................................... 100 100 100 100

Applied to out-of-pocket

limits ............................... 37 40 32 38

Not applied to out-of-pocket

limits ............................... 63 60 68 62

Inpatient alcohol

detoxification

Total .......................................... 100 100 100 100

Applied to out-of-pocket

limits ............................... 63 64 58 66

Not applied to out-of-pocket

limits ............................... 37 36 42 34

Inpatient alcohol

rehabilitation

Total .......................................... 100 100 100 100

Applied to out-of-pocket limit 57 58 52 60

Not applied to out-of-pocket

limits ............................... 43 42 48 40

Outpatient alcohol

rehabilitation 

Total .......................................... 100 100 100 100

Applied to out-of-pocket

limits ............................... 45 45 38 49

Not applied to out-of-pocket

limits ............................... 55 55 62 51

See footnotes at end of table.

Table 98. Mental health care and substance abuse treatment

benefits: Application to out-of-pocket expense provisions1 in

non-health maintenance organizations, full-time employees,

medium and large private establishments, 1997 — Continued

Type of coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

Inpatient drug detoxification

Total .......................................... 100 100 100 100

Applied to out-of-pocket

limits ............................... 63 63 57 65

Not applied to out-of-pocket

limits ............................... 37 37 43 35

Inpatient drug rehabilitation 

Total .......................................... 100 100 100 100

Applied to out-of-pocket

limits ............................... 57 57 52 60

Not applied to out-of-pocket

limits ............................... 43 43 48 40

Outpatient drug rehabilitation

Total .......................................... 100 100 100 100

Applied to out-of-pocket

limits ............................... 45 44 37 48

Not applied to out-of-pocket

limits ............................... 55 56 63 52

1 Each total relates to a plan’s overall out-of-pocket limits. In addition,

the specified inpatient benefit and hospital room and board must be subject

to the plan’s overall limits while the specified outpatient benefit and office

physician’s care must be subject to the plan’s overall benefits. For example,

the total for inpatient mental health care includes the following: there is a plan

out-of-pocket limit, and both inpatient mental health care and hospital room

and board are subject to the plan’s overall limits.
83

Table 99. Medical care plans: Eligibility requirements,

full-time employees, medium and large private establishments,

1997

Eligibility requirement

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

medical care ....................... 29,340 8,455 7,180 13,705

Percent

Total .......................................... 100 100 100 100

With a service requirement ... 67 55 65 76

1 month ............................. 22 26 21 20

2 months ........................... 7 4 5 10

3 months ........................... 26 19 30 29

4 -5 months ....................... 1 1 () 1 2

6 months ........................... 6 4 6 6

7 - 11 months .................... 4 1 () 1 7

12 months ......................... 1 1 2 1

Greater than 12 months .... 1 () - - 1 ( )

Without a service

requirement .................... 30 44 32 22

Not determinable .................. 2 2 3 2

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.

Table 100. Non-health maintenance organizations: 

Pre-existing condition provisions,1 full-time employees,

medium and large private establishments, 1997

Pre-existing

provisions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) in

non-HMO plans .................. 19,658 5,102 4,624 9,931

Percent

Total with non-HMO plans ........ 100 100 100 100

Pre-existing condition clause 55 52 58 54

No pre-existing condition

clause ............................. 42 45 39 41

Not determinable .................. 4 4 3 5

1 A pre-existing condition is any ailment present at the time the

participant enrolls in the plan. Plans will typically deny or limit coverage of

such conditions for a specific time period following enrollment.

NOTE: Because of rounding, sums of individual items may not equal totals. 
84

Table 101. Retiree medical care benefits: Source of plan funding,1

full-time employees, medium and large private establishments, 1997

Provision

All

employees

Professional,

technical, and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

medical care ....................... 29,340 8,455 7,180 13,705

Percent

Total with medical care ............. 100 100 100 100

Under age 65

Retiree coverage provided ... 42 46 42 40

Employer paid ................... 10 10 7 12

Employee paid .................. 7 10 7 6

Jointly paid ........................ 22 22 27 20

Payment unknown ............ 3413

No retiree coverage .............. 49 47 50 51

Not determinable .................. 8 7 8 10

Over age 65

Retiree coverage provided ... 38 40 38 37

Employer paid ................... 11 10 8 12

Employee paid .................. 5654

Jointly paid ........................ 20 20 24 17

Payment unknown ............ 3413

No retiree coverage .............. 54 53 54 54

Not determinable .................. 8 7 8 10

1 Plans providing services or

payments for services rendered in the

hospital or by a physician. Excludes

plans that provided only dental, vision, or

prescription drug coverage.

NOTE: Because of rounding, sums of

individual items may not equal totals.

Table 102. Dental care benefits: Eligibility requirements,

full-time employees, medium and large private establishments,

1997

Eligibility requirement

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

dental care .......................... 22,588 6,776 5,438 10,374

Percent

Total with dental care ............... 100 100 100 100

With a service requirement ... 68 60 65 74

1 month ............................. 21 24 19 19

2 months ........................... 7 5 5 10

3 months ........................... 23 19 26 23

4 -5 months ....................... 1 1 1 () 2

6 months ........................... 7 6 8 6

7 - 11 months .................... 5 1 2 10

12 months ......................... 4 5 4 4

Greater than 12 months .... 1 () - 1 ( ) 1 ( )

Without a service

requirement .................... 30 39 33 23

Not determinable .................. 2 1 2 2

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
85

Table 103. Dental care benefits: Fee arrangement and

financial intermediary, full-time employees, medium and large

private establishments, 1997

Fee arrangement

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

dental care .......................... 22,588 6,776 5,438 10,374

Percent

Total with dental care ............... 100 100 100 100

Traditional fee-for-service1 ... 81 81 77 83

Self insured2 ..................... 47 44 45 51

Commercial insurance

company ..................... 13 15 15 12

Blue Cross/Blue Shield ..... 4 5 3 4

Independent organization3 2212

Dental society4 ................. 14 14 14 14

Preferred provider

organization5 .................. 11 10 12 10

Self insured2 ..................... 5 4 7 4

Commercial insurance

company ..................... 2 3 2 2

Blue Cross/Blue Shield ..... 1 1 6 () 1

Independent organization3 1112

Dental society4 ................. 1 2 1 1

See footnotes at end of table.

Table 103. Dental care benefits: Fee arrangement and

financial intermediary, full-time employees, medium and large

private establishments, 1997 — Continued

Fee arrangement

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

Total with dental care

Health maintenance

organization7 .................. 8 8 11 7

Commercial insurance

company ..................... 3 3 6 3

Blue Cross/Blue Shield ..... 6 ( ) 6 ( ) 6 ( ) 6 ( )

Independent organization3 3333

Dental society4 ................. 1 2 1 1

Other8 ................................... 6 () 1 6 ( ) 6 ( )

Fee arrangement unknown ... 6 ( ) 6 ( ) 6 () 1

1 These plans pay for specific dental procedures as expenses are

incurred. 2 Includes plans that are financed on a pay-as-you-go basis, plans

financed through contributions to a trust fund established to pay benefits, and

plans operating their own facilities if at least partially financed by employer

contributions. Includes plans that are administered by a commercial carrier

through Administrative Services Only (ASO) contracts. 3 These organizations typically provide and finance all benefits, but are

not affiliated with an insurance company or Blue Cross/Blue Shield. 4 Organizations of providers other than Blue Cross/Blue Shield. 5 A preferred provider organization (PPO) is a group of hospitals and

dentists that contracts to provide comprehensive dental services. To

encourage use of organization members, the dental care plan limits

reimbursement rates when participants use nonmember services. 6 Less than 0.5 percent. 7 Delivers comprehensive dental care on a prepayment rather than

fee-for-service basis. 8 Includes exclusive provider organizations, which are groups of hospitals

and dentists that contract to provide comprehensive dental services. 

Participants are required to obtain services from members of the organization

in order to receive plan benefits.

NOTE: Because of rounding, sums of individual items may not equal totals.
86

Table 104. Dental care benefits: Coverage for selected procedures, full-time employees, medium and large private

establishments, 1997

Extent of coverage

Type of dental procedure

Exams X-rays Surgery1 Fillings Periodontal care

Endodontics Crowns ProstheticsOrthodontia2

Number (in thousands) with

dental care .............................. 22,588 22,588 22,588 22,588 22,588 22,588 22,588 22,588 22,588

Professional, technical, and

related employees .......... 6,776 6,776 6,776 6,776 6,776 6,776 6,776 6,776 6,776

Clerical and sales employees 5,438 5,438 5,438 5,438 5,438 5,438 5,438 5,438 5,438

Blue-collar and service

employees ...................... 10,374 10,374 10,374 10,374 10,374 10,374 10,374 10,374 10,374

Percent

All employees

Total ................................ 100 100 100 100 100 100 100 100 100

Covered3 .............................. 100 100 99 100 99 99 98 98 75

In full4 ............................... 14 14 4744221

Scheduled cash allowance 668888896

Subject to copayment5 ..... 225355557

Percent of usual,

customary and

reasonable charge ...... 77 77 82 81 81 81 82 82 64

Other6 ............................... 222222221

Not covered .......................... – – 1 7 ( ) 1 1 2 2 23

Not determinable .................. 7 ( ) 7 ( ) 7 ( ) 7 ( ) 7 ( ) 7 () 1 1 2

Professional, technical, and

related

Total ................................ 100 100 100 100 100 100 100 100 100

Covered3 .............................. 100 100 99 100 99 99 98 98 77

In full4 ............................... 13 13 475422 7 ( )

Scheduled cash allowance 558888885

Subject to copayment5 ..... 114244448

Percent of usual,

customary and

reasonable charge ...... 80 80 83 82 82 83 84 84 67

Other6 ............................... 222222111

Not covered .......................... – – 1 7 ( ) 1 1 2 2 21

Not determinable .................. 7 ( ) 7 ( ) 7 ( ) 7 ( ) 7 ( ) 7 ( ) 7 ( ) 7 () 2

See footnotes at end of table.
87

Table 104. Dental care benefits: Coverage for selected procedures, full-time employees, medium and large private

establishments, 1997 — Continued

Extent of coverage

Type of dental procedure

Exams X-rays Surgery1 Fillings Periodontal care

Endodontics Crowns ProstheticsOrthodontia2

Percent

Clerical and sales

Total ................................ 100 100 100 100 100 100 100 100 100

Covered3 .............................. 100 100 99 100 99 100 98 98 76

In full4 ............................... 15 15 3744221

Scheduled cash allowance 558988997

Subject to copayment5 ..... 568577889

Percent of usual,

customary and

reasonable charge ...... 74 74 79 78 78 80 79 79 62

Other6 ............................... 222233211

Not covered .......................... – – 1 7 () 1 7 ( ) 2 2 21

Not determinable .................. 7 ( ) 7 ( ) 7 ( ) 7 ( ) 7 ( ) 7 ( ) 7 ( ) 7 () 2

Blue-collar and service

Total ................................ 100 100 100 100 100 100 100 100 100

Covered3 .............................. 99 99 99 99 99 98 98 98 73

In full4 ............................... 14 14 4744221

Scheduled cash allowance 778888896

Subject to copayment5 ..... 115255554

Percent of usual,

customary and

reasonable charge ...... 77 77 82 82 82 82 83 83 63

Other6 ............................... 11212222 7 ( )

Not covered .......................... – – 1 7 ( ) 1 1 1 1 26

Not determinable .................. 111111112

1 Excludes plans that limited coverage to accidental injuries, removal

of impacted wisdom teeth, or repair of jaw. 2 Participants were included as having coverage for orthodontia in

cases where benefits were limited to children. 3 Sum of individual items is greater than total because some

participants were in plans with more than one limit. 4 Includes plans that paid the full cost with no deductible or maximum

dollar amount. 5 Participant pays a specific amount per procedure and plan pays all

remaining expenses. In the case of orthodontia, the copayment is

generally applied once per lifetime. 6 Includes plans that provide care based on an incentive schedule or

discounted benefit. An incentive schedule is a reimbursement

arrangement in which the percentage of dental expenses paid by the plan

increases if regular dental appointments are scheduled. Discounted

benefits are available if obtained from an approved provider. 7 Less than 0.5 percent.

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

Because of rounding, sums of individual items may not equal totals.
88

Table 105. Dental care benefits: Percent of charges paid by plan for selected procedures, full-time employees, medium and

large private establishments, 1997

Percent of usual, customary,

and reasonable charge

Type of dental procedure

Exams X-rays Surgery1 Fillings Periodontal care

Endodontics Crowns ProstheticsOrthodontia

Number of employees (in

thousands) in dental plans

with coverage based on a

percentage of charges ............ 17,405 17,417 18,441 18,278 18,290 18,403 18,582 18,579 14,415

Professional, technical, and

related employees .......... 5,432 5,438 5,651 5,545 5,542 5,609 5,683 5,693 4,534

Clerical and sales employees 3,978 3,980 4,297 4,243 4,255 4,319 4,307 4,308 3,387

Blue-collar and service

employees ...................... 7,994 7,999 8,492 8,491 8,494 8,475 8,592 8,578 6,493

Percent

All employees

Total with dental care based

on a percentage of

charges2 ......................... 100 100 100 100 100 100 100 100 100

50 ...................................... 1 1 9 9 12 10 71 77 83

60 ...................................... 3 ( ) 3 ( ) 2 1 1 2 9 10 5

75 ...................................... 3 ( ) 3 () 5 5 5 5 2 2 2

80 ...................................... 17 18 63 64 64 65 10 8 5

90 ...................................... 3699994 3 ( ) 3 ( )

1004 .................................. 78 74 7845114

Professional, technical, and

related

Total with dental care based

on a percentage of

charges2 ......................... 100 100 100 100 100 100 100 100 100

50 ...................................... 3 ( ) 1 6 6 10 7 73 77 81

60 ...................................... 1 1 2 1 1 2 9 10 7

75 ...................................... 3 ( ) 3 () 4 3 5 5 3 3 3

80 ...................................... 16 16 68 71 71 71 10 7 3

90 ...................................... 3575551 3 () -

1004 .................................. 80 77 7945115

Clerical and sales

Total with dental care based

on a percentage of

charges2 ......................... 100 100 100 100 100 100 100 100 100

50 ...................................... 1 1 6 5 8 7 71 73 81

60 ...................................... 3 ( ) 3 () 1 3 ( ) 2 3 10 10 4

75 ...................................... 116676331

80 ...................................... 16 17 69 69 68 70 12 11 8

90 ...................................... 5655551 3 ( ) 3 ( )

1004 .................................. 77 75 9964114

Blue-collar and service

Total with dental care based

on a percentage of

charges2 ......................... 100 100 100 100 100 100 100 100 100

50 ...................................... 1 1 12 12 15 12 70 79 85

See footnotes at end of table.
89

Table 105. Dental care benefits: Percent of charges paid by plan for selected procedures, full-time employees, medium and

large private establishments, 1997 — Continued

Percent of usual, customary,

and reasonable charge

Type of dental procedure

Exams X-rays Surgery1 Fillings Periodontal care

Endodontics Crowns ProstheticsOrthodontia

Percent

Blue-collar and service

60 ...................................... - - 1 1 1 1 9 10 3

75 ...................................... 3 ( ) 3 () 4 4 4 4 1 1 1

80 ...................................... 18 19 58 56 57 58 9 8 6

90 ...................................... 3 6 13 13 13 13 7 3 ( ) 3 ( )

1004 .................................. 77 71 6735114

1 Excludes plans that limited coverage to accidental injuries, removal

of impacted wisdom teeth, or repair of jaw. 2 Includes other percentages not presented separately. 3 Less than 0.5 percent. 4 Includes plans that paid 100 percent of charges, but imposed a

deductible and limited payment to a maximum dollar amount.

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

totals. Where applicable, dash indicates no employees in this category.
90

Table 106. Dental care benefits: Amount of individual

deductibles,1 full-time employees, medium and large private

establishments, 1997

Type of deductible

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

dental care .......................... 22,588 6,776 5,438 10,374

Percent

Total with dental care ......... 100 100 100 100

Subject to separate dental

deductible2 ...................... 59 60 62 54

Yearly deductible only .. 55 57 58 51

$25 ........................ 16 18 15 15

$50 ........................ 33 32 35 31

Other ..................... 6 6 7 6

Lifetime deductible only 1 1 2 1

Both yearly and lifetime

deductibles ............. 2 2 2 2

No deductible ........................ 40 39 37 44

Not determinable .................. 1 1 1 1

Average3

Average employee yearly

deductible ........................... $46 $45 $48 $46

1 Amount of deductible described is for each insured person. In some

plans, the individual and family deductibles are identical. Excludes separate

deductibles for orthodontic procedures. 2 A single deductible may not apply to all covered dental procedures. If

separate deductibles applied to different procedures, the sum of the

deductible amounts was tabulated. 3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.

Table 107. Dental care benefits: Relationship of yearly family

deductibles to yearly individual deductibles, full-time

employees, medium and large private establishments, 1997

Relationship

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

dental care .......................... 22,588 6,776 5,438 10,374

Percent

Total with dental care ......... 100 100 100 100

With individual and family

deductible ........................... 42 46 46 38

Family deductible is:

2 times individual

deductible ................... 16 17 15 15

3 times individual

deductible ................... 26 29 30 22

Other ................................. 1 1 () 1 1

No individual or family

deductible ........................... 58 54 54 62

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
91

Table 108. Dental care benefits: Services covered by

deductible1 provision, full-time employees, medium and large

establishments, 1997

Categories of care

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number of employees (in

thousands) with a dental

deductible ........................... 13,901 4,451 3,439 6,011

Percent

Total with a dental

deductible ..................... 100 100 100 100

All categories2 ...................... 17 16 17 19

All except exams and x-rays 46 49 44 45

All except exams, x-rays, and

orthodontia ...................... 25 24 29 21

All except orthodontia ........... 4 4 3 5

All except exams and

orthodontia ...................... 2 1 1 3

Other3 ................................... 6 6 6 7

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

lifetime deductible. 2 This applies to all categories of care covered by the plan. The

categories of dental care are exams, x-rays, surgery, fillings, periodontal

care, endodontics, crowns, prosthetics, and orthodontia. 3 Includes other category combinations.

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

Table 109. Dental care benefits: Maximum benefit provisions,1

full-time employees, medium and large private establishments,

1997

Dollar amount2

All

 employees

Professional,

technical,

 and

related

employees

Clerical

 and

sales

employees

Bluecollar

 and

service

 employees

Number (in thousands) with

dental care .......................... 22,588 6,776 5,438 10,374

Percent

Total with dental care ......... 100 100 100 100

Yearly maximum specified3 ...... 82 84 79 83

Less than $1,000 .................. 7 5 5 9

$1,000 ................................... 39 36 40 40

$1,001-$1,499 ...................... 11 10 7 14

$1,500 ................................... 17 22 18 13

Greater than $1500 .............. 8 12 8 6

No yearly maximum .................. 17 16 21 16

Maximum provision not

determinable ....................... 1 4 () 1 1

Average5

Average yearly maximum ......... $1,216 $1,282 $1,222 $1,170

1 Includes all covered dental procedures except orthodontia. Amount of

maximum specified is for each insured person. 2 Coverage for dental procedures may also be subject to scheduled

allowance, deductible, or coinsurance provisions in addition to maximum

dollar limitations. 3 If separate yearly maximums applied to different procedures, the sum

of the maximums was tabulated. Maximums applied to dental expenses only. 4 Less than 0.5 percent. 5 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.
92

Table 110. Orthodontic care benefits: Maximum benefit

provisions, full-time employees, medium and large private

establishments, 1997

Dollar amount1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

orthodontic care .................. 17,330 5,336 4,270 7,723

Percent

Total with orthodontic care 100 100 100 100

Lifetime maximum specified .... 81 81 76 83

Less than $1000 ................... 10 9 11 11

$1,000 ................................... 32 30 32 32

$1,001-$1,499 ...................... 11 8 7 15

$1,500 ................................... 21 27 19 17

Greater than $1,500 ............. 7 6 6 8

Dollar amount unspecified .... 2 () 1 1 2 ( )

No lifetime maximum ................ 17 17 21 14

Provision not determinable ....... 3 3 3 2

Average3

Average lifetime maximum ....... $1,206 $1,243 $1,198 $1,185

1 Coverage for orthodontia procedure may also be subject to scheduled

allowance, deductible, or coinsurance provisions in addition to maximum

dollar limitations. 2 Less than 0.5 percent. 3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.

Table 111. Dental care benefits: Pretreatment authorization

provisions, full-time employees, medium and large private

establishments, 1997

Preauthorization

provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

dental care .......................... 22,588 6,776 5,438 10,374

Percent

Total with dental care ......... 100 100 100 100

Preauthorization required ......... 49 51 47 50

Minimum expense requiring

preauthorization:

$100 .................................. 5 6 4 6

$101-$199 ........................ 8 8 9 7

$200 .................................. 12 12 11 11

Greater than $200 ............ 20 19 16 21

Dollar amount unspecified 5 6 6 4

Preauthorization not required ... 45 44 47 45

Provision not determinable ....... 6 6 6 6

Average1

Average minimum expense

requiring preauthorization ... $226 $220 $221 $231

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

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
93

Table 112. Vision care benefits: Coverage for selected services, full-time employees, medium and large private

establishments, 1997

Type of vision benefit Total Covered1 Covered

in full

Scheduled

allowance

Copayment Other2 Not

covered

Not

determinable

Percent

All employees

Eye exam .............................. 100 97 16 33 45 6 1 2

Contact lenses3 .................... 100 93 2 68 24 14 4 3

Eyeglasses ........................... 100 98 10 48 32 16 – 2

Professional, technical,

and related

Eye exam .............................. 100 97 20 24 49 6 1 2

Contact lenses3 .................... 100 92 2 67 20 16 4 4

Eyeglasses ........................... 100 99 14 43 32 19 – 1

Clerical and sales

Eye exam .............................. 100 97 14 35 43 11 2 2

Contact lenses3 .................... 100 94 3 63 22 19 3 3

Eyeglasses ........................... 100 99 8 52 27 21 – 1

Blue-collar and service

Eye exam .............................. 100 97 14 38 43 5 1 2

Contact lenses3 .................... 100 94 2 72 28 10 4 2

Eyeglasses ........................... 100 98 9 49 34 11 – 2

1 The total is less than the sum of individual items because

many participants are in plans with more than one type of

limitation. 2 Includes plans subject to coinsurance and retail discount. 3 Includes plans that provide coverage for elected contact

lenses; medically necessary contact lenses, i.e., cataract surgery,

is normally provided under the surgical portion of the medical plan

and is not described in this table.

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

equal totals. Where applicable, dash indicates no employees in

this category.
94

Chapter 5.

Life Insurance

Life insurance provides a benefit in the event of death

or dismemberment. Benefits are usually distributed

as a lump sum but can also be paid out in the form of

an annuity. Definitions of major plan types, key provisions,

and related terms follow.

Basic Life Insurance

A basic life plan provides the beneficiary a set sum of money

upon the death of a covered employee. Benefit amounts are

usually based either on a multiple of earnings formula or a

flat dollar formula.

Benefit formulas

Multiple of earnings benefit plans. These plans link the benefit amount to employees’ earnings, usually up to a stated

dollar amount. This link enables the level of protection to

increase automatically as income rises. Benefit formulas can

be a fixed multiple or a multiple that varies by earnings or

length-of-service.

Dollar amount benefit plans. These plans provide a fixed

life insurance benefit amount. Insurance amounts ranging

from $5,000 to $25,000 are common in such plans. Like

multiple of earnings benefit plans, dollar amount benefits can

be a flat amount or can vary by earnings or length-of-service.

Variations in benefit formulas

Fixed multiple of earnings formula. Under this formula, benefits are calculated by multiplying the employee’s annual earnings by a factor, such as one or two.

Multiple varies by earnings formula. Benefit calculations

under this formula use multiples that are based on employee

earnings. For example, employees earning up to $30,000 per

year might receive a benefit equal to 1 times annual earnings, whereas employees earning more than $30,000 per year

might receive a benefit equal to 2 times annual earnings.

Multiple varies by service formula. Under this formula,

benefits are calculated using multiples that are based on

employees’ length-of-service. Participants covered by these

plans often have a limit placed on the amount of coverage

available, for example $50,000.

Provisions and related terms

Accidental death and dismemberment insurance (AD&D).

Often referred to as double indemnity, this type of life insurance plan provides benefits to the employee or the employee’s

beneficiary in the event of accidental death or bodily dismemberment. The AD&D benefit commonly equals the basic life insurance benefit in the case of death and a portion of

the life benefit for dismemberment.

Survivor coverage. This plan provides a monthly income to

surviving members of a deceased employee’s family. These

benefits are in addition to other benefits, such as basic life

insurance and survivor pension benefits. Survivor income

payments are generally a percentage of the employee’s pay

or a flat dollar amount. Benefits usually continue for 24

months, although some continue until a specific event occurs, such as the surviving spouse remarries or reaches age

65, or surviving children reach a given age.

Retiree life insurance. When the employee has retired from

active work, basic life insurance may be continued, usually

in a lesser amount. Should the retiree die while still insured,

the plan pays the face amount to the employee’s named beneficiary.

Life insurance benefit reduction. Life insurance benefits may

be reduced for older active workers to offset the higher cost

of insurance extended to these workers. Such reductions generally begin near age 65. There may be one reduction at a

given age, or several reductions at different ages.

Supplemental life insurance. A supplemental plan is an

option that increases the basic life plan’s benefit amount. Employees may participate only if they are also enrolled in one

or more basic life insurance plans. Supplemental plans may

be partially or fully employee financed.

Dependent life insurance. This plan provides life insurance

coverage to the spouse or dependent children, or both,

of a covered employee. These policies may be fully

employee financed, fully employer financed, or jointly

financed.
95

Table 113. Life insurance: Summary of provisions, full-time

employees, medium and large private establishments, 1997

Item

All

employees

Professional,

technical,

and 

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

basic life insurance ................. 33,495 10,035 8,327 15,133

Percent

Total with basic life insurance ... 100 100 100 100

Multiple of earnings benefit ... 58 75 71 39

With AD&D ........................... 74 70 69 78

With survivor coverage ......... 6 5 3 7

Dollar amount benefit ........... 41 24 28 61

Benefits reduced for older

active workers ..................... 38 43 39 34

Retiree coverage available ... 33 36 35 30

Supplemental coverage

available ............................. 62 73 70 50

Dependent coverage

available ............................. 55 60 59 49

Required employee

contribution ......................... 13 15 12 12

Table 114. Life insurance: Method of determining basic

coverage, full-time employees, medium and large private

establishments, 1997

Type

All

employees

Professional,

technical,

and 

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

basic life insurance ................. 33,495 10,035 8,327 15,133

Percent

Total with basic life insurance ... 100 100 100 100

Multiple of earnings benefit 58 75 71 39

Fixed multiple of

earnings2 ...................... 57 74 71 38

Multiple varies by

earnings ........................ 1 ( ) 1 ( ) 1 ( ) 1 ( )

Multiple varies by service 1 ( ) 1 ( ) 1 ( ) 1 ( )

Dollar amount benefit ......... 41 24 28 61

Flat dollar amount ........... 36 21 24 52

Dollar amount varies by

earnings ........................ 5 3 3 7

Dollar amount varies by

service .......................... 1 1 ( ) 1 () 2

Other ................................... 1 1 1 1

Not determinable ................ 1 ( ) 1 () – 1 ( )

1 Less than 0.5 percent. 2 Includes participants in plans in which insurance equaled a multiple of

earnings, plus or minus a specified amount.

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

Where applicable, dash indicates no employees in this category.
96

Table 115. Life insurance: Dollar benefit amounts, full-time

employees, medium and large private establishments, 1997

Amount of insurance

All

employees

Professional,

technical, and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

dollar amount of basic life

insurance ................................ 13,868 2,392 2,304 9,172

Percent

Total with dollar amount of

basic life insurance ................. 100 100 100 100

Flat dollar amount ............. 86 89 87 85

Less than $5,000 .......... 3 1 2 3

$5,000 - $9,999 ............ 17 15 17 18

$10,000 - $14,999 ........ 28 33 33 25

$15,000 - $19,999 ........ 13 5 9 16

$20,000 - $24,999 ........ 10 5 10 11

$25,000 - $29,999 ........ 6 14 6 4

$30,000 - $49,999 ........ 5 4 5 5

$50,000 - $99,999 ........ 3 9 4 2

$100,000 and over ........ 1 5 1 1 ( )

Dollar amount varies by

earnings .......................... 12 11 11 12

Dollar amount varies by

service ............................ 2 1 () 2 3

Average2

Average flat dollar amount of

basic life insurance ................. $16,947 $23,625 $16,965 $15,122

1 Less than 0.5 percent. 2 The average is presented for all covered workers; averages exclude workers

without the plan provision.

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

Table 116. Life insurance: Multiple of earnings benefit

amounts, full-time employees, medium and large private

establishments, 1997

Formula

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

multiple of earnings basic life

insurance ................................ 19,303 7,493 5,945 5,865

Percent

Total with multiple of earnings

formula .................................... 100 100 100 100

Flat multiple-of-earnings1 99 99 100 98

Less than 1.0 ................ 5 7 4 5

1.0 ................................. 53 46 58 56

1.1 - 1.9 ........................ 11 11 9 12

2.0 ................................. 22 28 19 19

2.1 - 2.9 ........................ 4 4 5 2

3.0 ................................. 3 3 3 4

Greater than 3.0 ........... 1 1 1 1

Multiple varies by earnings 1 2 ( ) 2 () 1

Multiple varies by service 2 ( ) 2 ( ) 2 ( ) 2 ( )

Average3

Average flat multiple of

earnings formula ..................... 1.5 1.5 1.4 1.4

1 Includes participants in plans in which insurance equaled a multiple of

earnings, plus or minus a specified amount. 2 Less than 0.5 percent. 3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Because of rounding, sums of individual items may not equal totals.
97

Table 117. Life insurance: Maximum benefits placed on multiple of

earnings formulas, full-time employees, medium and large private

establishments, 1997

Maximum

All

employees

Professional,

technical, and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

multiple of earnings formula ... 19,303 7,493 5,945 5,865

Percent

Total with multiple of earnings

formula .................................... 100 100 100 100

With maximum benefit

amount ................................ 60 62 58 60

Less than $50,000 ............ 2114

$50,000 - $99,999 ............ 16 13 18 16

$100,000 ........................... 6468

$100,001 - $249,999 ........ 7867

$250,000 - $499,999 ........ 15 19 12 13

$500,000 ........................... 5565

$500,001 - $999,999 ........ 4552

$1,000,000 or more .......... 5745

No maximum specified ......... 36 35 39 36

Not determinable .................. 3334

Average1

Average maximum .................... $441,331 $588,252 $383,831 $304,275

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

without the plan provision.

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

Table 118. Life insurance: Minimum benefits placed on multiple of

earnings formulas, full-time employees, medium and large private

establishments, 1997

Minimum

All

employees

Professional,

technical, and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

multiple of earnings formula ... 19,303 7,493 5,945 5,865

Percent

Total with multiple of earnings

formula .................................... 100 100 100 100

With minimum benefit

amount ................................ 5 5 5 6

No minimum specified .......... 93 94 92 92

Not determinable .................. 2 1 3 2

NOTE: Because of rounding, sums of individual items may not equal totals.
98

Table 119. Life insurance: Retiree coverage, full-time

employees, medium and large private establishments, 1997

Coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

basic life insurance ................. 33,495 10,035 8,327 15,133

Percent

Total with basic life insurance ... 100 100 100 100

With retiree coverage ......... 33 36 35 30

No retiree coverage ............ 58 55 57 60

Not determinable ................ 9 9 8 10

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

Table 120. Life insurance: Reductions in benefits for retirees,

full-time employees, medium and large private establishments,

1997

Reduction policy

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

basic life insurance ................. 33,495 10,035 8,327 15,133

Percent

Total with basic life insurance ... 100 100 100 100

With retiree coverage ......... 33 36 35 30

No reductions ................. 5 6 5 4

With reductions ............... 25 29 27 22

Reduced once .............. 17 20 17 15

Reduced more than

once ............................ 8 9 10 7

Reduction not

determinable ................. 3 2 2 4

No retiree coverage ............ 58 55 57 60

Not determinable ................ 9 9 8 10

NOTE: Because of rounding, sums of individual items may not equal totals.
99

Table 121. Life insurance: Supplemental coverage, full-time

employees, medium and large private establishments, 1997

Coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

basic life insurance ................. 33,495 10,035 8,327 15,133

Percent

Total with basic life insurance ... 100 100 100 100

With supplemental coverage .... 62 73 70 50

Employee paid ...................... 51 56 57 44

Jointly paid ............................ 1 1 1 1

Flexible benefits .................... 10 16 12 5

No supplemental coverage ....... 34 24 27 45

Not determinable ...................... 4 3 3 5

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

Table 122. Life insurance: Dependent coverage, full-time

employees, medium and large private establishments, 1997

Coverage

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

basic life insurance ................. 33,495 10,035 8,327 15,133

Percent

Total with basic life insurance ... 100 100 100 100

With dependent coverage ......... 55 60 59 49

Employer paid ....................... 7 7 6 8

Employee paid ...................... 36 37 39 33

Jointly paid ............................ 2 1 2 2

Flexible benefits .................... 10 15 12 5

No dependent coverage ........... 40 36 37 45

Not determinable ...................... 5 5 4 6

NOTE: Because of rounding, sums of individual items may not equal totals.
100

Table 123. Life insurance: Eligibility requirement, full-time

employees, medium and large private establishments, 1997

Length-of-service requirement

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

basic life insurance ................. 33,495 10,035 8,327 15,133

Percent

Total with basic life insurance ... 100 100 100 100

With service requirement .......... 66 54 65 74

1 month ................................. 22 25 19 23

2 months ............................... 7 3 5 10

3 months ............................... 27 18 32 29

4 - 5 months .......................... 1 1 1 2

6 months ............................... 6 5 6 7

7 - 11 months ........................ 1 1 ( ) 1 () 1

12 months ............................. 2 2 1 2

Greater than 12 months ........ 1 ( ) 1 ( ) 1 ( ) 1 ( )

No service requirement ............ 32 44 33 23

Not determinable ...................... 2 2 2 3

Average2

Average service requirement (in

months) ................................... 2.9 2.7 2.9 2.9

1 Less than 0.5 percent. 2 The average is presented for all covered workers; averages exlude

workers without the plan provision.

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

Table 124. Life insurance: Basic life insurance employee

contributions, full-time employees, medium and large private

establishments, 1997

Type of contribution

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

basic life insurance ................. 33,495 10,035 8,327 15,133

Percent

Total with basic life insurance ... 100 100 100 100

With required employee

contribution ......................... 13 15 12 12

Dollar amount per month .. 1 1 1 2

Percent of earnings .......... 1 ( ) 1 ( ) 1 ( ) 1 ( )

Varies ............................... 1 1 1 1

Composition rate .............. 3 1 2 4

Flexible benefits ................ 6 11 6 2

Other ................................. 1 1 () 1 1

Contribution unknown ....... 1 1 1 1

No required employee

contribution ......................... 86 84 87 87

Not determinable .................. 1 1 1 1

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals.
101

Chapter 6.

Defined Benefit Plans

Defined benefit pension plans provide employees with

guaranteed retirement benefits based on

predetermined benefit formulas. A participant’s

retirement age, length of service, and preretirement earnings

may also affect the benefits received. Definitions, key

provisions, and related terms follow.

Benefit formulas

Terminal earnings formulas. Benefits under these formulas

are based on a percentage of average earnings during a specified number of years at the end of a worker’s career (or when

earnings are highest) multiplied by the number of years of

service recognized by the plan.

Career-earnings formulas. Under this formula, benefits are

based on a percentage of an average of career earnings for

every year of service recognized by the plan.

Dollar amount formulas. This formula calculates benefits

based on a dollar amount for each year of service recognized

by the plan.

Cash account formulas. Benefits under these formulas are

based on the total amount of employer contributions plus

interest, which is called a cash balance. The employer contribution is usually a percentage of the participant’s pay. The

benefit at retirement is either paid as a lump sum, in the

amount equal to the participant’s cash balance, or as an

annuity, calculated on its actuarial amount.

Percent of contribution formulas. These formulas base benefits on employer, and, occasionally, employee contributions.

Benefits equal a percent of total contributions.

Normal retirement

Normal retirement is the age at which plan participants could

retire and receive all accrued benefits.

Early retirement

Early retirement is the age (or a combination of age and service) at which plan participants could retire and receive all

accrued benefits less a reduction for the years prior to their

normal retirement age.10

Benefit payment methods

Payments from defined benefit plans may be in the form of

a straight-life annuity, joint-and-survivor annuity, percent of

unreduced accrued benefit, or a lump sum.

Straight life annuity. This is a periodic payment made for

the life of the retiree, with no additional payments to survivors.

Joint and survivor annuity. The Employee Retirement Income Security Act of 1974 (ERISA) requires defined benefit

pension plans that offer an annuity as a payment option to

provide a qualified joint and survivor annuity (QJSA) as the

normal benefit payment for married participants. A QJSA is

an immediate annuity for the life of the participant and a

survivor annuity for the life of the participant’s spouse. The

amount of the survivor annuity may not be less than 50 percent nor more than 100 percent of the amount payable during the time that the participant and spouse are both alive.

The annuity payable for the life of the participant is lower

than that for a straight-life annuity. To account for the increased length of time over which payments will be made,

this reduction may be a percent of the straight-life benefit,

such as 10 percent, or based on the life expectancy of the

participant and spouse (the so-called actuarial reduction).11

Percent of unreduced accrued benefit. Under this method,

the participant’s pension is not reduced to adjust for survivor

benefits. The participant receives an amount equal to the

straight-life annuity and the spouse receives a proportion of

that amount, often 50 percent, should the participant die.

Lump-sum payment. The participant may opt for a full lump

sum, with no further benefits received from the plan. If a

plan provides for a partial lump-sum payment, the participant usually receives a reduced annuity as well.

Vesting

Vesting refers to the amount of time a participant must

work before earning a nonforfeitable right to a pension benefit. Once vested, the accrued benefit is retained even if

the worker leaves the establishment before reaching retirement age. Vesting methods include cliff and graduated

vesting.

Cliff vesting. This form of vesting is when no vesting occurs

until an employee satisfies the service requirements for 100-

percent vesting, for example, after 5 years.

Graduated vesting. Under this form of vesting, an employee’s
102

Defined Benefit Plans

nonforfeitable percentage of employer contributions increases

over time until vesting reaches 100

percent.

Integration with Social Security

Defined benefit plans may “integrate” retirement benefits with

Social Security benefits. Under this approach the employer’s

contribution to Social Security (FICA taxes) is taken into account when computing plan benefits. Integration may be accomplished by an offset or a step-rate method.

Offset. When part of a participant’s Social Security benefit is

subtracted from the benefit otherwise payable by the plan,

the benefit has been offset. The maximum allowable offset is

half of the annual Social Security benefit.

Step-rate. Such rates are lower benefit rates that are applied

to earnings up to the specified taxable Social Security wage

base (that is, the earnings subject to Social Security tax) in a

given year.12

Portability

Portability is a participant’s ability to maintain and transfer

accumulated pension benefits when changing jobs. Portability provisions in defined benefit plans generally cover portability of assets, portability of credited service, or both.

10 For more information about early retirement provisions, see Ann C.

Foster, “Early Retirement Provisions in Defined Benefit Pension Plans,”

Compensation and Working Conditions, December 1996, pp. 12-16. 11 For more information see “Looking Out for #2: A Married Couple’s

Guide to Understanding Your Benefit Choices at Retirement from a Defined Benefit Plan,” Publication 1566, Department of the Treasury, Internal Revenue Service, 1991.

12 For more information see Jules Lichtenstein, “Social Security Reform:

Pension Plan Integration with Social Security, Washington, DC: AARP,

Portability of assets. Withdrawing accumulated pension benefits or transfering them to another retirement arrangement,

provides participants with portability of assets.

Portability of credited service. Allowing participants to count

the years of service with a previous employer when determining benefits from a later employer, provides them with

portability of credited service.13

Disability retirement

When an employee suffers a totally disabling injury or illness before eligibility for early or normal retirement, she or

he may be eligible for disability retirement. Plans providing

disability retirement benefits may have a service requirement

of 10 years or more. Benefits may be immediate or deferred.

Post-retirement pension increases

Benefits received by retired participants may be adjusted to

account for loss of purchasing power due to inflation. Some

plans specify automatic cost-of-living increases, usually based

on changes in the Consumer Price Index. Some employers

provide discretionary or ad hoc increases to adjust retiree

benefits for inflation.14

— Endnotes —

1998 and Avy D. Graham, “Coordinating Private Pension Benefits with

Social Security,” Monthly Labor Review, March 1994, pp. 35-38. 13 For more information on portability provisions, see Ann C. Foster, “Portability of Pension Benefits Among Jobs,” Monthly Labor Review, July 1994,

pp. 45-50.

14 For more information on post-retirement pension increases, see Harriet

Weinstein, “Post-retirement Pension Increases,” Compensation and Working Conditions, Fall 1997, pp. 47-50.
103

Table 125. Defined benefit plans: Summary of plan

provisions, full-time employees, medium and large private

establishments, 1997

Provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

Basic provisions

Employee contribution

required .......................... 5 6 4 4

Benefits based on earnings .. 67 79 78 55

Benefits integrated with

Social Security ................ 49 54 60 41

Benefits subject to

maximum1 ...................... 33 34 41 28

Early retirement benefits

available ......................... 95 94 93 96

Disability retirement benefits

available ......................... 75 64 71 83

Portability provisions ............. 8 4 6 10

Availability of lump sum

benefits at retirement ...... 23 26 31 16

Automatic cost-of-living

increase .......................... 3 3 4 3

Other provisions

Normal retirement

supplement available ...... 4 7 3 4

Early retirement supplement

available ......................... 7 10 4 6

Minimum benefits provision .. 4 4 5 3

Early retirement requires

employer approval .......... 3 2 2 4

Deferred vested benefits

available prior to normal

retirement age ................ 90 90 92 89

Lump-sum postretirement

survivor benefits ............. 4 7 2 3

Lump-sum preretirement

survivor benefits ............. 2 1 2 2

Full pension restored if

spouse predeceases

retiree ............................. 12 11 15 12

Survivor benefits for children 8 11 7 7

1 Provisions that restrict benefits, such as limits on the number of years

of service included in benefit computations.

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

Table 126. Defined benefit plans: Primary formula and

availability of alternative formula, full-time employees, medium

and large private establishments, 1997

Benefit

formula1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

Percent of terminal earnings 56 67 66 45

With alternative formula .... 19 20 20 18

Percent of career earnings ... 11 13 12 9

With alternative formula .... 3 5 3 2

Dollar amount formula .......... 23 10 12 36

With alternative formula .... 2 () 1 2 () 1

Percent of contribution

formula ............................ 3 2 () 1 5

With alternative formula .... 2 () - - 1

Cash account ........................ 6 9 5 4

With alternative formula .... 2 ( ) 2 ( ) 2 ( ) 2 ( )

Other ..................................... 1 1 3 2 ( )

1 Alternative formulas are generally designed to provide a minimum

benefit for employees with short service or low earnings. 2 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
104

Table 127. Defined benefit plans: Terminal earnings formula,

full-time employees, medium and large private establishments,

1997

Item

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

terminal earnings formula ... 10,812 3,660 2,975 4,176

Percent

Total with terminal earnings

formula ................................ 100 100 100 100

Flat percent per year of

service ............................ 35 35 26 40

Less than 1.00 percent ..... 2 1 () 1 3

1.00 - 1.24 percent ........... 9 10 7 11

1.25 - 1.49 percent ........... 3 3 5 3

1.50 - 1.74 percent ........... 11 12 8 13

1.75 - 1.99 percent ........... 4 5 2 5

2.00 - 2.24 percent ........... 5 5 3 6

2.25 percent or greater ..... 1 () - 1 () -

Percent per year varies ........ 65 65 74 60

By service ......................... 11 11 15 7

By earnings ....................... 39 39 41 36

By earnings and service ... 16 14 18 17

Average2

Average flat percent per year of

service ................................ 1.48 1.50 1.47 1.47

1 Less than 0.5 percent. 2 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.

Table 128. Defined benefit plans: Definition of terminal

earnings, full-time employees, medium and large private

establishments, 1997

Definition

of

earnings

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

terminal earnings formula ... 10,812 3,660 2,975 4,176

Percent

Total with terminal earnings

formula ................................ 100 100 100 100

One year ............................... 1 2 1 () 1

Three years .......................... 17 24 10 17

Last 3 ................................ 1 1 1 () 1

High 3 ............................... 5 7 2 5

Of last 10 ...................... 2 3 1 2

Of career ....................... 3 4 1 3

Of other time period ...... 1 ( ) 1 ( ) 1 ( ) 1 ( )

High consecutive 3 ........... 12 16 7 11

Of last 10 ...................... 7 11 4 7

Of career ....................... 2 2 2 3

Of other time period ...... 2 2 1 1

Five years ............................. 78 71 88 78

Last 5 ................................ 1 1 3 1 ( )

High 5 ............................... 13 10 14 14

Of last 10 ...................... 8 7 9 8

Of career ....................... 4 2 3 5

Of other time period ...... 1 1 1 1 ( )

High consecutive 5 ........... 65 60 72 64

Of last 10 ...................... 44 45 54 36

Of career ....................... 20 15 17 27

Of other time period ...... 1 1 () 1 1

Other period2 ........................ 3 3 2 4

1 Less than 0.5 percent. 2 Formulas based on earnings during period other than 3 or 5 years’

service, or period not immediately before retirement (for example, first 5 of

last 10 years’ service).

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

Where applicable, dash indicates no employees in this category.
105

Table 129. Defined benefit plans: Types of earnings included

in earnings-based formulas, full-time employees, medium and

large private establishments, 1997

Definition

of

earnings

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

earnings-based formula ...... 12,910 4,356 3,527 5,026

Percent

Total with earnings-based

formula ................................ 100 100 100 100

Straight-time earnings only ... 59 64 60 54

Straight-time earnings plus

other earnings ................. 41 36 40 46

Overtime ........................... 31 30 29 32

Shift differentials ............... 26 27 22 29

Commissions .................... 22 17 23 26

Other ................................. 17 13 16 21

NOTE: Sums of individual items may be greater than totals because more

than one type of earnings may be included in this definition. Where

applicable, dash indicates no employees in this category.

Table 130. Defined benefit plans: Dollar

amount formula, full-time employees, medium

and large private establishments, 1997

Item

All

employees

Bluecollar

and

service

employees

Number (in thousands) with

dollar amount formula ......... 4,453 3,347

Percent

Total with dollar amount

formula ................................ 100 100

Flat monthly amount per year

of service ........................ 97 98

Less than $5.00 ................ 8 9

$5.00 - $9.99 .................... 4 4

$10.00 - $14.99 ................ 3 2

$15.00 - $19.99 ................ 10 9

$20.00 - $24.99 ................ 12 14

$25.00 - $29.99 ................ 11 10

$30.00 - $34.99 ................ 10 7

$35.00 - $39.99 ................ 29 30

$40.00 or more ................. 11 10

Dollar amount varies ............. 3 2

By service ......................... 3 2

Average1

Average flat dollar amount per

year of service .................... $28.79 $27.63

1 The average is presented for all covered workers;

averages exclude workers without the plan provision.

NOTE: Data were insufficient to show professional,

technical, and related employees and clerical and sales

employees separately. Because of rounding, sums of

individual items may not equal totals. Where applicable,

dash indicates no employees in this category.
106

Table 131. Defined benefit plans: Integration with Social

Security, full-time employees, medium and large private

establishments, 1997

Intregration

with Social

Security

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit pension ...... 19,202 5,498 4,504 9,200

Percent

Total with defined benefit

pension ............................... 100 100 100 100

With integrated formula ........ 49 54 60 41

Step-rate excess1 ............. 36 40 46 30

Social Security

breakpoint ............... 33 37 44 26

Dollar amount

breakpoint ............... 3 3 2 3

Offset by Social Security2 13 14 14 12

Without integrated formula ... 51 46 40 59

Terminal earnings ............. 18 25 18 13

Other formulas .................. 34 21 22 47

Not covered under Social

Security ........................... 1 1 3 () 1

1 Formula applies lower benefit rate to earnings subject to FICA (Social

Security) taxes or below a specific dollar breakpoint. 2 Benefit as calculated by formula is reduced by portion of primary Social

Security payments, for example, 50 percent. 3 Less than 0.5 percent.

Table 132. Defined benefit plans: Maximum benefit

provisions,1 full-time employees, medium and large private

establishments, 1997

Maximum

benefit

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

Subject to maximum ............. 33 34 41 28

Limit on years of credited

service ........................ 31 31 39 26

Less than 30 ................. 6 7 5 5

30 .................................. 7 8 9 5

31 - 34 .......................... 2 () 1 2 ( ) 2 ( )

35 .................................. 12 10 16 10

36 - 39 .......................... 2 ( ) 2 () - -

40 .................................. 5 5 8 4

Greater than 40 ............ 1 1 1 2

Other maximum3 .............. 2 2 2 2

Not subject to maximum ....... 67 66 59 72

Average4

Average credited service

maximum (in years) ............ 33.2 32.5 33.9 33.3

1 These maximum provisions are independent of Internal Revenue Code

ceilings on pensions payable from defined benefit plans. 2 Less than 0.5 percent. 3 The benefit yielded under the formula is limited to a percent of terminal

earnings or to a flat dollar amount. 4 The average is presented for all covered workers; averages exclude

workers without the plan provision.

NOTE: Sums of individual items may not equal totals because some benefit

formulas contain a limit on years of credited service and another maximum

provision. Where applicable, dash indicates no employees in this category.
107

Table 133. Defined benefit plans: Availability of lump sum

benefits at retirement, full-time employees, medium and large

private establishments, 1997

Option

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

With lump sum available ....... 23 26 31 16

Full lump sum available .... 22 25 30 16

Limited to specified

amount .................... 7 8 9 6

No limit .......................... 15 18 21 10

Partial lump sum with

reduced annuity .......... 1 1 1 () 1

Other ................................. 1 ( ) 1 ( ) 1 () -

No lump sum available ......... 76 73 68 82

Not determinable .................. 1 1 1 1

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.

Table 134. Defined benefit plans: Postretirement survivor

benefits, full-time employees, medium and large private

establishments, 1997

Survivor

benefit

provisions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

With postretirement survivor

benefits ........................... 100 100 100 100

Joint and survivor annuity1 98 98 99 97

50 percent only ............. 28 29 28 28

51 - 99 percent only ...... 3 3 1 5

Retiree choice of

percentages ............ 65 65 69 63

Highest:

51 - 99 percent ..... 3 3 4 3

100 percent ........... 61 61 65 59

Not determinable .......... 2 2 2 2

Percent of unreduced

accrued benefits ......... 2 2 1 3

1 An annuity that provides income during the lifetime of both the retiree

and the surviving spouse. The accrued pension will usually be actuarially

reduced at retirement because of the longer time that payments are expected

to be made. Employees and their spouses are required to waive the spouse

annuity in writing if they desire a pension during the employee’s lifetime only

or another option offered by the plan, such as guarantee of payment for a

specified period.

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

Where applicable, dash indicates no employees in this category.
108

Table 135. Defined benefit plans: Preretirement survivor

benefits, full-time employees, medium and large private

establishments, 1997

Survivor

benefit

provisions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

With preretirement survivor

benefits1 ......................... 97 97 96 98

Equivalent to

joint-and-survivor

annuity2 ...................... 93 90 93 94

50 percent of

employee’s pension 78 73 79 81

With additional

employee cost3 ... 7 8 6 7

Other percent of

employee’s

pension4 ................. 3 3 3 4

With additional

employee cost3 ... 1 1 1 1

Employee choice of

percent5 .................. 10 13 8 9

With additional

employee cost3 ... 1 3 6 () 1

Not determinable .......... 1 1 2 6 ( )

Percent of accrued

benefits ....................... 5 7 3 4

No preretirement survivor

benefits ........................... 2 2 3 6 ( )

Not determinable .................. 1 1 1 1

1 Survivor annuity is based upon the benefit the employee would have

received if retirement had occurred on the date of death. 2 The spouse annuity is computed as if the employee had retired with a

joint-and-survivor annuity. That is, the accrued pension is first reduced

because of the longer time that payments were expected to be made to both

the retiree and the surviving spouse. The spouse’s share is then the

specified percent of the reduced amount. 3 Plan reduces the accrued employee pension benefit for each year

survivor protection is in force. 4 Other percentages range from 51 - 100 percent of retiree’s pension. 5 Alternative percentages were usually 50 or 100 percent. 6 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.

Table 136. Defined benefit plans: Requirements for normal

retirement, full-time employees, medium and large private

establishments, 1997

Requirements

for normal

retirement1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

No age requirement .............. 5 5 4 5

20 - 29 years of service .... 2 () - - 2 ( )

30 years of service ........... 4 5 4 4

35 years of service ........... 2 ( ) 2 ( ) 2 () 1

At age 55 .............................. 6 7 6 5

No service requirement .... 2 ( ) 2 ( ) 2 () 1

5 years of service ............. 1 1 1 1

10 years of service ........... 1 1 1 2 ( )

15 years of service ........... 2 ( ) 2 ( ) 2 ( ) 2 ( )

20 years of service ........... 2 ( ) 2 () 2 2 ( )

25 years of service ........... 1 1 2 () 1

30 years of service ........... 2 4 2 2

More than 30 years of

service ........................ 2 ( ) 2 ( ) 2 ( ) 2 ( )

At age 56 - 59 ....................... 1 1 2 () 1

5 years of service ............. 2 () - - 2 ( )

20 years of service ........... 2 ( ) 2 ( ) 2 () -

26 - 29 years of service .... 2 () 1 2 ( ) 2 ( )

30 years of service ........... 2 ( ) 2 ( ) 2 () 1

More than 30 years of

service ........................ 2 ( ) 2 ( ) 2 ( ) 2 ( )

At age 60 .............................. 9 10 9 9

No service requirement .... 3 3 3 3

5 years of service ............. 1 1 1 1

10 years of service ........... 2 3 2 2

15 years of service ........... 1 2 ( ) 2 () 1

20 years of service ........... 2 ( ) 2 ( ) 2 ( ) 2 ( )

25 years of service ........... 2 ( ) 2 ( ) 2 () 1

30 years of service ........... 2 2 3 1

At age 62 .............................. 23 16 18 29

No service requirement .... 3 5 3 3

5 years of service ............. 3 3 4 4

6 - 9 years of service ........ 2 ( ) 2 ( ) 2 () -

10 years of service ........... 11 6 5 16

15 years of service ........... 1 1 1 2

20 years of service ........... 2 2 () 3 2

21 - 24 years of service .... 2 ( ) 2 ( ) 2 () -

25 years of service ........... 1 2 () 1 1

See footnotes at end of table.
109

Table 136. Defined benefit plans: Requirements for normal

retirement, full-time employees, medium and large private

establishments, 1997 — Continued

Requirements

for normal

retirement1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

Total with defined benefit plan

At age 62

30 years of service ........... 1 2 ( ) 2 () 1

More than 30 years of

service ........................ 2 ( ) 2 () - 2 ( )

At age 63 - 64 ....................... 1 2 () 1 1

No service requirement .... 2 ( ) 2 () 1 2 ( )

5 years of service ............. 2 () - 2 () 1

At age 65 .............................. 48 54 54 43

No service requirement .... 29 33 34 25

1 - 4 years of service ........ 1 1 1 2 ( )

5 years of service ............. 15 16 16 14

10 years of service ........... 3 3 2 3

15 years of service ........... 2 () - - 2 ( )

25 years of service ........... 2 ( ) 2 ( ) 2 () 1

Sum of age plus service3 ...... 8 8 7 8

Equals less than 80 .......... 2 1 2 2

Equals 80 .......................... 1 1 2 () 2

Equals 81 - 89 .................. 5 6 5 4

Equals 90 .......................... 2 ( ) 2 ( ) 2 ( ) 2 ( )

1 Normal retirement is defined as the point at which the participant could

retire and immediately receive all accrued benefits by virtue of service and

earnings, without reduction due to age. 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 requirement tabulated. 2 Less than 0.5 percent. 3 In some plans, participants must also satisfy a minimum age or service

requirement.

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

Where applicable, dash indicates no employees in this category.

Table 137. Defined benefit plans: Requirements for early

retirement, full-time employees, medium and large private

establishments, 1997

Requirements

for early

retirement1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

With early retirement

available ......................... 95 94 93 96

No age requirement2 ........ 8 4 5 12

Less than 20 years of

service .................... 3 ( ) 3 ( ) 3 ( ) 3 ( )

20 - 29 years of service 3 ( ) 3 ( ) 3 () 1

30 years of service ....... 8 3 5 12

Less than age 55 .............. 8 7 11 6

No service requirement2 3 ( ) 3 ( ) 3 ( ) 3 ( )

5 years of service ......... 3 2 5 2

6 - 9 years of service .... 3 ( ) 3 () - 3 ( )

10 years of service ....... 1 1 1 1

15 years of service ....... 1 1 1 1

20 years of service ....... 1 1 1 1

25 years of service ....... 2 3 3 3 ( )

At age 55 .......................... 64 66 67 61

No service requirement2 3322

1 - 4 years of service .... 3 ( ) 3 ( ) 3 ( ) 3 ( )

5 years of service ......... 20 22 23 17

6 - 9 years of service .... 3 ( ) 3 ( ) 3 ( ) 3 ( )

10 years of service ....... 30 30 30 30

15 years of service ....... 9 8 9 10

20 years of service ....... 1 1 2 1

25 years of service ....... 1 1 1 1

Between ages 56 - 59 ....... 1 1 1 3 ( )

No service requirement2 3 () 1 1 3 ( )

30 years of service ....... 3 () 1 3 ( ) 3 ( )

See footnotes at end of table.
110

Table 137. Defined benefit plans: Requirements for early

retirement, full-time employees, medium and large private

establishments, 1997 — Continued

Requirements

for early

retirement1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Percent

Total with defined benefit plan

With early retirement

available

At age 60 .......................... 3 2 2 4

No service requirement2 3 ( ) 3 ( ) 3 () -

5 years of service ......... 1 1 1 3 ( )

10 years of service ....... 2 1 1 3

15 years of service ....... 1 3 ( ) 3 () 1

20 years of service ....... 3 () - - 3 ( )

At age 62 .......................... 3 3 2 4

5 years of service ......... 1 3 ( ) 3 () 1

10 years of service ....... 1 1 3 () 1

15 years of service ....... 1 2 2 1

16 - 19 years of service 3 () - - 1

20 years of service ....... 3 () - - 3 ( )

Sum of age plus service4 .. 8 11 5 7

Equals less than 80 ...... 6 8 5 6

Equals 80 ...................... 3 () 1 3 ( ) 3 ( )

Equals 81 - 89 .............. 1 2 3 () 1

Early retirement not available 5 5 7 4

Not determinable .................. 1 1 1 1

1 Early retirement is defined as the point at which a worker could retire

and immediately receive accrued benefits based on service and earnings but

reduced for each year prior to normal retirement age. 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

requirement tabulated. 2 Where no service requirement is specified for early retirement, the

service required for full vesting, usually 5 years, applies. 3 Less than 0.5 percent. 4 In most plans, participants must satisfy a minimum age or service

requirement.

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

Where applicable, dash indicates no employees in this category.

Table 138. Defined benefit plans: Early retirement reduction,

full-time employees, medium and large private establishments,

1997

Early

retirement

reduction1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

early retirement available ... 18,164 5,177 4,167 8,821

Percent

Total with early retirement

available ............................. 100 100 100 100

Uniform percentage

reduction2 ....................... 43 39 35 49

Less than 3.0 .................... 3 5 2 2

3.0 ..................................... 6 4 4 7

3.1 - 3.9 ............................ 1 3 ( ) 3 () 1

4.0 ..................................... 4 5 4 3

4.1 - 4.9 ............................ 1 3 () 2 1

5.0 ..................................... 9 7 8 10

6.0 ..................................... 17 15 15 19

6.1 - 6.9 ............................ 2 1 3 () 2

7.0 ..................................... 1 3 ( ) 3 () 1

Greater then 7.0 ............... 1 1 3 () 1

Reduction varies ................... 57 61 65 51

By service ......................... 4 4 5 3

By age .............................. 53 56 60 48

Other reduction4 ................... 3 ( ) 3 ( ) 3 ( ) 3 ( )

Not determinable .................. 3 () - 3 ( ) 3 ( )

Average5

Average uniform reduction

percentage .......................... 4.9 4.8 4.9 5.0

1 Reduction for each year prior to normal retirement. 2 In specific cases, uniform percentage reductions may approximate

actuarial reductions, such as early retirement at age 55 with a reduction of 6

percent per year between age 55 and the plan’s normal retirement age of 62. 3 Less than 0.5 percent. 4 Reduced amount was not derived from normal retirement formula. 5 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.
111

Table 139. Defined benefit plans: Method of calculating

disability retirement benefits, full-time employees, medium and

large private establishments, 1997

Benefit

provisions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

With disability retirement

available ......................... 75 64 71 83

Immediate disability

retirement1 .................. 46 33 39 58

Unreduced normal

benefits2 ................. 30 18 29 37

Reduced normal

benefits3 ................. 14 13 9 18

Other than normal

benefits4 ................. 2 1 1 3

Not deteminable ........... 5 ( ) 5 () - -

Deferred disability

retirement ................... 28 31 32 25

With benefits based on:

Service when

disabled .............. 4 4 5 4

Service to retirement

age ...................... 24 28 27 21

Not determinable ...... 5 ( ) 5 () - 5 ( )

Disability retirement not

available ......................... 24 35 27 16

Not determinable .................. 2 2 2 1

1 Immediate disability pensions may be supplemented by additional

allowances until an employee reaches a specified age or becomes eligible for

Social Security. 2 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 normal

retirement date, either based on years of service actually completed or

projected to a later date. 3 The disabled worker’s pension is computed under plan’s normal benefit

formula, based on years of service actually completed, and then reduced for

early receipt. 4 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 less Social Security,

and percent of earnings formula both with and without Social Security offsets. 5 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.

Table 140. Defined benefit plans: Requirements for disability

retirement, full-time employees, medium and large private

establishments, 1997

Requirements for

disability

retirement1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

With disability retirement

available ......................... 75 64 71 83

No minimum requirements 13 10 14 15

No age requirement .......... 31 26 27 36

5 years of service ......... 1 2 ( ) 2 () 1

6 - 9 years of service .... 2 () - 2 ( ) 2 ( )

10 years of service ....... 17 15 13 20

11 - 14 years of service 2 () - - 2 ( )

15 years of service ....... 11 10 11 12

Greater than 15 years of

service .................... 2 1 2 2

Less than age 40 .............. 2 ( ) 2 ( ) 2 ( ) 2 ( )

No service requirement 2 () - 2 ( ) 2 ( )

10 years of service ....... 2 ( ) 2 ( ) 2 ( ) 2 ( )

Ages 40 - 49 ..................... 1 2 1 1

No service requirement 2 ( ) 2 ( ) 2 ( ) 2 ( )

10 years of service ....... 1 1 1 1

Greater than 10 years of

service .................... 2 () 1 2 ( ) 2 ( )

Age 50 or more ................. 5 4 5 6

No service requirement 2 ( ) 2 () 1 2 ( )

Less than 10 years of

service .................... 2 ( ) 2 () 1 2 ( )

10 years of service ....... 3 2 2 4

Greater than 10 years of

service .................... 1 1 1 2

Sum of age plus service ... 1 1 2 1

Receipt of long-term

disability insurance

benefits ....................... 13 16 16 10

Minimum vesting

requirement3 ............... 9 5 7 13

Disability retirement not

available ......................... 24 35 27 16

Not determinable .................. 2 2 2 1

1 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 requirement tabulated. 2 Less than 0.5 percent. 3 An employee may be entitled to pension benefits after satisfying vesting

service requirements, usually 5 years.

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

Where applicable, dash indicates no employees in this category.
112

Table 141. Defined benefit plans: Vesting requirements,

full-time employees, medium and large private establishments,

1997

Vesting

requirements

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

Immediate full vesting ........... 1 2 1 () 1

Cliff vesting2 ......................... 96 95 95 96

With full vesting:

At any age .................... 91 90 90 93

Less than 5 years ..... 1 ( ) 1 ( ) 1 ( ) 1 ( )

5 years ...................... 85 88 87 83

6 - 9 years ................. 1 ( ) 1 ( ) 1 () -

10 years .................... 6 2 2 10

After specified age3 ...... 4 5 5 4

5 years ...................... 4 5 5 4

10 years .................... 1 () - 1 ( ) 1 ( )

Graduated vesting4 ............... 3 3 5 2

With full vesting after:

Less than 7 years ......... 2 1 2 2

7 years .......................... 1 1 2 1 ( )

More than 7 years ......... 1 () 1 1 () -

Not determinable .................. 1 ( ) 1 () - 1 ( )

1 Less than 0.5 percent. 2 Under a cliff vesting schedule, an employee is not entitled to any

benefits accrued under a pension plan until satisfying the requirement for

100-percent vesting (usually after 5 years). 3 Sponsors may exclude years of service completed before age 18 from

counting towards satisfaction of minimum vesting standards. 4 Graduated vesting schedules give an employee rights to a gradually

increasing share of pension benefits determined by years of service,

eventually reaching 100-percent vesting status (usually after 7 years).

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

Where applicable, dash indicates no employees in this category.

Table 142. Defined benefit plans: Provisions for early receipt

of deferred vested benefits, full-time employees, medium and

large private establishments, 1997

Receipt of

deferred vested

benefits

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

Deferred vested benefits

available prior to normal

retirement age ................ 90 90 92 89

Reduced same as early

retirement ................... 52 49 54 54

Other reduction ................. 38 42 38 36

Actuarial reduction ........ 30 34 30 27

Uniform percent

reduction ................. 6 6 5 6

Other ............................. 2 2 2 3

Deferred vested benefits not

available prior to normal

retirement age ................ 9 9 7 9

Not determinable .................. 1 1 1 1

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

Where applicable, dash indicates no employees in this category.
113

Table 143. Defined benefit plans: Portability provisions,

full-time employees, medium and large private establishments,

1997

Portability

provisions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

With portability provisions ..... 8 5 6 10

Transfer of service credits 1 2 1 1

Transfer of assets ............. 1 () 1 1 1 ( )

Transfer of service credits

and assets .................. 1 ( ) 1 ( ) 1 () -

Multi-employer plans ........ 6 2 4 9

Reciprocity with other

plans/jurisdictions ... 3 1 3 4

Contribution sent to

home fund ........... 1 () - 1 1

Pro rata pension paid

by several funds 3 1 2 4

No reciprocity ................ 3 1 1 5

Not determinable .......... 1 ( ) 1 ( ) 1 ( ) 1 ( )

Other ................................. 1 ( ) 1 ( ) 1 () -

No portability provisions ....... 91 94 93 88

Not determinable .................. 2 1 1 2

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.

Table 144. Defined benefit plans: Employee contribution

requirements, full-time employees, medium and large private

establishments, 1997

Employee

contributions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

Employee contribution

required .......................... 5 6 4 4

Pretax contribution

allowed ....................... 1 1 1 1 ( )

Pretax contribution not

allowed ....................... 4 4 3 4

No employee contribution

required .......................... 95 93 96 95

Not determinable .................. 1 1 1 ( ) 1 ( )

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
114

Table 145. Defined benefit plans: Eligibility requirements,

full-time employees, medium and large private establishments,

1997

Eligibility

requirements1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

defined benefit plan ............ 19,202 5,498 4,504 9,200

Percent

Total with defined benefit plan .. 100 100 100 100

Plan participation available to

new employees ............... 98 99 99 98

With minimum age and/or

service requirement .... 68 69 82 60

Service requirement

only ......................... 28 23 26 32

3 months and less .... 2 2 3 1

4 - 5 months .............. 2 2 () 1 3

6 months ................... 1 1 2 1

7 - 11 months ............ 2 () - 2 ( ) 2 ( )

1 year ........................ 22 18 20 25

2 years ...................... 1 2 1 1

Age 20 or less ............... 3 6 3 2

No service

requirement ........ 2 4 1 1

1 - 11 months ............ 2 ( ) 2 ( ) 2 ( ) 2 ( )

1 year ........................ 1 2 2 2 ( )

Over 1 year ............... 2 () - 1 2 ( )

Age 213 ......................... 36 39 52 26

No service

requirement ........ 1 2 1 1

1 - 11 months ............ 2 () 1 1 2 ( )

1 year ........................ 34 37 50 25

Age 22 and over ........... 2 ( ) 2 () 1 2 ( )

1 year ........................ 2 ( ) 2 () 1 2 ( )

Over 1 year ............... 2 ( ) 2 ( ) 2 ( ) 2 ( )

No minimum age or

service requirement .... 31 30 17 38

Plan participation not

available to new

employees ...................... 1 1 1 1

Not determinable .................. 2 ( ) 2 () - 1

Average4

Average service requirement (in

months) ............................... 11.7 12.0 11.6 11.5

1 Excludes administrative time lags. 2 Less than 0.5 percent. 3 The Internal Revenue Code requires that nearly all plans must allow

participation to full-time employees who have reached the age of 21 who

have completed one year of service. Plans that provide immediate vesting of

accrued benefits may require up to three years. Church plans are exempt

from the Internal Revenue Code. 4 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.
115

Chapter 7.

Defined Contribution Plans

Retirement plans that specify the level of employer

contributions and place those contributions into

individual employee accounts are called defined

contribution plans. EBS collects data on the following defined

contribution plans: Savings and thrift, deferred profit-sharing,

money purchase pension, stock bonus, and employee stock

ownership plans. Definitions of major plan types, key

provisions, and related terms follow.

Plan types

Savings and thrift plans. Under these retirement plans,

employees may contribute a predetermined portion of

earnings (usually pretax) to an individual account, all or part

of which the employer matches. Employers may match a fixed

percent of employee contributions or a percent that varies by

length of service, the amount of employee contribution, or

other factors. Contributions are invested as directed by the

employee or employer. Although usually designed as a longterm savings vehicle, savings and thrift plans may allow preretirement withdrawals and loans.

Deferred profit-sharing plans. This is a retirement plan under which a company credits a portion of company profits to

employees’ accounts. Plans may set a fixed formula for sharing profits, but this is not a requirement. Most plans hold

money in employee accounts until retirement, disability, or

death.

Money purchase pension plans. Under these retirement plans,

fixed employer contributions (usually calculated as a percentage of employee earnings) are allocated to individual employee accounts. Some of these plans may allow employee

contributions, but employees are usually not required to make

any contributions. Employers may also make profit-sharing

contributions to these plans at their discretion.

Employee Stock Ownership Plan (ESOP). Under ESOP retirement plans, the employer pays a designated amount, often borrowed, into a fund which then invests primarily in

company stock. Any debt incurred in the purchase of the stock

is repaid by the company. The stocks are then distributed to

employees according to an allocation formula.

Stock Bonus Plans. A Stock Bonus plan specifies employer

or employee and employer contributions to a trust fund that

invests in various securities.

Investment choices

Company stock. Employees receive equity, in the form of

company stock, in the company that sponsors the defined

contribution plan.

Common stock fund. This is a professionally managed fund

that invests in the common stock of a variety of companies.

Fixed interest securities. These are bonds and other

non-Federal instruments that pay a fixed interest rate over a

period of time.

Diversified investments. These are any professionally managed funds that invest in more than one type of equity or debt

instrument.

U.S. Government securities. These investments include Treasury Bills, Treasury Notes, and Savings Bonds that pay a fixed

rate of interest guaranteed by the U.S. Government.

Guaranteed investment contract (GIC). Some insurance

companies offer a guaranteed investment contract that guarantees the principal and a fixed rate of return for a specified

time period.

Money market fund. This is a professionally managed

mutual fund that buys high-quality, short-term notes,

acceptances, or certificates of deposit. Such funds sell

shares to investors who receive regular payments of

interest.

Certificate of deposit. Receipts issued by banks or savings

and loans associations for deposits of funds are known as

certificates of deposit. Interest accrues on the amount

deposited and is paid at maturity.

Withdrawals, loans, and distributions

Withdrawals. Prior to normal payout (usually at retirement),

defined contribution plan participants may be allowed to withdraw all or a portion of the money in their accounts. While

most early withdrawals incur tax penalties, hardship withdrawals do not. (See below.) To avoid tax penalties, many

plans have loan provisions that allow employees to borrow

from their accounts, with interest, for a specified period of

time.
116

Defined Contribution Plans

Hardship withdrawals. Employees are usually not penalized

when money is withdrawn as a result of a hardship often

defined as a death or illness of a family member, education

expenses, sudden uninsured losses, or a need to prevent eviction from one’s primary residence.

Loans. Defined contribution plans may allow participants to

borrow money, with interest, from their accounts. These loan

amounts are often limited to a portion of the account balance. They usually have to be repaid within 5 years, but longer

payment periods may apply for home purchase or renovation loans.

Rollovers and transfers. These are direct payments of plan

benefits from a defined contribution plan into an IRA or another employer’s plan. In a direct rollover or transfer, the

employee is not taxed on the payment until it is later withdrawn or distributed.

Distribution. At retirement, defined contribution plans normally allow for payout in the form of a lump sum, a lifetime

annuity, or installments over a specified period. While there

is no tax penalties if the distribution takes place after age 59

and a half, the individual must pay taxes as if it were income.

Lump sum distribution. This is an immediate disbursement

of all employer and employee contributions and any investment earnings to the employee.

Annuity. Annuities are a form of distribution that provides

periodic payments for various periods of time. Straight-life

annuities provide payments, usually monthly, for the lifetime of a retiree. Joint-and-survivor annuities provide payments to a retiree, and upon the retiree’s death, payments to a

surviving spouse.

Installment payments. These are payments from the employer

at fixed intervals, for example, equal payments over 5 years.

Employees may or may not receive interest or other remuneration on the nondispersed portion.

Vesting

Vesting is the amount of time an individual must work before

earning a nonforfeitable right to a retirement benefit. When a

worker is fully vested, the accrued benefit is retained even if

the worker leaves the company before reaching retirement

age. While defined contribution plans are subject to the same

vesting rules under the Employee Retirement Income Security

Act as defined benefit plans, vesting schedules vary

significantly. Vesting schedules only apply to employer

contributions; employee contributions (including pretax

contributions) are always 100-percent vested.

Immediate full vesting. This occurs when employees are

immediately eligible to receive 100 percent of employer contributions.

Graduated vesting. This is an employee’s nonforfeitable percentage of employer contributions increases over time until

it reaches 100 percent.

Cliff vesting. Under this form of vesting, no vesting occurs

until an employee satisfies the service requirements for 100-

percent vesting, for example after 7 years.

Class-year vesting. Under this form of vesting, employees

become fully vested in employer contributions made

during a specific period after a period of time, often 3

years.

Employer contribution methods

Specified matching percent. Common in savings and thrift

plans, this employer method matches a specified percent of

employee contributions. The matching percent can vary by

length of service, amount of employee contribution, and other

factors.

Fixed percent of profits formula. Common in deferred profitsharing plans, under this formula the employer contributes a

fixed percent of total annual profits to the plan. For example,

no matter what the level of profits, 5 percent is contributed to

the plan. Profits may include those for the entire company or

just those in a specific business unit. A variation of this formula is when employers set aside a “reserve amount” of profits, for example $1,000,000, and only pay a fixed percent on

those profits above this amount into the employees’ defined

contribution plan.

Percentage of employee earnings. Common in money purchase plans, under this plan the employer contributes a fixed

percent of each employee’s earnings into their individual account.

Related plans and terms

Stock bonus plans. These plans place contributions in a trust

fund that invests in securities, including those of the employing company. These plans are either financed by the employer,

or jointly by the employer and employee. Upon retirement

or separation from the company, proceeds from the trust fund

are paid out to eligible employees in the form of company

stock or cash.

Stock purchase plans. Such plans permit a participating

employee to purchase shares of company stock, usually
117

through payroll deduction, at less than the open-market rate.

No individual employee account is established; stock is distributed immediately upon purchase. (The EBS does not collect data on these plans.)

Stock option plans. These plans give employees the right to

purchase company stock at a given time in the future at a

predetermined price. The employee chooses whether and

when to purchase stock. These plans are usually available to

higher-level management. (The EBS does not collect data on

these plans.)

TIAA-CREF Affiliation. TIAA-CREF plans are provided to

employees at educational institutions and non-profit educational associations. They are most commonly money purchase

plans but may contain matching formulas.

Internal Revenue Code (IRC) section 401(k) plans. This law

allows employees in private, for-profit establishments to make

pre-tax contributions into deferred compensation plans via

salary reduction agreements. These arrangements are often

associated with savings and thrift and other defined contribution plans.

IRC section 403(b) plans. This law allows employees of certain not-for-profit organizations and public schools to make

pre-tax contributions into deferred compensation plans via

salary reduction agreements. 403 (b) plans often are associated with savings and thrift and other defined contribution

plans.

IRC section 457 plans. This law allows employees of State

and local governments and tax-exempt organizations to make

pre-tax contributions into deferred compensation plans via

salary reduction agreements. These plans often are associated with savings and thrift and other defined contribution

plans.

Salary reduction plans. These plans are authorized under

the Internal Revenue Code, which allows employees to divert a portion of their salary or wages to fund benefit plans.

The contribution to the benefit plan are made on a pre-tax

basis.

Discretionary profit sharing contributions. This is a money

purchase pension and savings and thrift plan that may require

the plan sponsor to make payments to the plan, directly from

company profits, in addition to the employer’s usual

contributions.
118

Table 146. Savings and thrift plans: Summary of provisions,

full-time employees, medium and large private establishments,

1997

Item

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100

Pre-tax contributions allowed 98 99 97 98

Transfer/rollover

contributions allowed ...... 53 52 58 50

Employee choice of

investments for employee

contributions ................... 87 89 87 85

Employee choice of

investments for employer

contributions ................... 65 68 62 65

Immediate full vesting ........... 29 34 33 22

Loans permitted .................... 54 56 57 48

Withdrawals permitted .......... 52 50 57 51

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

Where applicable, dash indicates no employees in this category.

Table 147. Savings and thrift plans: Transfer and rollover

provisions,1 full-time employees, medium and large private

establishments, 1997

Item

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100

Transfers/rollovers allowed ... 53 52 58 50

Transfers/rollovers not

allowed ........................... 37 42 33 36

Not determinable .................. 10 6 10 14

1 Relates to the allowance of transfers/rollovers of contributions and

earnings from the previous employer’s plan.

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

Where applicable, dash indicates no employees in this category.
119

Table 148. Savings and thrift plans: Maximum employee

contributions,1 full-time employees, medium and large private

establishments, 1997

Maximum employee

contributions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100

Percent of employee

earnings .......................... 89 88 92 88

5 percent or less ............... 2 2 2 3

6 percent ........................... 2 3 3 1

7 percent ........................... 2 ( ) 2 () - 2 ( )

8 percent ........................... 1 1 2 () 2

9 percent ........................... 1 1 1 2 ( )

10 percent ......................... 7 4 8 9

11 percent ......................... 2 3 1 1

12 percent ......................... 6 8 6 4

13 percent ......................... 4 4 4 3

14 percent ......................... 3 2 2 5

15 percent ......................... 33 28 38 33

16 percent ......................... 17 17 16 18

17 percent ......................... 3 4 3 3

17.01 - 17.99 percent ....... 2 ( ) 2 ( ) 2 () 1

18 percent ......................... 5 6 7 2

19 percent ......................... 2 ( ) 2 ( ) 2 ( ) 2 ( )

20 percent ......................... 2 4 2 2

20.01 - 24.99 percent ....... 2 () - 2 ( ) 2 ( )

25 percent or more ........... 1 2 1 1

Specified dollar amount ........ 1 2 () 1 1

Up to the Internal Revenue

Code limit ........................ 10 11 7 11

Not determinable .................. 2 ( ) 2 ( ) 2 ( ) 2 ( )

Average3

Average maximum contribution

(percent of earnings) .......... 14.3 14.6 14.3 14.1

1 Includes contributions that are not matched by the employer. If

maximum contributions vary, such as by length of service, the highest

possible contribution was tabulated. 2 Less than 0.5 percent. 3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.

Table 149. Savings and thrift plans: Method of determining

pretax contribution, full-time employees, medium and large

private establishments, 1997

Pretax contributions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100

Pretax contributions allowed 98 99 97 98

All contributions must be

pretax .......................... 54 49 55 58

All contributions may be

pretax .......................... 31 36 29 26

Contributions up to

specified percent may

be pretax ..................... 6 6 6 5

Initial contributions must

be pretax; additional

contributions can not

be pretax ..................... 4 3 4 5

Initial contributions must

be pretax; all additional

contributions may be

pretax .......................... 2 3 1 2

Initial contributions must

be pretax; additional

contributions up to a

specified percent may

be pretax ..................... 1 () - - 1 ( )

Pre-tax allowed, options

unknown ..................... 2 2 2 2

No pretax contributions

allowed ........................... 1 1 1 1

Not determinable .................. 1 1 2 1

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
120

Table 150. Savings and thrift plans: Maximum pretax

employee contributions,1 full-time employees, medium and

large private establishments, 1997

Maximum pretax contributions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans that

allow pretax contributions ... 14,577 5,199 3,990 5,388

Percent

Total with savings and thrift

plans that allow pretax

contributions ....................... 100 100 100 100

Percent of employee

earnings .......................... 89 88 93 88

5 percent or less ............... 3 3 2 4

6 percent ........................... 2 2 3 1

7 percent ........................... 2 ( ) 2 ( ) 2 ( ) 2 ( )

8 percent ........................... 2 2 3 3

9 percent ........................... 1 1 1 1

10 percent ......................... 10 6 11 13

11 percent ......................... 2 3 1 2

12 percent ......................... 6 8 6 4

13 percent ......................... 2 2 2 2

14 percent ......................... 3 2 2 4

15 percent ......................... 32 29 37 32

16 percent ......................... 13 14 10 14

17 percent ......................... 3 3 2 3

17.01 - 17.99 percent ....... 2 ( ) 2 ( ) 2 ( ) 2 ( )

18 percent ......................... 5 5 7 2

19 percent ......................... 2 ( ) 2 ( ) 2 ( ) 2 ( )

20 percent ......................... 2 4 2 1

25 percent or more ........... 2 ( ) 2 ( ) 2 ( ) 2 ( )

Not determinable .............. 2 2 2 2

Specified dollar amount ........ 1 2 () 1 1

Up to the Internal Revenue

Code limit ........................ 10 11 7 11

Not determinable .................. 2 ( ) 2 () - 2 ( )

Average3

Average maximum pretax

contribution (percent of

earnings .............................. 13.7 14.0 13.7 13.5

1 Includes contributions that are not matched by the employer. If

maximum contributions vary, such as by length of service, the highest

possible contribution was tabulated. 2 Less than 0.5 percent. 3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.

Table 151. Savings and thrift plans: Methods of employer

matching contributions, full-time employees, medium and

large private establishments, 1997

Employer matching rates

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100

Specified matching percent1 81 80 80 84

Varies by service .................. 5 6 5 5

Varies by amount of

contribution ..................... 8 11 8 7

Varies by investment choice 2 ( ) 2 ( ) 2 ( ) 2 ( )

Varies by profit level ............. 3 3 5 2

Other ..................................... 2 ( ) 2 ( ) 2 () 1

Not determinable .................. 1 1 2 1

1 Plans where the employer matches a specified percent of employee

contributions. For example, the employer matches 50 percent of employee

earnings up to 6 percent. 2 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
121

Table 152. Savings and thrift plans: Employee contributions by

employer specified matching percentage, full-time employees, medium

and large private establishments, 1997

Employee contribution1 Total2

Specified matching percentage

1 - 49 50 51 - 99 100

Percent

All employees

Total3 .................................... 100 23 47 13 15

Under 2 percent ................ 2 1 4 () - 4 ( )

2 percent ........................... 3 1 1 - 1

3 percent ........................... 101215

4 percent ........................... 16 3 10 4 () 2

5 percent ........................... 10 2 4 4 () 2

6 percent ........................... 48 11 25 8 3

Greater than 6 percent ..... 103331

Professional, technical, and

related

Total3 .................................... 100 23 48 14 12

Under 2 percent ................ 1 1 - - -

2 percent ........................... 5 2 1 - 4 ( )

3 percent ........................... 7 1 2 4 () 4

4 percent ........................... 131713

5 percent ........................... 8 1 6 4 () 2

6 percent ........................... 50 12 27 8 2

Greater than 6 percent ..... 154551

Clerical and sales

Total3 .................................... 100 19 42 16 19

Under 2 percent ................ 1 1 4 () - -

2 percent ........................... 3 1 2 - 1

3 percent ........................... 12 1 3 - 9

4 percent ........................... 13 4 7 4 () 2

5 percent ........................... 9 3 4 4 () 2

6 percent ........................... 54 8 25 14 4

Greater than 6 percent ..... 6122 4 ( )

Blue collar and service

Total3 .................................... 100 27 49 9 14

Under 2 percent ................ 3 2 4 () - 1

2 percent ........................... 2 1 4 () - 4 ( )

3 percent ........................... 102224

4 percent ........................... 22 4 15 1 2

5 percent ........................... 114313

6 percent ........................... 42 11 24 4 3

Greater than 6 percent ..... 94321

1 Employee may contribute a percent of salary up to a specified maximum; ceilings

on contributions to be matched by employers generally are lower. 2 Total includes workers with an employer matching percentage of greater than 100

percent, but those matching percentages are not presented separately. 3 Includes other employee contribution rates not shown separately. 4 Less than 0.5 percent.

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

applicable, dash indicates no employees in this category.
122

Table 153. Savings and thrift plans: Discretionary

profit-sharing contributions,1 full-time employees, medium and

large private establishments, 1997

Item

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100

With discretionary

profit-sharing

contributions ................... 17 14 21 17

No discretionary

profit-sharing

contributions ................... 78 82 75 77

Not determinable .................. 5 4 5 6

1 Employer contributions in addition to matching funds, provided at

employer discretion based on profitability.

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

Where applicable, dash indicates no employees in this category.
123

Table 154. Savings and thrift plans: Investment choices, full-time employees, medium and

large private establishments, 1997

Investment choices

All employees

Professional,

technical, and

related

employees

Clerical and

sales

employees

Blue-collar and

service

employees

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Number (in thousands) with

savings and thrift plans ....... 14,882 14,882 5,262 5,262 4,113 4,113 5,507 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100 100 100 100 100

Employee permitted to

choose investments ........ 87 65 89 68 87 62 85 65

Two choices ...................... 22112244

Three choices ................... 11 8 8 6 14 9 12 8

Four choices ..................... 21 14 19 12 23 12 20 18

Five choices ...................... 14 10 16 13 12 10 14 8

Six choices ....................... 85979564

Seven choices .................. 8 6 10 7 7685

Eight choices .................... 75776674

Nine choices ..................... 22222222

Ten choices ...................... 32622122

More than ten choices ...... 54774433

Not determinable .............. 66446689

Employee not permitted to

choose investments ........ 4 25 5 25 3 30 4 21

Not determinable .................. 9 10 6 7 9 8 11 13

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

employees in this category.
124

Table 155. Savings and thrift plans: Types of investments allowed in plans permitting employees to choose investments,

full-time employees, medium and large private establishments, 1997

Investment

All employees

Professional,

technical, and

related employees

Clerical and sales

employees

Blue-collar and

service employees

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Number (in thousands) with

savings and thrift plans ....... 14,882 14,882 5,262 5,262 4,113 4,113 5,507 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100 100 100 100 100

Total with employee

investment choice

allowed ........................... 87 65 89 68 87 62 85 65

Company stock ................. 42 25 47 29 43 24 36 20

Common stock fund .......... 69 50 73 53 66 47 66 50

Long-term interest bearing

securities .................... 59 43 65 47 58 40 54 42

Diversified stock and bond

fund ............................. 54 40 56 41 60 41 48 38

Government securities ...... 20 15 24 19 17 13 17 12

Guaranteed investment

contracts ..................... 20 15 21 18 19 13 21 14

Money market funds ......... 35 28 40 31 31 25 35 28

Certificates of deposit ....... 3 2 2 2 4 3 3 3

Other1 ............................... 8 6 9 8 8 5 7 5

Deteriminable by trustee ... 1 2 ( ) 2 () - 1 - 1 2 ( )

Not determinable .............. 9 8 9 9 7 6 10 10

Investment choice not

allowed ........................... 4 25 5 25 3 30 4 21

Investment choice not

determinable ................... 9 10 6 7 9 8 11 13

1 Includes purchase of life insurance, annuities, real estate,

mortgage, and deposits in credit unions or savings accounts. 2 Less than 0.5 percent.

NOTE: Sums of individual items do not equal totals because employees

are often offered a number of investment choices. Where applicable,

dash indicates no employees in this category.
125

Table 156. Savings and thrift plans: Method of allocating contributions to investment options, full-time employees,

medium and large private establishments, 1997

Item

All employees

Professional,

technical, and

related employees

Clerical and sales

employees

Blue-collar and

service employees

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Number (in thousands) with

savings and thrift plans ...... 14,882 14,882 5,262 5,262 4,113 4,113 5,507 5,507

Percent

Total with savings and thrift

plans .................................. 100 100 100 100 100 100 100 100

Total with employee

investment choice

allowed ........................... 87 65 89 68 87 62 85 65

Any multiple ...................... 42 34 45 36 39 30 41 35

Specified multiples ............ 37 23 37 25 41 24 34 22

Other ................................. 1 1 1 ( ) 1 () 1 1 1 ( ) 1 ( )

Not determinable .............. 8 7 7 6 7 6 10 9

Investment choice not

allowed ........................... 4 25 5 25 3 30 4 21

Investment choice not

determinable ................... 9 10 6 7 9 8 11 13

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals. Where applicable, dash indicates no employees in this category.
126

Table 157. Savings and thrift plans: Frequency of investment changes, full-time employees, medium and large private

establishments, 1997

Item

All employees

Professional,

technical, and

related employees

Clerical and sales

employees

Blue-collar and

service employees

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Number (in thousands) with

savings and thrift plans ....... 14,882 14,882 5,262 5,262 4,113 4,113 5,507 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100 100 100 100 100

Total with employee

investment choice

allowed ........................... 87 65 89 68 87 62 85 65

At any time ........................ 47 36 55 43 46 33 41 31

Specified number of times

per year ...................... 32 22 27 19 35 23 34 25

One ............................... 2 1 1 1 1 1 2 1

Two ............................... 6 6 5 5 5 4 7 8

Three ............................ 1 ( ) 1 () 1 1 - - 1 ( ) 1 ( )

Four .............................. 16 11 13 8 17 10 19 13

Five or more ................. 8 4 7 4 13 8 6 3

Other ................................. 1 1 2 1 1 1 1 ( ) 1 ( )

Never ................................ 1 () - 1 () - 1 () - - -

Not determinable .............. 7 6 5 4 5 4 10 10

Investment choice not

allowed ........................... 4 25 5 25 3 30 4 21

Investment choice not

determinable ................... 9 10 6 7 9 8 11 13

1 Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal

totals. Where applicable, dash indicates no employees in this category.
127

Table 158. Savings and thrift plans: Withdrawal availability,

full-time employees, medium and large private establishments,

1997

Withdrawal provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100

Withdrawals permitted .......... 52 50 57 51

Any reason ....................... 18 20 18 15

Hardship reasons only1 .... 35 30 39 36

Withdrawals not permitted .... 39 44 33 38

Not determinable .................. 9 7 9 11

1 Hardship reasons may include death or illness of a family member,

education expenses, sudden uninsured losses, or purchase of a primary

residence.

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

Where applicable, dash indicates no employees in this category.

Table 159. Savings and thrift plans: Withdrawal requirements

in plans permitting withdrawals, full-time employees, medium

and large private establishments, 1997

Item

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans with

withdrawals permitted ......... 7,792 2,611 2,357 2,824

Percent

Total with savings and thrift

plans with withdrawals

permitted ............................. 100 100 100 100

At any time ............................ 55 52 62 51

After meeting an age and/or

service requirement ........ 8 12 8 6

Once per time period ............ 21 23 21 21

Other limit ............................. 9 8 3 14

Not determinable .................. 7 6 6 9

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

Where applicable, dash indicates no employees in this category.

Table 160. Savings and thrift plans: Maximum amount that

may be withdrawn in plans permitting withdrawals, full-time

employees, medium and large private establishments, 1997

Maximum amount of

withdrawal

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans with

withdrawals permitted ......... 7,792 2,611 2,357 2,824

Percent

Total with savings and thrift

plans with withdrawals

permitted ............................. 100 100 100 100

Full account balance ............. 63 59 73 59

Partial account balance ........ 32 35 22 38

Not determinable .................. 5 6 6 3

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

Where applicable, dash indicates no employees in this category.

Table 161. Savings and thrift plans: Penalties imposed upon

withdrawal of funds in plans permitting withdrawals, full-time

employees, medium and large private establishments, 1997

Penalties for withdrawals

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans with

withdrawals permitted ......... 7,792 2,611 2,357 2,824

Percent

Total with savings and thrift

plans with withdrawals

permitted ............................. 100 100 100 100

With penalty .......................... 47 44 41 54

Employer contributions

suspended .................. 10 16 9 7

All contributions

suspended .................. 29 21 26 40

Other ................................. 7 7 6 7

No penalty ............................ 45 50 53 33

Not determinable .................. 8 6 6 12

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

Where applicable, dash indicates no employees in this category.
128

Table 162. Savings and thrift plans: Loan availability, full-time

employees, medium and large private establishments, 1997

Loan availability

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100

Loans permitted .................... 54 56 57 48

Any reason ....................... 48 52 50 43

Hardship reasons only1 .... 6 5 7 5

Loans not permitted .............. 37 36 33 41

Not determinable .................. 9 7 10 11

1 Hardship reasons may include death or illness of a family member,

education expenses, sudden uninsured losses, or purchase of a primary

residence.

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

Where applicable, dash indicates no employees in this category.

Table 163. Savings and thrift plans: Loan requirements in

plans permitting loans, full-time employees, medium and large

private establishments, 1997

Loan provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans with

loans permitted ................... 7,963 2,969 2,351 2,644

Percent

Total with savings and thrift

plans with loans permitted .. 100 100 100 100

At any time ............................ 58 60 60 54

After meeting an age/or

service requirement ........ 2 1 4 2

Once per time period ............ 36 35 34 38

Other limit ............................. 1 1 1 2

Not determinable .................. 2 2 2 3

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

Where applicable, dash indicates no employees in this category.

Table 164. Savings and thrift plans: Maximum amount that

may be borrowed in plans permitting loans, full-time

employees, medium and large private establishments, 1997

Loan provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans with

loans permitted ................... 7,963 2,969 2,351 2,644

Percent

Total with savings and thrift

plans with loans permitted .. 100 100 100 100

Full account balance

available ......................... 1 1 2 1 ( )

Partial account balance

available ......................... 97 96 95 98

Not determinable .................. 3 3 3 2

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.

Table 165. Savings and thrift plans: Interest provisions in

plans permitting loans, full-time employees, medium and large

private establishments, 1997

Loan provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans with

loans permitted ................... 7,963 2,969 2,351 2,644

Percent

Total with savings and thrift

plans with loans permitted .. 100 100 100 100

Fixed percent ........................ 1 ( ) 1 ( ) 1 ( ) 1 ( )

Tied to other rates ................ 69 67 73 68

Varies ................................... 1 ( ) 1 ( ) 1 ( ) 1 ( )

At the discretion of plan

administrators ................. 15 16 14 15

Other ..................................... 1 ( ) 1 ( ) 1 ( ) 1 ( )

Not determinable .................. 15 17 13 16

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
129

Table 166. Savings and thrift plans: Repayment provisions in

plans permitting loans, full-time employees, medium and large

private establishments, 1997

Repayment provisions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans with

loans permitted ................... 7,963 2,969 2,351 2,644

Percent

Total with savings and thrift

plans with loans permitted .. 100 100 100 100

Repayment after specified

period .............................. 80 79 85 76

For purchase of a home1 .. 48 49 46 50

Less than 15 years ....... 17 16 17 18

15 years ........................ 17 18 17 15

20 years ........................ 3 2 4 3

Greater than 20 and

less than 25 years .. 2 ( ) 2 () - 2 ( )

25 years ........................ 5 7 3 4

Greater than 25 years ... 1 2 1 1

Not determinable .......... 5 4 4 8

For any reason ................. 32 30 39 26

Less than 5 years ......... 11 13 15 4

5 years .......................... 21 17 25 22

Greater than 5 years

and less than 10

years ....................... 2 ( ) 2 () - 2 ( )

At discretion of plan

administrators ................. 2 1 2 2

Other ..................................... 3 5 1 1

Not determinable .................. 16 15 11 20

1 Plan specifies longer repayment period for purchase of a home than for

other reasons. 2 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.

Table 167. Savings and thrift plans: Methods of distribution,

full-time employees, medium and large private establishments,

1997

Methods of distribution1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100

Lump sum ............................. 91 93 89 90

Annuity .................................. 25 25 21 27

Installments .......................... 41 40 43 40

Other ..................................... 3 3 3 3

Not determinable .................. 10 11 7 11

1 Sums of individual items may exceed totals because plans frequently

permit more than one distribution option.

NOTE: Where applicable, dash indicates no employees in this category.
130

Table 168. Savings and thrift plans: Service requirements1,

full-time employees, medium and large private establishments,

1997

Eligibility requirements2

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with savings and thrift

plans ................................... 100 100 100 100

With minimum service

requirement .................... 75 70 78 79

3 months or less ................... 12 13 7 15

4 - 5 months .......................... 3( ) 3( ) 3() -

6 months ............................... 10 10 9 11

1 year .................................... 52 44 61 52

2 years .................................. 2 2 1 1

3 years .................................. 3( ) 3( ) 3() -

No minimum service

requirement .................... 19 24 16 16

Not determinable .................. 6 6 5 6

Average4

Average service requirement (in

months) ............................... 10.0 9.8 10.7 9.6

1 In many of these plans, there is also an age requirement. For example,

some plans have participation requirements of age 21 and 12 months of

service. This table’s eligibility requirements are based on when the employee

can first join the plan, not when the employer first begins contributing. In past

surveys the eligibility requirements were based on when the employer first

contributes to the plan. Thus this table is not strictly comparable to the same

table from past surveys. 2 If a plan had alternate eligibility requirements, one of which was service

only, the service only requirement was tabulated. 3 Less than 0.5 percent. 4 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.

Table 169. Savings and thrift plans: Vesting provisions,

full-time employees, medium and large private establishments,

1997

Vesting provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

savings and thrift plans ....... 14,882 5,262 4,113 5,507

Percent

Total with with savings and thrift

plans ................................... 100 100 100 100

Immediate full vesting ........... 29 34 33 22

Cliff vesting1 ......................... 30 33 22 33

With full vesting after:

1 - 2 years ..................... 3 3 2 4

3 - 4 years ..................... 6 5 7 6

5 years .......................... 21 25 13 22

More than 5 years ......... 2 ( ) 2 ( ) 2 () 1

Graduated vesting3 ............... 33 29 37 35

With full vesting after:

4 years or less .............. 10 7 10 13

5 years .......................... 15 13 19 13

6 years .......................... 6 7 3 8

7 years .......................... 3 2 4 2

Class year vesting4 ............... 2 2 2 4

With each class vested

after:

1 year ............................ 1 2 ( ) 2 () 3

2 years .......................... 2 ( ) 2 () 1 2 ( )

3 years .......................... 1 1 2 () 1

Other ..................................... 2 ( ) 2 () 1 2 ( )

Not determinable .................. 5 3 5 6

1 Under cliff vesting, an employee is not entitled to any benefits until

satisfying requirements for 100 percent vesting. 2 Less than 0.5 percent. 3 Under graduated vesting, an employee’s rights to benefits increase

 with length of service, eventually reaching 100 percent. 4 Under class year vesting, employee contributions for a given year

(class) become nonforfeitable after meeting vesting requirements. 

Subsequent contributions must meet similar requirements.

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

Where applicable, dash indicates no employees in this category.
131

Table 170. Deferred profit-sharing plans: Employer

contributions, full-time employees, medium and large private

establishments, 1997

Employer contributions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

deferred profit-sharing plans 5,084 1,562 1,351 2,171

Percent

Total with deferred

profit-sharing plans ............. 100 100 100 100

Based on stated formula ....... 62 61 50 71

Fixed percent of profits ..... 17 26 19 10

Based on unit profitability 4 8 4 1

Fixed percent of profits in

excess of reserved

amount ........................ 3 2 2 4

Sliding percentage based

on profits, sales, or

return on assets .......... 27 12 12 47

Other stated formula ......... 11 13 12 9

No predetermined formula .... 38 39 50 29

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

Where applicable, dash indicates no employees in this category.

Table 171. Deferred profit-sharing plans: Allocation of

employer contributions to individual employee accounts,

full-time employees, medium and large private establishments,

1997

Allocation of employer

contributions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

deferred profit-sharing plans 5,084 1,562 1,351 2,171

Percent

Total with deferred

profit-sharing plans ............. 100 100 100 100

Equally to all participants ...... 18 7 8 32

Proportional to earnings ....... 49 61 51 40

Proportional to employee

contributions ................... 15 13 17 15

Based on earnings and

service ............................ 8 8 5 10

Based on earnings and unit

performance ................... 2 5 1 ( ) 1 ( )

Other allocation formula ....... 2 1 () 6 1 ( )

Allocation formula not

available ......................... 6 6 13 2

Employee permitted to

receive part of allocation

in cash ............................ 23 7 13 41

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
132

Table 172. Deferred profit-sharing plans: Selected plan

features, full-time employees, medium and large private

establishments, 1997

Item

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

deferred profit sharing plans 5,084 1,562 1,351 2,171

Percent

Total with deferred profit

sharing plans ...................... 100 100 100 100

Loans permitted .................... 32 43 45 16

Withdrawals permitted .......... 26 24 29 25

Employee contributions

required .......................... 7 9 9 4

Employee contributions not

required but allowed ....... 24 23 27 23

Pretax contributions allowed 26 24 33 23

Employee permitted to

choose investments ........ 64 60 58 70

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

Where applicable, dash indicates no employees in this category.

Table 173. Deferred profit-sharing: Service requirements,1

full-time employees, medium and large private establishments,

1997

Eligibility requirements2

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

deferred profit-sharing plans 5,084 1,562 1,351 2,171

Percent

Total with deferred

profit-sharing plans ............. 100 100 100 100

With minimum service

requirement .................... 69 84 68 58

3 months or less ................... 5 4 4 5

4 - 5 months .......................... 3 ( ) 3 () 1 3 ( )

6 months ............................... 8 13 9 4

1 year .................................... 54 65 55 47

2 years .................................. 1 1 3 () 2

No minimum service

requirement .................... 27 14 24 39

Not determinable .................. 4 2 8 3

Average4

Average service requirement (in

months) ............................... 10.7 10.5 10.7 11.0

1 In many of these plans, there is also an age requirement. For example,

some plans have participation requirements of age 21 and 12 months of

service. This table’s eligibility requirements are based on when the employee

can first join the plan, not when the employer first begins contributing. In past

surveys the eligibility requirements were based on when the employer first

contributes to the plan. Thus this table is not strictly comparable to the same

table from past surveys. 2 If a plan had alternate eligibility requirements, one of which was service

only, the service only requirement was tabulated. 3 Less than 0.5 percent. 4 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.
133

Table 174. Deferred profit-sharing plans: Vesting provisions,

full-time employees, medium and large private establishments,

1997

Vesting provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number with deferred

profit-sharing plans ............. 5,084 1,562 1,351 2,171

Percent

Total with deferred

profit-sharing plans ............. 100 100 100 100

Immediate full vesting ........... 29 24 35 28

Cliff vesting1 ......................... 32 22 25 45

With full vesting after:

3 - 4 years ..................... 4 8 4 2 ( )

5 years .......................... 28 14 18 44

More than 5 years ......... 1 - 3 -

Graduated vesting3 ............... 35 51 37 22

With full vesting after:

4 years or less .............. 2 ( ) 2 ( ) 2 ( ) 2 ( )

5 years .......................... 4 7 5 1

6 years .......................... 15 23 17 9

7 years .......................... 16 21 16 12

Not determinable .................. 4 3 3 5

1 Under cliff vesting, an employee is not entitled to any benefits until

satisfying requirements for 100 percent vesting. 2 Less than 0.5 percent. 3 Under graduated vesting, an employee’s rights to benefits increase

 with length of service, eventually reaching 100 percent.

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

Where applicable, dash indicates no employees in this category.

Table 175. 401(k) salary reduction plans: Maximum pretax

employee contributions,1 full-time employees, medium and

large private establishments, 1997

Maximum pretax contributions

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

401(k) salary reduction

plans ................................... 16,756 5,927 4,573 6,255

Percent

Total with 401(k) pretax salary

reduction plans ................... 100 100 100 100

Percent of employee

earnings .......................... 87 85 91 86

5 percent or less ............... 4 4 3 4

6 percent ........................... 1 2 2 2 ( )

7 percent ........................... 2 ( ) 2 ( ) 2 () 1

8 percent ........................... 3 2 3 4

9 percent ........................... 1 1 1 2 ( )

10 percent ......................... 11 7 12 14

11 percent ......................... 2 3 1 2

12 percent ......................... 6 7 5 4

13 percent ......................... 3 3 3 2

13.01 - 13.99 percent ....... 2 ( ) 2 () - 2 ( )

14 percent ......................... 2 2 2 3

15 percent ......................... 31 28 35 30

16 percent ......................... 11 12 9 12

16.01 - 16.99 percent ....... 2 () - 2 ( ) 2 ( )

17 percent ......................... 3 4 4 3

17.01 - 17.99 percent ....... 2 ( ) 2 ( ) 2 ( ) 2 ( )

18 percent ......................... 4 5 6 2

19 percent ......................... 2 ( ) 2 ( ) 2 ( ) 2 ( )

20 percent ......................... 3 4 2 2

25 percent or more ........... 2 ( ) 2 ( ) 2 ( ) 2 ( )

Specified dollar amount ........ 1 2 () 1 1

Up to the Internal Revenue

Code limit ........................ 12 14 9 13

Not determinable .................. 2 ( ) 2 ( ) 2 ( ) 2 ( )

Average3

Average maximum pretax

contribution (percent of

earnings) ............................. 13.3 13.6 13.4 13.1

1 Includes contributions that are not matched by the employer. If

maximum contributions vary, such as by length of service, the highest

possible contribution was tabulated. 2 Less than 0.5 percent. 3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.
134

Table 176. 401(k) salary reduction plans: Service

requirements,1 full-time employees, medium and large private

establishments, 1997

Eligibility requirements2

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

401(k) salary reduction

plans ................................... 16,756 5,927 4,573 6,255

Percent

Total with 401(k) salary

reduction plans ................... 100 100 100 100

With minimum service

requirement .................... 76 71 79 80

3 months or less ................... 12 13 7 14

4 - 5 months .......................... 3 ( ) 3 ( ) 3 () -

6 months ............................... 9 9 8 10

1 year .................................... 53 45 62 54

2 years .................................. 3 4 2 2

3 years .................................. 3 ( ) 3 ( ) 3 () -

No minimum service

requirement .................... 18 23 16 15

Not determinable .................. 5 6 5 5

Average4

Average service requirement (in

months) ............................... 10.4 10.3 10.9 10.0

1 In many of these plans, there is also an age requirement. For example,

some plans have participation requirements of age 21 and 12 months of

service. This table’s eligibility requirements are based on when the employee

can first join the plan, not when the employer first begins contributing. In past

surveys the eligibility requirements were based on when the employer first

contributes to the plan. Thus this table is not strictly comparable to the same

table from past surveys. 2 If a plan had alternate eligibility requirements, one of which was service

only, the service only requirement was tabulated. 3 Less than 0.5 percent. 4 The averages are presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category.
135

Table 177. 401(k) salary reduction plans: Investment choices, full-time employees, medium and large private

establishments, 1997

Investment choices for

employer contributions

All employees

Professional,

technical, and

related employees

Clerical and sales

employees

Blue-collar and

service employees

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Employee

contributions

Employer

contributions

Number (in thousands) with

401(k) salary reduction

plans ................................... 16,756 16,756 5,927 5,927 4,573 4,573 6,255 6,255

Percent

Total with 401(k) salary

reduction plans ................... 100 100 100 100 100 100 100 100

Employee permitted to

choose investments ........ 86 65 88 67 87 61 83 65

Two choices ...................... 3 2 1 1 2 1 4 4

Three choices ................... 11 8 9 7 15 10 11 8

Four choices ..................... 21 14 19 12 22 12 22 19

Five choices ...................... 15 11 17 15 13 10 13 8

Six choices ....................... 8 6 9 7 10 6 7 5

Seven choices .................. 8 6 9 6 7 6 7 4

Eight choices .................... 6 5 6 6 6 6 6 3

Nine choices ..................... 2 2 2 2 2 1 1 1

Ten choices ...................... 3 2 5 2 1 1 2 2

More than ten choices ...... 4 3 6 6 3 3 2 2

Not determinable .............. 6 6 4 4 5 5 8 9

Employee not permitted to

choose investments ........ 6 27 7 27 5 32 6 23

Not determinable .................. 8 8 5 6 8 7 10 12

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

 
136

Table 178. 401(k) salary reduction plans: Vesting provisions,

full-time employees, medium and large private establishments,

1997

Vesting provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

401(k) salary reduction

plans ................................... 16,756 5,927 4,573 6,255

Percent

Total with 401(k) salary

reduction plans ................... 100 100 100 100

Immediate full vesting ........... 34 38 38 26

Cliff vesting1 ......................... 27 29 20 31

With full vesting after:

1 -2 years ...................... 3 2 2 3

3 - 4 years ..................... 5 4 6 6

5 years .......................... 19 23 12 21

More than 5 years ......... 2 ( ) 2 ( ) 2 () 1

Graduated vesting3 ............... 32 28 35 35

With full vesting after:

4 years or less .............. 11 7 11 14

5 years .......................... 13 12 17 11

6 years .......................... 6 7 3 7

7 years .......................... 3 3 4 2

Class year vesting4 ............... 2 1 1 3

With each class vested

after:

1 year ............................ 1 2 ( ) 2 () 2

2 years .......................... 2 ( ) 2 () 1 2 ( )

3 years .......................... 1 1 2 () 1

Other ..................................... 2 ( ) 2 () 1 2 ( )

Not determinable .................. 4 2 4 5

1 Under cliff vesting, an employee is not entitled to any benefits until

satisfying requirements for 100 percent vesting. 2 Less than 0.5 percent. 3 Under graduated vesting, an employee’s rights to benefits increase

 with length of service, eventually reaching 100 percent. 4 Under class year vesting, employee contributions for a given year

(class) become nonforfeitable after meeting vesting requirements. 

Subsequent contributions must meet similar requirements.

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

Where applicable, dash indicates no employees in this category.

Table 179. 401(k) salary reduction plans: Transfer and

rollover provisions,1 full-time employees, medium and large

private establishments, 1997

Item

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

401(k) salary reduction

plans ................................... 16,756 5,927 4,573 6,255

Percent

Total with 401(k) salary

reduction plans ................... 100 100 100 100

Transfers/rollovers allowed ... 52 50 57 50

Transfers/rollovers not

allowed ........................... 39 44 34 38

Not determinable .................. 9 6 9 12

1 Relates to the allowance of transfers/rollovers of contributions and

earnings from the previous employer’s plan.

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

Where applicable, dash indicates no employees in this category.

Table 180. 401(k) salary reduction plans: Withdrawal

availability, full-time employees, medium and large private

establishments, 1997

Withdrawal provision

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

401(k) salary reduction

plans ................................... 16,756 5,927 4,573 6,255

Percent

Total with 401(k) salary

reduction plans ................... 100 100 100 100

Withdrawals permitted .......... 50 47 55 49

Any reason ....................... 17 19 18 14

Hardship reasons only1 .... 33 28 37 35

Withdrawals not permitted .... 42 46 37 43

Not determinable .................. 8 7 8 9

1 Hardship reasons may include death or illness of a family member,

education expenses, sudden uninsured losses, or purchase of a primary

residence.

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

Where applicable, dash indicates no employees in this category.
137

Table 181. 401(k) salary reduction plans: Loan availability,

full-time employees, medium and large private establishments,

1997

Loan availability

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

401(k) salary reduction

plans ................................... 16,756 5,927 4,573 6,255

Percent

Total with 401(k) salary

reduction plans ................... 100 100 100 100

Loans permitted .................... 51 53 56 47

Any reason ....................... 45 49 47 41

Hardship reasons only1 .... 6 5 8 6

Loans not permitted .............. 40 38 36 44

Not determinable .................. 9 8 9 9

1 Hardship reasons may include death or illness of a family member,

education expenses, sudden uninsured losses, or purchase of a primary

residence.

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

Where applicable, dash indicates no employees in this category.

Table 182. 401(k) salary reduction plans: Methods of

distribution, full-time employees, medium and large private

establishments, 1997

Methods of distribution1

All

employees

Professional,

technical,

and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

401(k) salary reduction

plans ................................... 16,756 5,927 4,573 6,255

Percent

Total with 401(k) salary

reduction plans ................... 100 100 100 100

Lump sum ............................. 91 93 90 91

Annuity .................................. 27 27 23 30

Installments .......................... 41 41 43 40

Other ..................................... 6 7 4 6

Not determinable .................. 8 6 9 8

1 Sums of individual items may exceed totals because plans frequently

permit more than one distribution option.

NOTE: Where applicable, dash indicates no employees in this category.
138

Chapter 8.

Flexible Benefits Plans

and Reimbursement Accounts

Employers have traditionally offered their workers a

variety of benefits, such as health benefits, life

insurance, and paid leave. Starting in the 1980s, new

approaches to providing benefits emerged, including giving

employees a choice of benefits and plan types. Commonly

known as “cafeteria plans,” they allow employees to design

individually tailored benefit packages.15 EBS collects data

on two types of arrangements: Flexible benefits plans and

reimbursement accounts. Definitions of major plan types, key

provisions, and related terms follow.

Internal Revenue Code section 125. This section of the

Internal Revenue Code governs flexible benefits plans,

reimbursement accounts, and premium conversion plans.

Contributions must be made through a salary reduction

agreement, and the plan must meet the nondiscrimination,

election, and enrollment requirements specified under the

Code.

Flexible Benefits Plans

Under flexible benefits plans, employers provide each worker

with an amount of “benefits credits.” The employee uses these

credits to purchase various benefits and plans to create a

desired benefits package. Flexible benefits plans usually

provide several options, including various levels of life

insurance, separate dental choices, participation in fee-forservice medical plans (with varying deductibles and out-ofpocket maximums) or in alternative medical plans (such as

health maintenance organizations or preferred provider

organizations), among other options. If the benefits credits

are not sufficient to pay for the desired benefit package, the

employee may have the option to fund the difference with

pretax contributions. Similarly, an employee who does not

use all of his or her credits may receive cash in lieu of benefits

or may deposit the unused credits into a reimbursement

account. However, participants are often required to purchase

some minimum level of coverage, such as a basic level of life

and health insurance coverage.

Benefits credits. This is a fixed dollar amount provided to

each worker to purchase various benefits, or an amount that

varies among workers according to earnings, length of service, size of family, or other characteristics.

Reimbursement Accounts

Reimbursement accounts, also known as “flexible spending

accounts,” are funded by employee pretax contributions to

pay for health care deductibles, coinsurances, cost of services not covered by a health care plan, child-care expenses,

and the nonmedical expenses that allow a person to work

while ensuring a qualified dependent’s well-being. Accounts

may be partially funded by employers. Usually reimbursement accounts are a part of a flexible benefits plan, but can

also be stand-alone. The following types of reimbursement

accounts are common:

Account types

Health care accounts. Employees with health care reimbursement accounts may allocate pre-tax funds, up to a set limit,

for either health care deductibles, coinsurances, or the costs

of services not covered by their medical care plan, such as

dental expenses and vision exams.

Dependent care accounts. Employees with dependent care

reimbursement accounts may allocate pre-tax funds, up to a

set limit, for childcare, elder care, or services to the disabled.

Premium Conversion Plans

Premium conversion plans allow medical plan participants

to pay the required plan premium with pretax dollars; they

have no other function. Unlike reimbursement accounts, premium conversion plan participants do not “deposit” pretax

money for the purpose of being reimbursed in the future.

Rather, their pretax contributions go directly to pay for plan

premiums.

 15 Individual benefit plans offered through a flexible benefits plan arrangement are analyzed and included in the tabulations for specific benefit plans

— Endnotes —

and in the tables found in this bulletin.
139

Table 183. Stand-alone reimbursement accounts: Expenses covered,

full-time employees, medium and large private establishments, 1997

Expenses

All

employees

Professional,

technical, and

related

employees

Clerical

and

sales

employees

Bluecollar

and

service

employees

Number (in thousands) with

reimbursement account ...... 12,185 4,835 3,355 3,995

Percent

Total with reimbursement

account1 ............................. 100 100 100 100

Expenses known .................. 99 99 99 100

Health premiums .............. 71 70 69 73

Other health expenses ..... 88 87 88 91

Dependent care expenses 91 90 93 91

Legal expenses ................ 2 ( ) 2 () 1 2 ( )

Other premiums ................ 12 13 11 12

Other ................................. 4 6 2 2

Expense not determinable .... 1 1 1 2 ( )

1 Total is less than the sum of individual items because many plans allow funds to be used

for multiple purposes. 2 Less than 0.5 percent.

NOTE: Where applicable, dash indicates no employees in this category.
140

Chapter 9.

Benefits by Selected Characteristics

This chapter presents data on the frequency of

employee benefits by region, major industry segment,

union status, and part-time employment. Key

definitions are provided below.

Region

The incidence of employee benefits for full-time employees

is presented for four regions: Northeast, South, North Central, and West.

Northeast. Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island,

and Vermont.

South. Alabama, Arkansas, Delaware, District of Columbia,

Florida, Georgia, Kentucky, Louisiana, Maryland,

Mississippi, North Carolina, Oklahoma, South Carolina,

Tennessee, Texas, Virginia, and West Virginia.

North Central. Illinois, Indiana, Iowa, Kansas, Michigan,

Minnesota, Missouri, Nebraska, North Dakota, Ohio, South

Dakota, and Wisconsin.

West. Alaska, Arizona, California, Colorado, Hawaii, Idaho,

Montana, Nevada, New Mexico, Oregon, Utah, Washington,

and Wyoming.

Industry

The incidence of employee benefits for full-time employees

is presented by two major industry divisions: Goods-producing and service producing.

Goods-producing. Included in this sector are the manufacturing, mining, and construction industries.

Service producing. This sector includes the transportation,

communications, electric, gas and sanitary services; wholesale trade; retail trade; finance, insurance, and real estate;

and services industries.

Union Status

Occupations are categorized as union or nonunion at the time

of data collection, based on a number of criteria. These

include: 1) A labor organization must be recognized as the

bargaining agent for workers in the occupation; 2) wage and

salary rates must be determined through collective bargaining

or negotiations; and 3) settlement terms must be embodied

in a signed, mutually binding collective bargaining agreement.

Part-time Employees

Employees are classified as full-time or part-time in accordance with the practices of surveyed establishments.
141

Table 184. Summary: Participation1 in selected employee benefit programs2, full-time employees, by

geographic region, medium and large private establishments, 1997

Benefit Northeast South North Central West

Paid time off:

Holidays .......................................... 91 88 91 85

Vacations ........................................ 96 95 95 95

Personal leave ................................ 32 18 18 13

Funeral leave .................................. 85 75 87 74

Jury duty leave ............................... 91 88 90 75

Military leave ................................... 54 45 52 36

Family leave ................................... 3 3 1 1

Unpaid family leave .......................... 94 95 92 91

Disability benefits3:

Paid sick leave .............................. 65 54 48 59

Short-term disability ...................... 78 49 59 32

Long-term disability insurance ...... 42 44 42 46

Survivor benefits:

Life insurance ................................. 86 88 89 84

Accidental death and

dismemberment ............................ 64 66 71 70

Survivor income benefits ................ 2 3 11 4

Health care benefits:

Medical care ................................... 73 76 78 79

Dental care ..................................... 58 52 62 67

Vision care ...................................... 23 18 28 38

Outpatient prescription drug

coverage ....................................... 69 72 74 78

See footnotes at end of table.
142

Table 184. Summary: Participation1 in selected employee benefit programs2, full-time employees, by

geographic region, medium and large private establishments, 1997 — Continued

Benefit Northeast South North Central West

Retirement income benefits:

All retirement4 ................................. 80 79 78 80

Defined benefit ........................... 56 45 54 46

Defined contribution5 .................. 52 59 54 63

Savings and thrift .................... 36 40 35 46

Deferred profit sharing ............ 9 12 19 12

Employee stock ownership ..... 4 4 3 8

Money purchase pension ....... 10 7 6 8

Stock bonus ............................ 6 () 2 1 1

Other ....................................... 6 ( ) 6 ( ) 6 () 2

Cash or deferred arrangements:

With employer contributions ....... 43 45 46 53

Salary reduction ...................... 42 44 39 52

Savings and thrift ................ 36 38 34 45

Deferred profit sharing ........ 3 4 3 4

Other ................................... 3 1 2 3

Deferral of profit sharing

allocation .............................. 2 1 7 2

No employer contributions .......... 9 7 11 11

1 Only current employees are counted as participants. Participants in insurance and retirement benefits have met minimum

length of service requirements and paid any required employee share of the benefit cost. Participants in all other benefits include

all employees in occupations offered the benefit. 2 Employee benefit programs in this survey almost always include those sponsored by employers, who pay some share of

the cost. Except for unpaid family leave, postretirement medical care and life insurance, dependent life insurance, supplemental

life insurance, some salary reduction plans, benefits for which the employees pay the full cost are excluded from the survey. 3 The definitions for paid sick leave and short-term disability (previously sickness and accident insurance) were changed for

the 1995 survey. Paid sick leave now only includes plans that either specify a maximum number of days per year or unlimited

days. Short-term disability now includes all insured, self-insured, and state-mandated plans available on a per disability basis as

well as the unfunded per disability plans previously reported as sick leave. Sickness and accident insurance, reported in years

prior to the 1995 survey, only included insured, self-insured, and state-mandated plans providing per disability benefits at less

than full pay. 4 Includes defined benefit pension plans and defined contribution retirement plans. The total is less than the sum of the

individual items because many employees participated in both types of plans. 5 The total is less than the sum of the individual items because some employees participated in more than one type of plan. 6 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals. Where applicable, dash indicates that no data were

reported.

(annualized)
143

Table 185. Other benefits: Eligibility for specified benefits, full-time employees, by geographic

region, medium and large private establishments, 1997

(In percent)

Benefit Northeast South North Central West

Income continuation plans:

Severance pay ...................... 49 30 32 38

Supplemental unemployment

benefits ............................... 1 1 13 1

Family benefits:

Employer assistance for child

care ..................................... 10 8 10 11

Employer provided funds .. 6 5 8 5

On-site child care .............. 4 3 2 5

Off-site child care .............. 3 1 1 1

Adoption assistance ............. 12 7 10 14

Long-term care insurance ..... 7 5 9 10

Flexible workplace ................ 2 3 3 1

Health promotion programs:

Wellness programs ............... 39 35 39 32

Employee assistance

programs ............................ 61 60 61 62

Fitness center ....................... 24 15 22 25

Miscellaneous benefits:

Job-related travel accident

insurance ............................ 46 35 48 41

Nonproduction bonuses ........ 43 39 43 42

Subsidized commuting ......... 6 3 3 15

Education assistance:

Job-related ........................ 66 69 69 62

Not job-related .................. 19 22 22 18

Section 125 cafeteria benefits1: 52 57 48 48

Flexible benefit plans ............ 13 13 10 14

Reimbursement plans ........... 33 31 31 32

Premium conversion plans ... 6 13 7 1

1 Includes all types of plans under Internal Revenue Code Section 125. Flexible benefits plans include reimbursement

account features.

NOTE: Because of rounding, sums of individual items may not equal totals.
144

Table 186. Summary: Participation1 in selected employee benefit programs2,

full-time employees in goods-producing industries, medium and large private

establishments, 1997

(In percent)

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Paid time off:

Holidays .......................................... 96 98 100 95

Vacations ........................................ 96 99 99 94

Personal leave ................................ 14 17 26 11

Funeral leave .................................. 85 86 87 84

Jury duty leave ............................... 90 95 91 88

Military leave ................................... 57 76 57 50

Family leave ................................... 1 2 1 1

Unpaid family leave .......................... 95 96 98 94

Disability benefits3:

Paid sick leave ................................ 38 68 66 24

Short-term disability ........................ 71 68 58 74

Long-term disability insurance ........ 37 58 51 28

Survivor benefits:

Life insurance ................................. 91 95 94 90

Accidental death and

dismemberment ............................ 74 74 76 74

Survivor income benefits ................ 9 9 5 9

Health care benefits:

Medical care ................................... 84 82 81 85

Dental care ..................................... 65 74 67 62

Vision care ...................................... 25 31 21 24

Outpatient prescription drug

coverage ....................................... 82 81 80 82

See footnotes at end of table.
145

Table 186. Summary: Participation1 in selected employee benefit programs2,

full-time employees in goods-producing industries, medium and large private

establishments, 1997

(In percent) — Continued

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Retirement income benefits:

All retirement4 ................................. 88 93 84 86

Defined benefit ........................... 62 61 57 63

Defined contribution5 .................. 62 79 62 56

Savings and thrift .................... 43 63 47 35

Deferred profit sharing ............ 16 15 16 16

Employee stock ownership ..... 5 9 3 4

Money purchase pension ....... 6 7 5 5

Stock bonus ............................ 1 6 () 3 1

Other ....................................... 1 2 6 () 1

Cash or deferred arrangements:

With employer contributions ....... 55 71 56 49

Salary reduction ...................... 49 69 54 41

Savings and thrift ................ 43 63 47 35

Deferred profit sharing ........ 4 4 4 3

Other ................................... 3 2 3 3

Deferral of profit sharing

allocation .............................. 6 2 2 8

No employer contributions .......... 9 9 11 8

1 Only current employees are counted as participants. Participants in insurance and retirement

benefits have met minimum length of service requirements and paid any required employee share of

the benefit cost. Participants in all other benefits include all employees in occupations offered the

benefit. 2 Employee benefit programs in this survey almost always include those sponsored by

employers, who pay some share of the cost. Except for unpaid family leave, postretirement medical

care and life insurance, dependent life insurance, supplemental life insurance, some salary

reduction plans, benefits for which the employees pay the full cost are excluded from the survey. 3 The definitions for paid sick leave and short-term disability (previously sickness and accident

insurance) were changed for the 1995 survey. Paid sick leave now only includes plans that either

specify a maximum number of days per year or unlimited days. Short-term disability now includes

all insured, self-insured, and state-mandated plans available on a per disability basis as well as the

unfunded per disability plans previously reported as sick leave. Sickness and accident insurance,

reported in years prior to the 1995 survey, only included insured, self-insured, and state-mandated

plans providing per disability benefits at less than full pay. 4 Includes defined benefit pension plans and defined contribution retirement plans. The total is

less than the sum of the individual items because many employees participated in both types of

plans. 5 The total is less than the sum of the individual items because some employees participated in

more than one type of plan. 6 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals. Where applicable, dash

indicates that no data were reported.
146

Table 187. Other benefits: Eligibility for specified benefits, full-time

employees in goods-producing industries, medium and large private

establishments, 1997

(In percent)

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Income continuation plans:

Severance pay ...................... 40 66 48 31

Supplemental unemployment

benefits ............................... 9 5 2 11

Family benefits:

Employer assistance for child

care ..................................... 7 12 4 6

Employer provided funds .. 7 12 3 5

On-site child care .............. 1 () 2 - -

Off-site child care .............. 1 () 1 1 ( ) 1 ( )

Adoption assistance ............. 12 23 12 9

Long-term care insurance ..... 7 14 9 4

Flexible workplace ................ 2 5 1 1

Health promotion programs:

Wellness programs ............... 46 55 42 43

Employee assistance

programs ............................ 64 77 58 60

Fitness center ....................... 23 40 18 19

Miscellaneous benefits:

Job-related travel accident

insurance ............................ 53 74 55 45

Nonproduction bonuses ........ 46 47 45 46

Subsidized commuting ......... 4 13 4 1

Education assistance:

Job-related ........................ 73 87 71 68

Not job-related .................. 24 27 25 23

Section 125 cafeteria benefits2: 47 72 60 37

Flexible benefit plans ............ 11 21 11 7

Reimbursement plans ........... 29 46 35 23

Premium conversion plans ... 7 4 13 7

1 Less than 0.5 percent. 2 Includes all types of plans under Internal Revenue Code Section 125. Flexible benefits

plans include reimbursement account features.

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

applicable, dash indicates that no data were reported.
147

Table 188. Summary: Participation1 in selected employee benefit programs2,

full-time employees in service-producing industries, medium and large private

establishments, 1997

(In percent)

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Paid time off:

Holidays .......................................... 85 85 90 80

Vacations ........................................ 95 95 97 93

Personal leave ................................ 24 25 34 15

Funeral leave .................................. 78 83 85 67

Jury duty leave ............................... 85 91 88 78

Military leave ................................... 41 53 49 25

Family leave ................................... 2 3 3 1

Unpaid family leave .......................... 92 94 96 87

Disability benefits3:

Paid sick leave ................................ 67 75 74 53

Short-term disability ........................ 46 48 51 40

Long-term disability insurance ........ 47 64 52 29

Survivor benefits:

Life insurance ................................. 85 94 90 72

Accidental death and

dismemberment ............................ 64 68 69 57

Survivor income benefits ................ 3 3 2 3

Health care benefits:

Medical care ................................... 72 78 78 61

Dental care ..................................... 55 59 58 49

Vision care ...................................... 26 27 25 25

Outpatient prescription drug

coverage ....................................... 68 74 76 56

See footnotes at end of table.
148

Table 188. Summary: Participation1 in selected employee benefit programs2,

full-time employees in service-producing industries, medium and large private

establishments, 1997

(In percent) — Continued

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Retirement income benefits:

All retirement4 ................................. 74 87 81 56

Defined benefit ........................... 43 47 48 35

Defined contribution5 .................. 53 66 63 34

Savings and thrift .................... 36 43 44 23

Deferred profit sharing ............ 12 15 15 7

Employee stock ownership ..... 4 5 6 2

Money purchase pension ....... 9 15 6 6

Stock bonus ............................ 2 1 3 1

Other ....................................... 6 ( ) 6 ( ) 6 () 1

Cash or deferred arrangements:

With employer contributions ....... 41 50 50 26

Salary reduction ...................... 40 50 49 25

Savings and thrift ................ 35 42 43 22

Deferred profit sharing ........ 3 3 5 2

Other ................................... 2 4 1 1

Deferral of profit sharing

allocation .............................. 1 1 2 2

No employer contributions .......... 9 13 8 8

1 Only current employees are counted as participants. Participants in insurance and retirement

benefits have met minimum length of service requirements and paid any required employee share of

the benefit cost. Participants in all other benefits include all employees in occupations offered the

benefit. 2 Employee benefit programs in this survey almost always include those sponsored by

employers, who pay some share of the cost. Except for unpaid family leave, postretirement medical

care and life insurance, dependent life insurance, supplemental life insurance, some salary

reduction plans, benefits for which the employees pay the full cost are excluded from the survey. 3 The definitions for paid sick leave and short-term disability (previously sickness and accident

insurance) were changed for the 1995 survey. Paid sick leave now only includes plans that either

specify a maximum number of days per year or unlimited days. Short-term disability now includes

all insured, self-insured, and state-mandated plans available on a per disability basis as well as the

unfunded per disability plans previously reported as sick leave. Sickness and accident insurance,

reported in years prior to the 1995 survey, only included insured, self-insured, and state-mandated

plans providing per disability benefits at less than full pay. 4 Includes defined benefit pension plans and defined contribution retirement plans. The total is

less than the sum of the individual items because many employees participated in both types of

plans. 5 The total is less than the sum of the individual items because some employees participated in

more than one type of plan. 6 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may not equal totals. Where applicable, dash

indicates that no data were reported.
149

Table 189. Other benefits: Eligibility for specified benefits, full-time

employees in service-producing industries, medium and large private

establishments, 1997

(In percent)

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Income continuation plans:

Severance pay ...................... 34 40 43 21

Supplemental unemployment

benefits ............................... 2 1 1 3

Family benefits:

Employer assistance for child

care ..................................... 11 14 11 8

Employer provided funds .. 6 6 7 4

On-site child care .............. 5 7 5 4

Off-site child care .............. 2 3 2 1

Adoption assistance ............. 9 12 12 4

Long-term care insurance ..... 8 9 11 4

Flexible workplace ................ 2 4 3 1 ( )

Health promotion programs:

Wellness programs ............... 31 38 36 21

Employee assistance

programs ............................ 59 74 64 43

Fitness center ....................... 19 27 19 12

Miscellaneous benefits:

Job-related travel accident

insurance ............................ 36 48 44 18

Nonproduction bonuses ........ 39 41 42 33

Subsidized commuting ......... 7 9 8 5

Education assistance:

Job-related ........................ 63 79 68 47

Not job-related .................. 18 24 17 13

Section 125 cafeteria benefits2: 55 70 63 35

Flexible benefit plans ............ 14 19 16 8

Reimbursement plans ........... 33 45 37 20

Premium conversion plans ... 8 5 10 8

1 Less than 0.5 percent. 2 Includes all types of plans under Internal Revenue Code Section 125. Flexible benefits

plans include reimbursement account features.

NOTE: Because of rounding, sums of individual items may not equal totals.
150

Table 190. Summary: Participation1 in selected employee

benefit programs2, by union status, full-time union

employees, medium and large private establishments,

1997(In percent)

Benefit Union

employees

Nonunion

employees

Paid time off:

Holidays .......................................... 91 88

Vacations ........................................ 96 95

Personal leave ................................ 16 21

Funeral leave .................................. 90 78

Jury duty leave ............................... 88 86

Military leave ................................... 42 49

Family leave ................................... 1 2

Unpaid family leave .......................... 93 93

Disability benefits3:

Paid sick leave ................................ 40 60

Short-term disability ........................ 73 50

Long-term disability insurance ........ 24 49

Survivor benefits:

Life insurance ................................. 91 86

Accidental death and

dismemberment ............................ 78 65

Survivor income benefits ................ 13 3

Health care benefits:

Medical care ................................... 86 74

Dental care ..................................... 70 56

Vision care ...................................... 45 20

Outpatient prescription drug

coverage ....................................... 81 71

See footnotes at end of table.

Table 190. Summary: Participation1 in selected employee

benefit programs2, by union status, full-time union

employees, medium and large private establishments,

1997(In percent) — Continued

Benefit Union

employees

Nonunion

employees

Retirement income benefits:

All retirement4 ................................. 90 76

Defined benefit ........................... 79 42

Defined contribution5 .................. 41 61

Savings and thrift .................... 21 44

Deferred profit sharing ............ 13 13

Employee stock ownership ..... 2 5

Money purchase pension ....... 7 8

Stock bonus ............................ 6 () 2

Other ....................................... 6 () 1

Cash or deferred arrangements:

With employer contributions ....... 33 50

Salary reduction ...................... 24 49

Savings and thrift ................ 21 43

Deferred profit sharing ........ 1 4

Other ................................... 2 2

Deferral of profit sharing

allocation .............................. 9 1

No employer contributions .......... 13 8

1 Only current employees are counted as participants. Participants

in insurance and retirement benefits have met minimum length of

service requirements and paid any required employee share of the

benefit cost. Participants in all other benefits include all employees in

occupations offered the benefit. 2 Employee benefit programs in this survey almost always include

those sponsored by employers, who pay some share of the cost. 

Except for unpaid family leave, postretirement medical care and life

insurance, dependent life insurance, supplemental life insurance, some

salary reduction plans, benefits for which the employees pay the full

cost are excluded from the survey. 3 The definitions for paid sick leave and short-term disability

(previously sickness and accident insurance) were changed for the

1995 survey. Paid sick leave now only includes plans that either

specify a maximum number of days per year or unlimited days. 

Short-term disability now includes all insured, self-insured, and

state-mandated plans available on a per disability basis as well as the

unfunded per disability plans previously reported as sick leave. 

Sickness and accident insurance, reported in years prior to the 1995

survey, only included insured, self-insured, and state-mandated plans

providing per disability benefits at less than full pay. 4 Includes defined benefit pension plans and defined contribution

retirement plans. The total is less than the sum of the individual items

because many employees participated in both types of plans. 5 The total is less than the sum of the individual items because

some employees participated in more than one type of plan. 6 Less than 0.5 percent.

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

totals. Where applicable, dash indicates that no data were reported.
151

Table 191. Other benefits: Eligibility for specified benefits, by

union status, full-time employees, medium and large private

establishments, 1997

(In percent)

Benefit Union employees Nonunion

employees

Income continuation plans:

Severance pay ...................... 38 36

Supplemental unemployment

benefits ............................... 16 1

Family benefits:

Employer assistance for child

care ..................................... 7 10

Employer provided funds .. 7 6

On-site child care .............. 1 4

Off-site child care .............. 1 () 2

Adoption assistance ............. 5 12

Long-term care insurance ..... 5 8

Flexible workplace ................ 1 () 3

Health promotion programs:

Wellness programs ............... 37 36

Employee assistance

programs ............................ 61 61

Fitness center ....................... 17 22

Miscellaneous benefits:

Job-related travel accident

insurance ............................ 36 44

Nonproduction bonuses ........ 41 42

Subsidized commuting ......... 1 7

Education assistance:

Job-related ........................ 64 68

Not job-related .................. 26 19

Section 125 cafeteria benefits2: 29 58

Flexible benefit plans ............ 5 15

Reimbursement plans ........... 23 34

Premium conversion plans ... 2 9

1 Less than 0.5 percent. 2 Includes all types of plans under Internal Revenue Code Section 125. 

Flexible benefits plans include reimbursement account features.

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

Where applicable, dash indicates that no data were reported.
152

Table 192. Summary: Participation1 in selected employee benefit programs2,

part-time employees, medium and large private establishments, 1997

(In percent)

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Paid time off:

Holidays .......................................... 40 27 49 37

Vacations ........................................ 44 48 47 42

Personal leave ................................ 9 10 10 7

Funeral leave .................................. 34 40 34 33

Jury duty leave ............................... 37 47 36 35

Military leave ................................... 9 17 10 7

Family leave ................................... 1 3 ( ) 3 () 1

Unpaid family leave .......................... 54 63 53 53

Disability benefits4:

Paid sick leave ................................ 18 27 19 15

Short-term disability ........................ 18 13 16 21

Long-term disability insurance ........ 4 14 3 1

Survivor benefits:

Life insurance ................................. 18 28 19 15

Accidental death and

dismemberment ............................ 13 21 14 11

Survivor income benefits ................ 3 () 1 3 ( ) 3 ( )

Health care benefits:

Medical care ................................... 21 29 20 19

Dental care ..................................... 16 22 17 14

Vision care ...................................... 9 9 9 8

Outpatient prescription drug

coverage ....................................... 20 26 19 18

See footnotes at end of table.
153

Table 192. Summary: Participation1 in selected employee benefit programs2,

part-time employees, medium and large private establishments, 1997

(In percent) — Continued

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Retirement income benefits:

All retirement5 ................................. 34 47 40 26

Defined benefit ........................... 17 23 21 13

Defined contribution6 .................. 23 27 29 17

Savings and thrift .................... 13 19 18 7

Deferred profit sharing ............ 7 3 () 9 8

Employee stock ownership ..... 1 3 () 2 3 ( )

Money purchase pension ....... 3 10 2 2

Stock bonus ............................ 3 () 1 3 () -

Cash or deferred arrangements:

With employer contributions ....... 15 21 23 7

Salary reduction ...................... 15 21 23 7

Savings and thrift ................ 12 19 18 6

Deferred profit sharing ........ 2 3 () 4 1

Other ................................... 1 2 1 3 ( )

No employer contributions .......... 4 8 5 3

1 Only current employees are counted as participants. Participants in insurance and retirement

benefits have met minimum length of service requirements and paid any required employee share of

the benefit cost. Participants in all other benefits include all employees in occupations offered the

benefit. 2 Employee benefit programs in this survey almost always include those sponsored by

employers, who pay some share of the cost. Except for unpaid family leave, postretirement medical

care and life insurance, dependent life insurance, supplemental life insurance, some salary

reduction plans, benefits for which the employees pay the full cost are excluded from the survey. 3 Less than 0.5 percent. 4 The definitions for paid sick leave and short-term disability (previously sickness and accident

insurance) were changed for the 1995 survey. Paid sick leave now only includes plans that either

specify a maximum number of days per year or unlimited days. Short-term disability now includes

all insured, self-insured, and state-mandated plans available on a per disability basis as well as the

unfunded per disability plans previously reported as sick leave. Sickness and accident insurance,

reported in years prior to the 1995 survey, only included insured, self-insured, and state-mandated

plans providing per disability benefits at less than full pay. 5 Includes defined benefit pension plans and defined contribution retirement plans. The total is

less than the sum of the individual items because many employees participated in both types of

plans. 6 The total is less than the sum of the individual items because some employees participated in

more than one type of plan.

NOTE: Because of rounding, sums of individual items may not equal totals. Where applicable, dash

indicates that no data were reported.
154

Table 193. Other benefits: Eligibility for specified benefits, part-time

employees, medium and large private establishments, 1997

(In percent)

Benefit All

employees

Professional,

technical,

and related

employees

Clerical

and sales

employees

Blue-collar

and

service

employees

Income continuation plans:

Severance pay ...................... 10 14 15 5

Supplemental unemployment

benefits ............................... 1 ( ) - 1 ( ) 1 ( )

Family benefits:

Employer assistance for child

care ..................................... 7 28 3 4

Employer provided funds .. 3 6 2 3

On-site child care .............. 5 19 1 3

Off-site child care .............. 1 6 1 1

Adoption assistance ............. 3 4 5 2

Long-term care insurance ..... 3 5 5 1

Flexible workplace ................ 1 4 1 1 ( )

Health promotion programs:

Wellness programs ............... 17 38 20 9

Employee assistance

programs ............................ 36 62 39 25

Fitness center ....................... 11 33 10 5

Miscellaneous benefits:

Job-related travel accident

insurance ............................ 18 18 31 9

Nonproduction bonuses ........ 17 23 17 16

Subsidized commuting ......... 2 6 2 1

Education assistance:

Job-related ........................ 34 66 32 27

Not job-related .................. 6 12 5 6

Section 125 cafeteria benefits2: 15 35 20 6

Flexible benefit plans ............ 3 8 5 1

Reimbursement plans ........... 11 26 13 4

Premium conversion plans ... 1 1 1 1

1 Less than 0.5 percent. 2 Includes all types of plans under Internal Revenue Code Section 125. Flexible benefits

plans include reimbursement account features.

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

applicable, dash indicates that no data were reported.
Appendix A:

Technical Note

Scope of survey

The Employee Benefits Survey—the Bureau of Labor

Statistics’ survey of the incidence and characteristics

of employee benefit plans—is conducted jointly with

the Bureau’s Employment Cost Index (ECI). The portion of

the EBS sample from which these EBS estimates are made

covers all private-sector establishments16 in the United States

employing 100 or more workers at the time of sample

selection.17 All private-sector industries are covered in the

survey with the exception of farms and private households.

The industrial and establishment size coverage of the survey varies on a rotating basis. All surveys cover full-time and

part-time workers in all 50 States and the District of Columbia. In the past, EBS data were collected for small private

establishments (those employing fewer than 100 workers)

and State and local governments of all employment sizes in

even-numbered years. In odd-numbered years, data were

collected for medium and large private establishments (those

employing 100 workers or more). Data on State and local

governments will be published for 1998. Thereafter, the EBS

will be integrated into the National Compensation Program.

The format of the new benefit survey is under development.

Prior to 1990, the industrial coverage, establishment size

coverage, and geographic coverage for the survey were different than the current round of surveys. Surveys conducted

from 1979 to 1986 covered only medium and large private

establishments and excluded most of the service industries.

Establishments employing at least 50, 100, or 250 workers,

depending on the industry, were included. The survey conducted in 1987 consisted of State and local governments with

50 or more employees. The surveys in 1988 and 1989 included all private-sector establishments that employed 100

or more workers. All surveys conducted from 1979 to 1989

excluded part-time employees and establishments in Alaska

and Hawaii.

Data in appendix B indicate the estimated number of fulland part-time employees within the scope of the survey, the

number of responding sample establishments, and the number of sampled (and responding) occupational quotes18 within

those establishments that are actually studied for each major

industry division.

Occupational groups

Narrowly defined occupations selected for study are classified into one of the following three broad occupational groups:

Professional, technical, and related. This group includes professional, technical, executive, administrative, managerial,

and related occupations.

Clerical and sales. Included in this group are clerical, administrative support, and sales occupations.

Blue-collar and service. Precision production, craft, and repair occupations; machine operators and inspectors; transportation and moving occupations; handlers, equipment cleaners, helpers, and laborers; and service occupations make up

this major group.

Exclusions. The survey excludes self-employed persons, proprietors, major stockholders, members of a corporate board

who are not otherwise officers of the corporation, volunteers,

unpaid workers, family members who are paid token wages,

the permanently disabled, partners in unincorporated firms,

and U.S. citizens working overseas.

Benefit areas

BLS requests that establishments provide data for sampled

occupations on work schedules and plan details in the following benefit areas: Paid holidays, paid vacations, paid

personal leave, paid funeral leave, paid military leave, paid

jury-duty leave, paid and unpaid family leave, paid sick leave,

short-term disability benefits, long-term disability insurance,

medical care, dental care, vision care, life insurance, defined

benefit pension plans, defined contribution plans, flexible

benefit plans, and reimbursement accounts.

Data are also collected on the incidence of the following

additional benefits: Severance pay, supplemental unemployment benefits, job-related travel accident insurance, nonproduction cash bonuses, child care, adoption assistance, longterm care insurance, flexible workplace, wellness

programs, fitness centers, job-related and non-job-related educational assistance, employee assistance programs, and subsidized commuting.

Sample design

The Bureau of Labor Statistics is in the process of integrating three compensation surveys—The Employee Benefits

Survey (EBS), the Employment Cost Index (ECI), and the

Occupational Compensation Survey (OCS)—into a single survey with a common sample design and sample of establish155
156

Technical Note

ments, the National Compensation Survey (NCS). During the

first phase of integration, the NCS focused on measures of

occupational earnings. During the next phase, the EBS and

the ECI will be incorporated into the NCS.

This publication is the last survey of medium and large

private establishments appearing in its current format. The

1998 survey will be the last survey to cover benefits in State

and local governments in this format. New benefit incidence

and provision publications are being developed under the

NCS.

Beginning in 1997, the method of selecting samples for

the ECI and EBS changed from an industry-based sample to

an area-based sample. This new sampling methodology is

being phased in over 5 years as the ECI and EBS are integrated into the NCS. The majority of the 1997 EBS sample

was selected using traditional industry-based techniques, as

described below. A small portion of the sample was selected

under the new cross-area, cross-industry

design. Future surveys will be based on the new sample

design.

The State Unemployment Insurance (UI) reports for the

50 States and the District of Columbia comprise the list of

establishments from which the sample is selected (called the

sampling frame). The sample design for this survey and the

Employment Cost Index (ECI) is a 2-stage probability sample

of detailed occupations. The first stage of sample selection is

a probability sample of establishments; the second stage is a

probability sample of occupations within those establishments.

The sample of establishments has traditionally been a subset of the ECI sample that covers establishments having more

than 100 employees at the time of selection. The ECI sample

is replaced approximately every 5 years. Each year during

this cycle, new sample establishments are introduced into the

survey, replacing previously selected sample units.

The sample of establishments is selected by first stratifying

the sampling frame by industry group, and then by region and

establishment employment. The industry groups usually consist of 3-digit Standard Industrial Classification groups, as defined by the Office of Management and Budget.

The number of sample establishments allocated to each

stratum (defined by industry) reflects the ratio of employment in the stratum to employment in all sampling frame

establishments. Thus, a stratum that contains 1 percent of the

total employment within the scope of the survey receives approximately 1 percent of the total sample establishments.

Some industries are sampled at a higher rate than other industries because of publication requirements or highly variable data.

Each sampled establishment within an industry group (stratum) has a probability of selection proportional to its employment. For example, consider two establishments, A and

B, with respective employment of 5,000 and 1,000. Establishment A is five times more likely to be selected than establishment B.

At the beginning of each visit by a Bureau field economist

to sampled establishments, a second-stage probability sample

of occupations is selected. Data are then collected for these

sampled occupations. The number of occupations selected

from an establishment is six or eight, depending on the employment size of the establishment. The probability of an

occupation being selected is proportional to its employment

size within the establishment.

The narrowly defined occupations are based on the Standard Occupational Classification (SOC) system compiled by

the Department of Commerce. These narrowly defined occupations are then classified into the three occupational

groups shown in this bulletin.

Data collection

Bureau field economists visit or contact sampled establishments by telephone to collect data for the survey. To reduce

the reporting burden, respondents are asked to provide documents describing their flexible benefits plans; reimbursement

accounts; defined benefit pensions; defined contribution

plans; medical, dental, and vision care plans; and

insurance plans. BLS analyzes these plans in Washington to

garner the required data on plan provisions. When these booklets were unavailable, a few questions about specific benefit

provisions were asked directly of the employer. Data on paid

leave benefits generally are obtained directly from the employer at the time of the visit.

Data calculation

Tabulations in this bulletin show the percent of all employees who receive specified benefits, such as paid holidays or

medical care, as well as information on the provisions of many

of these benefits. To present provision data, tabulations generally indicate the percent of all employees (participants) receiving a benefit who are covered by specified features. For

example, a tabulation may show the percent of workers with

medical care benefits who are covered by a health maintenance organization.

The majority of tables in the bulletin indicate the percent

of employees covered by a particular benefit plan or provision. Average benefit provisions also are presented, for example, the average number of paid holidays per year. In some

cases, tabulations indicate both the percent of employees with

a given provision and the average value of that provision.

For example, EBS tabulations indicate the percent of employees in fee-for-service medical care plans who must pay

selected deductibles (such as $100, $150, and $200 per year),

as well as the average deductible. (All tabulations of averages include only those employees actually covered by the

provision being averaged.)

Most tables in this bulletin also include the number of
157

Technical Note

employees receiving the benefit. This provides the reader with

additional information on the prevalence of various benefit

plans and provisions.

Survey estimation methods

The survey design uses an estimator that assigns the inverse

of each sample unit’s probability of selection as a weight to

the unit’s data at each of the two stages of sample selection.

Three weight-adjustment factors are applied to the establishment data. The first factor is introduced to account for establishment non-response, a second factor for occupational nonresponse, and a third poststratification factor is introduced to

adjust the estimated employment totals to actual counts of

the employment by industry for the survey reference date.

The general form of the estimator for a population total Y

is:

where,

n’ = number of responding sample establishments;

oi = occupation sample size selected from the ith

establishment;

Yij= value for the characteristics of the jth selected

occupation in the ith selected establishment;

Pi = the probability of including the ith establishment

in the sample;

Pij = the probability of including the jth occupation in

the sample of occupations from the ith establishment;

f1i = weight adjustment factor for nonresponse for the

ith establishment;

fij = weight adjustment factor for nonresponse for the

j

th occupation in the ith establishment;

f2i = weight adjustment factor for poststratification

totals for the ith establishment.

Y f f

P

Y f

P

i i

i

ij ij

j ij

o

i

n i

= = =

∑ ∑ 2 1

1 1

 

'

Appropriate employment or establishment totals are used

to calculate the proportion, mean, or percentage that is

desired.

Reliability of estimates

The statistics in this bulletin are estimates derived from a

sample of usable occupation quotes selected from the

responding establishments. They are not tabulations based

on data from all employees in medium and large establishments within scope of the survey. Consequently, the data are

subject to sampling and nonsampling errors.

Sampling errors are the differences that can arise between

results derived from a sample and those computed from

observations of all units in the population being studied. When

probability techniques are used to select a sample, as in the

Employee Benefits Survey, statistical measures called “standard errors” can be calculated to measure possible sampling

errors. No estimates of sample error were calculated for this

survey.

Nonsampling errors also affect survey results. They can

be attributed to many sources: Inability to obtain information about all establishments in the sample; definitional difficulties; differences in the interpretation of questions; inability or unwillingness of respondents to provide correct information; mistakes in recording or coding the data; and other

errors of collection, response, processing, coverage, and estimation for missing data.

Computer edits of the data and professional review of both

individual and summarized data reduce the nonsampling errors in recording, coding, and processing the data. However,

to the extent that the characteristics of nonrespondents are

not the same as those of respondents, nonsampling

errors are introduced in the development of estimates.

Because the influence of these limitations on the EBS

estimates is unknown, reliability measurements are incomplete.

16 BLS defines an establishment as an economic unit that produces goods

or services (such as a factory or a store) usually at a single location. An

establishment is not necessarily a firm; it may be a branch plant, for example, or a warehouse.

17 The establishments included in this survey had to be determined in

advance of the actual collection because BLS only surveyed the medium

and large establishments. BLS classified establishments by size as of the

reference date of the sampling frame. All establishments with 100 or more

employees that were sampled are included in the survey, even if they employed fewer workers at the time of data collection.

18 Data are collected individually for narrowly defined occupations that

are sampled within establishments. All of the employees in the detailed

occupation selected may not be surveyed. Data for a group (manageable

number) of employees in the detailed occupation that included the selected

employee position are collected. This group is called a quote.

— Endnotes —
158

Table A-1: Number of establishments and full-time occupational quotes studied and estimated number of full-time

workers within scope of survey, medium and large private establishments, United States, 1997

Industry division1

Number of

establishments

studied

Number of occupational quotes studied2

Total

Professional,

technical, and related

Clerical and

sales

Blue-collar and

service

All industries ............................. 1,945 8,793 2,981 2,651 3,161

Manufacturing ....................... 329 1,892 472 198 1,222

Nonmanufacturing ................ 1,616 6,901 2,509 2,453 1,939

Mining ............................... 17 82 16 4 62

Construction ..................... 46 192 45 18 129

Transportaion,

communications,

electric, gas, and

sanitary services ......... 187 968 284 279 405

Wholesale trade ................ 77 331 55 129 147

Retail trade ....................... 239 665 89 413 163

Finance, insurance, and

real estate ................... 335 1,530 566 913 51

Services ............................ 715 3,133 1,454 697 982

Estimated number of full-time workers within scope of survey

All industries ............................. 38,409,120 10,659,842 9,168,433 18,580,845

Manufacturing ....................... 12,885,835 2,858,406 1,244,121 8,783,308

Nonmanufacturing ................ 25,523,285 7,801,436 7,924,312 9,797,537

Mining ............................... 301,721 86,518 8,700 206,504

Construction ..................... 1,160,587 339,398 84,604 736,585

Transportaion,

communications,

electric, gas, and

sanitary services ......... 3,366,403 836,880 863,536 1,665,986

Wholesale trade ................ 1,643,249 225,806 584,659 832,784

Retail trade ....................... 3,319,661 349,655 1,952,036 1,017,969

Finance, insurance, and

real estate ................... 2,770,206 927,531 1,685,195 157,479

Services ............................ 12,961,459 5,035,649 2,745,581 5,180,230

1 As defined in the 1987 edition of the Standard Industrial

Classification Manual, U.S. Office of Management and Budget. 

Indusry data are shown for informational purposes only and are

subject to larger than normal sample error. See section on reliability

of estimates. 2 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.

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

totals. Where applicable, dash indicates no employees in this

category.
159

Table A-2: Number of establishments and part-time occupational quotes studied and estimated number of part-time

workers within scope of survey, medium and large private establishments, United States, 1997

Industry division1

Number of

establishments

studied

Number of occupational quotes studied2

Total

Professional,

technical, and related

Clerical and

sales

Blue-collar and

service

All industries ............................. 1,945 1,379 262 598 519

Manufacturing ....................... 329 25 5 12 8

Nonmanufacturing ................ 1,616 1,352 257 585 510

Mining ............................... 17 1 - 1 -

Construction ..................... 46 3 - 2 1

Transportaion,

communications,

electric, gas, and

sanitary services ......... 187 46 5 23 18

Wholesale trade ................ 77 19 - 5 14

Retail trade ....................... 239 536 2 351 183

Finance, insurance, and

real estate ................... 335 64 1 55 8

Services ............................ 715 683 249 148 286

Estimated number of part-time workers within scope of survey

All industries ............................. 7,587,840 1,098,473 2,729,738 3,759,628

Manufacturing ....................... 182,748 37,604 66,524 78,620

Nonmanufacturing ................ 7,405,092 1,060,869 2,663,215 3,681,009

Mining ............................... 6,114 - 6,114 -

Construction ..................... 10,825 - 5,736 5,089

Transportaion,

communications,

electric, gas, and

sanitary services ......... 360,925 21,313 160,561 179,051

Wholesale trade ................ 63,048 - 17,918 45,131

Retail trade ....................... 3,089,242 12,832 1,570,465 1,505,945

Finance, insurance, and

real estate ................... 214,039 1,973 186,839 25,227

Services ............................ 3,660,898 1,024,750 715,581 1,920,566

1 As defined in the 1987 edition of the Standard Industrial

Classification Manual, U.S. Office of Management and Budget. 

Indusry data are shown for informational purposes only and are

subject to larger than normal sample error. See section on reliability

of estimates. 2 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.

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

totals.
160

Appendix B:

Survey Response

Information on 1997 survey response

Data for the 1997 Employee Benefits Survey were

collected from November 1996 to December 1997,

reflecting an average reference period of June 1997.

A sample of 3,640 establishments was chosen from

Unemployment Insurance reports with reference dates from

1986 to 1996; also included was the “birth” sample, which

represents establishments beginning operations through 1996.

(A description of sampling procedures appears in appendix

A.) Respondents were asked for information as of the time

of the data collection contact.

The following summary is a composite of establishment

responses to the survey:

Establishments Number

In sample 3,640

Out of business and out of scope 216

Refusing to respond 1,479

Responding fully or partially 1,945

The 1,945 responding establishments yielded 10,172 occupational observations (quotes) for which data were collected.

There were four procedures used to adjust for missing data

from partial and full refusals. First, imputations for the number of plan participants are made for cases in which this number is not reported (approximately 28 percent of participants

in medical plans, 33 percent in retirement plans, and less than

3 percent of participants in all other types of plans). Each of

these participant values is imputed by selecting a similar plan

from another establishment with similar employment in a

similar industry. The participant rate from this selected plan

is then used to approximate the number of participants for

the plan that is missing a participation value.

Second, imputations for plan provisions were made when

they are not available in a responding establishment. These

plan provisions are imputed by selecting a plan from another

establishment with similar characteristics. Provisions from

this selected plan are then used to represent the missing data.

(This was necessary for about 6 percent of the participants in

short-term disability plans; 28 percent of medical, dental, and

vision care participants; 9 percent of long-term disability insurance participants; 32 percent of retirement plan participants; and 4 percent of life insurance plan participants. Imputations were done for 1 percent of the participants in paid

leave plans.) The rates of nonresponse for detailed plan provisions in the health and retirement benefit areas precludes

publishing most estimates of their plan features.

For establishments that refuse, or are unable to provide

the minimum amount of usable data, a weight adjustment is

made using the sample unit employment. This technique assumes that the mean value of the nonrespondents equals the

mean value of the respondents at some “detailed” cell level.

These cells are defined in a manner that groups establishments together that are homogeneous with respect to the characteristics of interest. In most cases, these cells are the same

as those used for sample selection.

For establishments that refuse, or are unable to provide

data for a specific occupation, a similar cell approach is used

to make adjustments to the sampled occupation weights in

responding establishments. The characteristics of interest

include the major occupation group of the unreported occupations.

Standard errors

Standard errors are not available for the 1997 survey year.
161

Appendix C:

Availability of Survey Data

The tables published in this bulletin present the major

findings of the Employee Benefits Survey of medium

and large private establishments. Survey data are also

available in research articles, special bulletins and reports,

short publications, and electronic media.

Articles

Articles based on Employee Benefits Survey data are published periodically in two of the Bureau’s periodicals, the

Monthly Labor Review and Compensation and Working Conditions. The following is a list of recent articles:

Moore, James H. “Hospital room and board benefits,”

Compensation and Working Conditions, summer 1998, pp.

23-30.

Foster, Ann C. “Dental care benefits, 1995,” Compensation and Working Conditions, summer 1998, pp. 45-49.

Blostin, Allan P. and Pfuntner, Jordan N. “Employee Medical Care Contributions on the Rise,” Compensation and

Working Conditions, spring 1998, pp. 46-51.

Foster, Ann C. “Employee Benefits in the United States,

1994-95,” Compensation and Working Conditions, spring

1998, pp. 56-61.

Wiatrowski, William J. “Family Retirement Benefits,”

Compensation and Working Conditions, spring 1998, pp.

12-17.

Weinstein, Harriet G. “Linking Retirement Plan Measures,” Compensation and Working Conditions, spring

1998, pp. 52-55.

Foster, Ann C. “Life Insurance,” Compensation and Working Conditions, winter 1997, pp. 47-50.

Simpson, Hilery “Paid Personal, Funeral, Jury Duty, and

Military Leave: Highlights from the Employee Benefits

Survey, 1979-95,” Compensation and Working Conditions,

winter 1997, pp. 35-46.

Weinstein, Harriet G. “Post-retirement Pension

Increases,” Compensation and Working Conditions, fall

1997, pp. 47-50.

Foster, Ann C. “Public and Private Sector Defined

Benefit Pension Plans: A Comparison,” Compensation and Working Conditions, summer 1997,

pp. 37-43.

Simpson, Hilery “Short-term Disability Benefits,” Compensation and Working Conditions, summer 1997, pp. 52-

56.

Foster, Ann C. “Employee Benefits in the United States,

1993-94,” Compensation and Working Conditions, spring

1997, pp. 46-50.

Simpson, Hilery “Paid Lunch and Paid Rest Time Benefits: Highlights from the Employee Benefits Survey, 1979-

93,” Compensation and Working Conditions,

December 1996, pp. 18-23.

Foster, Ann C. “Early Retirement Provisions in Defined

Benefit Pension Plans,” Compensation and Working Conditions, December 1996, pp. 12-17.

Blostin, Allan P., Kane, John J., and Pfuntner, Jordan N.

“Changing Survey Strategies in the Evolution of Health

Care Plans,” Compensation and Working Conditions,

September 1996, pp. 3-10.

Foster, Ann C. “Employee Contributions for Medical Care

Coverage,” Compensation and Working Conditions,

September 1996, pp. 51-53.

Wiatrowski, William J. “Counting the Incidence of

Employee Benefits,” Compensation and Working Conditions, June 1996, pp. 10-18.

Foster, Ann C. “Defined Contribution Retirement Plans

Become More Prevalent,” Compensation and Working

Conditions, June 1996, pp. 42-44.

Foster, Ann C. “Employee Participation in Savings and

Thrift Plans, 1993,” Monthly Labor Review, March 1996,

pp. 17-22.

Bucci, Michael and Grant, Robert B. “Employersponsored Health Insurance: What’s Offered, What’s

Chosen?” Monthly Labor Review, October 1995, pp. 38-

44.
162

Availability of Survey Data

Wiatrowski, William J. “Who Really Has Access to

Employer-provided Health Benefits?” Monthly Labor

Review, June 1995, pp. 36-44.

Wiatrowski, William J. “Methods of Providing Child-care

Benefits to Employees,” Compensation and Working

Conditions, May 1995, pp. 5-6.

Kramer, Natalie G. “Employee Benefits for Older Workers,” Monthly Labor Review, April 1995, pp. 21-27.

Wiatrowski, William J. “Small Businesses and Their

Employees,” Monthly Labor Review, October 1994, pp.

29-35.

Blostin, Allan P. “An Overview of the EBS and the NCS,”

Compensation and Working Conditions, spring 1999, pp.

2-5.

Graham Avy D. and Scheible, Paul “BLS Retirement Plan

Surveys Look to the Future,” Compensation and Working

Conditions, spring 1999, pp. 6-13.

Blostin, Allan P. and Díaz, Iris S., “Health Insurance

Provisions Captured by the EBS and the NCS,” Compensation and Working Conditions, spring 1999, pp. 14-18.

Special Bulletins and Reports

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

Employee Benefits in Medium and Large Private Establishments, 1995, Bulletin 2496, April 1998.

Employee Benefits in Small Private Establishments, 1996,

News Release, June 15, 1998.

Employee Benefits in State and Local Governments, 1994,

Bulletin 2477, May 1996.

Employee Benefits Survey: A BLS Reader, Bulletin 2459,

February 1995.

Issues in Labor Statistics

Issues in Labor Statistics is one of a series of BLS occasional

reports that present information of current interest. Recent

Issues on employee benefits include:

Employer-sponsored Childcare Benefits, Summary 98-9,

August 1998.

Unpaid Family Leave, Summary 95-4, January, 1995.

Parental Leave Benefits Provided by Employers,

Summary 93-1, March 1993.

Health Care Benefits Under Close Scrutiny, Summary 93-

2, March 1993.

The public may access Employee Benefits Survey data

through the Bureau of Labor Statistics’ Internet site at: http:/

/stats.bls.gov/ebshome.htm.

Questions on data in this publication should be referred to

the staff of the Employee Benefits Survey at (202)

606-6222; via E-mail: ocltinfo.bls.gov; or by writing to the

Employee Benefits Survey, Bureau of Labor Statistics, 2 Massachusetts Avenue, N.E. Room 4175, Washington, DC 20212-

0001. Sensory impaired individuals may obtain

information in this publication upon request. Voice phone:

(202) 606-7828; Federal Relay Service: 1-800-877-8339.