Table 49. Medical care benefits: Percent of full-time
participants by availability of managed care benefits,
medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
All par. | techni: | and | tion and
Managed care, plan ticipants | C2! and] sales | service
related | partici- | partici-
partici- | pants | pants
pants

Total 100 100 100 100

With managed care benefits 93 92 93 93

Traditional fee-for-service, with
at least one cost containment

feature’ 59 83 52 66
Preferred provider organization®..; 16 19 2 12
Exclusive provider organization® | (‘) iv) iv) iv)

Prepaid health maintenance
‘organization’ ..

Without managed care .......

* Fee-for-service plans with at least one cost containment feature, it
cluding utilization review, pre-admission certification, mandatory second
surgical opiriion, pre-admission testing, and no or limited reimbursement
for nonemergency weekend admission.

? 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 reim-
bursement rates when participants use nonmember services.

?-An exclusive provider organization is a group of hospitals and physi-
cians that contract to provide comprehensive medical services. Partici-
pants are required to obtain services from members of the organization to
receive plan benefits.

* Less than 0.5 percent.

* A health maintenance organization provides a prescribed set of bene-
fits to enrollees for a fixed payment.

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

54

Table 50. Medical care benefits: Percent of full-time
participants in fee-for-service plans’ by coverage for
selected cost containment features, medium and large
private establishments, 1991

Profes-
sional, | Clericat | Produc-
All pare | techniz | and | tion and
Cost containment feature ticicants| Cl and] sales | service
‘pants! related | partici- | partici-
pants Pants:
Higher rate of payment for generic
prescription drugs wf 14 12 7 13
Mail order drugs .. 16 16 15 16
No of limited reimbursement for
nonemergency weekend
admission to hospital .. 19 18 23 18
Separate deductible for hospital
admission 10 14 8 10
Incentive for prehospitalization
testing s7 | 56 | 54 59
Prehospital admission certification
requirement 63 60 68 63
Higher rate of payment for delivery
at birthing center .. 28 ar | or 29
Incentive to audit hospital statement} 8 9 5 9
Care subject to utllization review .....| 32 | 35 36 30

' Data were not tabulated for health maintenance organizations be-
cause they had their own inherent cost containment features.

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



Table 115. Deferred profit sharing plans: Percent of
full-time participants by selected provisions, medium and

large private establisnments, 1991

Profes-
sional, | Clerical | Produc-
techni | and | tion and
Item aicette| cal and! sales | service
ip related | partici- | partici-
partici- | pants | pants
pants
Total 100 100 100 100
Method of determining employer
contributions
Based on stated formula se | 47 | 37 | 61
Fixed percent of profits 40 12 9 10
Sliding percentage based on
profits, sales, or return on
assets a4 | at 1o | 39
Determined by unit profits 2 2 1
Other stated formula 16 | 13 16 18
No predetermined formula .. 4a | 53 | 63 | 390
Allocation of profits to individual
employees
Total. 100 | 100 | +00
Equally to all participants 4 3 1
Based on earnings 52 48 54 52
Based on earnings and service 13 15 14 12
Based on participants’ contributions | 12 | 19 16 8°
Other’ ...... vs 21 15 14 26
Loans from employees’ accounts
Total .. 100 100 100 100
Permitted 27 29 31 24
Not permitted . 3 | 7 eo | ° 76

' Includes participants in plans that based allocation on unit perfor-
mance or the ratio of employee compensated hours to total compensated

hours.

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

118



Table 21. Paid sick leave: Percent of full-time employees by sick leave provision, medium and large private establish-

ments, 1991

Profes- Protes-
sional, | Clerical | Produc- sional, | Clericat | Produc-
‘Alem. | techni | and | tion andl ; ‘Alem. | techni: | and | tion and
Sick leave policy’ loyess {cal and| sales | service Sick leave policy’ foyees (ca and| sales | service
Ployees | related | employ- | employ-| PIOYEES | related | employ- | employ-
employ-| ees | ees employ-| ees | ees
ees ees
100 | 100 | 100 | 100
After 15 years of
Provided paid sick leave® 67 87 82 48 service:—Continued
10 and under 15 days....] 19 30 ai 4
Sick leave provided 15 and under 30 days 3 5 4 1
annually? ...... 55 66 70 4t 30 and under 60 days .. 1 1 2 1
60 and under 120 days 3 5 5 2
After 1 year of service: 120 and under 180 days.) 4 7 5 2
Under § days ..... 4 1 4 5 180 days oF MOF... 1 2 1 0
5 and under 10 days 22 18 33 18
40 and under 15 days 20 33 2t 12 After 20 years of servi
15 and under 30 days 5 9 6 2 Under 5 days ... 3 1 3 4
30 and under 60 days 1 2 1 O 5 and under 10 days 20 15 29 18
60 and under 120 days...) (*) 1 1 i) 10 and under 15 days . 19 30 at 1"
120 and under 180 days 1 2 1 1 15 and under 30 days .. 3 5 3 1
180 days or more ... o) Oy 0 ro) 30 and under 60 days .. 1 1 2 1
60 and under 120 days...) 3 4 5 2
After 5 years of service: 120 and under 180 days.) 3 6 3 1
Under 5 days 3 1 3 4 180 days or more . | 2 3 3 1
5 and under 10 days 20 15 30 18
10 and under 15 days 19 31 24 12 After 25 years of service:
15 and under 30 days 4 6 4 2 Under 5 days 2 1 2 3
30 and under 60 days 3 5 3 1 5 and under 10 days.......J 21 15 30 19
60 and under 120 days...) 4 5 6 2 10 and under 15 days 19 30 24 "1
120 and under 180 days 2 3 2 1 15 and under 30 days 3 5 3 1
180 days OF MOLE ween] CY 1 o) ) 80 and under 60 days .. 1 2 2 1
60 and under 120 days .. 3 3 4 2
After 10 years of 120 and under 180 days.) 4 8 4 2
service: 180 days OF MOFE wsnnnel 2 3 3 1
Under § days 3 1 3 4
5 and under 10 days ... 20 18 29 18 After 30 years of servi
10 and under 15 days 19 30 21 oT Under’5 days .. 2 1 2 3
15 and under 30 days 3 5 3 1 5 and under 10 days 24 15 30 19
30 and under 60 days 3 3 3 2 10 and under 15 days .. 19 30 24 "1
60 and under 120 days 4 4 6 2 15 and under 30 days .. 3 5 3 1
120 and under 180 days 3 6 2 1 80 and under 60 days .. 1 2 2 1
180 days or more ... 1 1 1 ) 60 and under 120 days...) 3 3 4 2
120 and under 180 days .. 4 7 4 2
After 15 years of 180 days or more | 2 8 4 1
service:
Under 5 days 3 1 3 4
5 and under 10 days ... 20 15 29 18

See footnotes at end of table.

20



Preface

This bulletin presents results of a 1991 Bureau of Labor
Statistics survey that dealt with the incidence and detailed
provisions of selected employee benefit plans in medium
and large private establishments. The survey provides rep-
resentative data for 36 million employees in the Nation’s
private nonagricultural industries. Appendix A describes
in detail the coverage and statistical procedures used in the
survey.

The 1991 Employee Benefits Survey reports on benefits
provided to employees in establishments with 100 or more
workers in all private nonfarm industries. With the publi-
cation of these data, the Bureau of Labor Statistics (BLS)
completes the final phase of a plan to expand BLS em-
ployee benefits data. Between 1979 and 1986, the survey
provided benefits data on full-time employees in medium
and large establishments, those with either 100 or 250 em-
ployees or more, depending on the industry. Coverage in
the services industries was limited. The 1987 survey ex-
amined benefits for full-time employees in State and local
governments with 50 employees or more. In 1988 and
1989, expanded surveys of medium and large establish-
ments covered full-time employees in establishments em-
ploying 100 workers or more in all private industries.

Beginning in 1990, the Employee Benefits Survey in-
cluded both full-time and part-time employees in all pri-
vate industries (regardless of the number of employees)
and State and local governments. In that year, the survey
covered small private establishments (those employing
fewer than 100 workers) and governments. This bulletin,
reporting on the 1991 survey of employees in medium and
large private establishments, includes part-time workers in
those establishments for the first time. In future years,
small private establishments and State and local govern-
ments will be surveyed in even-numbered years, and me-
dium and large private establishments will be surveyed in
odd-numbered years. Chapters 2 through 8 apply to full-

iti

time employees; chapter 9 addresses part-time workers.

Many persons in the Office of Compensation and Work-
ing Conditions contributed to this publication. The follow-
ing persons in the Division of Occupational Pay and Em-
ployee Benefits Levels compiled and analyzed the data for
this bulletin: Cathy Baker, Michael Bucci, Thomas
Charboneau, Edward Coates, Kenneth Elliott, Jason
Ford, Avy Graham, Robert Grant, Glenn Grossman,
Douglas Hedger, Stephanie Hyland, Natalie Kramer,
Mare Kronson, John Murphy, Laura Scofea, Patrick
Seburn, Margaret Simons, Cynthia Thompson, Jerline
Thompson, and Arthur Williams. They worked under the
direction of Allan Blostin, James Houff, and John Morton.
Mahin Eslami prepared the text for publication. ©

Computer programming and systems design were pro-
vided by David Caples, Mary Constable, Mohamed
Elzein, Aholivah Maier, Lien Nham, Cheryl Sims, and
Edward Thomas of the Division of Directly Collected
Periodic Surveys, with the direction of Leslie Chappel.
Larry Huff, Thomas Kelly, Mary Gessley, and Jill
Montaquila of the Statistical Methods Group were re-
sponsible for the sample design, nonresponse adjustments,
sample error computations, and other statistical proce-
dures; Chester Ponikowski directed their efforts, Field-
work for the survey was directed by the Bureau’s Assistant
Regional Commissioners for Operations.

Sensory impaired individuals may obtain information in
this publication upon request. Voice phone (202)
606-STAT; TDD phone (202) 606-5897; TDD message re-
ferral phone 1-800-326-2577. Material in this publication
is in the public domain and, with appropriate credit, may
be reproduced without permission.

Pictured on the cover of this bulletin is Missing the
Danceby Norman Rockwell, 1937, (c) The Curtis Publish-
ing Company.



Table 109. Savings and thrift plans: Percent of full-time participants by provision for employer matching contributions,
medium and large private establishments, 1991—Continued

Matching percentage*
Employee earnings to be matched’ | Total , ,
26 percent | 60 percent | 76 percent |100 percent] ner Ted Varies with | Varios Wh) Omnort
Production and service
Total ... 100 8 34 3 14 13 8 14 7
Up to the first:
2 percent 4 2 - 1 - - 0 1
8 percent .. 3 ) - 1 iv) - 1 -
4 percent. 45 5 1 1 0) 3 “
5 percent .. 19 3 i) 3 5 7) 2 3
6 percent .. 39 17 iv) 4 5 7 2
7 percent .. 3 - 2 1 QO - - () -
8 percent .. 3 0 2 iv) 0 - 1 iy) 0
9 percent .. - - - - - - - -
10 percent 4 “ 1 CO) ( 2 - “ 1
11 percent - - - - - - - - -
12 percent iv) - - - - i?) - - -
Greater than 12 percent .. 3 “0 1 - - - 1 1 )
er® 6 2 1 - 3 - - iv) -
' Employee may contribute a percent of salary up to a specified maxi- _length of service,
mum; ceilings on contributions to be matched by employers generally are *" Less than 0.5 percent.
lower. if the maximum varied by participant's length-of-service, age, or * Includes other percentages and specified dollar amounts.
both, the highest possible percentage was tabulated,
? The percentage of matchable employee contributions added by em- NOTE: Because of rounding, sums of individual items may not equal
ployers. Some plans specified a maximum annual employer contribution. totals. Where applicable, dash indicates no employees in this category.

* Includes percentages that vary by type of investment chosen and by

114



Table 59. Medical care benefits: Average monthly
contribution of full-time participants in contributory plans,
medium and large private establishments, 1991

Table 60. Medical care benefits: Percent of full-time participants by requirement for employee contribution, medium and large

private establishments, 1991

Profes-
sional, | Clerical | frowue,
All partic-| technical, | and sales| "0" @
‘Type of coverage pants and re- partici- oantish,
lated par-| pants | Par
ticipants Ps
All plans
Employee coverage seco | sz65 | s2a00 | $25.82
Family coverage’ .. 9697 | 96.43 | 107.86 | 90.78
Health maintenance
organizations
Employee coverage .. 2023 | 2858 | 31.58 | 2807
Family coverage’ 118.19 110.08 121.40 121.97
Non-health maintenance
organizations
Employee coverage .. zea | 26.65 | 2698 | 26.21
Family coverage’ 91.52 | 92.66 | 103.99 | 83.67

' 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.

‘ci Professional, technical, Clerical and sales Production and service
All participants and related participants participants participants
Type and amount of contribution
Employee | Family | Employee | Family | Employee | Family | Employee | Family
coverage | coverage | coverage | coverage | coverage | coverage | coverage | coverage
Health maintenance organizations 100 100 400 100 100 100 100 100
Non-contributory 40 23 38 23 40 22 40 23
Contributory 60 7 62 7 60 78 60 76
Not determinable iv) 10) - re) 10) io) 0) 1
Non-health maintenance organizations 400 100 100 100 100 100 100 100
Non-contributory 51 33 47 26 44 28 57 39
Contributory .. 49 67 53 74 56 72 43 61
Not determinable .. 9) ) 9) 0) 0 0 0) 1)

* Less than 0.5 percent.

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

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

63



Table 72. Life insurance: Percent of full-time participants in plans with multiple-of-earnings formulas’ by amount of basic
insurance and maximum coverage provisions, medium and large private establishments, 1991

In plans in plans with maximum coverage
Formula Total | _ without
maximum All Less than | $50,000- | $100,000- | $250,000- } $500,000- | $1,000,000
coverage $50,000 | $99,999 | $249,999 | $499,999 | $999,999 | or more
All participants
TOtal senceeesseceseeeseren 100 42 58 3 13 14 15 7 6
Life insurance is equal to annual
earnings times:?
Less than 1.0 3 1 2 i) 1 iv) iv) ° 1
1 52 23 28 2 9 7 5 3 3
2 0) 2 - iv) °) 1 - iv)
10 3 7 iu} 1 2 1 iv 1
a] () e ~ - i) - i) -
25 12 18 i) 2 3 2 2
1 @ 1 - ) @ e) -
3 is) 3 e) Q 1 1 @
3 1 1 ) ) 0 is) iV)
2 e 1 - - 17) 1 iv)
Multiple varying with earnings °) ) ) - i) ) - -
Professional, technical, and
related
Total .. 100 40 60 2 13 13 18 8 6
Life insurance is equal to annual
earnings times:
Less than 1.0 3 1 3 ) 1 1 1 a) 1
48 20 28 1 8 6 6 4 3
3 - 3 - 0 - 3 - -
10 3 ? ) 2 3 2 i) 0)
i) iv} i) - - ¢) - 0 -
28 13 14 ro) 2 3 5 3 2
1 is) 1 = iv) is) i) - -
3 1 2 i) ) t 1 i)
3 1 2 iv) 1 @ iV) Qo e
2 e) 1 - - i] 1 e i)
iv) (a) io) - - (9) ia) - -
Clerical and sales
Total .. 1400 at 59 4 tt 15 14 8 8
Life insurance is equal to annuat
eamings times:?
Less than 1.0 3 1 2 ° ) 1 e ro) i)
1.0 52 24 28 3 8 7 4 a 3
2 o) 2 - - a) 1 - a)
9 2 6 1 1 2 1 a 1
Q - iy) = - iy) - - ~
24 10 14 (9) 2 3 5 2 3
rv - 6) - i) - iv) - -
4 1 3 } ~ 1 1 4 ts)
3 2 2 i) o) i i) 2) 9)
2 iv) 2 - - 19) 1 i i)
Multipte varying with earnings 1 o) 0) - - ra) Gy) - .

See footnotes at end of table.

14



Table 7. Paid holidays: Percent of full-time employees by Table 8. Paid holidays: Percent of full-time participants by

number of paid holidays provided each year, medium and policy on holidays that fall on a regularly scheduled day off,
large private establishments, 1991 medium and large private establishments, 1991
Profes- Profes-
sional, | Clerical } Produc- sional, | Clerical | Produc-
‘Alvem. | techni-| and [tion and Alem. | techni | and | tion and
Number of days fioyees |ah and) sales | service Holiday policy diyoes | 2h and] sales | service
related | employ- | employ- related | employ- | employ-
employ-| ees | ees employ-| ees | ees
ees ees
Total... 100 | 100 | 100 | 100 Total .. 100 | 100 } 100 } 100
Provided paid holidays .... v2 | 93 | 94 | 90 Holiday is not observed .... 2 2 3 1
Under 5 days 1 ¢) 1 2
5 days : 2 1 3 2 Another day off is granted .... eo | a | a | 7
51-59 days » ) 0) - -
6 days 8 6 | 10 9 Additional day's pay in lieu of
61-69 days » 0) 0) ty) 0 holiday .. 5 3 3 7
7 days 7 6 8 7
74-79 days - of} © 0) 0) Another day off or day's pay,
8 days 10 2; 1 9 depending on when holiday falls ..| 8 8 6 2
8.1 - 6.9 days Q 0) () 10)
9 days a 1" 12 | 10 Another day off or holiday not
91-9. Oo] 0 ) 0) observed, depending on when
10 days .. 22 23 23 21 holiday falls .. 1 1 1 1
10.1 - 10.9 days +] 0 1] 0
41 days... 13 15 12 13 Other provision applies* 2 2 2 1
11.1 - 11.9 days 10) 10) re) iv)
12 days .. | 7 9 7 5 Holiday policy not determinable 3 2 2 4
121 = 12.8 ayS vovvnnvnrnnnnnen 1 1 1 1
oes ae co 3 3 3 * Includes plans where the policy differs by holiday.
Number of days not available 1 0 - 1 NOTE: Because of rounding, sums of individual items may not equal
Not provided paid holidays 8 7 6 | 1 totals. Where applicable, dash indicates no employees in this category.

* Less than 0.5 percent.

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



Table 118. Plan administration: Percent of full-time participants in selected employee benefit programs by type of plan

sponsor, medium and large private establishments, 1991

Sickness and Long-term i
Plan sponsor Health care Life insurance accident disability Defined’ benefit
insurance insurance Pension
All participants

Total 100 400 400 100 100
Single employer... 94 97 70 100 89
Multiemployer' 6 3 6 10
Mandated benefits’ = - 25 - 1
Employer association ie) 1 - a) ie)

Professional, technical, and
related

Total nnn 400 100 400 400 100
Single employer 98 99 59 100 97
Multiemployer' ...... 2 1 19) io) 3
Mandated benefits? - - 40 = Q
Employer association’ . e 0 - a) 6

Clerical and sales

Total .. 100 100 400 100 400
Single employer 7 99 64 100 95
Multiemployer' .. 3 1 3 - 4
Mandated benefits? .. - - 33 5 9]
Employer association’ ® e - io) @

Production and service

Total .. 100 100 100 100 100
Single employer 90 95 75 99 81
Multiemployer’ . 10 4 8 1 18
Mandated benefits! .. - - 7 -
Employer association’ a 1 - @ (o)

1 Individual employers in the same or in a related industry contributing
a negotiated amount to a trust fund providing benefits for employees cov-
ered under a collective bargaining agreement.

® Less than 0.5 percent.

* The majority of the participants with mandated sickness and accident
insurance benefits were covered by State temporary disability insurance
plans. The remaining employees were covered by the Railroad Un-
employment Insurance Act. Mandated defined benefit pension plan par-

ticipants were covered by Railroad Retirement Tier 2.

* Band of medium and large employers in a common trade or busi-
ness, for example, savings and loan associations. The plan sponsored
by the association is not negotiated with the employees.

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



Appendix A: Technical Note

Scope of survey

The Bureau of Labor Statistics (BLS) survey of the inci-
dence and characteristics of employee benefit plans is con-
ducted jointly with the Bureau’s Employment Cost Index
(ECI). The portion of the sample from which these esti-
mates are made covers all private sector establishments in
the United States employing 100 workers or more at the
time of sample selection.! All private sector industries are
covered in the survey with the exception of farms and pri-
vate households.

The industrial coverage, establishment size coverage,
and geographic coverage for this survey differs from the
earlier surveys of medium and large private establishments
conducted annually from 1979 to 1989. The surveys done
from 1979 to 1986 excluded most of the service industries
and included establishments that employed at least 50,
100, or 250 workers, depending on the industry. The sur-
vey conducted in 1987 consisted of State and local govern-
ments with 50 or more employees. The surveys carried out
in 1988 and 1989 included all private sector establish-
ments that employed 100 or more employees. All surveys
conducted from 1979 to 1989 excluded establishments in
Alaska and Hawaii.

Beginning in 1990, all surveys cover all full-time and
part-time workers in all 50 States and the District of Co-
lumbia. Beginning in 1990, BLS started to collect data in
even-numbered years for small private establishments
(those employing fewer than 100 workers) and State and
local governments. Starting in 1991, the Bureau began to
gather data in odd-numbered years in medium and large
private establishments (those employing 100 workers or
more).

Tables A-1 and A-2 show the estimated number of estab-
lishments and full- and part-time employees within the
scope of the survey, the number of responding sample es-
tablishments, and the number of sampled (and respond-
ing) occupational quotes? within those establishments that
were actually studied for each major industry division.

! The establishments included in this survey had to be determined in
advance of the actual collection because BLS only surveyed the larger es-
tablishments. BLS classified establishments by size as of the reference
date of the sampling frame. All establishments that were sampled with
100 employees or more are included in the survey, even if they employed
fewer workers at the time of data collection.

2 All of the employees in the detailed occupation selected may not be
surveyed, Data for a manageable number (group) of employees in the de-
tailed occupation that included the selected employee position are col-
lected. This group is called a quote.

129

Occupational groups

Data were collected individually for narrowly defined
occupations that were sampled within establishments.
Each of these narrowly defined occupations is classified
into one of the following three broad occupational groups:

Professional, technical, and related. Includes professional,
technical, executive, administrative, managerial, and re-
lated occupations.

Clerical and sales. Includes clerical, administrative sup-
port, and sales occupations.

Production and service. Includes precision production,
craft, and repair occupations; machine operators and in-
spectors; transportation and moving occupations; han-
dlers, equipment cleaners, helpers, and laborers; and ser-
vice occupations.

Employees excluded from the survey are the self-em-
ployed, proprietors, major stockholders, members of a
corporate board who are not otherwise officers of the cor-
poration, volunteers, unpaid workers, family members
paid token wages, persons permanently disabled, partners
in unincorporated firms, and U.S. citizens working over-
seas.

Benefit areas

BLS requested that sampled establishments provide
data for a sample of their occupations on work schedules
and details of plans in each of the following benefit areas:
Paid lunch periods, paid rest periods, paid holidays, paid
vacations, paid personal leave, paid funeral leave, paid
military leave, paid jury-duty leave, paid and unpaid pa-
rental leave, paid sick leave, sickness and accident insur-
ance, long-term disability insurance, medical, dental, and
vision care, life insurance, retirement and capital accumu-
lation plans, flexible benefit plans, and reimbursement ac-
counts.

Data were also collected on the incidence of the follow-
ing additional benefits: Severance pay, supplemental un-
employment benefits, parking, subsidized commuting,
travel accident insurance, nonproduction cash bonuses, fi-
nancial counseling, prepaid legal services, gifts, child care,
adoption assistance, eldercare, in-house infirmaries, long-
term care insurance, wellness programs, recreation facili-



Table 66, Dental care benefits: Percent of full-time
participants by deductible provision’, medium and large
private establishments, 1991

Table 67. Dental care benefits: Percent of full-time
participants by yearly maximum amount of coverage,’
medium and large private establishments, 1991

Profes- Profes-
sional, | Clerical | Produc- sional, | Clerical | Produc-
‘par. | techni: | and | ton and ‘Altpar-| techni: | and |tion and
Type of deductible? bt, | cal, and] sales | service Dollar amnount® tepeats | cal, and) sales | service
icipants | ‘elated | partici- | partic ips related | partici- | partici-
partici- | pants pants partici- | pants pants
pants pants.
Total nn 4oo | 100 | 100 | 100 Total . too | 100 | 100 | 100
Subject to separate dental Yearly maximum specified 85 85 a7 84
deductible’... 64 87 72 87 Less than $500 1 1 iv) 1
2 2 1 3
Yearly deductible only 55 59 61 49 iv) iv) - -
Under $25 ) 0) 0) 1 7 10 7
$25 . 18 21 18 17 t 2 1 1
$26-$49 1 1 2 1 46 | 45 49 46
350 30 |} 31 34 26 7 6 8 8
351-899 2 3 3 1 12 13 13 12
$100 3 4 1 1 1 1
Over $100 on (0) 0) i) o) 4 5 3 3
2 1 2 3
Lifetime deductible only .. 5 3 7 5
$50 enn 4 3 7 3 No yearly maximum .. 15 15 13 16
OVEF $50 vesescnsnen 6 6 “ “
Provision not determinable ... 7) ) 0 OY
Both yearly and lifetim
PEDUCEBIES wernrnenenrnnrne| A 4 4 4 * Includes all covered dental procedures except orthodontia, Amount
, ‘i ‘of maximum specified is for each insured person.
Subject to overall plan deductible 2 2 1 1 ? Coverage for dental procedures may also be subject to scheduled al-
, lowance, deductible, or coinsurance provisions in addition to maximum do!
No deductible ...... 34 3 26 at lar limitations.

iv) 9] 9)

Deductible not determinable ....

* Excludes separate deductibles for orthodontic procedures.

? Amount of deductible described is for each insured person. In some
plans, the individual and family deductibles are identical.
® Deductibles may not apply to all covered dental procedures. If sepa-

rate deductibles applied to different procedures, the sum of the deductible
amounts was tabulated.
* Less than 0.5 percent.

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

69

* if separate yearly maximums applied to different procedures, the sum
of the maximums was tabulated. Maximums applied to dental expenses
only.

* Less than 0.5 percent.

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



Table 28. Sickness and accident insurance: Percent of full-time participants by type and duration of payments, medium and
large private establishments, 1991—Continued

Maximum weeks of coverage

Type of payment ota Less than Varies by
26 zx Over y
13 13 14-25 27-61 52 52 | “Sowice

Professional, technical, and
related—Continued

Percent of earnings varies .

By service

By length of disability

By both service and length of
disability

By eamings ..

Fixed weekly dollar benefit
Less than $60
$60-$79
$80-$99 ....
$100-$119
$120-$138 ....
$140-$159
$160-$179
$180-$199
$200-$219 ...
$220 or more ..

‘
uSSs,

pevevurevee
reed

Sn

Weekly dollar benefit varies
By eamings ....
By service or length of disability

+00
'
ane

Other

Data not available

Clerical and sales

All types... rnveneemnnnne| — 100 2 10 5 72 1 $s 2 3
Fixed percent of earnings ... 76 2 5 3 60 0) 3 1 2

Fixed percent of earnings

&
8
s
8
8

'
ma

Sun

SSu ye
a

tong
fond

Other percent

Percent of earnings varies
By service
By length o'
By both service anid length of
disability
By earnings

iy

Fixed weekly dollar benefit
Less than $60
$60-$78 ...
$80-$99 ..
$100-$119
$120-$139
$140-8159
$160-$179

brrsrnns

ee)

ee)
1

See footnotes at end of table.

27


Table 94. Defined benefit pension plans:' Percent of
full-time participants in plans permitting early retirement by
reduction factor for immediate start of payments, medium
and large private establishments, 1991

Protes-
sional, | Clerical | Produc-
Reduction for each year prior to | All par- | fechni,) and tion and
normal retirement age ticipants related | partici- | partici-
partici: | pants | pants
pants
Total 100 100 100
Uniform percentage” 47 43 a 51
te 3 4 2 3
6 5 7 6
1 2 1 1
8 10 8 7
1 1 2 1
8 10 9 7
15 10 10 ral
1 1 1 1
2 1 1 3
Oo); 2.) 8) 6
©) oe] 6 1
1 roy 1 1
Percentage varies by age ... | 49 51 53 46
Reduction differs for each year
of early retirement* 23 ral 21 25
Reduction differs by age
bracket’... 26 30 32 21
Percentage varies by service 3 5 4 2
Other basis’ .... 1 2 1 ()

* Excludes supplemental pension plans.
® In specific cases, uniform percentage reductions may approximate ac-
tuarial reductions, such as early retirement at age 55 with a reduction of 6
percent a year between age 55 and the plan's normal retirement age of

® Less than 0.5 percent.

* Reduction schedule is related to actuarial assumptions of the life
‘expectancy at age that pension payments begi

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

© Reduced amount was not derived from normal retirement formula.

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

98



Table 32. Long-term disability insurance: Percent of full-time participants with benefits based on percent of earnings
formula by maximum monthly benefit, medium and large private establishments, 1991—Continued

Total Maximum monthly benefit te,
with i"
Type of payment Total | inaxi- | $1500 |$1501-/s2001-|$2501-|$3001-/sa501-|s4001-($5001-| $7501- | $10,001 oer | mum
mum’ jor less} $2000 | $2500 | $2000 | $3500 | $4000 j $6000} $7500| $10,000 | or more | pay
mum? | ment
Clerical and sales
Total 6} 3 1 1 4 1 5] at 9 15 5 | © | 34
Fixed percent of earnings a1 61 1 1 4 1 5 19 8 14 4 i) 30
Less than 50 percent .. 3 2/0 - - 1] 1] - ci) i) (9) - 1
50 percent .. at 9 1] 0 17 0 | - 1 4} 0 1 1 - 13
55 percent .. ale} - - - | @]- | - - - - - -
60 percent .. 49 38 1 iv) re) 4 2 "1 5 W 3 fo) W
65 or 67 percent 13 10 1 iV) - 1 7) 2 3 2 2 e - 3
70 percent .. 4} 2) - | 0] - - ~ | - | @ 1 0 0 : 2
More than 70 percent 1 iv) - - ¢ - - - - - 0) ~ - io)
Percent varies by earnings...) 7} 5/ @ | @/1@]@] - - 2 1 1 1 - 3
Percent varies by service .. iv} al - - - - - - - - ra) - - ®)
Percent varies during disability.| 2 | () | - - - | oO) - - - - - - - 2
Production and service
Total .. 100 61 5 4 1 7) 0 5 18 6 13 3 i?) 39
Fixed percent of earnings 93 59 5 4) 0 7 5 17 6 12 3 a) 34
Less than 50 percent .. 2 1| @ 1}/-/)/e@]-)0)] - | 6 () ra) -
26 8 1 1 o) a) - 1 2!) @ 1 1 - 18
@/o;-)-)-})a}]-!e]-j- - - | -] -
53 38 4 2/0 5 | @) 2 10 5 8 2 w) 15
8 8 | () 0) iv) 1] 0) 1 4 1 1 ay a
3) 2}/-1@;,-]-],-]-l/ele 1) @ | - 79
More than. Q - - - - - - - - iv} - - e)
‘Other percent ela - - | @] - - - - - = :
Percent varies by earnings .......| 5 3) 7) - - - - 11 @ 1 (7) - 2
Percent varies by service...) 1 7 @ | - | = - - - - - - © - -1@
Percent varies during disability 2/ ( | - | - | @ | @ | - -|- - - - - 1
* Maximum payment from plan before offsets are deducted. Ex- * Less than 0.5 percent.
cludes disability income maximum provisions, which do not restrict
LTD payments unless the level of income guaranteed by the pian NOTE: Because of rounding, sums of individual items may not
plus other nonoffsetting income exceeds a specified percentage of equal totals. Where applicable, dash indicates no employees in this
predisabilty earnings or flat dollar amount. category.

* Includes maximums that vary with years of service

34


Table 56. Medical care benefits: Percent of full-time
participants in health maintenance organizations by selected
plan features, medium and large private establishments,
1991

Profes-
sional, | Clerical | Produc-
techni- | and | tion and
cal, and} sales | service
related | partici- | partici-
partici- | pants | pants
pants

All par-

Hem ticipants

Extended care facilities

Total ... 400 { 100 100
Provided coverage .... 89 87 90 88
Limited number of days 59 57 64 87
Unlimited number of days 30 30 26 32
Not provided coverage WW 13 10 12

Physician's office visits

Total ...

Provided coverage ... 100 | 100 100 400

Subject to copayment | per visit 67 64 69 67
$1 per visit () i) v) y
$2 per visit 7 6 8 7
$3 per visit 5 7 6 4
$4 per visit 2 2 3 1
$5 per visit 32 30 29 36
$6 - $9 per visit 1 2 1 0)
$10 per visit .. 14 14 16 12
More than $10 per visit 5 3 5 6

Subject to other limits* .. 2 1 2 2

Covered in full... 31 35 29 30

Outpatient prescription drugs

Total yoo | 100 | 100 | 100
Provided coverage ..... 88 92 88 87

Subject to a copayment per
prescription .... 74 75 72 75
Less than $2 per prescription) 3 3 3 2
$2 per prescription 5 6 4 4
$2.01 - $2.99 per prescription! 2 3 3 2
$3 per prescription 7 19 14 7
$3.01 - $3.99 per prescription| 2 1 () 3
$4 per prescription .. 4 3 5 5
$4.01 - $4.99 per prescription| —(’) - 0) 1
$5 per prescription .... 29 31 30 28

More than $5 per

prescription .... 12 " 13 12
Subject to other limits® 7 6 9 6
Covered in full 7 10 6 6
Not provided coverage ... 12 8 12 13

+ Less than 0.5 percent.
? Inctudes plans that require participants to pay a percentage of the
charges incurred.

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

59



Table 30. Sickness and accident insurance: Percent of
full-time participants by iength-of-service requirement for
Participation,’ medium and large private establishments, 1991

Profes-
Clerical | Produc-
; All par= and. | tion and
Length-of-service requirement | (2 B®. |cal, and| sales | service
ia related | partici- | partici.
partici- | pants | pants
pants
Total 100 | 100 | 100
With service requirement 43 27 40 49
4 month 8 8 7 10
2 months 5 3 4 6
3 months ... 16 "1 14 18
4.5 months 2] 6 1 4
6 months 5 4 4 6
7-11 months to) - - a)
1 year. 5 5 9 5
Over 1 year 1 1 1 ie)
Without service requirement 54 70 87 a7
Service requirement not
determinable 3 3 2 4

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

rare,
* Less than 0.5 percent.

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

30



Table 58. Medical care benefits: . Percent of full-time participants in contributory plans’ by type and amount of employee
contribution, medium and large private establishments, 1991—Continued

, Nor-health maintenance
All plans Health maintenance organizations organizations
‘Type and amount of contribution
Employee cover- Family Employee cover- Family Employee cover Family
age coverage” age coverage? age coverage”
Clerical and sales
Total 100 100 100 100 100 100
Flat monthly amount 73 73 78 7 72 72
Less than $5.00 2 o) 2 1 2 -
$5.00-$9.99 6 1 6 1 6 1
$10.00-814.99 wesnsssnnnnnnnnnnnnnn 8 1 8 1 8 1
$15.00-$19.99 pcennses 9 2 9 a) 9 2
$20.00-$29.99 15 3 22 1 14 3
$30,00-839.99 16 4 7 4 19 4
$40.00-849.99 6 5 5 6 7 4
$50.00-$59.99 .. 2 7 5 6 1 7
$60.00-$69.99 2 4 3 3 1 4
$70.00-$79.99 1 4 3 5 1 3
$80.00-$89.99 1 6 3 a ) 7
$90.00-$99.99 ie) 4 - 2 i) 4
$100.00-$124.99 1 8 1 7 1 8
$125.00-$149.99 ° 7 ) 10 ) 6
'$150.00-$174.99 - 2 - 4 - 2
$175.00-$199.99 - 7 - 13 - 5
$200.00 or greater °) 8 - 10 i) 7
Composite rate* 4 3 3 2 4 3
Amount varies by employee® 15 14 18 16 18 13
Amount varies by earnings 3 3 e) e 4 a
Not determinable 8 W 7 7 9 "1
Production and service
Total .. 100 100 100 100 100 100
Flat monthly amount . 7 76 78 75 7 76
Less than $5.00 2 (9) 1 oy 2 a)
$5,00-$9.99 .. 9 2 4 1 " 2
$10.00-$14,99 13 2 18 1 a) 2
$15.00-$19.99 7 3 9 1 6 3
$20,00-$29.99 17 7 20 a) 16 8
$30,00-$39.99 z 6 9 4 7 6
$40.00-$49.99 5 5 5 9 5 4
$50.00-$59.99 3 7 3 7 3 7
$60.00-$69.99 3 3 6 4 2 3a
$70.00-$79.99 2 4 1 2 2 5
$80.00-$89.99 ) 3 a) 2 ) 3
$90.00-$99.99 0) 5 - 1 ) 5
$100.00-$124.99 a) 7 i) 2 ) 6
$125.00-$149.99 e 6 7) 5 - 6
$150.00-$174.99 - 4 - 5 - 3
$175,00-$199.99 - 3 - 4 - 3
$200.00 or greater - 5 - 14 - 3
Composite rate* .. 9 6 2 1 10 7
Amount varies by employee 12 8 13 10 " 8
Amount varies by earnings ... 4 3 a) 2 5 4
Not determinable .. 8 12 9 13 7 12
* Plans providing services or payments for services rendered in the * A composite rate is a set contribution covering more than one bene-
hospital or by @ physician. Excludes plans that provided only dental, vi _fit area, for example, health care and sickness and accident insurance.
sion, or prescription drug coverage. Gost data for individual plans cannot be determined.
? if the amount of contribution varied by either size or composition’ of * Amount varies by options selected under a ‘cafeteria plan” or bal-
family, the rate for an employee with a spouse and one child was used. _ance of employer-sponsored reimbursement account.
For a small percentage of employees, the employee contributes the
same amount for single and family coverage. NOTE: Because of rounding, sums of individual items may not equal
® Less than 0.5 percent, totals. Where applicable, dash indicates no employees in this category.

62



Table 95. Defined benefit pension plans:' Percent of

full-time participants by provisions for disability retirement,
medium and large private establishments, 1991

Table 96. Defined benefit pension pians:' Percent of
full-time participants by selected plan features, medium and
large private establishments, 1991

Profes-
sional, | Clerical | Produc-
; Allpar. | techni- | and tion and
Characteristic ticipants|°2!.and| sales | service
related | partici- | partici-
partic- | pants | pants
pants
Total with disability retirement
benefits ... 79 75 74 84
Minimum requirements for
disability retirement”
Total... 100 | 100 | too | 100
No minimum requirement 20 15 18 23
No age requirement 54 50 42 61
1 year's service : 7 1 e)
2-4 years’ service iv} Q e) @)
5 years’ service 9 4 8
6-9 years’ service | © iv) - -
10 years’ service .. anf 30 24 19 38
11-14 years’ service 0) 1 rs) -
15 years’ service 15 14 15 15
Less than age 40 QO Qo 1 ()
10 years’ service .. 0) i) 1 i)
Age 40-49 . 2 4 3 1
No service requirement iv) 1 e e
10 years’ service ....... o 1 3 e) i)
More than 10 years’ service 1 1 2 1
Age 50 or more 5 6 7 4
No service requirement .. () ) -
Less than 10 years’ service 1 1 ro) 1
10 years’ service .. 3 4 5 1
More than 10 years’ service 2 1 2 2
Receipt of long-term disability
benefits 18 25 28 W
Benefit provisions
Total .. a 100 | 100 | 100 } 100
Immediate disability retirement* 63 54 53 7
Unreduced normal formula’ .. 46 40 39 62
Reduced normal formuta® ~| 12 12 W 12
Other than normal formula’. 5 1 3 7
Deferred disability retirement .........| 37 46 47 28
With benefits based on:
‘Service when disabled | 8 7 7 9
Service plus credit to retirement
date . .| 28 36 39 18
Service with some credit iv QO iv il
Not based on service 4 2 1 1

* Excludes supplemental pension plans.

? 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,

* ‘Less than 0.5 percent.

* Immediate disability pensions may be supplemented by additional al-
lowances until an employee reaches a specilied age or becomes eligible
for Social Security,

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

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

* The disabled worker's benefit is pot 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 Secu-
tity, and percent of earnings formulas both with and without Social Secu-
rity offsets,

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

99

Profes-
Al sional, | Clerical | Proguation
item nae technical, | and sales y
Participants | sng related participants, eee
participants Particip
Portability of plan benefits} 9 8 10 8

Lump sum distribution of
pension benefits at
retirement allowed ......| 14 15 15 12

Lump sum payment or ad
hoc pension increase
provided between

1986-1990 7 9 7 7
Cost-o-living increases
provided 5 5 6 4

Excludes supplemental pension plans.



Chapter 8. Plan Administration

In addition to collecting the data on individual benefit
plans, the survey explored how insurance and retirement
benefits were administered and financed, and whether
benefits were offered independently or as part of a flexible
benefits program.

Plan sponsor

Single employers predominated as sponsors of most ma-
jor benefit plans offered to full-time workers in the 1991
medium and large establishment survey (table 118). A
large majority of participants in life insurance, health care,
long-term disability insurance, and defined benefit pen-
sion plans were in single-employer plans. Seventy percent
of sickness and accident insurance participants were in
single-employer plans; most of the remaining participants
were covered by State-mandated temporary disability in-
surance benefit plans.** (State plans are discussed in chap-
ter 3.)

Multiemployer plans typically result from collective
bargaining agreements between employers within an in-
dustry or related industries and one or more labor unions.
These plans allow employees moving from one employer
to another within an industry to receive the same or similar
benefits. Of the benefits studied, defined benefit pension
plans were most frequently sponsored by multiemployer
groups, and production and service employees were the
most likely recipients of such benefits. Multiemployer
groups sponsored other benefits including health care and
sickness and accident insurance.

Multiemployer defined benefit pension plans are found
much more frequently in small establishments (fewer than
100 employees) than in medium and large establishments.
The larger representation of multiemployer plans in small
establishments resulted from the predominance of small
establishments in such industries as contract construction
and trucking. The percent of multiemployer pension plan
participants in medium and large establishments doubled
from 1989 to 1991. This may be due to the addition of trav-
eling, operating employees—including over-the-road
truckdrivers—to the 1991 survey.

48 Mandatory benefits were also included for railroad employees. A
small number of workers received sickness and accident insurance
through the Railroad Unemployment Insurance Act, and defined benefit
pension plans through Tier 2 of Railroad Retirement. Railroad Retire-
ment is a Federally mandated defined benefit pension plan for employees
in the railroad and related industries; Tier 2 resembles a private plan.

121

Plan financing

Generally, there were many more participants in wholly
employer-financed plans than in partly employer-financed
plans, with the notable exception of medical care. For the
first time since the survey began in 1979, a greater propor-
tion of workers with medical care coverage had plans part-
ly financed by the employer (for both single and family
coverage) as opposed to wholly employer-financed plans.
Just over half the full-time workers with medical benefits
had to contribute toward the cost of individual coverage;
two-thirds had to contribute toward the cost of family cov-
erage (table 119).

Life and disability insurance plans were predominantly
financed in total by the employer, as were defined benefit
pension plans. For almost all benefits, a greater percentage
of blue-collar workers than white-collar workers partici-
pated in wholly employer-financed plans.

Flexible benefits plans and reimbursement
accounts

Employers have traditionally offered their workers
benefit plans in a number of areas, such as medical care,
life insurance, capital accumulation plans, and retirement
benefits. Employees may have a choice from among a
number of plans in a given benefit area. For example, an
employee may be offered a choice between a traditional
fee-for-service medical plan and a health maintenance or-
ganization. In recent years, new approaches to offering
benefits have emerged. BLS currently collects data on two
such arrangements for offering benefits—flexible benefits
plans and reimbursement accounts.

One in 10 full-time employees in medium and large es-
tablishments were offered flexible benefits plans in 1991
(table 120). Such plans, often called cafeteria plans, allow
employees to design individual benefit packages by choos-
ing from among multiple types of benefits. In a flexible
benefits plan, employers provide each worker with an
amount of “benefits credits.” These credits may equal a
fixed dollar amount for each worker, or an amount that
varies among workers according to earnings, length of ser-
vice, size of family, or other characteristic. The employee
then chooses from various benefits and benefit levels, using
credits to purchase the desired benefits. If the credits do
not suffice to pay for the coverage chosen, employees may
have the option to fund the difference with pretax contri-
butions, as was the case for a majority of employees with



Chart 1. Medical care benefits: Percent of HMO and non-HMO participants by
coverage for hospital room and board charges, medium and large private
establishments, 1991

HMO’s Non-HMO’s

i Covered in full
O Covered subject to
limitations

Chart 2. Medical care benefits: HMO and non-HMO participants with coverage
for selected services, medium and large private establishments, 1991

Percent of participants

100 MHMOo's
CNon-HMO’s

80

60

40

20

Hospital Extended Horne health
room and board care facilities care

40



Chart 3. Defined benefit pension plans: Average replacement rates by age
and final salary, medium and large private establishments, 1991
Average replacement rate
(in percent)
50 DAge 55
WiAge 65
40
30 F
205
10 F
$15,000 $35,000 $55,000
Final annual salary
Note: Data assume 30 years of plan participation.

annuity”). The following tabulation indicates the percent-
age of final salary that pension benefits would replace after
30 years of plan participation, based on whether a survivor
benefit was elected.**

Final Straight- — Joint-and-

annual life survivor Survivor

salary annuity annuity annuity
Age 55

$15,000 26.8 24.1 12.3

$35,000 20.4 18.3 9.3

$55,000 19.3 17.3 8.8
Age 65

$15,000 39.3 35.1 18.5

$35,000 30.8 20.5 143

$55,000 29.0 26.0 13.4

38 For more information on pension replacement rates for retirees and
their survivors in the private sector, see William J. Wiatrowski, "New Sur-
vey Data on Pension Benefits,” Monthly Labor Review, August 1991; pp.
8-22,

At age 55, the average pension for individual employees
(straight-life annuity) equals nearly 20 percent of final an-
nual salary of $55,000. The replacement rate diminishes
slightly to account for survivor benefits. Should the retiree
die, the benefit for the surviving spouse (“survivor annu-
ity”) is almost half that paid to the retiree. (Details on how
survivor benefits are calculated appear later in this sec-
tion.)

Normal retirement

A majority of defined benefit pension plan participants
could retire before age 65 and still receive full private pen-
sions (normal retirement benefits) (table 92). Forty-five
percent of participants were required to be age 65 to re-
ceive such unreduced benefits. Workers who were age 65

* usually did not have to satisfy a length-of-service require-

82

ment; however, some plans may require workers hired af-
ter age 60 to complete at least 5 years of service.

When plans permitted normal retirement prior to age
65, they generally imposed a minimum service require-
ment. For example, normal retirement at age 62 was avail-
able to 24 percent of participants, but nearly three-fifths
had to have worked 10 years or more; 12 percent could re-
tire at age 60, but the majority of these workers also had a
service requirement. Few participants could retire with


e Fewer than 1 in 10 covered workers were in plans
that had granted at least one postretirement increase
to retirees during the previous 5 years.

e@ About one-tenth of covered workers were in plans
that included portability provisions, allowing em-
ployees to transfer pension credits to a new employ-
er.

Defined contribution plans specify employer and em-
ployee contributions but do not guarantee future benefits.
Such plans can be vehicles for financing retirement bene-

- fits if funds can not be withdrawn easily, or they may be
shorter term capital accumulation plans if periodic with-
drawals are allowed. Defined contribution plans were
available to nearly half of the full-time workers and were
more prevalent among white-collar than blue-collar work-
ers.

The most frequently observed types of defined contribu-
tion plans were savings and thrift plans and deferred profit
sharing plans. For participants in these plans:

e Nearly all savings and thrift plan participants were
required or allowed to contribute funds on a pretax
basis, deferring income taxes until the plan pays out
funds. These plans are a type of 401(k) plan;

e The typical employer matching rate in a savings and
thrift plan was 50 percent, and it generally applied to
the first 6 percent of earnings the employee saved;

e Benefits from deferred profit sharing plans were de-
termined by a stated formula or at the discretion of
the company.

Flexible benefits plans and reimbursement
accounts

Employees may receive benefits independently or as
part of a package, complete with options, known as a flexi-
ble-benefits or cafeteria plan, Such plans were available to
1in 10 full-time workers in the 1991 medium and large pri-
vate establishment survey. Cafeteria arrangements let em-
ployees choose among several benefits, such as medical
care, life insurance, and vacation days and among several
jevels of care within a given benefit.

Employer-sponsored reimbursement accounts were
available to nearly two-fifths of full-time workers in 1991.
These accounts provide funds for employees to pay for ex-
penses not covered by existing benefit plans, such as child-
care expenses and medical care deductibles. Accounts
may include employer funds, employee funds contributed
on a pretax basis, or both.

Other benefits

In addition to the major benefits just described, the sur-
vey estimated the incidence of 22 other benefits. These
data show the percent of workers eligible for a specific
benefit, but not the proportion of employees actually tak-
ing advantage of that benefit.

Of these benefits, the most frequently offered was em-
ployer-subsidized parking, which was available to nearly
nine-tenths of full-time employees. Parking benefits in-
cluded onsite facilities offered without charge and reduced
rates at commercial lots.

Educational assistance provides full or partial reim-
bursement of employee expenses for books, tuition, and
fees. About three-fourths of full-time employees were eli-
gible for job-related educational assistance, but non-job-
related educational assistance was only offered to about
one-quarter of workers.

Nonproduction cash bonuses were available to one-
third of full-time employees, employee discounts to nearly
half, and employer gifts to one-quarter. The incidence of
these benefits differed little between blue- and white-collar
workers.

Two employer-subsidized health promotion services—
wellness programs and employee assistance programs—
were surveyed in 1991. Employee wellness programs were
offered to one-third of full-time employees. Independently
of medical care benefits, these programs offered items such
as exercise and physical fitness programs, weight control
clinics, smoking-cessation programs, and stress manage-
ment courses, to foster healthy lifestyles.

Employee assistance programs were available to slightly
more than one-half of the workers. These programs fur-
nished employee referral and counseling services concern-
ing such problems as. alcoholism, drug abuse, and emo-
tional difficulties, Employee assistance programs relate
closely to employee wellness programs and typically deal
with more serious personal problems than the essentially
preventive medical issues addressed by wellness programs.
An additional health-related benefit, in-house infirmaries,
was available to one-third of employees.

Less than 10 percent of full-time employees in medium
and large private establishments were offered the follow-
ing family-related benefits:

e Long-term care insurance, often purchased with em-
ployee funds at group rates, covers extended home
health care or nursing home stays, and may be avail-
able for employees, spouses, or other relatives.

e Child-care benefits include employer-subsidized fa-
cilities or full or partial reimbursement to employees
for the cost of caring for a child in a nursery, daycare
center, or by a baby-sitter, on or off the employer’s
premises.®

6 For further analysis of dependent care, see Stephanie L. Hyland,

“Helping Employees with Family Care,” Monthly Labor Review, Septem-
ber 1990, pp. 22-26. :



Contents—Continued

Related protection .. 72
Service requirements . 72
Chapter 6. Defined benefit pension plans . . 19
Benefit formulas : 79
Private benefits and Social Security payments . 80
Maximum benefit provisions . . 81
Replacement rates ... 81
Normal retirement . 82
Early retirement ... 83
Disability retirement . 83
Postponed retirement 83
Postretirement pension increases 84
Vesting 84
Portability ..... 84
Postretirement survivor benefits . 85
Preretirement survivor benefits . 85
Employee contributions .... 85
Participation requirements . eee bene e eens 86
Chapter 7. Defined contribution plans . 104
Plan types ... 104
Cash or deferred arrangements . 105
Savings and thrift plans 105
Profit-sharing plans ...... 107
Participation and vesting . . 107
Chapter 8. Plan administration . we 121
Plan sponsor ... eee 121
Plan financing .. .. 121
Flexible benefits plans and reimbursement accounts . . 121
Part-time Employees
Chapter 9. Benefits for part-time employees . . we. 126
Work schedule . . 16
Time off ....... - 126
Insurance, retirement, and other benefits .. . 126
Appendixes:
A. Technical note ve. 129
B. Availability of the survey’s data base .. « 138
Charts:
1. Medical care benefits: Percent of HMO and non-HMO participants by coverage for hospital room
and board charges 40
2.. Medical care benefits: HMO and non-HMO participants with coverage for selected services 40
3. Defined benefit pension plans: Average replacement rates by age and final salary ...............0005 82
Tables:
Full-time employees in medium and large private establishments, 1991:
1. Summary: Participation in selected employee benefit programs . 5
2, Other benefits: Eligibility for specified benefits 6



Chapter 4. Medical, Dental,
and Vision Care

Medical Care

Medical care benefits were provided to 83 percent of
full-time employees in medium and large private establish-
ments in 1991. Among those workers with medical care
insurance:

e Just over one-half had to pay a plan premium for in-
dividual coverage; approximately two-thirds paid
part of the cost for family coverage;

@ One-third were covered by nontraditional medical
care plans, that is, health maintenance organizations
(HMO’s) or preferred provider organizations
(PPO’s);

Virtually all participants in traditional fee-for-ser-
vice plans were subject to an annual deductible; the
average annual deductible was $198;

@ Slightly over four-fifths of participants in fee-for-ser-
vice plans had an annual limit on individual out-of-
pocket expenses; the average limit was $1,170;

@ Mental health coverage, and alcohol and drug abuse
treatment, though available to nearly all partici-
pants, have more restrictive provisions than other
ailments;

e@ Nearly two-thirds of workers covered by fee-for-ser-
vice plans were required to get preadmission certifi-
cation before entering the hospital.

Coverage of selected categories of medical care

All of the participants in medical care plans had cover-
age for hospital room and board. With few exceptions,
coverage was provided for physicians’ visits in the hospi-
tal, surgery, x-ray and laboratory services, physicians’ of-
fice visits, mental health conditions, and out-of-hospital
prescription drugs (table 39). Virtually all participants
were covered by inpatient alcohol and drug detoxification
benefits. Coverage was somewhat less extensive for inpa-
tient and outpatient substance abuse rehabilitation bene-
fits.

37

Among benefits less frequently provided were hearing
care (24 percent of participants), routine physical exams
(30 percent), well-baby care (36 percent), and immuniza-
tions and inoculations (30 percent).

Funding arrangements

In 1991, two-thirds of full-time medical plan partici-
pants in medium and large private establishments were
covered by a fee-for-service medical plan (table 40). These
plans pay for specific medical procedures as expenses are
incurred. There are generally three arrangements for fi-
nancing plan benefits: Self-insured plans, commercially
insured plans, and Blue Cross/Blue Shield plans. Self-in-
sured plans (in which the plan sponsor—typically the em-
ployer—bore the financial risk for making plan payments)
covered one-half of fee-for-service participants. Commer-
cially insured plans covered one-fourth of the fee-for-ser-
vice participants, and Blue Cross/Blue Shield plans cov-
ered just under one-fifth of the participants. In addition, a
small proportion of fee-for-service participants had their
benefits financed by more than one source.

In 1991, preferred provider organizations (PPO’s) cov-
ered 16 percent of medical care participants in medium
and large private establishments. PPO’s offer a higher
benefit for services rendered by designated health care pro-
viders (such as hospitals and physicians), although partici-
pants are free to choose any provider. Designated provid-
ers agree in advance to a given fee schedule.

Seventeen percent of medical care participants covered
by the survey were enrolled in health maintenance organi-
zations (HMO’s). HMO’s provide a prescribed set of bene-
fits to enrollees for a fixed payment. The HMO thus bears
the risk associated with delivering care.” In this survey
HMO’s are classified as either group/staff, with services
provided in central facilities, or as individual practice as-
sociations (IPA’s), with providers working from their own
offices. The following tabulation shows the percent of
HMO participants by type of plan in 1991:

Percent of
participants

Plan type

49
43
8

Group/staff .
Individual practice association ..
Combination

12 Fora more detailed discussion on HMO’s, see Thomas P. Burke and
Rita 8. Jain, “Trends in Employer-Provided Health Care Benefits,”
Monthly Labor Review, February 1991, pp. 24-30.



Table 65. Dental care benefit

3 Percent of full-time pat

large private establishments, 1991—Continued

pants by extent of coverage for selected procedures, medium and

Type of dental procedure

Extent of coverage . . , 7
Examing Dental 1 Fiings | DEC, | Inlays | Crowns Periodontal! Encodon- | prosthetics Onnodon
Clerical and sales
Total 100 100 100 100 100 +00 400 100 100 100
Covered | 100 100 100 98 96 99 97 98 98 70
‘Scheduled cash allowance .. 10 10 18 16 16 18 16 16 7 i
Incentive schedute* 2 2 2 2 0) e 2 2 iv) ~
‘Subject to copayment! 1 1 1 3 3 4 4 3 4 3
Percent of usual, customary,
and reasonable charge .. 86 87 78 76 76 75 76 76 66
Less than 50 ces i) o) v) io) a) a) a) (9) a)
50 iv) 1 5 6 51 5t 8 6 55 a7
- - rv) i) - ~ ) iv) rv) -
1 1 2 3 6 6 2 3 6 2
1 1 2 2 2 2 2 2 2 1
1 1 4 4 4 3 4 4 3 1
20 24 48 48 8 8 47 48 7 2
iv) 1 3 3 1 1 3 3 e -
2 3 3 3 2 2 3 3 1 e
62 55 10 6 2 2 6 7 2 12
Discounted io a) a) o) () a) i) 0 o) 0)
Subject to overall plan
provisions only* 1 1 1 1 1 1 1 -
Not covered ° 1) 1 4 1 0 2 30
Not determinable - - - 1 a) - 1 1 °) -
Production and service
Total 100 100 100 100 100 100 100 100 100 100
Covered 100 100 100 98 95 98 98 98 98 74
Scheduled cash allowance 15 45 20 16 19 19 18 7 18 1
Incentive schedute* (a) iG) 1 1 i) 1 1 a) -
‘Subject to copayment 2 1 2 5 3 6 5 6 7 8
Percent of usual, customary,
and reasonable charge 83 83 76 nm n 74 74 72 69
Less than 50 ic) a) ) iv) a) i) a) (a) io)
1 1 6 40 39 8 6 53 47
- = 0 - ~ i) is) VW) -
7) iv) 1 1 5 5 1 1 5 2
1 1 2 2 2 2 2 2 1 1
1 1 4 4 2 2 4 4 2 1
14 16 38 40 8 8 37 38 7 2
ro) 4 6 5 3 3 6 6 a) -
2 10 9 9 8 8 9 9 1 )
64 50 12 9 3 3 7 7 3 15
Discounted benefit” i) 7) ° i) ) 0) ° ° ) .)
Subject to overall plan
provisions only® 1 1 1 1 1 1 1 4 1 -
Not covered... o) a) e 1 5 2 1 2 26
Not determinable - - - 1 ) - 1 1 ro) ~

‘Excludes plans that limited coverage to accidental injuries, removal of
impacted wisdom teeth, or repair of jaw.

* Participants were included as having coverage for orthodontia in
cases where benefits were limited to children.

* Less than 0.5 percent.

* Reimbursement arrangement in which the percentage of dental ex-
penses paid by the plan increases if regular dental appointments are

scheduled.

* Participant pays a specific amount per procedure and plan pays all re-
maining expenses. In the case of orthodontia, the copayment is generally

68

applied once per lifetime.

* Includes plans that paid the full cost and plans that paid 100 percent
of charges, but imposed a deductible and jimited payment to a maximum

dollar amount.

* Benefits provided at a discount if obtained from an approved provider.
* Reimbursement arrangement is the coinsurance provision used for all

covered expenses under the plan.

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

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



Table 79 . Life insurance: Percent of full-time participants
in plans with multipfe of earnings and flat dollar amounts
of insurance by availability of supplemental benefits,
medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
Allpar. | techni: | and | tion and
Item ticipants |C@l and] sales | service
Panis’ related | partici- | partici-
partici- | pants | pants
pants
Multiple of earnings . 100 | 100 | 100 | 100
With supplemental .. 66 69 69 6t
Without supplemental 32 29 3t 38
Data not available .. 1 1 1 2
Flat amoutt .... 100 | 100 | 100 | 100
With suppiemental.. a7 54 43 30
Without supplemental 61 45 55 68
Data not available .. 3 1 2 3

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

77



Employee Benefits in
Medium and Large Private
Establishments, 1991

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

Bureau of Labor Statistics
May 1993

Bulletin 2422



Table 101. Defined benefit pension plans:' Percent of
full-time participants by age and length-of-service
requirements for participation,” medium and large private
establishments, 1991

Profes-
sional, | Clerical | Produc-
techni- | and | tion and
cal, and} sales | service
related | partici- | partic
partici. | pants | pants
pants

‘Age and service requirement | Alll par-
provision® ticipants

Total 100 | 100 | 100

Plan participation available to new

employees 100 | 100 100 100

With minimun age and/or

service requirement a tal 81 65 |
Service requirement only .. 26 23 21 30 |
3 months or less .. 2 2 2 3
4-5 months 1 0 1 1
6 months 1 1 2
1 year 24 20 17 23
43-23 months iv) iv) iV) iv)
2 years .. 0) - 6 0)
Age 20 OF 188 enon 1 1 1 1
No service requirement .. 0) 0) 0 0)
1 year of service . ro) 0) 0) 0)
Age 21 41 44 54 33
No service requirement 4 2 4 6
1-6 months of service 1 «) 1 1
7-11 months . re) iv) iv) iv)
1 year of service .. 36 4a 49 26
Age 22 or older 3 4 4 1
No service requirement... (°) y) 0 0
4-11 months of service a) 0) ty) 0)
1 year of service .. 3 4 1

Over 1 year of service

Without minimum age and/or
service requirement

Participation not available to new
employees

* Excludes supplemental pension plans.

? Excludes administrative time lags.

* Ifa plan had alternative participation requirements, one of which was
service only, the service only requirement was tabulated.

* Less than 0.5 percent.

* The Internal Revenue Code requires that nearly all plans must allow
participation to full-time employees who have reached the age of 21 and
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.

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

103



Chapter 9. Benefits for
Part-time Employees

In 1991, the survey collected information on the inci-
dence and details of employee benefits for part-timeTM
workers in medium and large private establishments for
the first time. For just about every benefit, a smaller per-
centage of part-time workers were covered as compared to
full-time workers. (See table 122.)

Part-time workers were more likely to receive paid time-
off benefits such as vacations and holidays than insurance
benefits. In addition, a fairly large percentage of part-time
workers were eligible for benefits such as subsidized park-
ing and employee discounts.

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

Work schedule

Part-time workers typically worked 5 days per week but
fewer than 5 hours per day. Sixty-two percent of part-time
workers worked 5 hours or fewer per day, but 16 percent
worked 8 hours per day. Eighty-seven percent worked less
than 30 hours per week.

Time off

Paid time off was the most prevalent type of benefit pro-
gram available to the part-time work force. Just over half
of all part-time workers were eligible for paid vacations
and rest time, and just over two-fifths were eligible for paid
holidays and jury-duty leave. Paid personal, military, and
parental leave were rare.

When employers granted part-time workers paid time
off, they generally had fewer days off than full-time work-
ers. For example, full-time workers averaged 10.2 holidays
per year, and part-time workers averaged 8.2 per year. Ad-
ditionally, at 3 years of service, part-time workers aver-

5 Employees are classified as full time or part time in accordance with
the practices of surveyed establishments. Part-time workers are typically
scheduled to work fewer hours per week than full-time workers in the
same work activity.

126

aged 9.6 vacation days per year, compared with 11.1 days
for full-time workers with the same length of service. Simi-
lar differences were observed for paid sick leave.

In addition, leave provisions for part-time workers were
usually prorated based on their work schedule. For exam-
ple, if part-time employees worked 4 hours per day, 5 days
per week, they would receive 4 hours’ pay for one paid hol-
iday and 20 hours pay for one week of paid vacation.

Insurance, retirement, and other benefits

Medical care, life insurance, and defined benefit pension
benefits were each offered to about 3 out of 10 part-time
workers. Benefits, such as dental insurance and long term
disability insurance, were less prevalent.

Just over one-quarter of part-time workers were covered
for medical care, compared with over four-fifths of full-
time workers. Similar to full-time workers, a larger per-
centage of part-time workers were covered by plans that
required a contribution than were covered by wholly em-
ployer-financed plans.

Approximately one-third of part-time workers were
covered by life insurance, and one-fifth were covered by
sickness and accident insurance. Among full-time work-
ers, almost half were covered by sickness and accident in-
surance, and nearly all had life insurance.

Two-fifths of part-time workers participated in a retire-
ment plan; full-time workers were nearly twice as likely to
participate in one. As with full-time workers, defined
benefit pension plans were more prevalent than defined
contribution plans.

Other benefits offered most often were subsidized park-
ing, available to over four-fifths of part-time workers, and
employee discounts, available to half of the part-time
workers (table 123). Approximately one-third of part-time
workers could participate in employee assistance pro-
grams, and one-fifth were eligible for nonproduction bo-
nuses.



Contents
Page

Chapter 1. Incidence of employee benefit plans
Time-off benefits ....
Disability benefits .
Medical, dental, and vision care and life insurance .
Defined benefit pension and defined contribution plans .
Flexible benefits plans and reimbursement accounts ..
Other benefits

wonmrermee

Full-time Employees

Chapter 2. Work schedules, paid time off, and parental leave .
Work schedules .
Paid time off ....

Paid lunch and rest periods
Paid holidays ...
Paid vacations ..
Paid personal leave ...... 0.0 e esse cece r eens ee eeee
Paid funeral leave, jury-duty leave, and military leave .
Parental leave

Chapter 3. Disability benefits . 16
Paid sick leave ........... 16
Sickness and accident insurance . 16
Long-term disability insurance ... 17

Chapter 4. Medical, dental, and vision care . 37
Medical care .........0...6..0000 200s 37

Coverage of selected categories of medical care 37
Funding arrangements . 387
Payment arrangements . 38
Overall limitations .. 38
Hospital coverage ... 39
Alternatives to hospitalization .. 39
Surgical coverage ... 41
Cost containment ... Al
Prescription drug benefits ... 42
Mental health coverage ..... 42
Alcohol and drug abuse treatment .. 43
Health maintenance organizations (HMO’s) .. . 43
Other medical benefits .. 43
Employee contributions . 44
Participation requirements . 44
Coverage for retired workers . 44
Dental care .. 44
Vision care . 45

Chapter 5. Life insurance val

Types and amounts of benefit formulas 71

Coverage for older active workers and retirees... 0... 66.6 c eck cee teeter nent een e ene t nes 72



Chapter 7. Defined Contribution

Plans

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

In 1991, 48 percent of the full-time employees in me-
dium and large private establishments—approximately
14.8 million employees—participated in one defined con-
tribution plan or more. Fifty-five percent of the white-col-
lar workers, compared to 39 percent of the blue-collar
workers, participated in these plans.

Key details from the 1991 data on defined contribution
plans include:

e@ 44 percent of full-time employees were enrolled in a
plan with a cash or deferred arrangement (popularly
known as a 401(k) plan);

@ 29 percent of full-time employees participated in a
savings and thrift plan, the most prevalent defined
contribution plan available;

e@ The most common employer matching rate in a sav-
ings and thrift plan was 50 percent, up to the first 6
percent of earnings saved by the employee;

Most savings and thrift plan participants who were
offered a choice of investment vehicles could choose
from among three or more options;

e 45 percent of full-time participants in savings and
thrift plans were allowed to borrow from their ac-
counts.

Plan types

Defined contribution plans may be divided into those
designed to provide retirement benefits and those intended
for capital accumulation. Retirement plans, as defined in
this study, do not allow withdrawal of employer contribu-
tions until retirement age, death, disability, separation
from service, age 59'/2, or hardship. Capital accumulation

104

plans, on the other hand, impose less stringent restrictions
for withdrawal of employer contributions, for example,
permitting one or two withdrawals per year, or allowing
withdrawal after 2 or 5 years of service.

Defined contribution retirement plans enrolled 39 per-
cent of the employees covered by the survey. Taken togeth-
er with participants in defined benefit pension plans
(which, as described in chapter 6, are always for retire-
ment purposes), 78 percent of employees surveyed partici-
pated in at least one retirement plan.

Participation in capital accumulation plans was not
widespread. Nine percent of employees were in such plans,
and for all but 1 percent, this only supplemented a defined
benefit or defined contribution retirement plan (table 102).
The combined incidence of retirement and capital accu-
raulation plans was slightly lower than that recorded in the
1989 survey.

Defined contribution plans may also be classified by
type of plan (table 103). The survey provided data on the
following types: Savings and thrift plans (with 29 percent
of full-time employees participating); profit-sharing plans
(16 percent); money purchase pension plans (7 percent);
employee stock ownership plans (3 percent); and stock bo-
nus plans (less than one-half of 1 percent).** Plans that al-
lowed the purchase of company stock at below market
price (stock purchase plans), or that allowed the purchase
of stock in the future at a designated price (stock option
plans) applied to very few workers. Savings and thrift and
money purchase pension plans were more common among
white-collar workers, and profit-sharing plans more often
prevailed among blue-collar workers.

Note that most defined contribution plans serve to provide retire-
ment income or to accumulate financial assets. Capital accumulation
plans may furnish retirement income because withdrawals of the employ-
er’s contributions are voluntary, not mandatory. Similarly, defined con-
tribution retirement plans can be used to accumulate assets, because these
plans nearly always permit preretirement withdrawals of the employer's
contributions (for example, at age 59 '/,, upon termination of employ-
ment prior to retirement, or upon disability). Many of these plans also
permit employees to receive a lump sum, rather than an annuity, upon
retirement.

45 A money purchase pension plan provides for a pension annuity or
other form of retirement income that is determined by fixed contribution
rates plus earnings credited to the employee's account. A stock bonus
plan specifies employer or employee and employer contributions toa trust
fund that invests in various securities. Employee stock ownership plans
are generally wholly employer financed, and they are designed to distrib-
‘ute company stock to employees periodically. Savings and thrift and pro-
fit-sharing plans are described later in this chapter.



Table 26. Paid sick leave: Percent of full-time participants
by length-of-service requirement for participation, medium
and large private establishments, 1991

27. Paid annual sick teave: Percent of full-time
ipants in plans allowing use of sick leave for other
purposes, medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
Al par. | techni. | and tion and
Other purposes ticipants| 2! and| sales | service
related | partici- | partic
partici- | pants | pants

pants

Profes-
sional, | Clerical | Produc-
‘All par. | techn | and | tion and
Length-of-service requirement | ic; hing | Cal, and} sales | service
related | partici- | partici-
partici- | pants | pants
pants
Total .. 100 | 100 | 100 | 100
With service requirement . 57 46 59 66
1 month 10 4 or 8
2 months 2 1 2 3
3 months 16 14 7 18
4-5 months . 0) 0) 1 iv)
6 months 19 15 20 20
7-11 months 9) 0) 10) 0)
FCA enn 9 4 7 15
Over 1 year 0) 0 O) 1
Without service requirement 36 46 a 29
Data not available sone] B 8 10 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.

25

Total .... 100 | 100 | 100 | 100
Other purposes allowed! ... 65 65 63 67
Funeral nen 13 15 12 13
Doctors’ appointments 55 87 52 87
Personal business .. 16 14 15 18
Care Of Sick Chit nen 36 39 36 33
Other... 1 1 1 i)
Other purposes not allowed 32 32 34 30
Data not available .. 3 3 2 3

" This total is smalter than the sum of the components because some
employees could use sick leave for more than one other purpose.
* 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.



creases were determined actuarially to reflect the older re-
tiree’s receipt of his or her pension over a shorter retire-
ment period.

Postretirement pension increases

Inflation can severely erode the purchasing power of a
fixed pension over a worker’s retirement years. To guard
against this, some pensions are adjusted on a discretionary
basis, and others are subject to automatic increases speci-
fied in the pension plans. Plans that increased pensions for
current retirees at least once during the 1986-90 period
covered 11 percent of plan participants, down substantial-
ly from 28 percent in the 1984-88 period reported in 1989.
Most of these increases were discretionary, or ad hoc, rath-
er than automatic (table 96).

Because the survey counts the number of current em-
ployees covered by defined benefit pension plans and not
the number of retirees, the survey cannot specify the pro-
portion of annuitants actually receiving postretirement
pension increases. Thus, the measures discussed in this
section describe the incidence of postretirement increases
among active plan participants.

Ad hoc pension increases are not directly linked to a
cost-of-living index. Instead, retirees’ current pensions
usually increase by a percent of the present benefit, com-
monly a uniform amount. During the 1986-90 period, 7 of
10 participants in pension plans granting ad hoc increases
were in plans providing one increase, usually no greater
than 5 percent of the current pension amount. In contrast,
during the 1984-88 period, nearly half of the participants
in pension plans providing ad hoc increases were in plans
providing 2 to 5 increases.

Plans granting automatic increases in pension benefits
to compensate for increases in the cost of living covered 5
percent of all participants (table 96). In most instances,
these cost-of-living adjustment formulas were based on
changes in the BLS Consumer Price Index. Adjustments
were often restricted, however, by provisions that limited
the benefit change to a portion of the CPI change or by
ceilings (generally 3 percent or less) on the periodic in-
crease that could be applied. Plans providing cost-of-living
increases most often called for annual adjustments.

The survey also yielded information on the incidence of
lump-sum payments made to current retirees to compen-
sate for inflation. In 1991, less than 0.5 percent of partici-
pants were in plans that gave retirees lump-sum payments.

Vesting

Even when an employee leaves an employer before be-
coming eligible for either a normal, early, or disability re-
tirement benefit, a plan may ultimately pay a pension
(tables 97 and 98). If certain conditions are satisfied at the
time of separation, workers have a vested interest in all ora
portion of their accrued pension benefits and may begin
receiving benefits years later.

84

Although all pension participants are entitled to vested.
benefits under the Employee Retirement Income Security
Act (ERISA), some variations exist as to when this occurs.
Asa result of the Tax Reform Act of 1986, however, most
plan sponsors adopted shorter vesting schedules in the
past few years. For example, 76 percent of the partici-
pants in defined benefit pension plans had to complete 5
years of service before benefits were guaranteed (cliff vest-
ing), up substantially from 50 percent reported in 1989
and 5 percent in 1988. In contrast, the number of partici-
pants in plans requiring 10 years of service for cliff vesting
declined from 77 percent in 1988 to 38 percent in 1989,
and then to 16 percent in 1991.

Most commonly, participants accrued years of vested
service regardless of age, although 7 percent were affected
by the plan sponsor’s right to exclude years of service be-
fore a specified age in determining vesting eligibility. Par-
ticipants not in plans with cliff vesting generally were cov-
ered by a graduated vesting provision, which increased the
portion of guaranteed benefits as years of service in-
creased, Full vesting usually came after 7 years.

Unreduced vested pension payments begin at the plan’s
normal retirement age, based on the benefit formula in ef-
fect when the employee left the plan. As an alternative, ter-
minated and vested participants may receive a reduced
pension prior to normal retirement age if the participant
had satisfied the early retirement service requirement be-
fore leaving the plan.

For terminated and vested employees who wish to re-
ceive a pension beginning prior to normal retirement age,
ERISA requires the benefit to be at least the actuarial
equivalent of what would have been received starting at
age 65. The actuarial equivalent benefit is a reduced
amount determined by the life expectancy at the age that
pension payments begin. Although under ERISA the re-
duction factor used in determining the pension for termi-
nated and vested employees can be more severe than for
early retirement, the same factor was used in plans cover-
ing 49 percent of the participants with early retirement
provisions. When reductions differed, it was most com-
mon to provide actuarial reductions to deferred vested
benefits, eliminating the subsidy employers give to em-
ployees choosing early retirement.*'

Portability

For the first time, survey data addressed the portability
of pension benefits, that is, the ability to transfer years of
credited service or accumulated benefits from one employ-
er to another. In 1991, 1 out of 10 full-time employees with
a defined benefit pension plan was covered by a portability

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

*' For additional details on pian vesting requirements, see Avy D.
Graham, “How Has Vesting Changed Since Passage of Employee Retire-
ment Income Security Act?,” Monthly Labor Review, August 1988, pp.
20-25.


Chapter 6. Defined Benefit
Pension Plans

A defined benefit pension plan obligates an employer to
provide retirement benefits calculated by a formula speci-
fied in the plan. Benefits generally are based on salary,
years of service, or both. An employer, however, ordinari-
ly has considerable latitude in financing these benefits. In
1991, 59 percent of full-time employees in medium and
large private establishments participated in defined benefit
pension plans, continuing a gradual decline in coverage re-
ported by EBS since 1980. Employers are shifting from the
traditional defined benefit plans toward relatively new
types of defined contribution plans, such as 401(k) plans.
Despite this shift, the defined benefit plan, with nearly 18.3
million participants in 1991, continues as the primary re-
tirement vehicle in medium and large private establish-
ments. Defined contribution plans, which specify employ-
er and—if applicable—employee contributions, but do not
guarantee a specific benefit, are discussed in the next chap-
ter.
The Employee Benefits Survey examined a variety of
provisions in defined benefit pension plans. Major findings
include:

e The most prevalent method of determining defined
benefit pension benefits was through a terminal
earnings formula, which based benefits on average
earnings during the last few years before retirement;

e 9of 10 participants could retire at age 55 or earlier,
although typically with benefits reduced to account
for receipt of benefit payments over a longer period
of time;

e Based on 30 years of plan participation and a final
salary of $35,000, an employee retiring at age 55,
when no Social Security benefits are available, could
expect an average benefit equal to about 20 percent
of final salary; in contrast, at age 65, the average pen-
sion equaled nearly 31 percent of final salary, and 63
percent when primary Social Security benefits are
included;

76 percent of participants could become vested or
have a guaranteed right to their accrued pension
benefits after working 5 years;

79

e 9 percent of covered workers were in plans that al-
lowed portability or transfer of pension benefits from
one employer to another;

e 13 percent of participants were in plans that offered
an option to receive a full /ump sum rather than an
annuity at retirement.

Benefit formulas

Earnings-based formulas applied to 70 percent of the
employees covered by defined benefit pension plans (tables
82 to 87). Such formulas pay a flat percent of the em-
ployee’s annual earnings per year of service (for example,
1.5 percent of earnings times 30 years of service, or 45 per-
cent of annual earnings), or a percent that varies by ser-
vice, earnings, or age.

Approaches to calculating annual earnings and the rate
paid per year of service vary. For 80 percent of the partici-
pants with earnings-based formulas, pensions were based
on earnings in the final years of employment (terminal-
earnings formula); for the remainder, an average of career
earnings was used (career-earnings formula).

For 82 percent of the participants with terminal-earn-
ings formulas, terminal earnings were defined as the aver-
age over a 5-year period. Such formulas usually designated
the 5 consecutive years with the highest earnings out of the
last 10 years before retirement.

Nearly three-fifths of participants in plans with termi-
nal-earnings formulas had benefit formulas that varied ac-
cording to service, earnings, or a combination of the two
factors; this marked a switch from the flat percent of earn-
ings per year of service that was more prevalent in 1989
and earlier surveys. As an example of variations by service
and earnings, a terminal-earnings formula might credit an
employee with 1 percent of earnings up to the first $12,000
in each year of service plus 1.5 percent of the earnings ex-
ceeding that amount. The annual pension payment equals
the sum of these credits. (This approach, boosted by recent
changes in the regulations for coordinating pensions with
Social Security benefits, is often followed to lower employ-
er pension costs for those wages upon which Social Securi-
ty taxes are paid, as described in the next section.) When
terminal-earnings formulas specified a uniform percent
for each year of service, the average was 1.49 percent.

Similarly, formulas based on career earnings typically
provided participants with percentages that varied, usual-



Chapter 2. Work Schedules,
Paid Time Off, and
Parental Leave’

The majority of full-time employees worked a 40-hour
week. Time off with pay is available to employees in sever-
al different forms—from daily rest periods to annual vaca-
tions of several weeks. In 1991, the EBS covered the fol-
lowing paid time-off benefits: Lunch and rest periods; holi-
days and vacations; and personal, funeral, jury-duty, and
military leave. Paid and unpaid maternity and paternity
leave were also surveyed. (Information on paid sick leave
appears in chapter 3.)

Work schedules

Weekly work schedules of 40 hours were predominant,
applying to almost four-fifths of the full-time employees
covered by the survey (table 3). Alternatives, such as 35 or
37'/, hours per week, were most common among white-
collar workers. About four-fifths of the work force were
scheduled to work five 8-hour days.

Nine percent of workers studied had formal flexible
work arrangements, which give employees the opportuni-
ty to begin and end work within a range of hours. Limits on
the amount of flexibility varied from plan to plan, but gen-
erally, employees had to be at work during midday core
hours. White-collar workers were almost 3 times as likely
to have flexible work schedules than were blue-collar
workers.

Paid time off

Paid lunch and rest periods. Formal paid lunch periods
were provided to less than one-tenth of the employees, and
two-thirds were provided formal rest time, such as coffee
breaks and cleanup time (tables 4 and 5). Both benefits
were more common among production and service work-
ers than among the other two occupational groups.
Blue-collar employees who could take paid lunch peri-
ods averaged 26 minutes per day, and their white-collar
counterparts averaged 39 minutes each day. Paid rest
time, averaging 26 minutes a day, was provided most com-
monly as two daily breaks of 10 or 15 minutes each.

Paid holidays. Paid holidays, averaging 10.2 days per year,
were provided to 92 percent of full-time employees. Float-
ing holidays and “personal holidays,” such as employee

birthdays, were included in the holiday plans reported
(tables 6 to 8).

When a holiday fell on a scheduled day off, such as a Sat-
urday or Sunday, another day off was regularly granted to
four-fifths of the employees receiving paid holidays. Most
of the remaining workers received either another day off or
an additional day’s pay, depending on when the holiday
fell.

Paid vacations. Paid vacations were provided to 96 percent
of full-time employees (table 9). Vacation pay provisions
for all employees averaged 9.3 days at 1 year of service,
16.5 days at 10 years, 20.4 days at 20 years, and 21.9 days
at 30 years.

Plans covering white-collar employees generally pro-
vided more vacation days than those for blue-collar em-
ployees. About one-third of white-collar employees, for
example, were eligible for 20 or more days of vacation at 10
years of service compared with just under one-fifth of blue-
collar employees.

In cases when holidays, vacation, sick leave days, or per-
sonal leave are combined under one leave category and
could not be shown separately, the total amount of leave
was reported as vacation time. These consolidated leave
plans or “leave banks” have been adopted by a number of
establishments, most notably those that must always re-
main open, such as hospitals and nursing homes. Three
percent of full-time employees were covered by leave bank
plans, which typically offered a greater average number of
days than vacation plans that were not leave banks.

Almost all white-collar employees received their regular
salaries or earnings during vacation periods. Nearly nine-
tenths of blue-collar employees also received their regular
pay; the remainder received either a flat-sum payment or
payments based on a percentage of regular earnings. Anni-
versary-year bonus vacation days, such as an extra week of
vacation at 10 and 20 years of service, were included in the
count of regular vacation time.

Virtually all employees covered by vacation plans had to
work a specified period of time before being able to take a
vacation (table 10). The most prevalent length-of-service
requirement was 1 year for both white- and blue-collar
participants. Blue-collar workers were much more likely



Table 40. Health care benefits: Percent of full-time participants by arrangement for payment to providers and type of
financial intermediary, medium and large private establishments, 1991

All participants
Fee arrangement and financial

Professional, technical, and

intermediary Medical | Dental | Vision | Medical

care’ | care | care | care’

Total .. 100 | 100 | 100 | 100

Traditional fee-for-service 67 | 91 a1 62

No intermediary-self

insured. 33 46 43 28

Commercial insurance company| 17 | 30 | 12 | 16

Blue Cross-Blue Shield nue] 12 8 5 | 44
Independent organization .......| @) 1 1 -
Medical or dental society - 5] wi] -
Other .. 1 1 2 1

Combined .. : 4 11 6 4

Preterred provider organization* 16 3 7 | 19

No intermediary--self “ ‘

insured? . 6 1 3 8
Commercial insurance company} 6 1 (a) 6
Blue Cross-Blue Shield 3 ° io} 3
independent organization oe) 1 2 1
Medical or dental society = 1 2 -
Other .. io) - - -
Combined 1 - 1

Prepaid health maintenance
organization® 7 6 Wt 18
No intermediary--self

insured? .. iv) iv) iv) e)
Commercial insurance company| 2 2 1 2
Blue Cross-Blue Shield 2 1 2 2
Independent organization 12 3 7 14
Medical or dental society - 0) 1 -
Other . - ta) - -
Combined iv) - is) i)

Other .. i) () 1 1

Clerical and sales Production and service
related participants participants participants
Dental | Vision | Medical} Dental | Vision | Medical | Dental | Vision
care | care | care’ | care | care | care’ | care | care
100 | 100 | 100 } 100 | 1400 | 400 | 100 | 100
91 79 59 92 78 73 90 83
45 39 29 46 37 39 48 48
30 12 15 31 15 19 29 1
8 6 12 8 8 iu 7 4
i) 1 Vv) 1 1 i) 1 2
6 19 - 6 15 - 3 15
1 2 1 1 2 1 1 2
1 - 3 e - 4 1 7)
3 7 21 3 9 12 4 7
1 2 7 1 2 4 2 4
1 iv) 9 1 - 3 1 ru)
iv) 1 4 is) 1 3 iV) «)
1 1 1 1 5 0 @ 1
1 3 - 1 1 = i)
- - - - - roy - -
- - iv) - - 1 - -
6 12 19 5 W 14 6 9
1 - ia) iv) e s) e -
2 1 3 3 2 2 2 1
1 1 2 iV) 2 2 1 2
2 8 14 2 7 1 3 7
is) 1 - = 9) - ©) 0)
- 5 > i) = = io) >
- iv) e - e io) ~ (e)
a) 2 iv) i) 2 iv) () 1

' Plans providing services or payments for services rendered in the
hospital or by a physician.

® Includes plans that are financed on a pay-as-you-go basis, plans fi-
nanced 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 com-
mercial carrier through Administrative Services Only (ASO) contracts.

* Less than 0.5 percent.

* 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 pian limits
reimbursement rates when participants use nonmember services.

49

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

© Includes exclusive provider organizations, which are groups of hos-
pitals 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. Where applicable, dash indicates no employees in this category.



Table 88. Defined benefit pension plans:' Percent of full-time participants by provision for integration of pension with Social

Security benefit, medium and large private establishments, 1991

Type of benefit formula?

Provision ‘Terminall Career | Dollar

Tota’ | camings|earnings| amount

Type of benefit formula?

Provision Terminal] Career | Dollar

°
Total” | camings |earnings| amount

All participants

Clerical and sales

Total... 100 | 100 | 100 Total 100 | 100 | 100
With integrated formula 54 80 59 - | With integrated formula... a4 63 -
Offset by Social Security Offset by Social Security
payment* 19 33 5 - payment* 23 34 5 -
Based on service’ ...... 18 27 2 - Based.on service 17 27 ) -
Not based on service’ 4 6 3 - Not based on service’ 6 7 5 -
Dollar amount © o - - Dollar amount .. iv) (a) - -
Percent of payment 4 5 3 - Percent of payment 6 7 5 -
Pure excess” 1 1 2 - Pure excess® 6 iV) 1 -
Step-rate excess’ 35 47. 53 - Step-rate excess” 45 51 56 -
Integrated with a Social Security Integrated with a
breakpoint 25 35 32 - breakpoint | 33 39 38 -
Integrated with a spect dollar Integrated with a specific dollar
breakpoint 10 2 24 - breakpoint 12 12 18 -
Without integrated formula .. 46 20 41 | 100. |[Without integrated formula .. 34 16 37 | 100

Professional, technical, and related

Total 100 | 100 | 100

With integrated formula 67 83 59 -
Offset by Social Security

payment 23 31 9 -

Based on service .. 19 26 4 -

Not based on service 4 5 6 -

Dollar amount iv) iv) - -

Percent of payment 4 5 6 -

Pure excess’ 3 4 iv) -

Step-rate exces: 44 50 49 -

Integrated with a Social Security

Production and service

Total .. 100 | 100 | 100
With integrated formula 39 74 56 -
Offset by Social Security

payment* 15 33 2 -

Based on service* 13 28 2 -
Not based on service’ 2 5 - -
Dollar amount .. a) a) - -
Percent of payment 2 5 - -

Pure excess® iv) iv) 3 -

Step-rate excess?
Integrated with a Social

breakpoint... | 33 38 34 - breakpoint 16 30 25 -
Integrated with a specific dollar Integrated with @ spectio dollar
breakpoint .. | 12 15 - breakpoint .. 9 13 28 -
Without integrated formula .. 33 7 41 | 100. |/Without integrated formula ..... 61 26 44 | 100

*” Excludes supplemental pension plans.

? If a plan contained more than one benefit formula based on terminal
earnings, career earnings, or dollar amounts, each integrated formula was
tabulated. Participants were included as under nonintegrated formulas
only if none of the formulas was integrated.

* Includes plans with benefit formulas based on a percent of employee
‘or employer contributions and cash account plans.

“ Benefit as calculated by formula is reduced by portion of primary So-
cial Security payments.

5 Offset is equal to the product of a percent of primary Social Security
payments and the participant's years of service with the employer. A maxi-
mum offset is frequently applied, for example, 50 percent.

91

* Less than 0.5 percent.

7 Benefit formula includes a reduction by a specified percent of primary
Social Security payments or a specific dollar amount.

° Formula does not apply to earnings subject to FICA (Social Security)
taxes or below a specific dollar breakpoint.

° Formula applies lower benefit rate to earnings subject to FICA (Social
Security) taxes or below a specific dollar breakpoint.

NOTE: Sums of individual items may not equal totals either because of
rounding or because more than one benefit formula within a plan was inte-
grated. Where applicable, dash indicates no employees in this category.

|
|



Table 68. Dental care benefits: Percent of full-time
participants in plans with orthodontic benefits by lifetime
maximum amount of coverage, medium and large private
establishments, 1991

Profes-
sional, | Cierical | Produc-
techni- tion and
Dollar amount’ punts | cal and service
related Partici-
partici- pants
pants
Total 100 100 100
Lifetime maximum specified .. 83 87 85 80
Less than $500 .. ral - G) ray
7 5 4 5 5
3 1 1 4
7 10 6 6
3 3 2 2
$1,000 7 37 7 43 33
$1,001-$1,499 16 13 12 19
$1,500 10 14 13 7
Greater than $1; 4 5 2 4
17 13 16 20

No lifetime. maximum ..

* Coverage for dental procedures may also be subject to scheduled al-
lowance, deduatible, or coinsurance provisions in addition to maximum dol-
lar limitations.

* Less than 0.5 percent.

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

Table 69. Dental care benefits: Percent of full-time
participants by provision for preauthorization of treatment,
medium and targe private establishments, 1991

Profes-
sional, | Clerical | Produc-
techni- and | tion and

Hem tepeata eal, and) sales | service
ipants| ‘elated | partici- | partici-
partici- | pants | pants
pants
Total 100 | 100 ; 100 | 100
Preauthorization required 65 64 65 66
Minimum expense requiring
preauthorization:
Less than $100 QO 19) oO 10)
$100 ai . 13 13 12 13
$101 - $199 10 12 8 "1
$200 ........-.. 20 17 24 19
Greater than $200 . 16 48 7 7
Dollar amount not determinable 5 6 5 5
Preauthorization not required ...... 35 36 35 34

* Less than 0.5 percent.

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

Table 70. Medical care benefits: Percent of full-time participants in plans with vision benefits by extent of coverage for
selected benefits, medium and large private establishments, 1991

Subject to internal limits Subject to
‘si . Covered overall | Not cov- {Not deter-
Type of vision benefit Total” | Covered | “infu | topqis [Scheduled] Coinsur- ) Copay- | Retail dis-| mitations| ered | minable
allowance} ance | ment | count? | only
All participants
Examinations .. 100 99 19 7 48 4 28 - 3 1 °
Eyeglasses . 100 100 " 87 61 3 23 4 1 - ~
Contact lenses .. 100 86 1 85 72 3 15 3 1 13 )
Professional, technical, and
related
Examinations . 100 98 20 74 50 4 23 - 4 1 1
Eyeglasses . 100 100 10 a7 64 3 18 6 3 °) -
Contact lenses ... 100 87 cv) 87 74 3 12 5 a) 12 1
Clerical and sales
Examinations 400 98 19 78 53 5 23 - 2 1 1
Eyeglasses .. 100 100 8 91 69 4 19 6 1 10) -
Contact lense: 100 89 1 8 78 4 12 4 ro) 10 °)
Production and service

Examinations .. 100 99 19 7 45 3 32 - 2 1 0
Eyeglasses 100 100 13 86 58 3 28 3 1 - -
Contact lenses 100 85 1 83 68 3 18 2 1 18 1

* The total is less than the sum of the individual items because workers
may participate in plans with more than one type of limitation.

®' Provided at discount if purchased at an approved dealer.

® Less than 0.5 percent.

70

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



Table 31. Long-term disability insurance: Percent of full-time parti
large private establishments, 1991

pants by method of determining payment, medium and

With maximum

Type of maximum provision

Without maximum,

Method Total coverage Plan maximum | Disability income |Plan and disability] coverage
only! maximum only? | income maximum
All participants
All methods 400 7 42 1" 24 23
Fixed percent of earnings ... 86 n 40 9 23 15
Less than 50 percent 2 2 1 is) a) e
50 percent . 18 44 4 6 4 5
56 percent . e) ) e - 6 -
60 percent 51 43 25 2 15 8
65 or 67 percent 1 10 7 ro) 2 1
70 percent .. . 3 2 1 0) 1 1
More than 70 percent ... 1 () i) - - 0
Other percent... e iv) i) - - -
Percent varies by earnings 5 4 3 0) 1 2
Percent varies by service ) iv) - is) ) iv)
Percent varies during disability 2 2 ) 2 ) co)
Scheduled dollar amount varies by
earnings .... se 5 (a) - is) - 5
Othert to) - - - - ©
Professional, technical, and
related
All methods 100 83 49 10 24 7
Fixed percent of earnings ot 76 46 6 24
Less than 50 percent .. 2 2 1 a) iV)
50 percent 15 10 4 2 4
55 percent 19) 19) @ - 0 -
60 percent 5B 50 30 3 17 8
65 or 67 percent .. 12 "1 9 ©) 2 1
70 percent 3 3 2 «) 1 0)
More than 70 percent 1 1 1 - - 0)
Other percent .. (e) (9) i) - - ~
Percent varies by earnings .. 5 4 3 i) e) 2
Percent varies by service (o) ie) ~ i) ie) io)
Percent varies during disability .. 3 3 is) 3 0) 0
Scheduled dollar amount varies by
‘earnings ... oom 7) i) - is) - ®

See footnotes at end of table.

31



all participants with mental health care coverage were sub-
ject to special limits for outpatient care in 1991. Outpatient
mental health care was commonly covered for fewer visits
per year than other outpatient services, and it was subject
to special maximum dollar limits on annual payments.
Plans also frequently covered such care at a coinsurance
rate of 50 percent rather than the usual 80 percent paid by
plans for other illnesses. In addition, expenses for outpa-
tient mental health care often could not be used to meet the
employee’s maximum out-of-pocket expense limitation.
Reimbursement for these expenses thus did not increase to
100 percent even when the out-of-pocket expense limita-
tion was met.2>

Alcohol and drug abuse treatment

Alcohol and drug abuse treatment benefits covered
nearly all full-time medical participants (tables 53-55).
Nine out of 10 participants with alcohol benefits had their
coverage treated the same as those for drug abuse treat-
ment. Benefits provided under substance abuse care in-
cluded both detoxification and rehabilitation. Detoxifica-
tion involves supervised care by medical personnel de-
signed to reduce or eliminate the symptoms of chemical
dependency. Rehabilitation provides a variety of services
intended to alter the behavior of substance abusers. Such
services are generally provided once a person has com-
pleted detoxification.

Virtually all participants covered by alcohol abuse treat-
ment benefits were eligible for inpatient (in-hospital) de-
toxification, and four-fifths received inpatient rehabilita-
tion coverage. Detoxification is considered medically nec-
essary, and thus nearly all medical plans include it. There
is a greater tendency to exclude inpatient rehabilitation,
because it requires less constant and less immediate care.
Outpatient alcohol abuse treatment, generally rehabilita-
tive care, was available to four-fifths of participants with
alcoholism coverage. Coverage patterns were similar for
drug abuse treatment benefits.

As was true with mental health care, plans were more
restrictive in covering substance abuse treatment than oth-
er illnesses.”! Participants were more likely to have inpa-
tient detoxification treated the same as any other inpatient
confinement than to have inpatient rehabilitation covered
the same as any other illness. Seven percent of the partici-
pants with alcoholism treatment coverage had outpatient
care treated the same as that for other conditions.

Limitations for substance abuse treatment most com-
monly included restrictions on the number of days of inpa-

2 A detailed examination of mental health care provisions in em-
ployer-provided health care plans is provided by Allan P. Blostin in
“Mental Heaith Benefits Financed By Employers,” Monthly Labor Re-
view, July 1987, pp. 23-27.

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

43

tient hospital care per year, the number of outpatient visits
per year, reduced coinsurance levels for outpatient treat-
ment, ceilings on out-of-pocket limits not applying to out-
patient care, and maximum dollar amounts per year or per
lifetime. A typical limit on inpatient care was 30 days per
year. Similarly, outpatient care might be restricted to 20 or
30 visits per year at a coinsurance rate of 50 percent. Dol-
lar maximums were often combined between inpatient and
outpatient care, with $50,000 per lifetime a common limit.
Finally, limitations on days and dollars were often com-
bined for alcohol and drug abuse care.” For example,
plans often limit coverage to 30 days per year and to
$50,000 per lifetime for both alcohol and drug abuse treat-
ment.

Health maintenance organizations (HMO’s)

Health maintenance organizations provide a fixed set of
medical benefits for a prepaid fee. The survey tabulated the
details of three categories of medical care provided by
HMO’s—physicians’ office visits, out-of-hospital pre-
scription drugs, and extended care facilities. For physi-
cians’ office visits, two-thirds of HMO participants were
required to pay a copayment, typically $5 or greater per
visit, before treatment was received (table 56). Most of the
remaining participants received coverage in full. In gener-
al, HMO’s did not limit the number of physicians’ visits.

Out-of-hospital prescription drug benefits were avail-
able to 88 percent of HMO participants, and 74 percent
had a copayment for each prescription, commonly either
$3 or $5. In addition, 12 percent of the HMO participants
had to make a copayment of greater than $5 per prescrip-
tion.

Finally, extended care treatment facility benefits were
provided to 89 percent of HMO participants. Most com-
monly, the number of days of coverage was limited; typical
limits were 60 days per confinement.

Other medical benefits

The 1991 survey measured the incidence of several other
services provided through medical care plans (table 57).
For example, 30 percent of medical care participants were
in plans that covered at least some of the costs for routine
physical examinations, and 36 percent had coverage for
well-baby care. HMO’s nearly always included coverage
for hearing care, physical examinations, well-baby care,
and immunizations and inoculations. HMO’s must in-
clude these benefits to qualify under the Health Mainte-
nance Organization Act of 1973, as amended.”

22 For more detailed discussion of employer-provided substance abuse
coverage, see Marc E. Kronson, “Substance Abuse Coverage Provided by
Employer Medical Plans,” Monthly Labor Review, April 1991, pp. 3-10.
In addition, see Substance Abuse Provisions in Employee Benefit Plans,
Bulletin 2412 (Bureau of Labor Statistics, August 1992).

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



Tabie 108. Savings and thrift plans: Percent of full-time participants in plans that allow pretax employee contributions by
method of determining contribution, medium and large private establishments, 1991—Continued

Initial contributions
Initiat contibutions must be pretax; Initial contributions
must be pretax; additional may be either pretax
tem! Total all bailneia must additional contributions may be or posttax
contributions must be | either pretax or at the employee's
posttax posttax, at the option
employee's option
Clerical and sales
Total .... ses 100 43 4 1 52
Maximum contributions allowed:
Less than 5 percent 5 4 a - 1
5 percent 6 3 i) - 3
6 percent 9 2 2 - 6
7 percent 1 19) Q - ca)
8 percent 3 2 i) - 1
9 percent 1 e® Oo - 1
10 percent 13 8 ee) ie) 4
11 percent 2 oy 1 - 1
11.01-11.99 precent ie) - - - le)
12 percent 10 3 ro) - 7
12.01-12.99 percent ® - - - 6
13 percent 3 1 - - 2
14 percent 2 i@) - - 2
15 percent 16 10 ea - 6
16 percent 19 4 - 1 14
Greater than 16 percent 6 2 iG) - 4
Specified dollar amount e a) - - (a) .
Intermal Revenue Code limit . 3 3 - - -
Production and service
Total . 100 45 5 ) 50
Maximum contributions allowed:
Less than § percent 5 2 i) - 3
5 percent 5 3 19) - 2
6 percent 6 2 1 - 3
7 percent ia) a) > - -
8 percent 4 2 QO - 2
9 percent 1 1 e@ 7)
10 percent ... 8 6 @ ) 2
11 percent... 4 io) - (9)
11,01-11.99 precent 1 - - - 1
8 4 i?) - 4 L
1 1 - - a) |
3 1 - 3
23 13 - - 10
19 2 - ) 17
Greater than 16 percent 10 8 ie) - 3
Specified dollar amount 1 ia) - - 1
Internal Revenue Code limit . 2 2 - - -
* If maximum contributions varied by participant's length-of-service, NOTE: Because of rounding, sums of individual items may not equal
age, or both, the highest possible percentage was tabulated. totals. Where applicable, dash indicates no employees in this category.

?’ Less than 0.6 percent.

112



Table 39. Medical care benefit:
large private establishments, 1991—Continued

Percent of full-time participants by coverage for selected categories of care, medium and

Care provided
Category of medical care Total - | Subject to Subject to Subject to | CA” rae
All Covered in full | internal limits | overall limits | internal and wes
only’ only? overall limits
Clerical and sales
Hospital room and board 100 100 18 4 50 27 -
Hospitalization—miscellaneous
services? 100 100 18 4 50 27 -
Extended care facil 100 at 7 7 12 45 19
Home health care* 100 82 23 9 16 35 18
Hospice ... 100 56 1 8 15 22 44.
Surgery
Inpatient .. 100 100 30 a) 62 8 io)
Outpatient 100 100 38 1 54 7 ia)
Physician visits
In hospital 100 100 23 ) 64 12 0
Office .. 100 99 6 7 66 9 1
Diagnostic ‘ory 100 100 32 iy) 60 8 i)
Prescription drugs—nonhospital 100 96 2 33 54 7 4
Mental health care
In hospital ... 100 98 2 20 10 66 2
Outpatient 100 97 io) 24 2 70 3
Alcohol abuse treatment
Inpatient detoxification’ 100 98 10 18 12 58 2
Inpatient rehabilitation® 100 78 3 19 5 St 22
Outpatient rehabilitation*® 100 78 2 20 5 51 22
Drug abuse treatment
Inpatient detoxification’ 100 97 9 19 "1 59 3
Inpatient rehabilitation 100 76 2 19 4 51 24
Outpatient rehabilitation® 100 7 1 24 4 51 23
Production and service
Hospital room and board .... 100 100 14 5 43 38 -
Hospitalization—miscellaneous,
services? .. 400 100 14 5 44 37 -
Extended care facility* . 100 78 6 8 13 at 22
Home health care* 100 78 14 "1 7 36 22
Hospice ..... 100 53 9 8 15 24 47
Surgery
Inpatient .. 100 100 27 1 59 14 0
Outpatient’ . 400 100 33 1 55 "1 ra)
Physician visits
In hospital 100 100 18 ) 61 20 e)
Office .. se . 100 97 5 12 7 9 3
Diagnostic X-ray and laboratory | 100 100 25 eo 58 16 al
Prescription drugs—nonhospital .......- 100 98 3 28 60 4 4
Mental health care
In hospital 100 98 17 "1 68 2
Outpatient 100 97 o 20 3 75 3
Alcohol abuse treatment
Inpatient detoxification” 100 97 7 20 "1 59 3
Inpatient rehabilitation’ 100 79 2 20 4 53 2
‘Outpatient rehabilitation’® 100 76 1 18 5 52 24
Drug abuse treatment
Inpatient detoxification’ 400 95 19 10 59 5
Inpatient rehabilitation® 100 7 2 20 3 53 23
Outpatient rehabilitation® 400 73 1 7 4 51 27

"Internal limits apply to individual categories of care, e.g., separate
limits or benefits for hospitalization. Limits may be set in terms of dollar
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 serv-
ices are rendered.

* Overall limits are expressed only in terms of total benefits payable un-
der the plan, rather than for individual categories of care. Limits are set
as deductibles, coinsurance percentages, and overall dollar limits on plan
benefits.

* ‘Services provided during a hospital confinement.

* Some plans provide this care only to a patient who was previously
hospitalized and is recovering without need of the extensive care provided

48

by a general hospital.

* Less than 0.5 percent.

® Charges incurred in the outpatient department of a hospital and out-
side of the hospital

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

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

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



where:

omn
toed

In

For the

standard error

percentage estimate from the bulletin
exponential function

natural logarithm function.

1991 Employee Benefits Survey,

These are regression coefficients. The curve fits the data
with R? = 0.9211 and no pattern in the residuals. More-
over, differences between this curve and curves based on
data for previous survey years are primarily due to the dif-
ferences in sample size.

The equation of the curve was obtained empirically, us-
ing the following equation:

a = -0,24855, b = -0.038302, c = -0.036047, and
d = 0.133446,

S = a P>(100- Py’.

Chart A-1. Generalized standard errors, medium and large private establishments , 1991

Standard error

2.2
2.0

1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2

0.0

Percent estimate

133


Employee contributions

Just over one-half of full-time participants had to pay
part of the cost for their individual medical coverage in
1991. Approximately two-thirds of participants shared in
the cost for family coverage (tables 58-60). Blue-collar
workers were more likely to have both individual and fam-
ily coverage fully financed by the employer than were
white-collar workers. Fifty-five percent of blue-collar
workers had individual coverage totally employer paid,
and 37 percent were not required to pay any of the cost for
family coverage, compared to 44 percent and 26 percent,
respectively, for white-collar workers.

Data on the amount that employees contributed for
medical benefits occasionally were not available because a
single payroll deduction applied to both medical care and
one or more other benefits. When the amount was re-
ported, employee premiums for individual and family cov-
erage averaged $27 and $97 a month, respectively.

Employee medical care premiums showed some varia-
tion by type of plan. Three-fifths of full-time participants
in HMO’s were required to contribute for single coverage,
and just over three-fourths for family coverage. This com-
pared to just over one-half and two-thirds contributing, re-
spectively, for non-HMO’s. The average premiums for in-
dividual and family coverage were higher for participants
in HMO’s than for those in non-HMO’s; in fact, average
employee contributions for family coverage in HMO’s
were $27 per month higher than in non-HMO’s.

Of employees required to contribute toward the cost of
their medical care coverage in 1991, about one-third could
do so with pretax dollars. These employees had the advan-
tage of reducing their taxable income when purchasing
medical coverage. Pretax contributions may be required or
optional, and they may be offered as part of a flexible bene-
fits arrangement.

Participation requirements

. Medical care plans typically required new employees to
serve only a short eligibility period, if any, before coverage
began (table 61). Two-fifths of medical care plan partici-
pants were allowed to join a plan immediately upon being
hired. For participants required to complete a minimum
length of service, the required period was usually 3 months
or less. For one-fifth of participants, the service require-
ment was not determinable, usually because plan docu-
ments (typically prepared by a health coverage provider)
did not include the employer’s eligibility provisions.

Coverage for retired workers

Although the Consolidated Omnibus Budget Reconcili-
ation Act of 1985 requires employers to continue health
care benefits for employees who are retired, laid off, or
otherwise separated from employment, workers may be
charged all of the premium costs at group rates. In addi-
tion, the continuation period stipulated by the law is lim-

ited.* The survey of medium and large private establish-
ments focused on coverage for retired employees that was
financed wholly or partly by the employer (tables 62-63).

Of the medical care participants in the survey, 45 per-
cent worked for employers who financed, at least in part,
medical care protection after retirement. The vast major-
ity of workers were in plans that provided postretirement
coverage regardless of their age. Plans commonly imposed
an eligibility requirement for retiree medical coverage; this
requirement was usually either a certain length of service
or qualification for the company pension plan.

The level of medical care coverage for retirees under age
65 was generally the same as for active workers. Although
benefit provisions were reduced for some retirees upon
reaching age 65, more commonly benefit levels did not
change apart from coordination with Medicare.

Finally, it was more likely for the coverage to be partly
paid by the retiree than to be wholly employer financed.
This was somewhat more true for retirees under age 65.

Dental Care

Dental care benefits were available to three-fifths of full-
time employees in medium and large private establish-
ments in 1991 (tables 64-69). Dental care may be offered as
a part of a comprehensive medical and dental plan, or as a
separate plan in addition to medical coverage. Often, em-
ployers offer a series of medical plans from which em-
ployees may choose, as well as a separate dental plan that
can accompany any medical plan. Of the participants in
dental plans:

e The overwhelming majority were reimbursed by a
percent of the usual, customary, and reasonable
charge for all dental procedures;

e Two-fifths had to contribute toward the cost of their
individual coverage, and nearly three-fifths were re-
quired to contribute toward family coverage;

e@ Nearly two-thirds were in plans that specified a de-
ductible amount participants must pay before the
plan paid any benefits;

e Nearly 7 out of 8 were covered by plans that limited
the amount of payment each year by specifying an
annual maximum benefit.

When a single plan includes dental benefits together
with medical care benefits, it was not possible to distin-
guish which portion of the employee’s contribution, if

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



Table 71. Life insurance: Percent of full-time participants
by method of determining amount of basic life insurance
and frequency of related coverages, medium and large

private establishments, 1991

Profes-
sional, | Clerical | Produc-
techni- | and | tion and
Item (ope, | cal, and] sales | service
Pants! related | partic | partici-
partici. | pants | pants
pants
Total... 400 | 100 | 100 | 100
Basic tife insurance! 97 96 96 97
Based on earnings . 59 72 eo | 46
Multiple. 52 68 63 36
Graduated schedule 7 5 G 9
Flat AMOUNt wanecnssnsnne 36 24 26 50
Flat amount based on service 1 2 1 1
OtHER soseceneen (9) C ° a)
With accidental death and
dismemberment coverage "1 70 66 73
With survivor income benefit* 6 6 5 7
Supplemental benefits available 54 62 so | 46
Wholly employee paid .... 42 46 47 | 36
With dependent coverage 51 53 55 47
Wholly employee paid ... 32 36 36 28

* A few participants received only accidental death and dismemberment

insurance or survivor income benefits.

® Includes participants in plans in which insurance equated a multiple of

earnings, plus or minus a specific amo
* Less than 0.5 percent.

unt.

* Consists of monthly income, usually a percent of earnings, for the
spouse or dependent children for a specified period after death of em-

ployee.

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

73



unreduced benefits prior to age 60, but those who could
usually had to work 30 years. Retirement at any age with
the required amount of service was more common in plans
covering blue-collar workers than in those covering white-
collar workers.

Plans that required combining a worker’s age and ser-
vice to reach a specified sum for retirement with full bene-
fits covered 6 percent of participants. The most prevalent
age-plus-service requirement was 85. This type of arrange-
ment usually specified a minimum age of 55. Minimum
lengths of service were less common. (When a plan speci-
fied alternative age-and-service requirements for normal
retirement, such as age 62 with 10 years of service or age 55
with 20 years of service, the earliest age and associated ser-
vice was tabulated. This also holds true for early retire-
ment age and service requirements discussed below.)

Early retirement

Virtually all of the employees participating in defined
benefit pension plans could retire before normal retire-
ment age and receive an immediate, but reduced, pension
(tables 93 and 94). Early retirement was almost always
solely at the employee’s option; only 1 percent of partici-
pants had plans that required employer approval for early
retirement benefits. The amount of an early retirement
pension is reduced because benefits begin at an earlier age,
and the retiree is expected to receive plan payments over a
longer period.

Early retirement benefits are generally computed based
on the normal retirement formula. The benefit is then re-
duced by a percentage (factor) for each year between the
actual and normal retirement ages. If a plan’s normal re-
tirement age is 62, for example, and the reduction factor is
6 percent, a person retiring at age 59 would receive 82 per-
cent of the normal formula amount (that is, the person
loses 6 percent for every year under the normal age). In
addition to the 18-percent reduction for early retirement,
the annuity in this example would be based on fewer years
of service and possibly lower earnings than at age 62.

The reduction factor may be uniform or may vary by age
or service. Reduction factors that differed for each year of
early retirement, based on the employee’s life expectancy
at that age (actuarial reductions), were used in plans cover-
ing 23 percent of participants with early retirement oppor-
tunities. Other methods of reducing benefits approximate
an actuarial reduction. For example, for 26 percent of the
participants, the reduction factor differed for age brackets
of several years instead of changing each year. Nearly half
the participants had uniform reduction factors, most com-
monly 3, 4, 5, or 6 percent for each year of early retire-
ment. In plans with a low uniform reduction, such as 3 per-
cent per year, the employer subsidizes some of the early
retirement benefit by making the reduction less severe
than if benefits were computed actuarially.

83

Nearly seven-tenths of all participants were covered by
plans permitting early retirement at age 55; generally, 10
years of service were required. If employees satisfied ser-
vice requirements, 15 percent of all participants could re-
tire earlier than age 55. Nearly half of these participants
could retire with reduced benefits at any age, usually after
30 years of service.

Additional monthly payments supplemented the early
retirement pension for 9 percent of participants if em-
ployees retired after meeting a specified age or length-of-
service requirement generally higher than the minimum
needed to retire. Plan sponsors include these supplementa-
ry benefits either to induce older workers to retire or as a
reward for long service. Supplements generally last until
Social Security benefits are payable.

Disability retirement

A career-ending disability may entitle an employee to a
pension before retirement age. If the disability satisfies the
plan’s definition of total disability, pension benefits often
begin immediately. When an employer provides other
sources of disability income, such as long-term disability
insurance, the plan might defer disability retirement bene-
fits until the other forms of income have ceased. Seventy-
nine percent of pension plan participants were covered by
some type of disability retirement provision in 1991 (table
95).

Seven-tenths of the blue-collar workers with disability
retirement coverage were in plans with immediate bene-
fits. In contrast, nearly half of the white-collar workers
were in plans that deferred benefits. Workers with def-
erred benefits often received long-term disability insur-
ance (LTD) benefits that typically provided 50 or 60 per-
cent of earnings at the time of disability; this often exceed-
ed the amount that pension plans with immediate disabil-
ity retirement provided. Furthermore, most deferred re-
tirement benefits were greater than immediate pensions,
primarily because the time during which LTD benefits
were paid was typically added to an employee’s length of
service for computation of pension benefits. (See chapter 3
for details of LTD benefit plans.)

Eligibility for disability retirement benefits usually de-
pended on length of service; generally 10 years or more
were required. Twenty percent of the participants, howev-
er, had no age or service requirement, and 18 percent had
to meet the qualifications of their LTD plans, which usual-
ly imposed service requirements of 6 months or less.

Postponed retirement
Although all employees may continue to work after nor-
mal retirement age and accrue regular pension benefits,
only 6 percent of the pension.plan participants in 1991
could receive benefit increases that reflected specific ad-
justments for service beyond age 65.°° Most of these in-
3 Recently enacted changes in the Age Discrimination in Employment

‘Act require employers to credit all service after normal retirement age,
subject to any maximum credited service provision of the plan.



An alternative method of categorizing medical care
plans is to determine whether or not participants have a
“point-of-service” option. In such plans, participants can
use care providers within or outside a given network, al-
though reimbursement of expenses is less if participants do
not use network providers. In 1991, 17 percent of medical
care participants were in “point-of-service” plans; this in-
cluded all workers in PPO’s and a few workers in HMO’s
that have an open enrollment option. Such an option al-
lows patients to receive services from a non-HMO provid-
er (at a lower reimbursement), and was available to 4 per-
cent of HMO participants.

Payment arrangements .

Medical plan provisions were examined to determine
the extent of coverage for each type of medical service. In
this survey, each category of medical care is classified un-
der one of four payment arrangements: Full coverage,
coverage with internal (separate) limitations only, cover-
age with overall limitations only, or coverage with internal
and overall limitations (table 39).

Full coverage for HMO’s indicates no restrictions on the
number of days of care, no dollar maximums on benefits,
and no required payments by the covered individual. In a
fee-for-service plan, when a benefit is covered in full, the
plan bears all expenses up to the usual, reasonable, and
customary charges, or the prevailing hospital semiprivate
rate.

Separate limitations restrict the level of coverage for
particular medical services, independent of other plan pro-
visions. An example of a separate limit is a maximum of 45
days of hospitalization per year for mental health care.

Overall limitations are deductibles, coinsurance require-
ments, maximum benefit levels, or other provisions that
apply to many, if not all, types of medical care provided
under the plan. Examples of overall limits include the fol-
lowing: A requirement that the employee pay the first
$100 of expenses in a year, regardless of the source of the
expense, before the plan will begin payments (deductible);
a requirement that the employee pay 20 percent of covered
expenses beyond the deductible (coinsurance); a $1,000
limit on the amount the employee must pay, after which
the plan pays 100 percent of covered expenses (maximum
out-of-pocket expense); and a lifetime ceiling on plan pay-
ments of $1 million (maximum). Plans often apply overall
limits to protect against high risks posed by a small pro-
portion of participants.

HMO?’s usually do not impose any overall limits on the
benefits they provide. Traditional fee-for-service plans, on
the other hand, almost always impose overall limitations
on their benefits. (PPO’s also set overall limits, but may
alter or reduce those limits if services are received from
designated providers.) The most common payment ar-

rangement in fee-for-service plans is coverage subject to
overall limitations only. Under such an arrangement, the

38

employee must satisfy the deductible and meet the coinsu-
rance requirement before any benefits are paid. Nearly
one-half of all participants in plans with hospital room and
board benefits had coverage subject to overall limitations
only. Services for which the majority of plan participants
had coverage subject to overall limits only were physi-
cians’ office visits, in-hospital physician services, diagnos-
tic x rays and laboratory services, outpatient prescription
drugs, inpatient surgery, and outpatient surgery.

Separate and overall limitations may apply to the same
category of care. For example, a plan may impose a sepa-
rate limit of 120 days on fully paid hospital room and
board coverage, with protection beyond that point subject
to overall plan coinsurance rates and maximum dollar lim-
itations.

The last decade has seen a greater emphasis on cost-
sharing in medical care plans, that is, it has become more
likely for employees to pay a portion of medical expenses
before any benefits are paid. Consequently, first-dollar
coverage (in which the plan pays for benefits up to a cer-
tain amount before the employee must share in the cost)
has become less prevalent. This emphasis on cost-sharing
in medical plans results at least partly from the rapidly
growing cost of medical care over the last 10 years. Be-
tween 1982 and 1991, the index of all medical care ex-
penses rose 91.4 percent, as measured by the BLS Con-
sumer Price Index for All Consumers (CPI-U). During the
same period, the CPI for all items rose 41.1 percent.

Overall limitations

Plans with overall limitations nearly always require a
participant to meet a specified deductible before eligibility
for benefit payments. This approach is designed to dis-
courage unnecessary use of medical services. In 1991, 84

percent of full-time participants were in plans with overall *

limits (tables 41-45). Nine-tenths of the participants in
plans with overall limits had coverage subject to an annual
flat-dollar deductible. Of these participants, however,
slightly less than one-fifth were in plans in which the de-
ductible did not apply to hospital room and board ex-
penses.

The most prevalent individual annual deductible was
$100, accounting for just over one-fourth of the partici-
pants subject to overall limits. Deductibles of $150 and
$200 were the next most common ones. The average annu-
al deductible in 1991 was $198 for all workers. The
amount of the average deductible varied among occupa-
tional groups. It was highest ($210) for professional, tech-
nical, and related participants and. lowest ($189) for pro-
duction and service participants.

When a medical care plan covered an employee and
family, a family deductible was often specified in addition
to individual deductibles. After meeting the family de-
ductible, no additional individual deductibles apply dur-
ing that year. Four out of 5 participants with overall limi-
tations were in plans that specified limits on the number of



Table 119. Plan financing: Percent of full-time participants in selected employee benefit programs by source of financing,
medium and large private establishments, 1991

Sickness and | Long-term ; Defined

accident disability | Medical care | Medical care | Dental care) Dental care | tite insurance| benefit

insurance insurance PloyE ¥ ployer ¥ pension

All participants
Total . | 400 400 100 400 100 100 100 100
Wholly employer financed - 4 78 49 31 58 43 85 95
Partly employer financed 26 22 51 69 42 57 15 5
Professional, technical, and
related
Total .. 100 100 100 100 100 100 100 400
Wholly employer financed 59 76 45 25 54 37 85 95
Partly employer financed .. 41 24 55 75 46 63 15 5
Clerical and sales
Total nn . 100 400 100 100 400 100 400 400
Wholly employer financed .. 67 7 43 27 51 38 86 7
Parily employer financed . 33 23 57 73 43 82 14 3
Production and service

Total 400 400 400 100 100 100 100 400
Wholty employer financed 82 83 55 37 66 50 84 95
Partly employer financed . 18 7 45 63 34 50 16 5

124



Table 102. Retirement and capital accumulation plan
coverage: Percent of full-time employees by participation in
retirement plans and capital accumulation plans, medium
and large private establishments, 1991

Profes-
sional, | Cierical | Produc-
techni | and | tion and
Type of plan a erm, |cal, and| sales | service
Ployees | ‘elated | employ- | employ-
employ- ees ees
ees
Total .. 100 | 100 | 100 | 100
Covered by retirement or capital
accumulation plan 79 84 78 76
Retirement’ only 69 74 68 67
Capital accumulation? o 1 1 1 1
Retirement and capital
ACCUMULALION «nse | 9 9 9 8
Not covered by retirement or capital
accumulation plan .... seven] 21 16 22 24

* Includes defined benefit pension plans and defined contribution plans
such as money purchase pension, profit sharing, and savings and thrift
plans in which employer contributions must remain in the participant's ac-
count until retirement age, death, disability, separation from service, age
59 1/2, or hardship.

2 Includes plans in which employer contributions may be withdrawn
from participant's account prior to retirement age, death, disability, separa-
tion from service, age 59 1/2, or hardship. Excludes pure cash profit shar-
ing, stock option, and stock purchase plans.

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

108

Table 103. Defined contribution plans: Percent of full-time
employees participating by type of plan, medium and large
private establishments, 1991

Profes-
sional, | Clerical | Produc-

‘Alem. | techni] andj tion and

Type of plan loyees {cal and| sales | service
Ploy« related | employ- | employ-

employ-| ees | ees
ees

Savings and thrift 29 38 38 20

Profit sharing 16 13 7 18
Immediate cash only 1 1 1 ()
Deferred benefits only W 10 14 abl
Combination 4 3 2 6

Employee stock ownership 3 4 4 2

Money purchase pension .. 7 W 7 5

Stock bonus ...

* Less than 0.8 percent.

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



Table 113. Saving and thrift plans: Percent of full-time

participants by provisions for withdrawal of employer

contributions prior to disability, retirement age, or
termination of employment, medium amd large private

establishments, 1991

Profes-
sional, | Clerical | Produc-
All par- | techn | and | tion and
Least restrictive provision ticipants | Cab and) sales | service
related | partici- | partici-
partici- | pants | pants
pants
Total 100 | 100 | 100
Withdrawals permitted 50 46 53 52
For hardship reasons’ 26 24 28 27
Full withdrawal, no penalty 16 13 16 7
Full withdrawal, with penalty | 7 7 7 7
Partial withdrawal, no penalty! 2 2 3 2
Partial withdrawal, with
penalty 2 2 3 1
Not determinable fo) - ie) -
For any reason ..... . 24 22 25 24
Full withdrawal, no penal 4 10 12 4
Full withdrawal, with penalty 7 7 6 7
Partial withdrawal, no penalty) 5 4 5 5
Partial withdrawal, with
penalty 1 1 2 1
No withdrawals permitted 50 54 47 48

* Commonly expressed reasons for withdrawal were: Purchase or repair
of primary residence, education of an immediate family member, death or
illness in the family, or sudden uninsured loss.

® Less than 0.5 percent.

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

117

Table 114. Savings and thrift plans: Percent of full-time
participants by method of distribution of account at

retirement, medium and large private establishments,

1991
Profes-
sional, | Clerical | Produc-
; Al par- | teehni- | and | tion and
Method of distribution available |: P°1.| cal, and] sales | service
ip related | partici | partici-
partici | pants | pants
pants
Total ... soo | 100 | 100 | 100
Cash distribution’ sone 99 99 99 | 100
Lifetime annuity (including
joint-and-survivor forms) 30 29 29 32
Installments 52 53 53 49
Lump sum 99 99 99 | 100

Not determinable

1

1

io)

* The total is less than the sum of the individual items because many
participants are offered optional forms of cash distribution.

* Less than 0.5 percent.

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



such arrangements in 1991.

The most prevalent flexible benefits options included
various levels of life insurance, separate dental choices,
participation in fee-for-service medical plans (with vary-
ing deductibles and out-of-pocket maximums) or in health
maintenance organizations, varying levels of accidental
death and dismemberment insurance, and long-term dis-
ability insurance coverage. Almost two-thirds of em-
ployees covered by flexible benefits plans could receive
cash in lieu of benefits or deposit unused credits into reim-
bursement accounts. Additionally, some employees could
choose to participate in preferred provider organizations,
purchase short-term disability coverage, deposit credits in
a401(k) plan, or buy and sell vacation days, Almost three-
fourths of participants had to purchase minimum levels of
coverage, commonly a basic level of life insurance.

Reimbursement accounts were offered to just over a
third of full-time employees covered by the 1991 medium
and large establishment survey. A greater proportion of
white-collar than blue-collar workers in medium and large
establishments were ‘eligible. These accounts, also called
flexible spending accounts, provide funds from which em-
ployees pay for expenses not covered by their regular bene-
fits package. Commonly, employees can draw on medical
care reimbursement accounts to pay for deductibles, their
coinsurance, and for services not covered under a medical
care plan, such as hearing or vision exams. Dependent care
accounts could be used to reimburse the employee for ex-
penses associated with the care of dependent children and
adults. Additionally, many accounts allowed for the pre-
tax payment of medical care and other insurance pre-

122

miums.

Usually, employee pretax money solely funds reim-
bursement accounts, although some accounts are funded
either wholly or partially by employers. Reimbursement
accounts may be part of a flexible benefits plan, or they
may stand alone.

Almost three-quarters of employees eligible for reim-
bursement accounts could allocate funds for health care
expenses such as deductibles, coinsurances, and services
not covered by their medical care plan (table 121). Three
out of four eligible employees could use money from these
accounts to pay for dependent care expenses, generally
both child care and care for elderly or disabled relatives.
Reimbursement account funds could also be allocated for
the payment of the employees’ share of health care pre-
miums, other insurance premiums, such as life insurance
or a spouse’s insurance premiums, and legal services.

Nine of 10 employees participating in flexible benefits
plans or reimbursement accounts were required to con-
tribute toward the cost of their benefits, or were allowed to

contribute to obtain additional benefits. Nearly all of these’

contributions took the form of a salary reduction arrange-
ment, which resulted in lower income tax liabilities.

Individual benefit plans offered through a flexible bene-
fits plan were analyzed and included in the tabulations for
specific benefit areas in this bulletin.”

49 For information on flexible benefits plans in medium and large pri-
vate establishments, see Joseph R. Meisenheimer and William J.
Wiatrowski, “Flexible Benefits Plans: Employees Who Have a Choice,”
Monthly Labor Review, December 1989, pp. 17-23.



Want a competitive edge?

Let’s communicate. We welcome your comments, suggestions, and
queries on the content of this publication, its adequacy for research, and
what else you might wish to see in it. Employee benefits are an essential
part of compensation.

Stay abreast of what your competitors currently offer their employees,
and glean insight into how other companies structure their benefits pro-
grams to compete in the labor market and furnish benefits while con-
taining costs. Tell us what you need to know. Keep a competitive edge.

Direct your comments to: Bureau of Labor Statistics, Employee Bene-
fits Survey, Room 4160, 2 Massachusetts Ave., NW., Washington, DC
20212-0001.



Each medical expense section (for example, hospitaliza-
tion, prescription drugs, physician charges) contains in-
formation on internal limitations; these limits apply only
to the specific category of care in which they appear. For
example, hospital room and board may have an internal
limit of 120 days per confinement. Information on overall
limitations is also included in each section, identifying lim-

its that apply to more than one category of care. These
overall limitations—deductibles, maximums, coinsu-
tances, and out-of-pocket expense limitations—are then
described at the end of the database. Three sets of data on
overall limitations are available for plans that include mul-
tiple overall limits.

‘W U.S. GOVERNMENT PRINTING OFFICE: 1993-34 2 555 7, e4hES

140



Table 98. Defined benefit pension plans:' Percent of full-time participants with provision for early receipt of deferred
vested benefits’ by comparison of reduction factors with early retirement, medium and large private establishments, 1991

‘ci Professional, technical, and ‘cit Production and service
All participants related participants Clerical and sales participants participants
Reduction for each year
Prior to normal retirement Reduction factor for| Reduction factor for| Reduction factor for| Reduction factor for
age Total | Carly retirement is--| yo, | early retirement is-| 4, {early retirement is--| +... | early retirement is--
Same | Different Same_| Different Same | Different Same | Different
Total ... 100 49 51 400 45 55 100 45 55 100 5a 47
Uniform percentage’ .......... 34 24 10 29 16 12 30 20 ant 38 30 8
Less than 3.0 ' 1 1 - iv) iv) - 0 i] - 1 1 -
5 3 2 5 2 3 5 4 1 5 4 1
i 1 - oO “ - 1 1 - 1 1 -
4 4 1 6 4 2 4 4 oO 4 3 0
1 1 - 1 1 - 1 1 - ia) 0 -
4 3 1 4 2 2 5 4 1 4 2 1
13 9 4 9 4 5 9 4 5 18 16 3
1 1 9) 1 1 0) 1 1 - 1 ia) o
2 2 iv) 2 1 rv) 1 1 i) 3 3 4
More than 6.7 2 1 2 1 ) 0 3 “ 3 3 1 2
Percentage varies by age..| 65 25 40 70 28 42 69 25 44 60 23 37
Reduction differs for
each year of early
retirement® 47 Ww 35 50 12 38 48 9g 39 44 12 32
Reduction differs by age|
bracket? 18 13 5 20 16 4 24 16 5 16 1 5
Percentage vates by
service . 1 “) oO 1 1 “ oO is) io) 1 is) 1
Other basis’ ... iv) - cs) - - - - - - (a) - is)

* Excludes supplemental pension plans.

® Receipt of benefits prior to normal retirement age for plan partici-
pants who terminated employment with vested rights to future benefits.

° In specific cases, uniform percentage reductions may approximate
actuarial reductions, such as early receipt of benefits at age 55 with a 6
percent @ year reduction between age 55 and the plan's normal retire-
ment age of 62

* Less than 0.5 percent

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

° Rate of reduction is held constant within age brackets, but differs

101

among brackets, sometimes in approximation of an actuarial table. For
example, benefits may be reduced by 6.7 percent for each year between
age 60 and the plan's normal retirement age, and by 3.3 percent for
each year retirement preceded age 60. Also includes some plans that
reduce benefits arithmetically for each year immediately below normal re-
tirement age and actuarially below a specified age, usually 55.

” Reduced benefit was not derived from normal retirement formula.

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



Table 58. Medical care benefits: Percent of full-time participants in contributory plans’ by type and amount of employee
contribution, medium and large private establishments, 1991

Non-health maintenance

Al plans Health maintenance organizations organizations
Type and amount of contribution
Employee cover- Family Employee cover- Family Employee cover- Family
‘age coverage* age coverage* age coverage*
All participants
Total 100 100 100 100 100 100
Flat monthly amount 73 73 76 76 72 72
Less than $5,00 .. 2 a) 2 io) 2 ra)
$5.00-89.9: 8 1 5 1 9 1
$10.00-$14.99 9 1 12 1 9 1
$15,00-$19.99 8 2 10 iv) 7 2
$20.00-$29.99 16 5 20 2 15 6
$30.00-$39.99 12 5 10 4 12 5
$40.00-$49.99 5 4 5 z 6 4
$50.00-$59.99 .. 2 8 4 6 2 8
$60.00-$69.99 2 3 4 4 2 3
$70.00-$79.99 1 4 1 4 1 4
$80,00-$89,99 ra) 4 1 2 (9) 5
'$90,00-$99,99 e) 4 ~ 2 a) 4
$100.00-$124.99 Q 8 1 10 i) 7
'$125.00-$149.99 e) 6 Vv) 7z i) 6
$150.00-$174.99 - 3 - 5 - 3
$175.00-§199.99 = 4 - 8 - 4
$200.00 or greater .. eo 6 - 10 a) 4
Composite rate* 6 4 2 1 7 4
Amount varies by employee’........ 16 13 16 14 18 12
Amount varies by earnings .... 4 3 ia) 1 5 4
Not determinable .. 9 1" 8 9 9 12
Professional, technical, and related
Total ene 100 100 100 100 100 400
Flat monthly amount 65 68 73 7 63 66
Less than $5.00 1 17) 2 ra) 1 iw)
$5.00-$9.99 .. 7 1 6 1 8 1
$10.00-$14.99 6 1 6 Q 6 1
$15.00-$19.99 8 1 10 0) 7 1
$20,00-$29.99 7 4 20 4 16 4
$30.00-$39.99 14 4 13 4 14 4
$40.00-$49.99 5 4 5 6 5 4
$50.00-$59.99 2 9 4 5 1 10
$60.00-$69.99 1 3 3 3 1 3
$70.00-$79.99 1 4 a) 6 1 4
$80.00-$89.99 0) 5 1 4 iv) 5
$90.00-$99.99 & 3 - 4 e) 3
$100,00-$124,99 ia) 9 1 10 e 9
$125,00-$149.99 iv) 6 (a) 6 - 6
$150.00-8174.99 - 4 - 7 - 3
$175,00-$199.99 - 5 - 9 - 4
$200.00 or greater - 4 - 6 - 4
Composite rate* 3 2 1 1 3 2
Amount varies by employee* 20 18 20 16 20 19
Amount varies by earnings 4 3 1 0) 5 4
Not determinable ... 1" 10 6 7 12 "

See footnotes at end of table.

61



Table 39. Medical care benefits: Percent of full-time participants by coverage for selected categories of care, medium and

large private establishments, 1991

Care provided

Category of medical care Total Subject to | Subject to | Subjectto | O*8, bore
All Covered in full | internal fimits | overalt limits | internal and "
only" only? overall limits
All participants
Hospital room and board 100 100 7 4 46 34 -
Hospitalization—miscellaneous
SOMVICES® see 100 100 7 4 46 33 -
Extended care facility* 100 80 6 18 13 43 20
Home health care* 100 81 18 1" 16 36 19
Hospice ... 100 55 10 9 15 2 45
Surgery
Inpatient 100 100 29 0) 60 cB 0)
Outpatient® 100 100 35 1 55 9 re)
Physician visits
In hospital .. 100 100 at 1 62 17 9)
Office 100 98 6 14 69 9 2
Diagnostic X-ray and laboratory ... 100 100 28 () 60 13 0
Prescription drugs—nonhospital 100 96 3 30 58 5 4
Mental health care
In hospital 100 98 2 19 4 65 2
Outpationt cnn 100 97 a 22 2 73 3
‘Alcohol abuse treatment
Inpatient detoxification’ 100 97 8 20 12 58 3
Inpatient rehabilitation® 100 77 2 20 4 51 23
‘Outpatient rehabilitation® 100 7 1 20 5 51 23
Drug abuse treatment
Inpatient detoxification’ 100 96 8 19 " 58 4
Inpatient rehabilitation® 100 76 2 20 3 51 24
Outpatient rehabilitation’ 100 75 1 19 4 51 25
Professional, technical, and related
Hospital room and board .... 100 100 19 4 47 at -
Hospitalization—miscellaneous
services’ 100 100 19 4 47 31 -
Extended care facility’ .. 100 82 7 18 12 45 18
Home health care‘ 400 84 19 14 13 38 16
100 56 "1 10 16 at 44
Inpatient ens 100 100 32 iv) 58 8 rv)
Outpatient’ 100 100 37 0) 56 ? )
Physician visits
In hospital 100 100 23 1 60 18 iv)
OFFICE ssrnnrn 100 99 7 15 69 9 1
Diagnostic X-ray and laboratory 100 100 28 ) 61 10 )
Prescription drugs—nonhospital 100 96 3 29 58 6 4
Mental health care
In hospital 100 98 a 2 13 60 2
Outpatient 100 96 iv) 23 2 1 4
Alcohol abuse treatment
Inpatient detoxification” 100 97 8 20 14 56 3
Inpatient rehabilitation® 100 74 1 at 5 47 26
Outpatient rehabilitation’ 100 78 1 23 4 50 22
Drug abuse treatment
Inpatient detoxification” 100 97 8 19 13 87 3
Inpatient rehabilitation® 100 73 1 20 4 47 27
Outpatient rehabilitation’ 100 7 1 22 3 50 23

See footnotes at end of table.

47


Table 92. Defined benefit pension plans:' Percent of full-time participants by minimum age and associated service

requirements for normal retirement,’ medium and large private establishments, 1991

|
Protes- | Clerical | Produc- Protes- | Clerical | Produc- i
All par- |technical,| 299 | tion and All par- |technicai,| 274 | tion and !
Age and service requirement? | “| sales | service || Age and service requirement? *) sales | service H
icipants |and relat-) Soars: | Soice ticipants land relat-] Sais | Song \
ed par- | Partici: | parti ‘ed par- | Partici- | partici- |
ticipants | Pants | pants ticipants | Pan's | pants |
Total 100 100 100 100 |
lAge 62 24 22 23 26 i
No age requirement .. 8 7 7 9 No service requirement .. 6 4 3 8 1
Fewer than 30 years’ service «| (*) 0 ) 0 5 years’ service .. 5 5 4 5
30 years’ service 7 6 6 8 10 years’ service .. 7 5 4 ey j
More than 30 years’ service .. 1 1 1 2 11-14 years’ service ) 1) “ 0) |
15 or 20 years’ service 4 4 6 2 |
Age 51-54 .. 0) - - i) 25 years" service 1 1 1 |
30 years’ service ..... ro) - - io) 26-29 years’ service - - io)
30 years’ service 2 3 4 |
Age 55 sceccsesse 2 3 2 2 More than 30 years’ service .. U) o) |
No service requirement wun] — ¢ is) iv) 19)
Fewer than 30 years’ service 1 2 6 1 |lAge 63-64 1 (0) 3 1
30 years’ service .. 1 1 1 1 No service requirement 1 6 2 oO i
More than 30 years’ service ..| (*) - co) 1) 15 years’ service ) - “ 1
20 years’ service .. 6 1 (a)
Age 56-59 . 1 1 1 2
15 or 20 years’ service ... 7) ) ) ) 45 45 47 44
30 years! service .... 1 1 1 2 eq 30 3 33 27
5 years’ service 10 11 11 10
Age 60 ... ee 12 14 abl abl 10 years’ service 3 3 5
No service requirement 2 4 1 1 20 years’ service iv) iv] - oO
1-4 years’ service ) ro) Oy 0 25 years’ service 1 ro) 0 2
5 years’ service 3
10 years’ se 2 2 2. ||Sum of age plus service® . 6 9 6 5
18 years’ service 1 2 1 Equals fewer than 80 .. 1 2 1 1
20 years’ service ie) iv) iv) Equals 80 1 2 2 iv)
25 years’ service 1 6 1 Equals 85 3 3 2 3
30 years' service 2 2 2 Equals 90 1 1 1 i)
More than 30 ye “ “ - a) Equals 91. “ v) 0 to)
Equals 95 9) i) 9) 0
Age 61 ... iv) «) iv) 9)
5 years’ service 0) ro) 0) “)
15 years’ service Oo 10) - re)
* Excludes supplemental pension plans. * Less than 0.5 percent.
? Normal retirement is defined as the point at which the participant 5 In some plans, participants must also satisfy a minimum age or
could retire and immediately receive all accrued benefits by virtue of service requirement.
service and earnings, without reduction due to age.
? If a plan had alternative age and service requirements, the earliest NOTE: Because of rounding, sums of individual items may not equal

age and associated service were tabulated; if one alternative did not —_ totals. Where applicable, dash indicates no employees in this category. i
specify an age, it was the requirement tabulated.

96



Table 21, Paid sick leave: Percent of full-time employees by sick leave provision, medium and large private establish-

ments, 1991—Continued

Profes- Profes-
sional, | Clerical | Produc- sional, | Clerical | Produc-
‘Aiem. | techni | and | tion and ; ‘Alem. | techni | and jtion and
Sick leave policy’ Toyeos [Cal and| sales | service Sick leave policy’ loyees |C@ and| sales | service
Ploys related | employ- | employ- Ployees | ‘lated | employ- | employ-
employ-| ees | ees employ-| ees | ees
ees eos
Sick ieave provided on a per After 15 years of
disability basis®...... 15 24 7 8 service;—Continued
120 and under 180 days 6 1 7 4
After 1 year of service: 180 days OF MOTE eonnnne| 4 2 i o)
Under § day8 eccccsnnen| — () 0) i) i)
5 and under 10 days 1 2 2 1 Atter 20 years of service:
10 and under 30 days 5 8 7 2 Under 5 days .. i) “0 ) )
80 and under 60 days 2 3 1 1 5 and under 10 days...) 1 iv) 1 1
60 and under 120 day 1 2 1 1 10 and under 30 days ... 1 3 2 “6
120 and under 180 day: 2 3 1 i 30 and under 60 days .... 1 2 1 1
180 days or more .... 1 2 1 0 60 and under 120 days 3 5 5 1
120 and under 180 days.) 4 8 4 2
After 5 years of servi 180 days or more .... 3 5 4 2
Under 5 days .... “ Q iv “
5 and under 10 days 1 ) 1 1 After 25 years of service:
10 and under 30 days 2 4 4 1 Under § days .. ry o ry OY
30 and under 60 days a 5 2 2 5 and under 10 days 1 0 1 1
60 and under 120 days 5 8 7 3 10 and under 30 days 1 3 2 )
120 and under 180 days... 2 4 2 1 30 and under 60 days 1 2 1 1
180 days or more 1 2 i ) 60 and under 120 days...) 2 4 4 1
120 and under 180 days.., 5 9 5 2
After 10 years of 180 days or more | 3 5 4 2
service:
Under § days ccc ) “ ) G) After 30 years of servic
5 and under 10 days .... 1 al 1 1 Under 5 days .. iv} iv oO il
10 and under 30 days .. 2 3 2 ) 5 and under 10 days 1 0) 1 1
30 and under 60 days 2 3 3 1 10 and under 30 days ... 1 3 2 )
60 and under 120 days 6 9 7 3 30 and under 60 days 1 2 1 1
120 and under 180 days 3 6 3 2 60 and under 120 days 3 4 4 1
180 days or more 1 2 1 iO) 120 and under 180 days... 5 9 5 2
180 days or more 3 5 4 2
After 15 years of
service: As needed basis” 1 2 1 1
Under § days ..... i) io) is) is)
5 and under 10 days ...... 1 to) 1 1 Other basis* Oy ) 0 -
10 and under 30 days .. 1 3 2 0
30 and under 60 days .. 1 2 1 1 Policy not available .. ) o) - -
60 and under 120 days 3 5 5 1
Not provided paid sick leave 33 13 18 52

* Some plans grant sick jeave at partial pay, either in addition or as
an alternative to full-pay provisions. Employees receiving partial pay
only or no sick leave 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.

? The total is less than the sum of the individual breakdowns be-
cause some employees had annual and per disability plans.

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

21

* Less than 0.5 percent.

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

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

” Plan does not specify maximum number of days.

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

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



their benefits fully paid by their employer. The remainder
most often paid a percent of earnings, up to a specified
maximum contribution’ (tables 28-30).

Benefit payments under sickness and accident insurance
plans were either a percent of employee earnings or a flat
dollar amount. White-collar participants more likely had
coverage by plans with earnings-based formulas than did
blue-collar participants.

Under earnings-based formulas, the percent of earnings
was usually fixed—typically 50, 60, or 67 percent—al-
though some plans varied the percent by length of service
or length of disability. Three-fourths of the participants in
earnings-based plans had a dollar limit on the amount of
the weekly benefit.

Blue-collar workers were the most frequent recipients of
scheduled dollar benefits, which provided either a fixed
weekly amount or varying weekly benefits (usually based
on earnings).

Plans that placed a fixed maximum on the number of
weeks of coverage, commonly 26 weeks, covered virtually
all participants. .

Forty-three percent of the employees with sickness and
accident insurance had to be on the job for a specified time
before the plan covered them. This service requirement
was typically 6 months or less.

Sickness and accident insurance, unlike sick leave, usu-
ally requires a waiting period before benefits begin, most
commonly 1 to 7 days. Waiting periods may be shortened
or eliminated entirely for employees involved in an acci-
dent or who are hospitalized. The waiting period is effec-
tively dropped when sickness and accident insurance is
coordinated with sick leave, because insurance payments
typically start after sick leave pay has ended.

Workers in two States, New Jersey and New York, are
covered by mandatory temporary disability insurance
plans that are at least partially employer financed. Both of
these State plans pay benefits based on a proportion of the
worker’s earnings for up to 26 weeks with a limit on the
weekly benefit ($170 in New York and $272 in New Jersey
during 1991)." The State of Hawaii requires that employ-
ers provide a minimum level of temporary disability in-
come protection—-55 percent of earnings to a maximum of
$274 per week for up to 26 weeks.

Long-term disability insurance
Long-term disability insurance provides a monthly
benefit to employees who, due to illness or injury, are un-

° The prevalence of such contribution formulas is influenced in large
part by the mandatory sickness and accident insurance plans in New
‘York and New Jersey, discussed later in this chapter.

1 Both States permit an employer to substitute a private plan for the
State plan if the benefits provided are at least equivalent. In New York,
many employers agree to pay the employee's share of plan costs. Califor-
nia and Rhode Island also have mandated temporary disability insurance
plans, but these plans require no employer contribution and, thus, are not
included in this survey.

able to work for an extended period of time (tables 31-38).
Generally, LTD benefit payments begin after 3 or 6
months of disability and continue until retirement age, or
for a specified number of months, depending on the em-
ployee’s age at the time of disability. In most instances, the
LTD payments equal some percent of predisability earn-
ings.

Of the full-time employees covered by the survey, 40
percent had LTD coverage; 22 percent of those employees
with coverage had to contribute towards the cost of their
plan. Of those with jointly financed LTD plans, nearly half
could choose from various options under a “flexible bene-
fits plan,” with employee contributions varying by the mix
of benefits selected. (See chapter 8 for additional informa-
tion on flexible benefits plans.) Nearly one-fourth contrib-
uted a monthly amount per $100 of covered earnings, usu-
ally ranging from 20 to 59 cents per $100 of coverage.!!

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

Half of the full time participants had to wait 6 months
after the onset of disability before beginning to receive
LTD payments; 7 percent had longer waiting periods. Ap-
proximately 20 percent of the participants had waiting pe-
riods of 5 months or less. For another 19 percent, LTD
benefits commenced after the expiration of sick leave and
sickness and accident insurance benefits.

Eighty-six percent of all participants received their LTD
benefit as a fixed percent of predisability earnings. The
most prevalent benefit was 60 percent of monthly pay.
Most of these plans set a limit on maximum monthly pay-
ments. These maximums commonly ranged between
$4,001 and $10,000; the average was $6,119.

About 90 percent of the white-collar participants were
in plans that provided a fixed percent of earnings; 76 per-
cent of blue-collar workers were in such plans. Blue-collar
participants in plans with other benefit formulas were
most likely to be covered by plans paying a scheduled dél-
lar amount that varied by the level of the worker’s earn-
ings. In contrast, white-collar workers not covered by a
plan paying a fixed percentage of earnings were most likely
to havea plan that paid a variable percentage based on the
level of earnings.

Seventy-seven percent of participants were in LTD
plans that applied a monthly maximum limit, either a dol-
Jar maximum in plans that pay a fixed percent of earnings
(42 percent), a disability income ceiling (11 percent), or a

11 Covered earnings are that portion of a worker’s earnings to which
the replacement rate formula is applied. For example, if an LTD plan
pays 60 percent of earnings with a maximum monthly benefit of $3,000,
covered earnings would be $5,000 ($3,000 is 60 percent of $5,000).



Table 97. Defined benefit pension plans:’ Percent of
full-time participants by type of vesting schedule, medium
and large private establishments, 1991

Protes-
sional, | Clerical | Produc-
Alt par | techni: | and tion and
Type of vesting schedule ticipants |C@l, and | sales | service
related | partici- | partici-
partici- | pants | pants
pants
Total? . 100 | 100 | 100 | 100
Clift vesting’ ..... 92 92 a 94
Full vesting:
At any age ... 85 at at 90
Less than 5 years’ service i) 0) 0) 9)
5 years’ service . 69 72 71 67
6.9 years’ service ... 0 i) 9) -
10 years’ service .... 16 9 23
After specified age" .. | 7 9 9 4
5 years’ service ... | 6 9 9
10 years’ service ) a) ) i)
‘Sum of age plus service . 1 1 1 “
Graduated vesting’ . 8 8 9 6
Full vesting after:
Less than 7 years’ service ......| 1 1 2 0)
7 years’ service 4 4 5 3
10 years’ SErViCE «ne 2 3 1 3
Other’... een a) ) 1 “

* Excludes supptemental pension plans.

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

© Under a cliff vesting schedule, an employee is not enlitled to any
benefits accrued under a pension plan until satisfying the requirement for
100-percent vesting. The Employee Retirement Income Security Act
(ERISA) specifies 10 years as the maximum requirement for this form of
vesting. As a consequence of the Tax Reform Act of 1986, sponsors of
most single-employer plans who adopt this form of vesting must convert to
a 5-year schedule during 1989. Collectively bargained single-employer
plans must comply by the earlier of: (1) the expiration date of the collec-
five bargining agreement, or (2) January 1, 1991

* Less than 0.5 percent.

* Sponsors may exclude years of service completed before age 18
from counting towards satisfaction of minimum vesting standards.

* Graduated vesting schedules give an employee rights to a gradually
increasing share of pension benefits determined by years of service, even-
tually reaching 100-percent vesting status. During 1989, as a result of the
Tax Reform Act of 1986, sponsors of most single-employer plans who
adopt this form of vesting must alter their schedule to provide full vesting
by the end of 7 years of service.

7 Participants in this group were in plans which call for 50-percent vest-
ing alter 5 years of service if age plus service equals 45. Thereafter, the
vested percentage increases 10 percentage points each of the next 5
years,

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

100



Table 29. Sickness and accident insurance: Percent of full-time participants with benefits based on percent of earnings
formula by maximum weekly benefit, medium and large private establishments, 1991

Maximum weekly benefit

Data
Type of payment total | TO! | Less nasi. | ,P0t
ype of Pay! with | pan [8100 to|$120 to/$140 to]$160 to|$200 to! $250 to| $300 to|$350 to|$400 or] TT | avail:
maxi | gigg | St19 | $139 | $159 | si99 | $249 | $299 | sa49 | $399 | more able
mum
All participants.
Total .. 100 | 75 1 2 1 3] at 5 | 4 3 2] 4] 2]
Fixed percent of earings ... 95 | 74 1 2 1 3 | 31 14 3 2| 123] 2a] 0
Less than 50 ... Oo ) - - e) QO - - - QO - - 1e) -
50 42 36 iu) 2 1 gy 30 1 ie) () () 1 5 -
60... a) wt - 7 oO | Oo 2 1 2 3 2 9 5] ()
66 0) 9) ~ ~ - - - 0) 0 ~ - - - -
67 16 13 0) ) - ¢) 0 1 9 co) 0) 1 2 Oo
70. 3 1 ) - ie) 0) cu 0) - () 0) vy 1 -
75 4 2| - - - - - - - |) 0 - 2 2 -
80 1) 0 - - - : - - - -| 9) 0 1] -
Other percent .. 4 2 - - - - - ay 4 ¢) () 0) 2 .
Percent of earnings varies .. 5 1 - 0) - - - - 0) 0) - 1) arg
Professional, technical, and
related
Total .. 100 78 1 () () 2 40 4 10 3 2 14 22 (0)
Fixed percent of earnings 99 78 1 a) 0) 2 40 4 10 3 2 14 21 oO
Less than 50 1 1 - ~ iv) 0) - - ~ 0 - - (a)
47 43 1 Y ~ iv) 39 4 iv) iW) 1) 1 4 -
2) 2) - -1| 0 1 - 2 4 3 1 9 6/0
zi w) -| of =] 2 fo +f} 6f o | =| 2) 2] 0
3/2) - -7 0 r}o- | 0 -| = 11 0 i] =
5 1 - - - - - - - 1 - 1 4 -
210) - - -J -]o-] - - -| 0 - 2} -
3 1 - - - - - - 1 - - iv) 2 -
Percent of earnings varies ..... +110 - - - - - -/| 0 - -|o 1
Clerical and sales
Total .. 100 | 74 1 1 1 2| 30 4| 46 3 2| 13) a! 0
Fixed percent of earnings ... 93 | 73 1 1 1 2] 30 16 3 2| 12) 2] 0
Less than 50 ... ) - - - ~ - ~ - - 0 ~
50. 39 33 1 1 1/0 29° 1) 0 - 10) 1 6 ~
60. 24 ie | - -| 0 2] - 1 2 2 1 7 5} 0)
67 21 18 Vv) 0“) - iV) 1 2 12 - ~ 2 3 iv)
70. 4 2 1 - iv) () () iv) - Oo iv) 1) 2 -
75 4 2| - - - - - - 1 - 2| -
80. ) - - - - - - - - - - - | 0 -
Other percent .. 3 1 - - - - - - 1 - -| 0 1 -
Percent of earnings varies ..... 7 1 - 0) - - - - 0) 0 - Oo 6) Oo
Production and service
Total .. woo} 74] 0) 4 2 a| 27 5s] 45 3 1] 14) 2] 0
Fixed percent of earnings . 93} 73] () 4 a| 27 5 | 15 1 3] 2] 0
Less than 50 .. iv) - - - - - - - - ¢) .
34 iv) 2 0 25 1 1 oO 1 6 -
19 - oO - 2 1 2 2 1 9 5 -
1 - - - - -| 0 1 - - - -
13 ~ 1 - 9) 9) 1 10 - “ 1 2 0
1 YO - - 0) “ 0) ~ Q) - a) 1 -
2 - - - - - - - C) - 2 1 -
mo} -f =} =f -]) -]} 2} -} -} - |e rf:
2 - - - - - 0) 1 QO iv) a 3 -
Percent of earnings varies 7 1 - - - - - -| 06 - 1 «| 0

* 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.

29



Table 105. Cash or deferred arrangements:' Percent of
full-time employees participating in plans permitting
employee contributions with pretax dollars, medium and
large private establishments, 1991

Profes-
sional, | Clerical | Produc-
techni | and | tion and
Item sixes |cal, and| sales | service
Ployees | related | employ- | employ-
employ-| ees | ees
ees
Percent of all employees in plans
with cash or deferred arrangement] 44 | 56 | 48 | 95
Salary reduction plans*. 4 | s3 | 47 | 29
‘Savings and thrift plans . 2e | 37 | 35 19
Deferred profit sharing plans 4 5 6 3
‘Supplementat contributions to
money purchase pension plans| 1 2 1 1
Freestanding accounts’ 7 10 6 8
Other* i) 1 ie) i)
Regular contributions to pension
plans on a pretax basis .. 2 4 1 1
Defined benefit plans® to) 1/0 ro)
Money purchase pension plans ./ 1 2 1 1
Deferral of profit sharing allocation’ | 4 3 2 6

* Tabulations show percent of employees participating in plans that al-
low income, and associated tax, to be deterred. Not all participants may
elect to have their income deferred. Includes employee contributions to re-
tirement plans under several sections of the Internal Revenue Code (IRC).
Excludes pretax contributions for insurance, dependent care, and other ex-

penses under IRC section 125.

? Employee may elect to make pretax contributions to a long-term sav-

ings or retirement account.

Employer contributions are not made to the plan.
* Employee may allocate funds in a flexible benefits plan to a retire-

‘ment account.
* Less than 0.5 percent.

® Required employee contributions to a defined benefit pension pian
| are made on a pretax basis, but an account separate from the pension
| plan is not established for these savings.
7 Employer profit sharing distribution may be taken in cash by the em-
ployee, triggering current year tax liability, or may be deferred into a long
term account, with corresponding deferral of taxes.

NOTE: Sums of individual items may not equal totals either because of
rounding or because some employees participate in more than one type of
plan. Where applicable, dash indicates no employees in this category.

106. Savings and thrift plans: Percent of full-time
ants by maximum allowable employee contribution,’
medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
; Ait par- | techni. | and [tion and
Maximum allowable contribution® | ji sants| Cal, and| sales | service
icipants) ‘elated | partici- | partici-
partici- | pants | pants
pants
Total 100 | 100 | 100 | 100
Percent of employee earnings 93 ot 95 93
5 percent or less 5 3 7 5
6 percent 2 2 3 2
7 percent 1 a) i) 1
8 percent 3 4 2 3
9 percent 1 1 oO 1
10 percent 12 12 15 9
11 percent 1 7) 1 1
11.01-11.99 percent .. 0° - ) 1
12 percent .. 6 6 6 6
12.01-12.99 percent .. 19) i) @) -
13 percent... 2 2 3 1
14 percent ... 2 2 2 3
20 20 17 22
22 22 23 21
a) ie) re) ro)
6 6 5 6
18 percent . 3 4 2 4
18.01-19.99 percent .. 1 1 1 2
20 percent... 4 3 6 4
20.01-24.99 percent .. 1 1 e) 2
25 percent occ iv) iv) (a) -
Specified dollar AMOUNE ........-eceee0 1 e) 1 1
Internal Revenue Code limit .nnnf 6 8 5 4
Data not available ... 1 0 - 1

' Includes contributions that may not be matched by the emptoyer.

? if maximum varied by participant's length of service, age, or both, the

highest possible percentage was tabulated.

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 107. Savings and thrift plans: Percent of full-time participants by provision for pretax employee contribu-
tions, medium amd large private establishments, 1991

Total 100 100 100 100
Pretax contribution allowed 98 98 99 96
Pretax contribution not allowed .. 2 2 1 4

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

equal totals.
this category.

Where applicable, dash indicates no employees in

110



89, 92, 93, 96, 97, 99-101, 104, 106, 107, 109, 113-119, and
121. These tables display the number of workers covered
by specific features in a benefit area as a percent of all em-
ployees who participate in that general benefit area. The
tables answer questions concerning the typical coverage
provided to persons with a given medical, dental, and vi-
sion care plan; insurance plan; defined benefit pension
plan; or defined contribution plan. As an example of such
questions, what percent of all employees with medical care
receive mental health care coverage?

The third approach focuses closely on an important plan
feature (tables 26, 29, 32, 41-56, 58, 60, 63, 64, 68, 69, 72,
73, 78-80, 83-87, 94, 98, and 108). This third approach
yields answers to questions such as the following: What
percent of all employees with accidental death and dis-
memberment benefits have coverage equal to their life in-
surance benefits? Tables 24, 95, 105, and 112 use a com-
bined approach: the first row of data indicate the percent
of persons who have a particular coverage; the remainder
of the table is based on all employees with that coverage.

This multilevel approach has the advantage of clearly
pointing out typical benefit plan characteristics after the
incidence of the benefit has been established. If they desire,
users can convert any of the second or third types of tables
into the first type by multiplying each data cell by appro-
priate factors. For example, to calculate the percent of all
employees in plans specifying a maximum payment for
orthodontia, multiply the percent of those with orthodon-
tic coverage subject to a maximum (83 percent from table
68) by the percent of dental care participants with orth-
odontic coverage (72 percent from table 68), and then,
multiply the resulting product by the percent of all em-
ployees who have dental care coverage (60 percent from
table 1). In this example, 34 percent of employees are in
plans that impose a maximum on orthodontia payments
(0.83 x 0.68 x 0.60).

Tables 6, 12, 22, 23, 25, 59, 74, 76, 90, 91, 110, and 111
differ from other tables because they display average bene-
fit values rather than percentages of workers. These tables
present the averages for all covered employees; calcula-
tions exclude workers without the benefit.

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

Establishments Number
In sample 3,246
Out of business and out of scope 203
Refusing to respond ....... 899
Responding fully or partially . 2,144

There are three procedures used to adjust for missing
data from partial schedules and total refusals. First, impu-
tations for the number of plan participants are made for
cases in which this number was not reported (approxi-

mately 15 percent of participants in health plans, 12 per-
cent in retirement and capital accumulation plans, and less
than 6 percent of participants in all other types of plans).
Each of these participant values is imputed by randomly
selecting a similar plan from another establishment in a
similar industry and establishment size. The participant
rate from this randomly selected plan is then used to ap-
proximate the number of participants for the plan that is
missing a participation value.

Second, imputations for plan provisions are made when
they are not available in a partially responding establish-
ment. These plan provisions are imputed by randomly se-
lecting a similar plan from another establishment in a simi-
lar industry and establishment size. The plan provisions
from this randomly selected plan are then used to repre-
sent the plan that is missing plan provision data. (This was
done for about 8 percent of participants in sickness and ac-
cident insurance plans, 12 percent of flexible benefits plan
participants, 26 percent of medical, dental, and vision care
participants, 17 percent of long-term disability insurance
participants, 31 percent of retirement and capital accumu-
lation plan participants, and 9 percent of life insurance
plan participants. Imputations were done for less than 1
percent of the participants in paid leave plans.)

For other forms of missing data (totally unusable estab-
lishments and refusals), a weight adjustment is made using
the sample unit employment. This technique assumes that
the mean value of the nonrespondents equals the mean val-
ue 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 charac-
teristics of interest. In most cases, these cells are the same
as those used for sample selection.

One other form of missing data occurs when an estab-
lishment cooperates in the survey but refuses all informa-
tion concerning one or more of the selected occupations.
No adjustment was made for these missing data for this
survey; however, BLS will explore methods to impute for
these data for future surveys. If all sampled occupations in
cooperating establishments had supplied the requested
data, the estimates in this bulletin would represent 40.0
million employees instead of the 35.9 million employees
actually represented.

Survey estimation methods

The survey design uses an estimator that assigns the in-
verse of each sample unit’s probability of selection as a
weight to the unit’s data at each of the two stages of sample
selection. Two weight adjustment factors are applied to
the establishment data. The first factor is introduced to ac-
count for the establishment nonresponse and a second
poststratification factor is introduced to adjust the esti-
mated employment totals to actual counts of the employ-
ment by industry for the survey reference date. These ac-
tual employment figures come from the State unemploy-

131



Table 47. Medical care benefits: Percent of full-time
participants in plans with inhospital surgical benefits by
type of payment, medium and large private establish-
ments, 1991

re Pro-

sional, Cleri- | duc-

All }techni-| £4) | fon

Type of payment partici-| cal, }

pants | and j Sales | serv-

refated| Partict | ice

mii | Pants | partici

vents pants

Total .. 100 | 100 | 100

Full usual, customary, and reasonable

charge! 2g | 32 | 30 | 27

Full usual, customary, and reasonable
charge up to a specified amount, plus
percent of additional charges nwo] 1 1 1 2

Full usual, customary, and reasonable
‘charge up to a specified amount or

subject to a deductible 9] a] eo -
Percent of usual, customary, and

reasonable charge:
80 percent . 41} a9} 42 | 42
85 percent 2 1 1 2
90 percent al 9] 4 8
95 percent a]/-|o]e
Other percent’... to} 12] 9] 9

Percent of usual, customary, and
reasonable charge plus percent of
additional charges based on plan's
coinsurance rate

Dollar allowance per procedure, plus
percent of additional charges:

80 percent

Other percent

Dollar allowance per procedure .. a} a] oe 1

' Inoludes full service benefits provided by health maintenance or-
ganizations or preterred provider organizations,

® Less than 0.8 percent

* Inciudes plans with overall benefit limitations, such as maximum
dollar amounts and deductibles, where the coinsurance rate is 100 per-
cent.

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

53

Table 48. Medical care benefits: Percent of full-time
participants in plans with inhospital surgical benefits by
comparison with outpatient surgical coverage, by type of
medical care provider, medium and large private establish-
ments, 1991

Profes-
sional, | Clerical | Produc-
Allpar- | t2enni- | and tion and
Outpatient surgery cal, and] sales } service

Nelpants) related | partici | partici-

partici | pants | pants
pants

All plans

Total . 100 100 100 100

Coverage the same as inhospital

surgery 75 78 75 74

Coverage differs trom inhospital

surgery coverage 25 22 25 26

Non-health maintenance

organizations
Total .. 100 | 100 | 100 | 100
Coverage the same as inhospital
surgery al 74 70 70
Coverage differs from inhospital
SUIQETY COVEFAGE -nnnnnnnnnnn 29 26 30 30

Heaith maintenance organizations

Total 100 100 100 | 100

Coverage the same as inhospital

surgery ... 97 98 96 98
Coverage differs from inhospital
surgery coverage 3 2 4 2

NOTE: Because of rounding, sums of individual Itema may not equal to-
tals. Whore applicable, dash Indicates no employees in this category.



Interest rates on employee loans were typically deter-
mined by a specific economic indicator (such as the prime
rate or U.S. Treasury bill rate); were at the discretion of the
plan sponsor (employer, employer association, or union);
or varied by the reason for the loan. In the latter case, loans
for the purchase of a home were often available at lower
rates than other loans. The following table shows the per-
cent of participants in savings and thrift plans with loan
provisions by the method of determining the interest rate:

Method of determining
interest on loan

Percent of
participants

Based on given economic indicator . .
At discretion of plan sponsor
Varies by reason for loan
Not determinable .....

Distribution. (See table 114.) At retirement, savings and
thrift plans virtually always allowed for payout in the form
of a lump sum. Many participants could choose from
among a lump sum and other options, such as a lifetime
annuity or installments over a specified period.

Profit-sharing plans

Profit-sharing plans were available to 16 percent of all
employees in 1991 (table 103). There are three types of
profit-sharing plans—cash plans (covering 1 percent of the
workers), deferred plans (11 percent), and plans that offer
a combination of cash and deferred benefits (4 percent). In
a cash plan, benefits are paid directly to the participants in
cash, usually at the end of the year, but a deferred plan
holds money in employee accounts until retirement or
another condition stipulated by the plan (for example, dis-
ability or death). In a combined plan, the employee may
automatically receive a portion of the profits in cash, with
the remainder placed in a deferred account, or the em-
ployee may get a choice of cash or deferred benefits.

Fifty-two percent of the participants in deferred profit-
sharing plans had employer contributions determined by a
specified formula, such as 4 percent of profits if annual
sales were $2 million to $5 million, and 8 percent if sales
exceeded $5 million. The remaining participants were in
plans in which the employer determined its contribution
at its own discretion (table 115).

Once the employer contribution is determined, the plan
may allocate it to individual participants in a number of
ways. The most common method of allocation was as a
proportion of salary (52 percent of plan participants). Oth-
er allocation methods included formulas based on earn-
ings and service, participants’ contributions as a percent-
age of total contributions, and equal allocations to all par-
ticipants. Another plan feature, loans from employee ac-

counts, was available to 27 percent of the participants in
deferred profit-sharing plans.

Participation and vesting

Minimum age and/or service participation require-
ments more often prevailed in defined contribution plans
than in defined benefit plans (table 116). To begin accumu-
lating benefits, 82 percent of savings and thrift plan partic-
ipants and 95 percent of deferred profit-sharing plan par-
ticipants had to meet such requirements. In contrast, 71
percent of defined benefit plan participants faced such
provisions. Of the defined contribution plans with partici-
pation requirements, most required a minimum amount of
service, commonly 1 year, but did not require an employee
to be a designated minimum age. Conversely, defined
benefit pension plans that included participation require-
ments most often specified a minimum age and a mini-
mum amount of service.

Defined contribution plans are subject to the same vest-
ing rules under the Employee Retirement Income Security
Act as defined benefit pension plans (table 117). Vesting
schedules vary significantly between defined benefit and
defined contribution plans, and variations are also com-
mon among individual types of defined contribution plans.
All vesting schedules apply to employer contributions;
employee contributions (including pretax contributions)
are always 100-percent vested.

Immediate full vesting, a feature often provided in de-
fined contribution plans but rarely found in defined bene-
fit plans, was available to 31 percent of savings and thrift
plan participants and 40 percent of deferred profit-sharing
plan participants. Graduated vesting, in which an em-
ployee’s nonforfeitable percentage increases over time un-
til it reaches 100 percent, usually after 5 or 7 years, applied
to 35 percent of participants in savings and thrift plans and.
41 percent of participants in profit-sharing plans. Only 8
percent of defined benefit plan participants had graduated
vesting.

“Cliff” vesting, in which no vesting occurs until an em-
ployee satisfies the service requirements for 100-percent
vesting, appears in a large majority of defined benefit
plans, but was required of only 31 percent of savings and
thrift plan participants and 18 percent of deferred profit-
sharing plan participants. Virtually all of these partici-
pants were fully vested after reaching 5 years of service.

Finally, class-year vesting—under which employer con-
tributions for a particular year (class) become nonforfeit-
able after a specific period of time, usually 3 years or less—
applied to just 3 percent of savings and thrift plan partici-
pants. Such vesting provisions were not found in profit-
sharing plans.

107



Chapter 5. Life Insurance

Life insurance was provided to nearly all full-time em-
ployees in medium and large private establishments in
1991 (tables 71-81). Among workers with life insurance:

52 percent were covered by a multiple-of-earnings
formula, most commonly one or two times earnings;

15 percent were required to contribute toward cov-
erage;

37 percent were covered by plans that imposed re-
ductions on life insurance for the older active work-
er, usually starting at age 65;

51 percent had dependent life insurance protection
available;

44 percent were in plans that continued coverage af-
ter retirement.

The employer generally paid the entire cost of basic life
insurance. When employee contributions were required,
life insurance benefits were frequently offered as part of a
cafeteria plan or reimbursement account. These plans al-
low workers to choose from various benefit options de-
pending on their needs. In such cases, employees may have
to contribute, often in the form of pretax dollars, to obtain
the benefit package they desire. Another method of speci-
fying employee payments included flat dollar amounts per
$1,000 of coverage, which usually amounted to less than
20 cents per $1,000 of coverage per month.

Types and amounts of benefit formulas

Basi¢ coverage for 59 percent of all full-time life insur-
ance participants was linked to their earnings. This link
enabled the level of protection to increase automatically
with a rise in pay. Earnings-based formulas were much
more prevalent among white-collar workers (71 percent)
than among blue-collar workers (46 percent). The most
common method of tying life insurance protection to earn-
ings was to multiply the employee’s annual earnings by a
factor of one or two and round the product to the next
higher $1,000. For example, an employee earning $22,700
would receive $46,000 of coverage under a plan providing
two times earnings ($22,700 x 2 = $45,400, which rounds
up to $46,000).

7

The average multiple-of-earnings benefit formula for all
participants was 1.5 times the amount of earnings. Just
over one-half of participants in these plans had insurance
equal to their annual earnings. One-fourth had coverage
equal to twice their annual earnings.

Forty-two percent of participants covered by multiple-
of-earnings plans had no limit placed on the amount of
coverage available. In plans that had limits, the most prev-
alent maximums observed were between $50,000 and
$499,999, Six percent of participants in plans with a multi-
ple-of-earnings formula had a maximum of a $1,000,000
or more.

A flat dollar amount of insurance, regardless of earn-
ings, covered 36 percent of life insurance plan participants.
Production and service workers were much more likely to
receive this type of benefit (50 percent) than professional,
technical, and related workers (21 percent) or clerical and
sales workers (26 percent). However, the average flat-dol-
Jar amount of life insurance coverage was highest for the
professional, technical, and related workers. at $18,293,
compared to $13,502 for clerical and sales participants,
and $13,033 for production and service workers.

Insurance protection ranging from $5,000 to $15,000
was most prevalent among participants in plans specifying
a flat dollar amount of insurance. A small percentage of
participants in such plans had coverage of $30,000 or
more; professional and technical participants most often
had these larger benefits.

Although it usually provides smaller amounts of insur-
ance than earnings-based formulas, flat amount coverage
has improved over the years. For example, participation in
flat dollar plans providing life insurance of $20,000 or
more increased from 2 percent in 1979 to 10 percent in
1986 and 21 percent in 1991.

In addition to data on specific benefit formulas, survey
data were used to compute average life insurance benefit
amounts, based on assumed earnings levels and years of
service. For the participants in each life insurance plan, a
dollar amount of benefit was computed. These benefits
were then averaged and weighted by current participation.
For participants with assumed annual earnings of $25,000
and 10 years of service, the average available life insurance
benefit was $36,489.°° The average benefit at this earnings
level was highest for professional, technical, and related

2° For further details on these life insurance calculations, see Adam Z.
Bellet, “Employer-Sponsored Life Insurance: A New Look,” Monthly
Labor Review, October 1989, pp. 25-28



Table 23. Paid annual sick leave:’ Average number of days at full pay for full-time participants by sickness and accident
insurance coordination, medium and large private establishments, 1991

Profes- Proes-
sional, | Clerical | Produo-| sional, | Cierical’} Produc-
Allpar-| techni: | and | tion and All par | techni- | and |tion and
Sick leave policy ticconts| 024. and| sales | service Sick leave policy feipants| Cal and| sales | service
Pe related | partici | partici- ps related | partici- | partici-
partici | pants | pants partici- | pants | pants
pants pants
Sick teave days by minimum \Sick leave days by minimum
length-of-service requirement” length-of-service requirement®
After 1 year of service: Atter 15 years of service:
With sickness and accident With sickness and accident
insurance .. | 6) 119; 83| 68 insurance 1a8| 217] 125| 98
Without sickness and Without sickness and
accident insurance ... 149| 179) 126| 189 accident insurance .. 340] 40.2] 341) 26.1
After 3 years of service: After 20 years of servi
With sickness and accident . With sickness and accident
insurance .. | 106} 173] 92) 73 insurance ... 144| 222) 183] 104
Without sickness and Without sickness a1
accident insurance 1a8| 225| 167) 165 accident insurance... 373| 434] 378} 289
After 5 years of service: After 25 years of service:
With sickness and accident With sickness and accident
insurance .. 142) 183/ 100) 7.7 INSUFANCE «nn .| 149] 225| 137| 11.0
Without sickness and Without sickness and
accident insurance 237| 278) 226| 204 accident insurance 406) 471]; 416] 31.1
After 10 years of service: Alter 30 years of service*
With sickness and accident With sickness and accident
insurance .. | 127) 204) 145) 89 insurance some] 16.0} 226] 138) 11.2
Without sickness and Without sickness and
accident insurance 296) 352) 290| 233 accident insurance . 4os| 475| 419) 314

* Paid sick leave plans with a specified number of days available

‘each year.

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

terval.

2 The average (mean) was virtually the same at longer years of serv-

ice.

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

23



Table 85. Defined benefit pension plans:' Percent of full-time participants with earnings-based benefit formulas, by
definition of earnings, medium and large private establishments, 1991

Terminal | Career Terminal | Career
Definition of earnings Total? earnings |" earnings Definition of earings Total’ | earnings | earnings
formula | formula formula | formula
All participants Clerical and sales
Total ... 100 100 100 Total... 100 100 100 |
Basic, or straight-time, earnings only 56 56 58 _||Basic, or straight-lime, earnings only 56 60 48 |
Basic, or straight-time, earnings plus Basic, or straight-time, earnings plus
other earnings | 44 44 42 other earnings 44 40 52
Overtime so 35 35 28 Overtime 33 30 40
Shift differentials 19 23 7 Shift differentials 15 18 8
Bonuses - 30 27 36 Bonuses 31 25 45
Commissions 20 18 2 Commissions... 7 13 28
Professional, tectinical, and Production and service
related Hl
Total... 100 400 100 i
Total... 100 100 100 Hl
Basic, or straight-time, earnings only 56 55 66
Basic, or straight-time, earnings only 54 54 59 |
'Basic, or straight-time, earnings plus |
Basic, or straight-time, earnings plus other earnings .. . 44 45 34
other earnings 46 46 4 Overtime .... 36 37 27 |
Overtime 34 37 18 Shift differentials 20 26 3 |
Shift differentials 23 26 W Bonuses ... 33 32 32
Bonuses .... 27 24 3t Commissions .. a 20 18
Commissions 20 18 at

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.

* Excludes supplemental pension plans.
2 Includes plans with benefit formulas based on a dollar amount that

varies by earnings.

Table 86. Defined benefit pension plans:' Percent of
full-time participants in plans with percent of career
earnings benefit formulas by type and amount of formula,
medium and large private establishments, 1991

Profession-
a Production
Type and amount of | All partici | 24 techni: | Clerical | ang serv.
fonmele pants, | al. and | and sales | co sere
related |participants| ants |
participants, '
Total 400 100 100 100 |
Flat percent per year of
SOMVICE oer 36 43 at 34
Less than 1.00 ... Oo 1 - e
1,00-1.24 .. 6 3 3 10 i
1.25-1.49 6 6 5 7 i
1.50-1:74 .. 15 21 18 7 !
1.75-1.99 1 2 1 1
2.00-2.24 . 2 4 1 1
2.25-2.49 .. 3 6 1 2
2.50-2.74 2 2 1 3
2.75 or greater .. 1 iv) 1 1
Percent per year varie 60 50 63 66 |
By service .. 4 1 2 8 !
By earnings 51 46 54 52 |
By age .. i) 0 a) °
By earnings and
service ... 5 3 7 5
Other" .. 4 6 6 ro) |
i

Excludes supplemental pension plans.

® If a plan contained more than one career earnings formula, a pri-
mary formula was selected and tabulated.

3 ‘Less than 0.5 percent,

* Includes formulas based on a flat percentage of earnings, some
varying by length of service.

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

89


e Eldercare includes employer subsidies for daycare
for elderly or disabled dependents, or time off for
employees to handle such matters.”

” See chapter 8, Plan Administration, for information on reimburse-
ment accounts, an alternative means of subsidizing dependent care ex-
penses.

The incidence of several benefits differed markedly by
employee group. Among these were relocation expenses
and travel accident insurance, which covered a larger pro-
portion of professional and technical employees. This may
be partly due to the greater likelihood of moving and travel
among professional, technical, and related workers than
among the other groups. Severance pay was also more fre-
quently available to white-collar employees.

A Note on the Tables

The majority of the tables presented throughout this bulletin indi-
cate 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 title of
each table. Some tables indicate the percent of all employees covered
by the survey who have a certain benefit; other tables show the per-
cent of employees covered by a certain benefit who have a certain
plan feature.

For example, table 1 indicates that 83 percent of all full-time em-
ployees were covered by a medical care plan. In chapter 4, most’of
the tables present data on the percent of workers with medical care
who have certain provisions. Workers with medical care equal 100
percent in these tables, with smaller percentages indicating the avail-
ability of plan features. For example, in table 40, 100 percent refers to
those workers with medical care plans, and 67 percent indicates
those workers with medical care covered by a fee-for-service plan.
Appendix A discusses data calculation in more detail.

|
|
i



workers ($38,348) and lowest for production and service
workers ($34,715).

Expected life insurance benefits increase as annual earn-
ings increase because of the presence of plang linked to
earnings. For workers with assumed earnings of $55,000
and 10 years of service, the average benefit was $62,796.
Although the average benefit increased with earnings for
all occupational groups, professional, technical, and re-
lated workers had the greatest increases. This results from
the greater prevalence of earnings-based life insurance
benefits—which keep pace with rising earnings—among
professional employees.

Coverage for older active workers and retirees

Thirty-seven percent of participants had plans in which
older active workers faced reduced benefits. Coverage is
reduced to adjust for the increased cost of insuring older
workers.*! Of the participants whose plans reduced cover-
age, one-half would have their first reduction at age 65,
and one-third at age 70. Rarely did reductions occur be-
fore age 65.

Many plans reduced coverage for older workers only
once, typically to 50 percent of the original life insurance
amount. Other plans reduced coverage in several stages.
One common provision was to reduce coverage to 65 per-
cent at age 65, then to 50 percent at age 70.

The average life insurance benefit for active workers
normally begins to decline at age 65. For example, partici-
pants age 65 with 30 years of service who earned $35,000 a
year had an average life insurance benefit of $43,637, com-
pared to $47,615 for younger workers. At age 70, an indi-
vidual with the same years of service and earnings could
expect an average life insurance benefit of $36,286. White-
collar workers age 65 or older usually had a higher average
life insurance benefit than blue-collar workers.

Basic life insurance coverage continued after retirement
for 44 percent of the full-time participants in medium and
large private establishments. This coverage almost always
continued for the rest of the retiree’s life, but the amount of
the benefit was usually reduced at least once during retire-
ment.??

Related protection
Accidental death and dismemberment (AD&D) insur-
ance was available to 71 percent of the full-time life insur-

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

32For more information on retiree life insurance, see Margaret Simons
and Cynthia Thompson, “Life Insurance Benefits for Retired Workers,”
Monthly Labor Review, September 1990, pp. 17-21.

7T2

ance plan participants in 1991. This insurance provides
additional benefits if a worker dies or loses an eye or a limb
in an accident. For four-fifths of these workers, the AD&D
benefit equaled the basic life insurance benefit for acciden-
tal death, and a portion of that benefit for dismember-
ment.*3

Benefits supplementing basic life insurance coverage
were available to just over one-half of the participants. In
the vast majority of cases, these employees had to pay the
full premium for such benefits. The typical supplemental
plan provided term life insurance in multiples of one to
three times annual pay, at the employee’s option. Supple-
mental coverage was nearly twice as prevalent for em-
ployees who had their basic insurance determined by a
multiple-of-earnings formula than for those with a flat dol-
lar amount of coverage.

Life insurance coverage for dependents was available to
one-half of participants. Three-fifths of the workers with
this coverage were required to pay the entire premium, but
the remainder had available either joint employee-employ-
er paid or entirely employer-paid dependent coverage. The
most prevalent method used to provide dependent cover-
age was a flat dollar benefit. In such plans, spousal cover-
age averaged $4,581, and coverage for children averaged
$2,834 in 1991. Among other plans, the employee often
had the option to select specific benefits.

Six percent of the life insurance participants were cov-
ered by plans that provided a monthly income to surviving
members of a deceased employee’s family. These survivor
income benefits were in addition to other benefits, such as
basic life insurance and survivor pension benefits. Survi-
vor income payments were generally a percentage of the
employee’s pay or a flat dollar amount. Benefits usually
continued for 24 months, although some continued until a
specific event occurred, such as the surviving spouse re-
married or reached age 65, or surviving children reached a
given age.

Service requirements

Two-fifths of all life insurance participants had to work
a minimum period to qualify for the plan. The most preva-
jent service requirement for such workers was 3 months,
followed by 1 month. One-third of participants did not
have to meet any service requirement to qualify for bene-
fits. In addition, service requirements could not be deter-
mined for one-fourth of the participants.

33 For more information on accidental death and dismemberment
benefits, see Cynthia Thompson, “Compensation for Death and Dismem-
berment,” Monthly Labor Review, September 1989, pp. 13-17.



Table 80. Life insurance: Percent of full-time participants
with dependent coverage by type and amount of coverage,
medium and large private establishments, 1991

Table 81. Life insurance: Percent of full-time pai
by length-of-service requirements for participation,’

medium and large private establishments, 1991

Profes- Protes-
sional, | Clerical | Produc- sional, | Clerical | Produc-
‘All par. | techni. | and | tion and Al par- | teehni- | and | tion and
Type and amount of coverage | 1" PR Ical, and| sales | service Length-of-service requirement | 2,091. |cal, and| sales | service
'pants| related | partici- | partici- ip related | partici- } partici-
partici. | pants | pants partici- | pants | pants
pants pants
Total .. 100 | 100 | 100 | 100 Total .. 100 | 100 | 100
Death of spouse ... 100 | 100 | 100 | 100 With service requirement 44 32 42 45

Flat benefit. 36 31 36 39 1 month 10 1 11 10
$500 1 10) 10) 1 2 months . 3 2 3 4
$501 to $999 iv) - - () 3 months .. 15 4 13 20
$1,000 5 2 4 8 4-5 months 1 io) 2 1
$1,001 0) - - 0 6 months 7 6 8 8
$1,500 1 1 1 cu) 7-11 months e) fa) fol )

6 6 8 6 4 year 3 2 4 3
2 1 1 3 Over 1 year i) ie) e) e)
2 1 1 4
1 1 1 1 Without service requirement .. 33 44 32 a7
10 10 " 10
More than $5,000 9 10 12 7 Service requirement not
determinable* 25 23 25 27

Benefit varies... 34 37 31 33
Varies by age of spouse 1 2 oO) a) Not applicable - plan not
Varies by age of employee...) (") iv) - c) available to new employees 1 (7) 6 1
Varies by employee earnings | (’) 1 1 0°)
yas ed employee option 28 29 24 29 * Length of time employees must be on the job before they are cov-

‘employee life insurance ered by a plan that is at feast partially employer financed. There is fre-
coverage 5 5 6 4 quently an administrative time lag between completion of the require-
. ment and the actual start of participation, If the lag was 1 month or

‘Amount of coverage not ‘more, it was included in the service requirement. Minimum age require-

. ments are rare,
determinable’ 30 32 33 28 "Lose than 0.5 percent, :
i 0 6 4 ® Service requirements could not be determined usually because
Insurance on spouse not provided...) () 0 i) - plan documents (typically prepared by the life insurance provider) did
Desth of otitd 98 99 98 98 not include the employer's eligibility provisions.

Flal banat Ria 8 o 6 NOTE: Because of rounding, sums of individual items may not equal
$500 4 > totals. Where applicable, dash indicates no employees in this category.
3501 to $999 ° - - °
$1,000 .... W W WW 12
$1,001 to $1,499 “ ) U) vy)
$1,500 3 2 2 3
$2,000 "1 10 8 1
$2,500 2 2 2 2
$3,000 1 1 1 2
$3,001 to $3,999 1 1 2 1
$4,000 1 2 1 1
$4,001 to $4,999 ) V) 0) -

x 7 10 7 4
3 2 1 4

Benefit varies .... 26 25 23 30
Varies by age of child? . 3 1 2 5
Varies by employee earnings | _(') ) 0) 0)

Varies by employes option...) 22 22 18 24
Varies by amount of
employee We insurance
COVETAGE sane 2 2 2 1
Amount of coverage not
determinable’ . 30 3t 33 28
Insurance on child not provided ......! 2 1 2 2

* Less than 0.5 percent.

® In these plans there is dependent coverage, but the amount of cover-

age can not be determined,

* Amount of insurance increases at some point after 1 year of age.

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

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

78





ever, would avoid these tax penalties on withdrawals of
their contributions.

Employer matching contributions. (See table 109.) Em-
ployers give incentives for participating in a savings and
thrift plan by matching all or a portion of the employee’s
contribution (adding this amount to the employee’s ac-
count). Usually the employer matches a portion of the em-
ployee’s contribution up to a specified percent of the em-
ployee’s earnings. For example, the most frequently ob-
served provision in 1991 was for an employer to match half
of the employee’s contribution up to the first 6 percent of
earnings. Assuming the employee contributed 8 percent of
earnings, the employer would add 3 percent (half of the
first 6 percent of the employee’s earnings) for a total con-
tribution of 11 percent to the employee’s account. In con-
trast with these straight percentage matches, approxi-
mately one-fourth of the participants received matching
contribution rates varying by length of service, level of em-
ployee contribution, or company profits.

Table 110 provides projections of the average contribu-
tions that employees and employers could make to savings
and thrift plans in 1991, based on plan provisions and as-
sumed annual earnings.*” The average minimum allowable
employee contribution was projected to range from $186
for workers earning $15,000 a year to $676 for those earn-
ing $55,000 a year. Maximum allowable annual employee
contributions ranged from $2,056 for employees earning
$15,000 to $7,325 for those earning $55,000. Employer
matching contributions accounted for about 40 percent of
total projected contributions to the plan when employees
contributed the minimum allowable amount. When em-
ployee contributions reached the maximum, employer
matching funds were projected at about 20 percent of the
total.

Calculations of average annual employer and employee
contributions were projected for employees completing
10, 15, and 20 years of participation in savings and thrift
plans in 1991. Assumed annual interest rates of return
were applied to these data to yield average lump-sum bene-
fits available at retirement. For example, an employee who
earned $35,000 in 1991 and had participated in a savings
plan for 15 years could have just over $60,000 in her or his
plan account. This is based upon the employee saving at
the midpoint allowable level (the average of the minimum
and maximum levels), receiving the corresponding em-
ployer match, and investing all funds at a constant rate of 6
percent compounded annually. Table 111 provides similar
data for other earnings levels, years of service, and interest
Tates.

“7 These calculations derive from a model that develops aggregate’esti-
mates of contributions to, and lump-sum benefits from, savings and thrift
plans. For a detailed description of the model, see Michael Bucci, “Con-
tributions to Savings and Thrift Plans,” Monthly Labor Review, Novem-
ber 1990, pp. 28-36.

106

Investment decisions, (See table 112.) Nine out of 10 par-
ticipants in savings and thrift plans could choose how they
wanted their own contributions invested. Investment ve-
hicles offered by these plans included company stock,
common stock funds, guaranteed investment contracts,
government securities, money market funds, and long-
term interest bearing securities such as corporate bonds
and Treasury notes. The number of choices in these plans
varied from two to five or more, with three choices being
the most prevalent. Employees were nearly always al-
lowed to split their contributions among the various op-
tions and were permitted to change their investment
choices periodically.

In most cases, employees had less flexibility when it
came to employer contributions. Just over three-fifths of
the participants were permitted to choose how the match-
ing contribution was to be invested. When no choice was
allowed, the plan typically specified that the matching
contribution was invested in company stock.

Withdrawals and loans. (See table 113.) Prior to normal
payout at retirement, disability, or termination of employ-
ment, 50 percent of the participants in savings and thrift
plans were allowed to withdraw all or a portion of employ-
er contributions, down from 71 percent in 1989 and 82
percent in 1986. As withdrawal provisions are cancelled or
further restricted (typically due to the tax penalties asso-
ciated with withdrawals), loan provisions (discussed later
in this section) have become more available.

One-half of the participants in plans permitting with-
drawal of employer contributions were only allowed ac-
cess to funds for hardship reasons, such as medical or edu-
cational expenses. The remaining participants could with-
draw employer contributions for any reason.

Withdrawals of employer contributions were also sub-
ject to a variety of other restrictions. For example, 19 per-
cent of participants who could make withdrawals could
only withdraw part of their employer’s contribution. Ad-
ditionally, 34 percent of participants who could make
withdrawals had a penalty imposed if they- did so. Most
commonly, penalties involved suspending employee con-
tributions, and employer matching contributions, for a
given period, such as 6 months or 1 year. Other penalties
included suspending employer matching. contributions
only, or forfeiting nonvested employer contributions.

Another method of accessing an employee’s account
prior to final payout is a loan—45 percent of participants
in savings and thrift plans were allowed to borrow from
theit accounts in 1991. The availability of loans has risen
steadily in recent years; in 1985, less than 20 percent of
participants could borrow from their accounts. Six per-
cent of participants allowed to borrow were restricted to
loans for emergency or hardship situations. Loans usually
had to be repaid within 5 years, but longer payment peri-
ods may apply for home purchase or renovation loans.



Table 75. Life insurance: Percent of full-time participants
by provisions for age-related reduction of basic life
insurance benefits for current employees, medium and large
private establishments, 1991

Table 76. Life insurance: Average benefit amounts’ for
full-time participants with 30 years of service by.age and
specified annual earnings, medium and large private
establishments, 1991

Protes-
sional, | Clerical | Produc-
All par-| techni: | and | tion and
Provision ticicants| 8! and] sales | service
pants! elated | partici- | partici
partici- | pants | pants
pants
Total too | 100 | 100 { 100
Life insurance changes ... 37 40 40 34
Life insurance reduced 37 40 40 34
Reduction begins at:
‘Age 60 or before 1 1 1 0)
Ages 61 to 64 9) ) 1 1)
Age 65 .. 19 21 20 18
Ages 66 to 69 4 3 6 3
Age 70. 13 14 13 12
Age 71 or later ... 0) 1 C) ¢)
Reduetion in maximum life
insurance benetits 0) iv) iv) 0
Life insurance benefits do not
change 63 60 60 66

* Less than 0.5 percent.

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

Table 77. Life insurance: Percent of full-time participants in
basic life insurance plans by effect of retirement on
coverage, medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
‘ll par- | techni- | and | tion and
Effect of retirement Weipoats| ah and) sales service
ip related | partici- | partici-
partici | pants | pants
pants
Total 100 | 100 | 100 | 100
With coverage! 44 46 45 43
Without coverag 53 se) 63 | 54
Not determinable ..... 3 2 2 3

* Includes plans in which coverage is fully paid by retiree.

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

716

Annual salary
Age
$25,000 | $35,000 | $45,000 | $55,000
All participants
Age 65 $33,464 $43,637 $50,212 $57,669
Age 70 28,116 | 36,286 | 41,846 | 47,824
Age 75... 26,641 34,074 39,295 44,828
Professional, technical,
and related
93,542 | 44,510 | 54,728 | 63,905
28,827 38,052 46,577 54,077
27,846 | 36,284 | 44,323 | 51,347
34,067 | 44,995 | 54,505 | 63,583
28,113 | 36972 | 44,561 | 51,706
26,649 | 34,788 | 41,942 |. 48,659
33,106 42,413 45,289 50,877
27,691 | 34,872 | 37,607 | 42,070
26,094 32,379 34,913 38,940

' Life insurance figures are average amounts for both plans with and
without age-related reductions.

Table 78. Life insurance: Percent of full-time participants
with accidental death and dismemberment insurance by
amount of benefit,’ medium and large private establishments,
1991

Profes-

sional, | Clerical | Produc-

techni | and | tion and
Hem dopants eal, and| sales | service

related | partici | partici

partici- | pants | pants

pants

Total . 100 100 100 100

Multiple of life insurance benefit

Less than 1 times 6 5 4
FHIMOS erro 8t 81 85 80
Greater than 1 times 2 3 2 2
Flat amount .... 7 5 6 9
$2,000-$4,999 1 Q 1 1
$5,000-$9,999 2} @ 2 4
$10,000-$19,999 2 1 1 2
$20,000-829,999 .. 1 3 1 io)
$30,000 or greater 1 ia) i?) 1
Other? 4 6 4 1

' Benefits shown are payable for accidental death and are the maxi-
mum payable for dismemberment.

? Less than 0.5 percent.

* Includes plans in which basic life insurance benefits are expressed as

a flat dollar amount and accidental death and dismemberment benefits are

expressed as a multiple of earnings.

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



Table 99. Defined benefit pension pians:' Percent of
full-time participants by type of postretirement survivor
annuity, medium and large private establishments,

1991

Profes-
sional, | Clerical | Produc-
; Al par- | techni. | and tion and
Type of annuity for surviving spouse | j,-; Jantg | Cal, and | sales | service
pants | related | partici- | partici-
Partici- | pants pants
pants

Total .. 100 | 100 | 100 } 100

‘Spause’s share of joint-and-survivor

annuity? only ... 7 99 99 96

50 percent of retiree’s pension 27 19 25 32
51-99 percent of retiree’s
pension 4 2 2 5
100 percent of retiree’s pension.| 2 1 1 3
Alternative percentages at
retiree's option’ ... 65 76 71 55
Spouse's share of joint-and-survivor
‘annuity plus portion of retiree's
pension som] 0) ) 1
Portion of retiree’s accrued pension
only .. 2 1 1 4

Excludes supplemental pension plans.

* An annuity that provides income during the lifétime of both the retiree
and the surviving spouse. The accrued pension will usually be actuarially
reduced at retirement because of the longer length of time that payments
are expected to be made. Employees and their spouses are required to
waive the spouse annuity in writing if they desire a pension during the em-
ployee’s lifetime only or another option offered by the plan, such as guar-
antee of payments for a specified period.

> Alternate percentages were usually 50, 67, or 100 percent.

* Less than 0.5 percent.

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

102

Table 100. Defined benefit pension pians:' Percent of
full-time participants by type of preretirement survivor
annuity, medium and large private establishments, 1991

Profes-
sional | Clerical | Produc
; ‘All par- | techni. | and |tion and
Type of annuity for surviving spouse | yipants| Cal, and| sales _| service
related | partici- | partici-
partici | pants | pants
pants
Total .. 100 | 100 | 100 | 100
Preretirement survivor annuity
provided .. anne] — 98 99 99 99
Equivalent of joint-and-survivor
ANAUIIY® os snnnserne 88 89 90 86
Based on early retirement” 83 84 4 82
Less than 50 percent of
employee pension .. oO 0 ia 0)
50 percent of employee
pension... | 73 74 74 72
At extra employee cost... 7 5 5 9
51-99 percent of employee
IASIOM een | 3 4 3 3
100 percent of employee
PENSION seer 2 2 2 2
Alternative percentages of
pension at employee's
option® ... 5 3 4 5
At extra employee cost 1 1 1 1
Based on normal retirement” 5 5 6 4
Portion of accrued employee
benefit W 10 9 2
Reduced for early
retirement .... aoe] 5 4 3 7
Unreduced for early retirement 4 4 4 4
Based on service projected to
normal retirement date 2 2 2 2
Other annuity? vcs) — oO iv 1
No preretirement survivor annuity
provided . enn 1 1 1 1

* Excludes supplemental pension plans.

® 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 be-
cause of the longer length of 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.

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

* Less than 0.5 percent.

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

© ‘Alternative percentages were usually 50 or 100 percent.

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

® Includes annuity based on a dollar amount formula or percent of earn-
ings.

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



4

Table 82. Defined benefit pension plans:' Percent of
full-time participants by method of determining retirement
payments, medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
‘Atpar-| #eehni. | and | tion and
Basis of payment? teiponte| Cal: and) sales | service
‘PANS | elated | partici- | partici-
partici- | pants pants
pants
Total 100 100 100
Terminal earnings formula 56 nm 64 43
No alternative formula 38 47 47 28
Terminal earnings alternative 5 | 6 3 5
Career earnings alternative 3 3 4 2
Dollar amount alternative® 10 14 10 7
Career earings formula .. 14 15 18 4
No alternative formula 10 10 13
Career earnings alternative ) 1 “6 7)
Dollar amount alternative® 4 4 4 3
Other alternative formula. oO - e -
Dollar amount formula? 23 9 13 36
No alternative formula .. 21 9 4 33
Dotlar amount alternative’ 2 iv) 2 3
Percent of contributions
alternative ) - - )
Percent of contributions formula .. 4 oO 2 8
No alternative formula 4 ro) 2 8
Cash account 3 5 3 2
No alternative formula .. 3 5 3 2

* €xcludes supplemental pension plans.

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

3 Includes formulas based on dollar amounts for each year of service
and flat monthly benefit varying by service.

* 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.

87

Table 83. Defined benefit pension plans:' Percent of
full-time participants in plans with percent of terminal
earnings benefit formulas by type and amount of formula,
medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
Allpar. | techni. | and | tion and
‘Type and amount of formula” ticipants | C2" and| sales | service
related | partici- | partici-
partici- | pants pants
pants
Total 100 | 100 | 100 | 100
Flat percent per year of service 42 37 39 50
Less than 1.0 3 i 1 7
1.00-1,24 6 5 6 8
1.25-1,49 6 5 6 8
1.50-1.74 ..... 18 16 18 23
4.75-1.99 3 4 3 2
2.00-2.24 .. 5 6 7 3
2.25-2.49 i) (o) e ie)
2.50-2.74 . e - 2 -
2.75 or greater .. 0 a) °
Percent per year varies: 57 63 6t 49
By service 9 9 9
By earnings 36 42 38 29
By earnings and service .. 12 1 14 "1
Othert 1 1 ) 1

"Excludes supplemental pension plans.

2 if @ plan contained more than one terminal earings formula, a pri
mary formula was selected and tabulated.

* ‘Less than 0.5 percent.

* Includes formulas based on a fiat percentage of earnings, some vary
ing by length of service.

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



Table 51. Medical care benefits: Percent of full-time
participants in fee-for-service plans with inhospital surgical
benefits by second surgical opinion provisions, medium and
large private establishments, 1991

Profes-
sional, | Clericat | Produc-
techni- | and | tion and
tem poets cal, and| sales | service

related { partici} partici-
partici- | pants | pants
pants

Total .. 100 100 100 100

With second surgical opinion

provision 70 69 69 mn

Without penalties for

non-compliance .. 27 29 26 26

With penalties for non-compli-

ance ... 43 40 43 45
For selected procedures’ 35 at 34 38
No payment without

second opinion .. 3 3 2 3
Reduced coinsurance

without second opinion .| 32 28 32 35

For all procedures ....ssunun| 6 7 7 4
Reduced coinsurance

without second opinion | @) ca) 1 ca)

Schedule of payments
tower without second
opinion

Other lower payments

9) is) }
5 5

Details of incentive not

available 2 2 3 2
Without second surgical opinion
provision 30 31 31 29

* Procedures most commonly mentioned were tonsillectomy, adenoid-
ectomy, hysterectomy, surgery of the nose or back, removal of the gall
badder, and coronary bypass surgery.

? Less than 0.6 percent.

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

55



Table 43. Medical care benefits: Percent of full-time
participants in. plans with overall limitations on benefits by
maximum out-of-pocket expense provisions, medium and
large private establishments, 1991

Table 44. Medical care benefits: Percent of full-time
Participants in plans with overall limitations on benefits by

total annual deductible and maximum out-of-pocket expense,

medium and large private establishments, 1991

Profes-
sionat, | Clerical | Produc-
All pare techni. | and |tion and
Provision ticipants [2 and| sales | service
related | partici- | partici-
partici- | pants | pants
pants
Total ... 400 | 100 | 100 | 100
With limit on out-of-pocket expense.) 85 87 88 83
With an annual dollar maximum
on out-of-pocket expense. 83 85 85 at
Per individual:
1 1 1 1
1 ie) iv) 1
1 1 1 1
7 9 7 6
1 1 a) 1
9 W 9 8
4 4 5 5
$750-$999 .. 10 9 9 "1
$1000 ... a a 24 24
$1,001-$1,499 7 9 8 7
$1,500-$1,999 9 7 4 40
$2,000 .. 6 7 7 6
$2,001 or greater 5 5 5 5
Per family
$1-$499 1 a fe} 1
1 1 1 1
3 4 2 2
3 3 3 3
$1,001-$1,249 2 2 2 2
$1,250-81,499 2 1 1 2
$1500 3 3 4 2
$1,501-$1,999 4 4 4 5
$2000 7 9 8 6
$2,001-$2,999 6 8 5 6
$3000 7 8 W 5
$3,001 or gi 7 6 9 6
No family maximum .. 37 39 35 37
Annual maximum on out-of-pocket
expenses varies by coinsurance
rate* se 2 2 3 2
No out-of-pocket expense required®.| 3 4 4 3
Other’ 1 1 1 1
No limit on out-of-pocket expenses .| 41 8 7 14
Average dollar maximum on
individual out-of-pocket expense ...| $1,170 | $1,134 | $1,175 | $1,188
Average dollar maximum on family
out-of-pocket EXPENSE wn 2,326 | 2,956} 2,599] 2,169

* Deductible amounts were excluded from computation of the out-of-
pocket dollar limits. With rare exceptions, an annual out-of-pocket limit
was specified, 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, Under federally qualified HMO’s, there is a limit on the amount
‘of copayments the participant must pay, equal to a percentage of the total
premium. These plans were excluded from the computation of the out-of-
pocket dollar limits.

? Legs than 0.5 percent.

> In a few plans, family out-of-pocket expense could not be computed
because no limit on family deductibles was given.

* Some plans reimburse medical expenses at more than one coinsur-
ance 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.

All covered expenses are paid at 100 percent.

© Includes plans where the limit on out-of-pocket expenses varies by

the individual participants’s earnings.

51

Profes-
sional, | Clerical | Produc-
‘Alt par.| techni: | and | tion and
Dollar amount! ticipants | C8} and) sales | service
related | partici- | partici-
partici. | pants | pants
pants
Total 100 | 100 | 100 | 100
Plan specifies annual deductible and
out-of-pocket maximum? 7 79 78 75
$300-8499 .. 1 2 .) 1
5 4 5 5
$501-$599 . 1 2 1 1
$600 5 8 4 4
$601-$999 . 8 14 9 9
$1,000 . 6 5 5 7
$1,001-$1,099 .. 1 o) 1 1
$1,100. 5 5 4 5
$1,101-$1,499 14 14 15 13
$1,500-$1,699 9 9 10 8
$1,700-$2,099 6 5 6 6
$2,100 and greater .. 1" oT " 10
Based on earnings .. 4 4 5 3
Plan does not specify maximum
annual out-of-pocket expense or
annual deductible 23 2 22 25

' Total amount of deductible and out-of-pocket maximum is for each in-
sured person. In some pians, the individual and family deductibles are
identical.

2 Under federally qualified HMO’s, there is a limit on the amount of
copayments the participant must pay, equal to a percentage of the total
premium. These plans were excluded from the computation of the out-of-
Pocket dollar limits.

* Less than 0.5 percent.

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



Table 10, Paid vacations: Percent of full-time participants Table 11. Paid vacations: Percent of full-time participants
by length of service required to take vacation, medium and by unused vacation policy, medium and large private
large private establishments, 1991 establishments, 1991
Protes- Profes-
sional, | Clerical | Produc- sional, | Clerical | Produc-
and | tion and techni- | and | tion and
Length of service requirement tek par lcal, and] sales | service Policy ies patg| cal and] sales | service
'PantS) ‘elated | partici- | partici- ps related | partici- | partici-
partici- | pants | pants partici- | pants | pants
pants: pants
Total .. 100 100 100 100 Total .. 100 100 100 100
With service requirement o1 87 92 93 Carryover only 31 46 34 21
1 month ....... we 9 7 4 Cash-in only 1 6 7 17
2 months : 1 1 i i Carryover and cash-in ... 7 9 8 5
3 months 7 8 8 6 Unused benefit lost ..... 46 35 46 52
4-5 months ... 1 1 0) 1 Data not available wo... 5 3 5 5
6 months 30 38 36 23
7-11 months .... 1 0) 1 1
PR beatae ae) 78 7 40 | 88 NOTE: Because of rounding, sums of individual items may not equal
ver 1 year . totals. Where applicable, dash indicates no employees in this category.
Without service requirement .. 7 13 7 Ss
Service requirement not
determinable 2 1 1 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 12. Paid vacations: Average number of days for full-time participants by length of service and cash-in/carryover
provisions, medium and large private establishments, 1994

T
Vacation days by j
minimum length of All plans Cashin, carryover, | Carryover only Cash-in only Cashin and No cash-in or
service requirement’ or both carryover carryover
After 1 year 93 102 106 7.2 13.5 84
After 3 years 114 117 118 10.0 14.2 10.5
After 5 years 13.4 144 14.5 16 168 12.7
After 10 years 16.5 17.4 176 15.0 206 156
After 15 years 187 19.5 19.7 174 22.5 179
After 20 years .. 20.4 21.2 21.3 19.2 243 19.8
Aiter 25 years a5 22.2 223 20.3 24.8 20.9
After 30 years? 21.9 22.5 22.6 20.5 24.9 21.4
* Employees either are granted a specified number of days after * The average (mean) was essentially the same for longer lengths of
completion of the indicated length of service or accrue days during the _ service.
next 12 month period. The total number of days are assumed available
for use immediately upon completion of the described length-of-service NOTE: Computations of average excluded workers with zero vacation
interval, days.



Some advanced managed care programs can consist of
four or more features such as the following: Preadmission
review of all hospital admissions for nonemergency or
nonmaternity care, concurrent review to monitor care
while hospitalized, discharge planning to coordinate a
continued course of treatment in more appropriate health
care settings, and mandatory second surgical opinions for
selected procedures.

Among the features studied in 1991, about one-third of
fee-for-service participants and preferred provider organi-
zations each had their care subject to utilization review
(table 50). This is the process of reviewing the appropriate-
ness and quality of care provided to patients. More gener-
ous benefit provisions for prehospitalization testing, a
means of decreasing the length of hospitalization, covered
approximately three-fifths of the fee-for-service partici-
pants and two-fifths of preferred provider organization en-
rollees.

Some managed care programs may consist of only one
or two cost containment provisions, such as mandatory
second surgical opinions and preadmission certification.
Sixty-three percent of the fee-for-service participants had
to get authorization before being admitted to a hospital
(except in cases of emergency), compared to 68 percent of
participants in preferred provider organizations. Less
prevalent cost containment features in fee-for-service
plans included incentives for the employee to audit hospi-
tal bills and incentives for child deliveries in lower cost
birthing centers, rather than in hospitals.

Increasingly, health maintenance organizations may re-
quire a separate deductible for hospital admission to dis-
courage unnecessary hospitalization. These deductibles
were most often between $50 and $200 per hospital admis-
sion. In 1991, 15 percent of HMO participants in medium
and large private establishments had a separate hospital
admission deductible.

In fee-for-service plans, second surgical opinion provi-
sions applied to seven-tenths of participants with inpatient
surgical benefits (table 51). Three-fifths of these plan en-
rollees were assessed penalties for not obtaining second
opinions, generally applying only to selected procedures.
The most common penalty was to reduce the coinsurance
rate if a patient did not seek a second opinion.

Second surgical opinion provisions are rare in HMO’s.
By their very nature HMO’s emphasize preventive, cost ef-
ficient medical care. Built-in forms of utilization review,
including second surgical opinions, are automatically pro-
vided.

Prescription drug benefits

Virtually all participants had medical plans that covered
outpatient prescription drugs (table 39). Inpatient pre-
scription drugs are always covered under hospital miscel-
laneous services, generally in the same fashion as room
and board charges. Outpatient prescription drugs are al-

42

ways covered under a separate provision of the medical
plan.

Coverage for outpatient prescription drugs differed by
type of medical plan. Usually, in non-HMO plans, outpa-
tient prescription drugs were covered under overall limita-
tions only; that is, before any benefits were provided, the
participant had to meet a yearly deductible or a coinsu-
rance requirement. However, in HMO’s, prescriptions
were usually subject to a minimal copayment, commonly
$3 or $5 per prescription.

HMO participants are somewhat more likely than their
non-HMO counterparts to have prescription drug cover-
age in full. However, the HMO participants are also more
likely not to have prescription drug coverage at all. Seven
percent of participants in HMO’s had full coverage for
prescription drugs; only 2 percent of non-HMO parti
pants had full coverage. Twelve percent of HMO partici-
pants were not covered for prescription drug benefits at
all, compared with 2 percent of non-HMO participants.

Pharmacies can often fill a prescription using either a
brand name drug or a generic drug. Fourteen percent of.
the fee-for-service participants received higher reimburse-
ment for obtaining generic rather than brand name pre-
scription drugs, when generic drugs are available (table
50). Generic drugs cost less than brand name drugs.

Mail order drug programs were available to 16 percent
of fee-for-service participants. These programs supplied
drugs for maintenance purposes, that is, drugs required on
a continuous basis. In such arrangements, participants of-
ten receive a higher reimbursement or pay less for mail or-
der drugs than for drugs purchased directly from a phar-
macy.’®

Mental health coverage

Mental health coverage, though available to nearly all
participants, was frequently subject to more restrictive
limitations than other illnesses (table 52). Of the medical
care participants with mental health benefits, eight-tenths
had more restrictive hospital coverage for mental illness
than for other ailments. Plans commonly limited the dura-
tion of hospital stays (often to 30 or 60 days per year for
mental health care, compared to 120, 365, or unlimited
days for other illnesses)" and frequently imposed a sepa-
rate, lower dollar maximum on covered hospital expenses
(such as a lifetime maximum of $50,000 on all mental
health benefits).

Even more restrictive was coverage for mental health
care outside the hospital (psychiatric office visits). Nearly

‘8 For amore comprehensive discussion on prescription drug coverage,
see Cathy Baker and Natalie Kramer, “Employer-Sponsored Prescrip-
tion Drug Benefits,” Monthly Labor Review, February 1991, pp. 31-35.

19 Tn some plans, a limited number of days of mental health care in the
hospital were covered at the full semiprivate rate. After these limits were
reached, mental health care was then subject to overall plan limits such as
deductibles and coinsurances.



Nineteen percent of the vision care participants had eye
examinations paid in full. Eyeglasses were fully covered
for 11 percent of the participants, and contact lenses were
rarely covered in full.

Finally, 14 percent of the medical participants were cov-
ered for eye examinations only (table 57). This coverage

46

did not form part of a regular vision care plan. Such lim-
ited benefits covered two-thirds of all participants enrolled
in an HMO.”

29 For more details on vision care benefits, see Rita S. Jain, “Employer-

Sponsored Vision Care Brought Into Focus,” Monthly Labor Review,
September 1988, pp. 19-23.



Table 72. Life insurance: Percent of full-time participants in plans with multiple-of-earnings formulas’ by amount of basic
insurance and maximum coverage provisions, medium and large private establishments, 1991—Continued

In plans In plans with maximum coverage
without
Formula Total | maximum |g, | Less than | $50,000- } $100,000. | $260,000. | $500,000- | $1,000,000
coverage: $50,000 $99,999 $249,999 $499,999 $999,999 or more
Production and service
Total... 100 47 53 3 18 14 4 5 5
Life insurance is equal to annual
earnings times:
Less than 1.0 ., 4 2 2 1 1 «) 0 e el
10. a 55 25 30 2 10 5 3
1 ¢) a) = - © rv) = a)
1 4 7 io) 2 1 17) 1
0) (9) 9) > - i) - iv) -
22 12 10 iv) 2 3 3 1 1
1 - 1 - ro) - 1 - -
2 ) 2 - - 1 0 1 0
3, 2 1 1 co) - ° 0) iy 0°)
More than 3.0 2 1 1 - - a) 1 ra) ro)
Multiple varying with earnings eO iV) - - - - - - -

"Includes participants in plans in which insurance equaled a multiple
In such cases, only the
multiple of earnings was included in the tabulation.

? When the multiple-of-eamings formula varied with age, the maximum
multiple was tabulated. A few plans varied the multiple-of-eamnings for-
mula according to service; in these cases, a participant was assumed to

of earings, plus or minus a specific.amount.

Table 73. Life insurance: Percent of full-time participants in
plans with flat dollar insurance’ by amount of basic
insurance, medium and large private establishments, 1991

have 15 years of service.
* ‘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 74. Life insurance: Average benefit amounts’ for
full-time participants by specified annual earnings and years
of service, medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
Alt par. | ‘9ehni- | and | tion and
‘Amount of insurance ticipants /°2 and] sales | service
related | particl- | particle
partic | pants | pants
pants
Total 100 | 100 | 100 | 100
Less than $2,000 1 e 3 1
$2,000-84,999 .. 4 2 3 4
$5,000-§9,899 .. 28 20 20 33
$10,000-$14,999 35 37 48 at
$15,000-$19,999 "1 14 8 4
$20,000-$24,999 9 8 7 10
$25,000-$29,999 4 4 3 3
$30,000-$34,999 1 2 1 1
$35,000-$39,999 2 1 2 2
$40,000-$44,999 1 «) fo) 1
$50,000-$54,999 3 4 1 3
$55,000 and over 2 7 3 ro)

* Excludes participants in plans where insurance was a flat amount

based on service.
? Less than 0.5 percent.

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

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

75

Annual salary
Years of service
$26,000 { $35,000 | $45,000 | $55,000
All participants.
$47,407 | $54,674 | $62,796
| 96) 47,565 | 54,892 | 62,954
$0 YEA isin, 36,687 47,615 54,862 63,004
Professional, technical,
and related
10 years 98,348 | 50,219 | 61,330 | 71,369
20 years 38698 | 50,569 | 61,680 | 71,719
30 years 38,814 | 50,686 | 61,797 | 71,835
Clerical and sales
10 years 37,767 | 49,745 | 60,264 | 70,331
20 years 37,877 | 49,855 | 60,374 | 70,441
BO YEAS oo ecnen 37,913 | 49,891 | 60,410 | 70,477
Production and service
10 years 94715 | 44,515 | 47,799 | 53,768
20 years 34,782 | 44,582 | 47,866 | 53,835
30 years 34,799 | 44,599 | 47,883 | 53,851

* Life insurance figures are average amounts from all types of plans
prior to any age-related reductions in benefits.



Table A-5. Standard errors for table 22 -- Paid sick leave:
Average number of days at full pay for full-time participants
by type of plan, medium and large private establishments,
1991

Protes-
Al'par. | Sonal, | Clerical Production
Item ticipants technical, | and sales service
and related|participants|, Sence
participants Particips
Paid annual sick leave

days by minimum

length of service

requirement:
‘tter 1 year 07 13 06 1
After 3 years .. 1.0 22 8 11
After 5 years . 12 24 42 12
After 10 years 17 34 22 14
Alter 15 years 19 35 25 15
Atter 20 years 20 37 27 16
After 25 years 22 38 28 18
After 30 years 22 3.8 29 18

Paid per disability sick

leave by minimum

length of service

requirement:
After 1 year 49 79 41 8.6
After 3 years ..... 40 7 33 69
After 5 years .... 45 76 4.0 64
After 10 years 5.0 as 4a 66
After 15 years 5.9 94 49 73
Ater 20 years 67 103 87 89
After 25 years 76 41.3 67 10.9
Alter 30 years 76 113 66 11.0

Table A-7, Standard errors for
benefits: Average monthly coni

table 59 --

tribution of full-time

Health care

participants in contributory plans, medium and large private

establishments, 1991

Profes-

Ail pare | sional, | Clerical | Production
Type of coverage ticipants | teehnical, | and sales | O°.
Pan's land related| participants) sricipants
participants! per
All plans
Employee coverage sos4 | $073 | so7e | st.14
Family coverage .. 2.86 377 4.34 454
Health maintenance
organizations
Employee coverage 1.80 1.90 2.04 2.52
Family coverag 5.02 5.32 5.96 9.19
Non-health
maintenance
organizations
Employee coverage Ral 77 89 4.25
Family coverage ... 3.17 397 6.20 491

137

Table A-6, Standard errors for table 23 -- Paid annual sick
leave: Average number of days at full pay for full-time

participants by sickness and accident insurance
coordination, medium and large private establishments,

1991
Profes- &
tem aoa | Sona, | Sta |”
ticipants and related|participants|__Se"vice
participants participants
After 1 year of service:
With sickness and
accident insurance ... 03 06 Os O38
Without sickness and
accident insurance .... 1.2 18 1.0 24
After 3 years of service:
With sickness and
accident insurance ...| 14 44 A 14
Without sickness and
accident insurance ... 14 24 1.2 22
After 5 years of service:
With sickness and
accident insurance ...| 14 49 6 5
Without sickness and
accident insurance ... 17 25 19 23
Aiter 10 years of service:
With sickness and
accident insurance ... 16 5.0 a: &
Without sickness and
accident insurance ... 256 36 3.4 25
After 15 years of service:
With sickness and
accident insurance ... 15 48 1.0 11
Without sickness and
accident insurance ... 29 43 38 26
After 20 years of service:
With sickness and
accident insurance ... 1.6 43 14 13
Without sickness and
accident insurance ... 3.2 48 41 28
After 25 years of service:
With sickness and
accident insurance ...| 17 48 13 16
Without sickness and
accident insurance .., 34 49 44 3.0
After 30 years of service:
With sickness and
accident insurance .. 17 48 43 1.6
Without sickness and
accident insurance .. 3.5 5.0 45 34



ties, subsidized meals, employee discounts, relocation al-
lowances, job-related and non-job-related educational as-
sistance, employee assistance programs, and sabbatical
leave.

Sampling frame

The list of establishments from which the sample was se-
lected (called the sampling frame) was the State Unem-
ployment Insurance (UI) reports for the 50 States and the
District of Columbia. The reference date of the UI reports
that were sampled varies by industry from 1984 to 1989.
This results from the nature of sample selection and from
replacement, which is described below.

Sample design

The sample design for the Employment Cost Index and
this survey is a 2-stage probability sample of detailed occu-
pations. The first stage of sample selection is a probability
sample of establishments; the second stage is a probability
sample of occupations within the sampled establishments.

Establishment sample

The sample of 3,246 establishments was the subset of the
ECI sample that covered establishments having 100 em-
ployees or more at the time of sample selection. The ECI
sample is updated periodically over a 4-year cycle. Each
year, new sample establishments are introduced into the
survey in selected industries, and these new ones replace
the sample units previously selected in those same indus-
tries. Using this procedure, the entire sample is replaced
approximately every 4 years.

The sample of establishments is selected by first stratify-
ing the sampling frame by industry group, and implicitly,
by region (State) and establishment employment. The in-
dustry groups usually consist of 3-digit Standard Indus-
trial Classification groups, as defined by the Office of
Management and Budget, which the survey covers.

The number of sample establishments allocated to each
stratum (defined by industry) was approximately propor-
tional to the total employment of all sampling frame estab-
lishments in the stratum. Thus, a stratum that contained 1
percent of the total employment within the scope of the
survey received approximately 1 percent of the total sam-
ple establishments. Some industries are sampled at a high-
er rate than others because of publication requirements or
highly variable data.

Each sampled establishment was selected within an in-
dustry group with a probability of selection proportional
to its employment. For example, consider two establish-
ments, A and B, with respective employment of 5,000 and

1,000. Establishment A is five times more likely to be se-
lected than establishment B.

Occupational sample
At the beginning of each field visit that a Bureau field

130

economist makes to collect data from a sampled establish-
ment, a second-stage probability sample of occupations is
selected from the establishment. Data are then collected
for these sampled occupations. The number of occupa-
tions selected from an establishment varies from four in
the smallest establishments to eight in the largest establish-
ments. The probability of an occupation being selected is
proportional to its employment within the establishment.
There were 11,274 second-stage sample units (sampled oc-
cupations) that reported data from the 2,144 first-stage
sample units (sampled establishments) that cooperated in
the survey.

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

Data collection

Bureau field economists made visits to sampled estab-
lishments to collect data for the survey. To reduce the re-
porting burden, respondents were asked to provide docu-
ments describing their flexible benefits plans, reimburse-
ment accounts, retirement and capital accumulation
plans, medical, dental, and vision care plans, and insur-
ance plans. BLS analyzed these plans in Washington to
garner the required data on plan provisions. Data on paid
leave generally were obtained directly from the employer
at the time of the visit.

Data were collected during the period from November
1990 to October 1991, reflecting an average reference peri-
od of April 1991. Respondents were asked for information
as of the time of the data collection visit.

Data calculation

This bulletin presents tables that show the percent of
employees who were covered by paid leave plans or unpaid
parental leave plans; participated in medical, dental, and
vision care plans; participated in insurance, retirement, or
capital accumulation plans; or were eligible for flexible
benefits plans, reimbursement accounts, or other selected
benefits. Except in tables 2, 120, 121, and 123, counts of
workers covered by benefit plans included those who had
not met possible minimum length-of-service requirements
at the time of the survey.

Most of the tables in this bulletin show the percent of
workers covered by individual benefit plans or plan provi-
sions. Percentages are calculated in three ways. One tech-
nique (followed in tables 1, 3-5, 7, 9, 13-17, 19-21, 102, 103,
and 122), shows the number of covered workers as a per-
cent of all workers within the scope of the survey. Tables 2,
120, and 123 show the number of eligible workers as a per-
cent of all workers.

A second approach is followed in tables 8, 10, 11, 18, 27,
28, 30, 31, 33-40, 57, 61-62, 65-67, 70, 71, 75, 77, 81, 82, 88,



than white-collar workers to havea 1-year service require-
ment.

The survey also examined carryover and cash-in provi-
sions for unused vacation time (table 11). Two-fifths of all
full-time workers covered were allowed to carry over at
Jeast some of their unused vacation days into the next year;
one-fifth could cash in some or all of their vacation days at
the end of the year. The remaining workers lost unused va-
cation days at year’s end. White-collar workers were more
likely to have carryover provisions than blue-collar work-
ers, who enjoyed an advantage in cash-in provisions.

The average number of vacation days varied depending
on the cash-in/carryover provisions (table 12). At all
lengths of service, the greatest number of days was pro-
vided to those employees who could both carry over and
cash in unused vacation days. These employees typically
averaged 4 or 5 more days a year than employees without
cash-in or carryover provisions.

Paid personal leave, Formal personal leave allows em-
ployees to be absent from work with pay for a variety of
reasons not covered by other specific leave plans. One-fifth
of the full-time employees had such leave (table 13). Most
commonly, employees provided personal leave were eligi-
ble for 1 to 5 days; the average was 3.3 days per year. Pro-
fessional, technical, and related workers received an aver-
age of 3.4 days; both clerical and sales and production and
service workers averaged 3.2 days. A few employees were
provided as much personal leave as needed.

Paid funeral leave, jury-duty leave, and military leave.
Four-fifths of full-time workers were eligible for paid leave
to attend funerals of family members (table 14). Almost all
eligible employees received a set number of days per occur-
rence, averaging 3.3 days.

Seventeen percent of participants had plans that varied
the number of days off by family relationship (for example,
mother, sister) to the deceased. These workers were in-
cluded in the count of workers having a set number of
days; the maximum number of days off was reported for
each plan that included this relationship provision. For
some employees who do not have a funeral leave plan, em-
ployers may provide an informal benefit or allow em-
ployees to use other types of paid leave, such as paid sick
leave days, to attend a funeral. (See chapter 3.)

Eighty-six percent of workers were eligible for paid
leave while serving as a juror (table 15). Paid time off for
jury duty was usually provided “as needed”; employer
payments commonly made up the difference between the
employee’s regular pay and the court’s jury allowance.

Military leave, providing pay for absence from work to
fulfill military training or duty commitments, was avail-
able in establishments employing 54 percent of employees
(table 16). The most common provision was 2 weeks off
per year, but 12 percent of workers were in establishments
providing paid military leave as needed. For workers with
a specified number of days off, military leave averaged
14.8 workdays per year. Pay for military leave was either
regular pay or the difference between regular pay and mili-

tary pay.

Parental leave

Unpaid maternity leave was available to 37 percent of
full-time employees; 26 percent were eligible for unpaid
paternity leave (tables 17 and 18). White-collar workers
were more likely to be covered by such plans than were
blue-collar workers. Two percent of all full-time workers
had paid maternity leave; paid paternity leave was virtual-
ly nonexistent. The survey defined parental leave plans as
separate from an employee’s other leave plans, such as sick
leave and paid vacations, which a new mother or father
might also use. Unpaid maternity and paternity leave gen-
erally could be taken after regular paid leave was used, and
could continue for a fixed period of time. Employees could
reasonably expect to return to their own or similar jobs
following leave, although the plans did not always specifi-
cally guarantee this.

For plans that provided a fixed number of days of un-
paid maternity or paternity leave, maximum benefits aver-
aged about 5 months. The average weeks varied slightly by
occupational group.

Individual plans differed considerably in the amount of
unpaid time allowed, ranging from under 4 weeks to over 2
years. Nearly all plans with both maternity and paternity
leave allowed the same length of time off for each.*

® For additional details on parental leave plans, see Joseph R. Meisen-
heimer, “Employer Provisions for Parental Leave,” Monthly Labor Re-
view, October 1989, pp. 20-24.



ment insurance reports for April 1991.
The general form of the estimator for a population total
Y is:

nf; fl; Yij
Y= ——
i=1 Pi j=l Pi
where:
n’ = number of responding sample establishments;
0; = occupation sample size selected from the i‘ es-
tablishment;

‘Yij = value for the characteristics of the. ih selected oc-
cupation in the i' selected establishment;

Py = the probability of including the j'" occupation in
the sample of occupations from the i establish-
ment;

fl; = weight adjustment factor for nonresponse for
the i'* establishment;

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

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
asample of 11,274 usable occupation quotes selected from.
the 2,144 responding establishments, rather than tabula-
tions based on data from all employees in the approxi-
mately 115,000 medium and large establishments within
the scope of the survey. Consequently, the data are subject
to sampling errors, as well as nonsampling errors.

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

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

Chart A-1 provides standard errors for use in evaluating
the estimates in the 111 tables shown in chapters 1-9 of this

132

bulletin containing percentage estimates. For example,
table 1 shows that 67 percent of all employees participated
in sick leave plans in 1991. Chart A-1 shows a standard
error of approximately 1.8 percent for this estimate. Thus,
at the 95-percent level, the confidence interval for this esti-
mate is 63.4 percent to 70.6 percent (67 plus and minus 2
times 1.8 percent).

Standard errors for tables 6, 12, 22, 23, and 59 could not
be represented graphically. They are presented as tables
A-3, A-4, A-5, A-6, and A-7. For example, the first entry
in table 22 shows an average of 12.4 days of paid annual
sick leave after 1 year of service. The standard error for
this estimate is 0.7 days.

Standard errors cannot be computed for tables 25, 74,
76, 90, 91, 110, and 111. The rates shown in most of these
tables are projections based on models of the plan provi-
sions.

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

Computer edits of the data and professional review of
both individual and summarized data reduce the nonsam-
pling errors in recording, coding, and processing the data.
However, to the extent that the characteristics of nonre-
spondents are not the same as those of respondents, non-
sampling errors are introduced in the development of esti-
mates. Because the impact of these limitations on the EBS
estimates is unknown, reliability measurements are in-
complete.

For those readers interested in further mathematical de-
tails, the next section describes how chart A-! was derived
from 1991 survey data,

Mathematical details on chart showing estimates
and generalized standard errors

Each estimate used in the production of the tables in this
bulletin has an approximately normal distribution.

Standard errors for the percentage estimates were com-
puted from a representative portion of the 1991 survey es-
timates using methodology called “balanced repeated rep-
lication.” Estimates are produced for each of 64 half-sam-
ple replicates, and the variability or standard error is cal-
culated from the 64 half-sample estimates. To simplify
their presentation, a curve was fitted to the standard error
estimates, by regression techniques (chart A-1).

The curve’s equation is:

S =e [2 + b¢ InP? + c CIn(100-P)}2 + d In(P) In(100-P)]



Table 41. Medical care benefits: Percent of full-time
participants in plans with overall limitations on benefits by
amount of deductible, medium and large private establishments,

Table 42. Medical care benefits: Percent of full-time
participants in plans with overall limitations on benefits by
coinsurance rate, medium and large private establishments,
1991

Protes-
sional, | Clerical | Produc-
All par. | techni: | and | tion and
Type and amount of deductible’ | 1° PR | cal, and| sales | service
‘pants | elated | partici- | partici-
partici- | pants | pants
pants
Total 100 100 100
Deductible specified 91 1 90 1
Deductibie on an annual basis® .. ot 90 89 91
Based on earnings‘ 5 6 6 4

Flat dollar amount
Less than $50

$50 3 2 3 3

$51-899 1 a) 1 2

$100 27 24 23 31

$101-$149 1 1 iv) 1

$160... 14 14 15 13

$151-$199 0 iy) 6 iv)

$200 . 19 2 18 19

$201-$249 1 1 re)

7 "4 6

is) is) is)

6 4 7

7 7 5

Deductible not on an annual

basis ... 6 1 iv) ie)

No deductible .... 9 9 10 9
Average annual deductible $198) $210) $203! $169

' The deductible is the amount of covered expenses that an individual
must pay before any charges are paid by the medical care plan. Deduc-
tibles that apply separately to a specific category of expense, such as a
deductible for each hospital admission, were excluded from this tabulation.

? Amount of deductible described is for each insured person. However,
many plans contain a maximum family deductible. tn some plans, the indi-
vidual and family deductibles are identical. If the deductible applied only
to dependents’ coverage, it was not tabulated.

® The basis of the deductible is the length of time within which a single
deductible requirement applies. Some plans require that expenses equal
to the deductible be incurred within a shorter period, such as 90 days.

* These plans have deductibles that vary by the amount of the partici-
pant's earnings. A typical provision is 1 percent of annual earings witha
maximum deductible of $150.

* Less than 0.5 percent.

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

50

Protes-
sional, | Clerical | Produc-
; At par. | techni. | and | ton and
Coinsurance amount ticipants |C2! and} sales | service
related | partici- | partici-
partici: | pants | pants
pants
Total .... 400 | 100 | 100 | 100
With coinsurance’ 93 93 92 93
Coinsurance rate”
80 percent .. 74 73 73 76
85 percent .. 3 3 3 4
90 percent .. 1" 12 13 9
Other percent 4 4 3 4
Varies* 1 1 1 1
Without coinsurance‘ 7 7 8 7

* Represents the initial coinsurance in plans that have 100 percent cov-
erage after the individual pays a specified dollar amount toward expenses.
For example, the plan pays 80 percent until the individual's out-of-pocket
expense reaches $1,000, and then coverage is at 100 percent

* A few plans have more than one coinsurance rate. In those cases,
the coinsurance rate shown is that which applies to the majority of bene-
fits under the plan.

* The overall coinsurance rate varies by specified dollar amount of ex-
penses. For example, 80 percent coverage up to $5,000 and 90 percent
thereafter.

“ 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 equa! to-
tals. Where applicable, dash indicates no employees in this category.



Contents—Continued

Work schedules:
3. Hours scheduled per week and per day ........ 06.0 c cece cece ect e eee e ee eee ete tee e ett e et nee ene
Paid time off:
4. Lunch time: Minutes per day ...
5. Rest time: Minutes per day ... :
6. Holidays and vacations: Average number of days ..
7. Holidays: Number of days provided each year
8. Holidays: Policy on holidays that fall on a regularly scheduled day off .
9. Vacations: Amount provided for selected periods of service . .
10. Vacations: Length of service required to take vacation .
11. Vacations: Unused vacation policy
12. Vacations: Average number of days by length of service and unused leave policy . .
13. Personal leave: Number of days provided per year.......
14. Funeral leave: Number of days available per occurrence ..
15, Jury-duty leave: Number of days available per occurrence ..
16. Military leave: Number of days available per year

Parental leave:

17.
18.

Parental leave policy
Unpaid maternity and paternity leave: Duration of benefits .

Short-term disability coverage:

19.

Participation in sickness and accident insurance plans and paid sick leave plans..........-.-.0.00005

Paid sick leave:

Type of provision... 6... fice cece eee eee eee tree nee etn eee e tenet etna n eres
Provision
Average number of days at full pay by type of plan .
Annual plans: Average number of days at full pay by sickness and accident insurance coordination
Annual plat Inused sick leave policy and carryover provisions .
Annual plans: Average number of days by accumulation policy ..
Length-of-service requirements for participation .
Uses of sick leave for other purposes

Sickness and accident insurance:

28.
29.
30.

Type and duration of payments .
Benefits based on percent-of-earnings formula by maximum weekly benefit
Length-of-service requirements for participation

Long-term disability insurance:

Method of determining payment
Benefits based on percent-of-earnings formula by maximum monthly benefit
Maximum disability income provisions by type and amount of maximum .
Benefit waiting period ..

Duration of benefits .
Length-of-service requirements for participation .
Provision for survivor benefits ..............5
Coverage for mental illness 0.0.0.0... ccc cece cece e eee ee

vii

19



Table 65. Dental care benefits: Percent of full-time participants by extent of coverage for selected procedures, medium and
large private establishments, 1991

Type of dental procedure

Extent of coverage nae 7 7
Exaring: Denna Fillings suger Inlays | Crowns [Periodontal] Endodon- prosthetics) OMesor
All participants
Total .. 100 100 100 100 100 100 400 100 100
Covered . ese 100 100 100 98 96 98 98 98 72
Scheduled cash allowance .. 12 13 18 15 7 7 16 16 i)
Incentive schedule’ .. 1 1 1 1 6) (3) 1 1
Subject to copayment 2 1 2 4 3 5 4 4 4
Percent of usual, customary,
and reasonable charge 84 85 7 76 74 74 75 75 74 68
Less than 50 ... i) iv) iv) is) is) is) oO iv) 9) 19)
50 . 1 1 5 6 45 45 9 7 55 48
51-59 - = iv) is) - - iy) i) (e) -
60 0 e) 2 2 5 6 2 2 6 2
61-74 1 1 2 2 2 2 2 2 1 1
75 1 1 5 4 3 3 5 5 2 1
80 16 19 42 43 8 9 4 42 7 3
85 i) 2 4 4 2 2 4 4 © -
90 .. 2 6 6 6 5 5 6 6 1 i)
400° 64 54 1 8 3 3 6 7 3 14
Discounted benefit’ . 1) iC) i) iv) i) ie) 0 i) i) e
‘Subject to overall pla
provisions only” 1 1 1 1 1 1 1 1 -
Not covered .. iv) i?) io) 1 4 2 1 1 2 28
Not determinable - - - 1 ®) - 1 1 iv) -
Professional, technical, and
related
Total .. 100 400 100 100 100 100 100 100 100 100
Covered 100 100 100 97 97 98 97 98 98 72
‘Scheduled cash allowance "1 "1 16 14 15 15 14 14 15 (7)
Incentive schedute‘ .. 1 1 2 2 0 i) 2 2 e -
‘Subject to copayment® 2 1 2 4 3 4 3 3a 4 3
Percent of usual, customary,
and reasonable charge a4 85 79 7 7 78 7 7 7 69
Less than 50 iy) 0 is) 0 i) ) 0) 0 ©.
50 ... a) 1 7 49 50 1 57 48
51-59 - - (a) i) - - i) ca) i) -
60 .. iV) ia) 2 3 6 6 3 3 6
61-74 1 1 2 2 1 1 2 2 1 i?)
75 1 2 6 6 4 4 6 6 2 1
80 15 18 45 44 10 10 42 44 7 5
85 (a) 2 3 3 1 1 3 3 ) -
90 1 3 3 4 2 2 3 4 ie) a)
100° 65 58 a 8 4 3 6 7 2 13
Discounted benefit’ . iv) iv) is) i) i) i) iv) ca) i) a)
Subject to overall plan
provisions onty® .. 1 1 1 1 1 1 1 1 -
Not covered .. i) ie] iv) 1 3 2 1 2 28
Not determinable - - - 2 @ - 1 1 e) -

See footnotes at end of table.

67



Table 22. Paid sick leave: Average number of days at full
pay for full-time participants by type of plan, medium and
large private estabishments, 1991

Profes-
sional, | Clerical | Produc-
Ail par- | techni. | and | tion ana
Sick leave policy ticipants |Ca}.and| sales | service
related | partici- | partici-
partici | pants | pants
pants
Paid annual sick leave days’ by
minimum length-of-service
requirement:
After 1 year 424] 159) 11.1) 10.2
After 3 years . 155) 208 14.4 11.8
After 5 years . 188| 246) 182) 138
After 10 years 229| 903| 229| 159
After 15 years 26.0) 34.0, 267; 178
After 20 years 282} 963) 204) 195
After 25 years 303| 989) 3920] 208
After 80 years? gos| 392) 3923] 210
Paid per disability sick leave days?
by minimum length-of-service
requirement:
After 1 year s3s| 650) 387) 49.1
Alter 3 years . 541] 664] 408) 476
After 5 years ees| 784) 587/ 627
Alter 10 years. sis| 932) 719| 729
After 15 years 97.3 104.7 90.2 92.4
Alter 20 years 109.7} 1133] 1052] 1088
After 25 years 121.7 121.7 119.2 125.0
After 30 years* 1225| 1223] 1202| 1256

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

? The average (mean) was virtually the same after longer years of serv-

ice.

? Employees are granted a specific number of sick leave days for each
illness or disability after completion of the described fength-of-service inter-

val.

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

22



Table 63. Medical care benefits’: Percent of full-time participants by provisions for benefits after retirement, medium and
large private establishments, 1991
Professional, technical, and | Clerical and sales partici- | Production and service
All participants related participants pants participants
Characteristic
Retiree under] Retiree 65 [Retiree under} Retiree 65 |Retiree under] Retiree 65 |Retiree under| Retiroe 65
° and over 65* and over 65° and over 65? and over
Percent of participants with
employer-financed retiree
coverage" 43 41 47 47 45 43 39 35
Benefit level’ |
Total 100 100 100 100 100 100 100 100 |
No chang rage .. 74 69 76 74 82 7 67 62
Reduced coverage 15 19 14 19 10 15 18 21 |
Increased coverage 1 1 2 2 i 1 1 2
Not determinable 10 "1 7 7 7 7 14 15
Eligibility for retiree coverage
Total - | 100 100 100 400 100 100 400 100
All retirees eligible 22 24 22 26 26 28 20 20
Eligibility subject to service
requirement 35 30 35 30 37 35 34 28 |
Must qualify for company |
pension .. 32 34 34 35 31 30 32 35 |
Other .. o) 6 ro) ic) Q a) i) ro) 1
Eligibility data not avaiable 10 12 8 8 7 8 15 17 i
Financing
Total 100 100 400 100 100 100 100 100
Retiree pays some cost ... 53 49 57 52 60 54 45 44
Retiree pays no cost 38 41 37 42 34 40 4 40
Not determinable... 9 10 6 6 6 6 14 15
* Plans providing services or payments for services rendered in the share of premiums for medical insurance under Medicare (Part B).
hospital or by a physician. Excludes plans that provided only dental, vi- “ For retirees eligible for Medicare, benefits may be caloulated and re-
sion, or prescription drug coverage. duced by the extent to which covered expenses are reimbursed by the
® ‘Provisions in this column apply to the period between retirement and Federal program.
age 65. * Less than 0.5 percent.
* Tabulations cover plans in which insurance was continued for longer
than 1 month after retirement and where the employer wholly or partly ti- NOTE: Because of rounding, sums of individual items may not equal
nanced the coverage. It excludes plans that provide only the retiree’s totals. Where applicable, dash indicates no employees in this category.

65



Table 55. Medical care benefits: Percent of full-time participants in plans with drug abuse treatment benefits by extent of

benefits, medium and large private establishments, 1997

Professional, technical, and| Clerical and sales Production and service
All participants related participants participants participants
Coverage limitation Inpatient| inpatient| Out- | Inpatient| Inpatient! Out- | Inpatient|Inpatient] Out- |inpatient| Inpatient] Out-
detoxif- | rehabili-| patient | detoxif- | rehabil-| patient | detoxif- | rehabil- | patient | detoxifi | rehabii- | patient

cation’ | tation® | care’ | cation’ | tation? | care’ | cation’ | tation? | care® | cation’ care®

Total .. 00 | 100 | 100 | 100 | 100 | 100 | 100 | +00 | 100 | 100 | 100 | 100

With coverage 7a | 77 | 10 |. 78 | 79 | 10 | 78 | 76 | 10 | 80 | 76

Covered the same as other illnesses | 30 7 6 | 3 8 6 | 2 7 7 | 2 7 6

Subject to separate limitations" 7 | 7 nm 67 | 67 | 73 7 | 71 72 | 71 74 | 70

Limit on days 52 84 | 36 | 82 53 as | s3 | 53 | 35 | sz | 55 | 35

Per year 31 3t 28} 33 | 33 | 3t 35 | 35 | 28 | 2 | 29 | 26

Per contr 18 4 1 14 13 2 13 12 te] 17 16 i

Per lifetime . 7 9 7 7 8 5 6 8 4 7 | 10 9

Limit on number of treatments) 11 14 7 9 oT 5 8} 12 5 13 16 9

Limit on dollars 29 2a | 43 | 24 | 23 | 40 33 | 33 | 4 | 2 | 2 | 43

Per day... 1 1 10 1 0 7 1 1 10 1 1 12

Per year 7 7 | 2% 6 6 | 27 8 8 | 29 8 7 | 2

Per lifetime . | 24 | 23 | 24 | 20 | 2 | 2 | 26 28 | 2 | 24 | 8 23

Per other period ‘| 2 2 2 1 1 1 2 2 2 3 3 2

Coinsurance limit nn 9 1o | 28 9 10 | 27 r) 10 | 31 9 10 | 27
Ceiling on out-of-pocket expenses|

does not apply ... | 12 13 | 24 13 | 13 | 24 16 16 | 26 40 1" 23

Separate copayment or

deductible 3 3 4 3 3 5 3 3 6 2 3 4

Other limitations iv) e 1 iv) eo iv) e 9) iv) 1 1 1

Without coverage ... ) 2 | 3 | mo} a} 6 2 | 2 | @ 20 | 24

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

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

* Includes treatment in one or more of the following: Outpatient depart-
ment of a hospital, residential treatment center, organized outpatient clinic,
day-night treatment center, or doctor's office. If benefits differed by loca-
tion of treatment, doctor's office care was tabulated.

* Separate limitations indicate that drug abuse treatment benefits are
more restrictive than benefits for other treatments. For example, if a plan

58

limits inpatient rehabilitation care to 30 days per year, but the fimit on inpa-
tient care for any other type of illness is greater than 30 days per year,
that plan contains separate jimits. The total is less than the sum of the in-
dividual items because many plans had more than one type.of limitation.

© Less than 0.5 percent.

° Coinsurance rate is lower than that applying to other medical serv-
ices. In such cases, outpatient rehabilitation care is generally at a coinsur-
ance rate of 50 percent.

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



Table 17. Parental leave: Percent of full-time employees by
parental leave policy, medium and large private establish-

Table 18. Unpaid maternity and paternity leave': Percent of
eligible full-time employees by duration of benefits, medium

ments, 1991 and large private establishments, 1991
Profes- Profes-
sional, | Clerical | Produe- Clerical | Produe-
techni- | and | tion and and tion and
Employer leave policy MN em |cal, and| sales | service Duration aver sales | service
Ploye related | empioy- | employ- Ploye employ- | employ-
employ-| ees ees employ-| ees ees
ees ees
Total 100 100 100 100 Unpaid maternity leave
Eligible for parental leave! so | 47 | 40 | 34
Total... 100 | 100 | 100
Eligible for maternity leave so | 4 | 40 | 34
Paid days only 1 2 4 io) Under 1 month 2 2 2 1
Unpaid days only ae | 42 | 36 | 33 1 month e to) 6 ®
Both unpaid and paid days . 1 1 1 1 Over 1 but under 2 months 22} 18 | 19 | 2
Information not available on 2 months .. 1 1 1 1
type of days .. 1 1 1 1 Over 2 but under 3 months 10 | 10} 44 Q
3 months .. 9 | 10 8 8
Not eligible for maternity leave ® io) ®) 8 Over 3 but ui 4 4 5 3
4 months .. 4 3 4 4
Eligible for paternity leave .. 27 | 33 | 2 | 23 Over 4 but under § months "1 7 a} 15
Paid days only 1 1] 0 0) ‘Over 5 but under 6 months 2 2 4 1
Unpaid days only 26 | 31 26 | 22 6 months... 14 | 2 | 18 10
Both unpaid and paid days...| (9) ) ) 6 Over 6 but under 12 months 5 5 4 6
Information not available o 12 months 16 | 1 | iw | 44
type of days .. 1 1 1 1 Over 12 but under 24 months oy i) i) ®
24 months ... a o) 1 - -
Not eligible for paternity leave...) 12 | 14 | 12 " Over 24 months 2 4 1 1
Not eligible for parental leave......., 61 | 53 | 60 | 66 Average MONtAS reneunnonenenen 532 | 627 | 525 | 465
* Parental leave includes plans providing maternity leave only, paternity Unpaid paternity leave
leave only, and both maternity and paternity leave.
® Less than 0.5 percent. Total 100 | 100} 100 | 100
NOTE: Because of rounding, sums of individual items may not equal praer t month a _ i) a
totals. Where applicable, dash indicates no employees in this category. yer t bul Gnder 3 month oo is 20 o
2 months 1 1 1 ®
‘Over 2 but under 3 months 12 wz} ow | it
3 months .. 8 | 12 9 8
(Over 3 but under 4 months . 4 5 3 4
4 months ‘| 3 3 4 3
Over 4 but under § months...) 10 5 7 | 16
Over § but under 6 months .. 1 (G) 2 1
‘ 6 months 13 18 13 9
Over 6 but under 12 months .... 3 2 2 4
12 months - 18) 19 | 23 | 45
Over 12 but under 24 months .. a) 1 1 fo)
24 months i) 1 - im
Over 24 months: 2 5 2 1
Average months . 568 | 696 | 5.71 | 467

days
* Less than 0.5 percent.

Includes only plans that allowed a

fixed number of unpaid leave

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



Table 31. Long-term disability insurance: Percent of full-time participants by method of determining payment, medium and

large private establishments, 1991—Continued

With maximum

Type of maximum provision

Without maximum

Method Total coverage Plan maximum | Disability income |Plan and disability! coverage
only! maximum only’ | income maximum
Clerical and sales
All methods .. 100 80 42 12 26 20
Fixed percent of earnings .. 90 73 39 40 25 16
Less than 50 percent 3 2 1 iv) 1 1
50 percent .............. 21 7 5 7 4 5
55 percent iv] iy) = iy) -
60 percent 49 41 23 2 16 8
65 or 67 percent. 13 12 8 a 4 1
70 percent .... 4 2 1 e) 1 1
More than 70 percent 1 ° iv) - - ®
Percent varies by earnings 7 5 3 - 1 3
Percent varies by service .... iv) iv) - e) iv] iv)
Percent varies during disability 2 2 - 2 is) ©
Scheduled dollar amount varies by
earnings .. 1 0) - i) - 1
Production and service
All methods 100 65 33 12 20 35
Fixed percent of earnings 7 61 32 11 39 15
Less than 50 percent . 2 1 1 ) to) “
50 percent al 16 3 9 4
55 percent i) i) i) is)
60 percent 44 34 2t 2 12 9
65 or 67 percent ... 7 7 5 () 1 QO
70 percent ..... 2 2 1 - 1 0)
More than 70 percent © i) Q - - a)
Other percent . 0) ) i) - - -
Percent varies by earnings 4 2 1 ) 1 2
Percent varies by service ia) io) - - 19) iv)
Percent varies during disability 1 1 iv) 1 a) 7)
‘Scheduled dollar amount varies by
eamings .......... 7 e) - a - 16
Other 2 - - - - 2

* Includes flat dollar maximums and dollar maximums that vary by

years of service.

* Includes ceilings on income during disability that limit the total
amount payable from the long-term disability insurance plus other in-

come, such as dependent Social Security.

32

* Less than 0.5 percent.
* Includes flat dollar amounts and scheduled percent of earnings
varying by iength of disability,

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



Table 45. Medical care benefits: Percent of full-time
Participants in plans with overall limitations on benefits by
maximum benefit provisions, medium and large private
establishments, 1991

Table 46. Medical care benefits: Percent of full-time
Participants in plans with hospital room and board coverage
by type of benefit payments, medium and large private
establishments, 1991

Protes-
sional, | Clerical | Produe-
“ techni- and = | tion and
Type and dollar amount of | Al patg| oat and) sales | service
‘Pan's related | partici- | partici
partici- | pants pants:
Pants
Total ... 100 | 100 | 100
With maximum limits 76 74 70 79
Lifetime maximum only .. 72 71 68 74
Less than $25,000 io) 0) ie) is)
$25,000 .. QO = : 10)
$25,001-$49,999 19) 1) 6 i)
$50,000 .. 1 is) a 1
$50,001-$99,999 .. io) Q - @
$100,000 2 O 3
$100,001-$249,999 .. 1 i) () 1
$250,000 7 6 8
$250,001-$499,999 2 1 2 3
$500,000 a 1 7 14
$500,001-$999,999 2 2 3 2
$1,000,000 ... 43 46 44 40
More than $1,000,000 2 2 3 2
Annual or disability maximum
only 2 2 1 4
Both lifetime and annual or
disability maximums 1 1 1 1
Other maximum’ .. (eo) - i) 0
Without maximum limits* ... 24 26 30 at

* Maximum described is for each insured person. Where the maximum
differed for employees and dependents, the employee maximum was tabu-
lated.

® Less than 0.5 percent.

* Maximum applied to a specitied length of time in excess of 1 year.

* Participants in these plans were subject to other limitations such as
deductibles and coinsurance.

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

52

Profes-
sional, | Clerical | Produc-
All par-| techni: | and | tion and
Type of payment ‘iciparte| al and] sales | service
iP related | partici- | partici-
partici- | pants | pants
pants
Total... 100 | 100 | 100 | 100
Full semiprivate rate" 23 28 24 20
Full semiprivate rate for unlimited
days but subject to a separate
deductible or separate dollar
maximum 3 3 5 3
Full semiprivate rate for limited days| 2 2 1 3
Full semiprivate rate for limited
period, then percent of semiprivate|
rate at 19 7 24
80 percent 19 18 16 22
90 percent 1 1 1 2
Other .. 4 1 is) u
Varies ie) - io) fe)
Percent of semiprivate rate 46 44 50 46
80 percent 34 30 36 35
85 percent 2 1 1 2
90 percent 7 8 10 5
Other . 3 4 2 3
Varies @ ) ie) 0
Percent of semiprivate rate for
fimited period, then subject to
another percentage 2 3 1 1
Daily dollar allowance (a) - - 0)
Daily dollar allowance, plus percent
Of the full semiptivate rate voce] 2 1 1 3

' Includes plans in which expenses were reimbursed for the full semi-
private room rate for an unlimited number of days without either a sepa-
rate deductible or separate dollar maximum.

* Less than 0.5 percent.

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



combination of both methods (24 percent). Disability in-
come ceilings affect benefits only if the amount payable
from the LTD plan plus income from other outside
sources, such as family Social Security payments, exceed a
specified percentage (most commonly 70 or 75 percent) of
predisability earnings.

Plans imposed service requirements upon three-fifths of
the LTD participants before coverage began. More than
two-fifths had service requirements of | to 6 months, and
slightly more than 1 in 10 had service requirements of 1
year. Rarely did plans require an employee to have
reached a certain age to be eligible for LTD benefits.

Survivor benefits, payable to an eligible dependent upon

18

the death of a disabled employee, were available in plans
covering 22 percent of the LTD participants. These bene-
fits usually took the form of a lump-sum. payment (most
often equal to 3 times the monthly LTD benefit) or a per-
cent of the monthly LTD benefit paid for a fixed number of
months (generally not more than 6 months).

Plans that included coverage for disabilities due to men-
tal illness covered 85 percent of long-term disability plan
participants. However, half of these participants had lim-
its placed upon such coverage. In most of these cases,
benefits were provided for a specified period (usually 24
months) and then ceased unless the participant was insti-
tutionalized at the end of the limiting period.



The analysis of medical, dental, and vision care; life in-
surance; sickness and accident insurance; long-term dis-
ability insurance; retirement; and capital accumulation
plans is extremely detailed. The following list of medical,
dental, and vision care plan provisions included in the
1991 data base indicates the extent of the information
available on the magnetic tapes. Coverage of other benefits
is similarly detailed.

Medical, dental, and vision care data base
Plan participation requirements

Employee monthly contribution for employee and
family benefits
Pretax status of contributions

Type of plan and funding arrangement
Medical benefits
Dental benefits
Vision benefits

Effect of retirement
Retired employees benefit coverage, eligibility, and
type of financing

Hospital coverage
Hospital room and board coverage
Hospital miscellaneous charges

Alternatives to hospitalization
Extended care facility coverage
Home health care coverage
Hospice coverage

Surgical coverage
In-hospital surgical coverage
Second surgical opinion
Outpatient surgical coverage

Physician charges
In-hospital coverage
Office visit coverage

Maternity care benefits
Who is covered

Diagnostic x-ray and laboratory testing coverage

Mental health care benefits
In-hospital room and board charges
Outpatient mental health care

Substance abuse benefits
In-hospital detoxification care
In-hospital rehabilitative care
Outpatient care

139

(There are separate questions for alcohol abuse and

drug abuse.)

Other benefits
Hearing care
Premium incentives
Physical examinations
Organ transplants
Well-baby care
Immunization and inoculation
Mammography
Preventive dental care only (examinations and/or

Xx rays)
Vision examinations only

Cost containment features
No or limited reimbursement for nonemergency
weekend admission to hospital
Preadmission testing
Preadmission certification required
Birthing centers
Hospital audit program
Utilization review

Dental care benefits
Who is covered
Prophylaxis and routine exams
X rays
Fillings
Surgery—dental
Periodontal care
Endodontics
Tnlays
Crowns
Prosthetics
Orthodontia
Preauthorization requirement

Vision care benefits
Who is covered
Eyeglasses
Eye examinations
Contact lenses

Prescription drug benefits
Brand name drugs
Generic drugs

Overall limitations
Out-of-pocket expense limitation
Overall deductible
Overall maximum
Overall coinsurance

|
|
|
|
|



provision (table 96). Most of these participants were cov-
ered by either a multiemployer plan established by a union
or a single employer plan offered by an establishment that
had a portability agreement with related establishments,
such as in the utilities industry. In these plans, if a vested
employee moved to another employer, benefits from the
prior employer—usually in the form of years of credited
service—were transferred over to the new employer. The
remaining participants covered under a portability provi-
sion had an option to cash out vested pension benefits val-
ued at greater than $3,500.

Postretirement survivor benefits

ERISA also requires defined benefit pension plans to
make benefits available in a way such that a spouse re-
ceives at least 50 percent of the retiree’s payments after the
Tetiree’s death (table 99). When this type of pension—
called a joint-and-survivor annuity—is paid, the employee
will generally receive a lower benefit during retirement to
account for the likely increase in the length of time the
plan will have to make payments. When the retiree dies, a
pension benefit will be payable for the life of the surviving
spouse. All defined benefit pension plan participants had
joint-and-survivor annuity options available to them in
1991.2

Joint-and-survivor annuities are based on an actuarial
or arithmetic reduction of the employee’s pension. Just
over one-fourth of the participants had plans that offered
only one joint-and-survivor option that pays a surviving
spouse 50 percent of the retiree’s adjusted pension. Nearly
two-thirds of participants had a choice of two alternative
percentages or more (frequently 50, 67, and 100 percent)
to be continued to the spouse, with corresponding reduc-
tions in the employees’ annuities.

Unlike joint-and-survivor annuities, survivor annuities
based on the retiree’s accrued benefit do not reduce the
employee’s pension to adjust for survivor benefits. Such
plans cover 2 percent of participants.

Although defined benefit pension plans typically pay
benefits as annuities covering the lives of the retiree and
spouse, some plans offer the option of a lump-sum pay-
ment. This lump sum provides the employee with the actu-
arial equivalent of the annuity. Lump-sum payments at re-
tirement, studied for the first time in the 1991 survey, were
available to 14 percent of pension participants (table 96).
In most plans, only a full lump-sum option was available.
If a participant elects a full lump-sum distribution, he or
she receives no further benefits from the pension plan. Ifa
partial distribution is made, the participant generally re-
ceives a reduced annuity for the remainder of her or his
life.

® Survivor benefits are discussed in more detail in Donald Bell and
Avy Graham, “Surviving Spouse's Benefits in Private Pension Plans,”
Monthly Labor Review, April 1984, pp. 23-31

85

Preretirement survivor benefits

Virtually all defined benefit pension plan participants
also had survivor benefits available in case the employee
died before retirement (table 100). Participants usually
had to be vested before plans would make such benefits
available. For 88 percent of the participants, a surviving
spouse would receive an annuity equivalent to the amount
payable if the employee had retired on the day prior to
death with a joint-and-survivor form of payment in effect.
Most survivor pensions like these were based on an early
retirement benefit and, aside from the joint-and-survivor
reduction, were provided at no cost to the employee. For 8
percent of participants, however, preretirement joint-and-
survivor protection involved an extra cost to the employee
and was available only if elected. The employee normally
paid this cost through a smal] deduction in the pension,
ultimately payable to either the employee or the surviving
spouse.

Nearly all the remaining participants had a preretire-
ment survivor annuity calculated as a portion of their ac-
crued benefit (the benefit earned as of the date they died,
without a joint-and-survivor reduction). If an active em-
ployee dies after completion of the vesting requirement, a
typical survivor would receive an annuity equal to 50 per-
cent of the employee’s accrued benefit to date. Payments
may be reduced by the early retirement adjustment, and
begin when the employee would have reached early retire-
ment age. If the employee lives to become eligible for early
retirement, the survivor benefit in many cases switches to
the equivalent of a 50-percent joint-and-survivor benefit
calculated as if the employee had retired on the day of
death. (When provisions changed based on age of the em-
ployee, the earliest available preretirement survivor annu-
ity was tabulated.)

Employee contributions

The employer paid the full cost of defined benefit pen-
sion plans for 95 percent of participants. For employees
who had to pay part of.the cost, contributions were most
commonly expressed as a percent of earnings. Participants
in contributory plans often paid one rate (usually 2.5 to 4
percent) on earnings above a specified level, and a lower
rate (or frequently zero) below that earnings level. The an-
nual earnings level at which this break occurred was either
a flat amount stated by the plan, or the Social Security tax-
able wage base ($53,400 in 1991). Plans with varying em-
ployee contributions usually coordinated private benefits
with Social Security payments, and as discussed earlier,
pension benefit computation rates used in these plans are
often higher on earnings above the Social Security taxable
wage base. Most of the other participants in contributory
plans paid a flat percent of all earnings, ranging from 1 to 5
percent.



persons in the family required to satisfy an annual deduct-
ible before payments began. Most commonly, family de-
ductibles were equal to two or three times the individual
deductibles.

Once the deductible has been met, a plan almost always
pays a specified percentage of covered medical expenses,
with the employee paying the remainder (coinsurance).
Plans paying 80 percent of expenses were most prevalent
(covering 74 percent of workers with overall limitations);
plans paying 90 percent accounted for 11 percent of such
workers. One out of 10 participants were in plans for
which the coinsurance rate was different for hospital room
and board expenses than for other expenses. In such cases,
the plan usually paid a higher percent of hospital expenses,
often 100 percent. .

Participants in plans paying 90 or 100 percent of cov-
ered charges include many workers covered under a PPO.
In such plans, if the employee uses the PPO provider, the
plan will pay for 90 percent of covered charges; if, howev-
er, the employee chooses another provider, the plan would
pay a reduced amount, such as 80 percent. In addition, en-
rollees in PPO’s using designated providers may not be re-
quired to pay a yearly deductible, but those who go outside
of the PPO network would be subject to a deductible.

Eighty-five percent of full-time participants in plans
with overall limitations had their coinsurance increase to
100 percent after they paid out a specified dollar amount
for covered expenses (maximum out-of-pocket expense).
Slightly more than one-half of participants in plans with
overall limits had an annual individual out-of-pocket ex-
pense maximum of $1000 or Jess. Maximum out-of-pocket
ceilings were also specified for family expenses in plans
covering just under half of participants with overall limita-
tions. The annual maximum for out-of-pocket expenses
for plan participants averaged $1,170 for an individual and
$2,326 for a family.

Plans that both required an annual deductible and
placed a maximum on out-of-pocket expenses covered
three-fourths of the participants subject to overall limita-
tions. The sum of these two items equals the total that the
plan requires an individual to pay for covered medical ex-
penses in a calendar year. In 1991, the annual deductible
plus the annual out-of-pocket expense maximum averaged.
$1,388 per individual.”

Plans with overall limitations often place a ceiling on the
amount payable by the plan, usually a lifetime maximum.
In 1991, seven-tenths of the participants in plans with
overall limitations had a lifetime maximum: apply to their
benefits. A maximum of $1 million applied to the majority
of these participants. A small proportion of participants

This average is slightly different from the sum of the individual aver-
ages because some participants have only an annual deductible or only an
annual maximum out-of-pocket expense limitation. The combined aver-
age includes only those participants with both provisions. ;

39

were in plans with a lifetime maximum of greater than $1
million; the average of all maximums was $814,160, Occu-
pational groups varied significantly in the amount of their
average lifetime maximums. Clerical and sales partici-
pants had the highest average lifetime maximum
($872,254), and production and service workers had the
lowest average maximum ($758,009). Plans that did not
impose a maximum on plan payments covered one-fourth
of the participants subject to overall limitations.

Hospital coverage

All medical plan enrollees covered by the survey had
benefit provisions for hospital room and board charges
(table 46). Nearly one-half of full-time participants were in
plans that covered hospital room and board expenses at a
percentage of the semiprivate room rate, frequently 8C per-
cent. In these types of plans, the individual was typically
subject to a yearly deductible before the percentage rate
would go into effect. One-fifth of participants had hospital
room and board expenses covered at the full semiprivate
room rate for a limited period, followed by a percentage of
the semiprivate room rate, almost always 80 percent.

Twenty-three percent of participants with hospital room
and board coverage were in plans that reimbursed ex-
penses at the full semiprivate room rate for an unlimited
number of days without being subject to either a separate
deductible or separate dollar maximum. HMO’s common-
ly provided such full service hospital benefits.

Significant differences in hospital room and board cov-
erage were evident by type of medical care provider. Al-
though just over three-fourths of HMO participants had
hospital room and board covered in full without any limi-
tations, full coverage was virtually nonexistent for hospi-
talization in non-HMO’s. When there was a limit on room
and board in HMO’s, it was almost always a copayment
per admission, usually between $50 and $200. (See chart
1)

Variations in coverage by type of medical care provider
for hospital stays, as well as other categories of care, can
affect the enrollees’ out-of-pocket expenses. Non-HMO
plan participants generally paid a higher percentage of to-
tal health care expenses than HMO participants.'*

Alternatives to hospitalization

To help hold down the costs of medical care, a number
of plans provide coverage for less expensive alternatives to
a hospital stay. These alternatives include extended care
facilities, home health care, and hospices (table 39). Cover-
age patterns typically differed between HMO and non-
HMO participants. (See chart 2.)

Coverage for stays in an extended care facility was avail-
able to four-fifths of full-time participants. Extended care

\“ For more information on out-of-pocket expenses for medical ser-
vices, see Allan P. Blostin, Robert B. Grant, and William J. Wiatrowski,
“Employee Payments for Health Care Services,” Monthly Labor Review,
November 1992, pp. 17-32.



ly by earnings. Flat percent rates per year of service—
available to approximately two-fifths of participants in
plans with career-earnings formulas—averaged 1.58 per-
cent.

Judging whether terminal- or career-earnings formulas
provide the more generous pension payment proves diffi-
cult because different variables go into computing bene-
fits. For example, calculated average earnings will general-
ly be lower under career-earnings formulas,* but these
benefits are less likely to be offset by a retiree’s Social Secu-
rity payments. (See next section.) In addition, terminal-
earnings formulas imposed a limit on the years of service
to be included in calculating benefits much more often
than career-earnings formulas. (See maximum benefits,
below.)

The earnings used to compute pension benefits with
both terminal- and career-earnings formulas are very simi-
Jar. Just over half the participants were in plans that in-
cluded only “basic” earnings, that is, straight-time earn-
ings. The rest had additional earnings included in the
benefit calculation, such as overtime pay and bonuses.

Most plans that did not use a percent-of-earnings benefit
formula specified a dollar amount to be paid for each year
of service; for example, a plan might pay $20 monthly for
each of an employee’s 30 years of service, thus yielding a
pension of $600 a month. Doilar-amount formulas applied
to nearly one-fourth of pension plan participants. Al-
though the dollar amount in these formulas sometimes
varied with an employee’s earnings or service, the predom-
inant method was to multiply a uniform (single) dollar
amount by years of service. Uniform amounts credited per
year of service averaged about $23.50 a month, an increase
of $3.50 per year over the 1989 average.

The basis of pension payments differed sharply by em-
ployee group. A large majority of white-collar participants
were provided earnings-based pensions, and dollar-
amount formulas applied to approximately two-fifths of
the blue-collar participants.

Two additional types of defined benefit pension formu-
las accounted for the remaining participants. Percent-of-
contribution formulas specify a periodic contribution by
an employer, and occasionally by an employee, to a plan.
Benefits are a percent of total contributions, for example, 1
percent of total contributions per month; if career contri-
butions totaled $40,000, then monthly pension benefits
would equal $400. Plans with career contribution formu-
las covered 4 percent of pension plan participants, up from
1 percent in 1989. The increase in career contribution plan

34 An employee who worked 30 years with a 5-percent pay increase
each year and who earned $25,000 in the last year of service would have
career average earnings of $13,451 a year; the final 5-year average would
be $22,730. The difference between the career and final averages lessens
with shorter lengths of service.

80

participation resulted in part because the survey included
traveling operating employees, such as over-the-road
truckdrivers, for the first time.

Cash account pension plans, which covered 3 percent of
pension participants, specify an employer contribution
and a rate of interest on that contribution. Benefits are
computed as a percent of each employee’s account bal-
ance. Although both percent-of-contribution and cash ac-
count pension formulas resemble the formulas in defined
contribution plans, the Internal Revenue Service classifies
percent-of-contribution and cash account plans as defined
benefit plans because the employer guarantees a certain
level of benefits. .

Twenty-four percent of all pension plan participants
were eligible to receive benefits from either primary or al-
ternative formulas, whichever yielded a greater benefit.
Alternative formulas were often included to provide at
least a minimum level of benefits for persons with short
service or low earnings. For example, a plan may have the
two following formulas: a primary formula of 1.25 percent
of average career earnings times years of service and an al-
ternative formula of $15 a month (or $180 a year) for each
year of service. In this case, the alternative formula would
provide a higher benefit for persons with average career
earnings of less than $14,400 a year.

Private benefits and Social Security payments

Regardless of whether they provide private retirement
plans, all employers (except certain exempted ones) share
the cost of Social Security coverage equally with their em-
ployees. Because many plan sponsors feel that private pen-
sion and Social Security benefits should not be duplicative,
formulas for calculating private pensions often contain
either an offset provision, under which part of the Social
Security benefit is subtracted from the annuity, or a provi-
sion to calculate the pension at a lower rate for earnings
below the Social Security taxable wage base ($53,400 in
1991) than for earnings above the base (table 88).

Social Security offsets are usually applied immediately
upon retirement, whether or not the retiree is eligible for
Social Security benefits. (Only 7 percent of participants
were in plans that delayed imposition of the Social Securi-
ty offset until Social Security payments began.) The offset
normally relates to some small percentage of the Social Se-
curity payment, for example, 1 percent times years of ser-
vice. Frequently the maximum offset is limited to 50 per-
cent of the Social Security payment.

Plans that apply lower pension benefit rates to an em-
ployee’s earnings below a specified level and higher rates
above that level are known as “step-rate excess” plans. For
example, a plan may provide a benefit equal to 1 percent of
earnings up through-the Social Security taxable wage base
and 1.5 percent of earnings above the base for each year of
service.



Table 54. Medical care benefits: Percent of full-time participants
benefits, medium and large private establishments, 1991

in plans with alcohol abuse treatment benefits by extent of

sei Professional, technical, and! Clerical and sales Production and service
All participants related participants participants Participants
‘Coverage limitation Inpatient| npatient| Out- |Inpatient|inpatient| Out- | Inpatient Inpatient! Out- | Inpatient] Inpatient] Out-
detoxifi-| rehabil- | patient | detoxifi-| rehabil- | patient | detoxif-| rehabili-| patient | detoxiti- | rehabifi-| patient

cation’ | tation? | care* | cation’ | tation’ | care* | cation’ | tation? | care® | cation’ | tation? | care*

Total 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 } 100

With coverage .. too | 73 | 79 | 100 | 76 | #0 | 100 | 79 | 79 | 100 | #1 | 78

Covered the same as other ilinesses | 31 8 7 | 33 9 ef} a 9 a | 29 8 8

Subject to separate limitations‘ ......| 69 | 70 | 72 | 67 | 67 | 74 | o | 68 | 71 | 70 | 73 | 74

Limit on days se | sa | a7 | 51 | 53 | 38 | 52 | se | a5 | 82 | 55 | 37

Per year ai | 32} 390 | 33 | 33 | 32 | 33 | a3 | 28 | 28 | 30 | 20

Per confinement is | 14 1 14 | 13 2) 14 | 43 1 ie | 45 1

Per lifetime 7 | 10 7 7 | 10 7 6 8 4 8 | i | 1

Limit on number of treatments) 41 | 14 7 | 40 } 41 5 8] 12 5 | 3 | 16 8

Limit on dollars 2s | a | a1 | 23 | 22 | 30 | 32 | a2 | 42] 28 | 27 | 42

Per day 1 1 | 10 1 | 8 7 + 1 9 i 1 | 2

Per year . 7 7 | 26 6 6 | 26 8 8 | 27 7 7 | 24

Per lifetime 2 | 22 | 2 | 2 | 1 | 23 | 27 | 27 | 26 | 23 | 22 | 23

Per other period .. 2 2 2 a 1 1 2 2 2 3 3 2

Coinsurance limit’ ... 9 10 27 9 10 26 8 9 29 9 10 26
Ceiling on out-of-pocket expenses’

does not apply .. | 13 | 23 | 13 | 12 | 23 | 1 | 1 | 25 9} i | 22

‘Separate copayment or

deductible 2 3 4 3 3 5 3 3 5 2 3 3

Other limitations .... 1 1 1 1 1 1 1 1 1 1 1 1

Without coverage i) a|lal 2 | 2 | © ala) 6 1 | 22

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

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

* Includes treatment in one or more of the following: Outpatient depart-
ment of @ hospital, residential treatment center, organized outpatient clinic,
day-night treatment center, or doctor's office. If benefits differed by loca-
tion of treatment, doctor's office care was tabulated.

* Separate limitations indicate that alcohol abuse treatment benefits are
more restrictive than benefits for other treatments. For example, if a plan

57

limits inpatient rehabilitation care to 30 days per year, but the limit on inpa-
tient care for any other type of illness is greater than 30 days per year,
that plan contains separate limits. The total is less than the sum of the in-
dividual items because many plans had more than one type of limitation.

* Less than 0.5 percent.

® Coinsurance rate is lower than that applying to other medical serv-
ices. In such cases, outpatient rehabilitation care is generally at a coinsur-
ance rate of 50 percent.

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



Benefit formulas were coordinated with Social Security
for 54 percent of all pension plan participants. In 1989 and
earlier surveys, the offset approach to coordinating private
pension plans and Social Security was more prevalent than
the excess approach, especially among terminal-earnings-
based plans. In 1991, excess plans were the most frequent-
ly observed method of coordinating benefits for all ear-
nings-based plans. This change resulted from the Tax Re-
form Act of 1986, which imposed new rules for pension
plans that coordinate with Social Security benefits.*

Maximum benefit provisions

The Employee Retirement Income Security Act of 1974
(ERISA) and subsequent amendments placed ceilings on
the size of annual pensions from defined benefit plans.
These restrictions largely affect only highly compensated
employees. Many plans, however, have provisions that re-
strict benefit levels for all participants. For example, 39
percent of participants were in plans that limited the num-
ber of years of service included in benefit computations;
maximums of 30, 35, or 40 years were most common. For
4 percent of the participants, annual pensions (usually in-
cluding Social Security payments) could not exceed either
a specified percent of average annual terminal earnings, or
a specified dollar amount (table 89).

Just 1 percent of participants were in defined benefit
pension plans that were offset by payments from a defined
contribution plan. These defined benefit plans were in-
tended to provide a “floor” of protection below which re-
tirement benefits could not fall.

Replacement rates

A commonly used indicator of a pension benefit mea-
sures the percentage of a retiree’s final year’s earnings that
is “replaced” by a pension payment. To calculate replace-
ment rates for 1991 defined benefit pension plans in me-
dium and large private establishments, the private benefit
under each surveyed plan, reduced for early retirement
when applicable, was determined for employees retiring at
age 55 and age 65. These benefit levels were then expressed
as percents of earnings in the last year of employment. For
example, employees retiring at age 65 earning $45,000 in
their final year of service had about one-half of earnings
($45,000 x 0.507 = $22,815) replaced by their pension and
primary Social Security benefits after 25 years of plan par-
ticipation (table 90). The calculations assume employees
retired on January 1, 1991, and final earnings are for
1990.36

35 For a comprehensive analysis of formulas with Social Security inte-
gration characteristics, see Donald Bell and Diane Hill, “How Social Se-
curity Payments Affect Private Pensions,” Monthly Labor Review, May
1984, pp. 15-20. .

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

81

For employees retiring at age 65, table 90 presents aver-
age replacement rates resulting from defined benefit pen-
sion plans alone and in combination with primary Social
Security benefits (primary means excluding benefits for
spouse and other dependents).*’ For private pension for-
mulas that are integrated with Social Security and for
computation of Social Security benefits, the worker is as-
sumed to have retired after having paid into Social Securi-
ty for the same number of years as years of participation
used for pension calculations. Average replacement rates
for employees retiring at age 55, however, reflect only the
pension payments, because Social Security does not pay
benefits at age 55 (table 91).

Chart 3 displays average pension replacement rates
based on 30 years of service for three earnings scenarios at
retirement ages of 55 and 65. In the higher earnings sce-
narios ($35,000 and $55,000), the private pension plan re-
placed, on average, about 30 percent of the final year’s
earnings for retirement at age 65 and 20 percent at age 55.
The rate for $15,000 was about 39 percent for retirement at
age 65 and 27 percent at age 55. Overall, average replace-
ment rates can vary widely—from under 10 percent for
some retirees aged 55 to nearly 50 percent for some retirees
aged 65.

When combined with primary Social Security payments
available at age 65, replacement rates differed substantial-
ly as earnings increased. Workers earning $15,000 in their
final year of service had nearly seven-eighths of earnings
($15,000 x 0.850 = $12,750) replaced after 30 years of ser-
vice, and just over one-half of earnings were replaced for
workers at the $55,000 earnings level ($55,000 x 0.508 =
$27,940). The primary Social Security benefit payment
was larger than the average private pension at lower earn-
ings levels, but the pension benefit became the greater
component as earnings increased.

Although private pension replacement rates (excluding
Social Security) for white-collar employees remained fair-
ly constant at higher earnings levels, rates for blue-collar
workers dropped by about two-fifths. Table 82 provides an
explanation: Approximately two-fifths of all production
and service workers have dollar-amount formulas, paying
workers with the same years of service the same benefit,
regardless of earnings history. This results in a steady de-
crease in the replacement rates as final earnings increase.
Average replacement rates for earnings-based formulas,
on the other hand, increase slightly with higher final earn-
ings.

The replacement rates just discussed apply to employees
who do not provide benefits for a surviving spouse. These
benefits for individual employees are called a “straight-life
annuity.” Benefit rates differ, however, when the employee
elects coverage for his or her spouse (“joint-and-survivor

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



Table 112. Savings and thrift plans: Percent of full-time participants by provisions for investment of employer and employee
contributions, medium and large private establishments, 1991

; Professional, technical, and| Clerical and sales partici- | Production and service
All participants related participants pants participants
Characteristic
Employer | Employee | Employer | Employee | Employer | Employee | Employer | Employee
contributions | contributions | contributions | contributions | contributions | contributions | contributions | contributions |
Total in plans permitting investment
choices by employees’ | 62 a 68 95 61 93 87 86 |
|
Investment choice |
Total . 100 100 400 100 100 100 100 400 |
'
Company stock .. 36 50 34 a7 34 52 42 50
‘Common stock fund 90 87 89 87 92 88 90 87
Long-term interest bearing 46 ag 44 44 52 47 42 40
Diversified mix of siocks and bonds 27 26 26 26 29 27 25 24
Government securities 34 33 38 40 37 33 26 26
Guaranteed investment contracts 70 71 70 n 70 69 a 7
Money market funds 43 38 46 40 49 43 34 31
2 2 2 2 3 2 1 1
6 4 7 5 5 4 7 5
Investment choices not
determinable ... 5 4 5 4 5 4 5 3
Number of choices
100 100 100 100 100 100 100 100
16 15 14 13 12 12 21 20
33 32 34 32 31 31 34 34
25 29 21 26 30 34 24 28
Five or more |) be 20 25 25 22 19 18 5
Investment choices not
determinable se 5 4 8 4 5 4 5 3
"Excludes plans that limit investment options to participants age 55 or NOTE: Because of rounding, sums of individual items may not equal i
greater. totals. Where applicable, dash indicates no employees in this category.

? Includes purchases of life insurance or annuities, real estate,
mortgages, and deposits in credit union or savings accounts.

116


Table 116. Savings and thrift and deferred profit sharing plans: Percent of full-time participants by age and length-of-serv-
ice requirements for participation, medium and large private establishments, 1991

Professional, technical, and

Clerical and sates partici-

Production and service

All participants related participants pants participants
‘Age and service requirement
provision" Savings and | P8f*r°4 | savings and |, D884 | savings and | Deferred | savings and | Deferred
profit sharing 9 profit sharing na profit sharing io profit-sharing
thrift plans plane thrift plans plans thrift plans plane thrift plans plans
Total 100 100 100 100 100 100 100 100
With minimum age and/or service
requirement en 82 95 at 98 83 94 81 95
Service requirement only .. 87 53 58 50 50 40 61 60
3 months or less 5 5 5 5 3 7 7 5
4-5 months i) - 9) - 6. - (a) -
6 months .. 8 1 10 1 6 1 7 1
1 year . 39 44 39 37 37 3t 42 52
2 years 3 2 2 5 3 1 4 2
3 years 1 1 2 38 1 1 e) -
Over 3 years 0 - ® - (a) - 6 -
Age 20 or less . 4 8 3 10 5 8 5 6
~ No service requirement .... 1 2 o) 6 1 3 1 i)
41-11 months .. 1 1 1 2 1 ie) 2 1
WYCAL sve 2 5 1 3 2 5 3 5
Age 21 . . / a1 35 20 38 29 46 44 29
No service requirement .....| 1 (0) 2 a) 1 1 (a) i)
1-6 months i 2 1 1 1 2 1 2
7-11 months .. 9) - 9) = is) = (9) =
1 year . 18 30 17 27 26 42 12 26
Over 1 year ) 2 (a) 9 a) 1 i) -
Without minimum age and/or
service requirement nn 18 5 19 2 16 6 18 5
‘Age and service requirement not
determinable .. 1 - i) - a) - 1 -

+ If a plan had alternate participation requirements, one of which was

service only, the service only requirement was tabulated.

® Less than 0. percent.

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

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

119



Table 28. Sickness and accident insurance: Percent of full-time participants by type and duration of payments, medium and
large private establishments, 1991

Maximum weeks of coverage
Type of payment Total
bess than) 43 14:25 26 27-51 62 Over 52 | Varies by
3 service
All participants
All types .. 100 2 1" 4 66 2 10 2 3
Fixed percent of earnings ....... 59 2 4 3 44 1 4 1 1
Fixed percent of earnings
Less than 50 0 - (0) - 1) - ~ ~ -
26 10) 1 1 22 () rv) 10) 1
15 1 1 1 8 () 2 0 iv)
0) - - - i) - ~ ~ -
10 a 4 r9) 8 0) 0) () 0
2 ~ 19) iv) 1 - Cy () -
3 i) v) Q 1 19) 1 0) -
1 - ~ ie) ca) () co) ~ -
2 () rv) - 2 0 - Oo -
3 - Q Y 1 () 0) 1 0)
2 - QO 19) ~ ~ 1 QO
. - 0) - - Oo “ - ie)
By both service and length of
disability QO - Y Q © - Y -
By eamings .. (0) - - - 0) ) - - 0
Fixed weekly dollar benefi 29 - 7 1 18 o) 2 °) 1
Less than $60 2 - 1 ) 1 - - - fay
$60-$79 2 - 1 1 0 - 0) ) -
$80-$99 2 - 1 19) 1 - 1) in -
$100-$119 4 - 1 ~ 2 - - 0) -
$120-$139 4 - 2 () 2 () - - -
$140-$159 .... 3 - 10) i) 2 ) ~ - iv)
$160-$179 3 - iu) 0) 3 - () - =
$180-$199 .... 1 ~ - (0) 1 - 0) - ra)
'$200-$219 3 - - - 3 () i) - -
$220 or more 5 - 0 ) 2 () 1 - 1
Weekly dollar benefit varies a - 0) - 3 0) 4 (0) iV)
By earnings .. 7 - - - 2 iv) - 0)
By service or tength of disability .| 1 - Y - 0) oO iV) -
Other io) - - co) «) - 2) - -
Data not available 0 - - } -! - - - -
Professional, technical, and
related
AIL tYPeS cceccssccssseseeeteneeneeee| 100 4 6 4 74 2 8 1 1
Fixed percent of earnings .... 89 4 5 4 66 1 7 1 1
Fixed percent of earnings
Less than 50 1 - 0) - 1 - - - -
43 cu 2 1 39 0) - 0) ()
23 4 1 2 13 1 3 () oO
10 0 1 0 9 : 0 0 :
3 - ) Q) 2 - 1 0 -
5 0) - 0 1 1 3 - -
2 - - i) 0 - 1 - -
3 - 0) - 2 - - - -

See footnotes at end of table,

26



cent. Such benefits are separate from vacations, sick leave,
and other time-off provisions that also may be available to
new parents. The average length of unpaid parental leave
was just over 5 months. Paid parental leave was rare.

Disability benefits

Employees may be protected from loss of income during
short-term illnesses or injuries by sick leave, sickness and
accident insurance, or both. For longer term or permanent
disabilities, employees may have long-term disability in-
surance to replace their incomes. Such disability benefits
were widely available to full-time employees:

Two-thirds were offered paid sick leave; these plans
provided, on average, almost 19 days per year at 5
years of service.

e 45 percent had sickness and accident insurance;
these plans typically provided benefits for 26 weeks
at 50, 60, or 67 percent of regular pay.

e 40 percent had long-term disability insurance avail-
able to them; more than twice as many white-collar
as blue-collar workers received this protection.

Long-term disability insurance typically replaced 60
percent of regular pay, providing payments after 3 or 6
months of disability until recovery, retirement, or death.

Medical, dental, and vision care and life
insurance

Medical care was among the most widespread benefits
provided to full-time employees in medium and large pri-
vate establishments—four-fifths of workers participated
in such plans. The availability of other health-related bene-
fits was less prevalent—60 percent of full-time employees
participated in a dental care plan, and one-quarter had vi-
sion care coverage. Health care benefits varied little
among occupational groups.

For full-time employees participating in medical care
plans:

e Nearly half were in plans paid for entirely by the em-
ployer for individual medical care, and one-third for
family coverage. When workers contributed, their
monthly premiums averaged $27 for individual cov-
erage, and $97 for family coverage.

¢ 16 percent participated in plans with a preferred pro-
vider option.

e 17 percent participated in health maintenance orga-
nization plans.

Among dental care participants:

e Virtually all had coverage for preventive and restor-
ative dental procedures, and nearly three-fourths
had coverage for orthodontia.

e The vast majority were covered by plans that im-
posed annual limits on dental expenses, typically
$1,000.

Life insurance protection was available to 94 percent of
full-time employees in medium and large establishments
in 1991. Among full-time employees with life insurance
protection:

e Just over half were covered by life insurance based
on a multiple of earnings, usually 1 or 2 times salary.

e One-half had insurance available on the lives of their
spouses, although the majority had to pay the entire
premium for such coverage;

e Two-fifths were in plans that continued employer-
financed life insurance coverage after retirement.

Defined benefit pension and defined contribution
plans

Nearly four-fifths of all full-time workers were covered
by at least one retirement plan in 1991. Defined benefit
plans, which specify a formula for determining future
benefits, were available to three-fifths of full-time em-
ployees in medium and large establishments.

For participants in traditional defined benefit pension
plans: .

@ The majority were in plans with formulas based on
earnings, most frequently earnings in the final years
of employment;

e White-collar participants more commonly were cov-
ered by plans with earnings-based formulas, and
more commonly had benefits coordinated with So-
cial Security;

e@ Common eligibility requirements for a normal, or
unreduced, pension were: Age 65 with no specified
length of service, age 65 with 5 years of service, age
62 with 10 years of service, and 30 years of service at
any age;

@ The majority of covered workers could retire with a
reduced pension at age 55, most often after 10 years
of service;



Table A1. 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, 1991

Number of establish-

Number of occupational quotes studied”

Industry division’ a 5 ,
ments studied Professional, techni- Production and
Total Cal and related | Clerical and sales sevice
All industries .. 2.144 11,274 3,467 2.818 4,989
Manufacturing 540 3,237 rer 420 2,090
Nonmanutacturing . 1,604 8,037 2,740 2,398 2,899
Mining .. 26 177 65 19 93
Construction 61 309 57 aa 231
Transportation, communications,
electric, gas, and sanitary services 300 532 639 712
Wholesale trade . 90 98 196 192
Retail trade 233 98 360 323
Finance, insurance, and real estate .| 246 420 428 307
Services .. 648 1,470 734 1,041
Estimated number of full-time workers within scope of survey
All industries 31,162,656 8,403,844 7,927,915 14,830,897
Manufacturing . 11,674,023 2,990,934 4,816,175 7,766,914
Nonmanufacturing sn... 19,488,633 6,012,911 6,411,740 7,063,982
Mining .. 331,160 121,246 51,805 158,109
Construct 831,400 112,931 36,387 682,082
Transportation, communications,
electric, gas, and sanitary services 2,844,772 658,030 763,583 4,428,158
Wholesale trade .. 1,337,867 218,881 538,406 ‘580,580
Retail trade .. 2,648,156 228,647 1,346,800 4,072,708
Finance, insurance, and real estate . 2,262,500 672,346 1,438,711 154,443
Services . 9,282,778 4,000,828 2,289,047 2,992,903

* As defined in the 1987 edition of the Standard Industrial Classitica-
‘and Budget. Industry data are

tion Manual, U.S. Office of Management

sponse.

shown for informational purposes only and are subject to larger than nor-
‘mal sample error. See section on reliability of estimates.

? These figures refer to all respondents to the survey, whether or not

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

134

they provided data for all items studied. See the section on survey re-


facilities provide skilled nursing care, rehabilitation, and
convalescent services to patients requiring less intensive
treatment than that provided in a hospital. Nine-tenths of
HMO participants had coverage for stays in an extended
care facility; one-fourth were in plans that provided unlim-
ited coverage. In contrast, nearly 8 of 10 non-HMO partic-
ipants were in plans that provided coverage for extended
care benefits; very few participants were in plans that had
full coverage.

Home health care—providing skilled nursing and re-
lated care to patients in their own homes—was available to
81 percent of participants. Home health care benefits were
provided to virtually all HMO participants (96 percent);
these benefits were furnished less extensively to non-HMO
participants (77 percent). The higher incidence of cover-
age for home health care benefits in HMO’s relates to the
fact that Federally qualified HMO’s must provide this
benefit. The vast majority of HMO participants in the sur-
vey belong to Federally qualified plans. When home health
care benefits were provided in HMO’s, coverage was typi-
cally unlimited. Unlimited coverage was quite rare in non-
HMO’s.

Plans, especially non-HMO’s, often limited the duration
of stays in an extended care facility and the number of vis-
its of home health care services. For example, coverage in
an extended care facility is commonly limited to 60 days
per confinement, and home health care services are fre-
quently restricted to 100 visits per year.

Coverage for another alternative to hospitalization, hos-
pice care, was provided to just over one-half of full-time
participants. A hospice offers nursing care and psycholog-
ical support to terminally ill patients, usually defined as
having 6 months or less to live. Plans often times placed
ceilings on maximum dollar amounts payable during a
hospice stay.’

Surgical coverage

Virtually all participants had medical plans that based
payments for in-hospital surgery on the “usual, custom-
ary, and reasonable” (UCR) charges for the specific proce-
dure performed.’* As was true with hospitalization, in-
hospital surgical benefits were most likely to be covered at
a specified percentage rate, usually after any required
overall plan deductible. Forty-one percent of participants
were covered at 80 percent of the UCR charges. Twenty-
nine percent of participants were covered for the full UCR
charges (tables 47-48).

In-hospital surgery was covered according to a schedule
establishing a maximum amount payable for each proce-

15 For a more detailed discussion on alternatives to hospitalization, sce
Thomas P. Burke, “Altematives to Hospital Care under Employee Bene-
fit Plans,” Monthly Labor Review, December 1991, pp.-9-15.

16 The “usual, customary, and reasonable” charge is defined as being
not more than the physician’s usual charge; within the customary range of
fees charged in the locality; and reasonable, based on the medical circum-
stances.

41

dure for less than one-tenth of full-time enrollees. Charges
exceeding the scheduled maximums, however, were gener-
ally covered, subject to the plan’s overall deductible and
coinsurance.

Three-fourths of participants were in plans that covered
outpatient surgery the same way as in-hospital surgery,
whether in full, a percent of UCR charges, or subject to a
schedule of maximum payments. For HMO enrollees,
both inpatient and outpatient surgery were almost always
covered in full.

With the steady rise in costs of medical care, health care
insurers are encouraging enrollees to substitute less expen-
sive outpatient services, such as outpatient surgery, for in-
patient hospital services. To encourage the use of outpa-
tient surgery, non-HMO health care providers have in-
creasingly begun to provide higher reimbursement rates
over those provided for inpatient surgery.’ Three-tenths
of participants in non-HMO’s had coverage for outpatient
surgery treated differently (generally with a higher reim-
bursement) than for inpatient surgery.

Sixty-two percent of all enrollees in plans with surgical
benefits had to satisfy a deductible for in-hospital proce-
dures. When outpatient surgery was needed, however, 45
percent of these participants had a deductible require-
ment. Generally, when deductibles do not apply for in-
hospital surgery, they do not apply for outpatient proce-
dures either.

The medical care plans examined in the survey treated
maternity charges like other surgical charges. One-fifth of
the participants were in plans that did not provide mater-
nity coverage for dependent children, except when compli-
cations from pregnancy developed.

Cost containment

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

Ninety-three percent of medical care participants had
some “managed care” provision available to them (table
49). This includes all participants in HMO’s and PPO’s, in
which the plans manage care by directing patients to spe-
cific providers or services. In addition, 59 percent of the
fee-for-service participants were in plans with at least one
managed care feature, such as hospital preadmission certi-
fication, preadmission testing, and second surgical opin-
ion.

17 For more information on incentives for outpatient surgery see Rob-
ert B. Grant, “Outpatient Surgery: Helping to Contain Health Care
Costs,” Monthly Labor Review, November 1992, pp. 33-36.



Chapter 1. Incidence
of Employee Benefit Plans

The Bureau’s 1991 survey of medium and large estab-
lishments in private industry provides data on employee
work schedules and develops information on the incidence
and detailed characteristics of employee benefits paid for,
-at least in part, by the employer.! These benefits include
paid lunch and rest periods; holidays, vacations, and per-
sonal, funeral, jury-duty, military, parental, and sick
leave; sickness and accident, long-term disability, and life
insurance; medical, dental, and vision care; and private re-
tirement and capital accumulation plans. Because the sur-
vey data are limited to formal plans, this bulletin may un-
derstate the extent of such benefits as rest periods and per-
sonal leave.?

Data also are collected on the incidence of several other
benefits, including severance pay, subsidized parking, fi-
nancial counseling, child-care assistance, wellness pro-
grams, employee assistance programs, and educational as-
sistance. In addition, information was obtained on flexible
benefits plans, reimbursement accounts, and unpaid pa-
rental leave.

For the 1991 survey of benefits in medium and large pri-
vate establishments, BLS collected information for both
full-time and part-time employees. Employees were classi-
fied as either full-time or part-time workers in accordance
with their emloyers’ 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.

The majority of full-time workers covered by the Em-
ployee Benefits Survey were provided? medical care bene-
fits, life insurance, retirement plans, paid holidays, and
paid vacations (table 1). Data for full-time employees are
discussed in chapters 1 through 8, and benefits for part-
time employees are examined in chapter 9.

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

2 The reader is cautioned against comparing data presented here with
the results of the 1989 medium and large private establishment survey.
The survey scope and data collection techniques have changed in numer-
ous ways, as discussed in appendix A.

Time-off benefits

Paid holidays and vacations were available to over 90
percent of full-time employees in medium and large pri-
vate establishments in 1991.‘ In contrast, paid military
leave was provided to 54 percent of workers and paid per-
sonal leave was provided to 21 percent of workers.’ At
least 80 percent of full-time workers received paid funeral
and jury-duty leave, and less than 10 percent had formal
paid lunch periods.

In general, white-collar workers more likely received
formal paid time-off benefits than did their blue-collar
counterparts. This trend was most pronounced for sick
leave and personal leave. Conversely, paid rest periods
were more often available to production and service work-
ers than to white-collar workers.

When employers did provide paid leave, covered em-
ployees received, on average:

e 10 holidays each year;

e@ Vacations of 9 days at 1 year of service, 17 days at 10
years, and 20 days at 20 years;

e@ 3 days of funeral leave per occurrence;
e@ 15 days of military leave per year;

e Jury-duty leave as needed.

Unpaid maternity leave was available to 37 percent of all
full-time workers, and unpaid paternity leave to 26 per-

3 Data were collected on the number of workers “participating” in
benefit plans. All workers were considered participants in wholly em-
ployer-financed plans that require a minimum length of service, even if
some workers had not met those requirements at the time of the survey.
Where plans—such as medical care or life insurance—required an em-
ployee to pay part of the cost (contributory plans), workers were consid-
ered participants only if they elected the plan.

4 In addition to data on all full-time employees in medium and large
establishments, data are presented separately for three occupational
groups—professional, technical, and related; clerical and sales; and pro-
duction and service workers. This bulletin often discusses the first two
groups jointly as white-collar workers, in contrast with production and
service, or blue-collar, workers. Occupational groups differ from earlier
‘studies of medium and large private establishments; see appendix A for
further details.

5 Workers covered by a plan were labeled participants whether or not
they used a benefit. For example, although the tables in this bulletin de-
scribe the provisions of sick or parental leave plans, they do not indicate
the number of employees using these benefits or the amount of leave time
taken.



Table 33. Long-term disability insurance: Percent of
full-time participants with maximum disability income
provisions’ by type and amount of maximum, medium and
large private establishments, 1991

Profes-
sional, | Clerical | Produc-
Alt par-| feehni- | and | tion and
Disability income maximum | 0: 82. |cal, and} sales | service
pants} ‘elated | partici- | partici-
partici- | pants pants:
pants
Total ...... 100 100 100 100
Fixed percent of employee's
earnings .. . a3 | ai 83 | 86
Less than 70 percent .. 9 12 9 4
70 percent .. ar 27 | 2 | 28
75 percent .. 25 18 25 35
80 percent .. 5 7 7 1
More than 80 percent... 7 18 W7 18
Other? i a) 1 1
Not determinable 16 19 16 13

‘ Ceilings on income during disability that limit the total amount payable
from the long-term disability insurance and other income.

? Includes maximum benefits specified as a dollar amount.

* 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 35. Long-term disability insurance: Percent of full-time
participants by duration of benefits, medium and large
private establishments, 1991

Table 34. Long-term disability insurance: Percent of
full-time participants by benefit waiting period,’ medium and
large private establishments, 1991

Profes-
sional, | Clerical | Produc-
Ant par- | techni. | and tion and
Length of waiting period fieipants| C2: and) sales | service
related | partici- | partici-
partici- | pants | pants
pants
Total .. 400 | 100 | 100 | 100
Less than 3 months 4 4 7 1
3 months 13 14 7 9
4.5 months 3 4 3 3
6 months 50 55 50 45
7-11 months .. 1 1 ro) 1
1 year or more .. 6 7 5 6
Varies by service’ 19 12 16 31
Other .... (9) e a 9)
Not determinable 3 3 4

* Length of time between onset of disability and beginning of LTD pay-
ments,

® Less than 0.5 percent.

® Benefits commence after expiration of paid sick leave and/or sick-
ness and accident insurance benefits.

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

-term disability insurance: Percent of
full-time participants by length-of-service requirement for
participation,’ medium and large private establishments, 1991

Protes-
sional, | Clerical | Produc-
techni- | and | tion and
Duration (Arba |cal, and] sales | service
pants) related | partici- | partici-
partici | pants | pants
pants

Profes-
sional, | Clerical | Produc-
Al par. | teehni. | and |tion and
Length-of-service requirement | 2A | cal, and| sales | service
pants | related | partici- | partici-
partici- | pants | pants
pants

Total . 100 | 100 | 100 | 100
For life 3 3 2 2
To retirement age ... 14 14 15 4
Varies by age when disability
OCCUES on 73 cal 73 76
‘One-time reduction .. 15 13 W 24
Gradual reduction 87 58 62 52
Varies by type of disability’ .. 1 1 ul 1
Other* 2 1 1 4
Provision not determinable .. 8 10 8 6

* The duration of benefits may be reduced gradually according to an
age schedule or reduced once at a specified age.

? Benefits for disabilities caused by accidents were usually paid for life;
duration for illnesses was limited.

* Less than 0.5 percent.

* Includes durations that vary by length of service.

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

35

Total . 100 | t00 | 400 | 100

With service requirement .. 61 55 60 68

1 month 7 7 9 6

2 months 3 2 2 3

3 months 12 12 13 1

4-5 months 4 2 1 8

6 months 7 W 17 25
7-11 months (9) 19) @ io)

1 year 42 13 12 12
Over 4 year and under 2 years i) ) fe) -

2 years 1 1 2 1

3 years i 1 1 1

Over 3 years . 3 4 3 3

Without service requirement... 29 32 29 24

Service requirement not determin-
able . — 10 12 1" 8

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

? Less than 0.5 percent.

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



Table 110. Savings and thrift plans: Average annual contributions for full-time participants by annual earnings and allowable
contribution levels, medium and large private establishments, 1991

Employee contribution Employer contribution ‘Combined contribution
Annual earnings idol ' —
‘ni Midpoint of Midpoint of ini Midpoint of
Minimum. range Maximum | Minimum range Maximum | Minimum range Maximum
$15,000 $186 $1,121 $2,056 $118 $460 $504 $304 $1,582 $2,560
$20,000 247 1,492 2,737 158 613 672 405 2,106 3,409
$25,000 308 1,863 3,418 197 766 639 505 2,629 4,257
$35,000 431 2,605 4,779 275 1,071 1,173 706 3,676 5,959
$45,000 553 3,932 6,111 383 1,875 1505 907 4,707 7,816
$55,000 676 4,000 7,825 431 1,876 1,837 1,107 5,677 9,162

Table 111. Savings and thrift plans: Average lump sum
benefit available at retirement for full-time participants by
years of plan participation, selected final annual earnings
levels, and selected rates of interest, medium and large
private establishments, 1991

Interest rates and annual Years of participation
earnings 10 15 20
6 percent
$15,000 $17,733 $26,259 $34,330
$35,000 41,239 61,081 78,870
$55,000 64,131 95,260 124,742
10 percent
21,939 35,740 51,470
51,022 83,137 119,758
79,394 129,777 187,238

' Earnings levels are for 1991.

each preceding year.

NOTE: Data assume employee contributes to the plan at the midpoint

Eamings levels for previous years of
service were produced by using annual percentage changes in salary
levels based upon Social Security Administration national wage data for

level and receives the corresponding employer-matching contributions.

115



Table 13. Paid personal leave: Percent of full-time
employees by number of paid personal leave days provided
per year, medium and large private establishments, 1991

Table 14. Paid funeral leave: Percent of full-time employees
by number of paid funeral teave days available per
occurrence, medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
‘Alem. | techni | and tion and
Number of days cal, and} sales | service

ployees | refated | employ- | employ-

Profes-
sional, | Clerical | Produc-
Alem. | techni | and | tion and
Number of days cal, and] sales | service

ployees | ‘elated | employ- | employ-

employ-| ees | ces

ees
Total... 400 | 100 | 100 j 100
Provided personal leave 2 29 26 13
i day 2 2 4 2
2 days 5 6 7 4
3 days 5 7 6 2
4 days 4 7 5 3
5 days 2 3 2 1
More than 5 days 1 1 2 i
No maximum specified’ 1 2 Q co)
Varies by length of servi 2 2 3 1
Not provided personal leave... 79 n 74 87

* Workers were provided as much personal leave as they needed.
? Less than 0.5 percent.
2 The maximum number of days provided was included in the distribu-

tion of personal leave days.

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

Table 15. 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,
1991

employ-| ees | ees
ees

Total . 100 | 100 | t00 | 100
Provided paid funeral leave 80 84 82 7
1 day vs 1 C) 1 1

2 daYS orn 3 1 2
3 days 59 58 87 61
ne 3 4 2 3
5 dAY8 sinnrennnnnnnnn 10 14 15 6
More than 5 days e 1 () 0)
No maximum specified * | 3 5 4 2
Varies by length of service wan) 1 () 1 Q
Number of days not available 0) 0) 0) Oo
Not provided paid funeral leave .......| 20 16 18 23

Number of days varies by relation-

ship to deceased’ .. 7 at 19 13

* Less than 0.5 percent.

? Workers were provided as much funeral leave as needed.

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

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

Table 16. Paid military leave: Percent of full-time
employees by number of paid military leave days available
per year, medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
Alem. | techni | and | tion and
Number of days pioyees [Ca and] sales | service

related | employ- | empioy-

Profes-
sional, | Clerical | Produc-
techni- | and | tion and

All em | cal, and] sales | service

Number of days
ployees | ‘elated | employ- | employ-

employ-| ees | ees

ees
Total ... 100 | 100 }| 100 } 100
Provided paid jury-duty leave 86 92 a8 2
‘Under 10 days 1 1 cu) 1
10 days . 6 7 6 5
11-19 days 1 1 1 1
20 days .. 1 2 2 1
21 days .. vy) 0) ¢) 0)
22-30 days 2 2 2 1
More than 30 days .. 1 1 1 1
No maximum specified? m4 79 5 71
Number of days not available .... 1 1 1 1
16 8 12 18

Not provided paid jury-duty teave .....

* Less than 0.5 percent.
® Jury-duty leave is provided as needed.

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

employ-| ees | ees

ees
Total ... 100 | 100 | 100 | 100
Provided paid military leave 54 63 56 48
Less than 10 days 0) 1 1 ¢)
10 days .. 27 32 23 23
11-14 days 4 4 5 4
15 days .. 5 5 3 6
16-19 days 1 1 1 1
20 days... 1 1 1 1
21-29 days 0 0) (v) O)
30 days 1 2 1 1
More than 30 days 2 2 2 1
No maximum specified’ .. 12 14 13 n
Number of days not av 1 1 0) 1
Not provided paid mititary leave... 46 37 44 52

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

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



Table 3. Work schedules: Percent of full-time employees by
hours scheduled per week and per day, ' medium and large
private establishments, 1991

Table 4. Paid lunch time: Percent of full-time employees by
minutes of paid lunch time per day, medium and large
private establishments, 1991

Profes-
sional, | Clerical | Produe-
techni- | and | tion and
cal, and! sales | service
related | employ- | employ-

All em-

Minutes per day ployees

Profes-

sional, | Clerical | Produc-

item. | techniz | and {tion and

Work schedule Toyees |CAl and] sales | service

Ployees | ‘elated | employ- | employ-
employ-| ees | ees

ees
Total .... 100 | 100 | 100 | 100
Hours per week:
Under 30 .. 1 1 1 2
30 on ie) io) ) 1
Over 30 and under 35 1 co) 1 1
Brrr ses 5 6 7 2
Over 36 and under 37.5 2 2 2 2
87.5 rnenrnnnnnne 8 12 “1 4
Over 37.5 and under 40 3 3 2
40 ses 78 73 71 84
Over 40 and under 50 2 2 1 1
50 and over . 1 1 1 1
Hours per week not available ....) (a) - a)
Non-fixed work hours 1 1 is) 1
Hours per day:

Under 5 .. 1 1) 19) 1
5. i) 19) io) io)
‘Over 5 and under 6 1 e 1 1
6... 1 ro) i) 1
Over 6 and under 7 ... 1 i} 1 1
7. 5 7 2
Over 7 and under 8 ... 12 16 18 7
8 78 74 72 84
Over 8 and under 10 1 2 1 1
10... 1 1 iv] 1
Over 10 . 1 1 ry 1
Hours per day not available ® ro) - (a)
Non-fixed work days .. 1 1 ) 1

* Work schedule data included paid lunch, and paid rest periods.
* Less than 0.5 percent.

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

Table 5. Paid rest time: Percent of full-time employees by
minutes of paid rest time per day, medium and large private
establishments, 1991

Profes-
sional, | Clerical | Produc-
techni- | and | tion and

All em | cal, and| sales | service

Minutes per d
muses pereey Ployees | related | employ- | employ-

employ-| ees. ees,
ees

Total .. 100 | 100 } 100 | 100

Provided paid rest time 67 58 67 a

Under 15 minutes 1 1 1 2

15 minutes 6 6 7| 76

20 minutes 20 15 16 24

‘Over 20 and under 30 minutes 1 0) 1 2

30 minutes .... 6 35 1 34

‘Over 30 and under 40 minutes 19) 9) 10) cu)

40 minutes .. () 0) 0) 1

Over 40 minutes .... 1 oO ru) 3
Number of minutes not

available ... 7 1 1 1 1

Not provided paid rest time . 33 42 33 29

* Less than 0.5 percent.

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

employ- ees ees
ees

Total 100 100 100 100

Provided paid lunch time 8 5 4 W

Under 20 minutes 0) °) () 1

20 minutes | 2 0) Qo 4

Over 20 and under 30 minutes ...! — (") - - cv)

30 minutes ...... 4 3 1 5

Over 30 minutes .. 1 1 2 1
Number of minutes not

available 0) 0) ) io)

Not provided paid lunch time waco) 92 95 96 89

* Less than 0.8 percent.

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

Table 6. Paid holidays and vacations: Average number of
days for full-time participants, medium and large private
establishments, 1991

Profes-
sional, | Clerical | Produo-
techni- | and tion and

tem a em | cal, and| sales | service
Ploy« related | employ- | employ-
employ-} ees | ees

ees

Paid holidays... 102 | 106 | 101 | 10.4

Paid vacation by minimum tength of
service requirement:’
After 1 year? 93 | 118 94 78
After 3 years .. 141 | 128 | 109 | 102
After 5 years .. 134) 154) 135 | 122
After 10 years 165 | 185 | 164 | 155
After 15 years 187 | 203 | 189 | 177
After 20 years 204 | 21.9} 204 | 195
After 25 years 215 | 229) 215 | 208
After 30 years? .. 219 | 234 | 219 | att

* Employees either are granted a specified number of days after com-
pletion of the indicated length of service or accrue days during the next 12
month period. The total number of days are assumed available for use im-
mediately 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 vaca-
tions.

* The average (mean) was essentially the same for ionger lengths of
service.

NOTE: Computation of average included partial days and excluded
workers with zero holidays or vacation days and those with informal plans.



Contents—Continued

Medical care:
39. Coverage for selected categories of care ....... 6... e cece e eect ee cere tee e tere e tect ene renee
40. Fee arrangement and financial intermediary .
41. Overall limitations—amount of deductible
42. Overall limitations—coinsurance ........
43. Overall limitations—out-of¢peci.et expense limits .... .
44, Overall limitations—sum of total annual deductible and maximum out-of-pocket expense limits ..

Overall limitations—maximim benefit provisions ...
Hospital room and board coverage by type of benefit payments .
In-hospital surgical benefits by type of payments ...........
In-hospital surgical benefits by comparison with outpatient surgical coverage,

by type of medical care provider .
Managed care benefit provisions .
Selected cost containment features
Second surgical opinion provisions . .
Mental health benefits by extent of benefits .
Substance abuse treatment benefits ........
Alcohol abuse treatment benefits by extent of benefits
Drug abuse treatment benefits by extent of benefits ....
Health Maintenance Organizations: Selected plan features ..
Coverage for selected special benefits
Contributory plans by type and amount of employee contribution
Average monthly contribution for employee and family coverage ...
Contributory status by type of plan
Length-of-service requirements for participation .
Provision for coverage after retirement ..
Coverage after retirement by benefit provisions and age of retiree .

Dental care benefits:

64.

Contributory stand-alone dental plans by type and amount of employee contribution ................
Extent of coverage for selected procedures .
Deductible provision ................
Yearly maximum amount of insurance ..

68. Orthodontic benefits by lifetime maximum amount of coverage .
69. Provision for preauthorization of dental treatment

Vision care:
70. Vision benefits by extent of coverage for selected procedures .

Life insurance:

7
72.

Method of determining amount of basic life insurance and frequency of related coverages
Multiple-of-earnings formulas by amount of basic insurance and maximum coverage provisions .
Flat dollar insurance by amount of basic insurance
Average benefit amounts by specified annual earnings and years of service
Provisions for age-related reduction of basic benefits for current employees . .
Average benefit amounts for participants with 30 years of service by age and specified annual earnings .
Effect of retirement on basic coverage
Accidental death and dismemberment insurance by amount of benefit
Supplemental life insurance coverage . .
Dependent life insurance coverage .. ee
Length-of-service requirements for participation ............ 066. ccc cence cece eee e eect eee e eee eee

70



Table 122. Summary: Percent of part-time employees participating’ in selected employee benefit programs, medium and
large private establishments,” 1991
Profes- Profes-
sional, | crericay|Produ sional, Produe-
att em.| teenni | CSTE! ton ‘anem.| teen | PFE ton
Employee benefit program ploy- | 40a, | sales | a0 Employee benefit program ploy- | Cah | sales | 0,
ees" "lated |POemploy ees" | lated | CPI% lemploy-
‘employ- ees? lemploy- ees?
ees? ees®
Paid Dental insurance—Continued
Holidays 47 45 62 37 || Family coverage:
Vacations - 55 | 55 | 66 | 47 Wholly employer financed a! s8| w] 8
Personal leave wo | 16) it 7 Partly employer financed . a} 2%] 9| 6
Lunch period-.. toa} 5) 4 2
Rest time . ee] se | 58 | 62 | 50 |ftite insurance nn a1] 41 | 96 | 24
Funeral lea : 3a | 46] 49] 29 Wholly employer financed 22 | 30 | 26] 15
Jury duty leave 4 | 7 | 47 | 39 Partly employer financed a} a] i] 40

14) 20] 19 10

go | 41 37 | 22
1 3 i) ¢)
i) 1 0 ia)

Military leave
Sick leave
Maternity leave
Paternity leave

Unpaid:
Matemity leave
Patemity leave

19 33 20 14
14 22 15 W

Sickness and accident insurance 19 20 20 18

‘Wholly employer financed 12 13 W 13
Partly employer financed . 7 7 9 5
Long-term disability insurance 3| 16 2 4
Wholly employer financed 3 | 15 2 1
Partly employer financed . 1 210] 6

Medical care . 2g) 42 | 26 | 26
Employee coverage:
Wholly employer financed ...
Partly employer financed .
Family coverage:
Wholly employer financed .
Partly employer financed ‘| 18} 39 | 17 | 14

12 10 at 14
16 32 16 12

Dental care ww] 36 | 1] 14
Employee coverage:
Wholly employer financed

Partly employer financed ..

10 " 1" 9
8 24 8 5

|All retirement...

[Defined benefit pension ..
Wholly employer financed
Partly employer financed ..

[Defined contribution®
Uses of funds:

Retirement” 13} 19] 20] 16
Wholly employer finance 10 6 8 13
Partly employer financed 7| 13] 12 3
Capital accumulation’ .. 2 2 3 1
Wholly employer financed* is) 1 iv) iv)
Partly employer financed 2/0 3 1
Types of plans:
Savings and thrift. a| i] 12 3
Deferred profit sharing ..... 10 1 12 0
Employee stock ownership | 1 1
Money purchase pension . 4 WW 4 5
Stock bonus .... - - - -
[Stock option .. - - - -
[Stock purchase 1 - 1 ie)
|Cash only profit-sharing ........ - - - -
Flexible benefits plans 2 6 1 2
Reimbursement accounts a ]ost) ou 5

' Participants are workers covered by a paid time off, insurance, re-
tirement, or capital accumulation plan: Employees subject to a minimum
service requirement before they are eligible for benefit coverage are
counted as participants even if they have not met the requirement at the
time of the survey. If employees are required to pay part of the cost of
a benefit, only those who elect the coverage and pay their share are
counted as participants. Benefits for which the employee must pay the
full premium are outside the scope of the survey. Only current employ-
ees are counted as participants; retirees are excluded.

? See appendix A for scope of study.

* See appendix A for definitions of the occupational groups.

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

© Less than 0.5 percent.

* The total is less than the sum of the individual items because some

‘employees participated in both retirement and capital accumulation
plans, and in more than one type of plan.

” Plans were counted as retirement plans if employer contributions
had to remain in the participant's account until retirement age, death,
disability, separation from service, age 59 1/2, or hardship.

* Employees participating in two or more plans were counted as par-
ticipants in wholly employer-financed plans only if all plans were noncon-
tributory.

* Includes plans in which employer contributions may be withdrawn
from participant's account prior to retirement age, death, disability, sepa-
ration from service, age 59 1/2, or hardship. Excludes pure cash profit
sharing, stock option, and stock purchase plans.

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

127



Thirty-five percent of participants in defined contribu-
tion retirement plans had all contributions to these plans
made by the employer. In contrast, only 23 percent of the
participants in capital accumulation plans had all contri-
butions made by the employer. A large majority of capital
accumulation plans were savings and thrift plans, which
involve employer matching of employee contributions.

Forty percent of participants in all retirement and capi-
tal accumulation plans were enrolled in more than one
plan. When more than one plan was available, theemploy-
er most often combined a defined benefit pension plan and
a savings and thrift plan. In fact, about one-half of partici-
pants in savings and thrift plans also participated in other
plans. Just over oné-half of participants in profit-sharing
plans and nearly one-third of participants in money pur-
chase pension plans took part in another retirement or
capital accumulation plan (table 104).

Cash or deferred arrangements

Plans with a cash or deferred arrangement enrolled 44
percent of the employees within the scope of the survey, up
from 41 percent in 1989 (table 105).** These arrangements,
also known as 401(k) plans, allow participants to choose
between receiving currently taxable income or deferring
taxation by placing the money in a retirement account.
Cash or deferred arrangements took the form of either
salary reduction plans, deferrals of profit-sharing alloca-
tions, or mandatory regular contributions to a pension
plan on a pretax basis.

Salary reduction plans, with 40 percent of employees
participating, allow employees to contribute a part of their
earnings to a retirement plan, and defer income taxes on
those contributions and their earnings until distribution.
Such contributions are referred to as “employee elective
deferrals” or “pretax contributions.”

Deferrals of profit-sharing allocations give employees
the choice of receiving an employer’s profit-sharing contri-
bution immediately in cash, or deferring the contribution
and postponing taxation until distribution. Such arrange-
ments were infrequent, as were pension plans that allowed
employees to make required contributions on a pretax ba-
sis.

Salary reduction features, more common among white-
collar employees than among blue-collar employees, were
available through several types of defined contribution
plans. The most frequently observed vehicle for pretax
savings was a savings and thrift plan, accounting for 7 of
10 participants. The remainder generally could make
salary reduction contributions through a profit-sharing
plan or a freestanding plan, that is, a plan set up for em-
ployee salary reduction with no employer contribution.

46 For freestanding 401(k) plans, participants were those workers ac-
tually making pretax contributions. For other plans, participants were
those workers in plans offering cash or deferred arrangements, whether or
not workers actually made pretax contributions.

105

From a different perspective, 71 percent of all partici-
pants in defined contribution plans could make voluntary
salary reduction contributions to their plan. The incidence
was higher for white-collar (77 percent) than for blue-col-
lar (61 percent) employees. The following tabulation
shows the percent of defined contribution plan partici-
pants in plans with salary reduction features:

Defined contribution Percent of
plan participants

98
28
.17

Savings and thrift
Deferred profit shai
Money purchase pension

Savings and thrift plans

Savings and thrift plans enrolled 29 percent of em-
ployees covered by the survey—37 percent of white-collar
and 20 percent of blue-collar workers. Under these plans,
employees contribute a predetermined portion of earnings
to an account, all or part of which the employer matches.
Contributions are invested in various vehicles, such as
stocks, bonds, and money market funds, as directed by the
employee or employer, depending upon the provisions of
the plan. Although usually designed as a long-term savings
vehicle, savings and thrift plans may allow withdrawals for
specified conditions (such as medical and educational ex-
penses) and may allow loans so participants can borrow
funds from their account.

Employee contributions, (See tables 106 to 108.) Savings
and thrift plans allow employees to choose from a range of
possible contribution rates. A plan, for example, might al-
low maximum employee contributions of any amount
from 5 to 20 percent of pay. One-fifth of participants could
contribute 16 percent of their earnings; another fifth could
contribute 15 percent. Other common maximums were 10,
12, and 17 percent.

Salary reduction, after only a few years, has become a
dominant feature of savings and thrift plans. Ninety-eight
percent of participants in savings and thrift plans were al-
lowed to make pretax contributions, up from 92 percent in
1989, 85 percent in 1988, and 75 percent in 1986.

The provisions governing pretax contributions vary
widely. For example, just over one-half of the participants
in plans allowing pretax contributions had an option to
make either pretax or posttax contributions; nearly one-
half could make only pretax contributions; and the re-
mainder had to make at least some of their contributions
on a pretax basis.

The tax status of employee contributions is important
not only because of the current deferral of income taxes,
but also because an employee may not withdraw pretax
contributions from his or her account—except in limited
circumstances—without severe tax penalties. Employees
who elect posttax rather than pretax contributions, how-



Table 61. Medical care benefits’: Percent of full-time
participants by length-of-service requirements for participa-
tion,’ medium and large private establishments, 1991

Table 62, Medical care benefits': Percent of full-time
Participants by provision for coverage after retirement,
medium and large private establishments, 1991

Profes-
sional, | Clerical | Produc-
‘All par-| teehni- | and | tion and
Length-of-service requirement | jrigintg | Cal, and) sales | service
related | partici | partici-
partici- | pants | pants
pants
Total .... 100 | 100 | 100 | 100
With service requirement .. a 29 36 50
4 month .. " 10 "1 12
2 months ... 4 2 3 6
3 months 16 12 15 19
4-5 MONTHS un 3 1 2 4
6 months .... 4 2 4 5
7-11 months. 2 2 1 4
® @ i] @
oO 0) iv) 0)
Without service requirement . 40 51 a7 31
Service requirement not determin-
ate § ann . 19 at 7 18

Not applicable—plan not available
to new employes .... oe) 0) io) iv)

* 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.

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

* Less than 0.5 percent.

* Plans where service requirements were unknown, usually because
plan documents (typically prepared by health care provider) did not specify
the employer's eligibility provisions.

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

64

Profes-
sional, | Clerical | Produc-
All par- | #echni- | and tion and
Provision ticipants Cah and! sales | service
ipants| related | partici- | partici-
partici- | pants | pants
pants
Total . 100 | 100 | 100 | 100
With employer-financed retiree
coverage’ ... sesean 45 50 48 40
For retirees under age 65 only 4 3 5 5
For retirees 65 and over only 2 3 2 t
For all retirees 38 44 a 34
Benefits cancelled on retirement or
financed whally by retiree a.) 54 49 51 58
Data not available .. 1 1 1 2

' Plans providing services or payments for services rendered in the
hospital or by @ physician. Excludes plans that provided only dental, vi-
sion, or prescription drug coverage.

? Includes plans financed wholly by employers and plans financed
jointly by employers and employees.

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



Table 19. Short-term disability coverage: Percent of
full-time employees by participation in sickness and accident
insurance plans and paid sick leave plans, medium and large
private establishments, 1991

Protes-
sional, | Clerical | Produc-
‘Alem | techni | and | tion and
Type of plan loyees cal, and| sales | service
Ployees | related | employ- | employ:
employ-} ees | ees
ees
Total .. 100 | 100 | 100 | 100
With short-term disabitity coverage ..| 86 92 89 81
Sickness and accident insurance
only ... sone] 19 5 8 34
Paid sick leave only .. 42 60 54 25
‘Combined sickness and accident
insurance/paid sick leave .. 25 ar 27 23
Without short-term disability
COVEFAGE ern 14 8 1" 19

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

19

Table 20. Paid sick leave: Percent of full-time employees by
type of provision, medium and large private establishments,
1991

Profes-
sional, | Clerical | Produc-
‘Alem | techni | and | tion and
Provision ployees [C2 and| sales | service
related | employ- | employ-
employ-| ees | ees
ees
Total . 100 | 100 | 100 | 100
Provided paid sick leave 87 87 82 48
Sick leave provided on:
An annual basis only! 51 61 64 39
A per disability basis only? 10 18 10 6
Both an annual and per
disability basis 4 6 7 2
As needed basis’ ... 1 2 1 1
Other basis* .... 19) 0 iv)
Policy not available a) ) - -
Not provided paid sick teave 33 13 18 52

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

? Employees earn a specified number of sick leave days for each ill
ness or disability. This number may vary by length of service.

* Plan does not specify maximum number of days.

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

* Less than 0.5 percent.

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



Appendix B. Availability of
the Survey’s Data Base

The tables published in this bulletin present the major
findings of the employee benefits survey in medium and
large private establishments. The survey includes data for
both full-time and part-time employees. Results of addi-
tional research will appear as occasional articles in the
Monthly Labor Review or Compensation and Working
Conditions.

The statistical tables in these publications cover only a
portion of the employee benefits information collected.
Persons interested in all provisions of a particular benefit
studied from the 1981-90 surveys can purchase a set of
magnetic tapes containing the survey’s data base by writ-
ing to: Office of Compensation and Working Conditions,
Bureau of Labor Statistics, Washington, DC 20212-0001.
The 1991 data will be available to the public on magnetic
tape in the near future. Send any questions on the availabil-
ity of these tapes to the above address.

Because of its pledge of confidentiality to survey respon-
dents, the Bureau has carefully screened the tapes to re-
move or alter any data that would reveal the identity of in-
dividual establishments. The Bureau supplies data tapes
and supporting documentation at cost.

For major benefit items, the BLS survey obtained plan
provisions and employee participation data. The magnetic
tapes—which consist of a control file and plan data files
for each benefit area—may be used to derive national esti-
mates, similar to those published in this bulletin, for other
items in the data base. For some data items not presented
in this bulletin, however, the data file can not produce reli-
able national estimates, because either information on the
provisions frequently was not available or the number of
employees with the provision was very small. Moreover,
the tapes may not yield reliable estimates for individual in-
dustries, geographic regions, or establishment size classes.
Full documentation accompanies the tapes, including ex-
amples of estimating formulas. Although Bureau staff will
respond to questions concerning the content of the tapes,
technical assistance in developing estimates is limited due
to resource contraints.

For the 1981-89 surveys, data users can buy individual
tapes with details of plans for each of the following benefits

138

or groups of benefits: (1) Medical, dental, and vision care;
(2) life insurance; (3) sickness and accident insurance; (4)
long-term disability insurance; (5) retirement and capital
accumulation plans; and (6) time off. A single, combined
tape is also available. It contains data for all of the benefits
listed above. For the 1990 survey, only a single tape with
selected benefit areas is available.

The plan data file contains provisions for each plan that
was reported and for which usable information was avail-
able. However, plan identification numbers on the tape are
scrambled (and other identifying information is removed)
to protect the confidentiality of responding establish-
ments.

Purchasers also receive the control file, which contains
establishment information required to produce estimates
from the plan data. Control file records include establish-
ment size codes; geographic, industrial, and employee
group classification codes; and the weighted number of
workers in each employee group. The control file also lists
all benefit plans offered in an establishment, with the
weighted number of plan participarits in each employee
group. A plan is listed on more than one control file record
if it covers employees in more than one establishment. Al-
though plan identification numbers on the control file are
scrambled, the same scrambled numbers appear on the
data file so they can be matched to make estimates, Be-
cause establishment identification numbers on the control
file are scrambled differently for each employee group, us-
ers can not link together plans offered to different em-
ployee groups within an establishment.

Benefit provisions obtained from plan documents are re-
corded in coding manuals for medical, dental, and vision
care; life insurance; sickness and accident insurance; long-
term disability insurance; retirement; and capital accumu-
lation plans, and these provisions are then entered on the
plan data file. Tape purchasers receive a set of coding man-
uals and instructions for completing them to help interpret
the data on file. Time off, flexible benefits, and reimburse-
ment account provisions are reported directly on collec-
tion forms, copies of which the Bureau also provides to
tape buyers.


Table 1. Summary: Percent of full-time employees participating’ in selected employee benefit programs, medium and targe

private establishments,’ 1991

Profes-
sional, | cyerigay [Produc
* | Clerical
alt em-|ThP'| “ang | fod
Employee benefit program POY | and te SH28 | somice
lated POE'S lemploy-
‘employ- ees?
ees?

Protes-
sional, | Grerigat | Produc
Al techni- | “FCA |" tion
Lem and
Employee benefit program ploy- | Ch | sales | 2nd
PIX | and re-| Sars, | service]
tated [PPO ‘employ.
lemploy-| ecs?
ees?
Paid:
Holidays .. 92 | 93| 94) 90
Vacations 96 | 97 | 98 | 95
Personal leave . ai| 29| 26] 13
Lunch period .. 8 5 4]; on
Rest time 67 | sa] 7 | 7
Funeral leave . go | e¢| 2] 7
Jury duty leave ... ae | 92 | 68 | 82
Military leave s4| 63 | 56 | 48
Sick leave ..... e7 | a7 | 62] 48
Maternity leave 2 3 2 1
Paternity leave 1 1 1 ral
Unpaid:

37 43 38 33
26 31 26 23

Maternity leave .
Paternity leave ..

Sickness and accident insurance .. 45 32 35 57
Wholly employer financed ..

Partly employer financed

13 12 10

Long-term disability insurance 4o| 61 | 49] 24
Wholly employer financed ..

Partly employer financed

9 15 W 4
Medical care ss | 95 | a1 | 84
Employee coverage:
‘Wholly employer financed
Partly employer financed
Family coverage:
Wholly employer financed
Partly employer financed

at 38 35 46
42 47 46 38

26 a 22 31
57 64 59 53

60 67 60 87

35 36 31 37
25 31 29 20

Wholly employer financed ...
Partly employer financed

Dental insurance—Continued
Family coverage:
Wholly employer financed
Partly employer financed

26 25 23 29
34 42 37 28

94 98 95 92
80 83 82 7
14 15 13 14

Life insurance
Wholly employer finance
Partly employer financed

[Ail retirement’ .. 78 83 7 75

Defined benefit pension some] 59 |, 60 | 56] 59
Wholly employer financed se | 57 | 54] 56
Partly employer financed ener 3

48 57 53 39

‘Defined contribution® ..
Uses of funds:
Retirement”
Wholly employer financed’

9 48 44 3t
14 14 13 14

Partly employer financed .. 26 | 35 | 31] 17
Capital accumulation® 9 | 10) 10 9
Wholly employer financed® 2 1 1 3
Partly employer financed ..... 7 9 9 6

‘Types of plans:
Savings and thrift
Deferred profit sharing .

29 38 35 20
16 13 16 8

Employee stock ownership .. 3 4 4 2

Money purchase pension 7) 4 7 5

Stock bonus iv) i) a) -
[Stock option i) i) i) o)
[Stock purchase 2 4 2 2
|Cash only profit-sharing 1 1 1 io)
Flexible benefits plans 10 | 16] 10 6

[Reimbursement accounts .. 36 48 40 26

* Participants are workers covered by a paid time off, insurance, re-
tirement, or capital accumulation plan. Employees subject to a minimum
service requirement before they are eligible for benefit coverage are
counted as participants even if they have not met the requirement at the
time of the survey. if employees are required to pay part of the cost of
a benefit, only those who elect the coverage and pay their share are
counted as participants. Benefits for which the employee must pay the
fult premium are outside the scope of the survey. Only current employ-
‘ees are counted as participants; retirees are excluded.

® ‘See appendix A for scope of study.

® See appendix A for definitions of the occupational groups.

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

= Less than 0.5 percent.

® The total is less than the sum of the individual items because some

‘employees participated in both retirement and capital accumulation
plans, and in more than one type of plan.

” Plans were counted as retirement plans if employer contributions
had to remain in the participant's account unti! retirement age, death,
disability, separation from service, age 59 1/2, or hardship.

* Employees participating in two or more plans were counted as par-
ipants in wholly employer-financed plans only if all plans were noncon-
tributory.

® Includes plans in which employer contributions may be withdrawn
from participant's account prior to retirement age, death, disability, sepa-
ration from service, age 59 1/2, or hardship. Excludes pure cash profit
sharing, stock option, and stock purchase plans.

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



Table A-3, Standard errors for table 6 -- Paid holidays and
vacations: Average number of days for full-time
participants, medium and large private establishments,

1991
Profes-
Aipar | sional, | Clerical Production
fem Capea | technica, | and sales | 270
and related participants| ic eg
participants|
Paid holidays ... 0.13 018 0.5 0.18
Paid vacation by minimum
tength of service
requirement:
Alter 1 year 10 19 6 a
Alter 3 years . ‘08 48 he ho
After 5 years . a 48 47 44
After 10 years 10 M7 16 14
After 15 years 1 18 18 47
Ater 20 years 12 19 48 a7
After 25 years... 14 ‘22 ‘20 49
After 30 years 16 23 22 21

Table A-4: Standard errors for table 12 — Paid vacations: Average number of days for full-time participants by length of
service and cash-in/carryover provisions, medium and large private establishments, 1991

Vacation days by Cash-in, carryover, Cash.in and No casheir
minimum length of All plans 1 carryover, | Carryover only Cash-in onl an fo cash-in or
service requirement or both ¥ carryover carryover

Alter 1 year .. 0.10 0.18 0.18 0.38 0.88 ont
After 3 years 08 16 16 33 52 40
After 5 years Mt 20 ‘20 36 64 113
After 10 years 10 18 20 38 56 113
After 15 years at 17 17 45 59 16
After 20 years 12 19 ‘20 48 53 17
After 25 yoars 14 ‘24 24 49 87 19
After 30 years 16 22 27 ‘St 87 23

136

|
|
|
i



Table 24. Paid annual sick leave:' Percent of full-time
participants by unused sick leave policy and carryover
provisions, medium and large private establishments, 1991

Table 25. Paid annual sick leave:' Average number of days
at full pay for full-time participants by accumulation policy,
medium and large private establishments, 1991

Profes- Profes-
sional, | Clerical | Produc- sional, | Clerical | Produc-
, techni- | and | tion and techni- | and | tion and
Unused sick leave. policy end iS ion cal, and) sales | service Sick leave policy All Par- cal,and| sales | service
carryover provisions ticipants related | partici- | partici. ticipants elated | partici- | partici-
partici- | pants | pants partici | pants | pants
pants pants
Unused sick leave policy Paid annual sick leave days by
minimum length-of-service
Total 100 | 100 | 100 | 100 requirement:?
Carryover only a2 | 49 | 42 | 935 Alter 1 year of service
Cash-in only 10 4 a | 17 Cumulative plan o2| ws} a3! a2
Carryover and cash-in 8 8 6 | 13 Noncumulative plan. 158 | 229 | 139} 121
Unused benefit lost go | se | 44 | 35
Data not available . 6 a) c) 1 After 3 years of service
‘Cumulative plan os | 12] 2e| ea
Carryover provisions Noncumulative plan . 219} 341} 193 | 149
Total 100 | 100 | 100 | 100 Alter 5 years of service
Cumulative plan .. os | 14] 01 | 86
Untimited accumulation ... 26 27 29 21 Noncumulative plan .. 28.3 43.0 27.0 18.5
Limit on total number of days After 10 years of service
accumulated . 73 | 72] 7 7 Cumulative plan . wos | 119) 97 | 94
Noncumulative plan .. 36.3 56.7 35.5 22.3
Under 10 days .. 4 5 3 5
10 days ... 6 3 7 8 After 18 years of service
11 - 19 days 4 2 6 5 Cumulative plan . to6 | 122] 101 | 92
20 days ... 2 1 2 2 Noncumulative plan .. 42.3 64.3 42.4 25.6
21 - 24 days 2 3 2 1
1 1 io) 1 After 20 years of service
® e - - Cumulative pian..... 109 | 124] 104 9.6
80 - 39 days . 42 8 | 12] 16 Noncumulative plan 465 | 694 | 472 | 286
40 - 49 days .. 4 4 3 4
50 days ... 1 1 1 2 Atter 25 years of service
51 - 6¢ days, 7 7 7 7 Cumulative plan .. 110] 125] 105 | 97
65 days 3 4 3 3 Noncumulative plan . sos | 755 | 522 | 312
66 79 days oe 4 5 4 3
80 - 89 days .. 1 2 1 1 After 30 years of service*
90 - 99 days - 3 4 4 2 Cumulative plan. 110 | 126 | 106} 07
400 - 109 days 1 1 1 2 Noncumulative pian 513 | 762 | 526 | 915
110 - 119 days () ro) - 1
130 ae. days .. 4 H 3 3 * Paid sick leave plans with a specified number of days available each
Rver 180 days 8 40 7 8 1 employees ether are granted a specific number of days atter comple-
Days not available .. 1 ie) o 2 tion of the indicated length of service, or accrue days during the next 12-
other 1 ila 1 month period. The total number of days are assumed available for use

Data not available ...

e

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

year.
‘Less than 0.5 percent.

* Carryover provisions vary by length of service.

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

24

immediately upon completion of the described length-of-service interval.
+ The average (mean) was virtually the same at longer years of service.

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



Table 90. Defined benefit pension plans:' Average replacement rates for specified final earnings and years of service for
retirement at age 65,’ medium and large private establishments, 1991

Years of plan participation”

Final annual earnings

10 15 20 25 30 35 40
Private pension only
$15,000 14.2 20.9 274 33.6 39.3 444 49.0
$26,000 12.0 17.6 22.9 278 92.5 367 40.2
$35,000 .. 112 163 214 26.2 30.8 34.7 37.9
$45,000 10.8 16.0 209 25.7 30.2 33.9 36.8
$55,000 ... 108 15.9 208 24.8 29.0 92.6 35.4
$65,000 10.8 15.9 20.4 24.7 29.1 32.7 35.3
Professional, technical,
and related
$15,000 13.0 19.1 24.8 30.2 35.3 39.8 43.7
$25,000 124 17.7 228 27.68 32.4 36.5 39.9
$35,000 119 173 22.6 278 32.8 36.9 40.0
$45,000 .. 11.9 17.6 23.4 28.4 33.4 37.5 40.5
$55,000 .. 124 17.9 * 23.5 27.8 32.6 36.6 39.5
$85,000 .. 12.4 18.3 22.9 28.2 33.3 37.4 40.3
Clerical and sales

$15,000 13.8 20.2 26.2 31.9 37.4 41.8 45.7
$25,000 126 18.3 23.5 28.4 33.0 37.4 40.2
$35,000 .. 12.2 17.6 22.8 278 32.6 36.6 39.4
$45,000 onenne 12.0 176 22.9 28.0 32.8 36.6 39.3
$58,000 enn 124 178 23.2 26.7 314 34.8 37.4
$65,000 123 18.0 22.0 26.9 317 36.4 38.0
Production and service

$15,000 .. 15.4 224 29.7 96.6 428 48.6 53.9
$25,000 WT 17.2 22.5 275 92.2 36.5 40.5
$36,000 . 10.3 15.1 198 24.3 28.6 32.4 35.8
$45,000 ... 96 144 186 22.8 26.8 30.3 33.3
$55,000 93 13.6 179 22.0 258 29.4 319
$65,000 .. 94 13.3 175 21.4 25.1 28.3 31.0

Combined private pension and primary’ Social Security benefit
All participants
$15,000 .. ant 52.5 63.8 748 85.0 92.4 96.6
$25,000 . 32.1 425 52.4 62.0 71.4 775 814
$35,000 .. 28.5 38.3 474 56.0 62.9 67.6 70.8
$45,000 .. 26.5 35.6 43.7 50.7 56.4 60.6 63.7
$55,000 ..... 24.4 32.7 40.2 45.6 50.8 54.9 877
$65,000 . 22.3 30.1 36.6 423 475 515 542
Professional, technical,
and related
$15,000 39.9 50.7 61.1 M12 141 87.5 914
$25,000 . 32.2 426 524 619 71.0 77.3 80.8
$35,000 .. 29.2 39.3 48.7 576 64.9 69.7 73.0
$45,000 27.5 37.2 45.9 53.4 59.6 642 67.3
$55,000 .. 257 34.8 43.0 48.7 54.3 56.9 618
$65,000 .. 23.8 32.5 39.3 45.8 51.7 56.2 59.4
Clerical and sales

$15,000 40.7 517 625 72.9 82.9 89.5 93.4
$25,000 .. 32.7 43.1 53.1 62.6 71.6 719 81.1
$35,000 .. 29.4 39.5 48.8 57.6 64.7 69.4 724
$45,000 27.6 37.2 45.7 53.0 59.0 63.4 66.1
$55,000 . 25.7 34.6 42.6 475 52.8 574 59.7
‘$65,000 23.8 32.3 38.4 44.5 50.1 54.3 56.8

See footnotes at end of table.

93



Table A2. 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, 1991

industry division’

Number of occupational quotes studied?

Number of establish-

ments studied Professional, techni- ; Production and
Total cal, and related | “lerical and sales service
All industries .. 2,144 1,248 216 537 495
Manufacturing . 540 35 1 16 18
Nonmanufacturing . 1,804 4.213 215 521 477
Mining 26 - - - -
Constructor 61 6 1 3 2
Transportation, communications,

‘electric, gas, and sanitary services 300 53 5 20 28
Wholesale trade 90 Ww - 3 8
Retail trade .. 293 398 1 261 136
Finance, insurance, and real estate . 246 37 1 21 15
Services .. 648 708 207 213 288

Estimated number of part-time workers within scope of survey
All industries .. 4,709,970 §91,910 1,791,623 2,326,436
Manufacturing .. 142,080 3,335 51,310 87,435,
Nonmanufacturing .. 4,567,889 588,575 1,740,313 2,239,001
Mining - - - -
Construction 13,870 1,205 9,355 3,309
Transportation, communications,

electric, gas, and sanitary services 184,198 3,469 45,439 105,291
Wholesale trade ... 27,919 - 6,690 21,229
Retail trade ... 2,091,454 2,501 1,136,448 952,505
Finance, insurance, and real estate . 84,723 776 75,472 8,475
Services .. se . 2,195,726 580,624 466,910 1,148,191

* As defined in the 1987 edition of the Standard Industrial Classifica-
tion Manual, U.S. Office of Management and Budget. Industry data are

‘sponse,

shown for informational purposes only and are subject to larger than nor-
mal sample error, See section on reliability of estimates,

® These figures refer to all respondents to the survey, whether or not

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

135

they provided data for alll items studied. See the section on survey re-



Participation requirements

Three-tenths of the employees with defined benefit pen-
sion plans had immediate coverage when they were hired
(table 101). Approximately one-fourth could participate
regardless of age but had to meet a service requirement,
seldom more than 1 year. The remaining employees gener-
ally could not enter the pension plan until they reached age
21 and completed 1 year of service; this was the most re-
strictive requirement permitted under the Internal Reve-

86

nue Code.* For 71 percent of employees with age or ser-
vice requirements for plan participation, computation of
pension benefits included service prior to formal entry into
the plan.

43 However, some plans, such as those in religious institutions, are ex-
empt from certain restrictions in the Internal Revenue Code and may re-
quire employees to meet greater age or length-of-service levels before cov-

erage begins.



Table 2. Other benefits: Percent of full-time employees
eligible for specified benefits, medium and large private

establishments, 1991

Profes-
sional, | Clerical | Produc-
techni | “and | tion and
Benetit em Jal, and| sales | service
Ployees | related | employ- | employ-
employ- ees ees
ees
Income continuation plans:
Severance pay .. 41 | ss | 48 | 30
Supplemental unemployment
benefits 4 2 2 7
Transportation benefits:
Free or subsidized employ
parking . vwewene 88 | 86 | 85 | 92
Subsidized commuting 5 7 7 4
Job-related travel accidant
insurance .. . a2 | ss | 47 | a2
Gifts and cash bonuses:
Gifts .. 26 | 2 | 2 | 23
Nonproduction bonuses . 35; 33 | 36 | 35
Financial and legal services:
Financial counseling 4 | t | ts | 13
Prepaid legal services 6 3 5 8
Family benefits:
Employer assistance for child
care 8 W 9 5
Adoption financial assistance a | i 8 4
Eldercare .. oe} ou 12 6
Long-term care insurance 4 6 5 2
Health promotion programs:
In-house infirmary 3a | 42 | 27 | 33
Wellness programs ween 95 | 47 | 34 | 28
Employee assistance programs .| 56 | 64 | 56 | 51
Miscellaneous benefits:
Employee discounts .. | 42} 46 | 55 | 48
Employer-subsidized recreation
facilities . 2s | 34 | 25 | 29
Subsidized meals 22 | 32 | 2 | 417
Sabbatical leave 10 | 15 7 8
Relocation allowance 31 50 30 21
Education assistance:
Job related .. v2 | e7 | 73 | 64
Not job related 23 | a0 | 24 | 19



Table 89. Defined benefit pension plans:' Percent of full-time participants by maximum benefit provisions,’ medium and large

private establishments, 1991

Type of benefit formula’

vision
Maximum benefit provisio Terminall Career | Dollar

Total’ | earnings | earnings} amount

Type of benefit formula’

Maximum benefit provision Terminal| Career | Dollar

Total*
otal earnings  earnings| amount

All participants

Total 100 100 100 100

Subject to maximum .. .| 39 55 13 24
Limit on years of credited service 37 52 13 22
Less than 20 wssnmenunnnsn 1 © 6 3
ts 1 Q = 1
3 2 iv) 4
iv) iv) - i)
W 16 1 8
2 1 7 -
12 20 3 3
is) is) iv) -
7 1 ° 3
is) €) - iv)
1 0) 1 1
4 5 1 3
Not subject to maximum .. 6 45 87 76

Professional, technical, and related

Total 100 100 100 100

Subject to maximum “| 44 57 16 14
Limit on years of credited service.) 43 54 16 14
Less than 20 ... 1 a) - 4

iu) i) : i)

2 3 i) is)

14 19 2 6

3 2 9 -

18 2t 5 2

rv) iy) iv) -

7 9 - 2

© } - }

iv iv) - i)

3 3 1 1

Not subject to MAXIMUM ncccncnnneee] — 56 43 84 86

Clerical and sales

Total

[Subject to maximum .. . 49 66 10 32
Limit on years of credited service .... 47 63 9 32
Less than 20 .. 2 1 6

20 0) ) - 1
25 1 1 ) 2

26-2! 1 1 - -

30. 12 17 1 W

31-34 3 2 7 -
35. 17 24 1 10

36-39 i) i) () -
40 10 15 - 2

41-44 io) 1 - (e)

45... 1 ie) 1 @

Other maxirum® 3 4 1 Oo
INot subject to maximum ...... 51 34 90 68

Production and service

Total 100 | 100 | 100 | 100
[Subject to maximum .. vn] 81 46 14 26
Limit on years of credited service ... 28 At 13 22
Less than 20 ) ie} O 1
20... 1 1 - 2
25 3 2 - 6

26-29 6 - = i)
30 9 14 i) 8
31-34. 1 i) 6 -
36... 8 15 4 2

36-39 . () i) - -
40 5 9 1 3

41-44 a) Q - 0)

46... 1 0 2 1
Other maximum? 5 6 1 4
Not subject to maximum... 69 54 86 75

* Excludes supplemental pension plans.

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

* Ifa plan contained more than one benefit formula based on terminal
earnings, career earnings, or dollar amounts, each formula containing a
maximum benefit provision was tabulated. Participants were included as
under formulas without maximum benefit provisions only if none of the for-
mulas contained a maximum,

* Includes plans with benefit formulas based on a percent of employee
‘or employer contributions and cash account plans.

* Less than 0.5 percent.

© The benefit yielded under the formula is limited to a percent of termi-
nal earings, sometimes coordinated with primary Social Security pay-
ments, or to a flat dollar amount,

NOTE: Sums of individual items may not equal totals because more
than one benefit formula within a plan may have a maximum benefit provi-
sion. Also, some benefit formulas contain a fimit on years of credited
service and another maximum provision. Where applicable, dash indicates
no. employees in this category.

92



Table 93. Defined benefit pension plans:’ Percent of full-time participants by minimum age and associated service
requirements for early retirement,’ medium and large private establishments, 1991

Clerical | Produe- RrOfes- | Clerical | Produc-
and | tion and ey] and | tion and
Age and service requirement’ | /M Par. |tecinical| sales | service || Age and service requirement’ All par- |technical,| coies | service
icipants | and relat- ticipants {and relat-|
ed par- | Patici | partici ed par | Partick | partici- |
ticpants | Pants | pants ticipants | Pants | Pants :
Total 100 400 100 100 i
‘Age 55—Continued
Participants in plans permitting 20 years’ service 1 1 1 1
early retirement .... se 98 97 98 98 26 years’ service ... “ - 1 1 |
No age requirement .... 7 5 3 10 |) Age 56-59 1 - 1 1
Fewer than 30 years’ 15 years’ service o) - ) 1
service iv) te) 1 1 20 years’ service Oo - iv) 1 i
30 years’ service .. 3 9 i
More than 30 years 6 5 2 8 i
SONVICE ceeenrnnnseiinnnenel — re) O i) 9) (y 19) “ !
1-5 years' service .. 1 1 oO 1 |
Less than ag@ 88 nce 8 8 12 7 10 years’ service . 4 3 1 5 i
No service requirement® 1 1 2 1 15 Years’ SENVICE sinner 1 ) 1 2 t
Less than 20 years’ .
service . 3 3 4 2 || Age 62... 2 “ V) 3 |
20 or more years’ service . 4 4 7 4 10 years’ service 2 0 ) 3 i
Age 55 .. . 68 75, 63 ‘Sum of age plus service” 6 10 5 5 |
No service requirement? .... 5 6 5 Equals 70 or fewer ......... 2 3 2 1 |
1-4 years’ service . 1 1 2 Equals 75 6... 0 1 QO )
5 years’ service 7 20 13 Equals 76-79 .. 1 1 oO 1 i
6-9 years’ service 1 io) 1 Equals 80 2 3 2 1 i
140 years’ service 32 35 30 Equals 85 - 1 2 1 1 i
11-14 years’ service ... iv} “ ) Equais 90 or more ) 1 - 1
15 years’ service .. 10 12 i
Participants in plans without early
retirement .. on 2 3 2 2
* Excludes supplemental pension plans. * Where no service requirement is specified for early retirement, the
* Early retirement is defined as the point at which a worker could re- service required for full vesting, usually 5 years, appties. i
tire and immediately receive accrued benefits based on service and © In most plans, participants must also satisfy a minimum age or serv-
‘earnings but reduced for each year prior to normal retirement age. ice requirement. i
* if a plan had alternative age and service requirements, the earliest j
age and associated service were tabulated; if one alternative did not NOTE: Because of rounding, sums of individual items may not equal i
specify an age, it was the requirement tabulated. totals. Where applicable, dash indicates no employees in this category. i

“Less than 0.5 percent.

97



Table 109. Savings and thrift plans: Percent of full-time participants by provision for employer matching contributions,
medium and farge private establishments, 1991

Matching percentage*

Employee earings to be matched’ | Total ‘ 5
25 percent | 50 percent | 75 percent |100 percent! ore ee aries with verore Other?
All participants
100 7 32 3 15 16 6 14 6
2 = 1 - 1 i) - iv) oO
7 ‘) 1 - 4 1 iv) 2 =
13 2 5 iW 1 oO 2 1 1
7 2 3 ) 3 5 ia) 3 1
43 2 16 1 4 7 7 3
3 - 2 1 io) - - 1 ivi
5 1 2 1 6 1 1 i) 0)
10 percent .. 4 iv) 1 ie) ) 2 - iv (9)
11 percent - - - - - - - -
12 percent .. 0 - - - - ¢ - - -
Greater than 12 percent 2 oO 1 - iy) 19) 1 iv] 9)
Other’. 3 1 0 - 2 0 - 6 -
Professional, technical, and
related
Total... 100 9 29 4 16 20 4 13 6
Up to the first:
2 percent 2 - 1 - 1 ru} - - -
8 percent 8 iv) 1 - 3 1 O 2 -
4 percent "1 4 3 - 1 1 1 1 iV)
5 percent 16 1 1 oO 4 7 iv) 2 )
6 percent ... 44 2 15 2 5 6 2 8 4
7 percent 4 - 2 1 o - - 1 oO
8 percent 7 2 3 1 ) 1 a) io) O
9 percent - - - - - - > - -
10 percent 5 iV) 1 (9) 0) 3 - o Vv]
11 percent... - - - - - - - - -
12 percent .. iv) - - - - iv] - - =
Greater than 12 percent .. 1 0) 1 - “) i) - 0) )
Othe 2 is) i) - 1 oO - - -
Clerical and
Total 100 4 35 1 16 15 6 16 6
Up to the first
2 percent 1 - ) - iy) rv) - “) )
3 percent "1 0 1 - 7 iy) - 2 -
4 percent 14 1 6 - 1 1 1 1 3
5 percent 7 1 3 “ 3 4 iv) 5 -
6 percent 45 2 17 iv) 3 9 4 6 3
7 percent 3 - 2 ) iv) - - 1 -
8 percent 4 0 3 y 0 oO 1 - oO
9 percent - - - - - - - - -
10 percent 3 ia) 1 - ia) 1 - 2) -
11 percent........ - - - - - - - - -
12 percent - - - - - - - - -
Greater than 12 percent . 1 - 1 - 0) ) 0) 0) 0
Other’ ....... . 2 - vl - 1 oO a ra -

See footnotes at end of table.

113



Table 57. Medical care benefits’: Percent of full-time participants by type of plan and

coverage for selected special benefits, me

im and large private establishments, 1991

Health maintenance | Non-health maintenance
Benefit item All plans organizations organizations
All participants

Hearing care? sess 24 90 10
Routine physical examinations 30 96 16
Well-baby care 36 98 24
Immunization and inoculation ... 30 96 7
Preventive dental care” 2 8 oO

Vision examinations on! 14 67 4

Professional, technical, and
related
Hearing care® 25 ot 10
Routine physical examinations 33 98 19
Well-baby care 42 99 29
Immunization and inoculation 35 96 24
Preventive dental care. 2 " 1
Vision examinations only’ ... 16 66 5
Clerical and sales

Hearing care? 22 86 7
Routine physical examinations .. 34 94 19
Well-baby care 40 95 27
Immunization and inoculation 34 95 20
Preventive dental care 3 12 “0

Vision examinations only* 18 70 5

Production and service

Hearing care* 24 92 12
Routine physical examinations .. 25 97 13
Well-baby 08 een 30 99 19
Immunization and inoculation 26 97 14
Preventive dental care® 1 3 “

Vision examinations only? 12 65 2

Plans providing services or payments for serv- and X-rays.

ices rendered in the hospital or by a physician. Ex-
cludes plans that provided only prescription drug cov-

erage.

?' Plans provide, as a minimum, coverage for hear-

ing examination expenses.

Includes plans that only provide examinations

* Less than 0.5 percent.

* Includes plans that provide only examinations.

NOTE: Where applicable, dash indicates no em-

ployees in this category.



Table 64. Dental care benefits: Percent of full-time participants in contributory stand-alone plans‘ by type and amount of
employee contribution, medium and large private establishments, 1991

; Employee Family i Empioyee Family
Type and amount of contribution coverage coverage? Type and amount of contribution coverage coverage?
Ail participants Clerical and sales
TOtad een 100 100 Total 100 100
Flat monthly amount 56 64 |Flat- monthly amount 62 65
Less than $2.00 6 ) Less than $2.00 .. 5 1
$2,00-84,99 .. 27 4 $2.00-$4.9 34 3
$5.00-$9.99 .. 16 7 $5.00-89.9: 7 21
$10,00-§14.99 3 14 $10.00-$14.99 3 18
$15.00-$19.99 1 12 $15.00-819.99 1 8
$20.00-$24.99 10) 5 $20.00-$24.99 ....... a) 6
$25.00 or greater. ro) 10 $25.00 or greater... ie) 8
Composite rate’ .. 2 1 Composite rate’ .. “4 1
Amount varies by employee® 33 26 |Amount varies by employee* 29 24
Amount varies by earnings ..... 2 1 ‘Amount varies by earnings is) i}
Not determinable enon 9 9 Not determinable .. 9 "1
Professional, technical, and related Production and service
Total 100 100 Total ee 100 400
Flat monthly amount 49 61 Fiat monthly amount .. 58 67
Less than $2.00 .. 6 1 Less than $2.00 7 ro)
$2.00-$4,99 18 3 $2.00-$4,99 29 6
$5.00-$9.99 .. 19 14 $5.00-$9.99 14 7
$10,00-$14.99 4 12 $10.00-$14.99 ..... 3 14
$15,00-$19.99 1 14 $15,00-$19.99 3 14
$20.00-$24.99 ) 4 $20.00-$24.99 .. a) 4
$25.00 or greater i) "1 $25.00 or greater - 10
Composite rate* 1 1 Composite rate‘ 3 2
Amount varies by employee’ ... 41 30 ‘Amount varies by employee* 29 22
‘Amount varies by earnings... 1 1 Amount varies by earnings ..... 3 2
Not determinable ... 9 8 INot determinable 9 8

area, for example, health care and sickness and accident insurance. Cost
data for individual plans cannot be determined.

* Amount varies by options selected under a “cafeteria plan” or bal-
ance of employer-sponsored reimbursement account.

* Plans that exclusively provide dental benefits.

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.

® Less than 0.5 percent.

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

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

66



Table 9. Paid vacations: Percent of full-time employees by amount of paid vacation days provided for selected periods of
service, medium and large private establishments, 1991

profes: Glrcl | Produ, profes: Geral | Produc,
ay{ and | tion anc | and | tion ar
Vacation policy arms jteomnical! sates | service Vacation policy avec, (ecpmical| sates | service
Ploy ‘od em. | &MPloy- | employ- Ploy od ome | employ- | employ-
ployess | 28 ees ployees | £25 ees
Total ..... 100 100 100 100
Aiter 5 years of
Provided paid vacations’ 96 97 98 95 service:—Continued
Over 15 and under 20
Vacation days by minimum days . 2 4 2 2
length-of-service require- 20 days . 7 14 6 3
ment? ‘Over 20 and under 25
days. 2 3 1 1
Atter 1 year of service: 25 days 7 1 1 iv) fv}
Under § days ) i) ) 1 Over 25 and under 3
5 days .. 7 31 7 24 48 days .. 1 3 1 eQ
Over 5 and under 10 30 days and over .. 1 1 ¢) 0)
days .. 1 1 1 1
10 days 48 58 61 35 Aiter 10 years of service:
Over 10 and under 15 Under 5 days ¢ - fe} i?)
days... | 3 5 2 2 5 days 1 fe) 1 2
15 days .. ; 6 12 5 3 Over 5 and under 10
Over 15 and under 20 days . 0 ~ ) 0)
days .. 1 1 1 1 10 days 7 2 5 4
20 days 1 4 1 7) Over 10 and under 15
Over 20 2 ) 1 3
days 2 3 1 1 52 42 58 55
25 days and over 1 2 1 1 Over 15 and under 20
days 5 6 4 4
After 3 years of service: 20 3t 20 14
Under 5 days 0) - ia) is)
5 days .... 5 ) 2 9 3 5 4 1
‘Over § and under 10 25 days see 2 4 1 1
days .. 2 0) 1 4 Over 25 and under 30
10 days .. | 67 87 76 67 days . 1 2 1 1
‘Over 10 and under 15 30 days ... 1 1 i?) 1
5 7 4 5 ‘Over 30 days 1 3 1 1
10 17 10 6
Over-15 and under 20 After 15 years of
days 1 2 1 1 service:
20 days 2 6 1 0 Under 5 days ie) - °) 0)
‘Over 20 and under 25 5 days . 1 0 1 2
days. 2 4 1 1 Over 5 and under 10
25 days and over 1 3 1 1 day oy - Q i)
10 days .. 5 2 3 7
After 5 years of Over 10 and under 15
service: days ... iv) iv) ia) iv)
Under 5 days a) - (o) ) 15 days 23 14 18 30
5 days .. ;: 2 °) 1 3 Over 15 and under 20
Over 5 and under 10 ssssseteseee 4 5 4 3
days .. ses 1 0) Q 1 | 5t 56 62 43
10 days 39 21 34 5 Over 20 and under 25
Over 10 and under 15 days . 4 6 4 3
days 6 8 6 5 25 days 3 6 2 2
15 days ... 36 4 45 28 Over 25
1 2 1 1
1 1 10) 1
2 4 2 1



Table 90. Defined benefit pension plan:

Average replacement rates for specified final earnings and years of service for

retirement at age 65,’ medium and large private establishments, 1991—Continued

Years of plan participation”

Final annual earnings
10 15 20

25 30 35 40

Combined private pension and primary Social Security benefit

Production and service

$15,000 .... 42.0 54.0 66.0
$25,000 a8 42.0 52.4
$35,000 27.6 37.0 45.8
25.2 33.7 414
22.8 30.5 37.3
20.6 27.6 33.9

77.6 88.6 96.2 101.6
618 70.8 773 81.4
54.4 60.7 65.3 68.7
47.9 53.0 57.0 60.1
42.8 47.6 51.3 54.2
39.1 43.6 47.2 49.8

* Excludes supplemental pension plans.

? Retirement annuity as a percent of earnings in the final year of work.
The maximum pension available to an employee, not reduced for early
retirement or joint-and-survivor annuity, was calculated under each pension
plan using the earings and service assumptions shown. This benefit
level was then expressed as a percent of earnings in the last year of
employment.

These calculations assume employees retired on January 1, 1991, and
final earnings are for 1990. Earnings histories, necessary for applying the
pension formulas, were constructed for each final earnings level based on
data provided by the Social Security Administration.

94

For pension formulas that are integrated with Social Security and for
computation of Social Security benefits, the worker is assumed: to have
retired at age 65 after having paid into Social Security for the same
number of years as years of participation used for pension calculations.
Computations exclude participants in cash account pension plans or plans
with benefits based on career contributions.

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

* Excludes benefits for spouses and other dependents.



Chapter 3. Disability Benefits

This chapter discusses three types of disability benefits:
Sick leave, sickness and accident insurance, and long-term
disability insurance.

e Paid sick leave and sickness and accident insurance
protect workers against loss of income during tem-
porary absences from work due to illness or acci-
dent.

e During more extended periods of disability, work-
ers’ incomes may be continued through long-term
disability insurance plans.

Short-term disability protection, through sick leave,
sickness and accident insurance, or both, was provided to
86 percent of all full-time employees in medium and large
establishments in 1991 (table 19). Sick leave usually pro-
vides 100 percent of the worker’s normal earnings, where-
as sickness and accident insurance usually replaces 50 to
67 percent of pay.

Sick leave was provided to two-thirds of the full-time
employees and sickness and accident insurance to just un-
der one-half of the full-time workers. One-fourth of the
workers had sick leave plans coordinated with sickness
and accident insurance. Coordination can take two forms:
Starting insurance benefits after sick leave pay has ended,
or paying both benefits concurrently. When payments are
made from both sources, sick leave pay is reduced by the
amount of the insurance benefits so that the total benefit
does not exceed full salary.

Regardless of the method of coordination, employers of-
fering sickness and accident insurance tended to allow
fewer sick leave days than those without such insurance.
At 5 years of service, for example, annual sick leave plans
coordinated with insurance granted an average of 11.2
days at full pay. Plans not coordinated with insurance pro-
vided 23.7 days.

In 1991, long-term disability insurance (LTD), which
typically pays 60 percent of earnings, was made available
to two-fifths of the full-time employees in medium and
large establishments. LTD insurance payments usually
begin after 3 or 6 months of disability and continue until
retirement age or for a specified number of months, de-
pending on the worker’s age at the time of disability.

Paid sick leave and LTD insurance were more prevalent
among white-collar workers, and sickness and accident in-
surance was more common among blue-collar workers.

16

Paid sick leave

Of the employees covered by paid sick leave plans, 76
percent were allowed a fixed number of days per year (an-
nual sick leave plans). Fifteen percent of the participants
received sick leave benefits for each illness (“per disabil-
ity” plans). Most of the remainder were covered by both
annual and “per disability” benefits (tables 20-27).

Employees having annual sick leave plans averaged 12.4
days after 1 year of service, 18.8 days after 5 years, 26.0
days after 15 years, and 30.3 days after 25 years. Nearly all
workers covered by annual plans received full pay while
they were sick and were not subject to a waiting period be-
fore benefits began.

About half of the employees covered by annual sick
leave plans were allowed to carry over and accumulate un-
used sick leave from year to year (cumulative plans). Ap-
proximately three-fourths of the employees in cumulative
plans had limits on the amount of sick leave that could be
carried over to the next year. The remaining workers in cu-
mulative plans were allowed to accumulate an unlimited
amount of sick leave. ,

On average, noncumulative plans provided a greater
number of days per year than cumulative plans. After 1
year of service, for example, noncumulative plans pro-
vided 15.8 days per year, and cumulative plans provided
9.2 days per year. This difference increased at longer years
of service. After 25 years of service, for example, workers
in noncumulative plans averaged 50.9 days per year, but
workers in cumulative plans averaged only 11.0 days per
year.

Workers were often not immediately eligible for sick
leave benefits. Slightly over one-half of employees had to
meet Jength-of-service requirements before qualifying for
sick leave benefits.

Although sick leave is commonly thought of as replac-
ing lost income while an employee is ill or injured, the sur-
vey found that a majority of workers could use their bene-
fits for other reasons. For example, using sick leave for a
doctor’s appointment (available to 55 percent of annual
participants) or to take care of a sick child (36 percent)
were the most frequently observed provisions.

Sickness and accident insurance

Sickness and accident insurance plans covered 45 per-
cent of full-time employees in medium and large establish-
ments, protecting them against income losses due to short-
term disabilities. Three-fourths of the participants had



applicable, went toward dental coverage. Employee con-
tribution data were examined in stand-alone dental plans,
that is, those offered separately from medical plans. When
such plans required an employee contribution, that contri-
bution was typically under $10 per month for individual
coverage and under $20 per month for family coverage.

Nine-tenths of participants covered by dental care plans
received benefits through a fee-for-service plan, which re-
imburses patients or providers only after services are re-
ceived (table 40). Such plans were most commonly self-in-
sured or obtained through a commercial insurer. The re-
maining participants had their dental benefits provided
through either a health maintenance organization or a pre-
ferred provider organization.

Dental plans cover preventive and restorative services
almost universally, and seven-tenths of participants were
in plans that also covered orthodontic expenses, at least for
children. Preventive care typically includes dental exami-
nations, prophylaxis (cleaning), and x rays. Restorative
procedures include fillings, periodontal care, endodontic
care, prosthetics, and crowns.”>

Dental payments were generally based on a proportion
of the usual, customary, and reasonable charge for a proce-
dure. The proportion covered by a plan often depended on
the type of procedure performed. Less costly procedures
such as examinations and x rays were usually covered at
100 percent. Fillings, surgery, endodontics, and periodon-
tics were more likely to be covered at 80 percent. The most
expensive procedures—inlays, crowns, prosthetics, and
orthodontia—were often covered at 50 percent of the usu-
al, customary, and reasonable charge.

Less than 1 out of 5 dental plan participants were offered
reimbursement based on a schedule of cash allowances for
restorative services, such as fillings, crowns, and endodon-
tics. In this type of arrangement, each procedure is subject
to a specified maximum dollar amount that the plan will
pay to the participant or the dentist. Orthodontic care was
rarely subject to this type of schedule.

Incentive schedules were seldom found in the survey.
Under this arrangement, the percent of dental expenses
paid by the plan increases each year if the participant regu-
larly gets examinations by a dentist.

Finally, a small number of participants were in plans re-
quiring a copayment, after which benefits were paid in full.
Copayments were commonly $5 or $10 per procedure for
preventive care, though higher copayments often applied
to major dental services.

Sixty-four percent of dental participants were in plans
that specified a deductible amount before any benefits
were paid by the plan. The most frequently observed de-
ductible was $25 or $50 per year. However, a few plans re-

?5 Periodontal care is the treatment of tissues and bones supporting the
teeth. Endodontics involves the treatment of the tooth pulp, such as root
canal work. Prosthetics deals with the construction and fitting of bridges
and dentures.

45

quired the participant to pay a one-time deductible (usual-
ly $50) rather than a yearly deductible.

Plans that limited the amount of payment each year by
specifying an annual maximum benefit covered 85 percent
of dental plan participants. The most common limit was
$1,000 per year; the average annual maximum was $1,168.
Among participants in plans with orthodontic services, 83
percent had orthodontic benefits subject to a separate life-
time maximum. These maximums commonly ranged be-
tween $1,000 and $1,500. In 1991, the average lifetime
orthodontic maximum was $1,096.

Preauthorization clauses require participants to obtain
authorization from the plan before undergoing expensive
treatment. Two-thirds of dental participants were in plans
that used this cost containment technique. Commonly,
procedures costing $200 or more were subject to advance
authorization.”

Finally, a small percentage of participants were covered
by plans with only preventive dental care, which includes
dental examinations, prophylaxis (cleaning), and x rays
(table 57). These participants almost always had their
benefits provided under HMO’s.

Vision Care

In 1991, vision care coverage was available to 23 percent
of full-time employees in medium and large private estab-
lishments.** Eighty-one percent of participants covered by
vision care provisions received benefits through a fee-for-
service plan; 11 percent were provided benefits through an
HMO; and the remainder through a PPO (table 40).

All participants eligible for vision benefits had coverage
for eyeglasses (table 70). With few exceptions, these partic-
ipants were also covered for eye examinations. Seven out
of 8 vision care participants had coverage for contact
lenses.

Participants with vision care coverage generally had
limits placed on their benefits. Typically, vision care par-
ticipants had coverage for eyeglasses and contact lenses
subject to a scheduled dollar allowance per benefit. Eye ex-
aminations were commonly subject to either a dollar maxi-
mum per visit, or the participant was required to pay a
small copayment per visit. For eyeware, other plans re-
quired an employee copayment or offered a discount on
the purchase of eyeglasses and contact lenses.

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

27 For tabulation purposes, plans that provided only preventive dental
care benefits were not included as having full dental care coverage. Data
for preventive dental care benefits appear in table 57.

28 To count as having vision care coverage, a plan must cover eyeware
(eyeglasses and/or contact lenses). If a plan provided only eye examina-
tions, for tabulation purposes, the plan was not considered as providing
vision care coverage. In 1989, the most recent survey of medium and large
establishments, plans that had only coverage for eye examinations were
considered as providing vision care. In that year, 33 percent of full-time
employees were provided vision care coverage.



Table 87. Defined benefit pension plans:' Percent of full-time pal

type and amount of formula, medium and large private establishments, 1991

pants in plans with dollar amount benefit formulas by

Provision for maximum Provision for maximum
benefit® benefit®
‘Type and amount of formula® Total Type and amount of formula? Total
Subject to | Not subject! Subject to | Not subject
maximum |to maxinuny| maximum |to maximum
All participants Production and service
Total... 100 400 100 i 100 100 100
Flat monthly amount per year of Flat monthly amount per year of
servi : 95 rT 97 service .... 96 94 96
Less than $5.00 1 2 - Less than $5.00 .. 1 3 -
$5.00-$9.99 .... 5 13 3 $5.00-$9,99 .. 6 15 3
$10.00-$14.99 8 8 8 $10.00-$14.99 .. 8 8 9
$15.00-$19.99 26 22 27 $15.00-$19.99 .. a1 23 20
$20.00-$24.99 .. 23 W 27 $20.00-$24.99 26 8 32
$25.00-$29.99 7 12 19 $25.00-$29.99 . 19 14 20
$30.00-$34.99 9 7 9 $30.00-$34.99 8 8 8
$35.00-839.99 i) 1 O $35.00-$39.99 .. o) i )
$40.00-$44,99 1 ) 1 $40.00-$44,99 1 a) 1
$45.00-$49.99 is) - i) $45.00-$49.99 iv) - QO
$50.00-$54.99 .. 1 6 - $50.00-$54.9: 2 6 -
$55,00-$60.00 . 4 9 3 $55,00-$60.00 5 10 3
‘Amount per year varies by service ... 3 9 1 |/Amount per year varies by service ... 2 6 )
‘Amount per year varies by earnings 2 - 3 ||Amount per year varies by earnings 2 - 3
Flat monthly benefit varies by Flat monthly benefit varies by
service ... ° - ie) service ... ia) ~ a)

* Excludes supplemental pension plans.

* Excludes plans with dollar amount formulas that serve as a mini-

mum benefit alternative to a percent of earnings formula.

+ These maximum provisions are independent of Internal Revenue

Code ceilings on pensions payable from defined benefit plans.

* Less than 0.5 percent.

90

NOTE: Data were insufficient to show professional, technical, and re-
lated workers and clerical and sales workers separately. Because of
rounding, sums of individual items may not equal totals. Where applica-
ble, dash indicates no employees in this category.



Table 28. Sickness and accident insurance: Percent of full-time participants by type and duration of payments, medium and
large private establishments, 1991—Continued

Type of payment

Total

Maximum weeks of coverage

Less than
13

14-25

26

27-51

52

Varies by

Over 52 s
service

Clerical and sales—Continued

$180-$199
$200-$219
$220 or more ..

Weekly dollar benefit varies
By earnings ....
By service or length of disability

Other .

Data not availabie

Production and
service

All types

Fixed percent of earnings

Fixed percent of earings
Less than 50

Percent of earnings varies
By service

By length of disability .
By both service and langth of
disability.

By earnings

Fixed weekly dollar benefit
Less than $60 ..
$60-$79
$80-$99
$100-$119
$120-$139
$140-$159
$160-$179
$180-$199
$200-$219
$220 or mor

Weekly dollar benefit varies
By earnings ... .
By service or length of disability

Other

3 cc
awe

CANARD

nol

“

rrrreteenne

6
0
0
0
0

0)

poss

~~

QO

(| 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.

28



Table 123. Other benefits: Percent of part-time employees
eligible for specified benefits, medium and large private

establishments, 1991

Profes-
sional, | Clerical | Produc-
techni- and tion and
Benefit AN em: |cal, and} sales | service
Ployees | retated | employ- | employ-
employ-| ees | ees
ees
Income continuation plans:
‘Severance pay 7 13 | 13 | 20 8
‘Supplemental unemployment
benefits 2 1 1 3
Transportation benefits:
Free or subsidized employee
parking 84 86 84 83
Subsidized commuting... 4 8 2 4
Job-related travel accident
insurance 18 7 24 13
Gifts and cash bonuses:
Gifts ... 1s | at we | 12
Nonproduction bonuses .. 19 14 23 16
Financial and legal services:
Financial COUNSIIN vanimrronnenl 8 efon 4
Prepaid legal services 2 0) 3 2
Family benefits:
Employer assistance for child
care . 5 12 8 4
Adoption financial assistance ....| 1 1 2 1
Eldercare ...... ws 4 7 6 2
Long-term care insurance 1 4 Oo 1
Health promotion programs:
In-house infirmary "1 43 7 6
Wellness programs ssn ie | 35 | 18 | 10
Employee assistance programs | 31 51 | 36 | 22
Miscellaneous benefit
Employee discounts 50 48 62 a
Employer-subsidized recreation
facilities 13, 31 14 8
Subsidized meals .. 20 | 51 2 | 18
Sabbatical leave 3 12 3 1
Relocation allowance»... 5 7 6 5
Education assistance:
Job related 31 s3 | 34 | 23
Not job related 6 | 10 7 3

* Less than 0.5 percent.

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

128



Table 9. Paid vacations: Percent of full-time employees by amount of paid vacation days provided for selected periods of

service, medium and large private estal

hments, 1991—Continued

profes: Glricl | Produ. Poles Clerical | Produc,
al. | al jon an be] an ion ani
Vacation policy aiees (eer net| Sales | service Vacation policy siete leat raat,| Sales | service
Pron Od em | employ- | employ- Ploy Td ame | employ: | employ-
ployees | °° ees ployees | °°S ees
After 20 years of service: After 25 years of
Under 5 days i) - 0 ra) service:—Continued
BAYS nnn 1 a 1 2 ‘Over 20 and under 25
Over 5 and under 10 days .. 3 5 2 1
days ... i) - 6 O) 25 days 29 33 30 a7
10 days .. 4 2 3 7 Over 25 and under 30
Over 10 and under 15 days .. 3 3 4 3
e ia) @ ° 30 days 5 5 3 6
12 6 10 16 Over 30 days 3 5 2 2
days ... 1 1 1 1 After 30 years of servicet
20 days 7 . 48 48 58 43 Under 5 days 8 - ea) Q
Over 20 and under 25 5 days 1 e) 1 2
days 4 7 4 3 Over § and under 10
25 days “| 18 23 16 7 ) - )
Over 25 and under 30 2 6
days | 3 3 3 2 Over 10 and under 15
30 days 1 1 ) 1 days . a) a) ie) (a)
Over 30 days 2 5 2 1 15 days abl 6 14
Over 15 and under 20
Aiter 25 years of days .. 1 1 (e} 1
service: 20 days 34 36 a4 29
Under 5 days o) - 0) % Over 20 and under 25
5 days 1 () 1 2 2 5 1
Over 5 26 28 27 24
days .. (a) - (7) 9) ‘Over 25 and under 30
10 days 4 2 3 AYE oosne 3 3 4 3
‘Over 10 and under 15 80 days wn. 9 10 7 10
| @ a) o) i) Over 30 days: 4 6 3 3
W 6 9 14 7
|Vacation schedule not available... (°) e) (a) el
4 1 e 1
35 37 42 31 ||Not provided paid vacations...) 4 3 2 5

7 Employees receiving no paid vacations in their early years of service
are included in the overall percentage of workers provided paid vaca-
tions; however, they are disregarded in computing the distributions by
fength 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 com-
pletion of the indicated length of service, or accrue days during the next
42 month period. The total number of days are assumed available for

use immediately upon completion of the described tength-of-service in-
terval.

7 Less than 0.5 percent.

* 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.


Table 52. ‘Medical care benefits: Percent of full-time participants in plans with mental health benefits by extent of
benefits, medium and large private establishments, 1991

i Professional, technical, Clerical and sales Production
All participants and related participants participants and service participants
Coverage limitation
Hospital | Outpatient | Hospital | Outpatient | Hospital | Outpatient | Hospital | Outpatient
care’ care® care! care” care’ care* care’ care®
Total 100 400 100 100 100 100 100 100
With coverage .. seven 99 98 99 97 98 97 99 98
Covered the same as other
illnesses 18 2 18 2 15 2 19 3
Subject to separate fimitations® ... 81 95 at 95 83 95 80 95
Limit 09 day8 oer 54 35 55 35 57 36 51 356
Per year .. 45 35 45 33 49 95 42 35
Per confinement 9 1 10 1 8 1 9 6
Per lifetime 2 0) 2 1) 2 ) 3 0
Limit on num
treatments ... 1 oO 10) 10) 19) iv) 1 rv)
Limit on dollars 39 68 36 66 44 67 39 70
Per day ... 1 21 1 ai 1 18 1 24
Per year .. 9 48 8 47 9 47 10 48
Per lifetime 33 32 32 31 38 36 32 30
Per other peri 1 i) 1 6) 1 ro) 1 1
Coinsurance limit 10 56 9 50 1 54 10 61
50 percent . 3 42 2 36 3 4 4 46
Other* . 7 14 7 14 8 14 6 14
Ceiling on out-of-pocket
expenses does not apply... 16 39 18 38 20 40 15 40
Separate copayment or
deductible ... 3 12 3 14 4 15 2 9
Other limitation: 1 1 1 ro) 1 1 1 2
Without coverage .. 1 2 1 3 2 3 1 2
+ Excludes doctor's charges in the hospital the sum of the individual items because many plans had more than
* Includes treatment in one or more of the following: Outpatient de- one type of limitation on mental health coverage.
partment of a hospital, residential treatment center, organized out: “ Less than 0.5 percent.
patient clinic, day-night treatment center, or doctor's office. If benefits * Includes plans with reduced coinsurance other than 50 percent
differed by location of treatment, doctor's office care was tabulated. and plans where the rate of reimbursement varied during the treatment

3 Separate limitations indicate that mental health care benefits are —_period,
more restrictive than benefits for other treatments, For example, if a
pian {imits inpatient mental health care to 30 days per year, but the NOTE: Because of rounding, sums of individual items may not equal
limit on inpatient care for any other type of illness is greater than 30 totals. Where applicable, dash indicates no employees in this cate-
days per year, that plan contains separate limits. The total is less than gory.

Table 53, Medical care benefits: Percent of full-time
participants In plans with substance abuse benefits by
uniformity in coverage, medium and large private
establishments, 1991

Protes-
sional, | Clerical | Produc-
techni- | and | tion and
cal, and| sales | service
related | partici- | partici-
partici | pants | pants
pants

All par-

Coverage limitation ticipants

Total .... 100 100 | 100 | 100

With alcohol abuse treatment

benefits 100 100 | 100 | 100

Drug abuse treatment covered in

the same manner...... 92 93 92 ]
Drug abuse treatment covered
differently... 7 6 7 7

Drug abuse treatment benefits
not provided .....

* Less than 0.5 percent.

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

56



Table 120. Flexible benefits plans and reimbursement
accounts:' Percent of full-time employees eligible, medium
and Sarge private establishments, 1991

Table 121. Reimbursement accounts: Percent of full-time
employees eligible by expenses covered, medium and large
private establishments, 1991

Profes- Profes-
sional, | Clerical | Produc- sional, | Clerical | Produc-
All eligi- | techni- and | tion and All eligi- | techni- and tion and
Coverage ble em-| cal, and] sales | service Coverage ble em-|cal, and] sales | service
ployees | related | employ- | employ- ployees | related | employ- | employ-
employ-| ees | ees employ-| ees | ees
ees ees
Total 100 | 100 | 100 Health care premiums a | oa | 4 | a7
Health care premiums only - 2 a} ou 15
Provided flexible benefits and/or Health care expenses 72 | 78 | 73 | 64
reimbursement accounts a7 | so | 42 | 26 Other insurance premiums 8 6 8] 1
Dependent care 7 | 81 | 7 | 70
Flexible benefits plan with Legal expenses .. 4 3 2 7
reimbursement accounts .. 8} 13 9 6 Other expenses 3 2 4 4
Flexible benefits plan with no
reimbursement accounts .. 1 2 17 0 NOTE: Where applicable, dash indicates no employees in this category.
Freestanding reimbursement
accounts . a | 34 | 32 | 20
Not provided flexible benefits or
reimbursement accounts .. . 63 50 58 74

* Flexible benefits plans, also known as flexible compensation and
cafeteria plans, allow employees to choose between two or more benefits
or benefit options in determining their individual benefit packages. Reim-
bursement (flexible spending) accounts, which are used to finance benefits
‘or expenses unpaid by insurance or benefit plans, may be part of a flexi-
ble benefits program or stand alone (freestanding accounts). These ac-
counts may be financed by the employer, employee, or both. The em-
ployee contribution is usually made through a salary reduction arrange-
ment.

? Less than 0.5 percent.

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

12s



Table 104. Retirement and capital accumulation plans:
Percent of full-time participants by selected plan types and
combinations of plans, medium and large private

establishments, 1991

Profes-
sional, | Clerical | Produc-
‘Al par. | techni: | and tion and
‘Type of plan ficipants| C4! and] sales | service
related | partici- | partici-
partici- | pants | pants
pants
Defined benefit ....... 100 | 100 | 100 | 100
With:
No other plan .. 59 58 87 60
Deferred profit sharing 8 5 4 1
Savings and thrift 26 29 at 24
Stock’ 1 1 2 1
Deferred profit sharing and
savings .. 3 2 2 4
Deferred profit sharing and
stock’ .. a a 1 i)
Savings and stock’ 1 1 1 fo}
Money purchase .. 2 2 1 2
Other combinations ... 1 1 1 1
Savings and thritt. 100 | 100 | 100
with:
No other plan . 51 51 52 51
Defined benefit 38 39 39 37
Deferred profit sharing . 2 2 2 2
Stock’ io} a is) io)
Defined benefit and deterred
profit sharing 4 3 2 7
Deferred profit sharing and stock’ a @ a -
Defined benefit and stock" 1 2 2 1
Money purchase . 2 2 1 1
Other combinations 1 1 2 1
Deferred profit sharing .... too | 100 | 100 | 100
With:
No other plan .. 47 47 53 45
Defined benefit 30 29 20 34
Stock plan’ ... ea 1 1 a}
Savings and thrift plan 6 6 10 4
Defined benefit and stock’ ......f 1 2 3 1
Defined benefit and savings 12 12 8 18
Savings and stock * won| @) 1 i) -
Money purchase 1 1 1 1
Other combinations 2 2 5 1
Money purchase pension .... 100 | 100 | 100 | 100
No other plan .. 69 74 69 63
Defined benefit 14 1 10 2t
Deferred profit sharing . 2 1 2 3
Stock’ 3) 1 - ®
Savings and thrift plan .. 8 9 8 8
Defined benefit and stock’ 1 1 1 2
Defined benefit and savings 2 2 3 3
Other combinations 3 2 6 1

| Employee stock ownership pians (ESOP’s) and stock bonus plans.

? Less than 0.5 percent.

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

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

109



Table 108. Savings and thrift plans: Percent of full-time participants in plans that allow pretax employee contributions by
method of determining contribution, medium and large private establishments, 1991

Initial contibutions

Initial contributions
must be pretax;

Initial contributions

puke must be pretax; additional may be either pretax
Item’ Total all oe must additional contributions may be or posttax
contributions must be | either pretax or at the employee's
posttax posttax, at the option
employee's option
All participants
Total .. 100 46 4 1 51
Maximum conteibutions allowed
Less than 5 percent 5 2 i) - 2
5 percent 5 2 ®) - 2
6 percent .. 7 2 1 - 3
7 percent (0) io) iG) - i)
8 percent .. 4 3 i] - 1
9 percent. 2 1 i) - 1
10 percent "1 7 @ @ 3
11 percent 2 ) 2 - 1
11.01-11.99 precent.... o) - = - o)
12 percent 9 3 @ - 5
12.01-12.99 percent... i) - - - to)
13 percent 2 1 - - 4
14 percent a 1 - 2
15 percent 24 "1 - 10
16 percent 18 4 1 44
Greater than 16 percent .. 8 4 - 4
Specified dollar amount 1 o) - 1
internat Revenue Code limit 3 3 - - -
Professional, technical, and
related
Total .. 100 47 3 1 49
Maximum contributions allowed:

Less than 5 percent 4 1 Q - 3
5 percent 4 1 ro) - 2
6 percent 4 2 1 - q1
7 percent 1 ® ro) - 8
8 percent 5 4 to) - 2
9 percent .. 3 1 - = 2
10 percent 12 8 ea fe) 4
11 percent 1 ie) 1 - ®
12 percent 8 3 1 5
12.01-12.99 percent o) - - - i)
13 percent 2 1 - - 1
14 percent 2 1 ~ oa 1
15 percent 22 10 ) - 12
16 percent 16 5 - 1 11
Greater than 16 percent .. 8 3 ® - 4
‘Specified dollar amount a) 0 - - i)
Internal Revenue Code limit . 5 5 - - -

See footnotes at end of table.

ll



Contents—Continued

Defined benefit pension plans:
82. Method of determining retirement payments .............+-0200 0 . 87

83. Terminal earnings benefit formulas by type and amount of formula 87
84. Terminal earnings formulas by definition of terminal earnings 88
85. Earnings-based benefit formulas by definition of earnings .... 89
86. Career earnings benefit formulas by type and amount of formula . 89
87. Dollar amount benefit formulas by type and amount of formula .. 90
88. Provision for integration of pension with Social Security benefit 91
89. Maximum benefit provisions .. 92

90. Average replacement rates for specified final earnings and years of service for retirement at age 65..... 93

91. Average replacement rates for specified final earnings and years of service for retirement at age 55 95
92. Minimum age and associated service requirements for normal retirement . 96
93. Minimum age and associated service requirements for early retirement . 97
94, Early retirement by reduction factor for immediate start of payments .. 98
95. Provisions for disability retirement . . 99

99

96. Selected plan features :

97. Vesting schedules ........... 06s cee cence eee e een een eens - 100
98. Provision for early receipt of deferred vested benefits by comparison of reduction factors

with early retirement ..

99. Provision for postretirement survivor annuity

100. Types of preretirement survivor annuity ....

101. Age and length-of-service requirements for participation ..

Defined contribution plans:

102. Retirement and capital accumulation plan coverage 108
103. Type of defined contribution plan .............6++--seee ee eee 108
104. Combinations of defined benefit and defined contribution plans . 109
105. Cash or deferred arrangements: Employee contributions with pretax dollars . . 110
Saving and thrift plans:
106. Maximum allowable employee contribution .... 110
107. Provision for pretax employee contributions ... 110
108. Pretax employee contributions by method of determining contribution . lll
109. Employer matching contributions .............6e eee e ener neces 113
110. Average annual contributions by annual earnings and allowable contribution levels . . 115
111. Average lump sum available at retirement by various factors . - 115
112. Investment of employee and employer contributions .. wee 116
113. Early withdrawal of employer contributions .... ~ U7
114. Method of distribution of account at retirement . . 117
Selected defined contribution plans:
115. Provisions of deferred profit-sharing plans - 118
116. Age and length-of-service requirements for participation .. 119
117, Vesting schedules 2.1.2.6... 66. e cece cence eee eee eee n eee n nes 120
Plan administration:
118. Type of plan sponsor .. «. 128
119. Type of plan financing . - 124
120. Flexible benefits plans and reimbursement accounts: Eli: 125
121. Reimbursement accounts: Eligibility by expenses covered . . . 125
Part-time employees in medium and large private establishments, 1991:
122. Summary: Participation in selected employee benefit programs .. + 127
123. Other benefits: Eligibility for specified benefits - 128



Table 84, Defined benefit pension plans:’ Percent of
full-time participants in plans with terminal earnings formulas
by definition of terminal earnings, medium and large private
establishments, 1991

|
|
|
|
|

Protes-
sional, | Clerical | Produc-
; All par. | technie | and tion and
Definition of terminal earnings | 2, Err. |cal, and) sales | service
related | partici- | partici-
partici- | pants: pants if
pants |
Total ... 100 100 100 100
Three years 15 16 14 14
Last 3... 2 3 2 2
High 3 .. 1 2 1 1
Of last 10 .. ie) is) iw) a
Of career se 1 2 1 1
High consecutive 3 1 10 1 "
Of last 5 1 a e 1
Of last 10 7 9 8 6
Of career 3 1 3 4
Five years ...... 82 82 83 82 |
Last 5 6 6 6 5
High § 10 10 7 1"
Of last 10 5 8 3 3
Of last 15 a) - - fa)
Of career 4 2 3 7
Other 1 1 1 1
High consecutive 5 67 65 70 66
Of last 10 52 51 54 51
Of last 15 .. 1 ol fa} 1
Of career ... 13 13 12 2
Other 2 1 3 2
‘Other periog® 3 3 3 4

* Excludes supplemental pension plans.

® Less than 0.5 percent.

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

88


Table 32. Long-term disability insurance: Percent of full-time participants with benefits based on percent of earnings
formula by maximum monthly benefit, medium and large private establishments, 1991

Total Maximum monthly benefit No
‘ath maxi-
Type of payment Total | rmaxi- | $1800 |§1501-|$2001-|s2501-|s3001-|sas01-|s4001-|s6001-| $7501- | $10,001 | Diner | mum
mum! Jor less| $2000 | $2500 | $3000 | $3500 | $4000 | $5000 | $7500 | $10,000 | or more | Pay
mum? | ment
All participants
Total eaeensee 100 67 4 2 1 6 1 6 20 8 14 4 ro) 33
Fixed percent of earnings 31 63 4 2 1 6 1 6 19 13 4 ra) 29
Less than 50 percent . 2 2; 09] 0 = ci) - 1) - ca) is) iV) - 1
50 percent 20 8 1 1/ 1] - 1 3) 0) 1 1 - 12
55 percent 1?) iv) - - = iv) - iv) - - ¢ - - -
60 percent 54 | 41 2 1| @ 51 2] 13) 5 9 2170 | 13
65 or 67 percent 12 | 10] @ e) ° 1} 0 2 3 1 2 iv) 2
70 percent... 3 2 - e = - - e) 1 1 i) - 1
More than 70 percent 1/0) 5 - | O} 5 - - - - e - - 1 0
Other percent o}/e}/ea})-)-]@}-]--)-4- - - -|-
Percent varies by earnings 6 4/0 iv) iv) - io) 1 17) 1 1 - 2
Percent varies by service ... o}ea}-]- - | -|-] - - - ) - - 16
Percent varies during disability.| 2 | () - - e iv) - - e - - - - 2
Professional, technical, and
related
Total . yoo} 70) 3} 2] 2) 7/0 7| 21 8 14 5 | - | 30
Fixed percent of earings o | 6) 3] 2] 4 7|/ 0 7| 21 8 13 4 | - | 25
Less than 50 percent 2 21 - - a) 1 - 0) iv) a) - re)
60 percent ... 7 15 7 + 1 @. 1 - 1 1 1 1 4 - 8
55 percent... 0) ¢) - - - el - - - fo) - - -
60 percent 58 45 2 1 0) 5 ) 3 16 5 9 2 - 43
65 or 67 percent 12 W 0 fe) e) 1 iv) 2 3 1 2 ea - 2
70 percent 3 2| - - - - - - ry 4 1 roy - 1
More than 70 percent 110 - - fa) - - - - e - - °)
Other percent .. 7 6 e) - - - eo - - - - - a - .
Percent varies by earnings s| 4) 0/4 1/@}-]06 1/0 a) ) - 2
Percent varies by service olel-|-)]-]-)-)- 3-4 - ° - - 10
Percent varies during disability} 3 } () - - oe) 0 - - co) - - - - 3

See footnotes at end of table.

33



Table 117. Savings and thrift and deferred profit sharing plans: Percent of full-time participants by type of vesting

schedule, medium and large private establishments, 1994

AN participants Professional, technical, and | Clerical and sales partici- | Production and service
Particip; related participants pants participants
Type of vesting schedule Deferred Deferred Deferred Deferred
Savings and | Savings and “nq | Savings and eeag | Savings and fern
profit sharing profit sharing profit sharing profit sharing
thrift plans plans thrift plans plans thrift plans plans thrift plans plans
Total 100 100 100 100 100 100 100 100
Immediate full vesting 31 40 34 47 29 22 31 a7
Cliff vesting’ with full vesting
after: at 18 29 7 22 7 40 19
1-2 years . 2 i) 2 - 1 - 3 1
3-4 years .. 9 1 6 - 8 1 14
5 years .. 19 16 a 17 12 16 23 16
More than 5 years a) - ® - 1 - - -
Graduated vesting’ with full
vesting after: 35 4 32 36 46 62 27 34
4 or fewer years 3 2 e) 6 3 3 1
5 years .. ai 4 ai 4 26 7 16 1
6 years .. 2 3 2 2 2 3 2 2
7 years . 8 34 7 29 12 48 6 29
10 years - a) - (a) - ro) - -
Class vesting with each class
fully vested after: 3 - 5 - 3 - 3 -
2 years .. 2 - 2 - 2 - 3 -
9 years 1 - 1 - 1 - (o) -
More than 3 years .. 1 - 1 - ca) - - -
Data not available ... i) - (a) - 6 - - -

\ Under a cliff vesting schedule, an employee is not entitled to any
benefits accrued under the plan until satisfying the requirements for 100
percent vesting.

? Less than 0.5 percent.

* Graduated vesting schedules give an employee rights to a gradually
increasing share of accrued benefits, determined by years of service,
eventually reaching 100 percent vesting status.

* Under class-year vesting, employers’ contributions for a particular

120

year (class) become nonforfeitable after employees satisty vesting re-
quirements. Subsequent years become fully vested as each class ma-
tures. Included here are class year schedules with both graduated and
cliff vesting features

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



Table 91. Defined benefit pension plans:' Average replacement rates for specified final earnings and years of service for
retirement at age 55,’ medium and large private establishments, 1991

Years of plan participation’
Final annual earnings
10 15 20 25 | 30 35 40
Private pension only
All participants
$15,000 77 W7 16.6 20.8 26.8 30.7 34,3
$25,000 67 10.2 14.0 174 219 24.9 278
$35,000 ...... 64 96 13.1 163 20.4 23.2 25.7
$45,000 ..... 62 94 128 16.1 19.9 227 25.0
$55,000 . 62 98 128 15.7 193 22.0 24.2
$65,000 63 98 125 187 19.4 22.0 244
Professional, technical,
and related
$15,000 72 11.4 15.6 19.6 24.6 28.0 31.0
$25,000 67 10.5 14.2 17.8 21.9 247 27.3
$35,000 66 10.3 13.9 175 24.6 24.4 26.9
$45,000 66 10.3 14.0 178 219 247 274
$55,000 67 10.5 14.3 176 215 24.4 267
$65,000 6.9 10.7 13.9 17.9 22.0 24.8 27.1
Clerical and sales

$15,000 74 10.8 16.1 20.2 25.5 29.0 32.0
$25,000 66 40.1 14.2 17.7 21.9 247 27.0
$35,000 65 40.0 13.6 16.9 21.0 23.7 25.8
$45,000 65 10.0 135 16.8 20.9 23.5 255
$55,000 66 102 13.6 16.3 20.0 22.6 24.4
$65,000 68 10.4 129 163 203 228 247
Production and service

$15,000 . 84 12.4 17.6 21.9 28.9 33.5 37.8
$25,000 68 99 137 17.0 218 25.1 28.2
$35,000 62 90 123 16.4 19.3 222 249
$45,000 58 85 11.6 14.4 18.4 208 23.3
$55,000 . 57 84 113 140 175 20.0 22.4
$65,000 ...... 56 83 112 13.8 174 196 21.9

’ Excludes supplemental pension plans.

* Retirement annuity as a percent of earnings in the final year of work.
The maximum pension available to an employee, not reduced for joint-and-
survivor annuity, was calculated under each pension plan using the
earnings and service assumptions shown. This benefit level was then
expressed as a percent of earnings in the last year of employment.

These calculations assume employees retired on January 1, 1991 and
final earnings are for 1990. Earnings histories, necessary for applying the

95

pension formulas, were constructed for each final earings level based on
data provided by the Social Security Administration. Computations exclude
participants in cash account pension plans or plans with benefits based on
career contributions,

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



Table 37. Long-term disability insurance: Percent of
full-time participants by provision for survivor benefits,
medium and large private establishments, 1991

Table 38. Long-term disability insurance: Percent of
full-time participants by coverage for mental illness, medium
and large private establishments, 1991

Profes- Protes-
sional, | Clerical | Produc- sional, | Clericat | Produc-
Allpare| techni | and | tion and ‘Alt par | techn | and | tion ang
Type of annuity for surviving spouse |; P3'" /cal, and) sales | service Item ficiponte | O24 and| sales | service
pants | related | partici- | partici- i related | partici- | partici-
partic: | pants | pants pattici- | pants | pants
pants pants
Total oo | 100 | 100 | 100 Total 100 | 100 | 100 | 100
With survivor benefits ... 22 25 24 16 With coverage for mental illness...) 85 82 84 89
Lump sum payment see 17 20 49 12 Without limits 50 43 45 65
Percent of monthly benefit’ 5 5 5 4 Benefits limited 35 40 38 25
Other benefit® ........ ° ° iv) ro) No coverage for mental illness. 3 3 3 +
No survivor benefits 4 66 70 78 Coverage not determinable . 13 14 14 9
Benefit not determinable .. 7 9 6 6

* Benefits are payable for a limited time period, typically 6 months.

2 Includes plans that pay any unpaid balance of an accrued benefit to a
survivor.

* 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.

36

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