Table 13. Paid sick leave: Percent of full-time employees by sick leave provisions, private industry, 1981

Profes- Profes-
sional | Techni- sional | Techni-
Altem-|_2nd_ | cal and | Produc~ Alem: |_ 2d | cat and | Produc-
Sick leave policy’ adminis-| clerical | tion em- Sick leave policy’ loves |2dminis-| clerical | tion em-
Ployees "trative | employ- | ployees ployees |" trative | employ: | ployees
employ-| ees. employ-| ees
es ees
Total . 100 | 100 | 100 | 100
Sick leave provided
Provided sick leave* 65 92 92 4 annually’—Continued
Sick leave provided Unused sick leave provisions:
annually? ... 49 63 70 32 Carry-over only 15 7 24 10
Cash-in only 6 2 6 7
Less than 1 year of service: Cash-in and carry-over 2 1 3 3
Under 5 days ... 10 7 15 9 No provision 25 44 37 12
5 and under 10 days .. 15 20 25 a Data not available 9) “ ) -
10 and under 30 days 10 19 16 2
30 and under 60 days a) i 1 a) Sick leave provided on a per
60 and under 120 days .. 1 2 O o) disability basis® ... 18 90 26 9
120 days or more 2 5 1 1
Less than 1 year of service:
Alter 1 year of service: ‘Under 5 days .. 0 iv) 13) -
Under § days 3 1 2 5 5 and under 10 days 4 8 7 1
5 and under 10 days 18 13 26 7 10 and under 30 days . 4 6 6 2
10 and under 30 days at 36 36 7 30 and under 60 days . 1 1 1 9)
30 and under 60 days 2 4 2 ) 60 and under 120.days 1 3 1 rv)
60 and under 120 days .. 1 3 o 0 120 days or more 2 6 2 0
120 days or more .. 2 5 1 1
After 1 year of service:
After 5 years of service: Under 5 days . 0 i) 1 0
Under 5 days 2 0 1 4 5 and under 10 days 3 6 5 2
5 and under 10 days .. 14 9 18 14 10 and under 30 days . 5 6 8 2
10 and under 30 days 18 27 30 9 80 and under 60 days . 2 5 3 “
30 and under 60 days 6 10 10 1 60 and under 120 days 4 3 2 ry
60 and under 120 days .. 4 8 6 1 120 days or more 2 7 2 1
120 days or more .. 3 8 2 1
After 5 years of servic
After 10 years of service: Under 30 days 2 3 4 1
Under § days 2 o 1 4 30 and under 60 days 3 4 4 1
5 and under 10 days .. 14 9 17 14 60 and under 120 days 9 14 13 6
10 and under 30 days 17 24 28 8 120 days or more 3 8 4 1
30 and under 60 days 5 8 9 2
_ 60 and under 120 days .. 5 W 8 2 After 10 years of service:
120 days or more 5 1" 5 1 Under 30 days 2 2 3 1
- 30 and under 60 days .. 1 2 2 (9)
After 15 years of service: 60 and under 120 days 9 12 12 6
Under § days .... 2 0 1 3 120 days or more ... 5 13 7 1
5 and under 10 days 4 9 18 14
10 and under 30 days 16 23 27 8 After 15 years of service:
30 and under 60 days 3 4 7 1 Under 60 days 2 3 4 1
60 and under 120 days .. 6 12 9 2 60 and under 1 4 7 6 2
120 days or more 6 14 8 2 120 days or more 1" 20 15 5
After 20 years of service: After 20 years of service:
Under 5 days 2 0“ 1 3 Under 60 days 2 3 4 1
5 and under 10 days .. 14 9 17 14 60 and under 120 days 4 6 5 2
10 and under 30 days 16 23 27 8 120 days or more 4 at 15 6
30 and under 60 days 3 4 6 1
60 and under 120 days .. 6 "1 8 3 After 25 years of service:
120 days or more .. 7 15 9 2 Under 60 days 2 3 4 1
60 and under 120 days 3 5 5 2
After 25 years of service:* 120 days or more 12 22 16 6
Under 5 days 1 0) 1 2
5 and under 10 days .. 14 9 7 16 No maximum sick leave
10 and under 30 days 16 23 27 8 specified’ ... 1 4 1 0
30 and under 60 days 3 4 6 1
60 and under 120 days .. 4 8 6 2. ||Not provided sick leave... 35 8 8 59
120 days or more .. 9 19 W 3

* In addition to the full-pay provisions shown, some plans provided

sick leave at partial pay.

? The total is less than the sum of the individual breakdowns be-
cause some employees were covered under both an annual and a per

disability plan.

* Employees earn a specified number of sick days per year.

number may vary by length of service.

This

“ Less than 0.5 percent.

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

* Sick leave is provided on a per illness or per disability basis. The

number of days may vary by length of service.
7 Unlimited sick leave provided to employees as needed.

NOTE: Dash indicates no employees in this category.



Table 42. Accident and sickness insurance: Percent of
full-time participants by length of service requirement for
participation,' private industry, 1981

Table 44. Health insurance: Percent of full-time participants
by length of service requirement for participation,’ private
industry, 1981

Profes- Profes-
sional | Techni- sional | Techni-
All par-| 204 _ | cal and | Produc- ‘Ali par-| 294 _| cal and | Produc-
Length of service requirement | jcj.ant, [adminis-| clerical |tion par- Length of service requirement | goifantg |2dminis-| clerical |tion par-
trative | partici- | ticipants ip trative | partici- | ticipants
partici- | pants partici- | pants
pants pants
Total 1oo | 100 | 100 | 100 Total. 100 | 100 | 100 | 100
With service requirement .. 74 1” 74 74 With service requirement ... 59 42 53 69
1 month 26 30 29 25 1 month 18 7 7 20
2 months "1 6 9 13 2 months 19 7 8 19
3 months 23 20 22 23 3 months 19 13 19 22
4-5 months 5 6 5 4 4-5 months .. 1 ¢) 4 2
6 months 6 6 6 7 6 months 6 8 7 6
7-11 months i) - - i) 7-42 months Vv) 10) 1 e
4 yea 2 1 1 2
‘Over 1 year 1 1 2 ie) Without service requirement 4 58 47 31
Without service requirement 26 29 26 26 Service requirement not
determinable .. o) - - i)

Service requirement not
determinable

Length of time employees must be on the job before they are cov-
ered by @ 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

are.
* Less than 0.5 percent.

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

Table 43. Long-term disability insurance: Percent of
full-time participants by length of service requirement for
partictpation,' private industry, 1981

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

* Less than 0.5 percent,

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

Table 45. Life insurance: Percent of full-time participants
by length of service requirement for participation In basic
plans,’ private industry, 1981

Profes- Profes-
sional | Techni- sional | Techni-
All pare |__ 2" | cal and | Produc- Ail par-| 294 _ | cal and | Produc-
Length of service requirement | f2,.BP%. | adminis-| clericat |tion par- Length of service requirement | jj.0ntq [adminis-| clerical tion par-
pants | trative | partici- | ticipants trative | partici- | ticipants
partici- | pants partici- | pants
pants pants
Total 4o0 | 100 | 100 | 100 Total .. 400 | 100 | 100 | 100
With service requirement 65 65 70 61 With service requirement ... 6 a7 62 67
4.month... 10 13 8 9 1 month .. 20 20 19 20
2 1 2 3 2 months 9 4 6 12
13 12 15 13 3 months ... 20 13 at 22
9) 19) i) i) 4-5 months 2 1 3 1
16 4 15 18 6 months 9 8 10 9
12 13 15 9 7-41 months ia) i) is) ca)
2 2 2 2 1 year . 1 1 1 2
3 3 5 1 Over 1 year 1 1 1 ia)
6 6 7 5
Without service requirement 39 53 38 33
Without service requirement 36 35 30 39

‘Length of time employees must be on the job before they are cov-
ered by a plan that is at {east 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.

2 includes less than 0.8 percent of the participants, who were in plans
with a minimum age requirement only.

® Less than 0.6 percent.

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

Service requirement no!
determinable .. . @ e 0 io)

T 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 tre-
quently an administrative time lag between completion of the require-
ment and the actual start of participation. If the tag was 1 month or
more, it was included in the service requirement. Minimum age require-
ments are rare.

® Less than 0.5 percent.

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



Table 35. Private pension plans: Percent of full-time participants’ by minimum age and associated service requirements for
early retirement,’ private Industry, 1981

Protes- Profes-
sional |Technical] sional {Technical
Produc- al! Produc-
‘Age and service requirements? dents and ade and sl ton pr. ‘Age and service requirements? hana _ am ae and on ton ear.
tive par- | ticipants | "Pa" tive par- | ticipants | "oiPpants
ticipants ticipants
Total ..
Age 56 to 58—Continued
Participants in plans permitting 10 years’ service 1 “ 1 1
early retirement | 98 98 98 97 20 or 30 years’ service 1 1 0) 1
No age requirement 5 10 6 3 8 5 5 12
Less than 30 years 1 > 1 1
service o iv) “ ia) 5 years’ service .. iv) oO 1) “
30 years’ service 5 9 5 2 10 years’ service 4 2 2 6
More than 30 years’ 15 years’ service 4 3 2 5
service ) io) oO - 20 or more years’ service | (‘) “) o) )
Less than age 55° 8 5 2 8 || Age 62 .. 2 1 1 3
No service requirement 0 iV) iv) iv) No service requirement .... iv) ie) iv) 0)
5 years’ service iv) iv) O 6 5 years’ service .. 6 - - Oo
10 years’ service 2 2 5 10 years’ service 1 ) i)
16 or 20 years’ service .. 2 2 2 1 15 years’ service 1 ) i) 1
25 years’ service 4 0 4 5 20 or 25 years’ service 7) ) i) “
Age 55°. 63 69 68 58 || Sum of age plus service .. 9 8 6 12
No service requirement 9 10 9 8 Equals 70 or less 1 1 1 1
5 years’ service 4 7 5 2 Equals 75 1 1 1 1
10 years’ service 36 38 37 34 Equals 76-80 1 2 2 1
15 years’ service " 10 13 "1 Equals 85 6 3 2 9
20 years’ service 3 3 4 2
25 years’ service () o - = |[Participants in plans without early
retirement .. 2 2 2 3
‘Age 56 to 59 1 1 1 1
5 years’ service ) - - )
Excludes participants in money purchase plans. * Includes 0.3 percent or less with service requirements other than
? Early retirement is defined as the point at which a worker could re- _ specified.
tire immediately and receive accrued benefits based on service and * includes 1.2 percent or less with service requirements other than
‘earings but reduced for each year prior to normal retirement age. specified.
> Ifa plan had more than one age and service requirement, the earli-
‘est age and associated service requirement was tabulated. NOTE: Because of rounding, sums of individual items may not equal
* Less than 0.5 percent. totals. Dash indicates no employees in this category.
33


was developed by refining data from the most recently
available State Unemployment Insurance (UI) reports
for the 48 States covered by the survey and the Dis-
trict of Columbia. The reference date of the available
UI reports was generally March 1979. The refinement
procedures included an effort to ensure that most sam-
pling frame units corresponded to the definition of an
establishment as defined for this survey. (A small num-
ber of sampling frame units were not refined to corre-
spond to the definition of an establishment because of
limited company reporting ability.)

Sample design

The sample for this survey was a subsample of the
1981 PATC sample to reduce the costs and resources
required for data collection. The sample of 1505* estab-
lishments was selected by first stratifying the sampling
frame by broad industry group and establishment size
group based on the total employment in the establish-
ment. The industry groups consisted of the eight major
industry divisions, as defined by the Office of Manage-
ment and Budget, which are covered by the survey and
shown in table A-1.

The establishment size groups are defined as follows:

Employment size Establishment
group employment
50-99
100-249
250-499
500-999
1,000-2,499
2,500~4 999
5,000-9,999
10,000 and over

SwoeyudMwaw

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

Within each stratum, a random sample was selected
using a probability technique to maximize the probabil-
ity of retaining establishments which were selected in
the 1980 survey.’ This method of selection reduced col-

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

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

lection costs by decreasing the number of new estab-
lishments in the sample.

Data collection

Data for the survey were collected by personal visits
of Bureau field representatives to the sampled estab-
lishments. To reduce the reporting burden, respondents
were asked to provide documents describing their pri-
vate pension plans and plans covering the four insured
benefit areas within the scope of the survey. These were
analyzed by BLS staff in Washington to obtain the re-
quired data on plan provisions. Data on paid leave and
other paid time off generally were obtained directly
from the employers at the time of the visit.

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

Data tabulation

The tables presented in this bulletin show the percent
of employees that were covered by paid leave plans,
participated in insurance or pension plans, or were eli-
gible for other benefits. Except in table 47, counts of
workers covered by benefit plans included those who
had not met possible minimum length-of-service require-
ments at the time of the survey. Workers were counted
as participants in employee benefit plans that require
the employee to pay part of the cost only if they elected
the plan and paid their share. Plans for which the em-
ployee paid the full premium were outside the scope of
the survey, even if the employer paid administrative
costs.

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

A second approach is followed in tables 6, 8-9, 14,
16-17, 27-28, 31-35, 37, and 39-46, which show the
number of workers covered by specific features in a
benefit area as a percent of all employees who partici-
pate in that general benefit area. These tables answer
questions concerning typical coverages provided to per-
sons with a given insurance benefit or a private pension
plan; for example, what percent of all employees with
health insurance receive dental coverage?

The third approach provides a closeup look at an
important feature (tables 15, 18-26, and 29-30); for ex-
ample, what percent of all employees with dental cov-
erage in their health insurance are covered for ortho-
dontic work? A group of tables combine the second
and third types above, indicating in the first row of data
the percent of persons in a given benefit area who have
a particular coverage, while the remainder of the table
is based on all employees with that coverage (tables 36
and 38).



slightly lower among health insurance plan members
and highest for accident and sickness insurance (tables
42-45), Except for long-term disability insurance plans,
service requirements were usually only 1, 2, or 3 months.
Those found in LTD plans were more restrictive, with
some ranging up to one year or more. Because of the
long-term nature of this benefit, employers have tradi-
tionally restricted eligibility to employees who have
demonstrated some attachment to the company.

For health and life insurance benefits, the incidence
of requirements varied markedly among the employee
groups. While somewhat more than one-half of profes-
sional-administrative employees could participate im-
mediately, almost two-thirds of all other employees had
some waiting period.

Private pension plans. Three-fifths of pension plan par-
ticipants were required to meet certain age or service
criteria (table 46). Minimum ages were required for.a
significant proportion of covered employees, reflecting
the concern of plan sponsors about the costs of funding
retirement benefits. About one-third of the participants
had to meet both stipulated minimum age and service
requirements. ERISA legislation requires that em-
ployers who provide pension plans make them avail-
able to all full-time employees by the time they have
reached age 25 and completed one year of service. Many
plans with minimum age and service requirements, how-
ever, allowed participation at an earlier age. Service
requirements seldom exceeded one year, even when no
minimum age was specified.

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

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

Other benefits

In addition to the major benefits previously discussed,
information was collected on a number of other bene-
fit plans, such as profit sharing, severance pay, and re-
location allowances. Table 47 shows the extent of cov-
erage for each employee group within individual estab-
lishments. Generally, benefits were either provided for
all workers or did not exist in an employee group within
an establishment. For example, 70 percent of the pro-
fessional-administrative employees were in establish-
ments that did not have profit sharing plans for this
employee group, 20 percent worked in firms that of-
fered these plans to all professional-administrative em-

10

ployees, and 5 percent were in establishments that of-
fered the benefit to some but not all of this group. (Data
were not available for 6 percent.) The data in table 47
do not indicate, however, the proportion of employees
actually using or receiving a specific benefit.

Funeral leave, military leave, parking (provided at
no cost or below commercial rates), and educational
assistance were available to at least three-fifths of the
employees in each group. Employee discounts on pur-
chases of the employer’s goods or services and in-house
infirmary care were also important benefits, covering
at least two-fifths of the employees of each group.
Among the benefits surveyed, eligibility was lowest for
stock bonus plans, stock purchase plans, and employee
gifts. In addition, employee eligibility for use of a com-
pany-owned or leased automobile for personal business
was seldom found, but was provided more often to the
professional-administrative employees than to the other
two groups.

Incidence of several other benefits differed by em-
ployee. group, with a larger proportion of profes-
sional-administrative employees usually covered. For
example, relocation allowances for transferred or newly
hired employees were available to four-fifths of the pro-
fessional-administrative employees but to only two-
fifths of the technical-clerical employees and one-fourth
of the production workers. Severance pay was offered
to over one-half of the white-collar employees, almost
twice the proportion of production employees covered.
Profit sharing, savings, stock bonus, and stock purchase
plans, available to a minority of workers in each em-
ployee group, were offered least often to production
workers.

A new feature of the 1981 data distinguishes between
full and partial defrayment of the cost of the benefit to
the employee for several of these benefits. Parking, for
example, was nearly always free for those employees
eligible for the benefit. Conversely, meals were gener-
ally provided at reduced cost, rather than free, to those
eligible. Fully paid relocation allowances were avail-
able to 3 out of 4 eligible white-collar employees but
to only one-half of the covered production workers.
For those employees provided recreational facilities,
one-half of the workers in each employee group were
eligible for full payment of the cost while the other half
jointly financed the cost of the benefit with the em-
ployer. Partial defrayment of employee educational ex-
penses was available to at least 40 percent of employ-
ees in each group, while full defrayment applied to 18
percent of the production employees, 27 percent of the
technical-clerical employees, and 30 percent of the. pro-
fessional-administrative employees. Full educational as-
sistance included total cost for books, tuition, and fees,
but not necessarily for worktime lost due to attending
courses.



Industry, 1981

Table'16, Long-term disability Insurance: Percent of full-time participants by method of determining payment, private

Professional and Technical and clerical . ick
All participants administrative participants participants Production perticinents
With | Without With | Without With | Without With | Without
Method maxi- | maxi- maxi | maxi maxi- | maxi maxi- | maxi-
mum | mum mum } mum mum | mum mum | mum
Total cover- | cover- Total cover- | cover- Total caver- | cover- Total cover- | cover-
lage pro-| age pro- ‘age pro-|age pro- age pro-| age pro- lage pro-|age pro-
visions | visions visions | visions visions | visions visions | visions
All methods 100 69 31 | 100 72 28 | 100 7 25 | 100 59 4
Fixed percent of earnings 78 59 19 85 61 24 84 64 20 66 53 12
Less than 50 percent 4 3 1 4 3 0) 3 2 a) 5 3 2
50 percent 30 2 9 3a 18 13 29 19 9 30 25 5
} 65 percent () () 0) - ay - 0) Y 9) 1 1 -
1. 60 percent 35 28 7 4 32 9 at 34 7 23 19 4
i! 65 or 66.7 percent . 7 6 1 8 7 1 8 6 2 5 4 (0)
| il 70 percent or more 2 1 1 2 2 0) 2 2 iv) 2 () 2
Lal Percent varies by earnings 9 6 3 10 6 3 12 8 4 5 3 1
Percent varies by service ....... 1 1 cv) 2 1 0 1 1 1 t) (0) -
Scheduled dollar amount varies by
earnings 12 2 10 3 3 - 2 2 1 28 2 27
Other 1 1 0 1 ) 10) oO 1) 0 1 1 0)

* Less than 0.5 percent.

20

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



Table 46. Private pension plans: Percent of full-time
participants by age and service requirements for participa-
tion,' private industry, 1981

Profes-
sional | Techni-
it and | cal and | Produc-
Ae nn et ts [adminis | clerical tion par

Partici- | ticipants
pants

Minimum requirement

Total .. 100 | 100 100 100

With minimum age and/or service

requirement? 59 60 70 82
‘Age and service 35 39 49 26
Age only 4 8 5 3
Service only 20 16 7 24

Without minimum age and/or
service requirement .. 4 40 30 48

Maximum requirement

Total 100 j 100 | 100
With maximum requirement’ .. 58 66 69 49
Without maximum requirement .. 42 34 34 st

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

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

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

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

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



Employee Benefits in
Medium and Large Firms,
1981

The 1981 benefits survey collected data on employee
work schedules and developed information on the in-
cidence and detailed characteristics of 11 private sec-
tor employee benefits paid for at least in part by the
employer: Paid lunch and rest periods, holidays, vaca-
tions, and personal and sick leave; accident and sick-
ness, long-term disability, health, and life insurance; and
private retirement pension plans. In addition, data were
collected on the incidence of 17 other employee bene-
fits, including stock, savings and thrift, and profit shar-
ing plans; employee discounts; educational assistance;
relocation allowances; and free or subsidized parking.
The major BLS findings are reported in this bulletin.

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

Data are presented separately for three occupational
groups—professional-administrative, technical-clerical,
and production workers. The text of this bulletin often
discusses the first two groups jointly, labeled “white-col-
lar” workers.

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

Tabulations in the bulletin show the percent of em-
ployees covered by benefit plans or plan provisions.
Percentage computations differ with respect to the
group of employees serving as a base for the calcula-
tions. Three such employee groupings are used: (1) All

employees covered by the survey; (2) employees who
participated in a particular type of benefit plan; and (3)
employees covered by a particular type of provision
within a benefit area to provide a closeup look at an
important feature.

Summary

The great majority of full-time workers within the
scope of the 1981 survey of employee benefits were
provided with health and life insurance and private re-
tirement pension plans as well as paid holidays and va-
cations (table 1). The employer generally paid the full
cost of providing benefits. Provisions of many employee
benefits differed markedly between white-collar and
production workers.

On the average, employees received about 10 paid
holidays each year. The number of days of paid vaca-
tion, increasing with years of service, averaged nearly
16 days after 10 years and 21 days after 20 years.

Ninety-three percent of all employees had some pro-
tection against loss of income due to short-term disabil-
ity—either sick leave or accident and sickness insur-
ance, or both. Most employees also had some protec-
tion for extended income loss due to disability; 41 per-
cent had long-term disability insurance, and 50 percent
were covered under private pension plans that provided
immediate disability retirement benefits.

Virtually all of the participants in health insurance
plans were covered for the major categories of expenses
related to hospital and medical care. Three-fifths had
coverage for dental care, and slightly over one-fifth for
vision care.

Life insurance was provided for nearly all employ-
ees, most commonly for an amount equal to annual
earnings, rounded to the next $1,000.

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



Table 33, Private pension plans: Percent of full-time
participants’ by provision for integration or offset of social
security benefits, private industry, 1981

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

adminis- clerical |tion par-
trative | partici- | ticipants
partici- | pants

pants

All par-

Provision ticipants

Total 100 100 100 | 100

With integrated or offset formula...) 43 62 62 25

Terminal earnings formula ... 38 56 56 24

Integrated with social secur

payment® 7 2 9 3
Offset by social security
payment? 31 44 46 18
Based on service . 24 34 36 13
Not based on service 8 10 10 5
Other formula .. 5 6 6 4 i
Integrated with social securty i
payment? 3 4 4 2 i
Offset by social security
Payment’... 2 2 2 1
Based on service .. 1 1 1 1
Not based on servic 1 1 1 i)
Without integrated or offset formula.| 57 38 38 75

T Excludes participants in money purchase plans.

? Formula provides lower benefits for earnings subject to FICA (social
security) taxes than for earnings in excess of tax base.

* Benefit as calculated by formula is reduced by portion of primary so-
cial security payment.

« ‘Less than 0.5 percent,

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

31



| Table 14. Accident and sickness Insurance: Percent of full-time participants by type and duration of payments,

: private industry, 1981
Maximum weeks of coverage
Type of payment Loss Greater | Varies,
Total | than | 13 | 14-26 | 26 | 27-51 | 52 | than | by ‘| Othert
13 52 | service
All participants
All types 100 1 10 5 83 2 7 1 12 1
Fixed percent of earnings .. 41 ie) 2 3 28 1 2 i) 4 1 |
50-54 15 - 1 1 12 - - ro) 1 - |
55-59 .. 1 - - - 1 - - - 2 |
60-64 .. W i] t 2 5 19) 19] 2 -
65-69 .. 9 a 1 - 7 i) i) e 1
70 of more 6 iv) ® is) 3 - - 1 -
Percent of earnings varies 4 - 1 () 1 - 2 -
By service .. 1 - ~ - ro) - - 1 -
By length of disability 2 ie) - @ 6 1 - @ -
‘ By both service and fength of
disability .. 1 - 1 - - ® -
By earings e - - i] - - - - -
Fixed weekly dollar benefit 32 ® 7 1 7 Q 4 - 2 -
Less than $60 7 ia) a to) 3 Qo 0 - i] -
$60-$79 . 4 - 1 1 2 io) ro) - - -
$80-$99 . 6 - 2 - 3 - i) - ie) -
$100-$119. 5 - i) io) 3 - 1 - ro) -
$120-$139 . 6 i) ~ ro) 4 6 1 - - -
$140 or more 5 - is) 0 2 co) 1 - 2
Weekly dollar benefit varies 23 1 (o) ? 0) " ) 4 -
By earnings 22 1 to) 6 to) 10 i) 4 - |
By sevice or length of i
disability ... 1 - @ - fa) - is) @ i) - i
Professional and administrative
All types .. 100 1 4 5 63 ) 1 1 13 1
Fixed percent of earnings .. 70 1 1 5 47 (a) 6 1 8 1
50-54 .. 26 - - 1 22 - - 3 -
55-59 .. 1 - - - 1 * - - - :
60-64 . 18 1 1 3 1 - - Q 3 -
65-69 .. 14 - ro) - 4 iV) 1 ie) e@ 4
70 oF more 1" - (a) 1 2 - 6 - 1 -
Percent of earnings varies 9 - - - 4 3 - 2 -
By service 2 - - 1 - - 4 -
By length of disability 5 - - - 1 - 3 - - -
By both service and length of
disability 2 - - - 1 - - - 1 -
Fixed weekly dollar benefit 14 e 2 r) 9 re) 1 - 2 -
Less than $60 3 1 ro) 2 = - - - .
$60-879 .. 1 2 +1 6 6 Z 2 : : am
$80-$99 . 3 - - - 2 - - - 1 .
$100-$119 2 0 - 1 - i] - a -
$120-$139 . 3] 0 - to) 21 0 Q - : -
$140 or more 1 - - - 1 - 6 - 0 .
Weekly dollar benefit varies .. 7 i) - 4 - i) 1 2
By earnings 7 ro) - 4 @ (a) 2
By service or length of
disability ) - - - a ~ - 0 - -
Technical and clerical
All types 100 1 9 6 61 2 7 1 3.1 @
Fixed percent of earnings 68 1 3 5 45 1 4 1 | a
50-54 26 - i?) 1 22 - - 6 2 -
55-59 1 - - - 1 - - - - -
60-64 18 1 2 3 7 (0) iv) Q ba
65-69 413 a) e - 10 1 1 ro) 6 (C)
See footnotes at end of table.
17


Table 19. Health insurance: Percent of full-time participants
in plans with basic surgical benefits by maximum allowance
for selected procedures, private industry, 1981

|
|
|

Profes-
sional | Techni-
- Ail pare |__a7d | cal and | Produc- |
‘Maximum allowance ticipants |2aminis-| clerical | tion par-
trative | partici- | ticipants |
partici- | pants i
pants !
Total .. 100 | 100 | 100 j 100
Usual and customary charge . 62 65 60 61
Maximum scheduled allowance 38 35 40 a9 |
‘Most expensive surgical
procedure:
$200 or less QO 0) () -
$201-$300 2 2 2 2
$301-$400 2 1 1 3
$401-$500 5 3 3 6
$501-$750 5 3 3 7
$751-$1,000 7 4 7 8
$1,001-$1,250 .. 3 3 4 3
$1,251-$1,500 .. 5 7 8 3
$1,501-$2,000 . 5 6 7 4
More than $2,000 4 6 4 3
Appendectomy:
‘$100 or less iv) 0) 1 V)
$101-$150 3 2 2 3
$151-$200 7 5 5 9
$201-$300 12 10 12 12 |
$301-$400 4 10 15 9 |
$401-§500 2 2 2 2
More than $50 3 5 2 2
Not determinable* 1 1 1 1
Tonsillectomy:
$50 or fess 2 2 2 2
$51-$100 16 12 12 19
$101-8150 14 13 19 12
$151-$200 3 4 3 2
More than $200 .. 2 3 1 2
Not determinable? .. 2 2 3 1
1 iv) 1 1
8 6 5 Ww
6 4 5 7
7 7 8 7
1 4 14 9
More than $750... 2 4 2 2
Not determinable® .. 4 5 5 2

T Less than 0.5 percent.
? Information necessary to classify was not provided.

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

23


Table 15. Accident and

earnings formula by maximum weekly benefit, private industry, 1981

sickness insurance: Percent of full-time participants with benefits based on percent of

Maximum weekly benefit

No
of payment Total | Total | Less | $80 | $100 | $120 | $140 | $160 | $200 | $260 | $300 | maxi-

Type of pay with | than | to | to | to | to | to | to | to | or | mum

maximum! $80 | s99 | sit | $139 | $159 | sige | s249 | $299 | more
All participants

Total 100 71 1 19 3] 18 6 1] 10 4] wl] 2

ixed percent of earnings 92 70 1 19 3] 15 6 1+} 10 4} mw] 22
Fe 33 29 1] 19 1 1 3/1 0 210 2 4
55-59 . 2 2 - - - “ - - 1 1 - -
60-64 .. 24 16 i ~ 1 2 3 1 5 1 3 9
65-69 .. 20 18 ” - 0 10 1 (o) 2/0 4 2
70 or more 13 6 - - 1 +10 - 1 1 2 7
Percent of earnings varies 8 1 - - -10 - - - -1¢@ 8

Professional and administrative
Total 100 69 iv) 25 3 10 1 1 10 4 13 3
Fixed percent of earnings 89 68 i) 25 10 1 1 10 4 13 a1
C054 33 29 - 2} ) | ¢) 1 - 1/ 0 1 4
55-59 . 1 1 - - = - - - - 1 - .
60-64 .. 24 16 ; - 1 1] 0 1 8 2 2 8
65-69 .. 18 17 v) - 1 9/ QO - 1 iv) 6 2
70 or more 13 § - - 1 - (0) - 1) 0 3 8
Percent of earnings varies .. "1 Yo - - - - - - - - ny 40
Technical and clerical
Total ... 100 69 QO 24 3 15 6 1 7 3 W 31
Fixed percent of earnings 91 68 Q 24 3 15 6 1 7 3 10 23
1-54 36 32 0) 24 1 0) 4 - 1 0 2 3
55-59 . 1 1 - - - a : ar) i és 3
60-64 . 24 13 ~ - 1 3 1 1 3 1 a] ou
65-69 17 16 ) - 1 9 ) - 2 0) 2 2
70 or more 14 7 - - Vv) 2) 0 - 1 1 2 7
Percent of earings varies .. 9 1 - - - - - - - - 1 8
Production

Total ... 100 72 1 12 4| 47 9 1 | 12 4] 12] 28
Fixed percent of earnings .. 93 72 1 12 4| 417 9 1 | 42 4| 4] 24
50-54 31 27 1 12 2 3 2 1 3 ¢) 2 4
56-59 2 2 - - - | 0 - - 1 1 : :
60-64 24 17 - - Q) 2 5 Q) 5 1 3 8
65-69 23 20 - -1 0 1 1| 0 3] - 5 3

70 of more 12 6 - - 1 Y) 1 - 1 1 2 7
Percent of earnings varies 7 0“ - - - () - - - - uy) 6

T Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not
equal totals. Dash indicates no employees in this category.
19



Table 34. Private pension plans: Percent of full-time participants by minimum age and associated service requirements for
normal retirement,’ private Industry, 1981 :

Profes- Protes- |
sional |Technical sional_| Technical
a!) Produc- “!) Produc-
, i 2 | All par | and ad- [and cleri-| F i 2 | All par- | and ad- jand cleri-| FOCUS”
Age and service requiroments* | yespants | ministra- | cl par- | YO" Per] Age and service requirements* | scams | ministra | cal par | YOR P&
tive par- | ticipants | "Pan" tive par- | ticipants | "°!P*
ticipants ticipants |
|
Total .. 100 100 100 100 |lAge 62° .. 18 19 18 19 |
No service requirement ... 4 4 5 3 |
No age requirement 14 6 7 22 5 years’ service 1 1 1 1
Less than 30 years’ service ) ro) - (0) 10 years’ service 8 7 6 10
i 30 years’ service i4 5 7 24 15 years’ service 2 2 2 1
I More than 30 years’ service ty) ) i) i) 20 or 25 years’ service 2 2 1 2
I 30 years’ service 2 2 2 1 i
4 7 4 3 i
2 6 3 () [Age 63-64 .. 3 1
25 years’ service ) “ oO re) No service requirement 1 1 3 rv)
| 30 years’ service 2 1 1 3 30 years’ service i) ) o) ro)
Age 56-59 .. 2 1 1 2 |lAge 65° .. 44 47 42
16 or 20 ye i 1 ) 0) 1 No service requirement 39 45 35
30 or more years’ service 1 1 1 5 years’ service 1 “ 1
j 10 years" service 3 2 5
Age 60° 10 13 13 6 15 years’ service oO ) iv)
No service requirement 2 4 3 1
10 years’ service 2 2 3 2 |[sum of age plus service ... 7 9 7 6
16 years’ service 1 2 2 1 Equals less than 80 2 2 2 2
20 or 25 years’ service o) “ 1 0 Equals 80 ) 1 ) 0)
30 years’ service 3 3 3 2 Equals 85 3 6 3 3
More than 30 years’ service 0) 1 1 0) Equals 90 or more 1 1 2 1
' * Normal retirement is defined as the point at which the participant * Includes 0.1 percent or less participants, who were in plans with
i could retire and immediately receive all accrued benefits by virtue of service requirements other than specified.
1 service and earnings, without reduction due to age. * Includes 2.1 percent or tess participants, who were in plans with
? if a plan had more than one age and service requirement, the earl __service requirements other than specified.
est age and associated service requirement was tabulated.
4 Includes 0.8 percent or less participants, who were in plans with NOTE: Because of rounding, sums of individual items may not equal
service requirements other than specified. totals. Dash indicates no employees in this category.
* Less than 0.5 percent.

32



Table 8. Paid holidays and vacations: Average number of
days for full-time participants, private industry, 1981

Professi- .
jonal and} Techni.
an [onal andi cal and
Item partic. | 2amint | clerical
pants lve | partici-
Partch | ‘pants
pants

Paid holidays 10.2 96 | 105

Paid vacation by length of service:

6 months .. 3.2 45 3.9 23
1 year 88 | 104 95 iad
3 years .. 105 | 111 | 105 | 103
5 years .. 125 | 139 | 128 | 120
10 years 157 | 163 | 158 | 15.4
18 years 18.1 | 188 | 185 | 47.7
20 years 205 | 21.1 | 205 | 202
25 years 222 | 226 | 223 | 219

30 years" 227 | 233 | 228 | 224

" The average (mean) was essentially the same for longer lengths of
service.

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

Table 9. Paid vacations: Percent of full-time Participants by
length of service required to take vacation, private industry,
1981

Profes-
sional | Techni-
‘Alt par- |. and_| cal and | Produc-
Length of service requirement | icipants | adminis-| clerical jtion par-
trative | partici. | ticipants
partici- | pants
pants
Total . too | 100 | 100 | 100
With service requirement .. 98 7 98 99
4 month . 6 9 8 4
2 months 2 3 2 1
3 months 8 " 3 6
4.5 months .. 2 2 2 1
6 months 39 45 49 31
7-44 mont 2 1 3 2
1 year 40 25 26 53
Over 1 year 0) - - ()
Without service requirement .. 2 3 2 1
Service requirement not determin-
able .. rv) - - QO

© Less than 0.5 percent.

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

14

Table 10. Paid personal leave: Percent of full-time
employees by number of paid personal leave days provided
Per year, private Industry, 1981

Profes-
sional | Techni-
cal and | Produc-
Number of days aves clerical | tion em-
Ploye ‘employ- | ployees
employ-| ees
ees
Total . 100 | 100 | 100 | 100
Provided personal leave 23 | a1 | a2 | 44
Less than 2 days 2 1 2 2
2 days .. 5 6 8 3
3 days . 3 3 4 2
4 days 6 6 8 5
5 days . 3 6 3 2
More than’ days . 2 3 3 1
No maximum specified 3 8 3 1
Not provided personal leave ... 77 | 69 | 63 | 66

* Workers were provided as much personal leave as they needed.

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

Table 11. Short-term disability coverage: Percent of
full-time employees by participation in accident and sickness
Insurance plans and paid sick leave plans and by type of
Plan, private industry, 1981

Profes-
sional | Techni-
and | cal and | Produc-
adminis-| clerical | tion em-
trative | employ- | ployees
employ-| ees
ees

All em-

Type of plan ployees

Total

Accident and sickness insurance

OMY a 27 2 4 48
Noncontributory’ . 23 1 3 42
Paid sick leave only . 42 64 61 23

Combined accident and sickness
insurance/paid sick leave 24 28 at 18

Noncontributory’ accident and
sickness insurance .. 7 20 23 14

No accident and sickness insurance

OF paid Sick 1eAVE wenn 7 6 4 4

Provided at no cost to employee.

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



sive procedures—inlays, crowns, and orthodon-
tia—were often provided at 50 percent of the reasonable
and customary charge.

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

Three percent of dental plan participants had serv-
ices covered by an incentive schedule. Under this ar-
rangement, the percentage of dental expenses paid by
the plan increased each year if the participant was ex-
amined regularly by a dentist.

Unlike other basic benefits, a slight majority of the
participants in dental plans were required to pay a speci-
fied deductible amount before the plan paid any bene-
fits (table 23). The most common requirement was a
$25 or $50 deductible to be met by the participant each
year. However, some plans required the participant to
pay a deductible (usually $50) only once while a mem-
ber of the plan rather than every year. White-collar
workers were more likely than production workers to
have plans with deductible requirements.

Eighty-eight percent of dental plan participants were
enrolled in plans that limited the amount of payment
each year by specifying a yearly maximum benefit (ta-
ble 24), The most common maximums were $1,000,
$750, and $500. Orthodontic services usually were sub-
ject to a lifetime maximum, most commonly $500. How-
ever, the incidence of lifetime maximums of $1,000 for
orthodontia grew by 50 percent between 1980 and
1981—to 21 percent of participants in dental plans.

Vision care, About one-fifth of the participants in
health insurance plans received some form of vision
care benefits. The type and number of services covered
varied, with most of the participants in plans featuring
coverage for eye examinations, eyeglasses, and contact
lenses (table 25). Production workers were the most
likely to receive vision care benefits and had the most
liberal benefits; nearly four-fifths of those covered by
vision plans received this range of services.

Mental health coverage. For two-fifths of the partici-
pants in plans with mental health benefits, coverage for
hospital care was subject to more stringent limitations
than for hospitalization due to other illnesses (table 26).
This restriction was usually on the duration of the hos-
pital stay (often only 30 days for mental health care as
compared to 120 or 365 days for other illnesses). Even
more restrictive was coverage for mental health care
outside the hospital (i.e., psychiatric office visits); less
than one-tenth of the participants had this type of care
covered to the same extent as other illnesses. Outpatient
mental health care was usually covered in the major

medical portion of a plan where there were often ceil-
ings on the amounts payable for mental health care for
each visit and/or each year, and where the coinsurance
for nonhospital treatment of mentai illnesses was often
50 percent, compared to 80 percent for physical
illnesses.

Funding medium. Commercially insured plans pre-
dominated in all the health benefit areas; the heaviest
concentration was in major medical plans (table 27).
Blue Cross-Blue Shield was an important funding me-
dium for basic benefits, but was less important in fund-
ing major medical benefits. Some firms paid for medi-
cal expenses of their employees directly out of their
own funds (self-insured). Although only 18 percent of
the health insurance participants had some portion of
their plan (usually major medical) funded through self-
insurance, this funding arrangement gained importance
since 1979, particularly among production workers.
Only about 3 percent of health insurance participants
covered by the survey were enrolled in Health Main-
tenance Organizations.”

Life insurance

Nearly all full-time employees participated in life in-
surance plans in 1981; four-fifths had the cost of a ba-
sic plan paid entirely by the employer. The amount of
basic coverage for three-fifths of all life insurance par-
ticipants was based on earnings (table 28), enabling the
level of protection to automatically increase with a rise
in earnings. Earnings-based formulas were much more
prevalent among white-collar workers than among blue-
collar workers. Employee contributions for earn-
ings-based coverage, when required, were commonly
expressed as a fixed rate for each $1,000 of insurance."

The most common method of tying life insurance
protection to earnings was to multiply the employee’s
annual earnings by a factor of 1 or 2 and round the
product to the next $1,000. About one-half of all em-
ployees in multiple-of-earnings plans had insurance
equal to annual earnings, with over three-tenths having
coverage equal to twice annual earnings (table 29). Pro-
fessional-administrative employees were more likely
than the other groups to have insurance equal to two
or more times earnings. There was no upper limit on
insurance for a majority of participants in plans based
on earnings.

Most of the remaining life insurance plan participants
(one-third) received a flat amount of insurance, regard-

© Health Maintenance Organization is a prepaid health care plan
that delivers comprehensive medical services through its own pro-

viders (physicians, hospitals, etc.) to an enrolled population for a fixed"

periodic fee.

"Rates commonly ranged from 6 cents to 60 cents per $1,000. The
more expensive plans frequently accumulated an amount of perma-
nent life insurance, which remained in force after leaving employ-
ment without further payment of premiums.

|



Table 29. Life insurance: Percent of full-time participants in plans with multiple-of-earnings formulas by amount of basic
insurance and maximum coverage provisions, private industry, 1981

{n plans In plans with maximum coverage
Formula Total without
i maximum All Less than | $50,000- | $100,000- | $250,000 or
coverage $50,000 | $99,909 | $249,999 more
All participants
Total .. 100 56 44 3 7 22 "1
Life insurance is equal to annual earnings times:
Less than 1.0 2 2 1 0) - 1 “)
1.0 46 30 16 1 2 10
‘ 0 0 ts) - - - a)
15 8 3 5 - 1 3 1
1.61.9 Y - 10) 0 a a -
20 35 19 17 1 3 7 6
More than 2.0 8 3 5 1 1 1 2 '
Professional and administrative
Total -.....escee 100 56 44 3 8 22 12
Life insurance is equal to annual earings times:
Less than 1.0 2 2 0 iV) - iv) 0
40 24 16 1 3 40 3
() Y (Vv) - - - 0)
9 4 5 1 2 1
: (0) - ) 0 - - -
20 40 22 18 3 8 6 i
More than 2.0 9 4 5 1 1 2 2 |
Technical and clerical
Total . 100 54 46 3 7 24 12
Life insurance is equal to annual earnings times: i
Less than 1.0 2 1 1 ) - y) - |
1.0 44 28 16 1 3 10 2 |
14 rv) ) iv) - - - i)
15 8 3 5 ~ 1 4 1
164.9 Q) = Y Vv) ~ - ~
20 936 7 19 1 3 8 8
More than 2.0 9 5 4 1 1 1 2
Production
Total... 400 59 at 4 7 a 8
Life insurance is equal to annual earnings time:
Less than 1. 3 2 1 0 - 1 0
563 37 16 2 10 2
1 (0) 1 - - - 1
7 2 5 - 1 3 )
30 7 13 1 2 6 4
6 1 5 4 2 1 1
* Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal

totals, Dash indicates no employees In this category.

29


Table 23. Health insurance: Percent of full-time participants
in plans with dental benefits by deductible provision,’ private
Industry, 1981

Profes-
sional | Techni-
and | cal and | Produc-
at pte |@dminis-} clerical |tion par-
ipants | trative | partici- |ticipants

Type of deductible

particl- | pants
pants i
Total 100 | 100 | 100 | 100
Subject to basic dental deductible ...) 54 60 60 48
| Yearly deductible 43 49 47 38
Under $25 i) iv) 0) i)
| . 20 24 19 18
4 2 3 3 2
| 18 19 19 7
H 3 3 5 2 i
i
i iW abl 14 10
fi 1 4 1 1
; 10 9 12 9
H r7) 0 is) 1
| Subject to major medical
y deductible 2 2 38 2
i ‘Subject to copayment provisions ) ) o) 1
No deductible or copayment 43 37 36 50

T Excludes soparate deductibles for orthodontic procedures.

® Amount of deductible described is for each insured person. In some
plans, the individual and family deductibles are identical.

* Less than 0.5 percent.

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

Table 24, Health insurance: Percent of full-time participants in plans with dental benefits and in plans with orthodontic
coverage by maximum amount of insurance, private industry, 1981

Yearly maximum for all procedures excluding orthodontia Lifetime maximum for orthodontia
: Professional Professional
Dollar amount All and ae nial | Production All and | Technical | production
participants administrative | SO, Sere | participants | participants [administrative] S74 CNC | participants
Participants | Participa participants | Particip
100 100 100 100 400 100 100 100
Maximum specified .. 88 87 85 90 95 96 96 95
Less than $500 . 1 1 t 1 1 1 1 1
§ 12 12 15 1" 31 30 92 32
$601-$749 2 2 2 2 8 4 5 "1
$750 .. 22 20 19 24 18 28 19 12
i $751-$999 1 1 1 1 13 8 6 20
} $1,000 43 45 40 44 24 22 27 18
i $1,001-81,499 2 2 2 2 1 1 4 1
i $1,500 3 2 3 3 1 i 1 1
t Greater than $1,500 « 2 2 2 3 1 o) 1 1
| t No maximum . 12 13 15 10 5 5 4 5
H * “Amount of maximum specified Is for each insured person. NOTE: Because of rounding, sums of individual items may not equal
* Less than 0.5 percent. totals.



they needed with no maximum number of days speci-
fied. In cases where personal leave was part of an “an-
nual leave” plan and could not be shown separately, it
was reported as vacation time. The survey did not cover
the extent of informal personal leave.

Short-term disability benefits

Workers may be protected against loss of income due
to a short-term disability through paid sick leave, usu-
ally providing 100 percent of normal earnings, or acci-
dent and sickness insurance, usually providing 50 to 70
percent of earnings. A substantial proportion of workers
had both types of protection. Table 11 shows that ac-
cident and sickness insurance was most often provided
to production workers; nearly one-half of all produc-
tion workers in 1981 had this insurance alone, and an-
other one-fifth had it in combination with a paid sick
leave plan. In contrast, sick leave was more often a
benefit for white-collar workers; over six-tenths of these
workers had paid sick leave plans only, and another
three-tenths had both paid sick leave and accident and
sickness insurance.

Seven percent of all employees in the survey had no
short-term disability coverage. Production workers
were twice as likely as white-collar workers to be with-
out this protection.

Sick leave plans. The majority of employees under paid
sick leave plans had a specified number of days avail-
able each year for absence due to illness or injury (ta-
ble 12). The number of paid sick leave days, ranging
from 2 or 3 days to 120 days or more among the various
plans reported, increased only slightly with length of
service (table 13). White-collar workers commonly had
more liberal plans than production workers. For exam-
ple, white-collar workers most frequently had from 10
to just under 30 days of paid sick leave, while the most
common provisions for production workers were from
5 to just under 10 days.

Eighteen percent of all employees had limits on paid
sick leave for each disability. The number of days of
paid leave under a per-disability plan generally increased
sharply with length of service. For example, after 1
year of service, workers with this coverage commonly
had from 5 to 30 days per disability, while after 5 years,
the number usually ranged from 60 to 120 days; after
15 years of service, the most common coverage ex-
ceeded 120 days.

Most paid sick leave plans provided the employee
with full pay for at least a portion of the time while on
sick leave. In addition to the above full-pay coverage,
about one-fourth of the participants were in plans pay-
ing part of the employee’s regular salary after full-pay
provisions were exhausted. These partial pay provisions
were much more common in per-disability plans (50
percent) than in annual plans (15 percent).

Eighty-two percent of the workers covered by sick
leave plans received benefits beginning on the first day
of illness or disability. The remainder typically had to
wait 1 to 5 workdays, with the waiting period often
decreasing to zero after 10 to 15 years of service.

Accident and sickness insurance. Payments from acci-
dent and sickness insurance were either reflective of
earnings or were scheduled dollar amounts (table 14).
Of those workers covered by accident and sickness
plans, 60 percent of the production worker participants
and 84 percent of the white-collar participants could
receive a benefit based on earnings. These plans pay
either a percent of earnings (usually 50 to 70 percent)
or a dollar amount that varies by earnings. Plans with
percent of earnings formulas often had limits on the
amount of the weekly benefit. Seventy-one percent of
the workers in these plans would receive less than the
stated percent of earnings if the payment would exceed
a specified amount, which varied from under $80 to
over $300 (table 15).

Thirty-nine percent of production worker partici-
pants, on the other hand, were in plans paying fixed
weekly dollar sums. For these employees, the level of
insurance varied from less than $60 to over $140 a week,
with no high concentration of participants in any one
benefit bracket.

The number of weekly payments possible from an
employee’s accident and sickness plan was limited for
each disability. Fifty-three percent of all participants
could continue receiving benefits for 6 months, as long
as they remained unable to work. Although this pro-
portion was fairly consistent in all three employee
groups, the percentage of white-collar participants cov-
ered for one year or more was considerably lower than
among production worker participants.

Accident and sickness insurance plans usually require
an initial waiting period before payments are made from
the plan (often 7 days after the worker becomes sick
or injured). Nevertheless, workers frequently receive
payments immediately since many plans waive the wait-
ing period if the illness or injury results in hospitaliza-
tion or if absence is due to an accident. Also, workers
with sick leave often can use it to cover the waiting
period. For some employees, accident and sickness in-
surance begins the day after sick leave runs out in a
coordinated short-term disability benefit.

Workers in two States, New Jersey and New York,
are covered by mandatory temporary disability insur-
ance plans that are partially employer financed. Both
of these plans pay benefits based on a percentage of the
workers’ earnings for up to 26 weeks with a limit on
the weekly benefit ($95 in New York and $133 in New
Jersey in 1981).’

(See footnote 3 on next page.)



Funeral leave, military leave, parking (provided at
no cost or below commercial rates), and educational
assistance were available to over one-half of the em-
ployees. Fewer than one-fourth of the employees were
eligible for profit sharing, company automobiles for pri-
vate use, recreation facilities, and gifts.

Work schedules

Forty-hour straight-time weekly work schedules ap-
plied to 85 percent of the employees covered by the
survey (table 2).' Twenty-one percent of the profes-
sional-administrative employees, 29 percent of the tech-
nical-clerical employees, and 5 percent of the produc-
tion workers had shorter work weeks. Less than 1 per-
cent of the work force was scheduled to work other
than a 5-day week.

Paid lunch and rest periods

Ten percent of the employees received formal paid
lunch periods, and 75 percent were provided formal
paid rest time, for example, coffee breaks and clean-up
time (tables 3 and 4). Both benefits were more common
among production employees than among the two other
occupational groups. The incidence of paid rest time
ranged from 60 percent for professional-administrative
employees to .82 percent for production employees.
Only 4 percent of the white-collar workers had paid
lunch time compared to 15 percent of the production
workers. The study did not cover informal arrange-
ments.

Among those receiving paid rest periods, production
employees typically received 20 to 30 minutes a day,
while professional-administrative and technical-clerical
employees generally were eligible for 30 minutes. Most
commonly, paid rest was provided as two daily breaks
of 10 to 15 minutes each. Production employees who
were covered by paid lunch plans usually received 20
to 30 minutes a day.

Paid holidays

Virtually all full-time employees in each occupational
group were provided ‘paid holidays, averaging about 10
days per year (table 5). Extended holiday plans, such
as the Christmas-New Year’s Day period provided in
the auto industry, floating holidays, and “personal holi-
days,” such as employee birthdays, were included in
the holiday plans reported.’

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

7As a result of United Auto Workers agreements negotiated with
auto manufacturers in early 1982, 9 paid personal holidays plus 1 day
of extra holiday pay in December were eliminated for many hourly
workers. In a similar move, | paid floating holiday in December and
6 to 9 supplemental vacation days were eliminated for many salaried
personnel. The 1982 employee benefits study will reflect these
changes.

When a holiday falls on a scheduled day off, such as
a Saturday or Sunday, another day off was regularly
granted to 87 percent of the white-collar employees and
77 percent of the production employees (table 6). An-
other 7 percent of the white-collar employees and 14
percent of the production employees received either
another day off or an additional day’s pay, depending
upon the day on which the holiday falls. Most of the
remaining participants regularly received an additional
day’s pay in lieu of the holiday.

Paid vacations

After 25 years of service, full-time employees com-
monly received at least 25 days of paid vacation annu-
ally (table 7). Length-of-vacation provisions averaged
8.8 days after | year; 15.7 days after 10 years; and 20.5
days after 20 years of service (table 8). Plans covering
professional-administrative employees were generally
the most liberal. About 55 percent of the professional-ad-
ministrative employees, for example, became eligible
for at least 15 days of vacation after 5 years of service;
this compared with 33 percent of the production em-
ployees. Virtually all white-collar employees received
their regular salaries or earnings during vacation pe-
riods compared to seven-eighths of the production.em-
ployees. The remaining production employees were
provided vacation payments based on a percentage of
annual earnings.

Nearly all of the employees covered by vacation plans

had to work for several months before being able to _

take a vacation. The most prevalent length-of-service
requirement was 6 months for white-collar employees
and 1 year for production employees (table 9).

Anniversary year bonus vacation days were included
in the count of regular vacation time. Extended vaca-
tion plans, however, were excluded. These’ extended
plans principally covered production. workers in the
steel, aluminum, and can industries, Under sucti plans,
employers contribute a specified amount to a fund that
provides 13 weeks of vacation every 5 years to *Sen-
ior Group” employees (the one-half of the employees
with longest continuous service) and 3 weeks, in addi-
tion to regular yacation, every 5 years to “Junior
Group” employees.

Personal leave

Formal personal leave, which allows employees to
be absent from work with pay for a variety of reasons
not covered by other specific leave plans, was provided
to nearly one-fourth of the employees. While nearly
one-third of white-collar employees received personal
leave, only one-seventh of the production employees
had this benefit. Most commonly, employees provided
personal leave were eligible for 2 to 5 days, averaging
almost 4 days per year (table 10). A small proportion
of employees, primarily in the professional-administra-
tive group, were provided as much personal leave as



Table 12. Paid sick leave: Percent of full-time employees by
type of provision, private industry, 1981

Profes-
sional | Techni-
‘All em. | 294 | cal and | Produc-
Provision Joyees |@dminis-| clerical j tion em-
Ploy trative | employ- | ployees
employ-| ees
ees
Total .. 100 | 100 | 100 j 100
Provided sick leave 65 92 92 a
Sick leave provided on:
An annual basis only’ 46 58 65 32
A per disability basis only’ .. 15 26 2 8
Both an annual and per
disability basis 3 4 5 1
No specified maximum numt
of days® 1 4 1 i?)
Not provided sick leave .... 35 8 8 59

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

2” Number of days of paid sick leave is renewed for each illness or di

ability. This number may vary by length of service.
2" Unlimited sick leave, provided to employees as needed.

* Less than 0.5 percent.

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

tals.

15



About nine-tenths of the participants in basic hospi-
tal plans had limited duration of coverage. Slightly over
seven-tenths had plans which specified the maximum
number of days covered per confinement, most com-
monly 120 or 365 days. Most of the remaining plans
limited the duration of coverage by specifying a maxi-
mum dollar amount per confinement.’ The great ma-
jority of hospital stays fall within these basic plan limi-
tations. Additional coverage was usually available un-
der a major medical benefit for cases that exceeded
these limitations.

Although in the vast majority of cases hospital ex-
penses are covered by basic benefits alone or in com-
bination with major medical, there is some movement
toward covering these expenses only under major medi-
cal insurance. In 1981, 13 percent of the participants in
health insurance plans had only major medical cover-
age for hospital room and board (subject to coinsurance
provisions), compared with 7 percent in 1979.

Surgical coverage. Like hospital room and board
charges, surgical benefits were most often covered by
basic benefits. One-fourth of participants, however, re-
ceived payments for surgery only under the cost-shar-
ing provisions of a major medical plan. This appeared
to be an upward trend, similar to the rise noted previ-
ously for hospital expenses.

Three-fifths of the participants with basic surgical
benefits were in plans covering the physician’s fee up
to the “usual and customary” charge for the procedure
performed (table 19). The remainder were covered by
a schedule of payments for surgical procedures, listing
the maximum amount covered for each operation. Cov-
erage of surgical expenses varied only slightly by oc-
cupational group, with professional-administrative
workers receiving somewhat more liberal coverage than
the other groups.

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

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

Major medical benefits were not paid until the par-
ticipants paid a certain amount of the expenses, the de-
ductible portion. The deductible amount was usually
$100 or less, payable each year (table 20). Its purpose
was to keep the premium cost down and discourage
unnecessary use of medical services.

Once the worker had met the deductible requirement,
the plan paid a specified percentage (coinsurance) of
incurred expenses. Nine-tenths of the participants were
in plans that paid 80 percent of expenses, with the re-
maining 20 percent to be paid by the worker (table 21).
For three-fifths of the participants, however, the per-
centage paid by the plan increased to 100 percent after
a specified level of expenses was incurred during a year.
For example, a plan might pay 80 percent of the first
$5,000 of covered expenses and 100 percent thereafter,
thus limiting the employee’s “out-of-pocket” cost to
$1,000 (in addition to the deductible). By limiting pay-
ments on the initial covered expenses during an illness
or accident, insurers of major medical policies are able
to absorb the expenses of the infrequent catastrophic
illness without substantial increases in premium costs
to the employer or worker. The appeal of this type of
protection contributed to a 13-percentage-point increase
in “stop-loss” coverage between 1979 and 1981. Pro-
duction workers were less likely to have this provision
than white-collar workers.

Dental coverage. Employer-provided dental care has
increased in recent years. In 1981, three-fifths of the
participants in health insurance plans received cover-
age for dental expenses, compared with one-half two
years earlier.

‘Nearly all dental plans covered a wide range of serv-
ices including examinations, X-rays, and restorative pro-
cedures such as fillings, periodontal care, and inlays.
Participants in plans covering orthodontic expenses, at
least for dependent children, increased to 66 percent in
1981 from 62 percent the previous year (table 22).

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

° Comprehensive major medical plans can be broken down into strict
and modified varieties. All expenses covered are subject to the de-
ductible and coinsurance provisions under the strict version whereas
the modified version might cover hospital, or hospital and surgical,
expenses in full up to a specified dollar amount without the applica-
tion of a deductible. (Also see footnote 8.)



Table 17. Health insurance: Percent of full-time participants by coverage for selected categories of medical care, private

industry, 1981

Provided care
5 Not provided
Category of medical care Total a By basic | By mor cubase oe
benefits only’ | medical only* | or medical
All participants
Hospital room and board ... 100 100 18 13 69 i)
Hospitalization—miscellaneous services 100 100 16 14 70
Extended care* 100 60 25 22 12 40
Surgical 400 400 36 24 40 i)
Physician visits—in hospital .. 100 100 15 35 49 ic)
Physician visits—office - 100 95 5 81 9 5
Diagnostic X-ray and laboratory 100 100 22 32 48 a)
Prescription drugs 100 97 " 81 5 3
Private-duty nursing 100 93 3 89 i 7
Mental health care .. 100 99 10 13 76 1
Dental .. 100 61 87 4 - 39
Vision 100 22 20 2 - 78
Professional and administrative
Hospital room and board 1900 100 15 13 73 i)
Hospitaiization—miscellaneous services 100 400 13 14 73 i)
Extended care* 100 6t 26 22 14 39
Surgical 100 400 36 25 39 i)
Physician visits—in hospital .. 100 400 14 38 48 Q
Physician visits—office 100 99 8 87 7 1
Diagnostic X-ray and laboratory 100 100 19 36 45 )
Prescription drugs 100 98 5 86 7 2
Private-duty nursing 100 99 4 95 1 1
Mental health care 100 100 5 13 et 0)
Dental . 400 67 62 5 -
! Vision .. 400 7 14 3 - 83
Technical and clerical
: Hospital room and board 100 100 15 16 69 )
H Hospitalization—miscellaneous services 100 100 12 7 70 ra)
| Extended caro* 400 60 23 24 13 40
| 100 100 33 28 39 iV)
| 100 100 14 42 44 a)
| 100 99 6 85 8 1
| 100 100 19 37 44 i)
Prescription drugs 100 97 6 85 6 3
i Private-duty nursing 400 98 5 93 1 2
| Mental health care 400 99 7 16 7 1
| 400 60 55 5 - 40
! 400 18 15 3 - 82
Production
Hospital room and board 100 100 20 12 68 ie)
Hospitalization—miscellaneous services 100 400 19 13 69 io)
Extended care 400 59 27 21 1 4
Surgical 100 100 38 22 40 @
a Physician visits—in hospital 100 100 7 31 62 (9)
Physician visits—oftice .. 100 90 5 76 10 40
Diagnostic X-ray and laboratory 100 100 24 28 48 ()
Prescription drugs 100 96 17 76 3 4
: Private-duty nursing. 100 88 3 85 ° 12
Mental health care 100 99 15 12 73 1
Dental 100 59 56 3 - 4
Vision 100 26 24 2 - 74,

TA provision was classified as a basic benefit when it related to the
initial expenses incurred for a specific medical service. Under these pro-
visions, a plan paid covered expenses in one of several ways: (1) In
full with no limitation; (2) in full for a specified period of time, or until a
dollar limit was reached; or (8) a cash scheduled allowance benefit that
provided up to a dollar amount for a service performed by a hospital or
physician. For a specific category of care, a plan may require the par-
ticipant to pay a specific amount each disability or year (deductible) or a
nominal charge each visit or procedure (copayment) before reimburse-
ment begins or services are rendered.

* Major medical benefits cover many categories of expenses, some

21

of which are not covered under basic benefits and others for which ba-
sic coverage limits have been exceeded. These benefits are character-
ized by deductible and coinsurance provisions.

* Less than 0.5 percent.

* Medical care provided by an extended care facility or home health
care agency. This care is usually provided to a patient who was previ-
ously hospitalized and is recovering without need of the extensive care
provided by a general hospital.

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


Employee Benefits in Medium and
Large Firms, 1981

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

Bureau of Labor Statistics
Janet L. Norwood, Commissioner

August 1982

Bulletin 2140

oe



imputations for the number of plan participants were
made for cases where the number of participants was
not reported (less than 1 percent of all plans). Each of
these participant values was imputed by randomly se-
lecting a similar plan from another establishment in a
similar industry and region. The participation rate from
this plan was then used to approximate the number of
participants for the plan which was missing a participa-
tion value but was otherwise usable.

For other forms of missing data (or nonresponse) an
adjustment was made using a weight adjustment tech-
nique based on sample unit employment. Under such a
techique, a model is assumed in which the mean value
of the nonrespondents is equal to the mean value of the
respondents at some detailed “cell” level. These cells
are defined in a manner that groups establishments to-
gether which are homogeneous with respect to the
characteristics of interest. In most cases, these cells are
the same as those used for sample selection. The spe-
cific weight adjustments used in this survey were cal-
culated in four stages for each occupational group and
benefit area combination. This allowed a maximum
amount of data from partially completed establishment
reports to be incorporated into survey estimates. For
example, data on the number of occupational group
employees in an establishment or participants in a plan,
or information on the existence of a plan could be used
even if the plan provisions could not be obtained.

Survey estimation methods

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

1 Pi

Where n = sample size
Y} = value for the characteristic of the i" unit
P; = the probability of including the i" unitin

the sample

This basic form of the estimator, after modification to
account for the weight adjustment factor, fi, developed
during the adjustment for nonresponse, was

Where nj = number of responding units '
weight adjustment factor for the i'" unit

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

Reliability of estimates

The statistics in this report are estimates derived from
a sample survey. There are two types of errors possi-
ble in estimates based on a sample survey—sampling
and nonsampling. The “accuracy” of a survey result is
determined by the joint effects of sampling and non-
sampling errors.

Sampling errors occur because observations are made
from only a sample, not the entire population. Since
this survey was based on a probability sample, estimates
of sampling error for the survey estimates can be pro-
duced directly from the survey data after appropriate
procedures have been implemented. Calculations of
sampling errors for the estimates will be part of future
publications.

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

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



was also due to a change in a major pension plan cov-
ering hourly employees where “any age after 30 years
of service” was added as an alternative requirement. (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 for-
mula tabulated.)

Early retirement. Virtually all of the employees par-
ticipating in a pension plan could retire early and re-
ceive an immediate, reduced pension (table 35). The
amount of an early retirement pension is lower for two
reasons: First, fewer years of service are applied to the
benefit formula because an employee has not worked
until normal retirement age. Second, because benefits
begin at an earlier age, the retiree is expected to receive
plan payments over a longer period of time. The nor-
mal benefit is either adjusted on an actuarial basis or
reduced by a percentage for each year between the ac-
tual and normal retirement ages. In some cases, em-
ployer approval is required for early retirement benefits.

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

A growing percentage of employees may first be-
come eligible for early retirement when their age and
years of service equal a specified sum. Age plus serv-
ice requirements therefore provide a range of possible
retirement dates for employees with long careers. One-
tenth of pension plan participants qualified for an early
retirement if the sum of their age and service totaled
85.

White-collar employees generally were permitted to
Tetire earlier than production workers. Nearly four-
fifths of the white-collar workers could, with specified
years of service, retire either at age 55 or at any age,
while three-fifths of the production workers had plans
with similar requirements.

Disability retirement, A career-ending disability may
entitle an employee to a pension at an earlier than nor-
mal age. If the disability satisfies the plan’s definition
of total disability, pension benefits often begin immedi-
ately. When other employer-provided sources of dis-
ability income are provided, such as long-term disabil-
ity insurance, the disability retirement benefit might be
deferred until other forms of income have ceased.
Eighty-eight percent of pension plan participants were
covered by disability retirement provisions in 1981 (ta-
ble 36). Employees in plans with immediate disability
retirement outnumbered those in plans with benefits de-
ferred to normal or early retirement age by 2 to 1.

Production workers with disability retirement cov-
erage were usually in plans with immediate benefits,
while white-collar workers were equally likely to be
covered by deferred disability retirement benefits. The
latter group was usually provided with long-term dis-
ability benefits ranging from 50 to 60 percent of earn-
ings or more at the time of disability—more than gen
erally provided by pension plans with immediate dis-
ability retirement." Furthermore, most deferred retire-
ment benefits were greater than immediate pensions,
primarily because the time during which long-term dis-
ability benefits were paid was typically added to an
employee’s length of service for computation of pen-
sion benefits.

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

Postponed retirement. Employees who continue on the
job after age 65 rarely receive private pensions until
their actual retirement. Moreover, postponed retirement
frequently is not reflected in the size of pension bene-
fits. Fifty-eight percent of all participants were in plans
with benefit formulas that excluded credit for all serv-
ice after. age 65 (table 37). Of the 42 percent that re-
ceived credit for such service, 16 percent were subject
to limits on the number of credited years (frequently,
only years up to age 68 or 70). However, a number of
Plans with earnings-based benefit formulas did Tecog-
nize earnings levels after age 65, even when service was
not credited for these years.

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

Among employee groups, production workers were
more likely than white-collar employees to receive full
credit for service after age 65. This was particularly
true for those workers in multiemployer plans, estab-
lished by collective bargaining agreements and provid-
ing for employer contributions to the pension fund for
covered employees regardless of age.

Cost-of-living adjustment. Only about 3 percent of all
participants were in plans that provided for automatic
increases in pension benefits to compensate for rises in

"For a more complete discussion of disability retirement, see Donald
Bell and William Wiatrowski, “Disability Benefits for Employees in
Private Pension Plans,” Monthly Labor Review, August 1982.

ah



i
|
i

less of earnings: One-half of all production worker par-
ticipants were covered by a uniform amount, compared
with less than one-fifth in each of the other two groups.
Two-thirds of the workers with a flat amount of life
insurance were provided at least $5,000 but less than
$20,000 of coverage (table 30). White-collar employees
had a larger concentration of participants insured for
flat amounts of $20,000 or more than blue-collar
employees.

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

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

In addition to basic coverage, some employers of-
fered their workers supplemental life insurance that was
at least partially employer financed. Only a small por-
tion of employees were participants in these plans,
which generally required employees to share in the
financing.

Another kind of coverage available to the workers
was life insurance on their spouses or unmarried de-
pendent children. This type of coverage is becoming
more popular; nearly one-fifth of life insurance partici-
pants had dependent coverage in 1981, up 50 percent
since 1980. In most.cases the employee paid part of the
cost.

After retirement, basic life insurance coverage was
continued for life for almost two-thirds of all partici-
pants (table 31). However, for only 1 in 20 was the
preretirement amount of insurance continued in full.
The face value was reduced once, either upon or after
retirement, for one-third of participants; for one-fourth,
the benefit amount was periodically reduced as the re-
tiree grew older. Other forms of life insurance—acci-
dental death and dismemberment, supplemental, and de-
pendent coverage—were seldom available after
retirement.

Retirement pension plans

Eighty-four percent of the employees in the survey
were covered by private retirement pension plans, with
the employer usually paying the entire cost. Sixty-six
percent of covered employees were in plans with re-
tirement payment formulas based on earnings (table 32).
Most often the formula used earnings in the final years
of employment (terminal earnings formula), although
16 percent of participants had plans that used an aver-
age of career earnings. For 32 percent of pension plan
participants, dollar-amount formulas applied. Pension

plans with terminal earnings formulas typically provide
the highest rate of earnings replacement-and ‘those with
dollar-amount formulas generally pay the least. com-
pared with preretirement earnings.

Coverage varied by occupational group; the percent
of employees provided pension plans was somewhat
lower for production workers than for the other two
groups (82 percent compared with 88 for profes-
sional-administrative and 85 percent for technical-cleri-
cal). In addition, the basis of payment differed sharply
for production workers. While a large majority of
white-collar workers were provided pension plans based
on final earnings, dollar-amount formulas applied to
over half of the production employees. Although some
shift away from terminal earnings formulas was ob-
served between 1980 and 1981, this should not be con-
sidered a trend. The shift was mainly due to one large
case where final earnings were changed to a career
earnings formula for salaried workers and to a dol-
Jar-amount formula for hourly employees.

Thirty-two percent of all participants were in pen-
sion plans providing benefits from either primary or al-
ternative formulas, whichever was greater, down from
42 percent in 1980, Alternative formulas were often in-
cluded to provide at least a minimum level of benefits
for persons with short service or low earnings.

Private benefits and social security payments. Employers
providing private pension plans share the cost of the
social security coverage equally with their employees.
Because many plan sponsors feel that private pension
and social security benefits should not be duplicative,
formulas for calculating private pensions often contain
an offset provision requiring part of the social security
pension to be subtracted from the annuity. Other plans
have “integrated” formulas that replace less of an em-
ployee’s earnings on which social security taxes were
paid (the tax base), and more of the earnings in excess
of this base. Forty-three percent of all participants were
in plans with offset. provisions or integrated formulas,
a slight decline from 1980; most of these were in plans
using terminal earnings formulas (table 33). An offset
or integration provision seldom applied to alternative
formulas available within plans.

Normal retirement. Forty-four percent of all partici-
pants were covered by plans that specified age 65 as
the earliest age for retirement with full benefits (normal
retirement), and most of these employees were in plans
with no service requirement (table 34). Plans permit-
ting normal retirement at earlier ages (usually 60 or 62)
typically had length-of-service requirements.
Fourteen percent of all participants were covered by
plans permitting retirement at any age with 30 years of
service, up from 11 percent in 1980. The shift, which
affected only technical-clerical and production workers,



Table 47. Other benefits: Percent of full-time employees in establishments providing specified benefits by percent of
| eligible employees, private industry, 1981—Continued

i
; Benefit Total None eligible | Some we woe Not available
ii Technical and clerical employees
Miscellaneous benefits—Continued
Automobile... eve 100 91 2 1 6
Without reimbursing the company 700 92 1 ) 6
Partially reimbursing the company 100 93 1 1 6
Production employees
Paid leave:
Funeral leave 100 7 3 83 7
Military leave .. 100 27 2 64 7 H
Profit sharing, savings, and stock plans: + |
Profit sharing 100 7 4 13 6 t
Savings and thrift 400 75 5 14 6
Stock bonus plans 400 87 1 5 6
Stock purchase plans 100 83 1 9 7
Other stock plans’... 100 74 3 16 6
Income continuation plans:
Severance pay ... 100 60 5 28 8
Miscellaneous benefits:
Employee discounts .. 100 48 1 46 , 2
Gifts... 100 83 2 9 z
In-house infirmary .. 100 44 3 47 7
Retocation allowance 100 6i 5 26 8
Full defrayment of expenses 100 75 4 13 7
Partial defrayment of expenses .. 400 80 1 12 7
Recreational facilities 100 7 (a) 15 8
Full defrayment of cost .. 100 85 ® 7 8
Partial defrayment of co: 100 84 0 8 8
Subsidized meals ... 100 79 3 4 7
Full defrayment of cost .. 100 91 1 1 7
Partial defrayment of cost 100 82 1 10 7
Educational assistance 100 32 5 56 7
Full defrayment of expenses 100 2 3 18 7
b Partial defrayment of expense: 100 53 2 39 7
i PAKKING nennnnnsn 100 14 6 76 7
HF Provided at no cost 100 13 5 76 7
| Provided below commercial rates .. 100 92 1 1 6
Automobile esr nn 100 92 1 1 6
H Without reimbursing the company .. 100 91 1 1 6
I Partially reimbursing the company 100 93 io) @ 6
|
TGiher stock plans include Employee Stock Ownership Plans and NOTE: Because of rounding, sums of individual items may not equal
Tax Reduction Act Stock Ownership Plans. totals.

]
i
i
i ? Less than 0.5 percent.



Table 27. Health insurance: Percent of full-time participants by funding medium for selected types of coverage, private
i industry, 1981
H
- Basic | Basic | Basic | Major Basic | Basic | Basic | Major
Funding medium hospital’ | surgical’ | medical’ | medica? | 224! | hospital’ | surgical’ | medical’ | medica? | Dental
All participants Technical and clerical
Total .. 100 100 100 100 700 100 100 100 100 100
Provided 87 76 66 94 61 84 72 59 95 60
Biue Cross-Blue Shield 28 22 22 10 2 26 20 20 10 2
Commercial carrier .. 42 37 30 61 46 42 36 26 65 43
independent prepaid health
organization? 3 3 3 ia) 1 3 4 4 () 1
Self-insured 14 13 1 18 12 12 12 9 18 13
Combined 1 i) 0 1 ie) 1 “ iy) 1 0
Not provided ..cccmnennnnnnnnnnnaen 13 24 34 9 39 16 28 4 5 40
Professional and administrative Production
100 100 100 700 100 100 100 100 100 100
i 87 78 62 96 67 88 78 70 86 59
. 27 19 19 9 2 29 25 26 10 3
Commercial carrier 45 at 32 68 51 4 36 31 56 45
Independent prepaid health
organization? 3 3 3 oO 1 2 2 2 ) 1
Self-insured "1 1 8 16 13 15 15 12 19 "1
Combined 1 1 1 1 “ 1 oO iy) 1 oO
Not provided 13 25 38 4 93 12 22 30 14 at

‘A plan provision was classified as a basic benefit when it covered
the initial expenses incurred for a specific medical service. Under these
provisions, a plan paid covered expenses in one of several ways: 1) In
full with no limitation; 2) in full for a specified period of time, or until a
dollar limit was reached; and 3) a cash scheduled allowance benefit
that provided up to a dollar amount for a service performed by a hospi-
tal or physician. For a specific category of care, a plan may require the
participant to pay a lump sum amount each disability or year (deduct-

‘of which are not covered under basic benefits, and others for which ba-
sic coverage limits have been exhausted. These benefits are character-
ized by deductible and coinsurance provisions.

Independent prepaid health organizations include plans recognized
as Health Maintenance Organizations as defined by the Health Mainte-
nance Organization Act of 1973, and other organizations which deliver
health care under a prepayment plan.

* Less than 0.5 percent, «

imbursement begins or services are rendered. NOTE: Because of rounding, sums of individual items may not equal

| ble) or a nominal charge each visit or procedure (copayment) before re-
H ? Major medical benefits cover many categories of expenses, some totals.

Table 28, Life insurance: Percent of full-time participants
by method of determining amount of basic life insurance
and frequency of related coverages, private industry,

981

1
Profes-
sional | Techni-
‘and | cal and | Produc-
tem Ai bar. | adminis-| clerical |tion par-
icp trative | partici- |ticipants
partici- | pants
i pants

Total

Basic life insurance’
Based on earnings ..

Multiple .. 43 63 59 26
Graduated schedule 19 19 17 20
Flat amount .. 34 14 19 50
Based on service 4 4 4 4

Other . ore a -

t
With extended coverage during total

and permanent disability . | 99 99 99 99

With accidental death and

} dismemberment coverage 72 69 66 76

With dependent coverage 18 16 19 19

TA few participants received only accidental death and dismemberment
j insurance.
1 ? Less than 0.5 percent.

1
| NOTE: Because of rounding, sums of individual items may not equal to-
ae tals. Dash indicates no employees in this category.

| 28



Appendix B: Availability of
the Survey’s Data Base

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

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

Data users can purchase tapes with details of plans
for one benefit area or all, i.e., health, life, accident and
sickness, or long-term disability insurance; private re-
tirement pensions; and paid leave plans—lunch time,
test periods, holidays, personal leave, vacations, and
sick leave. (Table 47 presents all of the information that
was collected on the other benefits surveyed.) The plan
data file contains provisions for each plan which was
reported and for which usable information was avail-
able. However, plan identification numbers on the tape
are scrambled (and other identifying information is re-
moved) to protect the confidentiality of responding
establishments.

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

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

Benefit provisions obtained from plan documents are
recorded in coding manuals for insurance and pension
plans and then entered on the plan data file. A set of
coding manuals and instructions for completing them
are supplied to tape purchasers for interpretation of data
on the file.

The analysis of insurance and pension plans is ex-
tremely detailed. The following list of pension plan pro-
visions included on the data base gives an indication of
the breadth and depth of the information available on
the magnetic tapes. Insurance analysis is similarly
detailed.

Pension data base

Pian Participation Requirements
When plan participation begins
Maximum age for participation

Employee Contribution for Employee Benefits
Percent paid or monthly contribution

Normal Retirement Requirements
Minimum requirements - normal retirement
Minimum requirements - normal retirement with
supplemental payments

Computation of Benefits
Mode of computation
Eligibility for alternate formulas



Table 25. Health insurance: Percent of full-time participants
in plans with vision benefits by extent of benefits, private

industry, 1981

Profes-
sional | Techni-
‘Alt pare |_294__ | cal and | Produc-
Benefit teipnte|20minis- | clerical tion par-
ia ive | partici- | ticipants
pants
Total 100 100 | 100
Eye examinations only... 14 19 at 6
Examinations and eyeglasses . 9 9 10 9
Examinations, eyeglasses, and
contact lenses .. 69 60 49 78
Orthoptics only’ .. 6 9 "1 4
Other combinations 5 3 9 4

T Exercises to improve the function of the eye muscles.

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

tals.

Table 26. Health Insurance: Percent of full-time participants in plans with mental health benefits by extent of benefits,

private industry, 1981

sini Professional and adminis- Technical and clerical Production
All participants trative participants participants participants
Coverage limitation
Hospital | Outpatient | Hospital | Outpatient | Hospital | Outpatient | Hospital | Outpatient
care care care care care care care care
Total ... 100 100 100 100 100 100 100 100
With coverage 100 93 100 94 400 94 100 92
Covered the same as other
illnesses 59 10 63 8 6t 9 57 W
‘Subject to separate limitations! 41 83 37 86 39 85 43 81
Limit on days or visits 30 ral 26 20 28 23 33 20
Limit on dollars 15 62 14 64 16 63 15 61
Major medical coinsurance
limited to 50 percent 1 54 1 57 2 56 1 51
Other limitations ... 2 12 1 W 1 10 2 13
Not covered 6 7 (a) 6 a 6 co) 8
T The total is less than the sum of the individual items because erage

many plans had more than one type of limitation on mental health cov-

27

e.
?' Less than 0.5 percent.



Long-term disability insurance

Long-term disabilty insurance (LTD) continues the
income of employees during extended periods of dis-
ability. Generally, LTD begins after sick leave and ac-
cident and sickness insurance are exhausted and con-
tinues as long as the employee remains disabled, or until
retirement age.

Two-fifths of the employees studied were participants
in plans at least partially funded by the employer. The
degree of participation varied widely among the three
employee groups, from a majority of professional-ad-
ministrative workers and one-half of the technical-cleri-
cal workers to about one-fourth of the production
workers.‘ However, many employees not covered un-
der LTD are eligible for an immediate disability pen-
sion through their retirement plan.

Long-term disability benefits were usually a fixed
percent of monthly pay integrated with payments from
social security and other government programs such as
workers’ compensation. Almost two-thirds of the par-
ticipants were guaranteed 50 to 60 percent of earnings
in effect when work ceased due to disability (table 16).

Nearly one-fourth of the participants were in plans
that provided a benefit which was not a fixed percent
of earnings, but was either a variable percentage of
earnings or a scheduled dollar amount dependent on
earnings, length of service, or length of disability. Pro-
duction employees were over two times as likely to be
covered under these formulas as white-collar
employees.

For slightly over two-thirds of the participants, LTD
benefits were limited by plan maximums, by ceilings on
income during disability, or by a combination of both.
Plan maximums commonly ranged from $1,500 to $4,000
per month. Ceilings on disability income affected bene-
fits only if the amount payable from the LTD plan plus
income from other sources, such as rehabilitative em-
ployment and family social security payments, exceeded
a@ specified percentage of predisability earnings (fre-
quently 70 to 75 percent).

Health insurance

Almost all of the workers covered by the survey
were provided health insurance. Nearly three-fourths
had health plans totally financed by their employer and
just under one-half also received noncontributory cov-
erage for their dependents.

Virtually all of the participants in health plans were

*Both States permit an employer to substitute a private plan for the
State plan if the benefits provided are equivalent or more liberal. In
New York, many employers agree to pay the employee's share of
plan costs. California and Rhode Island also have mandated tempo-
rary disability insurance plans, but these plans require no employer

contribution and thus are not included in this survey.

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

covered for most categories of expenses related to hos-
pital and medical care (table 17). The only exceptions
were extended care’ and dental care (each covering
three-fifths of the participants) and vision care (cover-
ing slightly above one-fifth). Health plans included limits
on coverage, however, through deductibles, coinsur-
ance, or ceilings on benefits.’

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

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

Hospital coverage. The most costly component of
health care is that provided by a hospital. Nearly one-
half of all personal health care expenditures in the United
States are for hospital care.’ Virtually all of the partici-
pants in health plans analyzed in this study received
coverage for hospital expenses; nearly nine-tenths had
these expenses covered at least in part by a basic bene-
fit. Of those that received basic hospital coverage, most
were in plans that paid room and board expenses up to
the semiprivate rate (table 18). By paying the semi-
private rate, rather than a specified dollar amount per
day, the participant was automatically provided some
protection against rising hospital charges.

* Extended care includes medical care provided by an extended care
facility or home health care agency. This care is usually provided to
a patient who was previously hospitalized, but is recovering from an
illness and no longer in need of the care provided by a general
hospital.

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

7 Health Care Financing Review, September 1981 (U.S. Department
of Health and Human Services, Health Care Financing Administra-
tion), Volume 3, No. 1, Table 2A, p. 20.



! i
: Table 14. Accident and sickness insurance: Percent of full-time participants by type and duration of payments, |
| Private industry, 1981—Continued
| Maximum weeks of coverage
i ‘Type of payment Less Greater | Varies
| Total | than | 13 | 1425 26 | 27-51] 52 | than | by | Other’
| 13 52 | service
if
ii Technical and clerical
Fixed percent of earnings—Contin
70 or more .. scence 10 r¢) @ 1 5 - 3 - 1 -
Percent of earnings varies .. 6 - (o) - 2 1e) 1 - 2 -
By service 2 - - - 1 ~ - - 1 -
By length of disability 3 - r7) - 1 fe) 1 - - -
i By both service and length of
it disability .. 2 - - - 1 - - - 1 -
a
u Fixed weekly dottar benefit 18 () 5 to) 1 e 1 - 1 -
FH Less than $6 6 - 1 io] 3 - - - ° -
fH $60-$79 3 - 1 ie) 1 - - - ~ -
1G $80-$99 4 - 1 - 3 - - - - -
i! $100-$1 2 - ) - 1 - 0) - ) -
i $120-$139 3 is) > co] 2 0 Q - : -
i $140 or more .. 1 - e - a - i] - 0 -
i
iP Weekly doltar benefit varies 8 1 @ 2 lo) 2 ® 2 -
i By earnings .. 8 - 1 ie} 2 ie) 2 fo) 2 -
Ki By service or length of
fl disability o;-}/o}-)o@}]-fo}eoej- | -
Production
All types .. 100 1 12 4 49 2 21 @ WY 17)
i Fixed percent of earnings } 2 2 19 1 1 Q 2 3)
50-54 - 1 1 7 - - ro) o) -
i 55-59 - - - 1 - - - -
60-64 (9) 1 1 4 @ 1 ® 1 -
fl 65-69 i) 1 ~ 5 19) io) - i) 6
i 70 of more - ) (c) 2 - - - 1 -
H Percent of earnings varies 2 - - - 1 o) - - 1 -
By service 1 - - - io) - - - -
i By length of disability 1 - - - co) ie) - - 1 -
By both service and length of
disability Q - - - i) - - - (a) -
By earings .. . @ - - - ro) - ~ -
Fixed weekly dollar benef 39 1 8 2 20 i) 5 - 3 -
‘Less than $60 8 el 4 ie) 3 ea e - 6 -
5 1 1 2 i) e - - -
6 - 2 = 4 - fe} - - -
i 6 = @ @ 4 - 1 - e -
Hy $120-$139 7 ro) ~ Q 5 io) i - = -
i $140 or more .. 7 - @ () 2 @ 2 - 3 -
i
‘ Weekly dollar benefit varies 30 - 2 Q 8 1 15 i) 5
By earnings .. 29 - 1 io) 8 1 14 Q 8 -
By service or length of
disability 2 - 1 - to} - ® - 0 -
‘Part of an income protection pian that continues payment NOTE: Because of rounding, sums of individual items may not
: throughout disability. However, after 39 weeks of collecting pay- equal totals. Dash indicates no employees in this category.
i ments, total disability must be certified.
H ® Less than 0.6 percent.

18



Table 38. Private pension plans: Percent of full-time
participants’ by provision for cost-of-living adjustments,
private industry, 1984

Table 39. Private pension plans: Percent of full-time
participants by vesting provisions, private Industry,
1981

Profes- Profes-
sional | Techni- sional | Techni-
Ail par. |_2nd_| cal and | Produc- Allpar-|_24_| cal and | Produc-
Characteristic of adjustment | 0. PA Jadminis-| clerical |tion par- Provision trepants [@dminis-| clerical | tion par-
P trative | partici- | ticipants trative | partici- | ticipants
partici- | pants partici- | pants
pants: pants
Total with cost-of-living adjustment Type of vesting schedule
in normal retirement formula .....] 3 4 4 2
Total’ .. 100 | 100 | 100 | 100
Adjustment as percent of CPI oo
change Cliff vesting,” with full vesting after:
10 years of service at any age ...| 67 64 63 72
Total 100 | 100 | 100 | 100 10 years of service after
age 22 2 24 24 18
100 percent of change (up to Other 2 1 1 2
annual maximum, if any) ... | 63 73 a 43 ae
Less than 100 percent of change or Graduated vesting,* with full vesting
other? | 37 7 29 87 after: -
15 years of service* 4 5 6 3
Maximum periodic increase Other .. 9 9 " 7
Total 400 | 100 | 100 | 100 Requirement for earliest receipt
of fully vested benefit
No maximum 4 2 10 1
Less than 3 percent .. 19 22 19 16 Total 100 100 100 100
3 percent .. 40 43 44 30
Over 3 percent 37 33 27 53 Payable at normal retirement age
only 2 2 1 2
Maximum lifetime increase
jaximum Wetime in Payable prior to normal retirement
! 100 | 100 | 100 age:
Tora ‘At specified age a | om | oa | om
No maximum o7 | 98 99 93 At specified age, with additional
With lifetime maximum 3 2 1 7 service requirement a7 26 27 ar
i 7 Because plans may adopt alternative vesting schedules, sums of par-
f .
Frequency of adjustment ticipants covered by individval vesting schedules may exceed 100 percent
Total... joo | 100 | 100 Under a cliff vesting schedule, an employee. is not entitled to any
- benefits accrued under a pansion plan until satisfying the requirement for
100 percent vesting. The Employee Retirement Income Security Act
Hh 9 8 4 , ;
Omerpaiod % 5 | 8 (ERISA) specifies 10 years as the maximum requirement for this form of
vesting.

Excludes participants in money purchase plans.
2 includes adjustment provisions which did not go into effect until after
a specific percent rise in the CPI.

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

35

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

* Participants in this group were in plans that adopted ERISA’s stand-
ard for graduated vesting which calls for 25 percent vesting with 5 years
of service, with the vested percentage increasing 5 percentage points
each year for § succeeding years, then 10 percentage points for each of
the next 6 years. Thus, 15 years is the maximum requirement for this
form of vesting.



Table 40. Private pension plans: Percent of full-time
participants’ by provision for postretirement survivor
annuity, private industry, 1981

Table 41. Private pension plans: Percent of full-time
participants’ by provision for preretirement survivor annulty,
private Industry, 1981

Profes-
sional | Techni-
; Allpar | 204 | cal and | Produc-
Type of annuity for surviving spouse adminis-| clerical |tion par-

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

Type of annuity for surviving | All par-| acminis-| clerical (tion par-

ticipants |"rrative | partici | ticipants Spouse eipants| ‘ative | partici: | ticipants
particl- | pants partici- | ‘pants
pants pants

Total .. 100 100 100 100

Spouse's share of joint-and-survivor

annuity only? 92 94 93 90
50 percent’ 25 18 21 31
Over 50 percent 7 4 3 40
Alternative percentage at

retiree’s option .. 60 nm 69 60
Spouse’s share of joint-and-survivor
annuity plus portion of retiree’s
pension .. 3 2 1 4
Portion of retiree's accrued pension
‘only 5 4 5 5

* Excludes participants in money purchase plans.

2 An annuity that provides income during the lifetime of both the retiree
and the surviving spouse. The accrued pension will usually be actuarially
reduced at retirement because of the longer length of time that payments
are expected to be made. Upon the death of the retiree who selects this
option, all or part of the reduced pension is continued to the surviving
spouse for life.

* Includes a small percentage of employees in plans where the
spouse's share of the joint-and-survivor annuity was less than 60 percent.

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

Total 100 | 100 | 100 | 100

Preretirement survivor annuity

provided .. 99 | 100 99 39

Equivalent of joint and survivor

annul 74 73 68 7
Based on early retirement’... 65 64 60. 68
Surviving spouse receives:
50 percent of
‘employee pension 52 51 50 54
At employee cost 19 19 16 at
Over 50 percent of
‘employee pension 13 14 10 14
At employee cos! 1 0 rv) 1
Based on normal
retirement” 9 8 g 9
At employee cost® 2 1 1 2
Portion of accrued employee
benefit, reduced for early
retirement 14 13 16 13
Other annuity’ 12 14 15 9
No preretirement survivor annuity
provided 1 ) 1 1

T Excludes participants in money purchase plans.

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

> An annuity that provides income during the lifetime of both the retiree
and the surviving spouse. The accrued pension will usually be actuarially
reduced at retirement because of the longer length of time that payments
are expected to be made. Upon the retiree's death, all or part of the re-
duced pension is continued to the surviving spouse for life.

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

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

© Less than 0.5 percent.

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

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

* A preretirement survivor annuity is not required in plans which do not
provide for the payment of retiree benefits prior to the plan's normal retire-
ment age.

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



Table 20, Health insurance: Percent of full-time participants in plans with major medical coverage by amount of deductible
and applicable benefit period, private industry, 1981

i Professional and Technical and clerical ‘on partici
All participants administrative participants Participants Production participants ;
| Amount of deductible* Benefit period
i
Hl t-year | Other t-year | Other t-year | Other 1-year | Other
i Total | period | period | TO! | period | period | 7! | period | period | T!! | period | period :
| Total .... 100 | 97 3 | 100 | 96 2 | 100 | se 2 | 100 | 97 3
i Based on earnings® 5 s | - 6 e| - 6 6} - 5 5 | -
i Flat dollar amount 95 | 92 3 | 04 | 92 2 | 4 | 92 2 | 9 | 92 3
i $25 2 1 1 3 2 4 3 2 4 2 1 1
i 1 1 - 1 1 - 1 1] - 1 1 -
i 23 23 () 23 22 0 at 20 iy) 26 25 i]
i rv) 0 - @ @ - (a) iv) - a) i) -
hh 5 5 | 6 5s | - 4 4] - 6 e | -
Ni Q iv) - 1 1 - @ ) - @ iv) -
] 85 | 53 1 52 | 51 1 | 54 | 83 1} 88 | 54 2
Ht a}aj-|a|ea| - >) - | ale] -
5 5 6 6 | - 8 a | - 2 2
He 3 3 3 3 is) 3 iv) 3 3 @
i Amount of deductible described is for each insured person. However, maximum deductible of $150.
H many plans contain a maximum family deductible. In some plans, the indi- >" Loss than 0.6 percent.
vidual and family deductibles are identical.
| ? ‘These plans have deductibles which vary by the amount of the partic- NOTE: Because of rounding, sums of individual items may not equal to-

Pants’ earings. A typical provision is 1 percent of annual earnings with a _tals. Dash indicates no employees in this category.

Table 21. Health insurance: Percent of full-time participants in plans with major medical coverage by coinsurance
provisions,’ private industry, 1981

Professional and

Technical and clerical

All participants administrative ie Production participants
naicponee participants
! Final coinsurance provision Initial coinsurance
if qo-| 89.) 8 | 90 oun | ro. | 89 | 85 | 90 |otn| ro. | 89 | 85 | 9 loun| to. | 89 | 85 | 90 [oy
i per-|per-| per- per- | per-| per- per-| per-| per- per-| per- | per-
H {2 leent{cent{cent] & | *! |cent/cent/cent| & | *#! |cent|cent|cant| & | %! |Centlcentleent)

Total ... .| 100] 90} 4; 3] 3/100] 90] 4! 3} 3/100] 92] 2] 3) 3 too] ee) 5) 3] 4

t Final coinsurance changes to 100

i percent .. | 59] 52) 4] 1) 2! 68) 61; 3] 1] 2] 68] 63} 2] 4] al st} aa] sl 4] 2

i When covered expenses? within a

i year reach:

5 $1-2000 wo) 9 CELA) -| 1) 1/0) @)] -} 13] 13)@16) -) 8 76 4] -
$2,001-$4,000 .. 14; 13/1 | 4] 48) te] -| @] 4) te] 15) -) | 1] 19} wl Ola] 4
$4,001-$6,000 . 2i| 201 4] 1 | 25) 241 11} | 25] 24 1M] @) 17] 1! 1] M10

i $6,001-88,000 . 4} 2} 2) -} af 5} 2) 2) ~1 a} 4) af a} =} a] 6} al a) -) 4

ti $8,001-$10,000 77 5 1 OO] 5} FOlO@! 7 Ze] -l@] 7 8 AZele

i More than $10,000 . 3} 3 M]O! -| 4 4 OO) -{ 3) 3}@]@] -| 3} si@] -| -

Final coinsurance changes to other than
100 percent ..... youa;-/@] 2 7e@}]-}o! a vel -le}] vel -l -l6

Coinsurance unchanged 40] 37) ()) 2 4] 30] 271} 1) 4) a4] 28) ] 4] 4] 49] 45, @ | af 2

" Coinsurance is the percent of covered expenses paid by the * Less than 0.5 percent.
Plan. The balance is paid by the employee.
? “Amount of covered expenses described is for each insured per- NOTE: Because of rounding, sums of individual items may not

son. In rare cases, the limit for the individuat and family are identical ‘equal totals. Dash indicates no employees in this category.



Contents—Continued

Tables—Continued

. Paid sick leave: Type of provision
. Paid sick leave: Number of days at selected periods of service
. Accident and sickness insurance: Type and duration of payments .
. Accident and sickness insurance, percent of earnings formulas: Maximum weekly

. Long-term disability insurance: Method of determining payment . ...
. Health insurance: Provisions for selected categories of medical care. .
. Health insurance, basic hospital benefits: Room and board benefit payments .
. Health insurance, basic surgical benefits: Maximum allowance for selected

. Health insurance, major medical coverage: Amount of deductible
. Health insurance, major medical coverage: Coinsurance provisions
. Health insurance, dental benefits: Extent of coverage for selected procedures.
. Health insurance, dental benefits: Amount of deductible
. Health insurance, dental benefits and orthodontic coverage: Maximum amount of

. Health insurance, vision benefits: Range of provided services
. Health insurance: Coverage for mental health care wee
. Health insurance: Funding medium ............. 60. cee cece cece seen eee renees
. Life insurance: Method of determining amount of basic life insurance, and

. Life insurance, flat dollar insurance: Amount of basic insurance .
. Life insurance: Effect of retirement on coverage ...........0005
. Private pension plans: Method of determining retirement payments . vee
. Private pension plans: Provision for integration or offset.of social security benefits ....
. Private pension plans: Minimum age and associated service requirements for

. Private pension plans: Disability retirement provisions .
. Private pension plans: Credit for service after age 65 ..
. Private pension plans: Cost-of-living adjustment provisions .
. Private pension plans: Vesting provisions
. Private pension plans: Postretirement survivor annuity
. Private-pension plans: Preretirement survivor annuity . .
. Accident and sickness insurance: Length of service requirement for participation ..
. Long-term disability insurance: Length of service requirement for participation ...
. Health insurance: Length of service requirement for participation
45,
46,
47.

Denefit. eee cece enn ene e ene e Ene eee eee eee

procedures

insurance .

frequency of related coverages

. Life insurance, multiple-of-earnings formulas: Amount of basic insurance and

maximum coverage provisions

normal retirement

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

retirement

Life insurance: Length of service requirement for participation ..
Private pension plans: Age and service requirements for participation .
Other benefits: Incidence of eligibility

Appendixes:

A. Technical note
B. Availability of the survey’s data base .

|
|
|



Table A-1. Estimated number of establishments and workers within scope of employee benefit survey and number studied,

private industry, United States,’ 1981

Minimum Number of workers in establishments
: employment in| Number of
Industry division establishments | , Num Professional 5
within scope of | °Stablishments | yota9 at Technical and | Production
survey administrative | clerical
Within scope of survey’

All industries - 43,325 23,746,586 4,881,872 6,351,616 11,297,199
Manufacturing *400-250 20,914 12,591,080 | 2,497,031 | 1,699,038 | 0,158,518
Nonmanutacturing - 22,411 14,165,508 | 2.984841 | 3,652,578 | 3,198,601

Mining .. 250 582 437,960 65,168 45,859 "325,455
Construction 250 690 441/290 83,872 60,756 253,889
Transportation, communication, electric, gas, an

sanitary services *400-250 4,962 3,028,980 | 627,479 708,459 | 1,251,690
Wholesale trade 400 4,864 4,004,731 263,261 272,460 398,561
Retail trade : 250 3,898 31154497 | 926,882 866,909 816,738
Finance, ins real estate 400 5872 2365,964 | 680.962 | 1,450,547 46,340
Selected services? *50-100 2,508 725,084 | 397,228 "249,589 46,009

Studied?

All industries - 1,295 4,433,951 | 1,049,657 982,781 2,120,986
Manufacturing 400-250 642 2,653,597 | 627,906 971.207 | 1,631,361
Nonmanufacturing - 653 1,700.54 | 415,951 611.484 489,605

Mining 250 23 39,873 10,889 7574 20,948,
Construction 250 26 29,073 9121 8,075 9,288
Transportation, communication, electric, gas, and

sanitary services * 400-250 172 885,472 196,290 251,857 386971
Wholesale trade 400 63 24,406 7.240 7,602 8,298
Retail trade 250 175 390,566 43,608 418,287 80.575
Finance, insurance an 400 147 390228 | 107.211 192,328 5,670
Selected services’ .. * 50-100 47 80,796 41,592 28,811 7,655

* Excludes Alaska and Hawaii.

2 As defined in the 1972 edition of the Standard Industrial Classifica-
tion Manual, U.S. Office of Management and Budget.

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

“Numbers of establishments and workers shown within the scope of
the survey are estimates. These estimates differ from those developed in
the 1981 PATG survey, since each is based on the findings of its respec-
tive survey.

5 Minimum employment size was 100 for chemical and allied product
petroleum refining and elated industries; machinery except electrical
electrical machinery, equipment, and supplies; transportation equipment,
and instruments and related products, Minimum size was 250 in all other
manufacturing industries.

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

Survey response
Each of the 36 combinations of occupational group
and work schedule or benefit area (e.g., health insur-

= “Minimum employment size was 100 for railroad transportation, local
and suburban transit, deep sea foreign and domestic ‘transportation; air
transportation; communications, electric, gas, and sanitary services; and
pipelines; and 250 for all other transportation industries. U.S. Postal Serv-
ice is excluded from the survey.

7 Limited to advertising; credit reporting and collection agencies; com-
puter and data processing services; research and development laborato-
ties; commercial testing laboratories; management and public relations
services, engineering and architectural services; noncommercial research
organizations; and accounting, auditing, and bookkeeping services.

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

© These figures refer to all respondents to the survey, whether or not
they provided data for all items studied. See the section on survey re-
sponse.

ance for production employees) was treated as an indi-
vidual survey and separate estimates were developed for
each. This treatment facilitated the use of partially com-
pleted establishment reports in the survey. Therefore,
the actual number of responses for the survey varies for
each of the 36 combinations.

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

Number of establishments:

In sample 1505
Out of business and out of scope. 53
Refusing to respond .. 157

1295

Responding fully or partially .

There were two procedures used to adjust for miss-
ing data from partial schedules and total refusals. First,

43



Appendix A: Technical Note

Scope of survey

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

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

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

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

Professional-administrative:

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

Technical-clerical:
Includes office and sales clerical, technical sup-

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

41

|

port, protective services, and other such occupa-
tions that do not require full knowledge of a pro-
fessional or administrative field of work or the ap-
plication of a high level of creativity, originality,
analytical ability, or independent judgment. Job
performance skills are typically acquired through
on-the-job experience and/or specific training
which is less than that usually represented by a
baccalaureate degree. These skills include the ap-
plication of a practical knowledge of established
procedures, practices, precedents, and guidelines.

Production:

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

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

Benefit areas

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

BLS also collected data on the incidence of the fol-
lowing additional benefits: Funeral leave; military leave;
profit sharing plans; savings and thrift plans; stock bonus
plans; stock purchase plans; other stock plans; sever-
ance pay; employee discounts; gifts; relocation allow-
ances; recreation facilities; subsidized meals; educational
assistance; automobile parking; personal use of com-
pany-owned car; and in-house infirmary.

Sampling frame

The scope of this survey was the same as that of the
Bureau’s 1981 National Survey of Professional, Admin-
istrative, Technical, and Clerical Pay (PATC). The list
of establishments from which the sample was selected
(called the sampling frame) was, therefore, the same as
that developed for the 1981 PATC. This sampling frame



Table 1. Summary: Percent of full-time employees by
participation’ in employee benefit programs, private
industry,” 1981

Protes-
sional | Techni-

; ‘Alem: |. 2nd | cal and | Produc-

Employee benefit program —_| Fioyeeg adminis: clerical |tion em-

trative | employ- | ployees
employ-| ees

ees
Paid:
Holidays 99 | 100 | 100 99
Vacations 99 | 100 | 100 99
Personal leave 23 at 32 14
Lunch period 10 4 4 5
Rest time es 60 76 82
Sick leave 65 92 92 4
Accident and sickness insurance 50 30 35 66
Noncontributory* 4 22 26 55
Long-term disability insuranc 4 61 62 28
Noncontributory? 32 47 40 23
Health insurance for employee 97 98 96 97
Noncontributory? n 67 58 79
Health insurance for 94 96 91 94
Noncontributory* 48 45 36 55
Life insurance 96 98 95 96
Noncontributory* 8t at 78 82
Retirement pension . 84 88 85 82
Noncontributory? 78 at 80 7

T Participation is defined as coverage by a paid leave, insurance, or
pension plan. Employees subject to a minimum service requirement be-
fore they are eligible for a benefit are counted as participants even if they
have not met the requirement at the time of the survey. if employees are
required to pay part of the cost of a benefit, only those who elect the cov-
erage and pay their share are counted as participants. Benefits for which
the employee must pay the full premium are outside the scope of the sur-
vey.
® See appendix for scope of study and definitions of occupational
groups.

* Provided at no cost to employee.

Table 2. Work schedule: Percent of full-time employees by
number of hours scheduled per week,' private Industry,
1981

Profes-

sional | Techni-

and | cal and | Produc-

ayer |adminis-|clriat | tion er-
trative | employ- | ployees

employ-| ees

ees

Work schedule

Total 100 100 100 | 100

Hours per week:

Under 35 1 a) a) 1
35. 4 5 7 1
Over 35 and under 37.5 . 1 3 2 1
375 7 10 14 2
Over 37.5 and under 40 .. 3 4 6 | 0
. 85 78 nm 94

1 1 ea 1

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

? Less than 0.5 percent.

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

iW

Table 3. Paid lunch time: Percent of full-time employees by
hours of paid lunch time per week, private Industry, 1981

Profes-

sional | Techni-

and | cal and | Produc-

Jadminis-| clerical | tion em-

Ployees | "trative | employ: | ployees
ees

Hours per week All em-

employ:
ees

Total .. 100 | 100 | 100 | 100
Provided paid lunch time 10 4 4 15
Under 1.67 hours .. 1 1 1 1
4.67 hours ..... 4 iv) iv) 6
‘Over 1.67 and under 2.6 hours...) (’) - - i
2.5 hours 4 1 2 6
Over 2.5 hours .. 1 1 1 1
Not provided paid lunch time .. 90 96 96 85

Tess than 0.5 percent.

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

Table 4. Paid rest time: Percent of full-time employees by
hours of paid rest time per week, private Industry, 1981

Profes-
sional | Techni-
and | cal and | Produc-
All em | agminis-| clerical | tion em-

Hours per week
Ployees |"trative | employ- | ployees
ees

emptoy-
ees

Total 400 | 100 | 100 | 100
Provided paid rest time 75 60 76 82
Under 1.25 hours. | 3 1 1 5
1.25 hours | 4 4 8 3
Over 1.25 and under 1.67 hours | (') ) 1 0
4.67 hours | 26 18 18 34
Over 1.67 and under 2.5 hours...) 4 2 1 6
2.5 hours | 34 4 46 28
Over 2.5 and under 3.33 hours 1 Vv) 1) 1
3.83 hours 1 1 1 1
Over 3.33 hout 2 - - 4
Not provided paid rest time 25 40 24 168

T Less than 0.5 percent.

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



Table 7. Paid vacations: Percent of full-time employees by amount of paid vacation provided at selected periods of

service, private industry, 1981

Profes- Profes-
sionat | Techni- sional | Techni-
attem- |. 2nd | cal and | Produc- ‘All em-|_ 20d. | cal and | Produc-
Vacation policy Toyeas {20minis-| clerical |tlon em Vacation policy Toyees adminis: | clerical | tion om-
Ployees | ‘trative | employ. | ployees| ployees | ‘trative | employ- | ployees
employ-} ees employ-| ees
ees ees
Total . 100 | 100 | 100 | 100
latter 1 years of service:
In plans providing paid vacations at 5 days a) e ) (e)
qualifying periods of service .. 99 | 100 | 100 99 10 days .. 4 1 2 7
Over 10 and under 15 days a ) i) 6)
‘At 6 months of service:' 15 days... 3 25 27 35
Under 5 days 8 5 6 4 Over 16 and under 20 days 5 5 6 4
5 YS vesnreenne 36 45 48 27 53 61 61 46
Over 5 and under 10 days 8 15 13 4 6 8 4 5
10 days 4 6 4 2
Over 10 days 1 3 ul 1
a iv) is) is)
After 4 year of service: YS 4 1 2 6
Under 5 days ie) a ie) 9) ‘Over 10 and under 15 days ® ra) ® fe)
30 7 13 49 15 days 10 7 8 13
2 1 1 3 Over 15 and under 20 days 1 1 1 1
60 79 81 42 20 days 56 60 66 49
2 4 3 1 ‘Over 20 and under 25 days 2 3 2 2
2 7 2 1 25 days 24 22 7 22
2 2 oy 2 Over 25 days 4 5 3 4
After 3 years of service: After 25 years of service:
5 days .. 4 i) 1 7 5 days (0) 9) is) 0.
Over 5 and under 10 days 2 i?) (0) 3 10 days 4 1 2 6
10 days 79 80 88 74 Over 10 and under 15 days i) (0) (0) e
Over 10 and under 15 days 7 4 4 10 15 days 9 7 7 1
18 days ... 5 9 5 3 Over 15 and under 20 days 1 a 1 1
Over 15 days 4 6 3 3 20 days 3t 36 36 26
. Over 20 and-under 25 days 2 3 3 2
After 5 years of servi 25 day: 43 44 44 43
Under 10 days 1 e) ® 1 Over 25 ‘and under 30 days 2 3 2 2
10 days 50 37 45 57 5 4 4 6
‘Over 10 and under 15 days 7 7 7 7 1 1 i 2
15 days ...... 38 47 45 30
Over 16 and under 20 gays 2 3 2 2
20 days .. 4 3 1 1 ° oy 0)
Over 20 days q1 1 1 1 4 q 2
Over 10 and under 15 days ) ro) o)
After 10 years of service: 15 days 9 7 7
5 days .. ) ) a i) Over 15 and under 20 days 1 e ()
10 days 7 3 4 4 20 days 29 34 35
Over 10 and under 15 days .. 1 1 1 2 Over 20 and under 25 days 1 2 2
15 days... 69 69 76 65 25 days 40 39 42
Over 15 and under 20 days .. 6 3 3 9 Over 25 2 3 2
20 days ... 13 20 13 9 30 days 10 1 8
Over 20 days 4 5 3 4 Over 30 days .. 3 2 2

" Excludes situations where employees are credited with vacation
days during the first 6 months of service but, as a matter of establish-
ment policy, must wait beyond 6 months before taking those days off.

® Less then 0.5 percent.

NOTE: Data include anniversary year and bonus days and exclude

‘extended vacations.

13



Contents

Summary ......
Work schedules .
Paid lunch and rest periods .
Paid holidays . .
Paid vacations .
Personal leave .
Short-term disability benefits .
Sick leave plans ...........-
Accident and sickness insurance
Long-term disability insurance .
Health insurance ......
Hospital coverage .
Surgical coverage. .
Major medical coverage
Dental coverage ...
Vision care .......
Mental health coverage .
Funding medium ..
Life insurance ......
Retirement pension plans .......-
Private benefits and social security payments
Normal retirement...
Early retirement...
Disability retirement .
Postponed retirement
Cost-of-living adjustment
Vesting ..........0e00s
Postretirement survivor benefits
Preretirement survivor benefits ...
Participation requirements...
Other benefits

Tables:
Percent of full-time employees (or participants), private industry, 1981:

1. Summary: Employee benefit programs .....

2. Work schedule: Number of hours per week .

3. Paid lunch time: Number of hours per week .

4. Paid rest time: Number of hours per week

5, Paid holidays: Number of days each year .

6. Paid holidays: Policy on holidays that fall on day off .

7

8

9.

0.

1

. Paid vacations: Number of days at selected periods of service .
. Paid holidays and vacations: Average number of days each year .
. Paid vacations: Length of service required to take vacation ...
. Paid personal leave: Number of days each year ..
. Short-term disability coverage: Type of plan ....

Page

SOOSCOGCOSCMMMMIIBIUADADUUUAR AR WYWWNNNNNH



Table 36, Private pension plans: Percent of full-time
participants’ by provisions for disability retirement, private
industry, 1981

Table 37. Private pension plans: Percent of full-time
participants’ by provision for credit for service after age 65,
private industry, 1981

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

Al Bat | adminis-| clerical | tion par-

Characteristic

ticipants) "ative | partici- |ticipants
partici | pants
pants

Profes-
sional | Techni-
‘and | cal and | Produc-
adminis-| clerical | tion par-
trative | partici- | ticipants
Partici- | pants

All par-

Type of credit eipants

Total with disability retirement

benefits 88 88 84 ot

Minimum requirements for
disability retirement

Totat 100 | 100 | 100 | 100
No age or service 15 15 20 12
Age only .. 1 1 1 e
Service only 87 48 42 69
Age and service 9 7 10 9
Meets qualification for tong-term

disability benefits. 18 at 27 9

Benefit provisions

Total 1oo | 100 | 100 | 100
Immediate disability retirement .. 67 49 50 82
Unreducad normal formula® 51 37 36 64
Reducad normal formula‘ 9 6 9 40
Other than normal formula’ 7 6 5 8
Deferred disability retirement 33 51 50 18
With benefits based on:
Service when disabled 4 6 6 2
Service plus credit to normal
retirement date 27 43 40 14
Service with some credi 2 3 a 1

T Excludes participants in money purchase plans.

® Less than 0.5 percent.

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

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

* Includes flat amount benefits, dollar amount formulas, percent of un-
reduced normal benefits less social security, and percent of earings for-
mulas both with and without social security offsets.

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

pants
Total 100 100 100
No credit FOF SEVICE ....cs.ceeeseeeeeeesenenes 58 68 70 48
Pension deferred with no change
in amount .. sesesseesnnnne 51 59 61 42
Pension deferred, but increased
actuarially .. 7 4 5 5 3
Pension deferred, but increased
by percent per additional year
of service* 2 3 3 1
Pension begins at age 65 1 1 1 1
Credit for service’ .. 42 32 30 52
All service credited 26 at 20 31
Service credited to specified
maximum age 15 W 3 19
Service credited to specified
maximum years of service 1 1 1 1
Other @ (a) - oO

‘Excludes participants in money purchase plans.

2 The pension amount computed at age 65 is increased by a specified
percent (not part of the benefit formula) for each year the employee re-
mains active.

> Additional service is included in the benefit formula. _

“ includes participants in plans in which alt service is credited and pen-
sion is actuarially increased for later retirement date.

© Less than 0.6 percent

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



Table 18. Health insurance: Percent of full-time participants in plans with basic hospital room and board coverage by
type of benefit payments, private industry, 1981

Subject to limit on days of coverage per hospital confinement

Subject to
Type of payment Total other | Unlimited
All vee 120 days say “sn 365 days 986 days limits"
All participants
Total 400 72 13 18 3 30 6 19 9
Daily dollar allowance .. 8 8 5 2 a) 1 a @ -
Semiprivate rate 92 64 9 17 3 29 6 19 9
Professional and administrative
Total 400 68 10 20 3 32 4 22 10
Daily dollar allowance . 4 3 2 1 1 - ® -
Semiprivate rate 96 6 8 19 3 a2 4 21 10
Technical and clerical
Total 400 66 1" 22 3 27 4 22 12
Daily dollar allowance 6 6 2 2 1 1 ® i) -
Semiprivate rate 94 60 8 20 3 25 4 22 12
Production
Total .. 100 76 16 16 4 a 8 18 6
Daily dollar allowance . "1 10 7 2 1 ) ) -
Semiprivate rate 89 66 9 18 4 30 8 7 6

T Includes workers in plans where the basic benefit is limited by a
maximum dollar amount per confinement or per year, and other plans

where the
‘specified time limit.

on the number of days of coverage applies within a

? Less than 0.5 percent.

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

22



Preface

This bulletin presents results of a 1981 Bureau of La-
bor Statistics survey of the incidence and provisions of
employee benefits in medium and large firms. This sur-
vey—the third in an annual series—provides representa-
tive data for 21.5 million full-time employees in a
cross-section of the Nation’s private industries. It was
designed to provide the Office of Personnel Manage-
ment with information on benefits of private sector em-
ployees in order to compare them with benefits of Fed-
eral workers. The survey’s scope, therefore, is the same
as that of the Bureau’s annual National Survey of Pro-
fessional, Administrative, Technical, and Clerical Pay
which is currently used in the Federal pay comparabil-
ity process for white-collar workers. Appendix A pro-
vides a detailed description of the scope, statistical pro-
cedures, and definitions of terms used in the benefits
survey.

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

iii

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

The reader also is cautioned against comparing data
from 1979, 1980, and 1981 surveys. Due to the experi-
mental nature of the earlier surveys, differences in the
results reflect not only changes in benefit practices in
private industry, but also improvements in procedures
and techniques built into the survey each year. Never-
theless, several changes have been identified in this bul-
letin as demonstrating trends in benefit provisions.

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

Material in this publication is in the public domain
and may, with appropriate credit, be reproduced
without permission.

ae



Normal Retirement Benefit Formulas for Future

Service

Type of formula(s)

Scheduled dollar amount varying by service

Dollar amount for each year of service

Percent of earnings

Determination of social security taxable earnings
base

Determination of earnings

Definition of earnings

Percent of contributions

Credited service maximum

Social security, railroad retirement offset

Application of offset

Social security offset reduction factor at early
retirement

Past Service Benefit Formulas

Applicability of future service formula

Type of past service formula(s)

Dollar amount for each year of service

Percent of earnings

Determination of social security taxable earnings
base

Determination of past service earnings

Minimum and Maximum Normal Retirement

Formula
Minimum benefit
Maximum benefit
Definition of earnings

Payments Supplemental to Normal Retirement

Benefit
Amount of supplemental payment
Duration of supplemental payment

Special Medicare Part B Benefit

Amount of benefit

Postponed Retirement

Crediting of service
Effect upon accrued benefit

Cost-of-Living Adjustment

Presence of adjustment
Frequency of adjustment
Amount of COLA increase
Maximum COLA increase
Overall maximum of all increases
COLA decreases

Early Retirement at Employee’s Option

Minimum requirements - early retirement

Minimum requirements - early retirement with
supplemental payments

Applicable formulas

Accrual of benefits

Reduction factor for early receipt

Eligibility for alternative or minimum benefit
Alternative or minimum benefit

Amount of supplemental payment

Duration of supplemental payment

Early Retirement at Employer’s Option
Presence of provision
(Repeat above items for early retirement at
employee’s option)

Disability Retirement
Presence of provision
Minimum requirements
Credited service
Earliest receipt of pension
Applicable formulas
Accrual of benefits
Reduction factor for early receipt
Eligibility for alternative or minimum benefit
Alternative or minimum benefit
Amount of supplemental payment
Duration of supplemental payment
Effect of reaching age 65
Credited service at age 65

Survivor Annuities after Retirement
Monthly survivor annuities to spouse
Cost of protection to retiree
Effect of age difference
Adjustment due to age difference
Predeceasing spouse
Presence of alternate or minimum annuity

Lump-Sum or Installment Death Benefits after
Retirement
Presence of provision
Minimum requirements
Amount of death benefit

Survivor Annuities before Retirement
Minimum requirements
Determination of spouse’s annuity
Cost of protection to employee
Adjustment due to age difference
Presence of alternative or minimum annuity
Minimum requirements for alternative
Determination of alternative annuity
Cost of alternative protection to employee

Adjustment of alternative due to age difference

Lump-Sum or Installment Death Benefits before
Retirement
Presence of provision
Minimum requirements
Amount of death benefit



Table 30, Life insurance: Percent of full-time participants in Table 32, Private pension plans: Percent of full-time

plans with flat dollar insurance by amount of basic participants’ by method of determining retirement payments,
i Insurance, private industry, 1981 private industry, 1981
Profes- Profes- |
sional | Techni- sional | Techni-
; All par. |_ 2nd _| cal and | Produc- All par-{ 8% _ | cal and | Produc-
Amount of insurance ticipants |20minis-| clerical |tion par- Basis of payment ticipants |@dminis-| clerical |tion par-
pants | tative | partic | ticipants wative | partici- | ticipants
partici- | pants partici. | pants
pants pants
Total 100 | 100 | 100 | 100 Total 400 | 100 | 100 | 100
Less than $2,000 . 7 6 6 7 Terminal earnings formula 50 70 68 32 |
$2,000-$4,999 22 22 19 22 No alternative formula 26 37 44 i" i
$5,000-$9,999 35 33 43 34 Terminal earnings alternative 5 7 5 3
$10,000-$14,999 . 29 28 24 30 Career earnings altermative .. 4 5 5 4
$15,000-$19,999 3 3 1 4 Dollar amount alternative® 15 19 14 14
$20,000 and over . 4 8 7 a
Career earnings formula 16 23 18 "1
No alternative formula 10 14 12 6
NOTE: Because of rounding, sums of individual items may not equa! to- Career earnings alternative .. iv) (9) oO Oo
tals. Dollar amount altemative’ .. | 6 9 6 5 |
Percent of contributions |
alternative | 0 ) - Oy |
Dollar amount formula? 32 6 12 53
No alternative formula 29 5 12 48
Dollar amount alternat 3 rv) iv) 5
Percent of contributions
‘Table 31. Life insurance: Percent of full-time participants in alternative . oOo] 0 0 iv)
basic life insurance plans. by effect of retirement on Percent of contributions formula 2 1 0) 2
coverage, private industry, 1981 No alternative formula 2 4 oO 2
Profes- Other formula® 1 1 1 1
sional | Techni- No alternative formula i 1 1 1
‘All par-| 29d _| cal and | Produc- _
Effect of retirement ticipants [2dminis-| clerical |tlon par. T Excludes supplemental pension plans.
trative | partici- | ticipants * Aitemnative formulas are generally designed to provide a minimum
partici- | pants benefit for employees with short service or low earings.
pants 3 Includes formulas based on dollar amounts for each year of service
and schedules of benefits that vary by length of service.
Total 400 | 100 | 100 * Less than 0.5 percent.
* Includes money purchase plans.
Insurance continues .. 64 66 64 63
Continued in full for life | 5 6 5 4 NOTE: Because of rounding, sums of individual items may not equal to-
Continued in full; ceases during tals. Dash indicates no employees in this category.
retirement .. 1 1 1 1
Reduced once; continues for life} 33 28 92 36
Reduced once; ceases during
retirement .. | C) 0 0 Oo
Reduced more than once during
retirement; continues for life... 25 30 26 22
Reduced more than once;
ceases during retirement . 0) ) 0) 0)
Insurance discontinued immediately .| 36 34 36 37

i
i T Less than 0.5 percent.
i
i

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



Table 47. Other benefits: Percent of full-time employees in establishments providing specified benefits by percent of

eligible employees, private industry, 1981

Benefit Total None eligible Some joe ae Not available
Professional and administrative employees
Paid leave:
Funeral leave 100 6 1 87 6
Miltary leave . 400 14 1 79 6
Profit sharing, savings, and stock plans:
Profit sharing .. 100 70 5 20 6
Savings and thrift. 100 54 8 32 6
Stock bonus plans .. 100 81 2 " 6
Stock purchase plans « 400 4 3 16 7
Other stock plans? 100 70 3 at 6
Income continuation plans:
Severence pay 100 36 4 53 7
Miscellaneous benefits:
Employee discounts 100 47 1 46 6
Gifts .. 100 at 3 abl 6
In-house infirmary . 100 42 4 48 6
Relocation allowanc 100 9 9 75 7
Full defrayment of expenses 100 29 5 59 7
Partial defrayment of expenses .. 400 73 4 16 7
Recreational facilities .. 400 a 1 at 7
Full defrayment of cost .. 400 82 1 10 7
Partial defrayment of cost 100 83 ia) 10 7
Subsidized meals 100 64 4 25 7
Full defrayment of cost . 100 92 1 1 6
Partial defrayment of cost 400 66 3 24 7
Educational assistance 100 12 4 78 6
Full defrayment of expenses 100 63 2 30 8
Partial defrayment of expenses 400 44 2 48 6
Parking 100 7 40 67 6
Provided at no cost 400 22 8 64 6
Provided below commercial rates 100 90 2 2 6
Automobile 400 66 25 2 7
Without reimbursing the company ... 100 74 19 1 7
Partially reimbursing the company . 400 86 6 1 7
Technical and clerical employees
Paid leave:
Funeral leave . 400 6 88 5
Military leave 100 17 76 5
Profit sharing, savings, and stock plans:
Profit sharing 400 69 5 a1 5
Savings and thrift 400 60 8 26 5
Stock bonus plans 100 86 2 7 5
Stock purchase plans 100 7 3 15 5
Other stock plans" 100 76 4 15 5
Income continuation pla
Severence pay ... 100 38 5 81 6
Miscellaneous benefits:
Employee discounts. 100 38 2 85 5
Gifts 100 80 3 12 5
In-house infirmary « 400 50 7 38 5
Relocation allowance 100 48 5 40 7
Full defrayment of expenses 400 59 4 30 7
Partial defrayment of expenses .. 400 83 1 10 7
Recreational faclities 400 7 1 16 8
Full defrayment of cos 100 86 i) 8 6
Partial defrayment of cost 100 85 1 8 6
Subsidized meals 400 64 5 23 8
Full defrayment of cost 100 92 1 2 5
Partial detrayment of cost 100 67 4 21 8
Educational assistance 100 23 3 69 5
Full defrayment of expenses 100 67 1 27 5
Partial defrayment of expenses 100 50 3 42 5
Parking .... 100 20 14 61 5
Provided at no cost 100 26 "1 58 5
Provided below commercial rates 100 89 3 3 5

See footnotes at end of table.

39



Table 22. Health insurance: Percent of full-time participants In plans with dental benefits by type of procedure and extent of
coverage, private industry, 1981

‘Sched-

Percent of reasonable and customary charge

uted | een Not
Type of dental procedure Total | cash | ey. cov-
allow- | SCigr | Total | 50 | 60 | 61-74] 75 | 80 | 85 | 90 | 91-99; 100 | ered
ance
All participants
Examinations 100 | 17 3 | 80 1 1 1 4/2] @ 2 - 47 -
Dental X-rays 100 | 18 3 | 79 1 1 1 4 | 2 7} 10 - 2 | 8
400 | 29 3] 68 3 1 1 5] 33 8} 10 - 71 0
100 | 27 3] 69 a 2 1 5 | 33 7] 10 - 9| @
100 | 26 a] 68 5 2 1 4 | 3t a} 10 - 7 3
100 | 28 1 68 | 31 4 1 1 14 6 7 - 3 a
100 | 29 1 68 | 32 4 1 1 13 6 7 - 3 2
‘Orthodontia 100 14 - 53 44 3/ @ e 21 0 i) a 3 34
Professional and administrative
Examinations 100 | 19 417 1 1 1 3] 27] 6 1 - 43 -
100 20 4 76 1 1 1 3 29 4 6 - 31 (7)
100 | 31 4| 6 4 2 1 3] 38 6 6 - 5}
100 | 29 3 | 68 4 2 i 3| 37 6 6 - 9] @
100 28 3 67 6 3 ro) 3 35 7 6 - 7 2
100 | 30 1 66 | 35 5 1 1 13 4 3 - 3 3
100 | 30 1 66 | 35 6 1 1 13 4 3 - 3 2
Orthodontia 100 | 16 - 54] 46 4; 0 - 11 @ ) i) 3 | 29
Technical and clerical
Examinations 100 | 19 4) 7] @ 1 1 4} 27] @ 2 - 42 -
Dental X-rays 100 | 20 4| 7] ® 1 1 4 | 30 3 5 - a | @
100 | 34 4| 62 3 2 1 4] 36 4 5 - 6| @
100 33 4 63 3 2 1 4 35 4 6 - 8) @
100 | 30 41 63 5 3/1 0 4] 33 4 5 - 8 2
100 | 32 1 63 | 32 5 2 1 13 3 3 3 a
400 | 33 1 63 | 32 6 2 1 13 3 3 - 2 3
100: 16 - 47 37 3 © 2 2 iG) i) 0 2 37
Examinations 100 15 2 83 1 1 9) 5 23 i¢) 2 - $1
Dental X-rays 400 | 15 2| 82 1 1/ 6 5 | 25/ to] 16 - 26 -
Fillings .... 100 | 26 2] 72 2 4 1 6| 30) 1 14 - 7| @
Dental surgery .. 100 | 24 2| 73 2 1 1 6 | 30 9] 14 - 1 |
Periodontal care 100 | 23 2] 71 4 1 1 6| 2} 11 14 - 7 3
400 | 25 1 72 | 29 3 1 1 14 9} 11 - 3 3
100 | 26 1 72 | 29 3 1 1 14 a} 4 - 3 2
Orthodontia..... 400 | 12 - 54] 47 2/0 (a) 21 0 ® - 3 | 34

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

scheduled.
* Less than 0.5 percent.

25

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



the cost-of-living (table 38).” In most instances, the cost-
of-living adjustment formulas provided for benefit ad-
justments proportional to rises in the BLS Consumer
Price Index. Nevertheless, ceilings on individual in-
creases limited periodic adjustments to 3 percent or less
for over three-fifths of the covered workers. The per-
cent of covered employees with limits to cost-of-living
adjustments that were greater than 3 percent increased
slightly in 1981. As in 1980, most of the affected par-
ticipants were in plans calling for annual adjustments.
Lifetime ceilings on increases were rare.

Vesting. Even when an employee leaves an employer
without qualifying for either a normal, early, or disabil-
ity retirement benefit, a pension may ultimately be paid.
If certain conditions are satisfied at the time of separa-
tion, workers have a vested right in all or a significant
portion of their accrued pension benefits and may be-
gin receiving benefits years later. The Employee Re-
tirement Income Security Act of 1974 (ERISA) made
vesting a universal feature of private pension plans. Al-
though all pension participants are entitled to vested
benefits under ERISA, some variation exists as to when
this occurs. Most pension plans require 10 years of serv-
ice before benefits are fully guaranteed (table 39). While
two-thirds of the participants were covered by the 10-
year rule regardless of age, one-fifth were affected by
the plan sponsor’s right to exclude years of service be-
fore age 22 in determining vesting eligibility. A small
minority of the participants were in plans with a gradu-
ally increasing vesting schedule, requiring up to 15 years
for full vesting, but providing partial vesting after a few
years’ service.

Unreduced vested pension payments begin at a plan’s
normal retirement age, based on the benefit formula in
effect when an employee left the plan. However, nearly
all terminated and vested participants could receive a
reduced pension at an earlier age (usually the plan’s
early retirement age). This option was available to 71
percent of participants if they had just satisfied the mini-
mum vesting requirements when they left their plans.
Twenty-seven percent were not eligible for early start
of payments unless they had completed more years of
service than were required for vesting.

Postretirement survivor benefits. The ERISA legislation
also requires that retirement plans allow employees to
elect a form of pension in which payments continue to
the spouse after the retiree’s death. When this type of
pension—called a joint-and-survivor annuity—is

3 Excluded are ad hoc postretirement increases in pensions which,
as opposed to automatic cost-of-living provisions, are one-time in-
creases in the benefits to all or some current retirees, and are not
linked to the Consumer Price Index. The frequency and character-
istics of these increases are being examined in the 1982 survey of
employee benefits.

elected, the employee will receive a lower benefit dur-
ing retirement since payments are likely to be made
over a longer period of time. When the retiree dies, the
spouse will receive part or all of the retiree’s monthly
pension benefits.

Joint-and-survivor benefits are based on an actuarial
or arithmetic reduction of the employee’s pension which
is necessary to allow for continuation of benefits to the
employee’s survivor. Eighty-five percent of the partici-
pants were in plans providing a surviving spouse 50
percent of the retiree’s actuarially adjusted pension, fre-
quently as one of several arrangements for spouse bene-
fits that could be chosen by the employee (table 40).

Preretirement survivor benefits. Nearly all participants
were in plans providing for survivor payments in case
the employee died before retirement. Employees usu-
ally had to be eligible for early retirement before any
death benefits were payable. For nearly three-fourths
of the participants, a surviving spouse would receive
an annuity equivalent to the amount payable if the em-
ployee had retired on the day prior to death and had
elected a joint-and-survivor form of payment (table 41).
Most survivor pensions of this nature were based on an
early retirement benefit and were provided at no cost
to the employee. However, for over one-fifth of those
employees having preretirement joint-and-survivor pro-
tection, it was available only if elected, and its cost paid
by the employee through a small deduction in the pen-
sion ultimately payable to either employee or spouse.

Participation requirements

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

Insurance plans. The incidence of service requirements
did not vary significantly by benefit area, but was

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



Vesting Employer Contribution!
Vesting schedule Rate of contributions

Accrual of benefits
irem .
Requirement for vested benefit prior to normal LTD coverage

retirement -
. * Applies only to money purchase and target benefit plans, and defined
Reduction factor for early receipt benefit plans with formulas based on employer contributions.

Relationship with LTD Coverage - i

47 YC US. GOVERNMENT PRINTING OFFICE : 1982 O-~361-270 (4945)



Table 5. Pald holidays: Percent of full-time employees by
number of paid holidays provided each year, private

Industry, 1981

Table 6. Paid holidays: Percent of full-time participants by
policy on holidays that fall on a regularly scheduled day off,

private industry, 1981

Protes- Protes-
sional | Techni- sional | Techni-
Altem. |. 29d | cal and | Produc- Aitpar- | and | cal and | Produc-
Number of days loyees |@0minis-| clerical |tion em- Holiday policy tdpents |2¢TMinis-| clerical | tion par-
Ployees | ‘trative | employ- | ployees icp trative | partici- | ticipants
employ-| ees partici | pants
ees pants
Total . 100 {| 100 | 100 } 100 Total 400 | 100 | 100 | 100
Provided paid holidays .. 99 | 100 | 100 99 Holiday is not observed . 1 1 1 1
Under 6 days on 2 1 1 a
6 days .. . 4 3 5 4 Another day off granted . 82 87 87 7
6 days plus 1 or 2 half days 0 ( () Y
7 days .. 8 6 10 8 Additional day's pay in lieu of
7 days plus 1 or more half days | (') (e) iy) 0) holiday . 4 2 3 6
7 7 “1 5
i} 1 1 iv) Another day off or day's pay,
10 9 15 9 depending on when holiday falls...) 11 7 7 14
9 days 2 3 4 1
10 days 29 at 26 29 Another day off or holiday not
10 days plus 1 or 2 half days 1 1 1 1 observed, depending on when:
11 days 16 16 14 16 holiday falls .. 1 2 2 1
11 days plus 1 1 i (v)
12 days ... 7 6 5 8 Other provision applies’ a) a) ) (a)
42 days plus 1 or 2 half days 0) ¢) 0) v)
3 days 5 7 4 5 Holiday policy not determinable a a) i) 1
43 days plus 1 or 2 half days v) rv) 0) ()
14 days 1 1 1 1 * Policy differs by holiday.
More than 14 days 5 4 2 7 * Less than 0.5 percent.
Not provided paid hotidays ... 1 0) iy) 1 NOTE: Because of rounding, sums of individual items may not equal to-
tals.

T Less than 0.5 percent.

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

tals,