ii

National Compensation Survey:

Employee Benefits in Private Industry

in the United States, 2002-2003

U.S. Department of Labor

Elaine L. Chao, Secretary

Bureau of Labor Statistics

Kathleen P. Utgoff, Commissioner

January 2005

Bulletin 2573
iii

Preface

This bulletin presents findings of the 2002–2003 Bureau of Labor Statistics (BLS) survey of the incidenceand provisions of selected benefit plans and detailed

provisions of health care and retirement plans in private

industry establishments. The tables with a 2003 reference

date contain data on the incidence and key provisions of

selected benefit plans. The tables with a 2002 reference date

contain detailed provisions of health care and retirement

benefits.

Data presented are from the National Compensation Survey and replace publications titled Employee Benefits in

Medium and Large Private Establishments, Employee Benefits in Small Private Establishments, and Employee Benefits in State and Local Governments. Future publications

on benefits data will include information on all private industry and State and local government establishments.

The public may access Employee Benefits Survey data

through the BLS World Wide Web site at http://www.bls.gov/

ncs/home.htm. Questions on the data in this publication

should be referred to the staff of the National Compensation

Survey at (202) 606-6199 or via E-mail: OCLTINFO@bls.gov.

Sensory-impaired individuals may obtain information in this

publication upon request. Voice phone: (202) 691-5200; Federal Relay Service: 1-800-877-8339.
iv

Contents

Introduction ............................................................................................................................................................... 1

Chapter 1. Employee Benefit Plans: Access, Participation, and Key Provisions ...................................................... 3

Access to benefits......................................................................................................................................... 3

Participation in benefits................................................................................................................................. 3

Definitions ............................................................................................................................................................ 4

Paid time off ................................................................................................................................................... 4

Life insurance ................................................................................................................................................ 4

Disability benefits .......................................................................................................................................... 4

Tables:

1. Percent of workers participating in retirement and health care benefits, March 2003 (Recalculated) ........... 5

2. Percent of workers with access to retirement and health care benefits, March 2003 (Recalculated) ............ 6

3. Percent of workers participating in life and disability insurance benefits, March 2003 ................................ 7

4. Percent of workers with access to life and disability insurance benefits, March 2003 ................................. 8

5. Percent of workers with access to selected leave benefits, March 2003 ....................................................... 9

6. Percent of workers with access to selected benefits, by selected characteristics, March 2003 ................... 10

7. Percent of medical insurance premiums paid by employer and employee, March 2003 ............................... 11

8. Percent of medical participants required to contribute and average employee

contribution, March 2003............................................................................................................................... 12

9. Percent of medical participants by amount and type of employee contribution for single

coverage, March 2003 .................................................................................................................................... 13

10. Percent of medical participants by amount and type of employee contribution for family

coverage, March 2003 .................................................................................................................................... 14

11. Average number of paid vacation days, by minimum length of service requirement, March 2003 ............... 15

12. Percent of workers with paid vacations by number of paid vacation days provided for selected

periods of service, March 2003...................................................................................................................... 16

13. Percent of workers by number of paid holidays provided and average number of paid days per

 year, March 2003 ........................................................................................................................................... 17

14. Percent of workers participating in short-term disability plans, by method of funding, March 2003 ........... 18

15. Percent of workers participating in life insurance plans by employee contribution

requirement, March 2003 ............................................................................................................................... 19

16. Percent of workers participating in life insurance benefits, by method of payment, March 2003 ................ 20

17. Percent of workers participating in life insurance plans with multiple of earnings benefit

formulas, March 2003..................................................................................................................................... 21

18. Percent of workers participating in life insurance plans with flat dollar benefit formulas, March 2003 ........ 22

19. Percent of workers with access to nonproduction bonuses by type of bonus and stock options, by

selected characteristics, March 2003 ............................................................................................................. 23

20. Percent of establishments offering health and retirement benefits, and retiree health benefits, by

establishment characteristics, March 2003.................................................................................................... 25

Chapter 2. Health Benefits......................................................................................................................................... 26

Medical Care ..................................................................................................................................................... 26

Health care plans and systems...................................................................................................................... 26

Limitations on coverage ................................................................................................................................ 26

Alternatives to hospitalization ...................................................................................................................... 27

Mental health and substance abuse treatment ............................................................................................. 27

Prescription Drugs ............................................................................................................................................ 27

 Page
v

Dental Care ....................................................................................................................................................... 27

Vision Care ....................................................................................................................................................... 27

Tables:

21. Medical care benefits: Fee arrangement and financial intermediary, 2002.................................................... 28

22. Medical care benefits: Participation and employer premiums per participant by requirements for

employee contributions, single coverage, March 2003 ................................................................................. 30

23. Medical care benefits: Participation and employer premiums per participant by requirements for

employee contribution, family coverage, March 2003 ................................................................................... 31

24. Medical care benefits: Participation and average monthly employer premiums per participant by

employee monthly contribution, single coverage, March 2003 .................................................................... 32

25. Medical care benefits: Participation and average monthly employer premiums per participant by

employee monthly contribution for family coverage, March 2003 ................................................................ 33

26. Medical care benefits: Eligibility requirements, March 2003 ........................................................................ 34

27. Medical care benefits: Coverage for selected services, by type of plan, 2002 ............................................. 35

28. Indemnity plans: Coverage for selected services, 2002 ................................................................................ 37

29. Indemnity plans: Summary of selected features in and outside of network, 2002 ........................................ 38

30. Indemnity plans: Average for overall limits, 2002 ......................................................................................... 39

31. Indemnity plans: Amount of individual deductible, 2002 ............................................................................. 40

32. Indemnity plans: Individual deductible difference between in-network and outside of network

coverage, 2002 ............................................................................................................................................... 42

33. Indemnity plans: Relationship of individual and family deductible, 2002 .................................................... 43

34. Indemnity plans: Coinsurance rates, 2002 .................................................................................................... 44

35. Indemnity plans: Coinsurance rate difference in-network and outside of network coverage, 2002 ............. 46

36. Indemnity plans: Maximum out-of-pocket expense provisions, 2002 .......................................................... 47

37. Traditional indemnity plans: Maximum out-of-pocket expense provisions for traditional plans, 2002 ........ 49

38. Indemnity plans in and outside of network: Maximum out-of-pocket expense provisions, 2002 ................ 50

39. Indemnity plans: Maximum benefit provisions, 2002 ................................................................................... 52

40. Indemnity plans: Coverage for alternatives to hospital care, 2002 ............................................................... 53

41. Copayment provisions for hospital room and board by plan type, 2002 ...................................................... 54

42. Prepaid plans: Coverage for selected services and alternatives to hospital care, 2002 ............................... 56

43. Prepaid plans: Summary of selected features, 2002 ...................................................................................... 57

44. Prepaid plans: Extent of coverage for extended care facilities, 2002 ............................................................. 58

45. Outpatient prescription drug benefits: Summary of coverage, 2002 ............................................................ 59

46. Mental health care and substance abuse treatment benefits: Relationship to coverage

for other illnesses, 2002 ................................................................................................................................. 60

47. Mental health care benefits: Separate limits on coverage, 2002 .................................................................... 61

48. Prepaid plans: Coverage for mental health and substance abuse treatment, 2002 ........................................ 62

49. Mental health care benefits: Separate limits on coverage in prepaid and indemnity plans, 2002 ................. 63

50. Alcohol and drug abuse: Relationship between provisions, 2002 ................................................................ 64

51. Alcohol abuse treatment: Separate limits on coverage, 2002 ........................................................................ 65

52. Alcohol abuse treatment benefits: Separate limits on coverage in indemnity plans, 2002 ........................... 66

53. Alcohol abuse treatment benefits: Separate limits on coverage in prepaid plans, 2002 ............................... 67

54. Drug abuse treatment: Separate limits on coverage, 2002 ............................................................................. 68

55. Drug abuse treatment benefits: Separate limits on coverage in indemnity plans, 2002 ................................ 69

56. Drug abuse treatment benefits: Separate limits on coverage in prepaid plans, 2002 ................................... 70

Contents—Continued

Page
vi

57. Mental health care and substance abuse treatment benefits: Application to out-of-pocket expense

provisions in indemnity plans, 2002 ............................................................................................................. 71

58. Dental care benefits: Coverage for selected procedures and average percentage of usual, customary,

and reasonable charge, 2002 ........................................................................................................................ 73

59. Dental care benefits: Amount of individual deductible, 2002 ....................................................................... 76

60. Dental care benefits: Relationship of yearly family deductibles to yearly individual deductibles, 2002 ..... 77

61. Dental care benefits: Maximum benefit provision, 2002 ............................................................................... 78

62. Orthodontia care benefits: Maximum benefit provision, 2002 ...................................................................... 79

63. Dental care benefits: Percent of participants in plan with orthodontic benefits by type of individuals

covered, 2002 ................................................................................................................................................ 80

64. Dental care benefits: Percent of participants in plans with orthodontic benefits by difference in

dollar maximums between employees and dependents, 2002 ....................................................................... 81

65. Vision care benefits: Coverage for selected procedures, 2002 ..................................................................... 82

Chapter 3. Retirement Income Benefits...................................................................................................................... 83

Defined Benefit Plans ........................................................................................................................................... 83

Benefit Formulas................................................................................................................................................ 83

Traditional ...................................................................................................................................................... 83

Other types .................................................................................................................................................... 83

Normal retirement........................................................................................................................................... 83

Early retirement .............................................................................................................................................. 83

Benefit payment methods .............................................................................................................................. 83

Vesting ........................................................................................................................................................... 84

Integration with Social Security .................................................................................................................... 84

Portability ...................................................................................................................................................... 84

Disability retirement ....................................................................................................................................... 84

Postretirement pension increases.................................................................................................................. 84

66. Defined benefit plans: Summary of plan provisions, 2002 ............................................................................ 85

67. Defined benefit plans: Eligibility requirements, 2002..................................................................................... 86

68. Defined benefit plans: Plan sponsor, 2002 .................................................................................................... 87

69. Defined benefit plans: Primary formula, 2002 ................................................................................................ 88

70. Defined benefit plans: Integration with Social Security, 2002 ....................................................................... 89

71. Defined benefit plans: Terminal earnings formulas, 2002 .............................................................................. 90

72. Defined benefit plans: Definitions of terminal earnings, 2002 ....................................................................... 91

73. Defined benefit plans: Maximum benefit provisions, 2002............................................................................ 92

74. Defined benefit plans: Age and service requirements for normal retirement, 2002 ....................................... 93

75. Defined benefit plans: Availability of lump sum benefits at retirement, 2002 ................................................ 94

76. Defined benefit plans: Age and service requirements for early retirement, 2002 .......................................... 95

77. Traditional defined benefit plans: Age and service requirements for early retirement, 2002 ........................ 96

78. Defined benefit plans: Early retirement reductions, 2002 .............................................................................. 97

79. Traditional defined benefit plans: Early retirement reductions, 2002 ............................................................ 98

80. Defined benefit plans: Method of calculating disability retirement benefits, 2002 ....................................... 99

81. Defined benefit plans: Postretirement survivor benefits, 2002...................................................................... 100

82. Defined benefit plans: Preretirement survivor benefits, 2002 ........................................................................ 101

83. Defined benefit plans: Vesting requirements, 2002........................................................................................ 102

Contents—Continued

Page
vii

84. Defined benefit plans: Provisions for early receipt of deferred vested benefits, 2002 .................................. 103

85. Traditional defined benefit plans: Provisions for early receipt of deferred vested benefits, 2002 ................ 104

86. Cash balance plans: Percentage basis of employer contributions, 2002 ....................................................... 105

Defined Contribution Plans .................................................................................................................................. 106

Plan types ...................................................................................................................................................... 106

Investment choices........................................................................................................................................ 106

Withdrawals, loans, and distributions........................................................................................................... 106

Vesting ........................................................................................................................................................... 107

Employer contribution methods .................................................................................................................... 107

Related plans and terms................................................................................................................................. 107

87. Defined contribution plans: Participation in types of plans and 401(k) with employer

contributions, 2002 ........................................................................................................................................ 108

88. Savings and thrift plans: Summary of provisions, 2002 ................................................................................ 109

89. Savings and thrift plans: Plan sponsor, 2002................................................................................................. 110

90. Savings and thrift plans: Maximum employee contributions, 2002 ............................................................... 111

91. Savings and thrift plans: Method of determining employee pretax contribution, 2002 ................................ 112

92. Savings and thrift plans: Maximum pretax employee contributions, 2002 .................................................... 113

93. Savings and thrift plans: Method of employer matching contributions, 2002 .............................................. 114

94. Savings and thrift plans: Employee contributions by employer specified matching percentage, 2002 ........ 115

95. Savings and thrift plans: Investment choices, 2002 ...................................................................................... 116

96. Savings and thrift plans: Investment types allowed for employee contributions, 2002 ............................... 117

97. Savings and thrift plans: Eligibility requirements, 2002 ................................................................................ 118

98. Savings and thrift plans: Automatic enrollment requirements, 2002 ............................................................. 119

99. Savings and thrift plans: Vesting provisions, 2002 ....................................................................................... 120

100. Deferred profit sharing plans: Employer contribution, 2002 ......................................................................... 121

101. Deferred profit sharing plans: Allocation of employer contributions to individual employee

accounts, 2002 ............................................................................................................................................... 122

102. Deferred profit sharing plans: Eligibility requirements, 2002......................................................................... 123

103. Money purchase plans: Employer contributions, 2002 ................................................................................. 124

Appendix A. Technical Note .................................................................................................................................... 125

Scope of survey ............................................................................................................................................... 125

Occupational groups........................................................................................................................................ 125

Benefit areas..................................................................................................................................................... 125

Sample design and data collection ................................................................................................................... 125

Data calculation................................................................................................................................................ 126

Survey estimation methods.............................................................................................................................. 126

Reliability of estimates ..................................................................................................................................... 126

Table A-1. Number of establishments and occupational observations studied and estimated number of

workers within the scope of the survey, 2002–2003 .............................................................................. 127

Appendix B. Survey Response ................................................................................................................................. 128

Contents—Continued

Page

1

Introduction

Starting with the 2002–2003 survey cycle, BLS began

presenting data on the incidence and provisions of

benefits in new ways. The change was a result of the

consolidation of several compensation surveys into a single

program of compensation statistics: The National Compensation Survey (NCS). Among the goals of the NCS are more

timely publication, a greater variety of data, and a new series

that links the costs of benefits to their incidence and provisions. In addition to health and retirement plans, the survey

covered paid leave, life and disability insurance, and other

selected benefits.

The following data were produced for the 2002–2003 cycle

for the first time under the NCS:

• Availability of benefits for workers in occupations

averaging under $15 an hour and for workers in occupations averaging $15 or more an hour.

• Access to health, retirement, disability, and life insurance benefits (in addition to participation)

• Percentages of establishments offering (as opposed

to employees eligible or receiving) such major benefits as retirement and health care

• The share of medical care premiums between employees and employers

• The incidence of benefits by census divisions

• Details of coverage by full- and part-time status

Links to additional 2003 data on the incidence and key

provisions of employee benefit plans can be found at

http://www.bls.gov/ncs/ebs/home.htm. Links to the latest research related to the National Compensation Survey can be found at http://www.bls.gov/opub/mlr/

mlrhome.htm.

Under the NCS, information on the incidence and provision of benefits is published in two or more steps. The first,

incidence and key provisions, is released approximately 6

months after the data are collected. The September 2003 news

release, which contained benefits data with a March 2003

reference date, was the most prompt publication in the history of the benefits incidence series since it was launched in

1979. In April 2004, a summary containing data on access to

benefits, medical care costs, and other selected provisions

was published. All tables from these documents are reprinted

in Chapter 1 of this bulletin (tables 1–20).

The data in this chapter are from the NCS and are presented for the following characteristics:

• Worker characteristics

• Establishment characteristics

• Geographic areas

The data in Chapter 1 have a reference date of March 2003

and are on the incidence and selected characteristics of employee benefit plans. Included are data on access to, and

participation in, employee benefit plans. The difference between these two attributes, as they are used in the survey, is

as follows:

• Access to a benefit plan. Employees are considered as

having access to a benefit if it is available for their

use. For example, if an employee is offered an opportunity to participate in a medical care plan provided by the

employer, but the employee declines, he or she is placed

in a category with those having access to medical care.

• Participation in a benefit plan. Employees in contributory plans are considered as participating in an insurance or a retirement plan if they have paid required

contributions and have fulfilled any applicable service

requirements. Employees may choose not to participate in a plan because of eligibility requirements, because of a requirement to contribute to the cost of the

insurance, or because they may be covered by another

plan. Employees in noncontributory plans are counted

as participating, regardless of whether they have fulfilled their service requirements.

This bulletin includes detailed information on the characteristics of health and retirement plans. The data collection

period for compiling these detailed characteristics was December 2001 through April 2003; thus, detailed provisions

data have a 2002 reference date. Chapter 2 presents data on

health care benefits, and chapter 3 contains information on

defined benefit and defined contribution pension plans.
2

A note on the tables

Understanding the group of employees about whom data are presented is key to understanding and correctly

using the data in each table. The majority of tables in this bulletin exhibit the percentage of all employees with

participation in a plan and with access to its specific benefits. For example, table 1 shows that 53 percent of all

employees participated in medical plans. Other tables reflect data on only those employees who participate in a

specific benefit. For example, table 31 shows that, of all workers participating in a plan, 69 percent were in plans that

required a deductible. An indicator of this type of table is that the percent of “workers with medical care” is 100

percent. (See first row of table 31.) All subsequent percentages shown in the table are based on this subset of only

workers with medical plans. Still another type of table presents average values of benefit provisions—for example,

the average contribution paid by employees for medical coverage. (See table 8.) In these types of tables, the

average value of the provision is based only on those who participated in, or had access to, that benefit; employees without such coverage were not included in the calculation of an average value. In table 8, for example, the

average employee contribution for medical coverage includes the average monthly amount paid by only those

employees who had a medical plan through the employer. A careful reading of the title, column and row headings,

and first row of each table will help clarify its content. More detail on the calculation of benefit access and

participation percentages and benefit provision averages is given in the appendices at the end of this bulletin.
3

Chapter 1. Employee Benefit

Plans: Access, Participation,

and Key Provisions

Paid leave was the most commonly provided employee

benefit in the private sector: paid vacations and holidays were available to 79 percent of employees. Jury

duty leave was also common, available to more than twothirds of workers in private industry. Half of the workers had

paid military leave benefits.

Access to benefits

Fifty-seven percent of employees in private establishments

had access to retirement benefits and 69 percent to medical

care benefits. Half of all employees had access to life insurance. Thirty-nine percent of all workers had access to shortterm disability benefits, other than paid sick leave, while 30

percent had access to long-term disability benefits. These

overall percentages conceal significant variations by worker

and establishment characteristics.

Worker characteristics. The greatest factor influencing rates

of access to the aforementioned major benefits was full- and

part-time status of employees. Rates of access to dental care

and life insurance, in particular, were about 5 times greater

for full-time workers. Access to other major benefits was

several times greater for full- than for part-time workers.

Union workers generally enjoyed greater access to these

benefits. The incidence of access to defined benefit plans

was almost 5 times higher among union than among nonunion workers. Access to defined contribution plans and

long-term disability did not follow this pattern, however.

Workers in occupations averaging $15 or more an hour

were in a much better position with respect to access to

benefits than were those in occupations averaging under

$15. The difference was particularly striking in rates of access to long-term disability insurance: only 17 percent of

those earning under $15 had access to such coverage, compared with half of those in the higher earnings category.

Establishment characteristics. Workers in goods-producing industries enjoyed higher rates of access to retirement,

health care, life insurance, and short-term disability benefits

than did workers in service-producing industries. Workers

in medium-sized and large private establishments (those with

100 or more employees) enjoyed higher rates of access to

retirement and health benefits than did their counterparts in

small establishments.

Life insurance and medical care were the only benefits to

which access was virtually the same in metropolitan as in

nonmetropolitan areas. Access to all other benefits was

higher for workers in metropolitan areas. Of the nine census

divisions, the East South Central region showed the highest

rates of access to many benefits.

Participation in benefits

In March 2003, 53 percent of employees had elected coverage in employer-sponsored medical care plans. Forty-nine

percent were covered by retirement benefits of at least one

type, either a defined benefit plan (20 percent) or a defined

contribution plan (40 percent).

Worker characteristics. Participation in benefit plans varied

by occupational group, full- and part-time work schedule,

union status, and earnings. For example, workers in whitecollar occupations were more likely to participate in defined

contribution plans than were service workers. Union workers showed higher rates of participation in most benefits

than did nonunion workers. Those in jobs averaging $15 an

hour or more were far more likely to participate in all benefits.

For example, workers in higher paid occupations were twice

as likely as workers in lower paid jobs to participate in health

and retirement plans.

Establishment characteristics. The incidence of benefits

varied by industry, establishment size, and location. Benefits were more commonly offered to workers in goods-producing, than to those in service-producing, industries. Workers in medium and large private sector establishments were

more likely to have access to a variety of benefits. The differences were more pronounced in coverage for retirement

and insurance benefits than for paid leave benefits. For the

first time in 2003, NCS data on the incidence of benefits were

produced by census division. Coverage for most benefits

was more common in the Middle Atlantic, East North Central, and East South Central divisions.
4

Paid time off

Paid holidays are days of special religious, cultural, or patriotic significance on which work and business ordinarily

ceases. Workers typically receive time off from work, at full

or partial pay, for a specified number of holidays each year.

Some employers also include “personal holidays,” such

as an employee’s birthday or “floating holidays,” that vary

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

When a holiday falls on a scheduled day off, such as a

Saturday or Sunday, another day off is often substituted.

The following are typical paid holidays:

New Years Day

Memorial Day

Independence Day

Labor Day

Thanksgiving Day

Christmas Day

Paid vacations are time off from work, normally taken in

days or weeks. Vacation benefits usually start after a lengthof-service requirement is fulfilled. The amount of time off

may vary with an employee’s service with the employer, or it

may be a fixed number of days per year. Time off is usually

paid at an employee’s normal hourly rate or salary.

Paid jury duty leave provides pay for time away from work

when an employee is summoned to serve as a juror. Paid time

off for jury duty is usually provided “as needed.” Employer

payments commonly make up the difference between the

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

Definitions

Paid military leave provides pay for time away from work so

that employees can fulfill military commitments. Pay for military leave is either regular pay or the difference between

employees’ regular earnings and the amount they receive

from the military.

Life insurance

Life insurance provides a benefit in the event of death or

dismemberment. Benefits are usually distributed as a lump

sum, but can also be paid out in the form of an annuity.

Disability benefits

Short-term disability (STD) benefits provide for salary replacement, most often partial pay, for a 6- to 12-month period. Benefits are paid either as a percentage of employee

earnings, such as 50 percent of predisability earnings, or as

a flat dollar amount. STD benefits can vary by the amount of

predisability earnings, length of service with the establishment, or length of disability.

Long-term disability (LTD) benefits provide a monthly cash

amount to eligible employees who, due to illness or injury,

are unable to work for an extended period. Benefits are usually paid as a fixed percentage of predisability earnings, up

to a set limit. Most participants have a waiting period of 3 or

6 months, or until sick leave and STD benefits end, before

benefit payments begin. LTD payments generally continue

until retirement, until a specified age, or for a period that

varies by the employee’s age at the time of disability.
5

Table 1. Percent of workers participating in retirement and health care benefits, by selected characteristics, private

industry, National Compensation Survey, March 2003 (Recalculated)

Characteristic

Retirement benefits Health care benefits

All plans1 Defined

benefit

Defined

contribution

Medical

care2

Dental

care2

Vision

care2

Outpatient

prescription

drug

coverage

All workers ............................................ 49 20 40 53 36 21 47

Worker characteristics:

White-collar occupations ...................... 59 22 51 58 42 24 52

Blue-collar occupations ........................ 50 24 38 61 38 23 54

Service occupations ............................. 21 7 16 25 18 11 21

Full time ................................................ 58 24 48 65 45 26 58

Part time ............................................... 18 8 14 13 7 6 11

Union .................................................... 83 72 39 82 67 49 73

Nonunion .............................................. 45 15 40 50 33 19 44

Average wage less than $15 per hour .. 35 11 29 40 25 14 36

Average wage $15 per hour or higher .. 70 33 57 72 54 33 64

Establishment characteristics:

Goods-producing .................................. 63 31 49 68 50 29 58

Service-producing ................................. 45 16 37 48 32 19 43

1-99 workers ......................................... 35 8 31 42 23 13 36

100 workers or more ............................. 65 33 51 65 51 31 59

Geographic areas:

Metropolitan areas ................................ 50 21 41 54 37 22 48

Nonmetropolitan areas ......................... 42 14 36 48 29 19 41

New England ........................................ 44 15 37 53 36 17 48

Middle Atlantic ...................................... 56 30 43 56 37 27 48

East North Central ................................ 56 23 46 57 39 20 50

West North Central ............................... 48 21 37 48 34 19 42

South Atlantic ....................................... 46 16 40 50 32 15 44

East South Central ............................... 51 14 46 59 40 31 52

West South Central .............................. 42 18 35 51 32 17 47

Mountain ............................................... 38 10 34 40 31 19 37

Pacific ................................................... 46 20 37 54 40 29 49

1 Includes defined benefit pension plans and defined

contribution retirement plans. The total is less than the sum

of the individual items because many employees

participated in both types of plans. 2 The March 2003 estimates were originally published on

September 17, 2003 in USDL 03:489. Health care benefits

included estimates for "Plan type not available," which

represented workers participating in some type of health

plan that the establishment was unable to identify. With the

release of March 2004 estimates, BLS has introduced a data

imputation technique to account for missing plan type

information. The estimates in this table have been

recalculated using this new technique and are comparable

to the estimates published for March 2004.

NOTE: Because of rounding, sums of individual items may

not equal totals. Where applicable, dash indicates no

employees in this category or data do not meet publication

criteria.
6

Table 2. Percent of workers with access to retirement and health care benefits, by selected

characteristics, private industry, National Compensation Survey, March 2003 (Recalculated)

Characteristic

Retirement benefits Health care benefits

All

plans1

Defined

benefit

Defined

contribution

Medical

care2

Dental

care2

Vision

care2

Outpatient

prescription

drug

coverage

All workers ............................................ 57 20 51 69 45 28 63

Worker characteristics:

White-collar occupations ...................... 67 23 62 75 52 32 69

Blue-collar occupations ........................ 59 24 49 75 45 28 68

Service occupations ............................. 28 8 23 41 25 16 38

Full time ................................................ 67 24 60 83 55 34 75

Part time ............................................... 24 8 21 22 11 8 21

Union .................................................... 86 74 45 90 74 55 81

Nonunion .............................................. 54 15 51 67 42 25 61

Average wage less than $15 per hour .. 45 12 40 58 33 20 52

Average wage $15 per hour or higher .. 76 34 67 87 63 41 79

Establishment characteristics:

Goods-producing .................................. 70 31 60 81 56 35 71

Service-producing ................................. 53 17 48 65 41 26 60

1-99 workers ......................................... 42 9 38 58 30 18 50

100 workers or more ............................. 75 34 65 82 62 40 77

Geographic areas:

Metropolitan areas ................................ 58 21 51 69 46 28 63

Nonmetropolitan areas ......................... 52 15 47 65 37 24 57

New England ........................................ 51 16 44 67 45 23 62

Middle Atlantic ...................................... 61 30 49 73 45 36 64

East North Central ................................ 64 24 56 74 48 26 66

West North Central ............................... 56 22 47 59 42 23 53

South Atlantic ....................................... 57 17 53 67 43 21 62

East South Central ............................... 60 14 59 77 49 40 70

West South Central .............................. 53 18 49 65 39 22 62

Mountain ............................................... 51 12 47 57 39 28 53

Pacific ................................................... 53 20 46 71 49 35 64

1 Includes defined benefit pension plans and

defined contribution retirement plans. The total is less

than the sum of the individual items because many

employees have access to both types of plans. 2 The March 2003 estimates were originally

published in April 2004 in Summary 04-02. Health

care benefits included estimates for "Plan type not

available," which represented workers with access to

some type of health plan that the establishment was

unable to identify. With the release of March 2004

estimates, BLS has introduced a data imputation

technique to account for missing plan type

information. The estimates in this table have been

recalculated using this new technique and are

comparable to the estimates published for March

2004.

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash

indicates no employees in this category or data do not

meet publication criteria.
7

Table 3. Percent of workers participating in life and disability insurance benefits, by selected characteristics,

private industry, National Compensation Survey, March 2003

Characteristic Life

Disability benefits

Short-term

disability

Long-term

disability

All employees ................................................................. 47 37 28

Worker characteristics:

White-collar occupations ................................................ 54 40 40

Blue-collar occupations .................................................. 50 44 20

Service occupations ....................................................... 25 20 10

Full time .......................................................................... 59 45 36

Part time ......................................................................... 9 12 4

Union .............................................................................. 61 68 27

Nonunion ........................................................................ 46 34 29

Average wage less than $15 per hour ............................ 37 27 16

Average wage $15 per hour or higher ............................ 64 52 49

Establishment characteristics:

Goods-producing ............................................................ 58 54 29

Service-providing ............................................................ 44 32 28

1-99 workers ................................................................... 33 26 18

100 workers or more ....................................................... 64 50 40

Geographic areas:

Metropolitan areas .......................................................... 48 38 30

Nonmetropolitan areas ................................................... 45 31 17

New England .................................................................. 42 33 29

Middle Atlantic ................................................................ 46 76 27

East North Central .......................................................... 53 37 30

West North Central ......................................................... 46 36 29

South Atlantic ................................................................. 49 29 31

East South Central ......................................................... 59 38 26

West South Central ........................................................ 48 28 28

Mountain ......................................................................... 40 19 23

Pacific ............................................................................. 41 27 28

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates

no employees in this category or data do not meet

publication criteria.
8

Table 4. Percent of workers with access to life and disability insurance

benefits, by selected characteristics, private industry, National Compensation

Survey, March 2003

Characteristic Life

insurance

Disability benefits

Short-term

disability

Long-term

disability

All workers ...................................................... 50 39 30

Worker characteristics:

White-collar occupations ................................. 56 41 42

Blue-collar occupations ................................... 53 45 21

Service occupations ........................................ 29 21 11

Full time .......................................................... 62 46 38

Part time .......................................................... 11 13 5

Union ............................................................... 63 69 28

Nonunion ......................................................... 49 36 30

Average wage less than $15 per hour ............ 40 29 17

Average wage $15 per hour or higher ............ 65 53 50

Establishment characteristics:

Goods-producing ............................................ 61 56 30

Service-providing ............................................ 47 33 30

1-99 workers ................................................... 36 28 20

100 workers or more ....................................... 66 52 42

Geographic areas:

Metropolitan areas .......................................... 50 40 32

Nonmetropolitan areas .................................... 49 32 18

New England ................................................... 44 36 31

Middle Atlantic ................................................. 47 78 28

East North Central .......................................... 56 39 32

West North Central ......................................... 49 37 30

South Atlantic .................................................. 51 30 33

East South Central .......................................... 62 40 26

West South Central ......................................... 51 30 30

Mountain ......................................................... 45 20 23

Pacific ............................................................. 43 27 29

NOTE: Because of rounding, sums of

individual items may not equal totals. 

Where applicable, dash indicates no

employees in this category or data do

not meet publication criteria.
9

Table 5. Percent of workers with access to selected leave benefits, by selected characteristics, private

industry, National Compensation Survey, March 2003

Characteristic Paid holidays Paid vacations Paid jury duty

leave Paid military leave

All employees ................................... 79 79 70 50

Worker characteristics:

White-collar occupations .................. 86 84 79 59

Blue-collar occupations .................... 85 84 69 46

Service occupations ......................... 54 61 46 34

Full time ............................................ 91 91 77 56

Part time ........................................... 43 40 45 33

Union ................................................ 91 90 85 56

Nonunion .......................................... 78 78 68 50

Average wage less than $15 per

hour ................................................. 72 73 60 42

Average wage $15 per hour or

higher .............................................. 91 90 84 64

Establishment characteristics:

Goods-producing .............................. 90 87 76 56

Service-producing ............................. 76 77 68 48

1-99 workers ..................................... 74 73 57 38

100 workers or more ......................... 86 87 84 64

Geographic areas:

Metropolitan areas ............................ 79 79 71 51

Nonmetropolitan areas ..................... 80 79 61 44

New England .................................... 77 79 69 54

Middle Atlantic .................................. 83 85 72 54

East North Central ............................ 83 81 73 53

West North Central ........................... 74 71 70 50

South Atlantic ................................... 79 80 71 50

East South Central ........................... 81 79 72 45

West South Central .......................... 77 79 68 53

Mountain ........................................... 75 73 71 51

Pacific ............................................... 80 79 62 41

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates

no employees in this category or data do not meet

publication criteria.
10

Table 6. Percent of workers with access to selected benefits, by selected characteristics, private industry, National Compensation

Survey, March 2003

Characteristic

Employer assistance for child care

Adoption

assistance

Long-term

care

insurance

Flexible

work place

Employerprovided

home PC

Subsidized

commuting Total1

Employer

provided

funds

On-site

and off-site

child care

Child care

resource

and

referral

services

All employees ........................ 14 3 5 10 9 11 4 2 5

Worker characteristics:

White-collar occupations ....... 20 5 7 15 13 16 6 3 7

Blue-collar occupations ......... 8 1 2 6 6 7 1 1 4

Service occupations .............. 8 2 4 5 2 4 1 1 2

Full time ................................. 16 4 5 12 10 13 4 3 6

Part time ................................ 8 2 4 5 5 4 3 1 2

Union ..................................... 17 3 7 15 13 16 3 2 8

Nonunion ............................... 14 3 5 10 9 11 4 2 5

Average wage less than $15

per hour ............................... 9 2 3 5 5 6 2 1 3

Average wage $15 per hour

or higher .............................. 22 5 8 18 16 19 7 4 9

Establishment

characteristics:

Goods-producing ................... 13 3 2 11 9 11 3 3 5

Service-producing ................. 14 3 6 10 9 11 4 2 5

1-99 workers ......................... 5 2 2 3 3 3 2 1 2

100 workers or more ............. 25 5 8 19 16 20 5 3 9

Geographic areas:

Metropolitan areas ................ 16 4 5 12 10 12 4 2 6

Nonmetropolitan areas .......... 4 2 2 2 2 4 1 1 1

New England ......................... 15 2 8 12 11 11 4 2 8

Middle Atlantic ....................... 17 4 6 14 12 12 4 3 8

East North Central ................. 16 3 6 11 10 10 5 2 2

West North Central ................ 13 3 6 8 7 7 2 2 3

South Atlantic ........................ 11 4 3 9 9 14 2 1 2

East South Central ................ 13 4 4 7 4 7 4 1 5

West South Central ............... 11 2 3 8 8 10 2 2 6

Mountain ............................... 17 2 5 12 7 7 5 1 6

Pacific .................................... 13 4 3 10 8 14 5 3 10

1 The total is less than the sum of the individual child care

provisions because many employees have access to more than

one of the benefits.

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

equal totals. Where applicable, dash indicates no employees in this

category or data do not meet publication criteria.
11

Table 7. Percent of medical insurance premiums paid by employer and employee, by

selected characteristics, private industry, National Compensation Survey, March 2003

Characteristics

Single coverage Family coverage

Employer

share

Employee

share

Employer

share

Employee

share

All workers participating in medical plans ... 82 18 70 30

Worker characteristics:

White-collar occupations ............................ 81 19 70 30

Blue-collar occupations .............................. 83 17 72 28

Full time ...................................................... 82 18 70 30

Union .......................................................... 88 12 81 19

Nonunion .................................................... 81 19 69 31

Average wage less than $15 per hour ........ 80 20 68 32

Average wage $15 per hour or higher ........ 83 17 73 27

Establishment characteristics:

Goods-producing ........................................ 84 16 75 25

Service-producing ....................................... 81 19 68 32

1-99 workers ............................................... 81 19 66 34

100 workers or more ................................... 82 18 73 27

Geographic areas:

Metropolitan areas ...................................... 82 18 70 30

Nonmetropolitan areas ............................... 81 19 70 30

New England .............................................. 80 20 72 28

Middle Atlantic ............................................ 83 17 72 28

East North Central ...................................... 82 18 74 26

West North Central ..................................... 82 18 71 29

South Atlantic ............................................. 78 22 66 34

East South Central ..................................... 82 18 68 32

West South Central .................................... 81 19 66 34

Mountain ..................................................... 80 20 68 32

Pacific ......................................................... 86 14 73 27

NOTE: Because of rounding, sums of

individual items may not equal totals. Where

applicable, dash indicates no employees in

this category or data do not meet publication

criteria.
12

Table 8. Percent of medical insurance participants required to contribute and average employee

contribution for single and family coverage, by selected characteristics, private industry, National

Compensation Survey, March 2003

Characteristic

Single coverage Family coverage

Employee

contributions not

required

Employee

contributions

required

Average

flat

monthly

contribution in

dollars

Employee

contributions not

required

Employee

contributions

required

Average

flat

monthly

contribution in

dollars

Total ...................................................... 22 78 $60.24 10 90 $228.98

Worker characteristics:

White-collar occupations ...................... 20 80 61.95 8 92 236.17

Blue-collar occupations ........................ 27 73 55.22 13 87 208.18

Service occupations ............................. – – – – – –

Full time ................................................ 22 78 59.63 10 90 227.52

Part time ............................................... – – – – – –

Union .................................................... 41 59 49.40 31 69 174.60

Nonunion .............................................. 20 80 61.31 7 93 234.35

Average wage less than $15 per hour .. 21 79 62.92 8 92 238.41

Average wage $15 per hour or higher .. 24 76 57.75 12 88 220.04

Establishment characteristics:

Goods-producing .................................. 22 78 50.87 13 87 190.81

Service-producing ................................. 23 77 64.15 9 91 244.08

1-99 workers ......................................... 28 72 66.63 13 87 263.24

100 workers or more ............................. 18 82 56.03 8 92 204.52

Geographic areas:

Metropolitan areas ................................ 23 77 59.76 10 90 228.28

Nonmetropolitan areas ......................... 21 79 63.19 9 91 233.31

New England ........................................ 19 81 65.79 8 92 220.59

Middle Atlantic ...................................... 26 74 59.78 15 85 228.58

East North Central ................................ 22 78 60.88 15 85 217.30

West North Central ............................... 20 80 59.97 12 88 238.68

South Atlantic ....................................... 16 84 63.61 4 96 246.54

East South Central ............................... 23 77 56.68 6 94 234.44

West South Central .............................. 21 79 60.89 5 95 243.63

Mountain ............................................... 21 79 61.24 8 92 234.83

Pacific ................................................... 32 68 52.75 11 89 202.79

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates

no employees in this category or data do not meet

publication criteria.
13

Table 9. Percent of medical participants by amount and type of employee contribution for single coverage, 

private industry, National Compensation Survey, March 2003

Characteristic All employees White-collar

occupations

Blue-collar

occupations

Service

occupations

Number (in thousands) with

contributory coverage ........................ 35,888 21,174 11,207 3,507

Percent

Total with contributory coverage ........... 100 100 100 100

Percent

Flat monthly amount ......................... 72 73 72 67

Less than $5.00 ............................ 1 1 1 1 ( )

$5.00 - 9.99 .................................. 2122

$10.00 - 14.99 .............................. 2231

$15.00 - 19.99 .............................. 2131

$20.00 - 29.99 .............................. 8889

$30.00 - 39.99 .............................. 10 9 11 7

$40.00 - 49.99 .............................. 10 9 11 9

$50.00 - 59.99 .............................. 9 10 8 9

$60.00 - 69.99 .............................. 8869

$70.00 - 79.99 .............................. 6674

$80.00 - 89.99 .............................. 2332

$90.00 - 99.99 .............................. 3334

$100.00 - 124.99 .......................... 6833

$125.00 or greater ........................ 4536

Composite rate2 ................................ 1 2 1 ( ) 1 ( )

Varies3 .............................................. 4445

Flexible benefits4 .............................. 2311

Percent of earnings .......................... 1 () 1 1 () 1

Exists, but unknown .......................... 18 16 19 24

Other ................................................. 3242

1 Less than 0.5 percent. 2 A composite rate is a set contribution covering more

than one benefit area, for example, health care and life

insurance. Cost data for individual plans cannot be

determined. 3 Based on worker attributes. For example, employee

contributions may vary based on earnings, length of

service, or age.

4 Amount varies by options selected under a "cafeteria

plan" or employer-sponsored reimbursement account.

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates no

employees in this category or data do not meet

publication criteria.
14

Table 10. Percent of medical participants by amount and type of employee contribution for family coverage, 

private industry, National Compensation Survey, March 2003

Characteristics All employees White-collar

occupations

Blue-collar

occupations

Service

occupations

Number (in thousands) with

contributory coverage ........................ 41,377 24,248 13,279 3,850

Percent

Total with contributory coverage ........... 100 100 100 100

Percent

Flat monthly amount ......................... 72 71 74 70

Less than $25.00 .......................... 1122

$25.00 - 49.99 .............................. 3252

$50.00 - 74.99 .............................. 4367

$75.00 - 99.99 .............................. 5543

$100.00 - 124.99 .......................... 6674

$125.00 - 149.99 .......................... 5571

$150.00 - 174.99 .......................... 7777

$175.00 - 199.99 .......................... 6664

$200.00 - 224.99 .......................... 5547

$225.00 - 249.99 .......................... 4452

$250.00 - 274.99 .......................... 4534

$275.00 - 299.99 .......................... 2322

$300.00 - 324.99 .......................... 4443

$325.00 - 349.99 .......................... 2233

$350.00 - 374.99 .......................... 2213

$375.00 - 399.99 .......................... 2225

$400.00 - 424.99 .......................... 2223

$425.00 - 449.99 .......................... 1211

$450.00 - 474.99 .......................... 1112

$475.00 - 499.99 .......................... 1111

$500.00 or greater ........................ 4536

Composite rate1 ................................ 1 1 2 ( ) 2 ( )

Varies3 .............................................. 3333

Flexible benefits4 .............................. 2211

Percent of earnings .......................... 2 ( ) 2 ( ) 2 ( ) 2 ( )

Exists, but unknown .......................... 19 19 18 22

Other ................................................. 3334

1 A composite rate is a set contribution covering more

than one benefit area, for example, health care and life

insurance. Cost data for individual plans cannot be

determined. 2 Less than 0.5 percent. 3 Based on worker attributes. For example, employee

contributions may vary based on earnings, length of

service, or age.

4 Amount varies by options selected under a "cafeteria

plan" or employer-sponsored reimbursement account.

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates no

employees in this category or data do not meet

publication criteria.
15

Table 11. Average number of paid vacation days, by minimum length of service requirement for

selected characteristics, private industry, National Compensation Survey, March 2003

Characteristic

Length of service1

After 1

year

After 3

years

After 5

years

After 10

years

After 15

years

After 20

years

After 25

years

All workers with paid vacations2 ............. 8.8 10.7 13.4 16.0 17.5 18.3 19.1

Worker characteristics:

White-collar occupations ........................ 9.8 11.5 14.3 17.0 18.8 19.6 20.4

Blue-collar occupations .......................... 7.2 9.4 11.7 14.3 15.8 16.8 17.6

Service occupations ............................... 8.3 10.7 13.4 15.5 16.3 16.7 17.1

Full time .................................................. 8.9 10.9 13.6 16.3 17.9 18.7 19.5

Part time ................................................. 7.4 9.2 11.4 13.1 14.4 15.0 15.7

Union ...................................................... 8.6 11.4 13.8 17.2 20.1 22.3 24.6

Nonunion ................................................ 8.8 10.7 13.3 15.8 17.3 17.9 18.5

Average wage less than $15 per hour .... 7.6 9.9 12.4 14.8 16.1 16.7 17.2

Average wage $15 per hour or higher .... 10.3 11.8 14.7 17.5 19.4 20.5 21.5

Establishment characteristics:

Goods-producing .................................... 7.7 9.7 12.0 14.8 16.5 17.7 18.6

Service-producing ................................... 9.2 11.1 13.9 16.4 17.9 18.5 19.2

1-99 workers ........................................... 7.9 9.9 12.0 14.2 15.2 15.6 16.1

100 workers or more ............................... 9.6 11.6 14.7 17.7 19.9 21.0 22.1

Geographic areas:

Metropolitan areas .................................. 9.0 10.9 13.5 16.1 17.7 18.4 19.2

Nonmetropolitan areas ........................... 7.3 10.0 12.3 15.0 16.4 17.5 18.2

New England .......................................... 10.3 12.0 14.0 15.6 17.0 17.4 17.9

Middle Atlantic ........................................ 9.1 10.6 12.8 14.9 16.3 17.0 17.8

East North Central .................................. 8.6 10.9 13.4 16.6 18.8 19.8 21.0

West North Central ................................. 9.0 11.0 13.1 16.0 18.0 18.9 20.1

South Atlantic ......................................... 8.3 10.2 13.0 15.5 17.1 17.9 18.5

East South Central ................................. 7.8 10.4 13.6 16.7 18.2 19.4 19.7

West South Central ................................ 8.5 10.3 12.5 15.0 16.2 17.1 17.7

Mountain ................................................. 9.6 11.6 14.2 16.7 18.1 18.7 19.4

Pacific ..................................................... 8.9 11.1 14.9 17.3 18.3 19.0 19.6

1 Employees receiving no vacation days are

included as receiving 0 days. 2 Employees are either granted a specific number

of days after completion of the indicated length of

service, or accrue days during the next 12-month

period. The total number of days is assumed

available for use immediately upon completion of

service interval.

NOTE: Where applicable, dash indicates no

employees in this category or data do not meet

publication criteria.
16

Table 12. Percent of workers with paid vacations by number of paid vacation days provided for selected periods of

service,1 private industry by occupational group, National Compensation Survey, March 2003

Vacation policy

Percent with paid vacation days by length of service2

Under 5

days 5 days

Over 5

but

under

10 days

10 days

Over 10

but

under

15 days

15 days

Over 15

but

under

20 days

20 days Over 20

days

All workers

After 1 year ................................... 5 39 2 37 3 7 3 2 2

After 3 years ................................. 2 12 3 59 4 8 5 3 3

After 5 years ................................. 1 8 2 33 4 36 3 5 8

After 10 years ............................... 1 7 1 13 1 44 4 16 13

After 15 years ............................... 1 7 1 11 1 23 2 37 17

After 20 years ............................... 1 7 1 11 1 19 1 35 25

After 25 years ............................... 3 ( ) 8 1 11 3 ( ) 18 1 25 36

White-collar occupations

After 1 year ................................... 6 27 1 43 3 9 4 4 4

After 3 years ................................. 2 7 2 59 4 12 5 4 4

After 5 years ................................. 1 5 1 28 5 41 3 7 10

After 10 years ............................... 1 4 1 9 1 45 4 20 16

After 15 years ............................... 3 () 4 3 ( ) 8 1 20 2 44 21

After 20 years ............................... 3 () 4 3 ( ) 8 1 17 1 40 29

After 25 years ............................... 3 () 4 3 () 8 3 ( ) 16 1 29 41

Blue-collar occupations

After 1 year ................................... 3 57 2 30 3 3 1 3 ( ) 3 ( )

After 3 years ................................. 2 19 2 65 4 4 2 1 3 ( )

After 5 years ................................. 1 12 2 46 3 29 2 3 3

After 10 years ............................... 1 10 3 ( ) 19 1 47 4 12 6

After 15 years ............................... 1 10 3 ( ) 16 1 28 3 33 8

After 20 years ............................... 1 10 3 ( ) 16 3 ( ) 20 1 33 18

After 25 years ............................... 1 10 3 ( ) 16 3 ( ) 19 1 23 29

Service occupations

After 1 year ................................... 6 47 3 25 3 4 7 1 3

After 3 years ................................. 2 16 7 50 4 6 9 3 3

After 5 years ................................. 3 ( ) 14 5 26 3 31 5 3 13

After 10 years ............................... 3 ( ) 14 3 15 2 32 3 14 18

After 15 years ............................... 3 ( ) 14 3 13 1 24 3 21 20

After 20 years ............................... 3 ( ) 14 3 13 1 23 2 19 25

After 25 years ............................... 3 ( ) 14 3 13 3 ( ) 22 3 15 29

1 Employees are either granted a specific number of days

after completion of the indicated length of service, or accrue

days during the next 12-month period. The total number of

days are assumed available for use immediately upon

completion of service interval. 2 Employees receiving no vacation days are included as

receiving under 5 days.

3 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items may

not equal totals. Where applicable, dash indicates no

employees in this category or data do not meet publication

criteria.
17

Table 13. Percent of workers by number of paid holidays provided and average number of paid days per year, by selected characteristics,

private industry, National Compensation Survey, March 2003

Characteristic

Average

number

of paid

holidays

Paid holidays1

Fewer

than 5

days

5 days 6 days 7 days 8 days 9 days 10 days 11 days 12 days

More

than 12

days

All workers with paid holidays ............... 8 5 4 23 13 12 10 13 10 4 6

Worker characteristics:

White-collar occupations ...................... 8 3 3 23 12 12 10 15 11 5 6

Blue-collar occupations ........................ 8 7 5 22 14 12 10 12 9 3 6

Service occupations ............................. 7 13 5 24 14 13 9 5 12 2 3

Full time ................................................ 8 4 3 21 13 13 10 14 11 4 6

Part time ............................................... 7 16 6 37 11 8 6 5 4 2 4

Union .................................................... 10 4 2 7 8 9 13 13 14 9 20

Nonunion .............................................. 8 6 4 25 13 13 9 13 10 3 4

Average wage less than $15 per hour .. 7 8 5 30 15 12 9 9 7 2 3

Average wage $15 per hour or higher .. 9 2 2 14 11 13 11 17 14 6 9

Establishment characteristics:

Goods-producing .................................. 9 5 4 11 12 12 9 17 15 4 10

Service-producing ................................. 8 6 4 28 13 13 10 11 8 4 4

1-99 workers ......................................... 7 8 5 27 17 14 10 9 6 2 3

100 workers or more ............................. 9 3 3 19 9 11 10 16 14 6 9

Geographic areas:

Metropolitan areas ................................ 8 5 4 22 14 13 10 13 10 4 6

Nonmetropolitan areas ......................... 7 12 5 32 8 10 7 12 10 2 3

New England ........................................ 9 10 2 14 4 13 4 13 22 9 9

Middle Atlantic ...................................... 9 3 3 15 13 10 8 12 18 9 9

East North Central ................................ 8 3 1 30 16 11 10 12 9 2 7

West North Central ............................... 8 7 3 26 7 17 11 15 7 2 6

South Atlantic ....................................... 8 6 8 24 11 12 9 16 8 3 2

East South Central ............................... 7 10 8 22 17 14 8 9 3 5 5

West South Central .............................. 8 7 5 25 16 13 12 13 3 2 6

Mountain ............................................... 8 7 – 24 12 20 6 13 12 4 2

Pacific ................................................... 8 6 3 21 15 11 15 11 9 4 5

1 Fractional holiday amounts were rounded to the nearest full number

of days.

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

totals. Where applicable, dash indicates no employees in this category or

data do not meet publication criteria.
18

Table 14. Percent of workers participating in short-term disability plans, by method of funding and

selected characteristics, private industry, National Compensation Survey, March 2003

Characteristic Unfunded1 Insured Self-insured Legally

required Other

All workers with short-term disability coverage ...... 10 38 34 15 2

Worker characteristics:

White-collar occupations ....................................... 13 36 39 11 1

Blue-collar occupations ......................................... 7 43 33 13 4

Service occupations .............................................. 4 33 17 44 2

Full time ................................................................. 11 39 35 13 2

Part time ................................................................ 2 26 22 47 3

Union ..................................................................... 3 35 39 15 8

Nonunion ............................................................... 11 38 34 15 1

Average wage less than $15 per hour ................... 8 39 30 22 2

Average wage $15 per hour or higher ................... 12 37 39 10 2

Establishment characteristics:

Goods-producing ................................................... 9 40 37 11 4

Service-producing .................................................. 11 37 33 18 1

1-99 workers .......................................................... 8 43 24 23 1

100 workers or more .............................................. 12 34 41 10 3

Geographic areas:

Metropolitan areas ................................................. 10 38 35 15 2

Nonmetropolitan areas .......................................... 12 35 34 16 3

New England ......................................................... 15 54 31 2 () 1

Middle Atlantic ....................................................... 4 29 18 48 1

East North Central ................................................. 8 43 45 - 3

West North Central ................................................ 9 35 55 - 1

South Atlantic ........................................................ 13 42 44 2 () 1

East South Central ................................................ 14 43 38 - 5

West South Central ............................................... 16 34 47 2 () 3

Mountain ................................................................ 16 38 27 4 15

Pacific .................................................................... 17 44 29 9 1

1 A plan in which the establishment pays the

benefit from operating revenue. 2 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates

no employees in this category or data do not meet

publication criteria.
19

Table 15. Percent of workers participating in life insurance plans by employee contribution

requirement, by selected characteristics, private industry, National Compensation Survey, March 2003

Characteristic

Life insurance

Employee

contributions not

required

Employee

contributions

required

Not determinable

All workers with basic life insurance coverage ...... 88 7 5

Worker characteristics:

White-collar occupations ....................................... 90 6 4

Blue-collar occupations ......................................... 88 6 6

Service occupations .............................................. 80 12 7

Full time ................................................................. 88 7 5

Part time ................................................................ 89 6 5

Union ..................................................................... 89 2 9

Nonunion ............................................................... 88 7 5

Average wage less than $15 per hour ................... 87 8 5

Average wage $15 per hour or higher ................... 89 6 5

Establishment characteristics:

Goods-producing ................................................... 90 4 7

Service-providing ................................................... 88 8 5

1-99 workers .......................................................... 88 8 4

100 workers or more .............................................. 88 6 6

Geographic areas:

Metropolitan areas ................................................. 88 6 5

Nonmetropolitan areas .......................................... 87 9 4

New England ......................................................... 90 3 8

Middle Atlantic ....................................................... 86 3 11

East North Central ................................................. 90 7 3

West North Central ................................................ 88 5 7

South Atlantic ........................................................ 89 8 3

East South Central ................................................ 78 16 7

West South Central ............................................... 86 10 4

Mountain ................................................................ 85 10 5

Pacific .................................................................... 95 2 3

NOTE: Because of rounding, sums of individual

items may not equal totals. Where applicable, dash

indicates no employees in this category or data do

not meet publication criteria.
20

Table 16. Percent of workers participating in life insurance benefits, by method of payment and selected

characteristics, private industry, National Compensation Survey, March 2003

Characteristic

Basic life insurance method of payment

Fixed

multiple of

earnings

Variable

multiple

of

earnings

Flat

dollar

amount

Variable

dollar

amount

Other

Not

determin

able

All workers with basic life insurance coverage ...... 53 4 33 5 2 4

Worker characteristics:

White-collar occupations ....................................... 63 4 25 3 2 3

Blue-collar occupations ......................................... 37 3 45 8 2 5

Service occupations .............................................. 48 2 41 7 1 () 2

Full time ................................................................. 54 4 32 5 2 4

Part time ................................................................ 39 2 47 4 3 4

Union ..................................................................... 31 2 46 14 1 6

Nonunion ............................................................... 56 4 31 4 2 3

Average wage less than $15 per hour ................... 48 3 40 5 1 4

Average wage $15 per hour or higher ................... 58 4 27 5 2 4

Establishment characteristics:

Goods-producing ................................................... 44 4 40 7 2 3

Service-producing .................................................. 57 4 30 4 1 4

1-99 workers .......................................................... 44 3 46 3 1 4

100 workers or more .............................................. 59 4 25 6 2 4

Geographic areas:

Metropolitan areas ................................................. 55 4 31 5 2 4

Nonmetropolitan areas .......................................... 40 3 49 5 2 2

New England ......................................................... 76 3 15 1 () 2 4

Middle Atlantic ....................................................... 57 4 25 9 1 5

East North Central ................................................. 48 3 41 4 2 3

West North Central ................................................ 52 3 38 4 1 2

South Atlantic ........................................................ 53 6 32 5 1 3

East South Central ................................................ 37 4 43 8 2 6

West South Central ............................................... 56 5 29 2 2 6

Mountain ................................................................ 49 2 41 2 2 4

Pacific .................................................................... 56 1 30 6 3 3

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates

no employees in this category or data do not meet

publication criteria.
21

Table 17. Percent of workers participating in life insurance plans with multiple of earnings benefit

formulas, by selected characteristics, private industry, National Compensation Survey, March 2003

Characteristic

Multiple of earnings amounts1

Less than

1.0 times

earnings

1.0 times

earnings

Over 1.0

and under

2.0 times

earnings

2.0 times

earnings

Over 2.0

times

earnings

All workers with a multiple of earnings formula ..... 1 56 13 24 6

Worker characteristics:

White-collar occupations ....................................... 1 53 12 27 7

Blue-collar occupations ......................................... 2 57 15 21 6

Service occupations .............................................. 2 ( ) 70 18 11 2 ( )

Full time ................................................................. 1 55 14 25 6

Part time ................................................................ 1 65 5 18 10

Union ..................................................................... 3 72 6 15 4

Nonunion ............................................................... 1 54 14 25 6

Average wage less than $15 per hour ................... 1 61 15 18 5

Average wage $15 per hour or higher ................... 1 51 12 29 7

Establishment characteristics:

Goods-producing ................................................... 2 46 18 27 6

Service-producing .................................................. 2 ( ) 58 12 24 6

1-99 workers .......................................................... 1 56 13 23 7

100 workers or more .............................................. 1 55 13 25 6

Geographic areas:

Metropolitan areas ................................................. 1 56 12 25 6

Nonmetropolitan areas .......................................... 1 50 22 23 4

New England ......................................................... 1 66 15 18 2 ( )

Middle Atlantic ....................................................... 1 54 10 29 6

East North Central ................................................. 3 50 18 24 5

West North Central ................................................ 2 ( ) 52 15 30 2

South Atlantic ........................................................ 2 ( ) 59 11 26 3

East South Central ................................................ 0 47 27 14 12

West South Central ............................................... 0 61 9 25 5

Mountain ................................................................ 0 58 12 22 8

Pacific .................................................................... 1 52 10 23 15

1 Includes participants in plans in which insurance

equaled a multiple of earnings, plus or minus a

specified amount. 2 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash

indicates no employees in this category or data do not

meet publication criteria.
22

Table 18. Percent of workers participating in life insurance plans with flat dollar benefit

formulas, by selected characteristics, private industry, National Compensation Survey, March

2003

Characteristic

Flat dollar amounts

Less

than

$10,000

$10,000

and

under

$15,000

$15,000

and

under

$20,000

$20,000

and

under

$25,000

$25,000

and

under

$30,000

$30,000

or more

All workers with a flat dollar benefit

formula .................................................. 8 29 20 14 12 17

Worker characteristics:

White-collar occupations ...................... 6 22 20 17 15 20

Blue-collar occupations ........................ 8 32 20 12 12 17

Service occupations ............................. 18 44 16 10 4 9

Full time ................................................ 7 29 20 13 13 18

Part time ............................................... 27 30 10 23 6 4

Union .................................................... 11 30 17 10 13 19

Nonunion .............................................. 8 28 20 14 12 17

Average wage less than $15 per hour .. 11 36 18 15 9 11

Average wage $15 per hour or higher .. 5 18 22 13 16 26

Establishment characteristics:

Goods-producing .................................. 7 30 20 9 15 19

Service-producing ................................. 9 28 19 16 11 16

1-99 workers ......................................... 9 30 23 9 11 18

100 workers or more ............................. 7 27 16 19 13 17

Geographic areas:

Metropolitan areas ................................ 8 28 18 15 14 17

Nonmetropolitan areas ......................... 9 32 24 9 5 20

New England ........................................ 28 22 8 18 5 19

Middle Atlantic ...................................... 8 43 7 5 15 22

East North Central ................................ 4 15 31 11 17 23

West North Central ............................... 3 37 23 6 10 22

South Atlantic ....................................... 21 26 13 19 7 14

East South Central ............................... 3 57 25 5 1 9

West South Central .............................. 1 36 16 22 16 9

Mountain ............................................... 10 25 9 26 20 9

Pacific ................................................... 10 25 20 17 9 19

NOTE: Because of rounding, sums of

individual items may not equal totals. Where

applicable, dash indicates no employees in this

category or data do not meet publication

criteria.
23

Table 19. Percent of workers with access to nonproduction bonus by type of bonus and stock options, by selected characteristics, private

industry, National Compensation Survey, March 2003

Characteristic

Nonproduction bonus

All

nonproduction bonuses

Attendance

bonus

Cash profit

sharing

bonus

Employee

recognition

bonus

End of year

bonus

Holiday

bonus

Payment in

lieu of

benefits

bonus

Safety

bonus

All workers ............................................ 49 3 5 5 12 10 4 2

Worker characteristics:

White-collar occupations ...................... 51 2 5 4 13 9 5 1 ( )

Blue-collar occupations ........................ 53 6 8 3 13 12 5 4

Service occupations ............................. 36 2 1 8 8 8 3 1 ( )

Full time ................................................ 54 3 6 5 13 10 5 2

Part time ............................................... 30 1 1 2 6 9 1 1 ( )

Union .................................................... 45 6 7 6 7 4 5 4

Nonunion .............................................. 49 3 5 4 12 10 4 1

Average wage less than $15 per hour .. 44 3 4 4 11 12 3 1

Average wage $15 per hour or higher .. 56 2 7 5 13 6 6 2

Establishment characteristics:

Goods-producing .................................. 56 6 11 4 12 10 7 4

Service-producing ................................. 47 2 3 5 12 9 4 1

1-99 workers ......................................... 48 1 4 4 15 12 4 1

100 workers or more ............................. 50 5 6 5 8 7 5 2

Geographic areas:

Metropolitan areas ................................ 49 3 5 5 12 9 5 1

Nonmetropolitan areas ......................... 47 4 7 3 13 13 3 3

New England ........................................ 51 2 4 11 5 9 6 5

Middle Atlantic ...................................... 48 2 4 6 11 5 8 1

East North Central ................................ 56 5 9 3 12 16 7 1

West North Central ............................... 47 5 3 5 16 6 2 1

South Atlantic ....................................... 49 3 3 5 12 10 4 1

East South Central ............................... 52 4 4 9 17 8 4 1 ( )

West South Central .............................. 43 1 3 1 10 11 1 () 3

Mountain ............................................... 40 2 5 3 16 8 2 1

Pacific ................................................... 46 1 8 3 10 7 3 1

See footnotes at end of table.
24

Table 19. Percent of workers with access to nonproduction bonus by type of bonus and stock options, by selected characteristics, private industry,

National Compensation Survey, March 2003 — Continued

Characteristic

Nonproduction bonus

Stock

Suggestion options

bonus

Hiring

bonus

Longevity

bonus

Referral

bonus

Retention

bonus

Unionrelated

bonus

Management

incentive

bonus

Other

bonus

All workers ............................................ 12281 1 () 2 5 8

Worker characteristics:

White-collar occupations ...................... 13191 1 ( ) 2 6 12

Blue-collar occupations ........................ 3125 1 ( ) 1 () 1 5 6

Service occupations ............................. 1119 1 () - 1 () 3 2

Full time ................................................ 22291 1 ( ) 2 6 10

Part time ............................................... 1 1 1 7 1- 1 () 2 4

Union .................................................... 5 1 () 1 3 1 () 1 3 6 8

Nonunion .............................................. 1 2 2 9 1- 2 5 8

Average wage less than $15 per hour .. 1128 1 ( ) 1 () 1 4 6

Average wage $15 per hour or higher .. 23191 1 ( ) 3 7 13

Establishment characteristics:

Goods-producing .................................. 3127 1 ( ) 1 () 3 7 9

Service-producing ................................. 12191 1 () 2 5 8

1-99 workers ......................................... 1 () 1 1 5 1 1 () 2 4 4

100 workers or more ............................. 2 3 2 11 1 1 ( ) 2 6 14

Geographic areas:

Metropolitan areas ................................ 12281 1 () 2 5 9

Nonmetropolitan areas ......................... 1126 1 ( ) 1 () 1 4 3

New England ........................................ 12483 1 () 2 5 8

Middle Atlantic ...................................... 22291 1 () 2 6 7

East North Central ................................ 2128 1 ( ) 1 ( ) 1 10 7

West North Central ............................... 1 2 1 () 6 1 1 () 3 2 3

South Atlantic ....................................... 1 2 2 11 1 1 ( ) 2 3 10

East South Central ............................... 4 4 1 11 - - 2 6 7

West South Central .............................. 1 () 4 1 () 7 1 ( ) 1 ( ) 1 4 10

Mountain ............................................... 1 2 1 8 1- 3 2 7

Pacific ................................................... 1114 1 ( ) 1 ( ) 2 5 13

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category or data do

not meet publication criteria.
25

Table 20. Percent of establishments offering health and retirement benefits, and retiree health benefits, by establishment characteristics,

private industry, National Compensation Survey, March 2003

Characteristic Retirement

benefits Defined benefits Definedcontribution

Health care

benefits1

Retiree health

under age 65

Retiree health

age 65 and over

All establishments ................................. 47 10 45 58 4 4

Establishment characteristics:

Goods-producing .................................. 45 11 42 60 4 4

Service-producing ................................. 47 10 46 57 5 4

1-99 workers ......................................... 45 9 44 56 4 3

100 workers or more ............................. 88 38 82 95 19 15

Geographic areas:

Metropolitan areas ................................ 51 10 49 60 5 4

Nonmetropolitan areas ......................... 32 9 31 51 3 3

New England ........................................ 48 11 48 54 1 1

Middle Atlantic ...................................... 49 17 44 63 6 5

East North Central ................................ 62 13 61 84 6 5

West North Central ............................... 38 5 36 36 2 2

South Atlantic ....................................... 54 5 53 55 5 3

East South Central ............................... 52 5 51 58 11 11

West South Central .............................. 39 13 39 58 7 7

Mountain ............................................... 25 7 23 42 2 2

Pacific ................................................... 45 12 43 58 3 3

1 Health may include a medical plan, or a separate dental, vision, or

prescription drug plan.

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

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

or data do not meet publication criteria.
26

Chapter 2. Health Benefits

The NCS collects information on a variety of health

benefits, including medical, prescription drug, dental,

and vision care. Definitions of major types of plans,

key provisions, and related terms follow.

Medical Care

Medical care plans provide services or payments for services rendered in the hospital or by a physician. Those plans

which provide only dental, vision, or prescription drug coverage are tabulated separately and described in their own

sections.

Health care plans and systems

Indemnity plan. A type of medical plan that reimburses the

patient or the provider as expenses are incurred.

Traditional indemnity plan. An indemnity medical plan that

allows the participant the choice of any provider, without

affecting reimbursement. This type of plan reimburses the

patient or the provider as expenses are incurred.

Preferred provider organization (PPO). An indemnity plan

that provides coverage to participants through a network of

selected health care providers (such as hospitals and physicians). Enrollees may go outside the network, but when they

do, they incur higher costs in the form of higher deductibles,

higher coinsurance rates, or nondiscounted charges from

providers. This type of plan is now called an “indemnity

inside and outside of network” plan in the NCS.

In and out of network. A provision in medical care plans that

designates certain physicians and hospitals as network providers. Services sought from health care providers who do

not belong to the network are reimbursed at a lower rate than

the rate at which network providers are reimbursed. Under

this type of plan, there may be a requirement to obtain a

primary care physician’s referral prior to obtaining medical

care from a specialist. If this requirement is not met, benefits

may be reduced.

Prepaid plan. A health care plan that assumes both the financial risks associated with providing comprehensive medical services and the responsibility for health care delivery in

a particular geographic area, usually in return for a fixed,

prepaid fee from members. The term “prepaid plan” is synonymous with “health maintenance organization” (HMO).

Point-of-service option (POS). A POS plan is an HMO-PPO

hybrid, sometimes referred to as an “open-ended” HMO when

offered by an HMO. POS plans resemble HMO’s for in-network services. Services rendered outside of the network are

usually reimbursed in a manner similar to the way traditional

indemnity plans are reimbursed (for example, provider reimbursement based on a fee schedule or on usual, customary,

and reasonable charges).

Limitations on coverage

Maximum dollar limit. The maximum amount payable by the

insurer for covered expenses for the insured and each covered dependent while enrolled in the health plan. Plans can

have a yearly or a lifetime maximum dollar limit. The most

typical maximum limit is a lifetime amount of $1 million per

individual.

Maximum out-of-pocket expense. The maximum dollar amount

a group member is required to pay out of pocket during a

year. Until this maximum is met, the plan and the member

share in the cost of covered expenses. After the maximum is

reached, the insurance carrier pays all covered expenses,

often up to a lifetime maximum.

Deductible. A fixed dollar amount during the benefit period,

usually a year, that an insured person pays before the insurer starts to make payments for covered medical services.

Plans may have both individual and family deductibles. Some

plans have separate deductibles for specific services. For

example, a plan may have a hospitalization deductible per

admission. Deductibles may differ between services received

from an approved provider (that is, a provider with whom the

insurer has a contract or an agreement specifying payment

levels and other requirements) and those received from providers not on the approved list.

Coinsurance. A form of medical cost sharing that requires an

insured person to pay a stated percentage of medical expenses after the deductible amount, if any, is paid. Once any

deductible amount and coinsurance are paid, the insurer is

responsible for the rest of the reimbursement for covered

benefits, up to the maximum allowed charges. The individual

is responsible for any charges in excess of what the insurer

determines to be “usual, customary, and reasonable.” Coinsurance rates may differ between services received from an

approved provider and those received by providers not on

the list of approved providers.
27

Premium. An agreed-upon fee paid for coverage of medical

benefits for a defined period. Premiums can be paid by employers, unions, or employees or can be shared by both the

insured and the plan sponsor.

Self-insured plan. A plan offered by employers who directly

assume the major cost of health insurance for their employees. Some self-insured plans bear the entire risk. Other selfinsured employers insure against large claims by purchasing

stop-loss coverage. Some self-insured employers contract

with insurance carriers or third-party administrators for claims

processing and other administrative services; other self-insured plans are self-administered.

Insured plan. A plan in which the employer contracts with

another organization to assume financial responsibility for

the costs of enrollees’ medical claims.

Alternatives to hospitalization

Alternatives to hospitalization are offered as a means of reducing costs.

Extended-care facilities. These facilities provide skilled nursing care, rehabilitation, and convalescent services to patients

who require less intensive treatment than that provided in a

hospital.

Home health care. These services provide skilled nursing

and related care to patients in their own homes.

Hospice care. These programs provide nursing care and

psychological support to terminally ill patients and their families, either on an inpatient basis or in the patient’s home.

Mental health and substance abuse treatment

These services include inpatient and outpatient care for psychiatric conditions and alcohol or drug dependency. The

coverage is generally more restrictive than that for general

medical conditions.

Detoxification. This treatment involves supervised care by

medical personnel that is designed to reduce or eliminate the

symptoms of chemical dependency. Treatment can occur on

an inpatient or outpatient basis.

Rehabilitation. These services are intended to alter the behavior of substance abusers. They usually are provided after detoxification is complete. Treatment can occur on an

inpatient or outpatient basis.

Prescription Drugs

Prescription drug plans provide coverage for outpatient prescription drugs. Prescription drugs dispensed during a hospital stay are covered as hospital miscellaneous charges.

Name-brand drugs. These are drugs that once were, or still

are, under patents.

Generic drugs. Once a drug’s patent has expired, some plans

provide more generous coverage for same-formula generic

drugs than for brand-name drugs; the practice is adopted as

a cost containment measure.

Mail-order drugs. As a cost containment measure, some

plans use mail-order pharmacies that typically provide 3-

month supplies of maintenance drugs.

Formulary drugs. List of drugs approved by the health care

provider. Drugs not approved by the health care provider are

nonformulary drugs for which enrollees receive limited or no

reimbursement.

Dental Care

Dental care plans provide services or payments for preventive and restorative care and related dental services.

Preventive services. Such services include routine exams

and x rays.

Restorative services. These services include fillings, dental

surgery, endodontics (root canal therapy), periodontics (treatment for gum disease), crowns, and prosthetics (replacement of missing teeth with bridgework or dentures).

Orthodontia services. Services for the correction of malpositioned teeth.

Vision Care

Vision care plans provide coverage for eyeglasses, eye exams, and contact lenses. Coverage is typically limited and is

subject to applicable copayments or scheduled cash allowances.
28

Table 21. Medical care benefits: Fee arrangement and financial intermediary, all private industry workers, National

Compensation Survey, 2002

Fee arrangement All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar 

Blue

collar Service 

Goods

producing

Service

producing

1-99

workers

100

workers

or more

Indemnity ............................... 67 66 71 61 69 66 64 70 73 66

Self insured .......................... 30 29 33 22 32 29 24 34 41 28

With administrative

services only contract ....... 20 20 23 12 22 19 15 24 26 19

Without administrative

services only contract ....... 6 5 9 3 8 6 5 7 13 5

Not determinable ............... 3 4 1 6 2 4 4 3 2 4

Insured ................................. 37 37 37 39 37 37 40 36 33 38

Combined financed .............. 1 ( ) 1 () - - - 1 () - 1 ( ) 1 ( ) 1 ( )

Traditional indemnity ........... 7 6 8 - 8 7 6 8 - 6

Self insured ........................ 3 2 4 - 3 3 2 4 - 2

With administrative

services only contract ...... 1 1 1 - 2 1 1 () 2 - 1

Without administrative

services only contract ...... 1 1 3 - 2 1 2 1 - 1

Not determinable .............. 1 ( ) 1 ( ) 1 () - 1 ( ) 1 ( ) 1 ( ) 1 () - 1 ( )

Insured ............................... 4 4 4 - 5 4 4 4 - 4

Combined financed ............ - - - - - - - - - -

Indemnity in and out of

network ............................... 58 58 61 - 59 58 57 60 - 58

Self insured ........................ 26 26 29 19 28 26 22 30 31 26

With administrative

services only contract ...... 18 18 22 11 21 17 15 21 23 18

Without administrative

services only contract ...... 5 5 6 3 6 5 3 6 7 5

Not determinable .............. 3 4 1 5 1 4 4 2 1 3

Insured ............................... 32 32 32 34 31 32 35 30 28 33

Combined financed ............ 1 ( ) 1 () - - - 1 () - 1 ( ) 1 ( ) 1 ( )

Indemnity in and out of

network without primary

care physician ................... 48 46 50 45 48 47 48 47 45 48

Self insured ...................... 22 21 25 15 23 21 19 24 25 21

With administrative

services only contract .... 16 15 19 8 18 15 13 18 18 16

Without administrative

services only contract .... 4 3 5 2 4 4 3 4 6 3

Not determinable ............ 2 3 1 5 1 3 4 1 1 2

Insured ............................. 26 26 25 29 25 26 30 23 20 27

Combined financed .......... 1 ( ) 1 () - - - 1 () - 1 ( ) 1 ( ) 1 ( )

See footnotes at end of table.
29

Table 21. Medical care benefits: Fee arrangement and financial intermediary, all private industry workers, National

Compensation Survey, 2002 — Continued

Fee arrangement All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar 

Blue

collar Service 

Goods

producing

Service

producing

1-99

workers

100

workers

or more

Indemnity in and out of

network with primary care

physician ........................... 11 12 11 8 11 11 8 13 14 10

Self insured ...................... 5 5 4 3 5 5 3 6 6 4

With administrative

services only contract .... 3 2 3 3 2 3 2 3 5 2

Without administrative

services only contract .... 1 2 1 1 2 1 1 () 2 1 1

Not determinable ............ 1 1 1 ( ) 1 ( ) 1 () 1 1 () 1 1 () 1

Insured ............................. 6 6 7 5 6 6 5 7 8 6

Combined financed .......... - - - - - - - - - -

Other2 .................................. 2 2 1 1 2 2 1 2 3 2

Prepaid .................................. 33 34 29 39 31 34 36 30 27 34

Self insured .......................... 3 4 3 2 6 2 2 4 2 3

Insured ................................. 30 30 27 37 25 31 34 26 24 30

Combined financed .............. - - - - - - - - - -

Prepaid in network only ....... 22 23 19 25 19 23 24 21 16 23

Self insured ........................ 2 2 2 2 2 2 2 2 1 2

Insured ............................... 20 21 17 23 16 22 22 19 15 21

Combined financed ............ - - - - - - - - - -

Prepaid in and out of

network ............................... 11 11 11 14 12 10 13 10 11 11

Self insured ........................ 1 2 1 1 () 4 1 () 1 2 1 1

Insured ............................... 10 9 10 14 9 10 12 8 10 10

Combined financed ............ - - - - - - - - - -

1 Less than 0.5 percent. 2 Includes exclusive provider organizations, which are groups of

hospitals and physicians that contract to proivde compehensive medical

services. Participants are required to obtain services from members of

the organization in order to receive plan benefits.

NOTE: Where applicable, dash indicates no employees in this

category, or data do not meet publication criteria. 
30

Table 22. Medical care benefits: Participation and employer premiums per participant by requirements for employee

contributions for medical care plans, single coverage, all private industry workers, National Compensation Survey,

March 2003

Characteristic

Total Employee contribution

not required Employee contribution required

Percent of

participating

employees

Average

premium

per participant

Percent of

participating

employees

Average

premium

per participant

Percent of

participating

employees

Average

premium

per participant

Average

monthly

employee

contribution

Total ...................................................... 100 $212.31 22 $248.20 78 $201.89 $60.24

Worker characteristics:

White-collar occupations ....................... 100 215.98 20 257.94 80 205.23 61.95

Blue-collar occupations ......................... 100 206.70 27 232.20 73 197.20 55.22

Full time ................................................. 100 213.92 22 249.97 78 203.54 59.63

Union ..................................................... 100 227.29 41 250.63 59 210.95 49.40

Nonunion ............................................... 100 210.30 20 247.53 80 201.00 61.31

Average wage less than $15 per hour ... 100 204.07 21 234.06 79 195.93 62.92

Average wage $15 per hour or higher ... 100 219.75 24 259.78 76 207.43 57.75

Establishment

 characteristics:

Goods producing ................................... 100 205.90 22 228.01 78 199.50 50.87

Service producing .................................. 100 214.98 23 256.58 77 202.89 64.15

1-99 workers .......................................... 100 214.33 28 258.86 72 196.60 66.63

100 workers or more ............................. 100 210.78 18 235.43 82 205.38 56.03

Geographic areas:

Metropolitan areas ................................. 100 210.44 23 245.39 77 200.14 59.76

Nonmetropolitan areas .......................... 100 224.07 21 267.62 79 212.65 63.19

New England ......................................... 100 213.65 19 - 81 200.01 65.79

Middle Atlantic ....................................... 100 221.96 26 261.90 74 207.85 59.78

East North Central ................................. 100 213.65 22 245.62 78 204.61 60.88

West North Central ................................ 100 213.37 20 240.25 80 206.68 59.97

South Atlantic ........................................ 100 200.31 16 236.29 84 193.41 63.61

East South Central ................................ 100 209.69 23 218.68 77 207.07 56.68

West South Central ............................... 100 210.49 21 248.41 79 200.16 60.89

Mountain ................................................ 100 - 21 - 79 188.87 61.24

Pacific .................................................... 100 222.32 32 258.44 68 205.58 52.75

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

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

or data do not meet publication criteria.
31

Table 23. Medical care benefits: Participation and employer premiums per participant by requirements for employee

contribution for medical care plans, family coverage, all private industry workers, National Compensation Survey,

March 2003

Characteristic

Total Employee contribution

not required Employee contribution required

Percent of

participating

employees

Average

premium

per participant

Percent of

participating

employees

Average

premium

per participant

Percent of

participating

employees

Average

premium

per participant

Average

monthly

employee

contribution

Total ...................................................... 100 $497.02 10 - 90 $482.15 $228.98

Worker characteristics:

White-collar occupations ....................... 100 506.84 8 - 92 495.01 236.17

Blue-collar occupations ......................... 100 494.23 13 - 87 475.31 208.18

Full time ................................................. 100 501.22 10 - 90 486.25 227.52

Union ..................................................... 100 507.44 31 - 69 475.62 174.60

Nonunion ............................................... 100 495.63 7 - 93 482.80 234.35

Average wage less than $15 per hour ... 100 478.75 8 - 92 465.00 238.41

Average wage $15 per hour or higher ... 100 513.46 12 - 88 498.41 220.04

Establishment

characteristics:

Goods producing ................................... 100 520.17 13 - 87 494.09 190.81

Service producing .................................. 100 487.35 9 - 91 477.43 244.08

1-99 workers .......................................... 100 459.96 13 - 87 434.24 263.24

100 workers or more ............................. 100 525.25 8 - 92 516.36 204.52

Geographic areas:

Metropolitan areas ................................. 100 494.91 10 - 90 481.70 228.28

Nonmetropolitan areas .......................... 100 510.23 9 - 91 484.95 233.31

New England ......................................... 100 518.86 8 - 92 509.71 220.59

Middle Atlantic ....................................... 100 493.67 15 - 85 478.52 228.58

East North Central ................................. 100 522.46 15 - 85 489.18 217.30

West North Central ................................ 100 492.54 12 - 88 487.14 238.68

South Atlantic ........................................ 100 484.27 4 - 96 482.89 246.54

East South Central ................................ 100 - 6 - 94 457.92 234.44

West South Central ............................... 100 471.98 5 - 95 474.42 243.63

Mountain ................................................ 100 461.52 8 - 92 - 234.83

Pacific .................................................... 100 - 11 - 89 492.91 202.79

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

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

or data do not meet publication criteria.
32

Table 24. Medical care benefits: Participation and average employer

premiums per participant by employee monthly contribution for

single coverage plans, all private industry workers, National

Compensation Survey, March 2003

Employee monthly contribution

Percent of

participating

workers

Average

employer

premium per

participant

Total with contributory coverage ................. 100 $201.89

Employee flat monthly contribution ............. 72 201.16

 Less than $5.00 ........................................ 1 171.73

 $5.00-9.99 ................................................ 2 181.89

 $10.00-14.99 ............................................ 2 267.20

 $15.00-19.99 ............................................ 2 197.26

 $20.00-29.99 ............................................ 8 216.14

 $30.00-39.99 ............................................ 10 209.61

 $40.00-49.99 ............................................ 10 208.78

 $50.00-59.99 ............................................ 9 193.88

 $60.00-69.99 ............................................ 8 190.88

 $70.00-79.99 ............................................ 6 215.98

 $80.00-89.99 ............................................ 2 171.59

 $90.00-99.99 ............................................ 3 179.96

 $100.00-124.99 ........................................ 6 198.45

 $125 or more ............................................ 4 167.60

Composite rate1 .......................................... 1 283.44

Varies2 ........................................................ 4 193.41

Flexible benefits3 ........................................ 2 223.00

Percent of earnings .................................... 4 ( ) 196.09

Exists, but unknown .................................... 18 201.21

Other ........................................................... 3 195.23

1 A composite rate is a set

contribution covering more than one

benefit area, for example, health care

and life insurance. 2 Based on worker attributes. For

example, employee contributions may

vary based on earnings, length of

service, or age. 3 Amount varies by options

selected under a "cafeteria plan" or

employer-sponsored reimbursement

account. 4 Less than 0.05 percent.

NOTE: Because of rounding, sums of

individual items may not equal totals.

Where applicable, dash indicates no

employees in this category or data do

not meet publication criteria.
33

Table 25. Medical care benefits: Participation and average employer

premiums per participant by employee monthly contribution for

family coverage plans, all private industry workers, National

Compensation Survey, March 2003

Employee monthly contribution

Percent of

participating

workers

Average

employer

premium per

participant

Total with contributory coverage ................. 100 $482.15

Employee flat monthly contribution ............. 72 482.20

 Less than $20.00 ...................................... 1 469.41

 $20.00-29.99 ............................................ 1 494.30

 $30.00-39.99 ............................................ 1 493.22

 $40.00-49.99 ............................................ 2 482.46

 $50.00-59.99 ............................................ 2 602.94

 $60.00-69.99 ............................................ 2 446.27

 $70.00-79.99 ............................................ 1 583.42

 $80.00-89.99 ............................................ 2 619.88

 $90.00-99.99 ............................................ 2 440.77

 $100.00-124.99 ........................................ 6 564.69

 $125.00-149.99 ........................................ 5 572.78

 $150.00-174.99 ........................................ 7 527.32

 $175.00-199.99 ........................................ 6 633.61

 $200.00-224.99 ........................................ 5 503.27

 $225.00-249.99 ........................................ 4 517.01

 $250.00-274.99 ........................................ 4 433.17

 $275.00-299.99 ........................................ 2 423.84

 $300.00-324.99 ........................................ 4 448.21

 $325.00-349.99 ........................................ 2 360.64

 $350.00-374.99 ........................................ 2 501.93

 $375.00-399.99 ........................................ 2 293.91

 $400.00-424.99 ........................................ 2 370.52

 $425.00-449.99 ........................................ 1 388.47

 $450.00-474.99 ........................................ 1 190.56

 $475.00-499.99 ........................................ 1 227.64

 $500 or more ............................................ 4 279.08

Composite rate1 .......................................... 1 658.98

Varies2 ........................................................ 3 474.87

Flexible benefits3 ........................................ 2 628.56

Percent of earnings .................................... 4 ( ) 498.77

Exists, but unknown .................................... 19 468.81

Other ........................................................... 3 441.57

1 A composite rate is a set

contribution covering more than one

benefit area, for example, health care

and life insurance. 2 Based on worker attributes. For

example, employee contributions may

vary based on earnings, length of

service, or age. 3 Amount varies by options

selected under a "cafeteria plan" or

employer-sponsored reimbursement

account. 4 Less than 0.05 percent.

NOTE: Because of rounding, sums of

individual items may not equal totals.

Where applicable, dash indicates no

employees in this category or data do

not meet publication criteria.
34

Table 26. Medical care benefits: Eligibility requirements, all private industry workers, National Compensation Survey, March 2003

Length of service

requirement

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Percent 

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

With a service

requirement ..................... 69 65 74 74 73 67 74 65 67 69

1 month ......................... 27 29 22 27 24 28 29 25 24 27

2 months ....................... 7 5 11 2 11 5 6 8 13 6

3 months ....................... 29 26 33 33 31 28 32 27 16 30

4 - 5 months .................. 1 ( ) 1 ( ) 1 () 2 1 ( ) 1 ( ) 1 () 1 1 1 ( )

6 months ....................... 3 3 4 5 3 4 4 3 6 3

7 - 11 months ................ 1 1 () 2 1 () 2 1 ( ) 1 () 1 6 1 ( )

12 months ..................... 2 1 2 4 2 2 3 1 2 2

Without a service

requirement ..................... 19 22 15 15 16 20 15 22 20 19

Not determinable ............... 12 13 11 11 11 13 11 13 12 12

Average length of service

requirement ......................... 2.5 2.3 2.7 3.0 2.6 2.5 2.6 2.4 2.9 2.5

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
35

Table 27. Medical care benefits: Coverage for selected services, by type of plan, all private industry workers, National

Compensation Survey, 2002

Type of plan and service All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

 All ...................................... 100 100 100 100 100 100 100 100 100 100

Hospital room and board ....... 100 100 100 100 100 100 100 100 100 100

Inpatient surgery ................... 96 96 97 95 98 95 96 96 99 96

Outpatient surgery1 ............... 97 96 97 97 98 96 97 97 99 96

Office physician visit .............. 99 100 99 99 98 100 99 100 99 99

Extended care2 ..................... 74 75 73 75 74 74 74 75 66 76

Home health care2 ................ 81 83 79 85 77 83 82 81 71 83

Inpatient hospice ................... 70 71 67 72 65 72 69 70 64 71

Home hospice ....................... 24 24 25 25 27 23 25 24 20 25

Inpatient mental ..................... 93 93 93 89 94 92 92 93 94 93

Outpatient mental ................. 92 93 91 91 91 92 90 93 92 92

Inpatient alcohol

detoxification3 ...................... 94 95 94 91 95 94 95 94 94 95

Inpatient alcohol

rehabilitation4 ....................... 83 84 82 82 85 82 83 84 82 83

Outpatient alcohol

rehabilitation4 ....................... 87 88 85 83 88 86 86 87 85 87

Inpatient drug

detoxification3 ...................... 94 95 94 91 95 94 94 95 94 95

Inpatient drug

rehabilitation3 ....................... 83 84 82 83 85 83 82 84 82 83

Outpatient drug

rehabilitation4 ....................... 87 88 85 84 88 86 86 87 85 87

Hearing care5 ........................ 27 27 26 29 29 26 27 27 25 27

Adult physical exams ............ 65 67 62 61 61 67 68 62 53 66

Well baby care ...................... 76 76 74 83 71 78 80 72 71 76

Adult immunization and

inoculation ........................... 52 54 48 53 50 53 57 49 41 54

 Indemnity ......................... 100 100 100 100 100 100 100 100 100 100

Hospital room and board ....... 100 100 100 100 100 100 100 100 100 100

Inpatient surgery ................... 97 97 97 95 97 96 95 98 99 96

Outpatient surgery1 ............... 97 97 97 95 97 96 96 97 99 96

Office physician visit .............. 99 99 98 99 97 100 98 99 98 99

Extended care2 ..................... 76 78 75 72 77 76 75 78 67 78

Home health care2 ................ 80 82 76 79 76 82 81 79 67 82

Inpatient hospice ................... 75 78 72 72 69 78 77 75 65 77

Home hospice ....................... 25 25 26 21 31 22 27 23 21 25

Inpatient mental ..................... 93 94 93 87 93 93 92 94 95 93

Outpatient mental ................. 91 92 89 87 90 91 89 92 91 91

Inpatient alcohol

detoxification3 ...................... 93 94 92 86 94 92 92 93 92 93

Inpatient alcohol

rehabilitation4 ....................... 86 86 86 79 88 85 87 85 85 86

Outpatient alcohol

rehabilitation4 ....................... 87 88 86 81 88 86 88 86 86 87

Inpatient drug

detoxification3 ...................... 93 94 92 86 94 92 92 93 92 93

Inpatient drug

rehabilitation3 ....................... 86 87 87 80 88 85 86 86 85 86

Outpatient drug

rehabilitation4 ....................... 87 88 86 82 88 86 87 86 86 87

Hearing care5 ........................ 14 14 15 10 20 11 10 16 16 13

Adult physical exams ............ 59 63 55 46 54 61 63 56 44 61

Well baby care ...................... 72 72 69 75 69 73 78 67 67 72

Adult immunization and

inoculation ........................... 45 49 42 36 46 45 50 42 33 47

See footnotes at end of table.
36

Table 27. Medical care benefits: Coverage for selected services, by type of plan, all private industry workers, National

Compensation Survey, 2002 — Continued

Type of plan and service All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

 Prepaid ............................. 100 100 100 100 100 100 100 100 100 100

Hospital room and board ....... 100 100 100 100 100 100 100 99 100 100

Inpatient surgery ................... 95 95 97 94 100 94 97 93 99 95

Outpatient surgery1 ............... 96 95 98 100 98 96 98 95 99 96

Office physician visit .............. 100 100 100 100 100 100 100 100 100 100

Extended care2 ..................... 70 69 70 78 70 70 72 68 63 71

Home health care2 ................ 85 83 85 95 80 87 83 86 84 85

Inpatient hospice ................... 59 58 57 71 55 61 57 61 60 59

Home hospice ....................... 23 21 23 32 18 25 21 25 16 24

Inpatient mental ..................... 92 92 92 92 94 91 92 92 93 92

Outpatient mental ................. 95 94 94 99 93 95 92 97 93 95

Inpatient alcohol

detoxification3 ...................... 98 98 98 100 99 98 99 98 99 98

Inpatient alcohol

rehabilitation4 ....................... 78 79 73 87 80 77 77 79 76 78

Outpatient alcohol

rehabilitation4 ....................... 87 87 84 88 88 86 83 89 82 87

Inpatient drug

detoxification3 ...................... 98 98 98 100 99 98 99 98 99 98

Inpatient drug

rehabilitation3 ....................... 78 79 71 87 78 77 75 80 76 78

Outpatient drug

rehabilitation4 ....................... 86 87 84 88 87 86 83 89 83 87

Hearing care5 ........................ 54 52 54 61 48 56 57 52 51 54

Adult physical exams ............ 78 75 80 85 76 79 79 77 79 78

Well baby care ...................... 84 82 86 94 75 88 85 84 85 84

Adult immunization and

inoculation ........................... 66 64 65 80 58 69 69 64 61 67

1 Charges incurred in the outpatient department of a hospital and

outside the hospital. 2 Some plans provide this care only to a patient who was previously

hospitalized and is recovering without need of the extensive care provided

by a general hospital. 3 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse.

4 Rehabilitation is designed to alter abusive behavior in patients once

they are free of acute physical and mental complications. 5 Plans provide, as a minimum, coverage for hearing examination

expenses.

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

 Where applicable, dash indicates no employees in this category, or data

do not meet publication criteria.
37

Table 28. Indemnity plans: Coverage for selected sevices, all private industry workers, National Compensation Survey, 2002

Category of care and extent of

coverage

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Hospital room and board

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

Covered in full ........................... 6 6 6 6 8 5 6 6 13 5

Subject to internal limits only1 ... 9 12 5 9 5 11 10 9 10 9

Subject to internal and overall

limits ........................................ 15 13 18 13 13 15 12 16 19 14

Subject to overall limits only2 .... 70 69 71 72 74 68 72 69 58 72

Types of internal limits

Dollar deductible ....................... 16 17 13 18 10 18 14 17 15 16

Dollar limits ................................ 3 ( ) 3 ( ) 3 () 2 3 ( ) 3 ( ) 3 () 1 1 3 ( )

Separate coinsurance ............... 6 7 7 2 7 6 5 7 10 6

Other limit .................................. 2 1 1 5 3 () 2 3 1 2 1

Limits not determinable ............. 1 1 1 – – 1 2 – – 1

Inpatient surgery

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

Covered in full ........................... 11 12 10 10 12 11 9 13 23 10

Subject to internal limits only1 ... 5 7 3 3 3 6 7 4 2 6

Subject to internal and overall

limits ........................................ 4 4 6 3 6 4 2 6 11 3

Subject to overall limits only2 .... 79 77 81 84 79 79 82 77 64 81

Types of internal limits

Dollar limits ................................ 1 1 3 3 () 3 1 3 () 2 2 1

Separate coinsurance ............... 4 5 3 3 4 4 5 4 4 4

Other limit .................................. 4 5 3 2 2 5 4 4 6 4

Limits not determinable ............. 3 ( ) 3 () – – – 3 ( ) 3 () – – 3 ( )

Outpatient surgery4

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

Covered in full ........................... 9 10 8 7 11 8 7 11 17 8

Subject to internal limits only1 ... 9 11 7 10 5 11 14 7 9 9

Subject to internal and overall

limits ........................................ 12 11 15 5 13 11 9 13 15 11

Subject to overall limits only2 .... 70 68 71 78 71 70 71 69 59 72

Types of internal limits

Dollar limits ................................ 1 1 2 3 () 3 3 ( ) 3 () 2 2 1

Separate coinsurance ............... 6 6 5 4 3 7 7 5 7 6

Deductible per surgery .............. 12 13 13 8 11 13 14 11 10 13

Other limit .................................. 2 2 2 4 2 3 2 3 6 2

Limits not determinable ............. – – – – – – – – – –

Office physician visits

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

Covered in full ........................... 1 1 1 3 () 1 1 1 1 1 1

Subject to internal limits only1 ... 31 35 22 34 19 36 34 29 28 31

Subject to internal limits plus

overall limits ............................. 40 38 44 36 47 37 44 37 24 42

Subject to overall limits only2 .... 29 26 34 30 33 27 22 34 46 27

1 Internal limits apply to individual categories of care; e.g., internal limits or

benefits for hospitalization. Limits may be set in terms of dollar or day ceilings on

benefits, a requirement that the participant pay a percentage of costs

(coinsurance), or a requirement that the participant pay a specific amount

(deductible or copayment) before reimbursement begins or services are

rendered. 2 Overall limits apply to all benefits under the plan, not selected individual

benefits. Overall limits are deductibles and coinsurance percentages that must

be paid by the participant before any plan benefits begin, and overall limits on

plan benefits that can be paid. 3 Less than 0.5 percent. 4 Charges incurred in the outpatient department of a hospital and outside the

hospital.

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

Where applicable, dash indicates no employees in this category, or data do not

meet publication criteria.
38

Table 29. Indemnity plans: Summary of selected features in and outside of network, all private industry workers, National

Compensation Survey, 2002

Types of in-network

incentives

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Bluecollar Service Goods

producing

Service

producing

1-99

workers

100

workers

or more

Service subject to in-network

incentive

Hospital room and board ... 92 94 89 87 89 93 91 92 81 93

Surgery .............................. 88 89 87 83 88 88 86 89 80 89

Office visit .......................... 92 95 90 89 91 93 92 92 81 94

Outpatient prescription

drugs ................................ 35 37 34 21 29 37 29 39 34 35

Not determinable ............... 4 3 6 5 5 4 3 5 14 3

Type of in-network incentive

Coinsurance rate differs1 .. 85 88 81 82 81 86 88 82 67 87

Lower annual deductible2 .. 40 45 37 24 35 43 43 39 34 41

1 The coinsurance rate is higher if services are received from an approved

provider. For example, in-network physician office visit had a 90 percent

coinsurance payment while out-network had a 80 percent payment. 2 The deductible is lower if services are received from an approved

provider. For example, the individual in-network annual deductible

requirement is $100 while the out-network requirement is $500.

NOTE: Sum of individual items is greater than the total because some

participants were in plans with more than one type of limit. Where applicable,

dash indicates no employees in this category, or data do not meet publication

criteria.
39

Table 30. Indemnity plans: Average for overall limits, all private industry workers, National

Compensation Survey, 2002

Characteristic

Annual deductible1 Annual out-of-pocket

expense maximum2 Lifetime

maximum3

Individual Family Individual Family

All employees ........................................ $344 $848 $1,688 $3,571 $1,822,587

Worker characteristics:

White-collar occupations ....................... 344 874 1,656 3,600 1,987,806

Blue-collar occupations ......................... 334 765 1,701 3,504 1,609,139

Service occupations .............................. 380 969 1,840 3,654 1,672,351

Full time ................................................. 344 844 1,691 3,549 1,830,714

Part time ................................................ 341 926 1,612 4,032 1,677,132

Union ..................................................... 230 549 1,438 2,981 1,327,112

Nonunion ............................................... 358 886 1,717 3,630 1,888,993

Average wage less than $15 per hour ... 361 904 1,689 3,437 1,796,308

Average wage $15 per hour or higher ... 325 789 1,686 3,710 1,849,721

Establishment characteristics:

Goods producing ................................... 336 772 1,558 3,334 1,658,377

Service producing .................................. 347 880 1,748 3,685 1,899,839

1-99 workers .......................................... 416 1035 1,735 3,800 2,170,932

100 workers or more ............................. 295 728 1,655 3,423 1,602,937

Geographic areas:

Metropolitan areas ................................. 342 855 1,692 3,600 1,835,424

Nonmetropolitan areas .......................... 352 817 1,667 3,437 1,758,422

New England ......................................... 341 837 1,678 3,336 1,938,932

Middle Atlantic ....................................... 318 776 1,396 2,978 1,856,044

East North Central ................................. 306 723 1,530 2,900 1,949,642

West North Central ................................ 275 659 1,411 3,155 1,831,098

South Atlantic ........................................ 394 975 1,852 3,935 1,790,260

East South Central ................................ 307 787 1,669 3,389 1,587,239

West South Central ............................... 375 927 1,895 4,134 1,795,356

Mountain ................................................ 440 1080 2,015 4,435 1,863,254

Pacific .................................................... 337 881 1,752 4,124 1,787,413

1 The deductible is the amount of covered expenses

that an individual or family must pay before any charges

are paid by the medical care plan. Deductibles that

apply separately to a specific category of expense, such

as a deductible for each hospital admission, were

excluded from this tabulation. 2 The out-of-pocket expense maximum is the

amount an individual or family must pay before the plan

will pay 100 percent of additional charges. Deductible

amounts were excluded from computation of the

out-of-pocket dollar limits. Usually, out-of-pocket limits

were specified on an annual basis. Charges for certain

services, such as mental health care, may not be

counted toward the out-of-pocket maximum. 3 The maximum is the total amount of expenses

that the plan will pay. Maximum described is for each

insured person. Where the maximum differed for

employees and dependents, the employee maximum

was tabulated.

NOTE: Where applicable, dash indicates no employees

in this category, or data do not meet publication criteria. 
40

Table 31. Indemnity plans: Amount of individual deductible,1 all private industry workers, National Compensation Survey,

2002

Fee arrangement All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar 

Blue

collar Service 

Goods

producing

Service

producing

1-99

workers

100

workers

or more

Indemnity

Percent

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

Deductible specified ............ 69 66 71 78 65 71 70 69 60 70

Flat dollar amount .............. 68 66 70 78 64 70 68 68 58 69

Less than $200 ................. 13 11 16 11 15 12 11 14 22 11

$200 ................................. 13 12 12 18 10 14 8 16 16 12

$201-249 .......................... 2 ( ) 2 ( ) 2 () - 2 ( ) 2 () - 2 ( ) 2 ( ) 2 ( )

$250 ................................. 13 13 13 11 10 14 11 14 7 14

$251-299 .......................... 2 ( ) 2 ( ) 2 ( ) 2 () - 2 () - 2 ( ) 2 ( ) 2 ( )

$300 ................................. 10 11 7 10 9 10 10 10 7 10

Over $300 ........................ 20 18 21 29 21 20 30 14 6 22

Other .................................. 1 1 2 2 () 1 1 1 1 2 1

No deductible ....................... 30 33 28 22 35 28 29 31 40 29

Not determinable ................. 1 1 1 2 ( ) 2 () 1 1 2 ( ) 2 () 1

Average annual deductible

individual ............................ $344 $344 $334 $380 $336 $347 $416 $295 $230 $358

Average annual deductible

family .................................. 848 874 765 969 772 880 1,035 728 549 886

Traditional Indemnity

Percent

Total ...................................... 100 100 100 - 100 100 100 100 - 100

Deductible specified ............ 93 90 98 - 94 93 99 90 - 93

Flat dollar amount .............. 93 90 98 - 94 93 99 90 - 93

Less than $200 ................. 32 23 49 - 38 29 26 35 - 24

$200 ................................. 4 3 1 - 2 5 1 6 - 3

$201-249 .......................... 2 () 1 2 () - 1 - - 1 - 1

$250 ................................. 13 19 3 - 1 19 7 16 - 16

$251-299 .......................... - - - - - - - - - -

$300 ................................. 14 14 17 - 22 10 12 15 - 15

Over $300 ........................ 30 30 27 - 30 29 54 15 - 34

Other .................................. - - - - - - - - - -

No deductible ....................... 5 6 2 - 6 4 - 7 - 5

Not determinable ................. 2 4 2 () - - 3 1 3 - 2

Average annual deductible

individual ............................ $358 $393 $300 - $344 $365 $494 $270 - $399

Average annual deductible

family .................................. 801 898 645 - 715 854 1,188 599 - 888

See footnotes at end of table.
41

Table 31. Indemnity plans: Amount of individual deductible,1 all private industry workers, National Compensation Survey,

2002 — Continued

Fee arrangement All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar 

Blue

collar Service 

Goods

producing

Service

producing

1-99

workers

100

workers

or more

Indemnity in and outside

network without primary

care physician

Percent

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

Deductible specified ............ 73 72 73 80 66 76 72 73 65 74

Flat dollar amount .............. 71 71 71 80 65 74 71 72 62 73

Less than $200 ................. 11 10 13 10 13 10 10 12 19 10

$200 ................................. 14 14 14 19 12 15 9 18 23 13

$201-249 .......................... 2 ( ) 2 ( ) 2 () - - 2 () - 2 ( ) 2 ( ) 2 ( )

$250 ................................. 14 14 15 11 10 15 11 16 8 15

$251-299 .......................... 2 ( ) 2 ( ) 2 () - - 2 () - 2 ( ) 2 ( ) 2 ( )

$300 ................................. 10 12 6 12 8 11 11 10 6 11

Over $300 ........................ 22 20 22 28 21 22 29 16 7 24

Other .................................. 1 1 2 2 () 1 2 1 1 2 1

No deductible ....................... 26 28 26 20 33 23 26 26 35 25

Not determinable ................. 1 1 1 - 2 () 1 1 2 ( ) 2 () 1

Average annual deductible

individual ............................ $350 $346 $349 $379 $338 $355 $407 $308 $243 $362

Average annual deductible

family .................................. 880 898 807 998 785 915 1,011 783 566 916

Indemnity in and outside

network with primary care

physician

Percent

Total ...................................... 100 100 100 - 100 100 100 100 - 100

Deductible specified ............ 39 34 42 - 43 37 33 41 - 42

Flat dollar amount .............. 38 34 42 - 43 37 33 41 - 42

Less than $200 ................. 7 6 7 - 6 7 - 10 - 8

$200 ................................. 9 9 9 - 7 10 4 11 - 10

$201-249 .......................... - - - - - - - - - -

$250 ................................. 9 6 15 - 12 7 15 6 - 9

$251-299 .......................... 2 ( ) 2 ( ) 2 () - - 1 - 1 - 2 ( )

$300 ................................. 6 6 6 - 6 6 - 9 - 6

Over $300 ........................ 7 7 4 - 11 6 14 4 - 9

Other .................................. 2 ( ) 2 () - - 2 ( ) 2 () - 2 () - 2 ( )

No deductible ....................... 61 66 58 - 57 63 67 59 - 58

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

Average annual deductible

individual ............................ $273 $273 $251 - $291 $264 $357 $243 - $273

Average annual deductible

family .................................. 651 669 582 - 699 626 1,004 560 - 649

1 The deductible is the amount of covered expenses that an

individual or family must pay before any charges are paid by the

medical care plan. Deductibles that apply separately to a specific

category of expense, such as a deductible for each hospital admission,

were excluded from this tabulation.

2 Less than 0.5 percent.

NOTE: Where applicable, dash indicates no employees in this

category, or data do not meet publication criteria. 
42

Table 32. Indemnity plans: Individual deductible1 difference between in-network and outside of network coverage, all

private industry workers, National Compensation Survey, 2002

 Deductible comparison in

and outside of network

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar 

Blue

collar Service 

Goods

producing

Service

producing

1-99

workers

100

workers

or more

Indemnity in and outside

network without primary

care physician

Percent

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

Difference in deductible

amounts between in and

outside of network ............... 37 41 34 23 33 39 40 34 22 39

 Less than $200 ................... 4 4 5 3 3 5 6 3 4 4

 $200-399 ............................ 22 24 20 12 21 22 24 19 14 22

 $400 or more ...................... 11 13 8 8 9 12 9 12 3 12

 Amount not determinable ... 2 ( ) 2 ( ) 2 () - 2 ( ) 2 ( ) 2 ( ) 2 () - 2 ( )

Overall deductible does not

differ in and outside of

network ................................ 63 59 65 77 67 61 59 65 78 61

Not determinable ................... 1 1 1 - 2 () 1 1 2 ( ) 2 () 1

Average difference between

in and outside network ......... $384 $376 $393 $407 $366 $390 $409 $361 $327 $388

Indemnity in and outside

network with primary care

physician

Percent

Total ...................................... 100 100 100 - 100 100 100 100 - 100

Difference in deductible

amounts between in and

outside of network ............... 60 66 54 - 46 66 64 58 - 57

 Less than $200 ................... 3 1 6 - 6 2 2 () 4 - 3

 $200 - 399 .......................... 32 36 32 - 27 34 34 31 - 28

 $400 or more ...................... 20 24 15 - 11 24 21 20 - 21

 Amount not determinable ... 4 6 1 - 2 6 8 3 - 5

Overall deductible does not

differ between in and outside

of network ............................ 40 34 46 - 54 34 36 42 - 43

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

Average difference between

in and outside network ......... $364 $373 $326 - $313 $380 $383 $355 - $372

1 The deductible is the amount of covered expenses that an

individual or family must pay before any charges are paid by the

medical care plan. Deductibles that apply separately to a specific

category of expense, such as a deductible for each hospital admission,

were excluded from this tabulation.

2 Less than 0.5 percent.

NOTE: Where applicable, dash indicates no employees in this

category, or data do not meet publication criteria. 
43

Table 33. Indemnity plans: Relationship of individual and family deductible, all private industry workers, National

Compensation Suvey, 2002

Relationship of individual

and family deductibles

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar 

Blue

collar Service 

Goods

producing

Service

producing

1-99

workers

100

workers

or more

Indemnity

Percent

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

Individual and family

deductible specified ............. 64 63 64 71 62 65 64 64 53 66

Family deductible is multiple

of individual deductible ....... 59 59 55 69 55 60 57 60 51 60

Average multiple ............. 2.50 2.56 2.38 2.55 2.31 2.57 2.52 2.48 2.32 2.52

Specified number of

individual deductibles must

be met to satisfy family

deductible ........................... 5 4 9 2 7 5 7 4 1 6

Average number of

individuals ..................... 2.70 2.86 2.58 2.91 2.38 2.91 2.65 2.75 2.54 2.70

No deductible or no family

deductible ............................ 35 36 35 29 37 34 34 36 47 34

Not determinable ................... 1 1 1 1 ( ) 1 () 1 1 1 ( ) 1 () 1

1 Less than 0.5 percent. NOTE: Where applicable, dash indicates no employees in this

category, or data do not meet publication criteria. 
44

Table 34. Indemnity plans: Coinsurance rates, all private industry workers, National Compensation Survey, 2002

Coinsurance amount All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Indemnity

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

With coinsurance1 ................. 80 76 85 87 82 79 82 78 76 81

Coinsurance rate2

80 percent ......................... 42 37 46 55 44 41 43 40 43 41

85 percent ......................... 2 1 3 2 3 1 1 3 5 2

90 percent ......................... 32 35 29 25 30 33 33 31 24 33

Other percent .................... 4 2 6 4 4 3 4 3 4 4

Amounts not

determinable .................... 1 3 () 1 1 1 1 1 3 () - 1

Other ................................. 3 () 1 3 ( ) 3 () 1 3 () - 1 - 1

Without coinsurance4 ............ 20 24 15 13 18 21 18 22 24 19

Traditional indemnity

Total ...................................... 100 100 100 - 100 100 100 100 - 100

With coinsurance1 ................. 99 99 99 - 99 99 100 99 - 99

Coinsurance rate2

80 percent ......................... 76 74 81 - 82 73 77 76 - 73

85 percent ......................... 3 () - 1 - - 3 () - 1 - -

90 percent ......................... 9 11 3 - 9 9 3 ( ) 14 - 10

Other percent .................... 14 14 15 - 8 17 23 9 - 16

Other ..................................... 3 ( ) 3 () - - - 3 () - 3 () - 3 ( )

Without coinsurance4 ............ 1 1 1 - 1 1 - 1 - 1

Indemnity in and outside

network without

primary care physician

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

With coinsurance1 ................. 85 82 87 89 84 85 86 83 78 85

Coinsurance rate2

80 percent ......................... 42 38 45 60 43 42 44 41 38 42

85 percent ......................... 2 1 3 1 3 1 1 3 5 1

90 percent ......................... 38 42 34 25 34 39 39 37 32 39

Other percent .................... 2 1 5 3 4 2 2 3 3 2

Amounts not

determinable .................... 1 3 () 1 - 3 () 1 1 3 () - 1

Without coinsurance4 ............ 15 18 13 11 16 15 14 17 22 15

Indemnity in and outside

network with

primary care physician

Total ...................................... 100 100 100 - 100 100 100 100 - 100

With coinsurance1 ................. 48 38 63 - 67 40 46 49 - 47

Coinsurance rate2

80 percent ......................... 19 14 28 - 24 17 15 21 - 18

85 percent ......................... 4 2 7 - 5 3 - 6 - 4

See footnotes at end of table.
45

Table 34. Indemnity plans: Coinsurance rates, all private industry workers, National Compensation Survey, 2002 — Continued

Coinsurance amount All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Indemnity in and outside

network with

primary care physician

Total

With coinsurance1

Coinsurance rate2

90 percent ......................... 18 16 20 - 24 15 23 16 - 19

Other percent .................... 2 2 3 - - 3 4 1 - 1

Amounts not

determinable .................... 2 3 () 4 - 5 3 () 4 3 () - 2

Other ................................. 3 4 1 - 9 - - 4 - 3

Without coinsurance4 ............ 52 62 37 - 33 60 54 51 - 53

1 Represents the initial coinsurance in plans that have 100 percent

coverage after the individual pays a specified dollar amount toward expenses. 

For example, the plan pays 80 percent until the individual’s out-of-pocket

expenses reach $1,000, and then coverage is at 100 percent. 2 A few plans have more than one coinsurance rate. In those cases, the

coinsurance rate shown is that which applies to the majority of benefits under

the plan. Includes variable coinsurance rates not shown separately.

3 Less than 0.5 percent. 4 Includes plans with overall benefit limitations, such as maximum dollar

amounts and deductibles, where the coinsurance rate is 100 percent.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
46

Table 35. Indemnity plans: Coinsurance rate difference between in-network and outside of network coverage, all private industry workers,

National Compensation Survey, 2002

Coinsurance rate comparison All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Indemnity in and outside network

without

primary care physician

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

Difference in coinsurance amounts

 between in and outside of network .... 86 89 81 83 83 87 89 83 61 89

10 percent ......................................... 14 14 14 17 17 13 19 11 14 14

11 - 19 percent .................................. 3 2 4 1 5 2 1 4 5 2

20 percent ......................................... 49 52 46 45 46 51 53 47 29 52

More than 20 percent ........................ 19 20 16 20 14 21 16 21 14 19

Amounts not determinable ................ 1 1 () 1 - 1 () 1 1 1 () - 1

Overall coinsurance rates does not

 differ between in and outside of

 network .............................................. 14 11 19 17 17 13 11 17 39 11

Average difference between in

network ................................................ 21.0 21.4 20.3 20.6 20.0 21.4 19.9 21.9 19.8 21.1

Indemnity in and outside network

with

primary care physician2

Total ...................................................... 100 100 100 – 100 100 100 100 – 100

Difference in coinsurance amounts

 between in and outside of network3 ... 86 87 87 – 81 89 91 84 – 86

10 percent ......................................... 6 1 18 – 17 2 7 6 – 6

11 - 19 percent .................................. 1 () - 1 () – - 1 () - 1 () – 1 ( )

20 percent ......................................... 40 40 43 – 46 37 52 35 – 37

More than 20 percent ........................ 35 42 21 – 11 46 20 42 – 38

Amounts not determinable ................ 5 4 5 – 6 4 13 1 – 6

Overall coinsurance rates does not

 differ between in and outside of

 network .............................................. 14 13 13 – 19 11 9 16 – 14

Average difference between in and

outside of network ................................ 25.1 26.9 20.2 – 19.3 27.2 21.7 26.5 – 25.9

1 Less than 0.5 percent. 2 A provision in medical care plans that designates certain physicians and

hospitals as network providers. Services sought from health care providers who do

not belong to the network are reimbursed at a lower rate than applicable to network

providers. 3 The coinsurance rate is higher if services are received from an approved

provider. For example, in-network physician office visit had a 90 percent

coinsurance payment while out-network had a 80 percent payment.

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

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
47

Table 36. Indemnity plans: Maximum out-of-pocket expense provisions, all private industry workers, National Compensation Survey, 2002

Type and amount of

out-of-pocket expense

provision

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

Percent

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

With limit on out-of-pocket

expense ............................... 81 80 82 81 84 79 81 80 68 83

With an annual dollar

maximum on out-of-pocket

expense1 .......................... 79 78 80 78 81 78 79 78 64 81

Per individual:

Less than $500 ............ 3 4 3 2 () 3 3 5 2 1 4

$500 ............................ 7 6 9 4 9 6 8 6 10 6

$501 - $999 ................. 7 7 8 6 11 6 6 8 9 7

$1,000 ......................... 16 15 17 20 16 16 12 19 11 17

$1,001 - $1,499 ........... 7 7 6 6 6 7 5 8 9 7

$1500 .......................... 5 6 4 4 5 6 5 6 5 5

$1,501 - $1,999 ........... 5 4 6 5 6 5 7 3 2 5

$2,000 ......................... 11 13 8 15 9 12 13 10 7 12

$2,001 or greater ......... 17 16 18 19 17 17 18 16 10 18

Per family:

Less than $1,000 ......... 3 4 2 2 () 2 3 4 2 2 3

$1,000 ......................... 6 5 7 5 6 5 7 5 7 5

$1,001 - $1,999 ........... 6 6 6 5 9 5 4 7 9 6

$2,000 ......................... 9 9 9 8 11 8 6 11 4 10

$2,001 - $2,999 ........... 5 5 5 2 6 4 4 6 4 5

$3,000 ......................... 7 7 7 6 6 8 8 6 4 8

$3,001 or greater ......... 29 30 27 28 27 30 30 28 16 31

No family maximum ..... 11 10 11 22 10 12 12 11 18 10

Family maximum

cannot be

computed3 .................. 3 2 5 1 3 3 5 2 1 3

Annual maximum on

out-of-pocket expense

based on earnings ........ 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 () - 2 ( )

Annual maximum on

out-of-pocket expense

varies by coinsurance

rate4 .............................. 2 ( ) 2 ( ) 2 () 2 2 () 1 1 2 () - 2 ( )

Other ............................... 1 1 2 1 2 1 1 2 4 1

No out-of-pocket expense

required5 .............................. 15 17 12 9 12 16 13 15 22 13

No limit on out-of-pocket

expenses ............................. 1 1 2 1 1 2 2 1 3 1

Not determinable ................... 4 2 4 10 3 4 5 3 8 3

See footnotes at end of table.
48

Table 36. Indemnity plans: Maximum out-of-pocket expense provisions, all private industry workers, National Compensation Survey, 2002 —

Continued

Type and amount of

out-of-pocket expense

provision

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

Average annual dollar

maximum on individual

out-of-pocket expenses ....... $1,688 $1,656 $1,701 $1,840 $1,558 $1,748 $1,735 $1,655 $1,438 $1,717

Average annual dollar

maximum on family

out-of-pocket expenses ....... 3,571 3,600 3,504 3,654 3,334 3,685 3,800 3,423 2,981 3,630

1 Deductible amounts were excluded from computation of the out-of-pocket

dollar limits. With rare exceptions, an out-of-pocket limit was specified on an annual

basis. Few workers were in plans where the expense limit applied to a disability or

a period other than a year. Charges for certain services, such as mental health

care, may not be counted toward the out-of-pocket maximum. 2 Less than 0.5 percent. 3 These are plans where a family maximum is stated in such a way that it

cannot be computed. For example, the individual out-of-pocket expense is limited

to $1,000 per year, and the family out-of-pocket expense is limited to three

individuals. The family out-of-pocket expense cannot be computed because each of

the three individuals must separately reach an out-of-pocket limit of $1,000. Thus, if

two individuals each reach $1,000 in their out-of-pocket expenses, and two other

family members reach $900 and $800 respectively in out-of-pocket expenses, the

family out-of-pocket limit would not have been met. A family dollar maximum cannot

be computed in this example. 4 Some plans reimburse medical expenses at more than one coinsurance rate. 

They impose a limit on out-of-pocket expenses by specifying a maximum on

covered medical expenses beyond which all expenses are paid at 100 percent. 5 All covered expenses are paid at 100 percent.

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

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
49

Table 37. Indemnity plans: Maximum out-of-pocket expense provisions for traditional plans, all private industry workers,

National Compensation Survey, 2002

Type and amount of out-of-pocket

expense provision

All

workers

Occupational group Industry Establishment size

NonWhite union

collar

Blue

collar

Goods

producing

Service

producing

1-99

workers

100

workers or

more

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

With limit on out-of-pocket

expense ......................................... 92 92 92 98 89 95 90 93

With an annual dollar maximum

on out-of-pocket expense1 ......... 86 89 81 84 87 94 81 91

Per individual:

Less than $500 ...................... 2 4 2 () 1 3 1 3 3

$500 ...................................... 6 7 5 - 9 13 2 5

$501 - $999 ........................... 8 4 14 21 2 2 ( ) 13 7

$1,000 ................................... 13 14 10 10 15 19 10 15

$1,001 - $1,499 ..................... 7 8 8 2 10 8 7 9

$1,500 ................................... 3 4 1 - 4 5 2 4

$1,501 - $1,999 ..................... 4 3 6 - 5 10 2 () 4

$2,000 ................................... 22 27 10 15 25 11 28 24

$2,001 or greater ................... 20 18 27 35 13 27 16 21

Per family:

Less than $1,000 ................... 2 4 2 () 1 3 1 3 3

$1,000 ................................... 4 4 3 - 6 7 2 5

$1,001 - $1,999 ..................... 8 5 13 20 2 2 11 6

$2,000 ................................... 7 7 5 11 6 12 5 9

$2,001 - $2,999 ..................... 6 9 4 7 5 6 6 7

$3,000 ................................... 7 7 7 - 10 15 2 7

$3,001 or greater ................... 31 34 32 37 28 21 36 36

No family maximum ............... 21 20 17 8 28 29 17 18

Family maximum cannot be

computed3 ........................... - - - - - - - -

Annual maximum on

out-of-pocket expense based

on earnings ............................. 2 () - 2 ( ) 2 () - - 2 ( ) 2 ( )

Annual maximum on

out-of-pocket expense varies

by coinsurance rate4 ............... 2 () 1 - - 1 1 - 2 ( )

Other ........................................ 6 2 11 14 2 - 9 2

No out-of-pocket expense

required5 ........................................ 1 1 1 1 1 - 1 1

No limit on

out-of-pocket-expenses ................. 2 1 5 1 3 - 4 1

Not determinable ............................ 5 6 2 - 7 5 5 6

Average annual dollar maximum on

individual out-of-pocket

expenses ....................................... $1,762 $1,691 $1,944 $2,109 $1,602 $1,903 $1,667 $1,793

Average annual dollar maximum on

family out-of-pocket expenses ...... $3,542 $3,377 $3,915 $3,901 $3,322 $3,705 $3,446 $3,614

1 Deductible amounts were excluded from computation of the

out-of-pocket dollar limits. With rare exceptions, an out-of-pocket limit

was specified on an annual basis. Few workers were in plans where the

expense limit applied to a disability or a period other than a year. 

Charges for certain services, such as mental health care, may not be

counted toward the out-of-pocket maximum. 2 Less than 0.5 percent. 3 These are plans where a family maximum is stated in such a way

that it cannot be computed. For example, the individual out-of-pocket

expense is limited to $1,000 per year, and the family out-of-pocket 

expense is limited to three individuals. The family out-of-pocket expense

cannot be computed because each of the three individuals must

separately reach an out-of-pocket limit of $1,000. Thus, if two individuals

each reach $1,000 in their out-of-pocket expenses, and two other family

members reach $900 and $800 respectively in out-of-pocket expenses,

the family out-of-pocket limit would not have been met. A family dollar

maximum cannot be computed in this example. 4 Some plans reimburse medical expenses at more than one

coinsurance rate. They impose a limit on out-of-pocket expenses by

specifying a maximum on covered medical expenses beyond which all

expenses are paid at 100 percent. 5 All covered expenses are paid at 100 percent.

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

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

or data do not meet publication criteria.
50

Table 38. Indemnity plans in and outside of network: Maximum out-of-pocket expense provisions, all private industry workers,

National Compensation Survey, 2002

Type and amount of

out-of-pocket expense

provision

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Bluecollar Service Goods

producing

Service

producing

1-99

workers

100

workers

or more

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

With limit on out-of-pocket

expense ............................... 80 79 81 80 83 79 80 80 65 82

With an annual dollar

maximum on out-of-pocket

expense1 .......................... 78 78 80 77 82 77 78 79 65 80

Per individual:

Less than $500 ............ 4 4 4 1 4 3 6 2 2 4

$500 ............................ 6 5 9 4 10 5 8 6 10 6

$501 - $999 ................. 7 7 8 5 10 6 6 8 8 7

$1,000 ......................... 17 16 18 19 17 16 12 20 12 17

$1,001 - $1,499 ........... 7 7 6 6 6 7 5 8 10 6

$1500 .......................... 6 6 5 3 5 6 5 6 5 6

$1,501 - $1,999 ........... 5 5 6 6 6 5 7 4 2 6

$2,000 ......................... 10 12 8 12 9 11 13 9 7 11

$2,001 or greater ......... 17 16 17 21 14 18 17 16 10 18

Per family:

Less than $1,000 ......... 3 4 2 1 2 3 5 2 2 3

$1,000 ......................... 6 4 8 5 7 5 7 5 8 5

$1,001 - $1,999 ........... 6 6 5 5 8 5 4 7 8 6

$2,000 ......................... 9 10 10 6 11 9 5 12 5 10

$2,001 - $2,999 ........... 5 4 6 2 6 4 3 6 5 5

$3,000 ......................... 7 7 7 6 6 8 7 7 4 8

$3,001 or greater ......... 29 30 26 31 26 30 31 28 17 31

No family maximum ..... 10 9 10 20 11 10 10 11 15 10

Family maximum

cannot be

computed2 .................. 4 3 6 1 4 4 5 3 1 4

Annual maximum on

out-of-pocket expense

based on earnings ........ 3 ( ) 3 ( ) 3 ( ) 3 ( ) 3 ( ) 3 ( ) 3 ( ) 3 () - 3 ( )

Annual maximum on

out-of-pocket expense

varies by coinsurance

rate4 .............................. 3 ( ) 3 ( ) 3 () 2 3 () 1 1 3 () - 3 ( )

Other ............................... 1 1 1 1 1 1 1 1 3 () 1

No out-of-pocket expense

required5 .............................. 16 18 13 10 12 17 14 17 25 14

No limit on out-of-pocket

expenses ............................. 1 1 1 1 1 1 2 1 1 1

Not determinable ................... 4 2 5 10 4 4 5 3 9 3

See footnotes at end of table.
51

Table 38. Indemnity plans in and outside of network: Maximum out-of-pocket expense provisions, all private industry workers,

National Compensation Survey, 2002 — Continued

Type and amount of

out-of-pocket expense

provision

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Bluecollar Service Goods

producing

Service

producing

1-99

workers

100

workers

or more

Average annual dollar

maximum on individual

out-of-pocket expenses ....... $1,676 $1,658 $1,654 $1,895 $1,471 $1,771 $1,694 $1,664 $1,406 $1,707

Average annual dollar

maximum on family

out-of-pocket expenses ....... $3,568 $3,640 $3,406 $3,750 $3,198 $3,740 $3,764 $3,438 $2,952 $3,630

1 Deductible amounts were excluded from computation of the

out-of-pocket dollar limits. With rare exceptions, an out-of-pocket limit was

specified on an annual basis. Few workers were in plans where the expense

limit applied to a disability or a period other than a year. Charges for certain

services, such as mental health care, may not be counted toward the

out-of-pocket maximum. 2 These are plans where a family maximum is stated in such a way that it

cannot be computed. For example, the individual out-of-pocket expense is

limited to $1,000 per year, and the family out-of-pocket expense is limited to

three individuals. The family out-of-pocket expense cannot be computed

because each of the three individuals must separately reach an out-of-pocket

limit of $1,000. Thus, if two individuals each reach $1,000 in their

out-of-pocket expenses, and two other family members reach $900 and $800

respectively in out-of-pocket expenses, the family out-of-pocket limit would not

have been met. A family dollar maximum cannot be computed in this

example. 3 Less than 0.5 percent. 4 Some plans reimburse medical expenses at more than one coinsurance

rate. They impose a limit on out-of-pocket expenses by specifying a

maximum on covered medical expenses beyond which all expenses are paid

at 100 percent. 5 All covered expenses are paid at 100 percent.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
52

Table 39. Indemnity plans: Maximum benefit provisions, all private industry workers, National Compensation Survey, 2002

Type and dollar amount of

maximum

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

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

With maximum limits ............. 70 67 72 78 73 68 66 72 65 70

Lifetime maximum only1 ..... 69 66 70 78 72 67 66 70 63 69

Less than $1,000,000 ..... 2 1 2 2 1 2 2 1 4 1

$1,000,000 ...................... 32 28 37 41 34 31 21 39 40 31

$1,000,001-1,999,999 .... 2 2 2 2 () 3 1 2 () 3 3 2

$2,000,000 ...................... 23 23 24 23 27 22 27 21 14 25

More than $2,000,000 .... 10 12 6 12 6 11 15 6 4 11

Other maximum ................. 1 2 () 2 2 () 1 1 2 () 1 2 1

Unlimited maximum ............... 22 27 15 15 15 25 24 21 25 21

Not determinable ................... 9 6 12 7 13 7 10 7 10 8

Average lifetime maximum (in

thousands) ........................... $1,823 $1,988 $1,609 $1,672 $1,658 $1,900 $2,171 $1,603 $1,327 $1,889

1 Includes other lifetime maximum limits not shown separately. 2 Less than 0.5 percent.

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

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
53

Table 40. Indemnity plans: Coverage for alternatives to hospital care, all private industry workers, National Compensation Survey, 2002

Category of care and extent of

coverage

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

 Extended care

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

Covered in full ........................... 2 2 2 1 2 1 2 1 4 1

Subject to internal limits only1 ... 20 21 16 30 14 23 20 20 29 19

Subject to internal and overall

limits ....................................... 60 59 63 49 60 59 64 57 52 60

Subject to overall limits only2 .... 19 18 20 19 23 17 15 21 15 20

Types of internal limits

Limit on Days ........................ 73 74 72 68 67 75 76 71 72 73

Separate coinsurance ........... 9 9 7 14 7 10 11 7 13 8

Limit to maximum percentage

rate of prior hospital

confinement ....................... 1 1 1 2 1 1 1 1 1 1

Other limits ............................ 9 8 11 10 13 7 12 7 8 9

Limits not determinable ......... 3 ( ) 3 () - - - 3 ( ) 3 ( ) 3 ( ) 3 ( ) 3 ( )

Home health care

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

Covered in full ........................... 7 6 10 4 9 6 7 7 15 6

Subject to internal limits only1 ... 14 16 10 24 10 16 15 14 17 14

Subject to internal and overall

limits ....................................... 49 49 50 47 46 51 52 48 42 50

Subject to overall limits only2 .... 29 29 30 25 36 26 26 31 26 29

Types of internal limits

Limit on days ......................... 54 55 53 57 49 56 57 52 52 54

Separate coinsurance ........... 8 9 7 12 4 10 9 8 8 8

Other limits ............................ 8 8 8 10 8 8 9 8 8 8

Limits not determinable ......... 2 2 1 - - 2 3 1 3 () 2

Hospice care

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

Covered in full ........................... 13 13 15 11 16 12 11 15 22 12

Subject to internal limits only1 ... 14 15 10 19 11 15 14 13 9 14

Subject to internal and overall

limits ....................................... 28 25 32 35 35 25 28 28 34 27

Subject to overall limits only2 .... 45 47 43 36 38 47 46 44 36 46

Types of internal limits

Limit on dollars ...................... 17 17 19 15 21 16 19 16 16 18

Separate coinsurance ........... 10 10 9 17 8 11 9 11 17 9

Other limits ............................ 21 19 20 35 23 20 19 22 17 21

Limits not determinable ......... 1 2 - - - 2 3 - - 1

1 Internal limits apply to individual categories of care; e.g., internal limits or

benefits for hospitalization. Limits may be set in terms of dollar or day ceilings on

benefits, a requirement that the participant pay a percentage of costs

(coinsurance), or a requirement that the participant pay a specific amount

(deductible or copayment) before reimbursement begins or services are

rendered. 2 Overall limits apply to all benefits under the plan, not selected individual

benefits. Overall limits are deductibles and coinsurance percentages that must

be paid by the participant before any plan benefits begin, and overall limits on

plan benefits that can be paid. 3 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category, or data do not

meet publication criteria.
54

Table 41. Copayment provisions for hospital room and board by plan type, all private industry workers,

National Compensation Survey, 2002

Plan type and copayment

provision

All

workers

Occupational group Industry Establishment size

NonWhite union

collar

Blue

collar

Goods

producing

Service

producing

1-99

workers

100

workers

or more

Prepaid

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

Per confinement ............. 79 85 69 72 83 77 83 79

Less than $100 ......... 1 ( ) 1 () - - 1 () - 1 ( ) 1 ( )

$100 ......................... 13 14 11 8 15 15 11 13

$101-199 .................. 6 9 - - 9 4 8 7

$200 ......................... 2 1 4 4 1 - 3 1

$201-249 .................. 3 3 3 5 2 1 5 3

$250 ......................... 31 35 19 30 31 22 39 30

$251-499 .................. 9 6 14 10 8 11 6 9

$500 ......................... 8 6 11 7 9 11 5 8

Greater than $500 .... 2 2 2 - 3 1 3 2

Unspecified

amount .................... 6 7 5 9 5 12 1 7

Limited to maximum

dollar copayment

amount per year2 .......... 9 6 13 6 10 7 10 9

Copayment per year ....... 14 13 16 10 16 18 10 15

Copayment per day ........ 8 4 16 18 2 6 10 7

Copayment limited to a

specified number of

days .............................. 3 1 8 7 1 1 5 3

All Indemnity

Total ...................................... 100 100 100 - 100 100 100 100

Per confinement ............. 73 76 68 - 75 70 74 73

Less than $100 ......... 3 4 2 - 4 3 3 2

$100 ......................... 17 17 14 - 18 19 16 17

$101-199 .................. 9 7 12 - 5 6 10 7

$200 ......................... 12 13 12 - 13 15 11 13

$201-249 .................. 1 ( ) 1 () - - 1 () - 1 ( ) 1 ( )

$250 ......................... 16 21 9 - 19 15 17 18

$251-499 .................. 6 6 8 - 4 7 6 7

$500 ......................... 9 7 10 - 10 4 11 8

Greater than $500 .... 1 1 - - 1 2 1 () 1

Unspecified

amount .................... - - - - - - - -

Limited to maximum

dollar copayment

amount per year2 .......... 3 3 2 - 3 - 5 3

Copayment per year ....... 18 13 23 - 14 21 16 17

Copayment per day ........ 13 15 11 - 15 10 14 14

Copayment limited to a

specified number of

days .............................. 9 13 3 - 11 9 9 10

See footnotes at end of table.
55

Table 41. Copayment provisions for hospital room and board by plan type, all private industry workers,

National Compensation Survey, 2002 — Continued

Plan type and copayment

provision

All

workers

Occupational group Industry Establishment size

NonWhite union

collar

Blue

collar

Goods

producing

Service

producing

1-99

workers

100

workers

or more

Indemnity in and out of

network

Total ...................................... 100 100 100 - 100 100 100 100

Per confinement ............. 72 76 67 - 74 69 73 72

Less than $100 ......... 3 5 2 - 4 4 3 2

$100 ......................... 16 16 15 - 17 19 15 16

$101-199 .................. 7 7 9 - 5 5 9 6

$200 ......................... 14 14 13 - 15 16 12 14

$201-249 .................. 1 ( ) 1 () - - 1 () - 1 1 ( )

$250 ......................... 16 21 9 - 19 14 17 18

$251-499 .................. 6 5 9 - 4 7 5 6

$500 ......................... 9 8 11 - 10 5 12 9

Greater than $500 .... 1 ( ) 1 () - - 1 () - 1 ( ) 1 ( )

Unspecified

amount .................... - - - - - - - -

Limited to maximum

dollar copayment

amount per year2 .......... 3 3 2 - 2 - 4 3

Copayment per year ....... 19 14 24 - 15 22 17 18

Copayment per day ........ 13 16 11 - 16 10 15 14

Copayment limited to a

specified number of

days .............................. 9 14 3 - 11 9 10 10

1 Less than 0.5 percent. 2 Limits placed on the maximum copayment an individual

pays during the year. For example, an individual is subject to a

copayment of $100 per confinement with a limit of $300 per year.

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

equal totals. Where applicable, dash indicates no employees in

this category, or data do not meet publication criteria.
56

Table 42. Prepaid plans: Coverage for selected services and alternatives to hospital care, all private industry workers, National

Compensation Survey, 2002

Category of care and extent

of coverage

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Hospital room and board ....... 100 100 100 100 100 100 100 100 100 100

Covered in full ................... 57 57 50 77 46 62 54 61 62 57

Subject to limits1 ............... 43 43 50 23 54 38 46 39 38 43

Inpatient surgery ................... 100 100 100 100 100 100 100 100 100 100

Covered in full ................... 80 79 84 74 84 78 79 81 85 79

Subject to limits1 ............... 20 21 16 26 16 22 21 19 15 21

Outpatient surgery2 ............... 100 100 100 100 100 100 100 100 100 100

Covered in full ................... 54 57 50 46 51 55 45 63 49 54

Subject to limits1 ............... 46 43 50 54 49 45 55 37 51 46

Office physician visits ............ 100 100 100 100 100 100 100 100 100 100

Covered in full ................... 3 3 3 7 1 4 4 3 6 3

Subject to limits1 ............... 97 97 97 93 99 96 96 97 94 97

Total subject to

copayment per visit3 .... 95 97 94 90 96 95 95 95 90 96

$2 per visit ................. 4 ( ) 4 () - 4 () - 4 () - 4 ( ) 4 ( ) 4 ( )

$5 per visit ................. 9 8 6 20 5 10 11 6 8 9

$6-9 per visit .............. 2 1 1 8 1 2 1 2 6 1

$10 per visit ............... 41 41 46 23 49 37 36 45 48 40

$15 per visit ............... 32 35 25 31 28 33 32 31 18 33

$20 per visit ............... 11 10 14 7 12 11 12 10 10 11

More than $20 per

visit .......................... 1 1 4 () 0 - 1 1 1 - 1

Unspecified

copayment ............... 1 1 4 ( ) 4 ( ) 4 () 1 1 4 () - 1

Total subject to other

limits only ..................... 2 1 3 3 3 1 1 2 4 1

Extended care5 ..................... 100 100 100 100 100 100 100 100 - 100

Covered in full ................... 14 13 17 10 12 15 14 13 - 13

Subject to limits1 ............... 86 87 83 90 88 85 86 87 - 87

Home health care5 ................ 100 100 100 100 100 100 100 100 100 100

Covered in full ................... 63 64 63 62 53 67 58 67 64 63

Subject to limits1 ............... 37 36 37 38 47 33 42 33 36 37

Hospice care ......................... 100 100 100 100 100 100 100 100 - 100

Covered in full ................... 66 65 62 76 54 70 65 66 - 67

Subject to limits1 ............... 34 35 38 24 46 30 35 34 - 33

1 Limits may be set in terms of dollar or day ceilings on benefits, a

requirement that the participant pay a percentage of costs (coinsurance), or a

requirement that the participant pay a specific amount (deductible or

copayment) before reimbursement begins or services are rendered. 2 Charges incurred in the outpatient department of a hospital and outside

of the hospital. 3 Includes other copayments not shown seperately. 4 Less than 0.5 percent.

5 Some plans provide this care only to a patient who was previously

hospitalized and is recovering without need of the extensive care provided by

a general hospital.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
57

Table 43. Prepaid plans: Summary of selected features, all private industry workers, National Compensation Survey, 2002

Selected

features

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Model type:

Group/staff1 ....................................... 16 15 17 15 11 18 17 15 11 16

Individual practice association2 ......... 35 33 39 34 38 34 35 34 45 34

Mixed model ...................................... 20 19 18 29 16 22 21 19 19 20

Network model .................................. 11 12 8 15 6 13 15 7 12 11

Other ................................................. 3 ( ) 3 ( ) 3 () - 3 () - - 3 ( ) 3 ( ) 3 ( )

Not determinable .............................. 18 21 18 7 29 14 12 24 14 19

Federally qualified ................................. 40 38 42 49 36 42 45 37 44 40

1 Care is provided at centralized locations. 2 Care is provided by doctors working out of their offices. 3 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category, or data do not

meet publication criteria.
58

Table 44. Prepaid plans: Extent of coverage for extended care facilities, all private industry workers, National

Compensation Survey, 2002

Type of coverage All

workers

Occupational group Industry Establishment size

NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Covered in full ................... 14 13 17 10 12 15 14 13 13

Day limit ............................ 80 82 73 88 81 80 79 81 81

Per year ......................... 71 71 68 75 76 68 71 70 71

30 .............................. 8 6 8 16 6 9 7 10 8

45 .............................. 5 4 8 1 12 2 9 1 5

60 .............................. 13 13 12 14 21 10 11 15 14

90 .............................. 4 5 4 3 2 5 1 7 4

100 ............................ 23 23 26 18 20 25 25 22 23

120 ............................ 8 6 7 22 10 8 7 9 8

Other ......................... 9 13 3 2 5 10 11 6 9

Per confinement ............ 8 9 6 3 9 7 6 9 8

Per lifetime .................... 3 1 4 10 5 2 3 3 3

Not determinable ........... 2 3 1 1 ( ) 1 () 3 3 1 2

Other limits (only) .............. 6 5 11 2 7 6 6 6 5

Not determinable ............... 1 ( ) 1 () - - - 1 () - 1 ( ) 1 ( )

1 Less than 0.5 percent.

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

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

or data do not meet publication criteria.
59

Table 45. Outpatient prescription drug benefits: Summary of coverage, all private industry workers, National Compensation Survey,

2002

Coverage All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Total with outpatient

prescription drug coverage .. 100 100 100 100 100 100 100 100 100 100

Coverage for brand name

drugs .................................... 99 99 99 99 99 99 99 99 97 99

Higher reimbursement for

generic drugs ....................... 83 84 78 90 78 85 83 83 70 84

Coverage for mail order

drugs1 .................................. 70 73 65 75 65 72 64 75 65 71

Prescription card plan ........... 9 8 12 6 11 8 10 9 11 9

Higher reimbursement for

formulary drugs .................... 27 30 22 22 22 29 24 28 21 27

Not determinable ................... 6 5 7 3 9 4 5 6 7 5

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

required on a continuous basis.

NOTE: Sum of individual items is greater than the total because some

participants were in plans with more than one type of coverage. Where

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
60

Table 46. Mental health care and substance abuse treatment benefits: Relationship to coverage for other illnesses, all private

industry workers, National Compensation Survey, 2002

Relationship to

coverage for

other illnesses

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Mental health care

Inpatient

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

Covered the same ............. 11 11 11 11 11 11 14 9 11 11

Covered differently ............ 89 89 89 89 89 89 86 91 89 89

Outpatient1

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

Covered the same ............. 7 7 8 6 9 7 10 6 6 8

Covered differently ............ 93 93 92 94 91 93 90 94 94 92

Alcohol abuse

Inpatient detoxification2

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

Covered the same ............. 20 19 19 26 19 20 26 15 19 20

Covered differently ............ 80 81 81 74 81 80 74 85 81 80

Inpatient rehabilitation3

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

Covered the same ............. 8 8 7 16 8 9 14 4 4 9

Covered differently ............ 92 92 93 84 92 91 86 96 96 91

Outpatient rehabilitation1

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

Covered the same ............. 8 8 9 6 11 8 12 6 6 9

Covered differently ............ 92 92 91 94 89 92 88 94 94 91

Drug abuse

Inpatient detoxification2

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

Covered the same ............. 19 19 18 26 19 20 25 15 19 19

Covered differently ............ 81 81 82 74 81 80 75 85 81 81

Inpatient rehabilitation3

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

Covered the same ............. 8 8 6 16 7 9 13 5 3 9

Covered differently ............ 92 92 94 84 93 91 87 95 97 91

Outpatient rehabilitation1

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

Covered the same ............. 8 8 9 6 10 8 12 6 5 9

Covered differently ............ 92 92 91 94 90 92 88 94 95 91

1 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated. 2 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 3 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
61

Table 47. Mental health care benefits: Separate limits on coverage, all private industry workers, National Compensation Survey,

2002

Coverage limitation All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Inpatient

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

No separate limits1 ............ 15 14 16 12 17 14 19 12 15 15

Subject to separate

limits2 ............................... 85 86 84 88 83 86 81 88 85 85

Days .............................. 77 78 73 80 73 79 71 81 73 77

Dollars ........................... 7 6 11 4 9 7 9 6 14 6

Coinsurance .................. 11 10 14 8 12 11 11 12 16 11

Copayment .................... 12 11 12 16 14 11 12 12 10 12

Other3 ............................ 4 4 4 6 4 5 4 5 5 4

Outpatient4

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

No separate limits1 ............ 10 10 11 9 13 9 13 9 11 10

Subject to separate

limits2 ............................... 90 90 89 91 87 91 87 91 89 90

Days .............................. 75 76 72 77 71 76 70 79 68 76

Dollars ........................... 7 5 11 3 7 7 8 6 15 6

Coinsurance .................. 18 16 21 23 17 19 20 17 21 18

Copayment .................... 29 31 25 29 28 30 27 31 19 30

Other3 ............................ 9 8 12 9 12 8 11 8 9 9

1 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 2 Separate limitations indicate that mental health care benefits are more

restrictive than benefits for other treatments. For example, if a plan limits

inpatient mental health care to 30 days per year, the plan contains separate

limits. The total is less than the sum of the individual items because many

plans had more than one type of limitation. 3 These are plans when comparisons were made between copayments

and coinsurances for mental health care and all other illnesses. For example,

outpatient mental health care had a 50 percent coinsurance payment while

office visits for other illnesses had a $10 copayment. 4 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
62

Table 48. Prepaid Plans: Coverage for mental health and substance abuse treatment, all private industry workers, National

Compensation Survey, 2002

Category of care and extent

of coverage

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Inpatient mental health

Total with coverage ............... 100 100 100 100 100 100 100 100 100 100

Covered in full ................... 12 12 15 2 11 12 15 9 9 12

Subject to limits1 ............... 88 88 85 98 89 88 85 91 91 88

Outpatient mental health

Total with coverage ............... 100 100 100 100 100 100 100 100 100 100

Covered in full ................... 1 2 () 2 - 2 2 ( ) 2 () 1 5 2 ( )

Subject to limits1 ............... 99 100 98 100 98 100 100 99 95 100

Inpatient alcohol

detoxification3

Total with coverage ............... 100 100 100 100 100 100 100 100 100 100

Covered in full ................... 27 26 25 40 16 31 32 23 18 28

Subject to limits1 ............... 73 74 75 60 84 69 68 77 82 72

Inpatient alcohol

rehabilitation4

Total with coverage ............... 100 100 100 100 100 100 100 100 100 100

Covered in full ................... 13 12 10 24 5 16 21 6 4 14

Subject to limits1 ............... 87 88 90 76 95 84 79 94 96 86

Outpatient alcohol

rehabilitation4

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

Covered in full ................... 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 () 1 2 ( )

Subject to limits1 ............... 100 100 100 100 100 100 100 100 99 100

Inpatient drug

detoxification3

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

Covered in full ................... 26 26 23 39 14 31 32 22 17 27

Subject to limits1 ............... 74 74 77 61 86 69 68 78 83 73

Inpatient drug

rehabilitation4

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

Covered in full ................... 12 12 8 24 3 16 21 5 3 13

Subject to limits1 ............... 88 88 92 76 97 84 79 95 97 87

Outpatient drug

rehabilitation4

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

Covered in full ................... 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 () 1 2 ( )

Subject to limits1 ............... 100 100 100 100 100 100 100 100 99 100

1 Limits may be set in terms of dollar or day ceilings on benefits, a

requirement that the participant pay a percentage of cost (coinsurance), or a

requirement that the participant pay a specific amount (deductible or

copayment) before reimbursement begins or services are rendered. 2 Less than 0.5 percent. 3 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 4 Rehabilitation is designed to alter abusive behavior in patients once they

are free of acute physical and mental complications.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
63

Table 49. Mental health benefits: Separate limits on coverage in prepaid and indemnity plans, all private industry workers, National

Compensation Survey, 2002

Coverage limitation All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Prepaid

Inpatient

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

No separate limits1 .................. 16 17 20 4 17 16 19 14 14 17

Subject to separate limits2 ....... 84 83 80 96 83 84 81 86 86 83

Days .................................... 77 79 71 88 75 78 72 82 77 77

Dollars ................................. 4 4 7 3 () 2 5 6 3 9 4

Coinsurance ........................ 8 9 5 6 1 11 7 9 11 8

Copayment .......................... 14 13 14 18 14 14 15 13 8 15

Other4 .................................. 3 3 4 2 4 3 2 4 7 3

Outpatient5

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

No separate limits1 .................. 7 7 10 2 9 7 8 6 6 7

Subject to separate limits2 ....... 93 93 90 98 91 93 92 94 94 93

Days .................................... 84 85 79 90 79 86 82 85 82 84

Dollars ................................. 4 3 6 - 2 5 5 2 9 3

Coinsurance ........................ 10 8 10 20 7 11 8 12 10 10

Copayment .......................... 44 45 43 46 40 46 40 48 38 45

Other4 .................................. 7 6 10 2 13 4 9 5 10 6

Indemnity

Inpatient

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

No separate limits1 .................. 14 13 14 18 18 12 19 11 16 14

Subject to separate limits2 ....... 86 87 86 82 82 88 81 89 84 86

Days .................................... 77 78 74 75 72 79 70 81 72 77

Dollars ................................. 9 7 13 6 12 8 11 8 16 8

Coinsurance ........................ 13 11 17 9 17 11 13 13 17 12

Copayment .......................... 10 10 11 14 14 9 10 11 11 10

Other4 .................................. 5 5 4 8 4 6 5 5 5 5

Outpatient5

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

No separate limits1 .................. 12 12 12 13 15 10 15 9 13 12

Subject to separate limits2 ....... 88 88 88 87 85 90 85 91 87 88

Days .................................... 70 72 69 67 67 72 62 76 62 71

Dollars ................................. 9 7 13 5 10 8 10 8 18 7

Coinsurance ........................ 22 20 26 25 22 23 27 19 25 22

Copayment .......................... 21 24 17 17 22 21 19 23 12 23

Other4 .................................. 11 9 13 15 12 10 13 10 8 11

1 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major medical

limits of the plan. 2 Separate limitations indicate that mental health care benefits are more

restrictive than benefits for other treatments. For example, if a plan limits

inpatient mental health care to 30 days per year, the plan contains separate

limits. The total is less than the sum of the individual items because many plans

had more than one type of limitation. 3 Less than 0.5 percent. 4 These are plans when comparisons were made between copayments and

coinsurances for mental health care and all other illnesses. For example,

outpatient mental health care had a 50 percent coinsurance payment while office

visits for other illnesses had a $10 copayment. 5 Includes treatment in one or more of the following: outpatient department

of a hospital, residential treatment center, organized outpatient clinic, day-night

treatment center, or doctor’s office. If benefits differed by location of treatment,

the location offering the most beneficial coverage was tabulated.

NOTE: Sum of individual items is greater than total because some participants

were in plans with more than one type of limit. Where applicable, dash indicates

no employees in this category, or data do not meet publication criteria.
64

Table 50. Alcohol and drug abuse: Relationship between provisions, all private industry workers, National Compensation Survey,

2002

Relationship of coverage All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Covered together1 ................. 68 68 67 71 68 68 66 69 68 68

Covered separately but with

the same limits2 ................... 6 6 5 4 4 6 8 4 3 6

Other3 .................................... 21 20 23 16 25 19 21 21 23 21

Alcohol and drug abuse

treatment not covered .......... 2 1 3 1 3 2 2 2 1 2

Not determinable ................... 4 4 2 8 1 5 4 3 4 4

1 These are plans where all limits that apply to alcohol abuse treatment

also apply to drug abuse treatment. When care is received for one of these

types of treatment, it reduces the availability of care from the other. For

example, if alcohol and drug abuse treatments are limited to 30 days per year

and 20 days are used for alcohol abuse treatment, then there are 10 days left

for drug abuse treatment. 2 These are plans where alcohol and drug abuse treatments are subject to

separate but identical limits. For example, alcohol abuse treatment is limited

to 30 days per year and drug abuse treatment is limited to a separate 30 days

per year. 3 Includes plans where alcohol abuse treatment coverage differs from

drug abuse treatment coverage.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
65

Table 51. Alcohol abuse treatment: Separate limits on coverage, all private industry workers, National Compensation Survey, 2002

Coverage limitation All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Inpatient detoxification1

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

No separate limits2 ............ 26 25 25 31 25 26 33 20 23 26

Subject to separate

limits3 ............................... 74 75 75 69 75 74 67 80 77 74

Days .............................. 58 61 55 56 57 59 48 66 56 59

Dollars ........................... 17 14 22 11 17 17 17 17 25 16

Coinsurance .................. 10 9 13 7 11 10 10 10 15 9

Copayment .................... 10 10 9 13 10 10 11 10 7 11

Other ............................. 6 6 6 8 7 5 5 6 8 5

Inpatient rehabilitation4

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

No separate limits2 ............ 12 12 11 17 12 12 20 6 6 13

Subject to separate

limits3 ............................... 88 88 89 83 88 88 80 94 94 87

Days .............................. 70 72 66 71 67 71 60 77 71 70

Dollars ........................... 20 17 25 14 19 20 20 19 30 18

Coinsurance .................. 12 10 15 10 13 11 12 11 18 11

Copayment .................... 12 12 11 15 12 12 12 11 10 12

Other ............................. 7 7 8 8 9 7 7 8 9 7

Outpatient rehabilitation5

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

No separate limits2 ............ 11 10 12 8 14 9 14 8 8 11

Subject to separate

limits3 ............................... 89 90 88 92 86 91 86 92 92 89

Days .............................. 66 68 62 69 62 68 62 69 61 67

Dollars ........................... 20 18 24 16 17 21 20 19 28 18

Coinsurance .................. 16 13 19 19 15 16 18 14 21 15

Copayment .................... 24 28 18 25 21 25 24 24 13 26

Other ............................. 11 9 13 13 12 10 10 11 14 10

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that alcohol abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year, the

plan contains separate limits. The total is less than the sum of the individual

items because many plans had more than one type of limitation.

4 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 5 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
66

Table 52. Alcohol abuse treatment benefits: Separate limits on coverage in indemnity plans, all private industry workers, National

Compensation Survey, 2002

Coverage limitation All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Inpatient detoxification1

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

No separate limits2 ............ 18 19 17 22 20 18 27 13 18 19

Subject to separate

limits3 ............................... 82 81 83 78 80 82 73 87 82 81

Days .............................. 64 66 60 65 60 65 54 70 58 64

Dollars ........................... 21 19 27 16 23 21 22 21 30 20

Coinsurance .................. 12 9 15 11 14 10 11 12 16 11

Copayment .................... 9 9 8 11 10 8 8 9 8 9

Other4 ............................ 7 6 6 12 7 6 6 7 9 6

Inpatient rehabilitation5

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

No separate limits2 ............ 10 9 11 9 13 8 18 4 6 10

Subject to separate

limits3 ............................... 90 91 89 91 87 92 82 96 94 90

Days .............................. 70 73 66 77 65 73 61 77 69 71

Dollars ........................... 24 22 29 20 25 24 25 24 34 23

Coinsurance .................. 13 10 17 12 16 11 12 13 19 12

Copayment .................... 10 10 9 12 11 9 9 10 9 10

Other4 ............................ 8 7 7 13 8 7 6 8 9 7

Outpatient rehabilitation6

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

No separate limits2 ............ 10 9 11 10 14 8 14 7 9 10

Subject to separate

limits3 ............................... 90 91 89 90 86 92 86 93 91 90

Days .............................. 64 66 60 64 59 66 60 66 56 65

Dollars ........................... 24 22 28 19 24 24 25 24 33 23

Coinsurance .................. 19 16 23 26 19 20 21 18 24 19

Copayment .................... 18 22 12 12 16 19 16 19 6 20

Other4 ............................ 13 11 16 20 14 13 13 13 17 13

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that alcohol abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year, the

plan contains separate limits. The total is less than the sum of the individual

items because many plans had more than one type of limitation. 4 These are plans when comparisons were made between copayments

and coinsurances for alcohol abuse treatment and all other illnesses. For

example, outpatient alcohol abuse treatment had a 50 percent coinsurance

payment while office visits for other illnesses had a $10 copayment. 5 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 6 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
67

Table 53. Alcohol abuse treatment benefits: Separate limits on coverage in prepaid plans, all private industry workers, National

Compensation Survey, 2002

Coverage limitation All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Inpatient detoxification1

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

No separate limits2 ............ 39 37 41 43 35 41 45 34 35 39

Subject to separate

limits3 ............................... 61 63 59 57 65 59 55 66 65 61

Days .............................. 48 52 42 43 50 47 37 57 51 48

Dollars ........................... 8 6 11 5 3 9 9 7 13 7

Coinsurance .................. 7 8 8 2 4 9 9 5 12 7

Copayment .................... 13 12 12 16 11 13 15 11 5 13

Other4 ............................ 4 4 4 1 5 3 4 4 6 4

Inpatient rehabilitation5

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

No separate limits2 ............ 17 17 13 27 10 20 23 12 5 18

Subject to separate

limits3 ............................... 83 83 87 73 90 80 77 88 95 82

Days .............................. 69 71 67 63 72 68 58 78 78 68

Dollars ........................... 9 8 14 6 3 12 11 8 17 8

Coinsurance .................. 9 10 10 7 5 11 11 8 16 9

Copayment .................... 16 16 17 19 15 17 19 15 14 17

Other4 ............................ 6 6 10 1 10 5 7 6 9 6

Outpatient rehabilitation6

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

No separate limits2 ............ 12 12 15 4 13 11 12 11 6 12

Subject to separate

limits3 ............................... 88 88 85 96 87 89 88 89 94 88

Days .............................. 72 73 67 78 69 73 66 76 76 71

Dollars ........................... 10 9 13 10 2 13 12 9 16 10

Coinsurance .................. 8 7 10 8 7 8 12 5 11 8

Copayment .................... 37 38 32 44 34 38 39 35 34 37

Other4 ............................ 5 5 6 2 7 4 4 5 6 5

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that alcohol abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year, the

plan contains separate limits. The total is less than the sum of the individual

items because many plans had more than one type of limitation. 4 These are plans when comparisons were made between copayments

and coinsurances for alcohol abuse treatment and all other illnesses. For

example, outpatient alcohol abuse treatment had a 50 percent coinsurance

payment while office visits for other illnesses had a $10 copayment. 5 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 6 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
68

Table 54. Drug abuse treatment: Separate limits on coverage, all private industry workers, National Compensation Survey, 2002

Coverage limitations All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Inpatient detoxification1

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

No separate limits2 ............ 25 25 24 25 25 25 27 25 29 24

Subject to separate

limits3 ............................... 75 75 76 75 75 75 73 75 71 76

Days .............................. 60 60 60 62 61 60 54 62 59 61

Dollars ........................... 14 12 20 15 14 14 17 14 15 14

Coinsurance .................. 7 6 8 8 6 7 9 6 8 7

Copayment .................... 10 10 9 9 11 9 12 9 7 10

Other4 ............................ 6 6 5 4 5 6 5 6 6 6

Inpatient rehabilitation5

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

No separate limits2 ............ 11 11 11 11 13 10 14 10 9 11

Subject to separate

limits3 ............................... 89 89 89 89 87 90 86 90 91 89

Days .............................. 74 74 73 75 72 75 68 75 79 73

Dollars ........................... 16 14 22 17 16 16 20 15 17 16

Coinsurance .................. 8 7 9 10 7 8 11 7 9 7

Copayment .................... 11 11 11 10 13 10 13 11 9 11

Other4 ............................ 7 8 8 5 7 8 6 8 7 7

Outpatient rehabilitation6

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

No separate limits2 ............ 9 9 12 8 16 7 10 9 7 10

Subject to separate

limits3 ............................... 91 91 88 92 84 93 90 91 93 90

Days .............................. 69 69 67 74 65 70 68 69 72 68

Dollars ........................... 17 16 21 17 14 18 20 17 16 17

Coinsurance .................. 11 10 15 15 12 11 16 11 14 11

Copayment .................... 26 28 21 26 22 27 25 26 24 26

Other4 ............................ 12 12 11 13 10 12 11 12 13 11

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that alcohol abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year, the

plan contains separate limits. The total is less than the sum of the individual

items because many plans had more than one type of limitation. 4 These are plans when comparisons were made between copayments

and coinsurances for drug abuse treatment and all other illnesses. For

example, outpatient drug abuse treatment had a 50 percent coinsurance

payment while office visits for other illnesses had a $10 copayment. 5 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 6 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
69

Table 55. Drug abuse treatment benefits: Separate limits on coverage in indemnity plans, all private industry workers, National

Compensation Survey, 2002

Category of care and extent

of coverage

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Inpatient detoxification1

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

No separate limits2 ............ 18 19 17 22 20 18 26 13 18 18

Subject to separate

limits3 ............................... 82 81 83 78 80 82 74 87 82 82

Days .............................. 64 65 61 65 60 66 55 70 59 65

Dollars ........................... 22 19 27 16 23 21 22 21 30 20

Coinsurance .................. 12 9 15 11 14 10 11 12 16 11

Copayment .................... 9 9 8 11 10 8 8 9 8 9

Other4 ............................ 7 7 7 12 8 7 6 8 9 7

Inpatient rehabilitation5

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

No separate limits ............. 10 10 10 10 13 8 17 5 6 10

Subject to separate

limits3 ............................... 90 90 90 90 87 92 83 95 94 90

Days .............................. 70 72 66 76 65 73 61 77 70 70

Dollars ........................... 24 22 29 20 25 24 25 24 34 23

Coinsurance .................. 13 10 17 12 15 12 12 13 18 12

Copayment .................... 10 10 9 11 11 9 9 10 9 10

Other4 ............................ 8 8 7 13 8 8 6 9 9 8

Outpatient rehabilitation6

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

No separate limits2 ............ 10 10 10 11 13 8 14 7 8 10

Subject to separate

limits3 ............................... 90 90 90 89 87 92 86 93 92 90

Days .............................. 64 66 61 63 60 66 60 66 57 65

Dollars ........................... 24 22 28 20 24 24 25 24 33 23

Coinsurance .................. 20 16 23 26 19 20 21 19 25 19

Copayment .................... 18 22 12 12 16 19 16 19 6 20

Other4 ............................ 14 12 16 20 15 13 13 14 17 13

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that alcohol abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year, the

plan contains separate limits. The total is less than the sum of the individual

items because many plans had more than one type of limitation. 4 These are plans when comparisons were made between copayments

and coinsurances for alcohol abuse treatment and all other illnesses. For

example, outpatient alcohol abuse treatment had a 50 percent coinsurance

payment while office visits for other illnesses had a $10 copayment. 5 Rehabilitation is designed to alter abusive behavior in patients once they

are free of acute physical and mental complications. 6 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. Where applicable,

dash indicates no employees in this category, or data do not meet publication

criteria.
70

Table 56. Drug abuse treatment benefits: Separate limits on coverage in prepaid plans, all private industry workers, National

Compensation Survey, 2002

Category of care and extent

of coverage

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Inpatient detoxification1

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

No separate limits2 ............ 38 37 39 42 33 40 45 33 35 39

Subject to separate

limits3 ............................... 62 63 61 58 67 60 55 67 65 61

Days .............................. 49 52 44 44 52 47 37 59 51 48

Dollars ........................... 8 6 11 5 3 9 9 7 13 7

Coinsurance .................. 7 8 8 2 4 9 9 5 12 7

Copayment .................... 13 12 12 16 11 13 15 11 5 13

Other4 ............................ 4 4 4 1 5 3 4 4 6 4

Inpatient rehabilitation5

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

No separate limits2 ............ 16 17 11 27 7 20 23 11 4 18

Subject to separate

limits3 ............................... 84 83 89 73 93 80 77 89 96 82

Days .............................. 70 72 68 63 75 68 59 79 79 69

Dollars ........................... 9 8 15 6 3 12 11 8 17 9

Coinsurance .................. 9 10 10 7 5 11 11 8 16 9

Copayment .................... 17 16 17 19 15 17 19 15 15 17

Other4 ............................ 6 6 10 1 11 5 7 6 9 6

Outpatient rehabilitation6

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

No separate limits2 ............ 11 12 14 4 12 11 12 11 6 12

Subject to separate

limits3 ............................... 89 88 86 96 88 89 88 89 94 88

Days .............................. 72 73 67 78 70 73 67 76 77 71

Dollars ........................... 10 9 13 10 2 13 12 9 16 10

Coinsurance .................. 8 7 10 8 7 8 12 5 11 8

Copayment .................... 37 38 32 44 34 38 40 35 34 37

Other4 ............................ 5 5 6 2 7 4 4 5 6 5

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 These include plans that provide coverage without any separate limits;

they also include plans that provide coverage subject to only the major

medical limits of the plan. 3 Separate limitations indicate that alcohol abuse treatment benefits are

more restrictive than benefits for other treatments. For example, if a plan

limits inpatient rehabilitation care to 30 days per year, but the limit on

inpatient care for any other type of illness is greater than 30 days per year, the

plan contains separate limits. The total is less than the sum of the individual

items because many plans had more than one type of limitation. 4 These are plans when comparisons were made between copayments

and coinsurances for alcohol abuse treatment and all other illnesses. For

example, outpatient alcohol abuse treatment had a 50 percent coinsurance

payment while office visits for other illnesses had a $10 copayment. 5 Rehabilitation is designed to alter abusive behavior in patients once they

are free of acute physical and mental complications. 6 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. Where applicable,

dash indicates no employees in this category, or data do not meet publication

criteria.
71

Table 57. Mental health care and substance abuse treatment benefits: Application to out-of-pocket expense provisions in indemnity

plans, all private industry workers, National Compensation Survey, 2002

Type of coverage All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Mental health

Inpatient mental

Total ..................................... 100 100 100 - 100 100 100 100 100 100

Subject to plan’s

out-of-pocket limits .......... 55 54 54 - 49 57 57 53 51 55

Not subject to plan’s

out-of-pocket limits .......... 35 36 34 - 35 35 27 39 37 34

Not determinable ............... 11 11 12 - 16 8 15 8 12 11

Outpatient mental

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

Subject to plan’s

out-of-pocket limits .......... 50 49 50 55 48 51 55 47 43 51

Not subject to plan’s

out-of-pocket limits .......... 41 41 40 42 39 41 31 47 44 40

Not determinable ............... 9 10 10 3 13 8 15 6 12 9

Alcohol abuse

Inpatient detoxification1

Total ..................................... 100 100 100 - 100 100 100 100 100 100

Subject to plan’s

out-of-pocket limits .......... 52 48 56 - 51 53 54 51 52 52

Not subject to plan’s

out-of-pocket limits .......... 38 42 33 - 34 40 34 40 36 38

Not determinable ............... 10 10 11 - 15 7 12 8 13 9

Inpatient rehabilitation2

Total ..................................... 100 100 100 - 100 100 100 100 100 100

Subject to plan’s

out-of-pocket limits .......... 51 47 56 - 50 52 50 52 54 51

Not subject to plan’s

out-of-pocket limits .......... 38 41 33 - 35 39 34 40 35 38

Not determinable ............... 11 12 11 - 15 9 16 8 12 11

Outpatient rehabilitation3

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

Subject to plan’s

out-of-pocket limits .......... 47 44 51 55 49 47 51 45 45 48

Not subject to plan’s

out-of-pocket limits .......... 43 46 39 44 38 46 35 48 43 43

Not determinable ............... 10 10 10 1 14 8 14 7 12 9

Drug abuse

Inpatient detoxification1

Total ..................................... 100 100 100 - 100 100 100 100 100 100

Subject to plan’s

out-of-pocket limits .......... 52 48 56 - 51 53 54 51 52 52

Not subject to plan’s

out-of-pocket limits .......... 38 42 33 - 34 40 34 40 36 38

Not determinable ............... 10 10 11 - 15 7 12 8 13 9

Inpatient rehabilitation2

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

Subject to plan’s

out-of-pocket limits .......... 51 47 56 67 50 52 50 52 54 51

Not subject to plan’s

out-of-pocket limits .......... 38 41 33 32 35 39 34 40 35 38

Not determinable ............... 11 12 11 1 15 9 16 8 12 11

See footnotes at end of table.
72

Table 57. Mental health care and substance abuse treatment benefits: Application to out-of-pocket expense provisions in indemnity

plans, all private industry workers, National Compensation Survey, 2002 — Continued

Type of coverage All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Outpatient rehabilitation3

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

Subject to plan’s

out-of-pocket limits .......... 47 44 51 55 49 47 51 45 45 48

Not subject to plan’s

out-of-pocket limits .......... 43 46 39 44 38 46 35 48 42 43

Not determinable ............... 10 10 10 1 14 8 15 6 13 9

1 Detoxification is the systematic use of medication and other methods

under medical supervision to reduce or eliminate the effects of substance

abuse. 2 Rehabilitation is designed to alter the abusive behavior in patients once

they are free of acute physical and mental complications. 3 Includes treatment in one or more of the following: outpatient

department of a hospital, residential treatment center, organized outpatient

clinic, day-night treatment center, or doctor’s office. If benefits differed by

location of treatment, the location offering the most beneficial coverage was

tabulated.

NOTE: Sum of individual items is greater than total because some

participants were in plans with more than one type of limit. Where applicable,

dash indicates no employees in this category, or data do not meet publication

criteria.
73

Table 58. Dental care benefits: Coverage for selected procedures and average percentage of usual, customary, and reasonable charge,

all private industry workers, National Compensation Survey, 2002

Categories of care and extent of

coverage

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Exams

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

Covered1 ....................................... 100 100 100 100 100 100 100 100 100 100

In full2 ...................................... 30 30 33 22 37 27 33 29 29 30

Scheduled cash allowance ..... 2 2 3 5 2 2 2 3 8 1

Subject to copayment3 ............ 4 4 2 5 3 4 4 3 4 4

Percent of usual, customary

and reasonable charge ......... 63 64 61 68 58 66 61 65 59 64

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

Average percent ............................ 96.45 96.62 95.84 97.23 97.24 96.13 96.82 96.26 96.73 96.40

X-rays

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

Covered1 ....................................... 100 100 100 100 100 100 100 100 100 100

In full2 ...................................... 30 30 32 22 36 27 33 28 27 30

Scheduled cash allowance ..... 2 2 3 5 2 2 2 3 8 1

Subject to copayment3 ............ 3 4 2 5 1 4 3 3 4 3

Percent of usual, customary

and reasonable charge ......... 64 64 63 68 59 66 61 65 62 64

Other4 ..................................... 1 1 1 1 1 1 2 1 1 1

Average percent ............................ 95.84 96.20 94.71 97.17 96.11 95.74 96.53 95.49 95.36 95.92

Fillings

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

Covered1 ....................................... 100 100 100 100 100 100 100 100 99 100

In full2 ...................................... 4 5 3 4 3 5 3 5 4 4

Scheduled cash allowance ..... 4 4 5 5 4 4 3 5 13 3

Subject to copayment3 ............ 5 6 3 6 3 6 4 5 5 5

Percent of usual, customary

and reasonable charge ......... 87 86 89 87 90 86 90 86 77 89

Other4 ..................................... 2 2 2 2 2 2 2 2 1 2

Not determinable ........................... 5 ( ) 5 ( ) 5 ( ) 5 ( ) 5 ( ) 5 ( ) 5 ( ) 5 () 1 5 ( )

Average percent ............................ 80.53 80.26 80.85 81.07 80.96 80.32 80.97 80.28 81.39 80.40

Surgery6

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

Covered1 ....................................... 100 100 100 100 100 100 100 100 99 100

In full2 ...................................... 3 3 2 2 2 3 2 3 2 3

Scheduled cash allowance ..... 4 4 4 5 3 4 3 4 12 2

Subject to copayment3 ............ 8 9 4 15 5 9 6 9 8 8

Percent of usual, customary

and reasonable charge ......... 87 86 90 85 90 85 89 86 77 89

Other4 ..................................... 2 1 2 2 2 2 2 2 1 2

Not covered ................................... 5 ( ) 5 () – – – 5 () – 5 () – 5 ( )

Not determinable ........................... 5 ( ) 5 ( ) 5 ( ) 5 ( ) 5 ( ) 5 () – 5 () 1 5 ( )

Average percent ............................ 80.02 79.93 80.98 77.33 81.29 79.42 80.26 79.89 80.96 79.88

See footnotes at end of table.
74

Table 58. Dental care benefits: Coverage for selected procedures and average percentage of usual, customary, and reasonable charge,

all private industry workers, National Compensation Survey, 2002 — Continued

Categories of care and extent of

coverage

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Periodontal care

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

Covered1 ....................................... 98 98 99 100 99 98 98 98 99 98

In full2 ...................................... 1 2 1 1 1 2 2 1 2 1

Scheduled cash allowance ..... 4 4 4 5 3 5 3 5 12 3

Subject to copayment3 ............ 7 8 4 7 5 8 5 8 8 7

Percent of usual, customary

and reasonable charge ......... 87 85 90 86 91 84 88 86 78 88

Other4 ..................................... 2 2 2 5 2 2 3 2 2 2

Not covered ................................... 5 ( ) 5 ( ) 5 () – 5 ( ) 5 () – 5 () – 5 ( )

Not determinable ........................... 2 2 1 5 ( ) 5 () 2 2 1 1 2

Average percent ............................ 77.13 76.27 78.47 77.85 77.81 76.80 76.10 77.70 78.46 76.93

Endodontics

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

Covered1 ....................................... 98 98 98 97 99 98 98 98 99 98

In full2 ...................................... 2 2 1 1 1 2 2 2 2 2

Scheduled cash allowance ..... 4 3 5 5 3 4 4 4 11 3

Subject to copayment3 ............ 7 8 3 7 4 8 4 8 7 6

Percent of usual, customary

and reasonable charge ......... 86 85 90 83 92 84 88 86 78 88

Other4 ..................................... 2 2 2 5 2 2 3 2 2 2

Not covered ................................... 5 ( ) 5 ( ) 5 () – 1 5 () – 5 () 1 5 ( )

Not determinable ........................... 1 1 1 3 – 2 2 1 1 2

Average percent ............................ 75.04 74.59 75.86 74.97 74.96 75.07 73.62 75.81 77.08 74.72

Crowns

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

Covered1 ....................................... 98 98 99 99 98 98 99 98 98 98

In full2 ...................................... 5 ( ) 5 ( ) 5 ( ) 5 () – 5 ( ) 5 ( ) 5 ( ) 5 ( ) 5 ( )

Scheduled cash allowance ..... 4 3 5 5 3 4 4 4 11 3

Subject to copayment3 ............ 7 9 4 13 4 9 4 9 7 7

Percent of usual, customary

and reasonable charge ......... 88 87 91 86 92 86 90 87 80 89

Other4 ..................................... 2 2 1 5 2 2 3 2 1 2

Not covered ................................... 1 1 1 1 2 1 1 1 2 1

Not determinable ........................... 1 1 – – 5 () 1 5 () 1 5 () 1

Average percent ............................ 56.85 55.80 59.29 54.94 59.02 55.80 55.67 57.50 61.18 56.18

See footnotes at end of table.
75

Table 58. Dental care benefits: Coverage for selected procedures and average percentage of usual, customary, and reasonable charge,

all private industry workers, National Compensation Survey, 2002 — Continued

Categories of care and extent of

coverage

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Prosthetics

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

Covered1 ....................................... 98 98 97 99 98 98 97 98 98 98

In full2 ...................................... 5 ( ) 5 () – 5 () – 5 () – 5 ( ) 5 ( ) 5 ( )

Scheduled cash allowance ..... 4 3 5 5 3 4 4 4 11 3

Subject to copayment3 ............ 7 9 4 13 4 9 4 9 7 7

Percent of usual, customary

and reasonable charge ......... 88 87 90 86 91 86 89 87 80 89

Other4 ..................................... 2 2 1 5 2 2 3 2 1 2

Not covered ................................... 1 1 1 1 2 1 1 1 2 1

Not determinable ........................... 1 1 2 5 () 1 2 2 1 1 1

Average percent ............................ 55.28 54.78 56.42 54.56 56.59 54.66 54.99 55.44 57.65 54.92

Orthodontia

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

Covered1 ....................................... 75 74 80 68 77 75 69 79 87 73

Scheduled cash allowance ..... 10 9 11 7 11 9 8 10 19 8

Subject to copayment3 ............ 6 6 4 11 3 7 1 8 9 5

Percent of usual, customary

and reasonable charge ......... 63 62 66 56 62 63 60 64 61 63

Other4 ..................................... 3 4 2 2 3 3 2 4 6 3

Not covered ................................... 16 17 13 21 15 17 21 13 8 17

Not determinable ........................... 9 9 8 12 8 9 9 8 5 9

Average percent ............................ 52.57 52.77 52.08 53.07 52.01 52.81 51.96 52.87 54.41 52.26

1 Sum of individual items is greater than total because some participants

were in plans with more than one limit. 2 Includes plans that paid the full cost with no deductible or maximum dollar

amount. 3 Participant pays a specific amount per procedure and plan pays all

remaining expenses. In the case of orthodontia, the copayment is generally

applied once per lifetime. 4 Includes plans that provide care based on an incentive schedule or

discounted benefit. An incentive schedule is a reimbursement arrangement in

which the percentage of dental expenses paid by the plan increases if regular

dental appointments are scheduled. Discounted benefits are available if

obtained from an approved provider. 5 Less than 0.5 percent. 6 Excludes plans that limited coverage to accidental injuries, removal of

impacted wisdom teeth, or repair of jaw.

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

Where applicable, dash indicates no employees in this category.
76

Table 59. Dental care benefits: Amount of individual deductible,1 all private industry workers, National Compensation Survey, 2002

Type of deductible All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Subject to separate dental

deductible2 ........................... 72 74 68 71 62 76 74 71 48 76

Yearly deductible only ....... 71 73 67 71 62 75 72 71 46 75

$25 ................................ 17 14 19 26 24 13 16 17 14 17

$50 ................................ 47 51 43 37 36 52 50 45 28 50

Other ............................. 8 9 5 8 3 10 6 8 4 8

Unspecified ....................... 3 ( ) 3 () – – – 3 ( ) 3 () – – 3 ( )

Lifetime deductible only ..... 1 1 1 3 () – 1 1 3 () 2 3 ( )

Both yearly and lifetime

deductible ........................ 3 ( ) 3 ( ) 3 () – – 3 ( ) 3 () – – 3 ( )

No deductible ........................ 25 24 27 25 32 22 23 26 44 22

Not determinable ................... 3 2 5 4 6 2 3 3 8 2

Average employee yearly

deductible ............................ $47.42 $48.79 $45.64 $44.24 $41.93 $49.46 $45.68 $48.38 $44.77 $47.70

1 Amount of deductible described is for each insured person. In some

plans, the individual and family deductibles are identical. Excludes separate

deductibles for orthodontic procedures. 2 A single deductible may not apply to all covered dental procedures. If

separate deductibles applied to different procedures, the sum of the

deductible amounts was tabulated. 3 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category.
77

Table 60. Dental care benefits: Relationship of yearly family deductibles to yearly individual deductibles, all private industry

workers, National Compensation Survey, 2002

Relationship between individual

and family deductible

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

With individual and family

deductible ...................................... 50 50 49 57 47 52 48 51 33 53

Family deductible is:

2 times individual deductible ..... 9 8 8 13 8 9 6 10 10 8

 3 times individual deductible ..... 40 40 39 43 37 41 42 39 21 43

 Other ......................................... 2 1 2 1 2 1 1 2 1 2

No deductible or no family

deductible ...................................... 47 48 46 40 47 46 48 46 59 44

Not determinable ............................ 3 2 5 4 6 2 3 3 8 2

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

totals. Where applicable, dash indicates no employees in this category, or

data do not meet publication criteria.
78

Table 61. Dental care benefits: Maximum benefit provision,1 all private industry workers, National Compensation Survey, 2002

Dollar amount2 All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Yearly maximum specified3 ... 86 86 87 80 85 86 84 86 84 86

Less than $1000 ................ 3 3 4 3 4 3 4 3 1 4

$1000 ................................ 34 34 35 35 32 35 38 32 25 36

$1001-$1499 ..................... 6 6 6 8 5 7 8 5 10 6

$1500 ................................ 27 29 25 24 28 27 20 31 31 26

Greater than $1500 ........... 15 15 17 9 16 14 15 15 18 14

Unspecified ....................... 4 ( ) 4 () - - - 4 ( ) 4 () - - 4 ( )

No yearly maximum .............. 11 11 8 15 8 12 10 11 12 10

Maximum provision not

determinable ........................ 3 2 4 5 5 2 4 3 4 3

Average yearly maximum ...... $1,356 $1,369 $1,358 $1,264 $1,370 $1,350 $1,341 $1,364 $1,426 $1,345

1 Includes all covered dental procedures except orthodontia. Amount of

maximum specified is for each insured person. 2 Coverage for dental procedures may also be subject to scheduled

allowance, deductible, or coinsurance provisions in addition to maximum

dollar limitations. 3 If separate yearly maximums applied to different procedures, the sum of

the maximums was tabulated. Maximums applied to dental expenses only. 4 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
79

Table 62. Orthodontia care benefits: Maximum benefit provision,1 all private industry workers, National Compensation Survey, 2002

Dollar amount All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Lifetime maximum specified 75 75 79 67 78 74 75 76 82 74

Less than $1,000 ............... 4 4 5 7 6 3 8 3 2 5

$1,000 ............................... 30 32 28 23 23 33 31 29 24 31

$1,001-$1,499 ................... 6 5 6 11 5 7 8 5 10 5

$1,500 ............................... 23 23 23 19 26 21 20 24 17 24

Greater than $1,500 .......... 11 10 15 7 15 10 7 13 26 9

Dollar amount

unspecified ...................... 1 1 1 1 3 2 () – 2 2 1

No lifetime maximum ............. 24 24 20 33 20 25 25 23 17 25

Provision not determinable .... 1 1 1 2 () 2 2 () – 1 1 1

Average lifetime maximum3 .. $1,316 $1,308 $1,344 $1,254 $1,356 $1,297 $1,261 $1,342 $1,472 $1,283

1 Coverage for orthodontia procedure may also be subject to scheduled

allowance, deductible, or coinsurance provisions in addition to maximum

dollar limitations. 2 Less than 0.5 percent. 3 The average is presented for all covered workers; averages exclude

workers without the plan provision.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
80

Table 63. Dental care benefits: Percent of participants in plan with orthodontic benefits by type of individuals covered, all

private industry workers, National Compensation Survey, 2002

Type of individual covered All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Dependent children only ...... 54 52 58 52 61 51 58 52 56 54

Employee and dependents ... 36 38 34 33 31 39 31 39 39 36

Not determinable .................. 10 10 8 15 8 10 12 9 5 11

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

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

or data do not meet publication criteria.
81

Table 64. Dental care benefits: Percent of participants in plans with orthodontic benefits by

difference in dollar maximums between employees and dependents, all private industry

workers, National Compensation Survey, 2002

Difference in maximums Total

Difference 

in dollar

maximums 

No difference

 in dollar

maximums

Not

determinable

All workers ........................................ 100 7 82 11

Worker characteristics

White collar ....................................... 100 5 87 8

Blue collar ......................................... 100 9 75 16

Union ................................................ 100 15 78 7

Nonunion .......................................... 100 5 83 11

Industry

Goods producing .............................. 100 7 81 12

Service producing ............................. 100 7 83 10

Establishment size

1-99 workers ..................................... 100 12 75 14

100 workers or more ........................ 100 5 86 9

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates

no employees in this category, or data do not meet

publication criteria.
82

Table 65. Vision care benefits: Coverage for selected procedures, all private industry workers, National Compensation Survey, 2002

Type of vision benefit All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

Exams

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

Covered1 ............................... 98 99 97 99 100 98 97 99 100 98

In full ............................... 25 27 24 23 26 25 24 26 29 24

Scheduled cash

allowance ...................... 20 19 22 18 17 22 22 19 29 18

Subject to copay ............. 50 52 46 54 51 50 46 53 39 53

Retail discount ................ 4 2 5 8 4 3 6 2 2 4

Other2 ............................. 3 3 4 4 4 3 2 3 2 3

Not covered ........................... 1 3 () 2 1 - 1 3 () 1 3 () 1

Not determinable ................... 1 1 1 3 () - 1 3 3 () - 1

Glasses

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

Covered1 ............................... 100 100 100 100 100 100 100 100 99 100

In full ............................... 11 11 11 12 14 10 14 10 12 11

Scheduled cash

allowance ...................... 46 45 49 38 52 43 45 46 56 44

Subject to copay ............. 33 35 28 42 22 38 18 41 27 35

Retail discount ................ 16 14 19 16 21 13 24 12 13 17

Other2 ............................. 4 4 4 5 4 4 5 3 2 4

Not covered ........................... 3 ( ) 3 ( ) 3 ( ) 3 () - 3 () - 3 () 1 3 ( )

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

Contacts4

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

Covered1 ............................... 96 97 96 91 98 95 95 97 97 96

In full ............................... 5 5 4 10 8 4 9 3 4 5

Scheduled cash

allowance ...................... 61 62 62 47 63 60 50 66 71 59

Subject to copayment ..... 23 24 21 27 17 26 17 26 22 24

Retail discount ................ 16 15 17 22 18 15 21 13 9 17

Other2 ............................. 4 4 5 4 6 3 6 3 2 5

Not covered ........................... 2 1 1 8 3 () 2 1 2 2 1

Not determinable ................... 2 2 3 1 2 3 4 2 1 3

1 The total is less than the sum of individual items because many participants

are in plans with more than one type of limitation. 2 Includes plans subject to coinsurance and retail discount. 3 Less than 0.5 percent. 4 Includes plans that provide coverage for elected contact lenses; medically

necessary contact lenses, i.e., cataract surgery, is normally provided under the

surgical portion of the medical plan and is not described in this table.

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

applicable, dash indicates no employees in this category.
83

Chapter 3. Retirement Income

Benefits

Defined Benefit Plans

Defined benefit pension plans provide employees with

guaranteed retirement benefits based on predetermined benefit formulas. A participant’s retirement

age, length of service, and preretirement earnings may affect

the benefits received. Definitions, key provisions, and related terms follow.

Benefit Formulas

Traditional

Terminal-earnings formulas. Benefits are based on a percentage of average earnings during a specified number of

years at the end of a worker’s career (or when earnings are

highest), multiplied by the number of years of service recognized by the plan.

Career-earnings formulas. Benefits are based on a percentage of an average of career earnings for every year of service

recognized by the plan.

Dollar amount formulas. Benefits are based on a dollar

amount per month for each year of service recognized by the

plan.

Percentage of contribution formulas. Benefits are based on

employer, and, occasionally, employee contributions. Benefits equal a percentage of total contributions.

Other types

Cash balance formulas. Benefits are computed as a percentage of each employee’s account balance. Employers specify

a contribution, and a rate of interest on that contribution,

that will provide a predetermined amount at retirement, generally as a lump sum.

Pension equity. For each year of work, employees are credited with a percentage applied to their final average earnings.

Benefits are generally disbursed as a lump sum.

Normal retirement

Normal retirement is the age at which plan participants may

retire and receive all accrued benefits.

Early retirement

Early retirement is the age (or a combination of age and service)

at which plan participants may retire and receive all accrued

benefits, minus a reduction for the years prior to their normal

retirement age.

Benefit payment methods

Payments from defined benefit plans may be in the form of a

straight-life annuity, a joint-and-survivor annuity, a percentage of unreduced accrued benefit, or a lump sum.

Straight-life annuity. A periodic payment made for the life of

the retiree, with no additional payments to survivors.

Joint-and-survivor annuity. The Employee Retirement Income Security Act of 1974 (ERISA) requires defined benefit

pension plans that offer an annuity as a payment option to

provide a qualified joint-and-survivor annuity (QJSA) as the

normal benefit payment for married participants. A QJSA is

an immediate annuity for the life of the participant and a

survivor annuity for the life of the participant’s spouse. The

amount of the survivor annuity may not be less than 50

percent, or more than 100 percent, of the amount payable

during the time the participant and spouse are both alive.

The annuity payable for the life of the participant is lower

than that for a straight-life annuity. To account for the increased length of time over which payments will be made,

this reduction may be a percentage of the straight-life benefit, such as 10 percent, or may be based on the life expectancy of the participant and spouse (the so-called actuarial

reduction).

Percentage of unreduced accrued benefit. Under this method,

the participant’s pension is not reduced to adjust for survivor benefits. The participant will receive an amount equal to

the straight-life annuity, and the spouse will receive a proportion of that amount, often 50 percent, should the participant die.

Lump-sum payment. The participant may opt for a full lump

sum, with no further benefits received from the plan. If a plan

provides for a partial lump-sum payment, the participant will

usually receive a reduced annuity as well.
84

Vesting

Vesting refers to the amount of time a participant must work

before earning a nonforfeitable right to a retirement benefit.

Once vested, the accrued benefit is retained even if the worker

leaves the employer before reaching retirement age.

Cliff vesting. No vesting occurs until an employee satisfies

the service requirements for 100-percent vesting—for example, after 5 years.

Graded vesting. An employee’s nonforfeitable percentage

of employer contributions increases over time, until reaching 100 percent.

Integration with Social Security

Defined benefit plans may “integrate” retirement benefits

with Social Security benefits. Under this approach, the

employer’s contribution to Social Security (FICA taxes) is

taken into account when plan benefits are computed. Integration may be accomplished by an offset or a step-rate

method.

Offset. Part of a participant’s Social Security benefit is subtracted from the benefit otherwise payable by the plan. The

maximum allowable offset is 83.3 percent of the Social Security benefit. The most common offset is 50 percent.

Step rate. Lower benefit rates are applied to earnings up to

the specified taxable Social Security wage base (that is, the

earnings subject to Social Security tax) in a given year.

Portability

Portability is a participant’s ability to maintain and transfer

accumulated pension benefits when changing jobs. Portability provisions in defined benefit plans generally cover

portability of assets, portability of credited service, or both.

Portability of assets. Participants can withdraw their accumulated pension benefits or transfer them to another retirement arrangement.

Portability of credited service. Participants are allowed to

count the years of service with a previous employer when

determining benefits from a later employer.

Disability retirement

Retirement resulting from a totally disabling injury or illness

prior to eligibility for early or normal retirement. Plans providing disability retirement benefits may have a service requirement of 10 years or more. Benefits may be immediate or

deferred.

Postretirement pension increases

Benefits received by retired participants may be adjusted to

account for loss of purchasing power due to inflation. Some

plans specify automatic cost-of-living increases, usually

based on changes in the Consumer Price Index. Some employers provide discretionary or ad hoc increases to adjust

retiree benefits for inflation.
85

Table 66. Defined benefit plans: Summary of plan provisions, all private workers, National Compensation Survey, 2002

Provisions All

employees

Occupational group Industry Establishment size

Union Nonunion White

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

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

Benefits based on earnings ... 56 61 47 64 47 62 51 58 32 68

Benefits with integrated

formula ................................. 34 41 21 40 31 36 36 34 10 46

Benefits subject to a

maximum ............................. 25 29 17 39 16 31 28 25 14 31

Early retirement benefits

available .............................. 83 79 88 96 86 82 82 84 88 81

Disability retirement benefits

available .............................. 76 72 80 89 83 72 78 75 85 72

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

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
86

Table 67. Defined benefit plans: Eligibility requirements, all private workers, National Compensation Survey, 2002

Characteristics

All

employees

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

All employees ............................. 100 100 100 100 100 100 100 100 100 100

Plan participation available to

new employees ......................... 94 95 92 94 88 97 94 94 90 95

With minimum age and/or

service requirements ............ 73 78 65 77 61 81 78 72 61 79

Service requirement only ... 22 22 22 26 24 21 23 22 23 21

Less than 1 year ............. 3 3 5 - 5 3 2 4 5 3

1 year ............................. 18 19 16 26 19 18 21 17 18 18

Greater than 1 year ........ 1 ( ) 1 ( ) 1 () - - 1 () - 1 ( ) 1 ( ) 1 ( )

Age 21 ................................ 46 51 39 47 31 56 52 45 33 53

No service requirement .. 4 4 3 4 5 3 2 4 1 5

Less than 1 year ............. 3 4 1 () 2 2 3 2 3 1 4

1 year ............................. 39 42 34 41 24 48 47 37 29 44

Greater than 1 year ........ 1 1 () 2 - 1 () 2 1 1 2 1 ( )

Other than age 21 .............. 5 6 5 5 7 4 3 6 5 5

No service requirement .. 2 2 1 - 3 1 - 2 1 () 3

Less than 1 year ............. 1 1 1 () - - 1 1 1 1 () 1

1 year ............................. 3 2 3 5 4 2 2 3 4 2

No minimum age or service

requirement .......................... 20 17 27 16 27 17 16 22 29 16

Plan participation not available

to new employees ..................... 1 1 1 () - 1 1 1 1 1 () 1

Not determinable ........................ 5 3 8 6 11 2 5 5 10 3

Average service requirement (in

months) ..................................... 11 11 12 12 11 12 12 11 12 11

1 Less than 0.5 percent.

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

totals. Where applicable, dash indicates no employees in this

category, or data do not meet publication criteria.
87

Table 68. Defined benefit plans: Plan sponsor, all private workers, National Compensation Survey, 2002

Characteristics

Percent

All

workers

Occupational group Industry Establishment

size

Union Nonunion White

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

 Single employer ................. 88 95 78 81 82 91 84 89 69 97

 Multi-employer group ......... 12 5 22 19 18 9 16 11 31 3

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

totals. Where applicable, dash indicates no employees in this

category, or data do not meet publication criteria.
88

Table 69. Defined benefit plans: Primary formula, all private industry workers, National

Compensation Survey, 2002

Characteristic

Traditional

Cash

balance

Pension

equity Total

Percent

of

terminal

earnings

Percent

of career

earnings

Dollar

amount

formula

Percent

of

contribution

formula

All employees ........................ 82 44 12 22 4 17 1

Worker characteristics:

White-collar occupations ....... 74 49 13 10 2 25 1

Blue-collar occupations ......... 92 36 10 41 5 7 1

Service occupations .............. 92 49 16 18 10 8 1 ( )

Full time ................................. 81 44 11 21 4 18 1

Part time ................................ 91 47 19 23 2 8 1 ( )

Union ..................................... 90 22 10 50 8 9 1 ( )

Nonunion ............................... 77 55 13 8 1 21 1

Average wage less than $15

per hour ............................... 86 50 13 17 5 13 1

Average wage $15 per hour

or higher .............................. 80 41 11 24 3 20 1

Establishment

characteristics:

Goods producing ................... 91 42 5 40 4 8 1

Service producing ................. 76 46 16 11 4 23 1

1-99 workers ......................... 83 42 8 22 10 17 1

100 workers or more ............. 81 45 13 21 2 18 1

Geographic areas:

Metropolitan areas ................ 81 44 11 22 4 18 1

Nonmetropolitan areas .......... 90 52 17 20 2 8 2

New England ......................... 79 54 10 14 1 21 -

Middle Atlantic ....................... 83 45 16 19 2 17 -

East North Central ................. 89 42 10 35 3 10 1

West North Central ................ 76 40 9 24 3 22 2

South Atlantic ........................ 77 53 7 15 2 23 1

West South Central ............... 78 45 14 18 1 20 2

Pacific .................................... 82 38 11 21 12 16 1

1 Less than 0.5 percent.

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates no employees in this category, or data do not

meet publication criteria.
89

Table 70. Defined benefit plans: Integration with Social Security, all private industry workers, National Compensation Survey, 2002

Characteristics All

workers

Occupational group Industry Establishment size

Union Nonunion White

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

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

 With integrated formula ....... 34 41 21 40 31 36 36 34 10 46

Step rate excess ............... 23 29 11 29 13 28 27 21 7 30

Social Security

breakpoint .................... 22 27 11 28 12 27 26 20 7 29

Dollar amount

breakpoint .................... 1 2 1 () 1 1 1 1 1 1 () 1

Offset by Social Security ... 11 13 10 12 17 8 9 12 3 15

 Without integrated formula .. 65 59 77 60 68 64 63 66 88 54

 Not covered under Social 

 Security .............................. 1 1 () 2 - 2 1 () 1 1 () 2 1 ( )

1 Less than 0.5 percent.

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

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
90

Table 71. Defined benefit plans: Terminal earnings formulas, all private industry workers, National Compensation Survey, 2002

Terminal earnings All

workers

Occupational group Industry Establishment size

Union Nonunion White

collar

Blue

collar

Goods

producing

Service

producing

1-99

workers

100

workers or

more

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

Flat percent per year of

service ................................. 42 41 42 47 39 40 42 42 41

Less than 1.00 percent ...... 3 4 2 2 4 - 4 1 3

1.00-1.24 percent .............. 6 4 11 9 4 9 5 5 6

1.25-1.49 percent .............. 1 2 1 () 1 1 - 2 2 1

1.50-1.74 percent .............. 19 18 22 24 17 9 22 19 19

1.75-1.99 percent .............. 2 2 1 1 () 3 5 1 4 2

2.00-2.24 percent .............. 7 7 3 5 8 13 5 11 6

2.25 percent or greater ...... 3 4 2 5 2 4 3 1 3

Percent per year varies ......... 51 54 47 46 54 55 50 35 54

By service .......................... 10 8 16 10 10 1 ( ) 13 10 10

By earnings ....................... 29 33 16 19 34 41 26 19 31

By age ............................... 2 3 2 7 - - 3 - 3

 By earnings and service .... 10 10 12 10 9 14 8 6 10

Other ..................................... 7 6 11 7 7 5 8 22 4

Average flat percent per year

of service ............................. 1.57 1.60 1.44 1.54 1.59 1.71 1.54 1.67 1.55

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
91

Table 72. Defined benefit plans: Definitions of terminal earnings , all private industry workers, National Compensation Survey,

2002

Terminal earnings definition All

workers

Occupational group Industry Establishment size

Union Nonunion White

collar

Blue

collar

Goods

producing

Service

producing

1-99

workers

100

workers or

more

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

One year ............................... 1 1 () 2 2 1 () 3 1 () 4 1 ( )

Three years ........................... 15 15 14 23 12 13 16 13 16

 Last 3 ................................ 1 ( ) 1 () 1 - 1 () - 1 () 1 1 ( )

High 3 ................................ 1 1 1 1 1 4 1 () 2 1

Of last 10 ....................... 1 1 1 1 1 4 - 2 1

Of career ....................... 1 () - 1 ( ) 1 () - - 1 () 1 -

High consecutive 3 ............ 14 14 12 22 10 9 16 9 15

Of last 10 ....................... 12 11 11 15 10 9 12 9 12

Of career ....................... 3 3 2 6 1 - 3 1 3

Of other time period ...... 1 ( ) 1 () - 1 () - - 1 () - 1 ( )

Five years .............................. 76 78 71 69 79 67 78 71 76

 Last 5 ................................ 3 4 2 4 2 2 3 1 3

High 5 ................................ 24 24 25 26 23 21 25 23 24

Of last 10 ....................... 22 22 24 26 20 21 22 21 22

Of career ....................... 2 3 1 - 3 - 3 2 2

High consecutive 5 ............ 49 50 44 39 54 45 50 47 49

Of last 10 ....................... 38 38 35 29 43 40 38 35 39

Of career ....................... 10 12 9 10 10 4 12 11 10

Of other time period ...... 1 () 1 - - 1 1 1 () - 1

Other period .......................... 8 6 13 7 9 17 6 12 7

1 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
92

Table 73. Defined benefit plans: Maximum benefit provisions, all private industry workers, National Compensation Survey, 2002

Maximum benefit All

workers

Occupational group Industry Establishment size

Union Nonunion White

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

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

Subject to maximum years 

 of credited service .............. 25 29 17 39 16 31 28 25 14 31

Less than 30 ...................... 4 5 4 4 1 ( ) 7 11 3 2 5

30 ...................................... 4 4 2 12 2 5 2 5 4 4

31 - 34 ............................... 1 ( ) 1 ( ) 1 () 2 - 1 () - 1 ( ) 1 ( ) 1 ( )

35 ...................................... 11 14 5 18 9 12 13 11 3 15

36 - 39 ............................... - - - - - - - - - -

40 ...................................... 5 6 4 2 4 5 2 6 3 6

Greater than 40 ................. 1 1 () 2 1 - 1 - 1 2 1 ( )

Not subject to maximum ........ 57 50 70 43 67 51 48 59 72 49

Not determinable ................... 18 21 13 18 18 18 24 16 14 20

Average credited service 

maximum ............................. 33.47 33.46 33.94 32.47 35.38 32.91 30.67 34.37 34.10 33.33

1 Less than 0.5 percent.

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

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
93

Table 74. Defined benefit plans: Age and service requirements for normal retirement,1 all private industry workers, National

Compensation Survey, 2002

Age or service requirement All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

No age requirement .............. 6752 6 6 9576

Less than 30 years of

service ............................ 4632 3 5 5435

30 years of service ........... 2 2 3 - 3 1 4141

Age 55 .................................. 4452 3 5 3463

Less than 30 years of

service ............................ 3 2 5 2 () 3 3 2 3 5 2

30 years of service ........... 1 2 2 () 2 - 2 1 1 2 () 1

Age 60 .................................. 8 6 10 10 6 8 13 6 11 6

No service requirement .... 1 1 1 - 1 2 1111

5 years of service ............. 5 4 6 6 4 5 11 3 5 4

10 years of service ........... 1 2 () 1 3 - 1 - 1 1 2 ( )

15 years of service ........... 2 ( ) 2 ( ) 2 () - - 2 () - 2 ( ) 2 ( ) 2 ( )

30 years of service ........... 2 ( ) 2 () 1 2 () 1 2 () 1 2 () 1 2 ( )

Age 62 .................................. 14 8 21 25 18 11 14 14 25 8

No service requirement .... 4185 8 1 4482

5 years of service ............. 4443 4 4 1554

10 years of service ........... 4 2 7 - 5 3 4472

15 years of service ........... 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 () 1 -

20 years of service ........... 2 ( ) 2 () 1 - 2 ( ) 2 () 1 2 () 1 2 ( )

25 years of service ........... 1 2 () - 8 - 1 3 2 () 2 2 ( )

30 years of service ........... 2 () - 2 () - 2 () - 1 - 2 () -

Age 65 .................................. 66 74 53 61 63 67 60 67 48 74

No service requirement .... 28 34 20 28 25 30 27 29 21 32

5 years of service ............. 28 33 20 32 21 32 23 30 16 34

10 years of service ........... 4 3 5 - 4 4 8253

Sum of age plus service3 ..... 2 2 1 - 2 1 - 2 1 2

Equals less than 80 .......... 2 () 1 - - - 1 - 1 - 1

Equals 80 ......................... 2 () - 1 - - 2 () - 2 () 1 -

Equals 81-89 .................... 1 1 2 () - 2 2 () - 1 2 () 1

Equals 90 ......................... 2 ( ) 2 () - - - 2 () - 2 ( ) 2 ( ) 2 ( )

1 Normal retirement is defined as the point at which the participant

could retire and immediately receive all accrued benefits by virtue of service

and earnings, without reduction due to age. If a plan had alternative age

and service requirements, the earliest age and associated service were

tabulated; if one alternative did not specify an age, it was the requirement

tabulated. Some age and service requirements are not shown separately. 2 Less than 0.5 percent.

3 In some plans, participants must also satisfy a minimum age or

service requirement.

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

 Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
94

Table 75. Defined benefit plans: Availability of lump sum benefits at retirement, all private industry workers, National

Compensation Survey, 2002

Option All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

With lump sum available .......... 48 58 35 32 37 54 58 45 34 55

Full lump sum available ...... 38 46 29 25 29 44 44 37 28 44

Partial lump sum with

reduced annuity ................ 7 9 5 4 6 8 11 6 5 8

Other .................................. 3313 2 3 3213

No lump sum available ............. 40 32 49 64 42 39 36 42 56 33

Not determinable ...................... 12 10 16 3 21 6 6 13 11 12

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

 Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
95

Table 76. Defined benefit plans: Age and service requirements for early retirement,1 all private industry workers, National

Compensation Survey, 2002

Age or service requirement All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

With early retirement available .... 83 79 88 96 86 82 82 84 88 81

No age requirement ................. 3342 4 3 1453

Less than 30 years of

service ................................ 2312 1 3 1212

30 years of service .............. 1 2 () 4 - 4 - - 2 3 2 ( )

Less than age 55 ..................... 11 9 14 8 14 9 16 10 19 7

5 years of service ................ 2 ( ) 2 ( ) 2 () - 2 ( ) 2 ( ) 2 ( ) 2 () - 2 ( )

10 years of service .............. 3321 4 2 2 () 3 3 2

15 years of service .............. 2 3 2 - 2 2 3222

20 years of service .............. 2147 4 1 6151

25 years of service .............. 2231 1 2 5151

Age 55 ..................................... 63 65 55 85 53 69 64 63 51 69

No service requirement3 ...... 1112 1 2 2112

5 years of service ................ 25 25 21 41 22 27 18 27 20 27

10 years of service .............. 27 29 22 29 25 27 29 26 21 30

15 years of service .............. 6 6 4 9 2 8 10 4 4 6

20 years of service .............. 3253 2 3 3333

25 years of service .............. 2 ( ) 2 () - - 2 () - - 2 () - 2 ( )

Age 60 ..................................... 1121 3 2 () - 2 2 1

5 years of service ................ 1 1 1 - 1 2 () - 1 1 1

15 years of service .............. 2 ( ) 2 () 1 - 1 - - 1 1 2 ( )

Age 62 ..................................... 2 () - 1 - 1 - - 2 () 1 -

5 years of service ................ 2 () - 1 - 1 - - 2 () 1 -

Sum of age plus service4 ......... 6 3 11 2 12 2 1794

Equals less than 80 ............. 3332 6 1 1414

Equals 80 ............................. 3 2 () 7 - 6 1 - 3 8 2 ( )

Early retirement not available ...... 12 16 7 1 6 15 17 10 9 13

Not determinable ......................... 5464 8 3 1636

1 Early retirement is defined as the point at which a worker could retire

and immediately receive accrued benefits based on service and earnings but

reduced for each year prior to normal retirement age. If a plan had

alternative age and service requirements, the earliest age and associated

service were tabulated; if one alternative did not specify an age, it was the

requirement tabulated. Many age and service breaks are not shown

separately. 2 Less than 0.5 percent.

3 Where no service requirement is specified for early retirement, the

service required for full vesting, usually 5 years, applies. 4 In some plans, participants must also satisfy a minimum age or service

requirement.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
96

Table 77. Traditional defined benefit plans: Age and service requirements for early retirement,1 all private industry workers,

National Compensation Survey, 2002

Age or service requirement All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

With early retirement available .... 96 97 93 98 92 98 97 96 95 96

No age requirement ................. 2 2 () 4 - 5 - 1 2 5 2 ( )

Less than 30 years of

service ................................ 2 ( ) 2 () 1 - 1 - 1 - 1 2 ( )

30 years of service .............. 2 2 () 4 - 4 - - 2 4 2 ( )

Less than age 55 ..................... 13 12 15 9 16 12 19 12 21 9

5 years of service ................ 2 () 1 - - 2 ( ) 2 ( ) 2 ( ) 2 () - 2 ( )

10 years of service .............. 3431 4 2 1433

15 years of service .............. 3 4 2 - 2 3 3323

20 years of service .............. 3147 4 2 8161

25 years of service .............. 2231 1 3 6151

Age 55 ..................................... 73 82 58 88 56 84 75 72 55 83

No service requirement3 ...... 2212 1 2 3112

5 years of service ................ 29 32 22 42 23 33 22 31 22 33

10 years of service .............. 30 36 23 30 27 33 34 29 22 35

15 years of service .............. 7 8 5 10 2 10 12 5 4 8

20 years of service .............. 3253 2 4 4343

25 years of service .............. 2 ( ) 2 () - - 2 () - - 2 () - 2 ( )

Age 60 ..................................... 2121 3 1- 231

5 years of service ................ 1 1 1 - 2 2 () - 1 1 1

15 years of service .............. 1 2 () 1 - 1 - - 1 1 2 ( )

Age 62 ..................................... 2 () - 1 - 1 - - 1 1 -

5 years of service ................ 2 () - 1 - 1 - - 1 1 -

Sum of age plus service4 ......... 7 4 11 2 14 2 1 9 10 5

Equals less than 80 ............. 4432 7 2 1415

Equals 80 ............................. 3 2 () 8 - 7 1 - 4 9 2 ( )

Early retirement not available ...... 2 2 2 - 3 2 3222

Not determinable ......................... 2142 5 2 () - 3 2 2

1 Early retirement is defined as the point at which a worker could retire

and immediately receive accrued benefits based on service and earnings but

reduced for each year prior to normal retirement age. If a plan had

alternative age and service requirements, the earliest age and associated

service were tabulated; if one alternative did not specify an age, it was the

requirement tabulated. Many age and service breaks are not shown

separately. 2 Less than 0.5 percent.

3 Where no service requirement is specified for early retirement, the

service required for full vesting, usually 5 years, applies. 4 In some plans, participants must also satisfy a minimum age or service

requirement.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
97

Table 78. Defined benefit plans: Early retirement reductions,1 all private industry workers, National

Compensation Survey, 2002

Characteristic Total

Uniform

percentage

of reduction2

Reduction

varies by

age3 and/or

service

Actuarial

reduction

Other

reduction4

Not

determinable

All workers ................................ 100 36 36 20 1 6

Worker characteristics

White collar ............................... 100 31 39 20 1 8

Blue collar ................................. 100 40 35 21 5 () 3

Service ..................................... 100 55 21 16 5 () 7

Union ........................................ 100 47 30 18 5 () 5

Nonunion .................................. 100 31 40 22 1 7

Industry

Goods producing ...................... 100 40 41 16 5 () 2

Service producing ..................... 100 34 33 23 1 8

Establishment size

1-99 workers ............................. 100 60 14 19 1 6

100 workers or more ................ 100 30 43 21 5 () 6

1 Reduction for each year prior to normal retirement. 2 In specific cases, uniform percentage reductions may

approximate actuarial reductions, such as early retirement at

age 55 with a reduction of 6 percent per year between age 55

and the plan’s normal retirement age of 62. 3 Rate of reduction is held constant within age brackets, but

differs among brackets, sometimes in approximation of an

actuarial table. For example, benefits may be reduced by 6

percent for each year between age 60 and the plan’s normal

retirement age, and by 3 percent for each year retirement

precedes age 60. Also includes some plans that reduce benefits

arithmetically for each year immediately below normal

retirement age and actuarially below a specified age, usually 55. 4 Reduced amount was not derived from normal retirement

formula. 5 Less than 0.5 percent.

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

equal totals. Where applicable, dash indicates no employees in

this category, or data do not meet publication criteria.
98

Table 79. Traditional defined benefit plans: Early retirement reductions,1 all private industry workers,

National Compensation Survey, 2002

Characteristic Total

Uniform

percentage

of reduction2

Reduction

varies by

age3 and/or

service

Actuarial

reduction

Other

reduction4

Not

determinable

All workers ................................ 100 39 37 18 1 5

Worker characteristics

White collar ............................... 100 34 41 17 1 7

Blue collar ................................. 100 40 35 21 5 () 3

Service ..................................... 100 58 20 15 5 () 6

Union ........................................ 100 48 30 17 5 () 5

Nonunion .................................. 100 33 41 19 1 6

Industry

Goods producing ...................... 100 40 42 16 5 () 2

Service producing ..................... 100 38 34 20 1 8

Establishment size

1-99 workers ............................. 100 61 14 18 1 6

100 workers or more ................ 100 32 44 18 5 () 5

1 Reduction for each year prior to normal retirement. 2 In specific cases, uniform percentage reductions may

approximate actuarial reductions, such as early retirement at

age 55 with a reduction of 6 percent per year between age 55

and the plan’s normal retirement age of 62. 3 Rate of reduction is held constant within age brackets, but

differs among brackets, sometimes in approximation of an

actuarial table. For example, benefits may be reduced by 6

percent for each year between age 60 and the plan’s normal

retirement age, and by 3 percent for each year retirement

precedes age 60. Also includes some plans that reduce

benefits arithmetically for each year immediately below normal

retirement age and actuarially below a specified age, usually 55. 4 Reduced amount was not derived from normal retirement

formula. 5 Less than 0.5 percent.

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

equal totals. Where applicable, dash indicates no employees in

this category, or data do not meet publication criteria.
99

Table 80. Defined benefit plans: Method of calculating disability retirement benefits, all private industry workers, National

Compensation Survey, 2002

Characteristic Total

With disability retirement available

Disability

coverage not

available

Not

determinable Total

Benefits begin

Immediate1 Deferred Not

determinable

All workers ................................ 100 76 40 33 3 13 11

Worker characteristics

White collar ............................... 100 72 31 38 3 14 13

Blue collar ................................. 100 80 53 23 3 12 9

Service ..................................... 100 89 46 41 3 5 6

Union ........................................ 100 85 58 25 2 11 4

Nonunion .................................. 100 72 31 37 3 14 15

Industry

Goods producing ...................... 100 83 53 27 3 5 11

Service producing ..................... 100 72 32 37 3 17 11

Establishment size

1-99 workers ............................. 100 78 37 37 4 17 4

100 workers or more ................ 100 75 41 32 3 11 13

1 Immediate disability pensions may be supplemented by additional

allowances until an employee reaches a specified age or becomes

eligible for Social Security.

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

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

or data do not meet publication criteria.
100

Table 81. Defined benefit plans: Postretirement survivor benefits, all private industry workers, National Compensation Survey, 2002

Survivor benefit All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

With postretirement survivor

benefits ........................................... 99 100 97 98 97 100 100 98 99 98

Joint and survivor annuity1 ........... 94 96 90 96 88 98 98 93 93 94

50 percent only ......................... 26 25 26 36 20 30 35 24 34 22

51-99 percent only .................... 1 2 () 4 - 4 - - 2 3 2 ( )

100 percent only ....................... 1122 2 1 2 () 2 1 1

Retiree choice of percentages .. 62 67 57 55 62 63 61 63 53 67

Not determinable ...................... 3414 2 () 4 3 3 2 3

Percent of accrued benefit ........... 5382 9 2 2664

No post retirement survivor

benefits ........................................... 1 2 () 3 2 3 2 () - 2 1 2

1 An annuity that provides income during the lifetime of both the retiree

and the surviving spouse. The accrued pension will usually be actuarially

reduced at retirement because of the longer time that payments are expected

to be made. Employees and their spouses are required to waive the spouse

annuity in writing if they desire a pension during the employee’s lifetime only or

another option offered by the plan, such as guarantee of payment for a

specified period. 2 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category, or data do not

meet publication criteria.
101

Table 82. Defined benefit plans: Preretirement survivor benefits, all private industry workers, National Compensation Survey, 2002

Survivor benefit All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

With preretirement survivor

benefits1 .......................................... 97 99 95 96 95 99 100 97 97 98

Equivalent to joint-and-survivor

annuity2 ....................................... 84 82 88 86 82 85 88 83 92 80

50 percent of employee’s

pension ................................... 66 62 71 76 63 68 67 66 77 62

Other percent of employee’s

pension3 .................................. 3244 4 3 6233

Employee choice of percent ..... 11 13 10 4 13 10 13 11 11 12

Percent of accrued benefit ........... 13 16 8 10 13 13 11 13 4 17

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

No preretirement survivor benefits ... 5 ( ) 5 ( ) 5 () - 5 () - - 5 () - 5 ( )

Not determinable .............................. 3154 5 1- 332

1 Survivor annuity is based upon the benefit the employee would have

received if retirement had occurred on the date of death. 2 The spouse annuity is computed as if the employee had retired with a

joint-and-survivor annuity. That is, the accrued pension is first reduced

because of the longer time that payments were expected to be made to both

the retiree and the surviving spouse. The spouse’s share is then the specified

percent of the reduced amount. 3 Other percentages range from 51 to 100 percent of retiree’s pension.

4 Includes annuity based on a dollar amount formula or percent of

earnings. 5 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category, or data do not

meet publication criteria.
102

Table 83. Defined benefit plans: Vesting requirements, all private industry workers, National Compensation Survey, 2002

Vesting requirement All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Immediate full vesting ............... 4343 5 3 1463

Cliff vesting1 ............................. 87 87 86 88 83 89 86 87 88 86

With full vesting:

 At any age ......................... 85 84 86 86 81 87 86 84 88 83

Less than 5 years ............. 1111 2 () 1 1 1 2 () 1

5 years .............................. 82 82 82 84 80 84 80 83 84 82

10 years ............................ 1 2 () 2 2 ( ) 2 () 1 3 2 () 2 2 ( )

Other .................................... 2 3 2 () 2 2 2 - 3 2 () 3

Graded vesting3 ....................... 6 7 5 9 5 7 12 5 5 7

Not determinable ...................... 3 3 5 2 () 7 1 1 4 1 4

1 Under a cliff vesting schedule, an employee is not entitled to any

benefits accrued under a pension plan until satisfying the requirement for

100-percent vesting. 2 Less than 0.5 percent. 3 Graduated vesting schedules give an employee rights to a gradually

increasing share of pension benefits determined by years of service,

eventually reaching 100-percent vesting status.

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

 Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
103

Table 84. Defined benefit plans: Provisions for early receipt of deferred vested benefits, all private industry workers, National

Compensation Survey, 2002

Early retirement provision All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Immediate ................................. 18 25 7 12 7 24 25 16 12 21

Early retirement ........................ 61 56 67 75 64 59 58 62 64 60

Reduction same as early

retirement ............................ 43 39 44 67 38 46 43 43 40 44

Reduction not the same as

early retirement ................... 14 12 20 6 22 10 14 14 20 11

Not determinable .................. 4442 4 4 1544

Normal retirement ..................... 11 12 11 8 12 11 8 12 12 11

Not determinable ...................... 10 7 15 5 17 6 10 10 12 9

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

 Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
104

Table 85. Traditional defined benefit plans: Provisions for early receipt of deferred vested benefits, all private industry workers,

National Compensation Survey, 2002

Early retirement provision All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Immediate ................................. 5 6 2 9 1 7 11 3 5 4

Early retirement ........................ 72 71 71 79 69 74 68 73 70 73

Reduction same as early

retirement ............................ 50 50 47 71 41 57 50 51 43 54

Reduction not the same as

early retirement ................... 17 16 21 7 24 12 16 17 22 14

Not determinable .................. 4542 4 4 2544

Normal retirement ..................... 12 14 11 8 12 13 9 13 12 12

Not determinable ...................... 11 9 16 3 18 6 12 11 12 10

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

 Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
105

Table 86. Cash balance plans: Percentage basis of employer contributions, all private industry

workers, National Compensation Survey, 2002

Basis of employer

contributions

All

workers

White-collar

occupations

Serviceproducing

industries

Establishments

with 100

workers or

more

Nonunion

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

Flat percent ........................... 18 18 10 22 20

Percent based on .................. 80 81 87 75 78

Social Security wage

base ................................. 9 11 11 7 11

Age .................................... 58 59 64 51 56

Service .............................. 53 52 57 52 48

Earnings ............................ 16 17 18 19 18

Not determinable ................... 2 2 2 3 1

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates

no employees in this category, or data do not meet

publication criteria.
106

Defined Contribution Plans

Defined contribution plans are retirement plans that

specify the level of employer contributions and place

those contributions into individual employee accounts.

Plan types

Savings and thrift plan. A retirement plan under which employees may contribute a predetermined portion of their (usually pretax) earnings to an individual account, all or part of

which the employer matches. Employers may match a fixed

percentage of employee contributions or a percentage that

varies by length of service, the amount of employee contribution, or other factors. Contributions are invested as directed by the employee or employer. Although usually designed as a long-term savings vehicle, savings and thrift

plans may allow preretirement withdrawals and loans.

Deferred profit-sharing plan. A retirement plan under which

a company credits a portion of company profits to employees’ accounts. Plans may set a fixed formula for sharing profits, but this is not a requirement. Most plans hold money in

employee accounts until retirement, disability, or death.

Money purchase pension plan. A retirement plan under which

fixed employer contributions, typically calculated as a percentage of employee earnings, are allocated to individual

employee accounts. Some plans may allow employee contributions, but employees are usually not required to make any

contributions. Employers also may make profit-sharing contributions to these plans at their discretion.

Employee stock ownership plan (ESOP). A retirement plan

under which the employer pays a designated amount, often

borrowed, into a fund, which then invests primarily in company stock. Any debt incurred in the purchase of the stock is

repaid by the company. Stock is then distributed to employees according to an allocation formula.

Simplified employee pensions (SEPs). Arrangements under

which an individual retirement account (IRA) is established

for each eligible employee. The employee is immediately

vested in employer contributions and generally directs the

investment of the money. These arrangements are sometimes

called SEP-IRAs.

Savings incentive match plan (SIMP). This type of plan can

be adopted by employers with 100 or fewer employees and

who do not offer any other retirement plans. The plan can

involve either IRAs established for each employee or part of

a 401(k) plan. Generally, employee and employer contributions are tax deductible. SIMPs are subject to simplified reporting requirements.

Investment choices

Company stock. Employees receive equity in the company

that sponsors the defined contribution plan.

Common stock fund. A professionally managed fund that

invests in the common stock of a variety of companies.

Fixed-interest securities. Bonds and other non-Federal

instruments that pay a fixed interest rate over a designated

period.

Diversified investments. Any professionally managed fund

that invests in more than one type of equity or debt instrument.

Money market fund. A professionally managed mutual fund

that buys high-quality, short-term notes, or certificates of

deposit. The fund sells shares to investors who receive

regular payments of interest.

Withdrawals, loans, and distributions

Withdrawals. Prior to normal payout (usually at retirement),

defined contribution plan participants may be allowed to

withdraw all or a portion of the employer funds from their

accounts. While most early withdrawals incur tax penalties,

hardship withdrawals do not. (See next paragraph.) To avoid

tax penalties, many plans have loan provisions that allow

employees to borrow from their accounts, with interest, for

a specified period.

Hardship withdrawals. Employees are usually not penalized

when money is withdrawn as a result of a hardship, often

defined as a death or an illness of a family member, education

expenses, sudden uninsured losses, or a need to prevent

eviction from one’s primary residence.

Loans. Defined contribution plans may allow participants to

borrow employer funds, with interest, from their accounts.

Loan amounts are often limited to a portion of the account

balance and usually have to be repaid within 5 years. Longer

payment periods may apply for home purchase or renovation

loans.

Transfers or rollovers. A rollover is a direct payment of plan

benefits from a defined contribution plan into an IRA or

another employer’s plan. In a direct rollover, the employee is

not taxed on the payment until it is withdrawn or distributed

at a later time.

Distribution. At retirement, defined contribution plans

normally allow for payout in the form of a lump sum, a lifetime
107

annuity, or installments over a specified period. While there

is no tax penalty if the distribution takes place after age 591⁄2,

the distribution is subject to ordinary income tax.

Lump-sum distribution. An immediate disbursement of employer and employee contributions and any investment earnings.

Annuity. An annuity is a form of distribution that provides

periodic payments over a specified period. Straight-life annuities provide payments, usually monthly, for the lifetime of

a retiree. Joint-and-survivor annuities provide payments to a

retiree and, upon the retiree’s death, payments to a surviving

spouse.

Installment payments. Employees receive payments from the

employer at fixed intervals—for example equal payments over

5 years.

Vesting

Vesting is the amount of time an individual must work before

earning a nonforfeitable right to a retirement benefit. Once

vested, the accrued benefit is retained even if the worker

leaves the employer before reaching retirement age. While,

under the Employee Retirement Income Security Act, defined contribution plans are subject to the same vesting rules

as defined benefit plans, vesting schedules vary. Vesting

schedules apply only to employer contributions; employee

contributions (including pretax contributions) are always 100

percent vested.

Immediate full vesting. Employees are immediately eligible

to receive 100 percent of employer contributions.

Graded vesting. An employee’s nonforfeitable percentage

of employer contributions increases over time, until vesting

reaches 100 percent.

Cliff vesting. No vesting occurs until an employee satisfies

the service requirements for 100-percent vesting—for

example, after 5 years.

Employer contribution methods

Specified matching percentage. A feature that is common

in savings and thrift plans, the employer matches a specified

percentage of employee contributions. The matching

percentage can vary by length of service, amount of

employee contribution, and other factors.

Fixed-percentage-of-profits formula. A feature that is

common in deferred profit-sharing plans, the employer

contributes a fixed percentage of total annual profits to the

plan. For example, no matter what the level of profits, 5

percent is contributed to the plan. Profits may include those

for the entire company or just those in a specific business

unit. In a variation of this formula, employers set aside a

“reserve amount” of profits (for example, $1,000,000) and

pay only a fixed percentage of those profits above this

amount into the employees’ defined contribution plan.

Percentage of employee earnings. A feature that is common

in money purchase plans, the employer contributes a fixed

percentage of each employee’s earnings to his or her

individual account.

Related plans and terms

Stock bonus plan. Contributions are placed in a trust fund

that invests in securities, including those of the employing

company. This type of plan is financed by the employer or

jointly by the employer and employee. Upon the employee’s

retirement or separation from the company, proceeds from

the trust fund are paid out in the form of company stock or

cash.

Internal Revenue Code (IRC) Section 401(k) plan. Plan

that allows employees to make pretax contributions into

deferred compensation plans through salary reduction

agreements. These arrangements are often associated with

savings and thrift and other defined contribution plans.
108

Table 87. Defined contribution plans: Participation in types of plans and 401(k) with employer contributions, all private

industry workers, National Compensation Survey, 2002

Characteristic Savings

and thrift

Deferred

profit

sharing

Employee

stock

ownership

Money

purchase

pension

Stock

bonus

Simplified

employee

pension

Savings

incentive

match

plan

Other

Salary

reduction

with

employer

contributions

All workers ............................. 70 26 5 8 1 ( ) 2 3 2 83

Occupational group:

White collar ........................... 71 24 5 9 1 ( ) 3 3 1 84

Blue collar ............................. 69 30 4 5 1 ( ) 1 5 3 80

Service .................................. 67 22 4 12 1 ( ) 3 3 1 86

Full time ................................. 70 26 4 8 1 ( ) 3 3 2 83

Part time ................................ 64 26 11 6 1 ( ) 1 ( ) 6 1 81

Union ..................................... 68 20 5 15 - 1 1 ( ) 1 82

Nonunion ............................... 70 26 5 8 1 ( ) 3 4 2 83

Average wage less than $15

per hour ............................... 68 25 7 7 1 ( ) 2 5 2 82

Average wage $15 per hour

or higher .............................. 71 26 3 9 1 ( ) 3 2 1 84

Industry:

Goods producing ................... 70 31 3 6 1 ( ) 3 2 2 82

Service producing ................. 70 24 6 9 1 ( ) 2 4 2 83

Establishment size:

1-99 workers ......................... 58 28 3 7 1 ( ) 6 8 2 74

100 workers or more ............. 78 24 6 9 1 ( ) 1 ( ) 1 ( ) 1 89

Geographic areas:

Metropolitan .......................... 70 26 5 8 1 ( ) 3 3 1 83

Nonmetropolitan .................... 69 22 6 10 1 ( ) 2 4 2 83

New England ......................... 59 33 2 12 - 2 1 7 78

Middle Atlantic ....................... 73 23 3 12 - 1 ( ) 1 - 87

East North Central ................. 61 30 3 10 1 3 9 1 79

West North Central ................ 71 31 5 8 - 2 4 1 86

South Atlantic ........................ 66 29 10 5 1 ( ) 5 3 1 79

East South Central ................ 71 28 2 3 - 8 1 1 85

West South Central ............... 75 20 8 9 - 2 2 2 82

Mountain ............................... 76 20 5 9 1 ( ) 1 ( ) 2 3 85

Pacific .................................... 82 15 4 6 1 ( ) 1 1 1 90

1 Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal

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

or data do not meet publication criteria.
109

Table 88. Savings and thrift plans: Summary of provisions, all private industry workers, National Compensation Survey, 2002

Provision All

workers

Occupational group Industry Establishment size

Union Nonunion White

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

Automatic enrollment

feature ................................. 5 4 6 5 7 4 4 5 4 5

Pretax contributions

allowed ................................ 97 97 98 93 98 97 96 98 97 97

Employee choice of

investments for employee

contributions ........................ 81 83 77 71 77 82 69 86 78 81

Immediate full vesting ........... 26 24 27 33 27 25 24 27 26 26

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

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
110

Table 89. Savings and thrift plans: Plan sponsor, all private industry workers, National

Compensation Survey, 2002

Characteristic Total Single employer Multi-employer

group

Employer

association

All Workers ............................ 100 96 4 1 ( )

Worker characteristics

White collar ........................... 100 95 5 1 ( )

Blue collar ............................. 100 97 3 -

Service .................................. 100 91 9 -

Union ..................................... 100 95 5 -

Nonunion ............................... 100 96 4 1 ( )

Industry

Goods producing ................... 100 99 1 -

Service producing ................. 100 94 6 1 ( )

Establishment size

1-99 workers ......................... 100 96 4 1 ( )

100 workers or more ............. 100 96 4 -

1 Less than 0.5 percent. NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates

no employees in this category, or data do not meet

publication criteria.
111

Table 90. Savings and thrift plans: Maximum employee contributions,1 all private industry workers, National Compensation Survey, 2002

Maximum employee

contribution

All

Workers

Occupational group Industry Establishment size

Union Nonunion

Average

wage

less

than $15

per hour

Average

wage

$15 per

hour or

higher

White

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Percentage of employee

earnings ....................... 74 73 76 77 80 71 72 74 76 74 75 73

Under 10 percent ....... 1115- 2 2 () 2 2 () 1 2 1

10 percent .................. 2 2 4 1 3 2 4 1 22 2 3

11 percent .................. 2 ( ) 2 ( ) 2 () - 2 ( ) 2 () - 2 () - 2 ( ) 2 ( ) 2 ( )

12 percent .................. 1 2 1 2 () 2 1 1 1 2 () 1 1 1

13-14 percent ............. 1 1 1 - 2 2 ( ) 2 () 1 2 () 1 2 () 1

15 percent .................. 32 30 34 43 36 30 42 27 18 33 34 31

16 percent .................. 9 9 9 5 11 8 6 10 26 7 6 10

17 percent .................. 2 2 3 - 1 2 2 2 2 () 2 2 2

18 percent .................. 4 5 3 4 2 5 3 5- 5 4 5

19 percent .................. 2 ( ) 2 ( ) 2 () - 2 ( ) 2 ( ) 2 ( ) 2 () - 2 ( ) 2 ( ) 2 ( )

20 percent .................. 13 13 12 11 13 12 7 15 13 13 15 11

Greater than 20

percent ..................... 8 8 8 8 9 8 6 9 16 7 9 7

Specified dollar

amount ......................... 2 1 1 4 1 2 1 2 12 2 1

Up to Internal Revenue

Code limit ..................... 23 25 22 18 17 26 26 22 23 23 21 25

Not Determinable ........... 1121 2 1 2 () 2 2 () 2 1 2

Average3 maximum

contribution (percent of

earnings) .......................... 16.8 16.9 16.7 16.1 16.8 16.8 16.2 17.1 17.9 16.7 17.0 16.6

1 Includes contributions that are not matched by the employer. If maximum

contributions vary, such as by length of service, the highest possible contribution

was tabulated.

2 Less than 0.5 percent. 3 The average is presented for all covered workers; averages exclude workers

without the plan provision.

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

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
112

Table 91. Savings and thrift plans: Method of determining employee pretax contribution, all private industry workers, National Compensation

Survey, 2002

Method of pretax

contributions

All

workers

Occupational group Industry Establishment size

Union Nonunion White

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

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

Pretax contributions

allowed ............................ 97 97 98 93 98 97 96 98 97 97

All contributions must be

pretax ........................... 60 58 61 76 61 60 66 56 44 61

At option of employee,

all contributions ............ 34 36 33 17 32 35 28 37 48 33

At option of employee,

up to specified

amount ......................... 1 1 1 1 ( ) 1 () 1 1 1 2 1

Initial contributions must

be pretax; additional

contributions cannot be

pretax ........................... 1 1 2 - 3 1 () 1 2 3 1

Pretax allowed, options

unknown ...................... 1 1 2 - 2 1 1 () 2 1 () 1

No pretax contributions

allowed ............................ 1 ( ) 1 () 1 1 () 1 1 () - 1 1 1 ( )

Not determinable ............... 2 2 1 7 1 3 4 2 1 3

1 Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal totals. Where

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
113

Table 92. Savings and thrift plans: Maximum pretax employee contributions,1 all private industry workers, National Compensation Survey, 

2002

Maximum pretax contribution All

workers

Occupational group Industry Establishment size

Union Nonunion White

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

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

Percent of employee

earnings ............................... 74 73 75 79 80 72 72 75 77 74

Under 10 percent .............. 2 1 1 6 - 2 2 () 2 1 2

10 percent ......................... 3 3 4 2 5 2 4 2 2 3

11 percent ......................... 2 ( ) 2 ( ) 2 () - 2 ( ) 2 () - 2 () - 2 ( )

12 percent ......................... 1 1 1 2 () 2 1 1 1 2 () 1

13 - 14 percent .................. 1 1 1 - 2 2 ( ) 2 () 1 2 () 1

15 percent ......................... 33 31 34 46 38 31 43 28 20 34

16 percent ......................... 9 9 9 5 11 8 7 10 26 7

17 percent ......................... 2 1 3 - 1 2 2 2 2 () 2

18 percent ......................... 4 4 3 4 2 () 5 3 4 - 4

Greater than 18 percent .... 19 20 19 15 20 19 12 23 27 19

Amount not determinable .. 1 1 1 1 1 1 2 () 1 2 () 1

Specified dollar amount ..... 2 1 1 4 1 2 1 2 1 2

Up to Internal Revenue

code limit ......................... 23 24 21 17 17 25 26 21 22 23

Option unknown ................ 1 1 2 - 2 1 2 () 2 2 () 1

Average3 maximum pretax

contribution .......................... 16.5 16.6 16.6 15.5 16.4 16.6 15.8 16.9 17.5 16.4

1 Includes contributions that are not matched by the employer. If maximum

contributions vary, such as by length of service, the highest possible contribution

was tabulated.

2 Less than 0.5 percent. 3 The average is presented for all covered workers; averages exclude workers

without the plan provision.

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

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
114

Table 93. Savings and thrift plans: Method of employer matching contributions, all private industry workers, National

Compensation Survey, 2002

Characteristic Total Specified

matching

percent1

Varies by

service

Varies by

amount of

contribution

Varies by

investment

choice

Varies by

profit level Other Notdeterminable

All workers ............................. 100 68 3 13 2 () 1 7 8

Occupational group

White collar ........................... 100 70 2 14 - 1 6 8

Blue collar ............................. 100 62 5 13 2 ( ) 2 11 8

Service .................................. 100 71 5 14 - 2 () 2 8

Industry

Goods producing ................... 100 70 4 11 2 () 2 5 8

Service producing ................. 100 67 3 14 - 1 8 8

Establishment size

1-99 workers ......................... 100 66 1 14 - 1 10 9

100 workers or more ............. 100 69 4 13 2 () 2 5 7

Union ..................................... 100 58 12 14 - 2 10 5

Nonunion ............................... 100 69 2 13 2 () 1 7 8

1 Plans where the employer matches a specified percent of

employee contributions. For example, the employer matches 50

percent of employee earnings up to 6 percent. 2 Less than 0.5 percent.

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

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

or data do not meet publication criteria.
115

Table 94. Savings and thrift plans: Employee contributions by employer specified matching percentage, all private industry

workers, National Compensation Survey, 2002

Specified matching percentage

and employee contribution

All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

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

Under 2 percent .................. 1 ( ) 1 () 1 1 () 1 1 ( ) 1 ( ) 1 () - 1 ( )

2 percent ............................ 5 4 4 11 4 5 3525

3 percent ............................ 10 8 13 16 10 10 7 11 11 10

4 percent ............................ 15 15 15 19 18 14 15 15 5 16

5 percent ............................ 16 17 16 7 14 17 11 18 11 16

6 percent ............................ 42 44 36 43 35 45 50 38 56 41

Greater than 6 percent ....... 11 10 13 3 17 8 11 10 16 10

1-49 percent employer match

 Total employee contribution ... 15 14 13 35 18 14 24 11 13 15

Under 2 percent .................. 1 ( ) 1 () - 1 () - 1 () - 1 () - 1 ( )

2 percent ............................ 1 1 () 2 1 () 2 1 ( ) 1 () 1 2 1

3 percent ............................ 1113 2 1 11 1 () 1

4 percent ............................ 3328 1 4 8113

5 percent ............................ 1111 3 1 1 () 2 - 1

6 percent ............................ 8 7 5 24 6 8 11 6 8 8

Greater than 6 percent ....... 2 2 2 - 5 1 () 4 1 () 2 2

50 percent employer match

 Total employee contribution ... 40 39 45 35 44 39 33 44 35 41

2 percent ............................ 1 1 1 5 1 2 - 2- 2

3 percent ............................ 4353 1 5 1 () 5 4 4

4 percent ............................ 7 6 7 10 10 5 6727

5 percent ............................ 3274 4 3 5324

6 percent ............................ 19 20 17 11 21 18 18 20 15 19

Greater than 6 percent ....... 6 6 6 2 6 6 5 7 11 6

51-99 percent employer match

 Total employee contribution ... 9 9 10 1 8 9 11 7 32 7

3 percent ............................ 1 () - 1 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 () 1 1 ( )

4 percent ............................ 1 1 - 1 () 1 1 1 1 - 1

5 percent ............................ 1 1 1 - - 2 2111

6 percent ............................ 6 6 7 - 5 6 7 5 29 4

Greater than 6 percent ....... 1 1 2 - 2 1 1111

100 percent employer match

 Total employee contribution ... 34 36 31 29 29 37 29 37 21 35

Under 2 percent .................. 1 ( ) 1 ( ) 1 () - 1 ( ) 1 ( ) 1 ( ) 1 () - 1 ( )

2 percent ............................ 3316 1 3 32 1 () 3

3 percent ............................ 5469 6 4 6455

4 percent ............................ 5561 7 4 1725

5 percent ............................ 10 12 7 1 6 12 4 12 8 10

6 percent ............................ 9 9 7 8 3 11 12 7 3 9

Greater than 6 percent ....... 2131 4 1 1 () 2 2 2

1 Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal totals.

 Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
116

Table 95. Savings and thrift plans: Investment choices for employee contributions, all private industry workers, National Compensation

Survey, 2002

Number of investment

choices

All

workers

Occupational group Industry Establishment size

Union Nonunion White

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

Total employee contributions .. 100 100 100 100 100 100 100 100 100 100

Employee permitted to

choose investments .......... 81 83 77 71 77 82 69 86 78 81

2 choices ......................... 1 ( ) 1 () - - - 1 ( ) 1 ( ) 1 () - 1 ( )

3 choices ......................... 1 1 1 1 () 1 1 1 1 1 1

4 choices ......................... 1 1 2 1 2 1 1 2 2 1

5 choices ......................... 4 3 4 6 2 4 3 4 5 4

6 choices ......................... 3 3 1 2 1 () 3 1 3 1 3

7 choices ......................... 5 4 8 2 7 4 3 6 5 5

8 choices ......................... 7 7 7 11 4 9 5 9 10 7

9 choices ......................... 4 4 6 4 6 4 4 4 8 4

10 choices ....................... 4 5 4 1 4 4 4 5 2 4

More than 10 choices ..... 26 27 24 24 25 26 17 30 29 25

Not determinable ................ 25 28 19 20 26 24 30 22 15 26

Employee not permitted to

choose investments .............. 3 2 3 9 1 3 5 1 1 () 3

Not determinable .................... 17 15 20 20 22 15 26 12 22 16

1 Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal totals. Where

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
117

Table 96. Savings and thrift plans: Investment types allowed for employee contributions, all private industry workers, National

Compensation Survey, 2002

Investment choice All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers

or more

Total with investment choice

allowed ........................................ 81 83 77 71 77 82 69 86 78 81

Company stock ......................... 25 26 23 21 25 25 15 30 42 23

Other common stock fund ......... 45 44 46 45 38 47 31 52 53 44

Fixed interest securities or

investments ............................. 40 41 40 40 32 44 29 46 54 39

Diversified investments ............. 47 46 50 48 45 48 37 53 59 46

Other1 ....................................... 22 23 23 7 16 24 19 23 26 21

Not determinable ....................... 3331 4 3 2453

No choice of investment ................ 3239 1 3 51 2 () 3

Not determinable ........................... 17 15 20 20 22 15 26 12 22 16

1 Includes purchase of life insurance, annuities, real estate, mortgage,

and deposits in credit unions or savings accounts. 2 Less than 0.5 percent.

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

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
118

Table 97. Savings and thrift plans: Eligibility requirements, all private industry workers, National Compensation Survey, 2002

Eligibility requirement All

workers

Occupational group Industry Establishment size

Union NonWhite union

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

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

With minimum age and/or

service requirement ................ 78 77 77 87 69 81 85 74 56 80

Service requirement only ...... 29 30 26 31 33 27 21 33 23 29

3 months or less ............... 9 9 11 1 13 7 6 10 6 9

4-5 months ....................... 1 ( ) 1 () - - - 1 ( ) 1 () - - 1 ( )

6 months ........................... 4 4 1 10 2 4 4 3 1 4

1 year ............................... 16 16 14 19 19 14 11 18 15 16

Greater than 1 year .......... 1 1 - 1 - 1 1 () 1 1 () 1

Age 21 .................................. 41 39 40 54 25 47 50 36 27 42

No service requirement .... 2231 1 () 3 1 3 1 () 2

1-11 months ..................... 9 9 7 24 4 11 7 10 8 9

1 year ............................... 29 29 30 28 20 32 42 22 17 30

Greater than 1 year .......... 1 ( ) 1 () - 1 () - 1 () - 1 ( ) 1 ( ) 1 ( )

Other than age 21 ................ 8 8 10 2 11 7 14 5 7 8

No service requirement .... 1 1 1 1 () - 2 2 1 1 1

1-11 months ..................... 5 5 6 1 () 8 3 8 3 3 5

1 year ............................... 2242 3 2 4 2 22

No minimun age or service

requirement ............................. 15 16 15 5 20 13 9 18 31 14

Not determinable ...................... 7 7 8 8 11 6 5 8 14 7

Average service requirement ... 9.1 9.2 9.0 9.3 8.5 9.4 9.5 8.9 9.1 9.1

1 Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal totals. 

Where applicable, dash indicates no employees in this category, or data do

not meet publication criteria.
119

Table 98. Savings and thrift plans: Automatic enrollment requirements, all private industry workers, National Compensation Survey, 2002

Automatic enrollment

requirement

All

workers

Occupational group Industry Establishment size

Union Nonunion White

collar

Blue

collar Service Goodsproducing

Service

producing

1-99

workers

100

workers or

more

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

Required method based on

percent ............................. 3 3 4 5 5 3 2 4 4 3

0.01-1.99 ....................... 1 ( ) 1 ( ) 1 () 2 - 1 - 1 2 1 ( )

2.00-2.99 ....................... 1 1 3 2 3 1 2 1 1 1

3.00-3.99 ....................... 1 1 1 1 2 1 - 2 1 1

4.00 or greater ............... 1 ( ) 1 () - 1 ( ) 1 ( ) 1 () - 1 () - 1 ( )

Based on other method ..... 1 ( ) 1 ( ) 1 () - - 1 () - 1 () - 1 ( )

Method not determinable .. 1 1 1 1 () 2 1 2 1 1 1

Not required ...................... 86 87 85 82 83 88 81 89 90 86

Not determinable ............... 9 9 9 14 10 9 15 6 5 10

Average percent .................... 2.5 2.8 2.2 1.9 2.5 2.4 2.0 2.6 1.6 2.6

1 Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal totals. Where

applicable, dash indicates no employees in this category, or data do not meet

publication criteria.
120

Table 99. Savings and thrift plans: Vesting provisions, all private industry workers,

National Compensation Survey, 2002

Characteristic Total Immediate

full vesting

Cliff

vesting1

Graded

vesting2

Not

determinable

All workers ............................. 100 26 19 47 8

Occupational group

White collar ........................... 100 24 21 48 7

Blue collar ............................. 100 27 17 45 10

Service .................................. 100 33 12 50 5

Industry

Goods producing ................... 100 27 17 45 11

Service producing ................. 100 25 20 48 7

Establishment size

1-99 workers ......................... 100 24 11 57 8

100 workers or more ............. 100 27 23 42 8

Union ..................................... 100 26 34 28 12

Nonunion ............................... 100 26 18 49 8

1 Under cliff vesting, an employee is not entitled

to any benefits until satisfying requirements for 100

percent vesting. 2 Under graduated vesting, an employee’s rights

to benefits increase with length of service, eventually

reaching 100 percent.

NOTE: Because of rounding, sums of individual

items may not equal totals. Where applicable, dash

indicates no employees in this category, or data do

not meet publication criteria.
121

Table 100. Deferred profit sharing plans: Employer contribution, all private industry

workers, National Compensation Survey, 2002

Characteristic Total Based on

stated formula

No

predetermined

formula

Not

determinable

All workers ............................. 100 55 39 6

Occupational group

White collar ........................... 100 51 42 8

Blue collar ............................. 100 63 33 4

Nonunion ............................... 100 53 41 7

Industry

Goods producing ................... 100 65 35 -

Service producing ................. 100 50 41 9

Establishment size

1-99 workers ......................... 100 56 39 5

100 workers or more ............. 100 53 39 7

NOTE: Because of rounding, sums of individual

items may not equal totals. Where applicable,

dash indicates no employees in this category, or

data do not meet publication criteria.
122

Table 101. Deferred profit sharing plans: Allocation of employer contributions to individual employee accounts, all private industry

workers, National Compensation Survey, 2002

Characteristic Total

Shares

distributed

equally

Proportional

to earnings

Proportional to

employee

contributions

Based on

earnings and

service

Based on

earnings and

unit

performance

Other

allocation

formula

Not

determinable

All workers ............................. 100 2 53 9 6 1 ( ) 18 12

Occupational group

White collar ........................... 100 1 48 10 7 1 ( ) 21 13

Blue collar ............................. 100 2 63 5 6 1 ( ) 15 9

Nonunion ............................... 100 2 53 9 6 1 ( ) 17 13

Industry

Goods producing ................... 100 3 58 3 9 - 14 13

Service producing ................. 100 1 50 13 4 1 ( ) 20 11

Establishment size

1-99 workers ......................... 100 1 61 11 6 1 ( ) 11 10

100 workers or more ............. 100 2 46 8 6 1 ( ) 24 14

1 Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal totals. 

Where applicable, dash indicates no employees in this category, or data do not

meet publication criteria.
123

Table 102. Deferred profit sharing plans: Eligibility requirements, all private industry workers, National Compensation

Survey, 2002

Eligibility requirement All

workers

Occupational group Industry Establishment size

Nonunion

White collar Blue collar Goods

producing

Service

producing

1-99

workers

100

workers or

more

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

With minimum age and/or

service requirement ................ 83 85 77 81 84 87 79 85

Service requirement only ...... 28 30 22 31 27 24 31 29

3 months or less ............... 6 7 5 12 3 7 5 6

6 months ........................... 3 3 2 2 4 2 5 3

1 year ............................... 17 17 14 15 18 14 19 17

Greater than 1 year .......... 2 3 2 1 3 2 3 2

Age 21 .................................. 40 40 38 28 46 54 28 42

No service requirement .... 1 ( ) 1 () - 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( )

1-11 months ..................... 11 15 6 6 14 18 6 12

1 year ............................... 27 23 31 19 31 33 22 29

Greater than 1 year .......... 1 1 1 3 - 2 - 1

Other than age 21 ................ 15 15 16 22 11 9 20 14

1-11 months ..................... 5 4 8 14 1 () 2 7 4

1 year ............................... 10 11 9 8 11 6 13 10

No minimum age or service

requirement ............................. 11 9 16 16 8 8 13 9

Not determinable ...................... 6 6 7 3 8 5 7 6

Average service requirement ... 10.2 9.8 10.5 9.3 10.6 10.1 10.3 10.2

1 Less than 0.5 percent. NOTE: Because of rounding, sums of individual items may not equal

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

or data do not meet publication criteria.
124

Table 103. Money purchase pension plans: Employer contributions, all private industry workers,

National Compensation Survey, 2002

Employer contribution All

workers

Occupational

group Industry Establishment size

Nonunion

White collar Service

producing

1-99

workers

100

workers or

more

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

Fixed percent of earnings .. 52 56 53 43 56 56

Less than 3 percent ....... 15 17 13 2 22 16

3.00 - 5.99 ..................... 24 26 26 28 22 26

6.00 - 8.99 ..................... 6 5 7 6 6 6

9.00 - 11.99 ................... 4 5 5 1 5 4

12.00 or greater ............. 3 3 4 6 1 4

Percent varies by

earnings ........................... 9 12 11 23 1 11

Dollar amount per hour

worked ............................. 9 1 1 12 7 3

Other ................................. 30 30 33 22 35 30

Not determinable ............... 1 1 1 - 1 1

NOTE: Because of rounding, sums of individual items

may not equal totals. Where applicable, dash indicates

no employees in this category, or data do not meet

publication criteria.
125

The National Compensation Survey (NCS) benefit incidence and provisions series provides information onthe availability and detailed provisions of employee

benefit plans. The portion of the NCS sample from which

estimates on employee benefits are made covers all private

sector establishments in the United States, with the exception of farms and private households.

Scope of survey

The 2003 NCS benefits incidence survey obtained data from

2,924 private industry establishments representing nearly

103 million workers; of this number, nearly 79 million were

full-time workers, and the remainder—slightly more than 24

million—were part-time workers. The NCS uses the

establishment’s definition of full- and part-time status. For

purposes of this survey, an establishment is an economic

unit that produces goods or services, a central administrative office, or an auxiliary unit providing support services to

a company. For private industries, the establishment is usually at a single physical location.

Occupational groups

Narrowly defined occupations selected for study are classified into one of the following three broad occupational

groups:

White-collar occupations. Include professional, technical,

executive, administrative, managerial, and related occupations; clerical and administrative support; and sales occupations.

Blue-collar occupations. Include precision production, craft,

and repair occupations; machine operators and inspectors;

transportation and moving occupations; and handlers, equipment cleaners, helpers, and laborers.

Service occupations. Include service occupations, except

private households.

Excluded from the survey are self-employed persons, proprietors, major stockholders, members of a corporate board

who are not otherwise officers of the corporation, volunteers, unpaid workers, family members who are paid token

wages, the permanently disabled, partners in unincorporated

firms, and U.S. citizens working overseas.

Benefit areas

BLS requests that, for sampled occupations, establishments

provide data on work schedules and plan details in each of

the following benefit areas: Paid holidays, paid vacations,

short- and long-term disability benefits, medical, dental, and

vision care, prescription drugs, life insurance, defined benefit pensions, and defined contribution plans. Due to technical difficulties, data on some of the benefit areas were not

published in this bulletin. Efforts are underway to correct

these problems for future publications.

Data also are collected on the incidence of certain other

benefits, such as severance pay, supplemental unemployment benefits, travel accident insurance, nonproduction cash

bonuses, childcare, adoption assistance, long-term-care insurance, flexible workplaces, wellness programs, fitness centers, job-related and non-job-related educational assistance,

and subsidized commuting.

Sample design and data collection

The sample for this survey was selected on the basis of a

three-stage design. The first stage involved the selection of

areas. The NCS sample consists of 154 metropolitan areas

and nonmetropolitan areas that represent the Nation’s 326

metropolitan statistical areas (as defined by the Office of

Management and Budget) and the remaining portions of the

50 States. Metropolitan areas are either Metropolitan Statistical Areas (MSAs) or Consolidated Metropolitan Statistical

Areas (CMSAs), as defined by the Office of Management

and Budget in 1994. Nonmetropolitan areas are counties that

do not fit the metropolitan area definitions.

In the second stage, the sample of establishments was

drawn from a sampling frame composed of State Unemployment Insurance reports within sampled areas. Each sampling

frame is stratified by sampling cell. A sampling cell consists

of an area or a group of areas by industry. Each sampled

establishment was selected within a sampling cell with a probability proportional to its employment. This technique allows larger establishments to have a greater chance of being

selected for the sample. Weights were applied to each establishment when the data were tabulated, so that each establishment represents units in the economy similar to those

not selected for collection.

The third stage of sample selection was a probability

sample of occupations within a sampled establishment. Identifying the occupations for which data were to be collected

involved a four-step process:

1. Probability proportional to size selection of establishment jobs.

2. Classification of jobs into occupations based on the

Census of Population system.

Appendix A. Technical Note
126

3. Characterization of jobs as full time versus part time,

union versus nonunion, and time versus incentive.

4. Determination of the level of work of each job.

BLS field economists visit or contact sampled establishments by telephone to collect data for the survey. To reduce

the reporting burden, field economists ask respondents to

provide Summary Plan Provision documents for defined benefit pensions, defined contribution plans, and medical, prescription drug, dental, and vision care plans. The Bureau

analyzes these plans in Washington to garner the required

data on plan provisions.

Data calculation

Tabulations in this bulletin show the percentage of all employees who receive specified benefits, such as paid holidays or medical care, as well as information on the provisions of many of these benefits. To present provision data,

tabulations generally indicate the percentage of all employees receiving a benefit (participants) who are covered by

specified features. For example, a tabulation may show the

percentage of workers with medical care benefits who participate in a prepaid plan.

The majority of tables in the bulletin exhibit the percentage of all employees with access to, or participating in, a

particular benefit plan or the percentage covered by a specific provision. In addition, average benefit provisions, such

as the average annual deductible in health care plans, are

presented. In some cases, tabulations indicate both the percentage of employees with a given provision and the average value of that provision. For example, tabulations indicate the percentage of employees in indemnity plans who

must pay selected deductibles (such as $200, $250, and $300

per year), as well as the average deductible. All tabulations

of averages include only those employees actually covered

by the provision being averaged.

Survey estimation methods

The survey design uses an estimator that assigns the inverse of each sample unit’s probability of selection as a weight

to the unit’s data at each of the stages of sample selection.

Three weight-adjustment factors are applied to the data. The

first factor accounts for establishment nonresponse and the

second factor for occupational nonresponse. The third,

poststratification, factor is introduced to adjust the estimated

employment totals to actual counts of employment by industry for the survey reference date.

The general form of the estimator for a population total Y

is

where

n’= number of responding sample establishments;

oi = occupation sample size selected from the ith establishment;

Yij = value for the characteristics of the jth selected occupation in the ith selected establishment;

pi = probability of including the ith establishment in the

sample;

pij = probability of including the jth occupation in the

sample of occupations from the ith establishment;

f 1i= weight adjustment factor for nonresponse for the

ith establishment;

f

ij = weight adjustment factor for nonresponse for the

jth occupation in the ith establishment;

f 2i= weight adjustment factor for poststratification totals

for the ith establishment.

Appropriate employment or establishment totals are

used to calculate the proportion, mean, or percentage

that is desired.

Reliability of estimates

The statistics in this bulletin are estimates derived from a

sample of usable occupation quotes selected from the responding establishments. They are not tabulations based

on data from all employees in private establishments within

the scope of the survey. Consequently, the data are subject

to sampling and nonsampling errors.

Sampling errors are the differences that can arise between

results derived from a sample and those computed from observations of all units in the population being studied. When

probability techniques are used to select a sample, statistical

measures called “standard errors” can be calculated to measure possible sampling errors. No estimates of sampling error were calculated for this survey. Therefore, none of the

comparisons presented in this bulletin could be verified by a

statistical test.

Nonsampling errors also affect survey results. They can be

attributed to many sources: Inability to obtain information

about all establishments in the sample; definitional difficulties; differences in the interpretation of questions; inability

or unwillingness of respondents to provide correct information; mistakes in recording or coding data; and other errors

of collection, response, processing, coverage, and estimation for missing data.

Computer edits of the data and professional review of

both individual and summarized data reduce the nonsampling

errors in recording, coding, and processing the data. However, to the extent that the characteristics of nonrespondents

are not the same as those of respondents, nonsampling errors are introduced in the development of estimates.

∑ ∑=

′

=

= i i o

j ij

ij ij

n

i i

i i

p

Y f

p

f f Y

1 1

, 2 1
127

Table A-1. Number of establishments and occupational observations studied and estimated

number of workers within the scope of the survey, all private industry workers, National

Compensation Survey, 2002-2003

Characteristic

Number of

establishments

studied

Number of

occupational

observations

Estimated number

of workers

All workers ............................................. 2,924 17,117 102,836,573

Worker characteristics

White-collar occupations ....................... – 10,101 52,737,329

Blue-collar occupations ......................... – 4,814 30,215,167

Service occupations .............................. – 2,202 19,884,077

Full time ................................................. – 14,319 78,689,823

Part time ................................................ – 2,798 24,146,750

Union ..................................................... – 2,214 9,132,981

Nonion ................................................... – 14,903 93,703,591

Average wage less than $15 per hour ... – 8,800 62,938,185

Average wage $15 per hour or more ..... – 8,317 39,898,388

Establishment characteristics

Goods-producing industries .................. 695 4,227 23,975,219

Service-producing industries ................. 2,229 12,890 78,861,353

1-99 workers .......................................... 1,233 5,176 55,252,516

100 workers or more ............................. 1,691 11,941 47,584,057

Metropolitan areas ................................. 2,353 13,981 88,353,703

Nonmetropolitan areas .......................... 571 3,136 14,482,869

New England ......................................... 186 1,080 6,591,779

Middle Atlantic ....................................... 389 2,289 14,066,929

East North Central ................................. 528 3,197 19,123,391

West North Central ................................ 263 1,472 7,854,250

South Atlantic ........................................ 520 3,050 17,956,805

East South Central ................................ 159 938 5,421,309

West South Central ............................... 320 1,881 11,289,998

Mountain ................................................ 203 1,172 6,075,889

Pacific .................................................... 356 2,038 14,456,221

NOTE: Because of rounding, sums of individual items may not equal totals. Dashes indicate data not available

since establishment counts are not estimated for worker characteristics.
128

Data for the 2002–03 National Compensation Survey benefits series were collected from December2001 to April 2003, reflecting an average reference

period of 2002. Respondents were asked for the most current

information as of the time of data collection contact.

The following summary is a composite of establishment

responses to the survey:

Establishments Number

In sample 4,480

Out of business or out of scope 413

Unable or unwilling to respond 1,143

Responding fully or partially 2,924

The responding establishments yielded 17,117 occupational

observations (quotes) for which data were collected.

For establishments that are unable or unwilling to provide the minimum amount of usable data, a weight adjustment is made on the basis of the sample unit employment.

This technique assumes that the mean value of the

nonrespondents equals the mean value of the respondents

at some “detailed” cell level. These cells are defined in a

manner that groups together establishments that are homogeneous with respect to the characteristics of interest. In

most cases, the cells are the same as those used for sample

selection.

For establishments that are unable or unwilling to provide data for a specific occupation, a similar cell-level approach is used to make adjustments to the sampled occupation weights in responding establishments. The characteristics of interest include the major occupation group of the

unreported occupations.

Imputation procedures were used for missing items, such

as participation values, plan provisions, and employee and

employer medical premium values, within responding occupational observations (quotes).

Four procedures were used to adjust for missing data

from partial and full refusals. Each of these participant values is imputed by selecting a similar plan from another establishment.

First, the percentage of plan participants was imputed in

cases where that number was not reported. Each of these

participant values was imputed by selecting a similar plan

from another occupational observation with usable participation data.

Second, when not available, plan provisions were imputed

by selecting a usable plan from another occupational observation with similar plan characteristics. Provisions from the

selected plan were then used to represent the missing data.

The following tabulation gives the imputation percentages

for the various benefit areas:

Benefit area Imputation percentage

Defined benefit 54

Defined contribution 60

Medical care 53

Dental benefits 55

Vision benefits 56

Prescription drugs 52

Finally, imputations for employee and employer medical

premiums were made in cases where one or both of the premium values were not reported for a particular plan. One or

both of the premiums were imputed by selecting usable premium values from another occupational observation with

similar plan characteristics.

Data on some benefit areas, such as paid sick leave and

flexible benefits, did not meet publication standards. These

data are expected to be published in the future.

Appendix B. Survey Response