TEXT
Table 1.  Percent of full-time employees participating in selected employee benefit
Table 1.  Percent of full-time employees participating in selected employee benefit
Table 2.  Medical care benefits:  Percent of participants by fee arrangement,
Table 3.  Medical care benefits:  Percent of participants by required
Table 4.  Percent of full-time and part-time(1)  employees participating in selected employee benefit
Table 4.  Percent of full-time and part-time(1)  employees participating in selected employee benefit

 
 
 
 
 
 
 
Technical contact:  USDL:  95-368 EBS Staff (202)606-6222
 
Media contact:  FOR RELEASE:  10 A.M. (EST) Kathyrn Hoyle (202)606-5902
Thursday, September 14, 1995
 
 
BLS REPORTS ON EMPLOYEE BENEFITS IN STATE AND LOCAL GOVERNMENTS, 1994
 
        The number of employees with medical care benefits in state and
local governments who choose non-traditional health care plans continues to
increase, according to a 1994 survey conducted by the U.S. Department of
Labor's Bureau of Labor Statistics.  About nine-tenths of full-time
employees participated in employer-provided medical care plans in both 1994
and 1992, but enrollments continued to shift among the major types of
plans.  Non-traditional health care plans, such as health maintenance
organizations (HMOs) and preferred provider organizations (PPOs), covered
62 percent of the full-time employees with employer-funded medical care
benefits in 1994, compared with 57 percent in 1992.  Additionally,
employers required a greater proportion of covered employees to contribute
toward the cost of their coverage in 1994 than in 1992.
 
        The 1994 Employee Benefits Survey provides information on the
incidence and characteristics of benefit plans for an estimated 15 million
employees in state and local governments.  Of that total, nearly 13 million
employees were full time and about 2 million were part time.
 
BENEFITS FOR FULL-TIME EMPLOYEES IN STATE AND LOCAL GOVERNMENTS
 
                As in 1992, the last time BLS conducted this survey, a
large majority of full-time workers in state and local governments were
provided paid sick leave, retirement plans, and life and health insurance
in 1994.  Paid holidays and vacations also were widely available to
full-time government workers, except teachers.  With a few notable
exceptions, the incidence of these and other surveyed benefits remained
stable (tables 1 and 4).  The 1994 survey provides information on recent
trends for a variety of employee benefits, that are summarized below.
 
Medical Care Benefits
 
        Fee-for-service plans, the traditional way of providing medical
care benefits, covered 38 percent of medical care participants in 1994,
compared with 43 percent in 1992 and 61 percent in 1990 (table 2).  Under
such plans, individuals receive medical care from doctors and facilities
that they choose; the plan reimburses either the provider or the individual
for some or all of the cost.  Seven-tenths of the workers covered by
fee-for-service plans were required to seek approval from their plan before
certain types of health care services were received.  Such approval,
broadly termed managed care, typically includes requirements for plan
certification prior to hospitalization and for mandatory second surgical
opinions.  When such requirements are not met, the plan reduces or
eliminates payments.  The non-traditional types of plans described below
include managed care features by definition.
 
        Preferred provider organizations (PPOs) covered 30 percent of
full-time workers with medical care benefits, compared with 29 percent in
1992 and 17 percent in 1990.  PPOs are a type of fee-for-service plan that
offers individuals a higher benefit for services provided by a network of
selected health care providers (such as hospitals and physicians), although
participants may choose any provider.  For example, a plan might pay 90
percent of charges for hospital services when received from a preferred
provider and 80 percent for the same services when received outside the
network.  Additionally, 34 percent of PPO participants were subject to a
lower plan deductible if they used a designated provider.  For example,
enrollees in PPOs may be subject to a yearly deductible of $100; however,
if they go outside of the network, the deductible might be $200.
 
        Health maintenance organizations (HMOs), which covered 30 percent
of full-time workers with medical care benefits in 1994, compared with 27
percent in 1992 and 22 percent in 1990, provide prepaid services from a
selected group of doctors and facilities.  Coverage is often in full, or is
provided at a nominal fee, for example, $10 or less for an office visit.
Care provided outside of the HMO may not be reimbursed, or may be
reimbursed at a reduced rate, for the services rendered.
 
        One additional type of health care plan, exclusive provider
organizations, covered 2 percent of medical care participants in 1994.
These plans have arrangements with specific providers to offer medical
services at lower prices similar to PPOs.  Medical care received from other
providers is not paid for by the plan.
 
        In 1994, about one-half of the full-time employees with medical
coverage were required to contribute toward individual coverage; in cases
where a set contribution was required, monthly premiums averaged $30, about
the same as in 1992 (table 3).  Seven-tenths of covered workers had to pay
part of the cost for family coverage, averaging $150 per month or about $12
more per month than in 1992.  Although the proportion of employees required
to contribute to individual medical care coverage continues to grow, the
rate of this growth has diminished since the 1990 survey.  Additionally,
average employee premium costs for individual coverage have nearly
stabilized, and the rate of increase of premiums for family coverage has
slowed.
 
Retirement plans
        Nine-tenths of the full-time workers in state and local governments
had retirement coverage through defined benefit pension plans.  These plans
specify a formula for determining an employee's annuity.  Nearly two-thirds
of the employees covered by pension plans were eligible for normal
(unreduced) benefits at age 55 or earlier upon meeting a service
requirement, usually 30 years.
 
        Benefits provided usually were based on a terminal earnings
formula, which provides a pension equal to a percentage of the employee's
annual pay averaged over the years with the highest income.  Pension
benefits averaged 1.9 percent of earnings times years of service.  Nearly
three out of four participants were required to help finance their pension
plans, commonly contributing 5 to 8 percent of earnings.
 
        About 1 in 10 full-time employees participated in one or more
defined contribution plans in 1994.  These plans, which usually specify the
employer's contribution, but cannot predetermine the employee's actual
amount of benefits, include savings and thrift plans and money purchase
pension plans.  Most defined contribution plans required employee
contributions.  About three-fourths of defined contribution participants
were in plans with salary reduction features, such as 401(k) and 403(b)
plans.  In such arrangements, income taxes on employee contributions to a
retirement plan are deferred until the contributions are withdrawn.
 
Family-Related Benefits
        The Employee Benefits Survey measured the incidence of formal
family leave for the first time in 1994.  Previously, the survey estimated
parental leave, generally in the form of maternity and paternity leave.
The passage of the Family and Medical Leave Act (FMLA) of 1993 created a
federal mandate for employers to provide employees with up to 12 weeks of
unpaid leave for the birth or adoption of a child and for family illness
(employee, spouse, child, or parent).  Generally, these provisions apply to
employees with 1 year of service who work 1,250 hours during the year and
are employed by establishments with 50 or more workers.  There is no
requirement to provide paid leave.  Virtually all full-time state and local
government employees were eligible for unpaid family leave in 1994.  About
one-third of covered employees were eligible for more than the mandated 12
weeks of benefits; the maximum overall benefit averaged about 6 months.
 
             In contrast, the 1992 survey, conducted prior to the FMLA,
showed that three-fifths of full-time employees in governments had unpaid
maternity leave available, with three-fourths of those also eligible to use
the leave for paternity purposes; the maximum maternity leave averaged
about 10 months.  Several states continue to require employers to provide
benefits that are considerably more generous than the FMLA requirement.
Paid family leave continued to be rare in 1994.
 
        Nine percent of full-time employees in state and local governments
were eligible for child care benefits subsidized by their employer, about
the same as in 1992.  This benefit includes both on-site or near-site child
care facilities and reimbursement of employee child care expenses.  A more
prevalent means of assisting employees with child care expenses was through
increasingly common reimbursement accounts (also known as Flexible Spending
Accounts, or FSAs) which characteristically cover dependent care, health
care premiums, or out-of-pocket health care expenses.  Nearly two-thirds of
full-time employees were eligible for such accounts, up from one-half in
1992.  Most often, these accounts are funded solely by employee pretax
dollars.
 
BENEFITS FOR PART-TIME WORKERS IN STATE AND LOCAL GOVERNMENTS
 
           Paid sick leave was available to about two-fifths of the
part-time state and local government workers, three-tenths participated in
a health care plan, and three-fifths were in a retirement plan (table 4).
Because of the limited incidence of benefits among part-time workers, plan
provisions could not be examined to the same extent as for full-time
workers.
 
        Two-tenths of part-time employees in state and local governments in
1994 received paid vacations and three-tenths received paid holidays.  When
these benefits were provided, they typically were similar to those of
full-time workers, but prorated based on the work schedule of the part-time
employee.
 
TECHNICAL NOTE
 
        The Employee Benefits Survey (EBS) data are collected jointly with
the BLS Employment Cost Index (ECI).  The ECI provides quarterly data on
the changes in employer's cost of wages, salaries, and employee benefits.
In addition, data on the cost per hour worked of compensation components
are published annually from the ECI.
 
        The sample of establishments from which EBS and ECI data are
collected is updated periodically.  Each year, new sample establishments in
selected industries are introduced into the survey, while older sample
establishments are removed from the survey.  In addition, a group of newly
opened establishments in all industries is included in the EBS sample to
ensure representation of the current mix of establishments.  Benchmark
adjustments were applied to the data to estimate current employment in each
industry.  More details on sampling and estimation procedures will appear
in the Technical Note to Employee Benefits in State and Local Governments,
1994, which will be published this fall.
 
        Benefits data are available for all covered employees combined and
separately for three broad occupational groups:  White-collar employees,
except teachers; teachers; and blue-collar and service employees.  Data
also are available for full-time and part-time employees.  Workers were
classified as either full time or part time in accordance with practices of
surveyed establishments.  The occupational groups are different from EBS
government surveys prior to 1992.
 
        The Employee Benefits Survey is collected on a 2-year cycle.
During 1994, data were collected on benefits provided to workers in state
and local governments and separately for workers in small private
establishments (fewer than 100 workers).  The survey of medium and large
private establishments (100 workers or more) is being conducted again in
1995.  Availability of Survey Results
        Detailed tabulations of the benefit provisions, in addition to
estimates of sample error on all data, are currently being developed.  Upon
completion of a thorough analysis of these data, the results will be
published in the bulletin, Employee Benefits in State and Local
Governments, 1994.
 
        Benefits data for employees in medium and large private
establishments (those employing 100 workers or more) are currently
available in Employee Benefits in Medium and Large Private Establishments,
1993 (Bureau of Labor Statistics, Bulletin 2456, November 1994).  Data for
employees in small private establishments will be forthcoming in Employee
Benefits in Small Private Establishments, 1994 (Bureau of Labor
Statistics).  Combined 1992-93 data, which provide information on benefits
provided to all workers in private industry and state and local
governments, are available in the pamphlet Employee Benefits in the United
States, 1992-93 (Bureau of Labor Statistics, March 1995.) 5
 
 
 
Table 1.  Percent of full-time employees participating in selected employee benefit
programs,(1) state and local governments, 1994
 
 
                                                 White-collar                   Blue-collar
    Employee benefit program      All employees   employees,      Teachers      and service
                                                    except                       employees
                                                   teachers
                                                                                            
 
                                                        Paid time off
                                 
 
Holidays........................        73             86             33             91
Vacations.......................        66             84              9             91
Personal leave..................        38             30             58             31
Funeral leave...................        62             59             58             70
Jury duty leave.................        94             94             94             93
Military leave..................        75             80             61             82
Sick leave......................        94             93             96             94
Family leave....................         4              4              3              6
                                                                                            
 
                                                       Unpaid time off
                                 
 
Family leave....................        93             93             96             90
                                                                                            
 
                                                          Insurance
                                 
 
Sickness and accident insurance.        21             24             11             26
Long-term disability insurance..        30             31             37             23
Medical care....................        87             89             84             86
Dental care.....................        62             62             59             66
Life Insurance..................        87             87             85             87
                                                                                            
 
                                                         Retirement
                                 
 
All retirement(2)...............        96             96             97             95
Defined benefit pension.........        91             90             93             91
Defined contribution............         9             10              7              9
 Types of plans:
  Savings and thrift............         2              3              1              2
  Money purchase pension........         7              7              5              7
 
 401(k) plans with employer
    contribution................         7              8              5              8
 
See footnotes at end of table.
 
 
 
 
Table 1.  Percent of full-time employees participating in selected employee benefit
programs,(1) state and local governments, 1994 - Continued
 
 
                                                 White-collar                   Blue-collar
    Employee benefit program      All employees   employees,      Teachers      and service
                                                    except                       employees
                                                   teachers
                                                                                            
 
                                                       Other benefits
                                 
 
Flexible benefits plans.........         5              5              7              3
Reimbursement accounts..........        64             68             59             61
Child care......................         9             11              5              9
 
  1 Except for family leave and reimbursement accounts, benefits paid for entirely by the
employee were excluded from the tabulations.
  2 Includes defined benefit pension plans and defined contribution retirement plans.  Some
employees participated in both types of plans.
 
NOTE:  Workers reported in family leave plans and the category, other benefits, are eligible
for these benefits, but may not participate.  For all other benefits reported, workers
participate in the plans.
 
 
 
 
 
 
 
 
Table 2.  Medical care benefits:  Percent of participants by fee arrangement,
full-time employees, state and local governments, 1990, 1992, and 1994
 
 
 
    Type of fee arrangement           1990           1992           1994
 
                                                                             
Total...........................       100            100            100
Fee-for-service.................        61             43             38
Health maintenance organization.        22             27             30
Preferred provider organization.        17             29             30
Exclusive provider organization.       (1)              1              2
 
  1 Less than 0.5 percent.
 
NOTE:  Because of rounding, sums of individual items may not equal totals.
Where applicable, dashes indicate no employees in this category.
 
 
 
 
 
 
 
 
Table 3.  Medical care benefits:  Percent of participants by required
contribution, full-time employees, state and local governments, 1990, 1992,
and 1994
 
 
 
     Employee contributions           1990           1992           1994
 
                                                                             
 
                                             Individual coverage
                                 
 
Total...........................       100            100            100
Employee contribution required..        38             43             47
Employee contribution not
   required.....................        62             57             49
Not determinable................       (1)             1               3
                                                                             
 
                                               Family coverage
                                 
 
Total...........................       100            100            100
Employee contribution required..        65             72             71
Employee contribution not
   required.....................        35             28             22
Not determinable................       (1)            (1)              7
 
                                       Average monthly contribution(2)
                                 
 
Individual......................       $25.53         $28.97         $30.20
Family..........................       117.59         139.23         149.70
 
  1 Less than 0.5 percent.
  2 The average monthly contribution includes those plans requiring the
employee to pay a flat monthly contribution.
 
NOTE:  Because of rounding, sums of individual items may not equal totals.
Where applicable, dashes indicate no employees in this category.
 
 
 
 
 
 
Table 4.  Percent of full-time and part-time(1)  employees participating in selected employee benefit
programs,(2)  state and local governments, 1990, 1992, and 1994
 
 
                                         Full-time employees                 Part-time employees
    Employee benefit program
 
                                     1990        1992        1994        1990        1992        1994
                                                                                                        
 
                                                              Paid time off
                                 
 
Holidays........................      74          75          73          34          34          30
Vacations.......................      67          67          66          26          26          22
Personal leave..................      39          38          38          20          17          18
Funeral leave...................      63          65          62          38          34          30
Jury duty leave.................      94          97          94          53          52          51
Military leave..................      81          83          75          39          38          32
Sick leave......................      95          95          94          49          45          42
Family leave(3).................       1           1           4           1           1           1
                                                                                                        
 
                                                             Unpaid time off
                                 
 
Family leave(3).................      51          59          93          28          32          62
                                                                                                        
 
                                                                Insurance
                                 
 
Sickness and accident insurance.      21          22          21          14          14           7
Long-term disability insurance..      27          28          30           8           9           8
Medical care....................      93          90          87          38          43          31
Dental care.....................      62          65          62          25          37          27
Life Insurance..................      88          89          87          36          41          36
                                                                                                        
 
                                                               Retirement
                                 
 
All retirement(4)...............      96          93          96          48          51          58
Defined benefit pension.........      90          87          91          45          48          55
Defined contribution............       9           9           9           3           4           5
 Types of plans:
  Savings and thrift............       1           2           2           1           1           1
  Money purchase pension........       8           7           7           2           3           3
 
 401(k) plans with employer
    contribution................       8           7           7         (5)         (5)           3
 
See footnotes at end of table.
 
 
 
 
Table 4.  Percent of full-time and part-time(1)  employees participating in selected employee benefit
programs,(2)  state and local governments, 1990, 1992, and 1994 - Continued
 
 
                                         Full-time employees                 Part-time employees
    Employee benefit program
 
                                     1990        1992        1994        1990        1992        1994
                                                                                                        
 
                                                             Other benefits
                                 
 
Flexible benefits plans.........       5           5           5           2           2           3
Reimbursement accounts..........      31          50          64          12          25          27
Child care......................       9           8           9           5           2           6
 
  1 Employees are classified as part time in accordance with practices of surveyed establishments.
  2 Except for family leave and reimbursement accounts, benefits paid for entirely by the employee were
excluded from the tabulations.
  3 Family leave prior to 1994 included only maternity and/or paternity leave.
  4 Includes defined benefit pension plans and defined contribution retirement plans.  Some employees
participated in both types of plans.
  5 Data not available.
 
NOTE:  Workers reported in family leave plans and the category, other benefits, are eligible for these
benefits, but may not participate.  For all other benefits reported, workers participate in the plans.