TEXT
Table 1.  Full-time employees participating in selected employee benefit programs, medium
Table 1.  Full-time employees participating in selected employee benefit programs, medium
Table 2.  Medical care benefits:  Percent of participants by fee arrangement, full-time
Table 3.  Medical care benefits:  Percent of participants by required contribution,
Table 4.  Part-time(1) employees participating in selected employee benefit programs, medium
Table 4.  Part-time(1) employees participating in selected employee benefit programs, medium
Table 5.  Full-time employees participating in selected
Table 5.  Full-time employees participating in selected

 
 
 
 
 
 Technical contact:                                              USDL:  94-477
EBS Staff               (202) 606-6222
 
Media contact:
Kathyrn Hoyle   (202) 606-5902                  FOR RELEASE: 10 A.M. (EDT)
                                                                Friday, September 30, 1994
 
BLS REPORTS ON EMPLOYEE BENEFITS IN MEDIUM AND
LARGE PRIVATE ESTABLISHMENTS, 1993
 
        More employees in medium and large private establishments participated in non-traditional health care
plans in 1993 than in 1991, according to a 1993 survey conducted by the U.S. Department of Labor's Bureau
of Labor Statistics.  Four-fifths of full-time employees participated in employer-provided medical care plans
in both 1991 and 1993, but significant shifts occurred in the major types of plans.  Non-traditional health care
plans, such as health maintenance organizations (HMOs) and preferred provider organizations (PPOs),
covered half the full-time employees with employer-funded medical care benefits in 1993, up from one-third
in 1991.  In contrast, participation in traditional fee-for-service plans declined from two-thirds of medical care
participants in 1991 to one-half in 1993.  In addition, a greater proportion of covered employees were required
to contribute toward individual and family coverage in 1993 than in 1991.
 
        The 1993 survey provides information on the incidence and characteristics of benefit plans for an
estimated 34 million employees in establishments with 100 workers or more.  Of that total, nearly 29 million
employees were full time and about 5.6 million were part time.
 
BENEFITS FOR FULL-TIME EMPLOYEES IN MEDIUM AND
LARGE PRIVATE ESTABLISHMENTS
 
        Among the most prevalent benefits provided to full-time employees in medium and large private
establishments in 1993 were medical care, dental care, life insurance, retirement plans, paid holidays, paid
vacations, and paid sick leave; each of these benefits was provided to a majority of full-time workers.  (See
table 1.)  On the other hand, such benefits as paid personal leave, sickness and accident insurance, and long-
term disability insurance were less frequently provided to full-time employees.
 
Medical Care Benefits
 
        Fee-for-service plans, the traditional way of providing medical care benefits, covered one-half of
medical care participants in 1993, down from two-thirds in 1991.  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.  In 1993, nine-tenths of the workers covered by such 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 second surgical opinions.  When such requirements are not met, the plan reduces or
eliminates payments.
 
        Preferred provider organizations (PPOs) covered 26 percent of full-time workers with medical care
benefits (compared with 16 percent in 1991).  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, 37 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.  (See table 2.)
 
        Health maintenance organizations (HMOs), which covered 23 percent of full-time workers with
medical care benefits in 1993 (compared with 17 percent in 1991), 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.  If care is provided outside of the HMO, the individual will not be reimbursed for the
services rendered.
 
        One additional type of health care plan, exclusive provider organizations, covered 1 percent of medical
care participants in 1993.  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 1993, three-fifths 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 $32.
Three-fourths of covered workers had to pay part of the cost for family coverage, with an average of $107 per
month.  (See table 3.)  In 1991, just over one-half of the participants had to contribute to the cost of individual
coverage; the average monthly cost was $27.  Contributions were required from approximately two-thirds of
participants for family coverage, at an average cost of $97 per month.
 
Life and Disability Insurance
 
        Life insurance protection, nearly always paid for entirely by employers, was provided to nine-tenths of
full-time workers in medium and large private establishments in 1993.  Three-fifths of the life insurance
participants were provided benefits based on salary, typically one or two times annual pay.  Nearly all of the
remaining participants had benefits specified as flat amounts, averaging $15,500.
 
        Sickness and accident insurance plans, which provide either a percentage of a worker's pay or a flat
amount per week during a period of disability, covered slightly over two-fifths of full-time workers in 1993.
A typical sickness and accident insurance plan imposes a 7-day waiting period before benefits (commonly 50
or 60 percent of regular pay) begin, with payments continuing for a maximum of 26 weeks.
 
        When an employee is disabled for a longer period of time, or indefinitely, income replacement benefits
may be available through a long-term disability insurance plan.  Two-fifths of full-time employees in 1993
participated in a long-term disability insurance plan; seven-tenths of these workers had coverage fully paid by
their employer.  Typically, long-term disability insurance plans provide a percentage of pre-disability pay,
usually 60 percent.
 
Defined Contribution Plans
 
        Nearly one-half of full-time employees in medium and large private establishments participated in one
or more defined contribution plans in 1993.  These plans, which usually specify the employer's contribution
but cannot predetermine the employee's actual amount of benefits, include savings and thrift (covering
approximately three-tenths of full-time workers), deferred profit sharing (one-eighth), and money purchase
pension and stock ownership plans (each less than one-tenth).  Most participants were in plans that required
employee contributions toward coverage.
 
        Nearly two-fifths of the full-time workers covered by the survey participated in 401(k) plans with
employer contributions.  These plans are a subset of the defined contribution plans just described.  Most of
these plans allow employees to save money on a tax-deferred basis and can be used to supplement Social
Security and defined benefit pension plans upon retirement.
 
        Just over one-half of the employees participating in 401(k) plans were allowed to transfer or "rollover"
amounts received from a plan of a former employer in order to continue the tax deferral on that money.  In
contrast, however, many 401(k) plans allow use of the funds before retirement through loans and withdrawals.
For example, two-fifths of covered employees were allowed to borrow from their accounts (usually for any
reason) or to withdraw funds (often for hardship reasons, such as medical or educational expenses) in
accordance with IRS provisions.
 
Defined Benefit Pension Plans
 
        Defined benefit pension plans, which specify a formula for determining an employee's annuity,
covered about three-fifths of full-time workers in 1993.  Just over one-half of the plan participants were
eligible for full (unreduced) benefits before age 65 upon meeting a service requirement, usually 10 years or
more.
 
        Three of five participants were in plans paying benefits  based on a terminal earnings formula, which
provides a pension equal to a percentage of the employee's annual pay averaged over the final years of
employment times years of service.  Participants with terminal-earnings formulas typically had earnings
defined as the average over a 5-year period.
 
        One out of 10 full-time employees with a defined benefit pension plan were covered by a portability
provision to move accumulated benefits from one employer to another.  Virtually all of these participants
were covered by either a multiemployer plan established by a union or a single employer plan offered by an
establishment, such as in the utilities industry.  If an employee moved to another employer, benefits from the
prior employer, usually in the form of years of credited service, were transferred.
 
Family-Related Benefits
 
        Family care benefits were provided through a variety of employee benefit programs in 1993.  Parental
leave plans provide time off for mothers and fathers to care for newborn or newly adopted children.  Such
plans, as defined for the survey, are separate from vacations, which also may be used for parenting purposes.
Three-fifths of full-time employees had unpaid maternity leave available, with the maximum leave averaging
about 4.5 months.  Just over one-half of full-time employees had unpaid paternity leave available.  Paid
parental leave was rare.  Most of these data on parental leave were collected prior to the August 1993 effective
date of the Family and Medical Leave Act.
 
        Seven percent of full-time employees in medium and large private establishments were eligible for
child care benefits subsidized by their employer.  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 reimbursement accounts (commonly known as Flexible
Spending Accounts, or FSAs) which characteristically cover dependent care, health care premiums, or out-of-
pocket health care expenses.  One-half of full-time employees were eligible for such accounts, up from 36
percent in 1991.  Most often, these accounts are funded solely by employee pretax dollars.
 
BENEFITS FOR PART-TIME WORKERS IN MEDIUM AND
LARGE PRIVATE ESTABLISHMENTS
 
        In addition to collecting data for full-time workers in medium and large private establishments, the
Bureau of Labor Statistics also collected data for part-time workers.  For virtually every benefit, a smaller
percentage of part-time workers were covered as compared with full-time workers.  Paid vacations and
holidays were among the most prevalent benefits available to part-time workers in 1993, while insurance and
retirement plans were less common.  (See 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.
 
        About one-half of part-time employees in medium and large private establishments in 1993 received
paid holidays and paid vacations.  When these benefits were provided, they were typically similar to those of
full-time workers, but prorated based on the work schedule of the part-time employee.  Medical care and life
insurance benefits each covered approximately one-fourth of part-time employees in 1993.  Retirement
benefits were provided to two-fifths of part-time workers.
 
COMPARISONS WITH SMALL ESTABLISHMENTS
 
        Almost without exception, the extent of benefits in medium and large private establishments in 1993
was higher than in small private establishments (those with fewer than 100 workers) surveyed in 1992.  (See
table 5.)  Although medical coverage for full-time employees was 82 percent for workers in large
establishments compared with 71 percent in small, the gap was wider for other benefits.  For example, 62
percent of full-time employees in medium and large establishments had dental care compared with 33 percent
in small establishments.  Ninety-one percent of workers in medium and large establishments had life
insurance compared with 64 percent in small.  Similar differences existed for retirement benefits:  While 78
percent of the full-time employees in medium and large private establishments had some form of retirement
plan, 45 percent of the employees in small private establishments had such coverage.
 
        Employees in medium and large private establishments also had a higher incidence of coverage for
time-off benefits than those in small private establishments.  About one-half of workers in small
establishments had provisions for funeral and jury duty leave while over four-fifths of workers in medium and
large establishments had these benefits.  About one-fifth of workers in small establishments could receive full
or partial pay for military leave compared with just over one-half of workers in medium and large
establishments.  Differences were more pronounced for unpaid maternity leave; just under one-fifth of
employees in small establishments could take this unpaid time off while three-fifths of workers in medium
and large establishments could receive this benefit.  (Most of these data on parental leave were collected prior
to the August 1993 effective date of the Family and Medical Leave Act.)
 
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 employers' costs 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 the 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 medium and large
private 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 Medium and Large  Private Establishments, 1993, which will be published this fall.
 
        Benefits data are available for all covered employees combined and separately for three broad
occupational groups:  Professional, technical, and related employees; clerical and sales employees; and blue-
collar and service employees.  Definitions of these occupational groups may be found in the tables at the end
of this release.  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 Employee Benefits Survey is collected on a 2-year cycle.  During 1994, data are being collected
on benefits provided to workers in small private establishments (those employing fewer than 100 workers)
and to workers in state and local governments.  The survey of medium and large private establishments will
be 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 analysis of these data, the results will be published in the
bulletin, Employee Benefits in Medium and Large Private Establishments, 1993.
 
        Benefits data for employees in small private establishments (those employing fewer than 100 workers)
are currently available in Employee Benefits in Small Private Establishments, 1992 (Bureau of Labor
Statistics, Bulletin 2441, May 1994).  Data for governments are currently available in Employee Benefits in
State and Local Governments, 1992 (Bureau of Labor Statistics Bulletin 2444, July 1994).   For combined
1991-92 data, which provide information on benefits provided to all workers in private industry and state and
local governments, see Ann C. Foster, "Employee Benefits in the United States, 1991-1992," Compensation
and Working Conditions, July 1994, pp 1-6.
3
Table 1.  Full-time employees participating in selected employee benefit programs, medium
                    and large private establishments, 1993(1)
 
 
                                                                     Professional,  Clerical and    Blue-collar
                        Employee benefit program      All employees technical, and      sales       and service
                                                                        related     employees(3)   employees(4)
                                                                     employees(2)
                                                                                                                
 
                                                                            Paid time off
                                                     
 
                    Holidays........................        91             89             93             92
                    Vacations.......................        97             97             98             96
                    Personal leave..................        21             27             31             13
                    Lunch period....................         9              5              5             13
                    Rest period.....................        68             54             66             76
                    Funeral leave...................        83             86             85             80
                    Jury duty leave.................        90             95             92             85
                    Military leave..................        53             66             54             44
                    Sick leave......................        65             85             80             45
                    Maternity leave.................         3              4              3              1
                    Paternity leave.................         1              2              1            (5)
                                                                                                                
 
                                                                           Unpaid time off
                                                     
 
                    Maternity leave.................        60             63             60             59
                    Paternity leave.................        53             55             51             52
                                                                                                                
 
                                                                              Insurance
                                                     
 
                    Sickness and accident insurance.        44             28             37             57
                    Long-term disability insurance..        41             64             50             23
                    Medical care....................        82             84             79             82
                    Dental care.....................        62             68             63             58
                    Life Insurance..................        91             95             92             89
                                                                                                                
 
                                                                             Retirement
                                                     
 
                    All retirement(6)...............        78             83             78             76
                    Defined benefit pension.........        56             57             54             56
                    Defined contribution............        49             60             54             40
                     Types of plans:
                      Savings and thrift............        29             38             34             21
                      Deferred profit sharing.......        13             12             16             12
                      Employee stock ownership......         3              3              4              2
                      Money purchase pension........         8             13              7              6
 
                    See footnotes at end of table.
Table 1.  Full-time employees participating in selected employee benefit programs, medium
                    and large private establishments, 1993(1) - Continued
 
 
                                                                     Professional,  Clerical and    Blue-collar
                        Employee benefit program      All employees technical, and      sales       and service
                                                                        related     employees(3)   employees(4)
                                                                     employees(2)
                                                                                                                
 
                                                                             Retirement
                                                     
 
                     Types of plans:
 
                    401(k) plans with employer
                       contribution.................        36             46             44             26
                                                                                                                
 
                                                                           Other benefits
                                                     
 
                    Flexible benefits plans.........        12             21             13              6
                    Reimbursement accounts..........        52             68             62             37
                    Child care......................         7             12              6              4
 
                      1 Except for maternity and paternity leave and reimbursement accounts, benefits paid for
                    entirely by the employee were excluded from the tabulations.
                      2 Includes professional, technical, executive, and administrative occupations.
                      3 Includes clerical, administrative support, and sales occupations.
                      4 Includes production, craft, repair, laborer, and service occupations.
                      5 Less than 0.5 percent.
                      6 Includes defined benefit pension plans and defined contribution retirement plans.  Some
                    employees participated in both types of plans.
 
                    NOTE:  Workers reported in maternity and paternity 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, medium and large private establishments, 1993
 
 
                                                                     Professional,  Clerical and    Blue-collar
                        Type of fee arrangement       All employees technical, and      sales       and service
                                                                        related       employees      employees
                                                                       employees
                                                                                                                
                    Total...........................       100            100            100            100
                    Fee-for-service.................        50             41             42             59
                    Health maintenance organization.        23             28             27             18
                    Preferred provider organization.        26             29             30             22
                    Exclusive provider organization.         1              2              1              1
 
                    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, medium and large private establishments, 1993
 
 
                                                                     Professional,  Clerical and    Blue-collar
                         Employee contributions       All employees technical, and      sales       and service
                                                                        related       employees      employees
                                                                       employees
                                                                                                                
 
                                                                         Individual coverage
                                                     
 
                    Total...........................        100            100            100            100
                    Employee contribution required..         61             67             65             55
                    Employee contribution not
                       required.....................         37             31             32             44
                    Not determinable................          2              2              3              1
                                                                                                                
 
                                                                           Family coverage
                                                     
 
                    Total...........................        100            100            100            100
                    Employee contribution required..         76             82             79             70
                    Employee contribution not
                       required.....................         21             15             17             28
                    Not determinable................          3              3              4              2
 
 
 
 
 
                                                                                                                
 
                                                                   Average monthly contribution(1)
                                                     
 
                    Individual......................       $31.55         $31.87         $33.84         $29.90
                    Family..........................       107.42         113.95         115.42          98.72
 
                      1 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.
Table 4.  Part-time(1) employees participating in selected employee benefit programs, medium
                    and large private establishments, 1993(2)
 
 
                                                                     Professional,  Clerical and    Blue-collar
                        Employee benefit program      All employees technical, and      sales       and service
                                                                        related     employees(4)   employees(5)
                                                                     employees(3)
                                                                                                                
 
                                                                            Paid time off
                                                     
 
                    Holidays........................        48             36             57             45
                    Vacations.......................        55             55             57             54
                    Personal leave..................        14              7             20             10
                    Lunch period....................         2              3              2              2
                    Rest period.....................        59             67             67             49
                    Funeral leave...................        44             42             57             33
                    Jury duty leave.................        49             54             52             46
                    Military leave..................        14             16             18              9
                    Sick leave......................        26             39             26             22
                    Maternity leave.................         1              2            (6)              1
                    Paternity leave.................         1              2            (6)            (6)
                                                                                                                
 
                                                                           Unpaid time off
                                                     
 
                    Maternity leave.................        36             43             38             33
                    Paternity leave.................        32             35             33             30
                                                                                                                
 
                                                                              Insurance
                                                     
 
                    Sickness and accident insurance.        17             19             12             21
                    Long-term disability insurance..         4             10              5              1
                    Medical care....................        24             33             22             24
                    Dental care.....................        17             27             17             14
                    Life Insurance..................        25             36             27             20
                                                                                                                
 
                                                                             Retirement
                                                     
 
                    All retirement(7)...............        40             51             45             33
                    Defined benefit pension.........        26             31             29             23
                    Defined contribution............        23             24             32             16
                     Types of plans:
                      Savings and thrift............         8              6             15              4
                      Deferred profit sharing.......         9              3             12              8
                      Employee stock ownership......         2              1              4              1
                      Money purchase pension........         4             14              1              3
 
                    See footnotes at end of table.
Table 4.  Part-time(1) employees participating in selected employee benefit programs, medium
                    and large private establishments, 1993(2) - Continued
 
 
                                                                     Professional,  Clerical and    Blue-collar
                        Employee benefit program      All employees technical, and      sales       and service
                                                                        related     employees(4)   employees(5)
                                                                     employees(3)
                                                                                                                
 
                                                                             Retirement
                                                     
 
                     Types of plans:
 
                    401(k) plans with employer
                       contribution.................        15              7             24              9
                                                                                                                
 
                                                                           Other benefits
                                                     
 
                    Flexible benefits plans.........         5             16              4              3
                    Reimbursement accounts..........        19             37             22             11
                    Child care......................         5             20              2              4
 
                      1 Employees are classified as part-time in accordance with practices of surveyed
                    establishments.
                      2 Except for maternity and paternity leave and reimbursement accounts, benefits paid for
                    entirely by the employee were excluded from the tabulations.
                      3 Includes professional, technical, executive, and administrative occupations.
                      4 Includes clerical, administrative support, and sales occupations.
                      5 Includes production, craft, repair, laborer, and service occupations.
                      6 Less than 0.5 percent.
                      7 Includes defined benefit pension plans and defined contribution retirement plans.  Some
                    employees participated in both types of plans.
 
                    NOTE:  Workers reported in maternity and paternity 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 5.  Full-time employees participating in selected
                                   employee benefit programs, medium and large private
                                   establishments, 1993 and small private establishments, 1992
 
 
                                                                      Medium and    Small private
                                       Employee benefit program      large private establishment-
                                                                    establishment-     s, 1992
                                                                        s, 1993
                                                                                                 
 
                                                                            Paid time off
                                                                    
 
                                   Holidays........................        91             82
                                   Vacations.......................        97             88
                                   Personal leave..................        21             12
                                   Lunch period....................         9              9
                                   Rest period.....................        68             49
                                   Funeral leave...................        83             50
                                   Jury duty leave.................        90             58
                                   Military leave..................        53             21
                                   Sick leave......................        65             53
                                   Maternity leave.................         3              2
                                   Paternity leave.................         1              1
                                                                                                 
 
                                                                           Unpaid time off
                                                                    
 
                                   Maternity leave.................        60             18
                                   Paternity leave.................        53              8
                                                                                                 
 
                                                                              Insurance
                                                                    
 
                                   Sickness and accident insurance.        44             26
                                   Long-term disability insurance..        41             23
                                   Medical care....................        82             71
                                   Dental care.....................        62             33
                                   Life Insurance..................        91             64
                                                                                                 
 
                                                                             Retirement
                                                                    
 
                                   All retirement..................        78             45
                                   Defined benefit pension.........        56             22
                                   Defined contribution............        49             33
                                    Types of plans:
                                     Savings and thrift............        29             14
                                     Deferred profit sharing.......        13             16
 
                                   See footnotes at end of table.
Table 5.  Full-time employees participating in selected
                                   employee benefit programs, medium and large private
                                   establishments, 1993 and small private establishments, 1992 -
                                   Continued
 
 
                                                                      Medium and    Small private
                                       Employee benefit program      large private establishment-
                                                                    establishment-     s, 1992
                                                                        s, 1993
                                                                                                 
 
                                                                             Retirement
                                                                    
 
                                    Types of plans:
                                     Employee stock ownership......         3              1
                                     Money purchase pension........         8              5
 
                                   401(k) plans with employer
                                      contribution.................        36             19
                                                                                                 
 
                                                                           Other benefits
                                                                    
 
                                   Flexible benefits plans.........        12              2
                                   Reimbursement accounts..........        52             14
                                   Child care......................         7              2
 
 
                                   NOTE:  Workers reported in maternity and paternity 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.