TEXT
Table 1.  Full-time employees participating in selected employee benefit
Table 2.  Part-time1 employees participating in selected employee benefit
Table 3.  Full-time employees participating in selected employee benefit

 Technical contact:               USDL: 94-42
 EBS staff         (202)606-6222
 
 Media contact:                   FOR RELEASE: 10 A.M. (EST)
 Kathyrn Hoyle     (202)606-5902  Thursday, January 27, 1994
 
 
             BLS REPORTS ON EMPLOYEE BENEFITS IN SMALL
               PRIVATE INDUSTRY ESTABLISHMENTS, 1992
 
          Seven of 10 full-time workers in small private
     establishments (those with fewer than 100 workers)
     participated in employer-provided health care plans,
     according to 1992 survey data issued by the U.S.
     Department of Labor's Bureau of Labor Statistics.
     Specifically:
 
          About two-thirds (68 percent) of the full-time
          workers in small establishments with health care
          benefits were covered by a traditional fee-for-
          service plan;
 
          Nearly one-fifth (18 percent) of full-time workers
          with health care coverage participated in Preferred
          Provider Organizations (PPO), a variant of the fee-
          for-service plan that encourages the use of
          specified health care providers;
 
          Approximately one-seventh (14 percent) of full-time
          workers with health care coverage received benefits
          through a Health Maintenance Organization (HMO);
 
          Nearly one-half (47 percent) of full-time employees
          in small establishments with health care benefits
          were required to contribute to their health care
          premiums for individual coverage; for these
          employees, monthly contributions averaged $37.
 
          Seven-tenths (73 percent) were required to
          contribute for family coverage; monthly
          contributions averaged $151.
 
          Five percent of part-time workers in small
          establishments participated in employer-provided
          health care plans.
 
          Although the proportion of full-time workers
     participating in health care plans in 1992 was little
     changed from the 69 percent reported in the 1990 survey
     of small establishments, participation in HMO's and, more
     significantly, the relatively new offerings of PPO's,
     continued to grow.  Also, employees were required to
     share an increasing part of the health coverage burden
     through increased employee premiums and deductibles.
 
          Data also are available on the incidence of employee
     benefits in small establishments among major occupational
     groups:  Professional, technical, and related employees;
     clerical and sales employees; and blue-collar and service
     employees.  In general, benefits were more prevalent
     among the first two groups of employees.  For example,
     among full-time workers, retirement benefits were
     provided to about half these workers while about two-
     fifths of the blue-collar and service employees had such
     benefits.  (See table 1.)
 
          The 1992 small establishment survey provides
     information on the incidence and characteristics of
     benefit plans for an estimated 44 million employees
     (nearly two-fifths of the nation's civilian employed
     persons) in private establishments with fewer than 100
     employees.  About 34 million full-time and 10 million
     part-time employees were covered by the survey, which
     included all private industries, except farms and
     households.  The survey included small establishments
     that were part of larger enterprises, such as a local
     service unit of a large manufacturing company, and small
     independent businesses, such as a local grocery store.
     Four-fifths of the covered employees were in independent
     small businesses, and the remainder were in small units
     of larger companies.
 
                 BENEFITS FOR FULL-TIME EMPLOYEES
                      IN SMALL ESTABLISHMENTS
 
          As in 1990, a large majority of full-time workers in
     small private industry establishments in 1992 were
     provided paid holidays, paid vacations, and life and
     health insurance.  The 1992 survey sheds light on recent
     trends in these and other employee benefits.  These
     recent developments are summarized below.
 
     Health Benefits
          About nine-tenths of the full-time employees in
     small establishments who received employer-provided
     health care benefits in 1992 were covered by "managed
     care" provisions -- measures aimed at controlling health
     care usage and cost.  One-third of full-time workers with
     health care benefits were covered by non-traditional
     health care plans -- health maintenance organizations or
     preferred provider organizations -- designed to limit
     health care costs.  Approximately four-fifths of all
     employees covered by traditional fee-for-service plans
     also were subject to features designed to hold down
     health care costs and usage.
 
          HMO's which covered 14 percent of full-time workers
     with medical care benefits, provide prepaid services to
     patients from a selected group of doctors and facilities.
     Care is often free of charge or is available for a fee,
     for example, $10 or less for an office visit.  A point-of-
     service option, available to a few workers covered by
     HMOs, allowed patients to seek care from a doctor or
     facility not affiliated with the HMO.  In such cases, the
     patient paid a greater share of the cost of care.
 
          Preferred Provider Organizations are a type of fee-
     for-service plan that offer individuals a limited choice
     of health care providers;  in 1992, these plans covered
     18 percent of full-time workers with health care benefits
     in small establishments.  If the individual chooses a
     doctor, dentist, hospital, or other facility not on the
     preferred provider list, the plan pays a smaller share of
     the cost.
 
          For the first time, the 1992 survey presents data
     that compare cost differences incurred when using a
     preferred-provider as opposed to a non-preferred
     provider.  Nearly all workers covered by a PPO had a
     different percent of charges paid by the plan based on
     who provided the services.  For example, a plan might pay
     90 percent of charges for hospital services when received
     from a preferred provider and only 80 percent for the
     same services when received from a non-preferred
     provider.  About one in five workers covered by a PPO had
     a different deductible based on who provided the
     services.  (A deductible is an initial payment required
     to be paid by a patient before the plan begins to pay
     benefits.)  For example, physician services through a
     preferred provider typically required only a modest
     copayment, such as $10 per office visit.  Visits to non-
     preferred doctors were commonly covered under major
     medical benefits that usually required satisfaction of an
     annual deductible and then paid 80 percent of physicians'
     charges.
 
          Fee-for-service plans, which covered 68 percent of
     full-time workers with health care benefits in small
     establishments in 1992, are the traditional means of
     providing coverage.  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.  Approximately four-fifths of all the
     workers covered by such plans, however, 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 adhered to, the plan reduces or
     eliminates payments.
 
          Virtually all of the participants in fee-for-service
     plans were subject to an annual deductible that averaged
     $220 per year.  Additionally, nearly nine-tenths of these
     participants were in plans with an annual limit on
     individual out-of-pocket expenses; such limits averaged
     $1,108 per year.
 
     Life and Disability Insurance
 
          Life insurance protection, typically paid for
     entirely by employers, was provided to just under two-
     thirds (64 percent) of full-time workers in small
     establishments in 1992.  About three out of five life
     insurance plan participants had benefits specified as
     flat amounts, averaging slightly below $15,000.  Most of
     the remaining participants were provided life insurance
     benefits based on salary, typically one or two times
     annual pay.
 
          Additional life insurance protection could be
     obtained by three-tenths of those employees covered by a
     basic life insurance plan.  In nearly all cases, this
     supplemental coverage, while available at group insurance
     rates, was paid for entirely by the employee.  One-fourth
     of life insurance participants were in plans that
     continued benefits after retirement.  In nearly all
     cases, these benefits were reduced at retirement, but
     remained in effect for life.
 
          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, were available to
     one-fourth (26 percent) of full-time workers in the 1992
     small establishment survey.  A typical sickness and
     accident insurance plan imposes a 7-day waiting period
     before benefits (often at half or two-thirds of regular
     pay) begin, with payments continuing for 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.
     About one-fourth (23 percent) of full-time employees in
     the 1992 small establishment survey participated in a
     long-term disability insurance plan; four out of five of
     these workers had coverage fully paid by their employer.
     Typical long-term disability insurance plans provided
     payments equal to 60 percent of pre-disability pay.
 
     Defined Contribution Plans
          One-third (33 percent) of full-time employees in
     small establishments--11 million workers--participated in
     one or more defined contribution plan in 1992.  These
     plans, which usually specify the employer's contribution
     but cannot predetermine the employee's actual amount of
     benefits, include deferred profit-sharing (covering 16
     percent of full-time workers), savings and thrift (14
     percent), money purchase pension (5 percent), and stock
     ownership plans (1 percent).  Simplified employee pension
     plans, or SEPs, which are specifically designed for small
     establishments to create employee retirement accounts,
     were rarely found.  (Many SEPs cover the self-employed,
     who are excluded from the survey.)
 
          Nearly one-quarter (24 percent) of the full-time
     workers covered by the survey participated in 401(k)
     plans (also known as cash or deferred arrangements),
     reflecting the increased role played by these plans as
     retirement vehicles since 1990.  Virtually all of these
     plans were salary reduction plans, allowing employees to
     reduce their taxable income by making voluntary
     contributions that are not taxed until withdrawn from the
     plan.  For example, savings and thrift plans commonly
     allow participants to make pretax savings, some or all of
     which is matched by the employer.
 
     Defined Benefit Pension Plans
          Defined benefit pension plans, which specify a
     formula for determining an employee's annuity, covered
     about one-fifth (22 percent) of full-time workers in
     small establishments in 1992 -- 7 million workers.
 
          For the first time, survey data in small private
     establishments are available on the "portability" of
     pension benefits, that is, the ability to move
     accumulated benefits from one employer to another.  In
     1992, nearly 2 out of 10 full-time employees with a
     defined benefit pension plan were covered by a
     portability provision.  Most of these participants were
     covered by a multiemployer plan established by a union;
     some employees were covered by a single employer plan
     offered by an establishment with a portability agreement
     with related establishments.  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
          The care of family members was addressed by small
     private employers in a number of ways in 1992.  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.  Nearly
     one-fifth (18 percent) of full-time employees had unpaid
     maternity leave available, with the maximum leave
     averaging 16 weeks.  Nearly one-tenth (8 percent) of full-
     time employees had unpaid paternity leave available.  The
     number of workers covered by parental leave plans in 1992
     was virtually the same as the 1990 survey.  Paid parental
     leave was rare.  (These data on parental leave were
     collected prior to the passage of the Family and Medical
     Leave Act in February, 1993.)
 
          Two percent of full-time employees 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.  Fourteen percent of full-time employees were
     eligible for such accounts, up from 8 percent in 1990.
     Most often, these accounts are funded solely by employee
     pre-tax dollars.
 
                  BENEFITS FOR PART-TIME WORKERS
                      IN SMALL ESTABLISHMENTS
 
          Paid vacations and holidays were the most prevalent
     benefits available to part-time workers in small
     establishments, while insurance and retirement protection
     was rare.  (See table 2.)  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 3 in 10 part-time employees in small
     establishments in 1992 received paid vacations and paid
     holidays.  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.  Insurance benefits were generally available to
     fewer than one-tenth of part-time employees in small
     establishments.  Retirement benefits were offered to just
     over a tenth, up slightly from the 1990 survey due to a
     modest increase in the incidence of defined contribution
     plans, usually with profit-sharing features.
 
                 BENEFITS BY TYPE OF ESTABLISHMENT
 
          Table 3 presents comparative data on employee
     benefits provided to full-time workers in all small
     establishments and to those in small independent private
     businesses in 1992.  Once again, the incidence of
     benefits varied widely:  Health care benefits were
     provided to nearly two-thirds (64 percent) of full-time
     employees in small independent businesses in 1992, while
     one-third (34 percent) had retirement plan coverage.
     Among other benefits:  85 percent of full-time workers
     received paid vacations; 79 percent received paid
     holidays; 54 percent had life insurance protection; and
     15 percent could receive unpaid maternity leave.  Also
     presented in table 3 are summary data from the 1991
     medium and large private establishment survey.
 
 
                          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 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 small 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 Small Private
     Establishments, 1992, which will be published this
     spring.
 
          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 1993, data were collected on benefits
     provided to workers in medium and large private
     establishments (those employing 100 workers or more).
     The survey of small private establishments will be
     conducted again in 1994.
 
     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 Small Private
     Establishments, 1992.
 
          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, 1991 (Bureau of
     Labor Statistics, Bulletin 2422, May 1993).  Data for
     government employees will be forthcoming in Employee
     Benefits in State and Local Governments, 1992 (Bureau of
     Labor Statistics).  Combined 1990-91 data, which provide
     information on benefits provided to all workers in
     private industry and state and local governments, are
     available in BLS Reports on Employee Benefits in the
     United States, 1990-91 (Bureau of Labor Statistics,
     Summary 93-4, June 1993).
 
 
Table 1.  Full-time employees participating in selected employee benefit
programs, small private establishments, United States, 19921
(In percent)
_______________________________________________________________________________
                               |         |Professional,| Clerical |Blue-collar|
         Employee              |   All   | technical,  |   and    |    and    |
         benefit               |full-time|and related  |  sales   |  service  |
         program               |employees|  employees2 |employees3| employees4|
                               |         |             |          |           |
     Paid time off             |         |             |          |           |
Holidays ......................|    82   |     94      |    90    |     74    |
Vacations .....................|    88   |     94      |    94    |     81    |
Personal leave ................|    12   |     19      |    16    |      7    |
Lunch period ..................|     9   |     12      |     8    |      8    |
Rest period ...................|    49   |     40      |    43    |     56    |
Funeral leave .................|    50   |     60      |    56    |     43    |
Jury duty leave ...............|    58   |     76      |    65    |     47    |
Military leave ................|    21   |     33      |    27    |     13    |
Sick leave ....................|    53   |     74      |    70    |     35    |
Maternity leave ...............|     2   |      3      |     2    |      1    |
Paternity leave ...............|     1   |      1      |    (5)   |     (5)   |
                               |         |             |          |           |
     Unpaid time off           |         |             |          |           |
Maternity leave ...............|    18   |     27      |    20    |     13    |
Paternity leave ...............|     8   |     13      |     9    |      6    |
                               |         |             |          |           |
     Insurance                 |         |             |          |           |
Sickness and accident          |         |             |          |           |
  insurance ...................|    26   |     24      |    27    |     27    |
Long-term disability           |         |             |          |           |
  insurance ...................|    23   |     43      |    31    |     10    |
Medical care ..................|    71   |     83      |    78    |     61    |
Dental care ...................|    33   |     43      |    37    |     27    |
Life insurance ................|    64   |     77      |    73    |     53    |
                               |         |             |          |           |
     Retirement                |         |             |          |           |
All retirement6 ...............|    45   |     52      |    52    |     38    |
Defined benefit pension .......|    22   |     21      |    25    |     20    |
Defined contribution ..........|    33   |     43      |    38    |     26    |
  Uses of funds:               |         |             |          |           |
    Retirement7 ...............|    29   |     38      |    34    |     24    |
    Capital accumulation8 .....|     4   |      6      |     5    |      3    |
  Types of plans:              |         |             |          |           |
    Savings and thrift ........|    14   |     20      |    17    |      9    |
    Deferred profit sharing....|    16   |     18      |    19    |     14    |
    Employee stock ownership...|     1   |      1      |     1    |      1    |
    Money purchase pension ....|     5   |      9      |     5    |      4    |
    Simplified employee pension|     1   |      1      |     1    |      1    |
401(k) plans ..................|    24   |     34      |    28    |     18    |
                               |         |             |          |           |
     Other benefits            |         |             |          |           |
Flexible benefits plans .......|     2   |      4      |     4    |     (5)   |
Reimbursement accounts ........|    14   |     24      |    20    |      7    |
Child care ....................|     2   |      3      |     3    |     (5)   |
 
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.
7 Includes money purchase pension, profit sharing, savings and thrift, stock
bonus, employee stock ownership, and Simplified Employee Pension plans in which
employer contributions must remain in the participant's account until retirement
age, death, disability, separation from service, age 59-1/2, or hardship.
8 Includes plans in which participants may withdraw employer contributions from
their accounts without regard to the conditions listed in footnote 7.
 
Table 2.  Part-time1 employees participating in selected employee benefit
programs, small private establishments, United States, 19922
(In percent)
_______________________________________________________________________________
                           |         | Professional,|  Clerical | Blue-collar |
         Employee          |   All   |  technical,  |    and    |     and     |
         benefit           |part-time| and related  |   sales   |   service   |
         program           |employees|   employees3 | employees4|  employees5 |
                           |         |              |           |             |
     Paid time off         |         |              |           |             |
Holidays ..................|   29    |      35      |     37    |      22     |
Vacations .................|   31    |      35      |     33    |      30     |
Personal leave ............|    3    |       4      |      4    |       3     |
Lunch period ..............|    5    |       3      |      2    |       7     |
Rest period ...............|   31    |      14      |     40    |      27     |
Funeral leave .............|   12    |      20      |     19    |       7     |
Jury duty leave ...........|   15    |      22      |     19    |      11     |
Military leave ............|    4    |       5      |      6    |       2     |
Sick leave ................|   11    |      14      |     17    |       7     |
Maternity leave ...........|   (6)   |       -      |      1    |       -     |
Paternity leave ...........|    -    |       -      |      -    |       -     |
                           |         |              |           |             |
     Unpaid time off       |         |              |           |             |
Maternity leave ...........|    7    |       9      |      9    |      6      |
Paternity leave ...........|    4    |       5      |      5    |      4      |
                           |         |              |           |             |
     Insurance             |         |              |           |             |
Sickness and accident      |         |              |           |             |
  insurance ...............|   11    |      14      |     14    |      8      |
Long-term disability       |         |              |           |             |
  insurance ...............|    1    |       4      |      1    |     (6)     |
Medical care ..............|    5    |       7      |      7    |      4      |
Dental care ...............|    3    |       7      |      4    |      2      |
Life insurance ............|    6    |       7      |      8    |      5      |
                           |         |              |           |             |
     Retirement            |         |              |           |             |
All retirement7 ...........|   12    |       7      |     17    |      9      |
Defined benefit pension ...|    4    |       1      |      5    |      3      |
Defined contribution ......|    9    |       7      |     14    |      6      |
                           |         |              |           |             |
     Other benefits        |         |              |           |             |
Flexible benefits plans ...|    1    |       -      |      1    |      1      |
Reimbursement accounts ....|    2    |       3      |      3    |      1      |
Child care ................|    1    |       4      |      1    |     (6)     |
 
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: Dash indicates no employees in this category.
Table 3.  Full-time employees participating in selected employee benefit
programs, small private establishments and small independent private businesses,
United States, 1992, and medium and large private establishments, United States,
19911 (In percent)
______________________________________________________________________________
                           |        Small private       |                    |
                           |    establishments, 1992    |                    |
                           |     All      |  Full-time  |                    |
         Employee          |  full-time   |  employees  |     Full-time      |
         benefit           |  employees   |   in small  |    employees in    |
         program           |   in small   | independent |  medium and large  |
                           |   private    |   private   |      private       |
                           |establishments|  businesses |establishments, 1991|
                           |              |             |                    |
     Paid time off         |              |             |                    |
Holidays ..................|      82      |      79     |          92        |
Vacations .................|      88      |      85     |          96        |
Personal leave ............|      12      |      11     |          21        |
Lunch period ..............|       9      |       9     |           8        |
Rest period ...............|      49      |      48     |          67        |
Funeral leave .............|      50      |      39     |          80        |
Jury duty leave ...........|      58      |      48     |          86        |
Military leave ............|      21      |      14     |          54        |
Sick leave ................|      53      |      45     |          67        |
Maternity leave ...........|       2      |       2     |           2        |
Paternity leave ...........|       1      |      (2)    |           1        |
                           |              |             |                    |
     Unpaid time off       |              |             |                    |
Maternity leave ...........|      18      |      15     |          37        |
Paternity leave ...........|       8      |       7     |          26        |
                           |              |             |                    |
     Insurance             |              |             |                    |
Sickness and accident      |              |             |                    |
  insurance ...............|      26      |      24     |          45        |
Long-term disability       |              |             |                    |
  insurance ...............|      23      |      13     |          40        |
Medical care ..............|      71      |      64     |          83        |
Dental care ...............|      33      |      24     |          60        |
Life insurance ............|      64      |      54     |          94        |
                           |              |             |                    |
     Retirement            |              |             |                    |
All retirement3 ...........|      45      |      34     |          78        |
Defined benefit pension ...|      22      |      12     |          59        |
Defined contribution ......|      33      |      27     |          48        |
   Retirement4 ............|      29      |      25     |          39        |
   Capital accumulation5 ..|       4      |       2     |           9        |
                           |              |             |                    |
     Other benefits        |              |             |                    |
Flexible benefits plans ...|       2      |      (2)    |          10        |
Reimbursement accounts ....|      14      |       6     |          36        |
Child care ................|       2      |      (2)    |           8        |
 
1 Except for maternity and paternity leave and reimbursement accounts, benefits
paid for entirely by the employee were excluded from the tabulations.
2 Less than 0.5 percent.
3 Includes defined benefit pension plans and defined contribution retirement
plans.  Some employees participated in both types of plans.
4 Includes money purchase pension, profit sharing, savings and thrift, stock
bonus, employee stock ownership, and Simplified Employee Pension plans in which
employer contributions must remain in the participant's account until retirement
age, death, disability, separation from service, age 59-1/2, or hardship.
5 Includes plans in which participants may withdraw employer contributions from
their accounts without regard to the conditions listed in footnote 4.