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, full-time
Table 3.  Medical care benefits:  Percent of participants by required contribution,
Table 4.  Percent of part-time(1) employees participating in selected employee benefit
Table 4.  Percent of part-time(1) employees participating in selected employee benefit
Table 5.  Percent of full-time employees participating in selected employee benefit
Table 5.  Percent of full-time employees participating in selected employee benefit

 
 
Technical contact:  USDL:  95-367
   Staff 202--606-6222
 
Media contact:  For release:  10:00 a.m. EDT
   Kathryn Hoyle 202--606-5902 Thursday, September 14, 1995
 
 
 
BLS REPORTS ON EMPLOYEE BENEFITS IN SMALL PRIVATE INDUSTRY ESTABLISHMENTS,
1994
 
 
     Most full-time employees of small establishments (fewer than 100
workers) in private industry are covered by diverse employee benefits in
addition to their wages, as shown by 1994 data issued by the Department of
Labor's Bureau of Labor Statistics.  For example:
 
Two out of three (66 percent) full-time workers in small establishments
participated in a health benefits plan provided by their employers;
 
Seven out of eight (88 percent) had paid vacation plans, and four out of
five (82 percent) had paid holidays;
 
One out of two (50 percent) had paid sick leave, and one out of four (26
percent) had employer-provided sickness and accident insurance plans;
 
Three out of five (61 percent) participated in life insurance programs
provided by their small-establishment employers; and
 
Two out of five (42 percent) participated in retirement plans.
 
     Data are available on the incidence of 30 different employee benefits
covered by the Employee Benefits Survey.  For 15 major benefits, detailed
data are available on specific provisions of the benefit plans for
full-time employees.  Data also are available on the incidence of benefits
for part-time employees and for employees classified into major
occupational groups:  Professional, technical, and related employees;
clerical and sales employees; and blue-collar and service employees.
Though not shown in this release, data are available by broad geographic
region, by industry sector of the employer, and by union and nonunion
status.
 
     The 1994 Employee Benefits Survey of small private establishments
covered an estimated 48.6 million employees (35.9 million full time, 12.7
million part time) in the private economy, excluding farms and private
households.  This represented about 55 percent of the total private nonfarm
economy employment.  The survey covered employees in small independent
businesses, as well as employees in small establishments that are part of
larger businesses.  Three out of four employees covered by the survey work
in small independent businesses.
 
     Complete survey results will be published this fall in a BLS bulletin,
Employee Benefits in Small Private Establishments, 1994.
 
Health benefits
 
     Full-time employee participation in employer-provided health plans
changed over the 2 years since the last small establishment survey.
Employee participation was lower, at 66 percent, in 1994 than 2 years
earlier (71 percent).  The trend away from traditional fee-for-service
plans was significant in the small establishments surveyed, as had been
observed in larger private sector firms.  Just over one-half of the
employees in medical plans were covered by traditional fee-for-service
plans in 1994, down from the two-thirds recorded in 1992 (55 versus 68
percent).  Traditional fee-for-service health plans allow participants
unrestricted choice in selecting the doctors and facilities that will
supply their care; the plan reimburses either the provider or the
individual for some or all of the cost.
 
     The remaining 45 percent of full-time employees in medical plans were
enrolled in non-traditional health plans in 1994.  Twenty-four percent
received their medical benefits from preferred provider organizations (up
from the 18 percent recorded in 1992); and 19 percent were enrolled in
prepaid health maintenance organizations (up from 14 percent).  Preferred
provider organizations are a type of fee-for-service plan that offers
higher reimbursement rates if services are provided from a network of
selected health care providers (such as hospitals and physicians), although
participants may choose any provider.  Health maintenance organizations
provide prepaid services from a selected group of doctors and facilities.
Coverage is fully prepaid, or is provided for only a nominal copayment.
Services provided by doctors and facilities outside the health maintenance
organization are not covered, or are covered at reduced rates.
 
     Eighty-six percent of participants were enrolled in health plans with
"managed care" provisions - measures aimed at controlling health care costs
and usage.  These workers were evenly divided between those enrolled in
preferred provider and health maintenance organizations and those enrolled
in traditional fee-for-service plans with managed care features.  The most
common of these features require or encourage performing necessary tests
prior to hospital admissions, certifying the need for hospitalizations, and
obtaining second surgical opinions.
 
     Another trend in controlling health care benefit plan costs has been
the imposition of deductible and coinsurance payment responsibilities on
the patient beginning the first day of a hospital confinement.  For
example, in other than health maintenance organization plans, in 1994 these
payments were required of the vast majority of medical plan participants in
small establishments for hospital room and board (72 percent), inpatient
surgery (85 percent), and inpatient physician visits (85 percent).  A
deductible is the amount of covered expenses that an individual must pay
before any charges are paid by the medical care plan.  Once the deductible
is met, plans pay a percentage of covered expenses, known as the
coinsurance percentage or rate.
 
     One-half (52 percent) of participating employees had to contribute to
the cost of their individual medical coverage, a somewhat higher proportion
than in 1992 (47 percent).  Three-quarters contributed to the cost of their
family coverage, about the same proportion as in 1992.  From 1992 to 1994,
average monthly employee contributions increased from $37 to $41 for
individual coverage and from $151 to $160 for family coverage.
 
Retirement benefits
 
     About two out of five (42 percent) full-time employees in small
establishments participated in employer-provided retirement plans -- a
slightly lower proportion than 2 years earlier (45 percent).  This
reflected declining participation in defined benefit plans (22 versus 15
percent) over the period, coupled with stable participation in defined
contribution plans (34 percent in 1994).  Defined benefit plans
characteristically specify a formula for determining an employee annuity at
retirement.  Alternately, defined contribution plans specify the employer's
contributions, but do not predetermine the actual retirement dollar
benefit.  Defined contribution plans include savings and thrift plans
(covering 17 percent of employees), deferred profit sharing plans (13
percent), money purchase pensions (5 percent), as well as employee stock
ownership and simplified employee pension plans (1 percent each).
 
Family leave benefits
 
     The Employee Benefits Survey measured the incidence of formal family
leave benefits 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 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, child, spouse or parent).  Generally, these provisions apply to
employees with 1 year of service who work 1,250 hours during the year and
who are employed by companies with 50 or more workers.  There is no mandate
to provide paid leave.  In 1992, prior to passage of the Family and Medical
Leave Act, almost one out of five (18 percent) full-time employees in small
establishments had unpaid maternity or paternity benefits available to
them.  In 1994, almost one out of two (47 percent) had an unpaid family
leave benefit.  In both years, paid benefits
 were rare.
 
Other findings
 
     The incidence of employee benefits for full-time employees in small
establishments was roughly uniform across occupations, with three notable
exceptions -- health insurance, sick leave, and retirement benefits.  For
each of these benefits, employees in professional and technical occupations
were significantly more likely to participate in the benefit than were
employees in blue-collar and service occupations.  Participation by
employees in clerical and sales occupations fell between.
 
     Among the factors that may influence the composition of employee
benefits in small establishments is their reduced ability, compared with
larger employers, to defray high plan administration costs commonly
associated with certain benefits.  For example, in 1994, full-time employee
participation in defined benefit pension plans amounted to 9 percent in
small establishments that were unaffiliated with larger companies.  The
participation rate was 56 percent for full-time employees of private
establishments with 100 or more employees in 1993.  This same relationship
exists for formal flexible benefit plans (1 percent compared with 12
percent) and employee reimbursement accounts (11 percent compared with 52
percent).  Formal flexible benefit plans allow employees to customize their
total benefit packages, choosing from options within certain guidelines set
by the employer.  Flexible benefit plans also are known as cafeteria
benefit plans.  Reimbursement accounts, also called flexible spending
accounts, let employees pay for expenses not covered by their usual benefit
package with pretax contributions to a fund established for this purpose.
 
     Part-time employees in small establishments were far less likely to be
covered in the benefit programs.  The most common benefits for part-time
employees were paid leave benefits which could be prorated to reflect the
shorter workweeks of the part-time employees.  Benefits with costs that
could not be prorated easily were less likely to cover part-time employees.
For example, the incidence rates for paid vacations and holidays for
part-timers, at 31 and 26 percent, were roughly a third of the
corresponding rates for full-time workers.  However, the participation rate
of part-time workers in employer-provided health benefits was just a tenth
that of full-time workers (7 versus 66 percent).
 
 
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 average costs per hour worked of compensation
components are published annually from the ECI.
 
The sample of establishments from which the ECI and EBS 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 by longevity.
Benchmark adjustments are applied to the data to estimate current
employment in each major industry sector.  More details on sampling and
estimation procedures will appear in the Technical Note to the bulletin,
Employee Benefits in Small Private Establishments, 1994, which will be
published this fall.
 
Benefits data are available for all covered employees and separately for
three broad occupation groups:  Professional, technical, and related
employees; clerical and sales employees; and blue-collar and service
employees.  Definitions of these occupation groups may be found in the
tables at the end of this release.  Data are also available for full-time
and part-time employees.  Workers were classified as either full-time or
part-time in accordance with practices in the surveyed establishments.
 
The EBS is collected on a 2-year cycle.  During 1994, data were collected
on benefits provided to workers in small private establishments (employing
fewer than 100 workers) and to workers in state and local government
establishments.  These will be surveyed again in 1996.  In odd numbered
years (e.g., 1993 and 1995), data are collected on the benefits provided to
workers in medium and large private establishments (employing 100 or more
workers).
 
Detailed tabulations of the benefit provisions, in addition to estimates of
sample error on all data, are currently being developed for the 1994 small
private establishment survey.  When the analyses of these data are
complete, they will be published in the bulletin, Employee Benefits in
Small Private Establishments, 1994.
 
Benefits data for workers in medium and large private establishments were
last published in BLS Bulletin 2456, Employee Benefits in Medium and Large
Private Establishments, 1993.  Corresponding data for workers in state and
local government establishments were last published in BLS Bulletin 2444,
Employee Benefits in State and Local Governments, 1992.  Public sector data
for 1994 will be released in a news release and in another bulletin, in
late fall 1995.  A summary of employee benefits data for the entire private
and state and local government sectors appears in the pamphlet, Employee
Benefits in the United States, 1992-93.
 
Table 1.  Percent of full-time employees participating in selected employee benefit
programs,(1) small private establishments, 1994
 
 
                                                 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........................        82             91             89             75
Vacations.......................        88             92             93             83
Personal leave..................        13             21             17              7
Funeral leave...................        50             58             55             45
Jury duty leave.................        58             74             66             48
Military leave..................        17             23             19             13
Sick leave......................        50             69             61             36
Family leave....................         2              5              2              1
                                                                                            
 
                                                       Unpaid time off
                                 
 
Family leave....................        47             53             50             43
                                                                                            
 
                                                          Insurance
                                 
 
Sickness and accident insurance.        26             27             27             25
Long-term disability insurance..        20             36             27             10
Medical care....................        66             80             70             57
Dental care.....................        28             40             31             22
Life Insurance..................        61             73             68             52
                                                                                            
 
                                                         Retirement
                                 
 
All retirement(5)...............        42             53             47             35
Defined benefit pension.........        15             16             16             15
Defined contribution............        34             45             39             26
 Types of plans:
  Savings and thrift............        17             23             20             13
  Deferred profit sharing.......        13             16             17             10
  Employee stock ownership......         1              2              1              1
  Money purchase pension........         5              9              5              4
  Simplified employee pension...         1              1              1              1
 
 401(k) plans with employer
    contribution................        20             28             23             15
 
See footnotes at end of table.
 
 
 
Table 1.  Percent of full-time employees participating in selected employee benefit
programs,(1) small private establishments, 1994 - Continued
 
 
                                                 Professional,  Clerical and    Blue-collar
    Employee benefit program      All employees technical, and      sales       and service
                                                    related     employees(3)   employees(4)
                                                 employees(2)
                                                                                            
 
                                                       Other benefits
                                 
 
Flexible benefits plans.........         3              2              5              2
Reimbursement accounts..........        19             28             23             13
Child care......................         1              2              1              1
 
  1 Except for family 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 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, small private establishments, 1992 and 1994
 
 
                                                 Professional,  Clerical and    Blue-collar
    Type of fee arrangement       All employees technical, and      sales       and service
                                                    related       employees      employees
                                                   employees
                                                                                            
 
                                                            1992
                                 
 
Total...........................       100            100            100            100
Fee-for-service.................        68             63             71             68
Health maintenance organization.        14             14             13             16
Preferred provider organization.        18             24             16             16
Exclusive provider organization.       (1)            (1)            (1)            (1)
                                                                                            
 
                                                            1994
                                 
 
Total...........................       100            100            100            100
Fee-for-service.................        55             53             55             57
Health maintenance organization.        19             20             19             20
Preferred provider organization.        24             27             24             23
Exclusive provider organization.         1            (1)              2              1
 
  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, small private establishments, 1994
 
 
                                                 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..         52             50             55             51
Employee contribution not
   required.....................         46             48             43             47
Not determinable................          2              3              2              2
                                                                                            
 
                                                       Family coverage
                                 
 
Total...........................        100            100            100            100
Employee contribution required..         75             76             79             70
Employee contribution not
   required.....................         19             17             15             24
Not determinable................          6              7              6              6
 
                                               Average monthly contribution(1)
                                 
 
Individual......................       $40.97         $46.83         $40.98         $38.35
Family..........................       159.63         180.73         159.56         148.84
 
  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.  Percent of part-time(1) employees participating in selected employee benefit
programs,(2) small private establishments, 1994
 
 
                                                 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........................        26             29             40             18
Vacations.......................        31             31             44             24
Personal leave..................         4              2              7              3
Funeral leave...................        15             19             21             11
Jury duty leave.................        25             17             27             25
Military leave..................         3              4              6              2
Sick leave......................         9             14             12              7
Family leave....................       (6)             1               1            (6)
                                                                                            
 
                                                       Unpaid time off
                                 
 
Family leave....................        28             17             33             27
                                                                                            
 
                                                          Insurance
                                 
 
Sickness and accident insurance.        17             20             18             16
Long-term disability insurance..         1              3              1            (6)
Medical care....................         7             11              9              5
Dental care.....................         3              2              5              2
Life Insurance..................         6              4             11              4
                                                                                            
 
                                                         Retirement
                                 
 
All retirement(7)...............        10              9             17              7
Defined benefit pension.........         5              2              8              3
Defined contribution............         6              7             11              4
 Types of plans:
  Savings and thrift............         3              1              5              1
  Deferred profit sharing.......         3              2              5              2
  Employee stock ownership......       (6)            (6)            (6)             1
  Money purchase pension........         1              3              1              1
  Simplified employee pension...       (6)             1               1             1
 
 401(k) plans with employer
    contribution................         3              2              5              1
 
See footnotes at end of table.
 
 
 
 
Table 4.  Percent of part-time(1) employees participating in selected employee benefit
programs,(2) small private establishments, 1994 - Continued
 
 
                                                 Professional,  Clerical and    Blue-collar
    Employee benefit program      All employees technical, and      sales       and service
                                                    related     employees(4)   employees(5)
                                                 employees(3)
                                                                                            
 
                                                       Other benefits
                                 
 
Flexible benefits plans.........       (6)             1               1            (6)
Reimbursement accounts..........         5              3              4              6
Child care......................         1              3              1              1
 
  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 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 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.  Where applicable, dashes indicate no employees in this category.
 
 
 
 
 
Table 5.  Percent of full-time employees participating in selected employee benefit
programs,(1) small private establishments, 1992 and 1994, small independent businesses,
1994, and medium and large private establishments, 1993
 
 
                                  Small private  Small private      Small       Medium and
    Employee benefit program       establish-     establish-     independent   large private
                                   ments, 1992    ments, 1994    businesses,    establish-
                                                                    1994        ments, 1993
                                                                                            
 
                                                        Paid time off
                                 
 
Holidays........................        82             82             80             91
Vacations.......................        88             88             86             97
Personal leave..................        12             13             11             21
Funeral leave...................        50             50             42             83
Jury duty leave.................        58             58             51             90
Military leave..................        21             17             11             53
Sick leave......................        53             50             44             65
Family leave(2).................         2              2              2              3
                                                                                            
 
                                                       Unpaid time off
                                 
 
Family leave(2).................        18             47             37             60
                                                                                            
 
                                                          Insurance
                                 
 
Sickness and accident insurance.        26             26             24             44
Long-term disability insurance..        23             20             14             41
Medical care....................        71             66             62             82
Dental care.....................        33             28             23             62
Life Insurance..................        64             61             54             91
                                                                                            
 
                                                         Retirement
                                 
 
All retirement(3)...............        45             42             35             78
Defined benefit pension.........        22             15              9             56
Defined contribution............        33             34             29             49
 Types of plans:
  Savings and thrift............        14             17             12             29
  Deferred profit sharing.......        16             13             13             13
  Employee stock ownership......         1              1              1              3
  Money purchase pension........         5              5              5              8
  Simplified employee pension...         1              1              1             1
 
See footnotes at end of table.
 
 
 
 
Table 5.  Percent of full-time employees participating in selected employee benefit
programs,(1) small private establishments, 1992 and 1994, small independent businesses,
1994, and medium and large private establishments, 1993 - Continued
 
 
                                  Small private  Small private      Small       Medium and
    Employee benefit program       establish-     establish-     independent   large private
                                   ments, 1992    ments, 1994    businesses,    establish-
                                                                    1994        ments, 1993
                                                                                            
 
                                                         Retirement
                                 
 
 
 401(k) plans with employer
    contribution................        19             20             15             36
                                                                                            
 
                                                       Other benefits
                                 
 
Flexible benefits plans.........         2              3              1             12
Reimbursement accounts..........        14             19             11             52
Child care......................         2              1              1              7
 
  1 Except for family leave and reimbursement accounts, benefits paid for entirely by the
employee were excluded from the tabulations.
  2 Family leave prior to 1994 included only maternity and/or paternity leave.
  3 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.  Where applicable, dash indicates no employees in this category.