GLOSSARY

For additional assistance on 

benefits, contact one of our 

information offices:

NATIONAL: WASHINGTON, DC

(202) 691-6199 TDD: (800) 877-8339

NCSinfo@bls.gov www.bls.gov/ebs

REGIONAL:

ATLANTA

(404) 893-4222

BOSTON

(617) 565-2327

CHICAGO

(312) 353-1880

DALLAS

(972) 850-4800

KANSAS CITY

(816) 285-7000

NEW YORK

(646) 264-3600

PHILADELPHIA

(215) 597-3282

SAN FRANCISCO

(415) 625-2270

BUREAU OF LABOR STATISTICS

U.S. DEPARTMENT OF LABOR

State and local government participants were commonly 26 weeks at 

a mean percent of earnings of 64 

percent for private industry and 61 

percent for State and local government participants. (See table 2.)

Long-term disability— Employers required 9 percent of private 

industry employees and 18 percent 

of State and local government 

employees to contribute to the cost 

of their long-term disability plan. 

(See chart.) Ninety-three percent 

of private industry workers and 94 

from page 3►

The next issue will feature 

State and local government employee benefits

Life insurance provides cash to beneficiaries of deceased employees. The 

purpose of the benefit is to help beneficiaries pay for burial expenses and to replace 

lost income resulting from the death of 

the employee.

Long-term disability (LTD). Longterm disability plans provide a monthly 

benefit to employees, who due to illness or injury, are unable to work for an 

extended period of time. LTD benefit payments begin after a predetermined period 

of disability (generally 3 or 6 months). 

Payments are made until the end of the 

disability, the employee reaches retirement age, or after a specified number of 

months. 

Short-term disability (STD). Shortterm disability plans (also called sickness 

and accident insurance) provide full, partial, or a combination of full and partial 

pay to employees who are unable to work 

because of a non-work related accident or 

illness. STD benefits are usually paid for 

a fixed number of weeks. The benefit payment is either a percentage of an employee’s earnings or a fixed dollar amount. 

Access to a benefit plan. Employees 

are considered to have access to a benefit 

plan if it is available for their use. For 

example, if an employee is permitted 

to participate in a short-term disability 

plan offered by the employer, he or she 

is placed in a category with those having access to a short-term disability plan, 

regardless of whether he or she chooses to 

participate. 

Flat dollar formula. A formula that 

provides a fixed amount to the beneficiary. Employee earnings have no impact on 

the amount that the beneficiary receives. 

For example, a life insurance plan offers 

a $25,000 flat amount to the beneficiary. 

A varied flat formula provides a fixed 

amount within specified earnings or 

length of service brackets. 

Multiple of earnings formula. A 

benefit formula that provides an amount 

to the beneficiary that is linked to the 

employee’s earnings. The amount that is 

provided is in multiples of an employee’s 

annual earnings. There may be a ceiling or maximum payment allowed. For 

example, a life insurance plan provides 

two times the employee’s annual earnings 

up to a maximum of $150,000. A varied 

multiple of earnings formula provides a 

multiple defined by the earnings or length 

of service bracket. 

percent of State and local government participants received a fixed 

percent of annual earnings benefit, 

which averaged 58.8 percent of 

earnings for private industry workers and 60.8 percent for State and 

local government workers. (See 

table 2.) For workers participating 

in a fixed percent of annual earnings long-term disability plan, 82 

percent of private industry and 64 

percent of State and local government were covered by plans that 

placed a maximum on disability 

benefit amounts. ●

CHART

Life and disability insurance plans: Employee contribution 

requirement, March 2010, in percent

Life insurance Short-term disability Long-term disability

25

0

5

10

15

20

Private industry

State and local government
2 PROGRAM PERSPECTIVES • DECEMBER 2010 U.S. BUREAU OF LABOR STATISTICS 

er-provided life insurance plans in 

March 2010. (See table 1.) Thirtyeight percent of private industry 

employees participated in shortterm disability insurance plans, and 

31 percent had long–term disability 

insurance protection. For State 

and local government workers, 23 

percent participated in short-term 

disability insurance, and 33 percent 

had long-term disability insurance. 

As with most insurance benefits, 

full-time employees were much more 

likely to receive the benefits than parttime employees. Private industry 

workers who received wages in the 

top 25 percent category were more 

likely to participate in these insurance plans than those in the lowest 

25 percent. Additionally, private 

industry access and participation 

typically increased by establishment 

size. Some differences in the percent 

of workers participating in short-term 

and long-term disability insurance 

plans may be due to the presence of 

other benefits that provide similar 

protection such as paid sick leave 

(for short-term illness) and retirement 

plans (for long-term illness). 

Key provisions

In addition to incidence, the National Compensation Survey also 

collects data on selected provisions 

for three benefits:

Life insurance—Only 5 percent of 

private industry employees and 11 

percent of State and local government employees participating in life 

insurance plans had to pay a portion 

of the cost. (See chart on page 4.) 

Basic coverage for 58 percent of private industry participants was a fixed 

multiple of annual earnings, while 36 

percent had a flat dollar amount of 

coverage. (See table 2.) For private 

industry workers where the coverage was a fixed multiple of annual 

earnings, 61 percent had one times 

earnings, and 22 percent had two 

times earnings. Flat dollar amounts 

TABLE 1

Life and disability insurance benefits: Access and participation, private industry and State 

and local government workers, March 2010, in percent

from cover page►

Characteristic

 Life insurance Short-term disability Long-term disability

Access Participation Access Participation Access Participation

Private industry

All workers 59 56 39 38 33 31

Full and part-time status

Full-time 73 71 47 46 42 40

Part-time 15 13 15 15 6 6

Wage category

Lowest 25 percent 26 24 18 17 8 7

Highest 25 percent 81 80 59 58 60 57

Establishment size

1 to 99 workers 43 40 27 26 21 20

100 to 499 workers 71 68 46 45 36 34

500 or more workers 86 85 63 62 61 58

State and local government

All workers 80 78 23 23 35 33

Full and part-time status

Full-time 90 88 25 25 39 38

Part-time 23 22 12 11 12 11

Wage category

Lowest 25 percent 62 59 18 18 27 26

Highest 25 percent 89 86 24 24 39 38
2 PROGRAM PERSPECTIVES • DECEMBER 2010 U.S. BUREAU OF LABOR STATISTICS 

er-provided life insurance plans in 

March 2010. (See table 1.) Thirtyeight percent of private industry 

employees participated in shortterm disability insurance plans, and 

31 percent had long–term disability 

insurance protection. For State 

and local government workers, 23 

percent participated in short-term 

disability insurance, and 33 percent 

had long-term disability insurance. 

As with most insurance benefits, 

full-time employees were much more 

likely to receive the benefits than parttime employees. Private industry 

workers who received wages in the 

top 25 percent category were more 

likely to participate in these insurance plans than those in the lowest 

25 percent. Additionally, private 

industry access and participation 

typically increased by establishment 

size. Some differences in the percent 

of workers participating in short-term 

and long-term disability insurance 

plans may be due to the presence of 

other benefits that provide similar 

protection such as paid sick leave 

(for short-term illness) and retirement 

plans (for long-term illness). 

Key provisions

In addition to incidence, the National Compensation Survey also 

collects data on selected provisions 

for three benefits:

Life insurance—Only 5 percent of 

private industry employees and 11 

percent of State and local government employees participating in life 

insurance plans had to pay a portion 

of the cost. (See chart on page 4.) 

Basic coverage for 58 percent of private industry participants was a fixed 

multiple of annual earnings, while 36 

percent had a flat dollar amount of 

coverage. (See table 2.) For private 

industry workers where the coverage was a fixed multiple of annual 

earnings, 61 percent had one times 

earnings, and 22 percent had two 

times earnings. Flat dollar amounts 

TABLE 1

Life and disability insurance benefits: Access and participation, private industry and State 

and local government workers, March 2010, in percent

from cover page►

Characteristic

 Life insurance Short-term disability Long-term disability

Access Participation Access Participation Access Participation

Private industry

All workers 59 56 39 38 33 31

Full and part-time status

Full-time 73 71 47 46 42 40

Part-time 15 13 15 15 6 6

Wage category

Lowest 25 percent 26 24 18 17 8 7

Highest 25 percent 81 80 59 58 60 57

Establishment size

1 to 99 workers 43 40 27 26 21 20

100 to 499 workers 71 68 46 45 36 34

500 or more workers 86 85 63 62 61 58

State and local government

All workers 80 78 23 23 35 33

Full and part-time status

Full-time 90 88 25 25 39 38

Part-time 23 22 12 11 12 11

Wage category

Lowest 25 percent 62 59 18 18 27 26

Highest 25 percent 89 86 24 24 39 38
GLOSSARY

For additional assistance on 

benefits, contact one of our 

information offices:

NATIONAL: WASHINGTON, DC

(202) 691-6199 TDD: (800) 877-8339

NCSinfo@bls.gov www.bls.gov/ebs

REGIONAL:

ATLANTA

(404) 893-4222

BOSTON

(617) 565-2327

CHICAGO

(312) 353-1880

DALLAS

(972) 850-4800

KANSAS CITY

(816) 285-7000

NEW YORK

(646) 264-3600

PHILADELPHIA

(215) 597-3282

SAN FRANCISCO

(415) 625-2270

BUREAU OF LABOR STATISTICS

U.S. DEPARTMENT OF LABOR

State and local government participants were commonly 26 weeks at 

a mean percent of earnings of 64 

percent for private industry and 61 

percent for State and local government participants. (See table 2.)

Long-term disability— Employers required 9 percent of private 

industry employees and 18 percent 

of State and local government 

employees to contribute to the cost 

of their long-term disability plan. 

(See chart.) Ninety-three percent 

of private industry workers and 94 

from page 3►

The next issue will feature 

State and local government employee benefits

Life insurance provides cash to beneficiaries of deceased employees. The 

purpose of the benefit is to help beneficiaries pay for burial expenses and to replace 

lost income resulting from the death of 

the employee.

Long-term disability (LTD). Longterm disability plans provide a monthly 

benefit to employees, who due to illness or injury, are unable to work for an 

extended period of time. LTD benefit payments begin after a predetermined period 

of disability (generally 3 or 6 months). 

Payments are made until the end of the 

disability, the employee reaches retirement age, or after a specified number of 

months. 

Short-term disability (STD). Shortterm disability plans (also called sickness 

and accident insurance) provide full, partial, or a combination of full and partial 

pay to employees who are unable to work 

because of a non-work related accident or 

illness. STD benefits are usually paid for 

a fixed number of weeks. The benefit payment is either a percentage of an employee’s earnings or a fixed dollar amount. 

Access to a benefit plan. Employees 

are considered to have access to a benefit 

plan if it is available for their use. For 

example, if an employee is permitted 

to participate in a short-term disability 

plan offered by the employer, he or she 

is placed in a category with those having access to a short-term disability plan, 

regardless of whether he or she chooses to 

participate. 

Flat dollar formula. A formula that 

provides a fixed amount to the beneficiary. Employee earnings have no impact on 

the amount that the beneficiary receives. 

For example, a life insurance plan offers 

a $25,000 flat amount to the beneficiary. 

A varied flat formula provides a fixed 

amount within specified earnings or 

length of service brackets. 

Multiple of earnings formula. A 

benefit formula that provides an amount 

to the beneficiary that is linked to the 

employee’s earnings. The amount that is 

provided is in multiples of an employee’s 

annual earnings. There may be a ceiling or maximum payment allowed. For 

example, a life insurance plan provides 

two times the employee’s annual earnings 

up to a maximum of $150,000. A varied 

multiple of earnings formula provides a 

multiple defined by the earnings or length 

of service bracket. 

percent of State and local government participants received a fixed 

percent of annual earnings benefit, 

which averaged 58.8 percent of 

earnings for private industry workers and 60.8 percent for State and 

local government workers. (See 

table 2.) For workers participating 

in a fixed percent of annual earnings long-term disability plan, 82 

percent of private industry and 64 

percent of State and local government were covered by plans that 

placed a maximum on disability 

benefit amounts. ●

CHART

Life and disability insurance plans: Employee contribution 

requirement, March 2010, in percent

Life insurance Short-term disability Long-term disability

25

0

5

10

15

20

Private industry

State and local government