About one-third of all workers were covered by defined contribution plans, which specify employer and employee contributions, but not the level of future benefits. Savings and thrift and deferred profit sharing were the most prevalent defined contribution plans. 7 Section 125 plans. Six percent of all employees were eligible for Section 125 flexible benefits plans, often called cafeteria plans. Flexible benefits plans allow employees to determine how their employers' contributions will be allocated among the benefits offered.
Employees are often able to purchase additional benefits on a salary reduction basis.
10 Other benefits. Among the other benefits studied, job-related education assistance was the most frequently offered. This benefit was available to 46 percent of all workers. Two employer-subsidized health improvement benefits, employee assistance programs and wellness programs, were available to 36 and 19 percent, respectively, of all workers. Employee assistance programs generally provide counseling and referral services for acute conditions, such as alcohol and drug abuse and emotional and financial problems, that affect job performance.