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l
a. 3|io • ^ 4
Employee Benefits in Medium
and Large Firms, 1984
U.S. Department of Labor
Bureau of Labor Statistics
June 1985
n e 'S - U . L IB R A R Y
U .S . D E P O S I T O R Y
Preface
This bulletin presents results of a 1984 Bureau of La
bor Statistics survey of the incidence and provisions of
employee benefits in medium and large firms. This sur
vey—the sixth in an annual series—provides representa
tive data for 21 million full-time employees in a
cross-section of the Nation’s private industries. It was
initially designed to provide the Office of Personnel
Management with information on private sector prac
tices for use in comparisons with benefits of Federal
workers. The survey’s scope, therefore, is the same as
that of an annual Bureau survey of occupational sala
ries in the private sector—National Survey of Profes
sional, Administrative, Technical, and Clerical Pay—
which is currently used in the Federal pay comparabil
ity process for white-collar workers. Appendix A pro
vides a detailed description of the scope and statistical
procedures used in the benefits survey.
The reader is cautioned against analyzing trends be
ginning with a pilot survey in 1979. Due to the experi
mental nature of the initial surveys, differences in the
results reflect not only changes in benefit practices in
private industry, but also improvements in procedures
and techniques since the earlier studies. Nevertheless,
several changes have been identified in this bulletin that
demonstrate actual trends in benefit provisions.
This bulletin was prepared in the Office of Wages
and Industrial Relations by the staff of the Division of
Occupational Pay and Employee Benefit Levels. Field
work for the survey was directed by the Bureau’s As
sistant Regional Commissioners for Operations.
Pictured on the cover of this bulletin is Gone Fishing
by Norman Rockwell, reprinted with permission from
The Saturday Evening Post (c) 1930 by The Curtis Pub
lishing Company.
Contents
Page
Summary........................................................................................................................................
Work schedules..............................................................................................................................
Paid lunch and rest periods...........................................................................................................
Paid holidays................................................................................................................................
Paid vacations................................................................................................................................
Personal leave................................................................................................................................
Short-term disability benefits..........................................................................................................
Sick leave p lan s........................................................... i .............................................................
Sickness and accident insurance ...................................................., ..........................................
Long-term disability insurance......................................................................................................
Health insurance.............................................................................................................................
Hospital coverage.......................................................................................................................
Surgical coverage.........................................................................................................................
Major medical coverage.............................................................................................................
Dental coverage...........................................................................................................................
Mental health coverage...............................................................................................................
Other benefits............................................................................................................................
Employee contributions.............................................................................................................
Funding medium.........................................................................................................................
Life insurance................................................................................................................................
Retirement pension plans...............................................................................................................
Benefit form ulas.........................................................................................................................
Private benefits and Social Security payments...........................................................................
Maximum benefit provisions......................................................................................................
Replacement rates.................................: ....................................................................................
Normal retirement.......................................................................................................................
Early retirement...........................................................................................................................
Disability retirement...................................................................................................................
Postponed retirement.................................................................................................................
Postretirement pension increases................................................................................................
Vesting........................................................................................................................................
Postretirement survivor benefits................................................................................................
Preretirement survivor benefits..................................................................................................
Employee contributions.............................................................................................................
Plan participation requirements....................................................................................................
Insurance p lan s..........................................................................................................................
Private pension p la n s............................
Plan sponsors and collective bargaining........................................................................................
Other benefits................................................................................................................................
1
3
3
3
3
3
3
4
4
5
5
5
6
6
7
8
8
8
9
9
10
10
11
11
11
12
12
14
14
14
15
15
16
16
16
16
16
16
17
Charts:
Percent of full-time employees (or participants) covered, medium and large firms, 1984:
1. Paid time o ff.......................................................................................................................
2. Insurance and pension plans..............................................................................................
3. Major medical plans: Trends in selected deductible amounts, 1979-84...........................
2
2
7
iv
Contents—Continued
Page
4. Health insurance: Selected types of medical care ........................................................
5. Trends in wholly employer-financed health insurance, 1980-84 .................................
8
9
Replacement rates under pension plans based on 30 years of service, medium and
large firms, 1984:
6. Average benefits including and excluding Social Security payments.............................
7. Average benefits under private plans by type of pension form ula.................................
13
13
Tables:
Percent of full-time employees (or participants), medium and large firms, 1984:
1. Summary: Participation in employee benefit program s................................................
2. Work schedule: Number of hours scheduled per w eek ..................................................
3. Paid lunch time: Minutes per day...................................................................................
4. Paid rest time: Minutes per d a y ......................................................................................
5. Paid holidays: Number of days provided each year........................................................
6. Paid holidays: Policy on holidays that fall on regularly scheduled day o f f ...................
7. Paid vacations: Amount provided at selected periods of service...................................
8. Paid holidays and vacations: Average number of d ay s..................................................
9. Paid vacations: Length of service required to take vacation..........................................
10. Paid personal leave: Number of days provided per y ear................................................
11. Short-term disability coverage: Participation in sickness and accident
insurance plans and paid sick leave plans.....................................................................
12. Paid sick leave: Type of provision..................................................................................
13. Paid sick leave: By provision..........................................................................................
14. Paid sick leave: Average number of days at full pay by type of p la n .............................
15. Paid annual sick leave: Average number of days by accumulation
policy and sickness and accident insurance coordination............................................
16. Sickness and accident insurance: Type and duration of payments.................................
17. Sickness and accident insurance: Percent of earnings formula by
maximum weekly benefit ..............................................................................................
18. Long-term disability insurance: Method of determining payment.................................
19. Long-term disability insurance: Duration of benefits....................................................
18
18
18
19
19
19
20
21
21
21
22
22
23
24
25
26
28
29
29
Health insurance:
20. Coverage for selected categories of medical c a re ............................................................ 30
21. Basic hospital room and board coverage by type of benefit payments........................... 32
22. Basic surgical benefits by maximum allowance for selected procedures....................... 33
23. Major medical coverage by amount of deductible and applicable benefit period.......... 34
24. Major medical coverage by coinsurance provisions........................................................ 34
25. Major medical coverage by maximum benefit provisions.............................................. 35
26. Dental benefits by extent of coverage for selected procedures....................... .............. 36
27. Dental benefits by deductible provision ......................................................................... 37
28. Dental benefits by yearly maximum amount of insurance............................................ 37
29. Orthodontic benefits by lifetime maximum amount of insurance................................. 37
30. Vision benefits by extent of benefits.............................................................................. 37
31. Mental health benefits by extent of benefits................................................................... 38
32. Coverage for selected special benefits............................................................................. 38
33. Contributory plans by type and amount of employee contribution............................... 39
34. Funding medium for selected types of coverage............................................................. 40
v
Contents—Continued
Page
T ables—Continued
Life insurance:
35. Method of determining amount of basic life insurance and frequency
of related coverages.......................................................................................................
36. Multiple-of-earnings formulas by amount of basic insurance and
maximum coverageprovisions .....................................................................................
37. Flat dollar insurance by amount of basic insurance.......................................................
38. Effect of retirement on coverage....................................................................................
42
43
43
Private pension plans:
39. Method of determining retirement payments.................................................................
40. Terminal earnings benefit formulas by amount of form ula..........................................
41. Terminal earnings benefit formulas by definition of terminal earnings........................
42. Career earnings benefit formulas by amount of fo rm u la..............................................
43. Dollar amount benefit formulas by amount of form ula................................................
44. Provision for integration with Social Security benefits..................................................
45. Maximum benefit provisions..........................................................................................
46. Average replacement rates for specified final earnings and years of service.................
47. Minimum age and associated service requirements for normal retirement...................
48. Minimum age and associated service requirements for early retirement.......................
49. Early retirement by reduction factor for immediate start of paym ents.........................
50. Provisions for disability retirement.................................................................................
51. Provision for credit for service after age 65 ...................................................................
52. Ad hoc postretirement annuity increases.........................................................................
53. Vesting provisions...........................................................................................................
54. Provision for postretirement survivor annuity...............................................................
55. Provision for preretirement survivor annuity.................................................................
43
44
45
46
46
47
48
49
50
51
52
52
53
54
56
56
57
Length of service requirement for participation:
56. Sickness and accident insurance......................................................................................
57. Long-term disability insurance........................................................................................
58. Health insurance.............................................................................................................
59. Life insurance...................................................................................................................
60. Private pension plans.......................................................................................................
58
58
58
58
59
Type of plan sponsor:
61. Sickness and accident insurance......................................................................................
62. Long-term disability insurance........................................................................................
63. Health insurance.............................................................................................................
64. Life insurance...................................................................................................................
65. Private pension plans.......................................................................................................
59
59
60
60
60
66. Other benefits: Percent of employees eligible.................................................................
61
Appendixes:
A. Technical note.....................................................................................................................
B. Availability of the survey’s data b a se ................................................................................
63
67
VI
41
Employee Benefits in Medium
and Large Firms, 1984
Summary
The 1984 survey collected data on employee work
schedules and developed information on the incidence
and detailed characteristics of 11 private sector em
ployee benefits paid for at least in part by the employer:
Paid lunch and rest periods, holidays, vacations, and
personal and sick leave; sickness and accident, long
term disability, health, and life insurance; and private
retirement pension plans. (See charts 1 and 2.) In addi
tion, data were collected on the incidence of 18 other
employee benefits, including stock, savings and thrift,
and profit sharing plans; nonproduction bonuses; em
ployee discounts; educational assistance; relocation al
lowances; and free or subsidized parking. The major
survey findings are reported in this bulletin.
The survey covered full-time employees in medium
and large establishments (generally those with at least
100 or 250 employees, depending upon the industry).
Because data collection was limited to provisions of
formal plans, the extent of such benefits as rest periods
and personal leave may be understated. Furthermore,
the data show the coverage of benefit plans but not the
actual use of these benefits; for example, that part of
paid sick leave actually used.
Data are presented separately for three occupational
groups—professional-administrative, technical-clerical,
and production workers. The text of this bulletin often
discusses the first two groups jointly, labeled white-col
lar workers, in contrast with production or blue-collar
workers.
Respondents provided information on the number of
workers covered by specified benefit plans. Workers
were counted as covered by wholly employer-financed
plans that required a minimum amount of service prior
to receiving benefits, even if they had not met the mini
mum service requirement at the time of the survey.
Where plans—such as health or life insurance—required
an employee to pay part of the cost (contributory plans),
workers were counted only if they elected the plan and
were paying their share of the cost. Data on insured
benefit plans and private retirement pension plans were
thus limited to “participants.” Plans for which only ad
ministrative costs were paid by the employer were not
included in the survey.1
The great majority of full-time workers within the
scope of the 1984 survey of employee benefits were
provided with health and life insurance and private re
tirement pension plans as well as paid holidays and va
cations (table 1). Although the employer generally paid
the full cost of providing benefits, a greater percent of
employees shared in the cost of health insurance in 1984
than in 1983. Provisions of many employee benefits dif
fered markedly between white-collar and production
workers.
On the average, employees received about 10 paid
holidays each year. The number of days of paid vaca
tion, increasing with years of service, averaged nearly
16 days after 10 years and 21 days after 20 years.
Ninety-four percent of all employees had some pro
tection against loss of income due to short-term disabil
ity—either sick leave or sickness and accident insur
ance, or both. Sick leave generally continued the
worker’s full salary beginning on the first day of an ill
ness or accident, while insured benefits replaced less
than full pay and began after an initial waiting period.
Most employees also had some protection against ex
tended income loss due to disability; 47 percent had
long-term disability insurance, and 46 percent were cov
ered under private pension plans that provided imme
diate disability retirement benefits.
Virtually all of the participants in health insurance
plans were covered for most categories of expenses re
lated to hospital and medical care. Life insurance was
provided for nearly all employees, most commonly for
an amount equal to annual earnings, rounded to the
next $1,000.
Eighty-two percent of the employees in the survey
were covered by private retirement pension plans. Bene
fits were most frequently based on earnings during the
last 5 years of employment. Common eligibility require
ments for normal retirement were: Age 65 with no
specified length-of-service requirement, age 62 with 10
years of service, and 30 years of service with no age
requirement. Virtually all covered employees could re
tire early with a reduced pension, provided they ful
filled minimum age and service requirements (most com
monly, age 55 with 10 years of service).
Funeral leave, military leave, subsidized parking, and
full or partial defrayment of educational expenses were
available to at least three-fifths of the employees. Eli-
’An exception, however, was made in table 38, which tabulates
postretirement life insurance coverage. Plans under which retirees
pay the full cost were included since the guarantee o f insurability at
retirement was, in itself, considered a benefit.
1
Chart 1. Paid time off: Percent of full-time employees covered, medium and
large firms, 1984
Vacations
Holidays
Rest time
Sick leave
Personal leave
Lunch period
0
25
50
75
100
Percent
Chart 2. Insurance and pension plans: Percent of full-time employees covered,
medium and large firms, 1984
Health insurance,
employees
Health insurance,
family
Life insurance
Retirement pension
Sickness and
accident insurance
Long-term disability
insurance
0
25
50
Percent
2
75
100
ing professional-administrative employees generally
provided more vacation days than those for other em
ployees. Sixty percent of the professional-administra
tive employees, for example, became eligible for at least
15 days of vacation after 5 years of service; this com
pared with 32 percent of the production employees.
Nearly all white-collar employees received their regu
lar salaries or earnings during vacation periods. About
seven-eighths of the production employees received
such vacation pay; 13 percent were provided vacation
payments based on a percentage of annual earnings; and
1 percent received lump-sum payments from vacation
funds.
Virtually all employees covered by vacation plans
had to work for a specified period before being able to
take a vacation. The most prevalent length-of-service
requirement was 6 months for white-collar employees
and 1 year for production employees.
Seventeen percent of the plan participants were al
lowed to cash in unused vacation time. This option was
offered to 9 percent of the white-collar participants and
25 percent of the production participants.
Anniversary-year bonus vacation days, such as an ex
tra week of vacation at 10 and 20 years of service, were
included in the count of regular vacation time. Extended
vacation plans, however, were excluded.2
gibility for profit sharing, savings and thrift, and stock
ownership plans was not as common; nevertheless, avail
ability of these capital accumulation plans has grown
substantially in recent years.
Work schedules
(table 2)
Straight-time work schedules of 40 hours per week
applied to 85 percent of the employees covered by the
survey. (Work schedules included lunch and rest pe
riods only if they were paid.) Nineteen percent of the
professional-administrative employees, 27 percent of the
technical-clerical employees, and 6 percent of the pro
duction workers had shorter workweeks. Less than 2
percent of the work force was scheduled to work other
than a 5-day week.
Paid lunch and rest periods
(tables 3 and 4)
Nine percent of the employees received formal paid
lunch periods, and 73 percent were provided formal
rest time, such as coffee breaks and clean-up time. Both
benefits were more common among production em
ployees than among the two other occupational groups.
Paid rest time, averaging 26 minutes a day for each
occupational group, was provided most commonly as
two daily breaks of 10 or 15 minutes each. Production
employees who were covered by paid lunch plans usu
ally received 20 or 30 minutes a day, averaging 24 min
utes. The 3 percent of white-collar workers eligible av
eraged 37 minutes of paid lunch time each day.
Personal leave
(table 10)
Formal personal leave, which allows employees to
be absent from work with pay for a variety of reasons
not covered by other specific leave plans, was provided
to slightly less than one-fourth of the employees. Nearly
one-third of the white-collar employees received per
sonal leave, twice the proportion of production em
ployees with this benefit. Most commonly, employees
provided personal leave were eligible for 1 to 5 days,
averaging 3.6 days per year. In cases where personal
leave was part of an “annual leave” plan (combined
vacation and personal leave) and could not be shown
separately, it was reported as vacation time. The sur
vey did not cover the extent of informal personal leave.
Paid holidays
(tables 5, 6, and 8)
Virtually all full-time employees in each occupational
group were provided paid holidays, averaging 9.8
days—the same as in 1983. Extended holiday plans, such
as the Christmas-New Year’s Day period provided in
the auto industry, floating holidays, and “personal holi
days,” such as employee birthdays, were included in
the holiday plans reported.
When a holiday fell on a scheduled day off, such as
a Saturday or Sunday, another day off was regularly
granted to 86 percent of the employees. Most of the
remaining workers received either another day off or
an additional day’s pay, depending upon the day on
which the holiday fell.
Short-term disability benefits
(tables 11-17)
Workers may be protected against loss of income due
to a short-term disability through paid sick leave, usu
ally providing 100 percent of their normal earnings, or
sickness and accident insurance, commonly replacing
Paid vacations
(tables 7, 8, and 9)
After 15 years of service, full-time employees com
monly received 20 days of paid vacation annually.
Length-of-vacation provisions averaged 8.6 days after
1 year; 15.6 days after 10 years; and 22.3 days after 25
years of service, virtually unchanged since 1980—the
first year such estimates were developed. Plans cover
2 Under collective bargaining agreements negotiated in 1983 in the
aluminum and can industries, employees continue to receive extended
vacations. The aluminum contract provides for 10 weeks off with 13
weeks' pay, in addition to regular vacation, every seventh year. The
can agreement calls for 13 weeks’ paid vacation, including regular
vacation, every 5 years beginning with the fifteenth year of service.
Contract negotiations in 1983 between the Steelworkers and the ma
jor steel companies eliminated provisions for extended vacation plans.
3
under per-disability plans, had partial pay benefits avail
able after full-pay benefits ended. Another 2 percent of
the participants had only partial-pay benefits available.
Sick leave plans commonly had a short service re
quirement, generally 3 months, before new employees
became eligible for benefits. After attaining eligibility,
83 percent of the participants with 1 year of service
were in plans providing benefits on the first day of ill
ness. The remainder typically had to wait 1 to 5 work
days, with the waiting period often decreasing to zero
days after 10 or 15 years of service.
50 to 70 percent of pay. Short-term disability protec
tion was available to 94 percent of all employees in the
survey, including 24 percent covered by both sick leave
and sickness and accident insurance. Paid sick leave
was most often provided to white-collar workers, while
sickness and accident insurance was more often a bene
fit for production workers.
Employers coordinate sick leave benefits with sick
ness and accident insurance either by starting insurance
benefits after sick leave pay has ended, or by paying
both benefits concurrently. When payments are made
from both sources, sick leave pay is reduced by the
amount of the insurance benefits so that the total bene
fit does not exceed full salary. Regardless of the link
age approach, employers offering sickness and accident
insurance tend to allow fewer sick leave days than those
without such insurance. At 5 years of service, for ex
ample, annual sick leave plans coordinated with insur
ance averaged 15 days at full pay—23 days fewer than
similar plans without insurance. This gap widened as
years of service increased.3
Sickness and accident insurance. Half of all employees
were protected against absences from work due to
short-term disabilities by sickness and accident insur
ance plans. More than four-fifths of such employees had
their benefits fully paid by their employer. Those who
were required to contribute toward the cost of cover
age most often paid a fixed amount, usually between $2
and $3 a month. Most of the others paid a percent of
monthly earnings, or had the cost included in the pre
mium of an insurance package.
Payments under sickness and accident insurance plans
were either a percent of employee earnings or a sched
uled dollar amount. The percent of earnings was usu
ally fixed—almost always between 50 and 70 per
cent—although percents varying by service and length
of disability were also observed. Plans paying a percent
of earnings covered 82 percent of the white-collar par
ticipants, compared with 36 percent of the blue-collar
participants. These plans often had a dollar limit on the
amount of the weekly benefit available; such limits have
risen steadily since they were first recorded in 1981.
Production workers were the most common recipients
of scheduled dollar benefits, which provided either a
fixed weekly amount (ranging from under $60 to over
$140), or varying weekly benefits (usually based on
earnings).
The maximum weeks of coverage for each disability
were fixed for all but 11 percent of participants, for
whom duration of coverage varied by length of serv
ice. Of those participants with benefits lasting for a fixed
period, most had 26 weeks of coverage. Other common
periods were 13 and 52 weeks.
Sickness and accident insurance, unlike sick leave,
usually requires a waiting period before benefits begin.
The most common provision requires an employee to
be out of work due to illness or injury some short pe
riod, usually 3 to 7 days, before payments begin. Wait
ing periods may be shortened or eliminated entirely for
employees involved in an accident or hospitalized.
Workers in two States, New Jersey and New York,
are covered by mandatory temporary disability insur
ance plans that are at least partially employer financed.
Both of these State plans pay benefits based on a per
centage of the worker’s earnings for up to 26 weeks
Sick leave plans. Seventy-two percent of the employ
ees covered by paid sick leave plans were allowed a
specified number of days per year (annual sick leave
plans). Another 21 percent of the participants were pro
vided sick leave for each occurrence of illness (per-disability plans), while most of the remainder were cov
ered by both annual and per-disability benefits. The
number of days of sick leave granted varied widely by
the type of sick leave plan as well as by specific pro
visions of each plan.
For employees covered by annual sick leave plans,
the number of days may be uniform throughout a
worklife or increase with seniority. The graduated bene
fits showed sharp increases in the first 5 years of serv
ice, more moderate increases through 15 years, and lev
eled off thereafter.
Because annual sick leave plans do not renew bene
fits after each illness, nearly two-fifths of the employ
ees covered were allowed to accumulate unused sick
leave (cumulative plans). Such plans typically granted
fewer days per year than plans in which unused days
were not accumulated. For example, at 20 years’ serv
ice, cumulative annual plans averaged 19.1 days at full
pay, while noncumulative plans averaged 61.7 days.
Most per-disability sick leave plans increased bene
fits with years of service, and generally provided more
days of paid leave than annual plans. The average num
ber of days at full pay was 48.7 at 1 year of service,
71.2 at 5 years of service, 101.3 at 15 years of service,
and 130.9 at 25 years of service.
About one-fourth of sick leave participants, usually
3 For further analysis o f short-term disability protection, see William
J. Wiatrowski, “Employee Income Protection Against Short-term
Disability,” Monthly Labor Review, February 1985, pp. 32-38.
4
cent). Seven-tenths of the LTD participants were lim
ited by these income ceilings, by the dollar maximums
in plans that pay a percent of earnings, or by a combi
nation of both.
with a limit on the weekly benefit ($135 in New York
and $158 in New Jersey during the 1984 survey period).4
Long-term disability insurance
(tables 18 and 19)
Long-term disability insurance (LTD) continues the
income of employees during extended periods of dis
ability. Generally, LTD begins after sick leave and sick
ness and accident insurance are exhausted and contin
ues as long as the employee remains disabled, or until
retirement age. If disabled after age 60, however, LTD
benefits usually continue for 5 years or to age 70, which
ever is earlier.
Forty-seven percent of the employees covered by the
study had LTD insurance; one-fourth of the partici
pants were required to contribute toward the cost of
the plans. The amount of LTD insurance usually var
ied by earnings, as did the cost to the employee. When
a flat rate was charged, employees usually paid under
0.5 percent of their earnings. In plans charging a
monthly amount per $100 of covered earnings, the rate
was normally less than 60 cents.
The degree of participation varied widely among the
employee groups, with white-collar workers twice as
likely to have LTD insurance as production workers.
However, many employees not covered under LTD
insurance are eligible for an immediate disability pen
sion through their retirement plan; 46 percent of the
employees (nearly three-fifths of the production
workers) were covered by immediate disability retire
ment provisions.
Long-term disability benefits were usually 50 or 60
percent of monthly pay. Most of the plans that pay a
percent of predisability earnings had maximum payment
limitations—commonly $1,500 to $5,000 a month.
Slightly over one-fifth of the participants were in
plans that provided a benefit which was not a fixed
percent of earnings, but was a variable percentage of
earnings, a flat dollar amount, or a scheduled dollar
amount dependent on earnings, length of service, or
length of disability. Production employees were twice
as likely to be covered under these formulas as
white-collar employees.
A ceiling on income during disability was a common
limitation to LTD payments, regardless of the type of
plan. These ceilings affected benefits only if the amount
payable from the LTD plan plus income from other
sources, such as rehabilitative employment and family
Social Security payments, exceeded a specified percent
age of predisability earnings (frequently 70 to 75 per
Hospital coverage. The most costly component of
health care is that provided by a hospital. Nearly one-
4Both States permit an employer to substitute a private plan for the
State plan if the benefits provided are equivalent or more liberal. In
New York, many employers agree to pay the employee’s share of
plan costs. California and Rhode Island also have mandated tempo
rary disability insurance plans, but these plans require no employer
contribution and, thus, are not included in this survey.
5 The deductible is a specified amount o f medical expense that an
insured person must incur before benefits will be paid by the plan.
Coinsurance is a provision where both the (insured) participant and
the insurer share, in a specified ratio, the health care expenses result
ing from an illness or injury. The coinsurance percentage is the share
paid by the plan.
Health insurance
(tables 20-34)
Almost all of the workers covered by the survey
were provided health insurance. Sixty-three percent of
the workers were in plans which extended coverage to
retirees, although retiree contribution requirements and
the level of coverage maintained (including Medicare)
sometimes varied from those of active workers.
Virtually all of the participants in health insurance
plans were covered for the major categories of medi
cal care, such as hospital room and board, care by phy
sicians and surgeons, diagnostic X-ray and laboratory
work, prescription drugs, and private duty nursing.
Among benefits less commonly provided were vision
care (30 percent), hearing care (14 percent), and rou
tine physical exams (8 percent). Unlike most other em
ployee benefits, there were few differences in health
insurance provisions among employee groups.
In line with efforts to contain costs of health care,
an increasing number of plans provided less expensive
alternatives to a hospital stay. Coverage for treatment
in extended care facilities increased from 58 percent of
plan participants in 1983 to 62 percent in 1984; cover
age for home health care rose from 37 percent to 46
percent; and hospice care, an alternative to hospitaliza
tion for terminally ill patients, was available to 11 per
cent in 1984, the first year this item was tabulated.
The various categories of medical care are covered
under 1 of 3 benefit arrangements: Basic benefits only,
which generally have no deductible or coinsurance pro
visions;5 major medical benefits only, which usually
have both deductible and coinsurance provisions; or
basic benefits plus major medical. In-hospital care was
most commonly covered by an arrangement that of
fered basic coverage plus supplemental coverage under
major medical benefits. Certain categories of medical
care, such as private duty nursing, visits to a physician’s
office, and prescription drugs, usually were covered
only under major medical benefits. Dental and vision
care were almost exclusively covered as basic benefits.
Regardless of the benefit arrangement used, most health
plans limited the size of benefit payments.
5
Major medical coverage. Major medical benefits, pro
vided to nine-tenths of the health insurance participants,
generally covered a wide range of medical services both
in and out of the hospital. There are two types of ma
jor medical plans: One type supplements basic benefits
by covering expenses which exceed basic benefit limi
tations or by covering expenses not paid by the basic
plan; the other type is comprehensive and stands alone
without basic plan coverage. Comprehensive major
medical policies have been embraced by employers
seeking to contain costs of providing health care by
eliminating first-dollar coverage.8
With very few exceptions, major medical benefits
were not paid until the participants paid a certain amount
of the expenses. The purpose of this deductible portion
is to keep the premium cost down and discourage un
necessary use of medical services. A deductible amount
of $100 has been the most common since the survey’s
inception in 1979, applying to nearly half of all plan
participants. However, 21 percent were required to pay
deductibles of $150 or more in 1984, up from 12 per
cent in 1983 and 8 percent in 1982 (chart 3). The fre
quency of higher amounts was lower for production
workers.
Once the worker meets the deductible requirement,
the plan pays a specified percentage (coinsurance) of
incurred expenses. Almost seven-eighths of the partici
pants were in plans that paid 80 percent of expenses,
with the remaining 20 percent to be paid by the worker.
For three-fourths of the participants, however, the per
centage paid by the plan increased to 100 percent after
a specified level of expenses was incurred during a year.
For example, a plan might pay 80 percent of the first
$5,000 of covered expenses and 100 percent thereafter,
thus limiting the employee’s “out-of-pocket” cost to
$1,000 (in addition to the deductible). Plan limits such
as days of coverage, number of visits a year, or pay
ment schedules, however, are still in effect after the
specified level of expenses has been reached.
By requiring employees to help pay the initial cov
ered expenses during an illness or accident, insurers of
major medical policies are able to absorb the full ex
penses of an infrequent catastrophic illness without sub
stantial increases in premium costs to the employer or
worker. Growth of this catastrophic coverage has in
creased rapidly since 1979, when less than one-half of
the major medical participants were covered.9
Benefits for 82 percent of major medical participants
were subject to a ceiling on the amount payable by the
plan, usually a lifetime maximum. The most common
6“Health Spending Trends in the 1980s: Adjusting to Financial In
centives,” Health Care Financing Review, Spring 1985 (U.S. Depart
ment o f Health and Human Services, Health Care Financing Admin
istration), pp. 1-26.
7This limitation was commonly found in “comprehensive major
medical plans.” These plans usually covered hospital expenses in full
up to a specified dollar amount per confinement (typically between
$2,000 and $5,000) and 80 percent thereafter. For this study, the fullcoverage portion was treated as a basic benefit and the 80-percent
portion as major medical.
8Comprehensive major medical plans can be broken down into strict
and modified varieties. All expenses covered are subject to the de
ductible and coinsurance provisions under the strict version whereas
the modified version might cover hospital, or hospital and surgical,
expenses in full up to a specified dollar amount without the applica
tion o f a deductible. (Also, see footnote 7.)
9Recent trends in major medical benefits are examined by Douglas
Hedger and Donald Schmitt in “Trends in Major Medical Coverage
During a Period o f Rising Costs,” Monthly Labor Review, July 1983,
pp. 11-16.
half of all personal health care expenditures in the United
States are for hospital care.6Virtually all of the partici
pants in health plans analyzed in this study received
coverage for hospital expenses. Although most employ
ees’ insurance covers all initial hospital room expenses,
a growing minority must pay part of the first-dollar
costs. The percent of health plan participants that have
only major medical coverage and, therefore, are re
quired to pay both an initial deductible and a percent
age of subsequent hospital room charges increased to
28 percent in 1984, from 19 percent in 1983 and 12 per
cent in 1982. Of the 71 percent with basic hospital cov
erage, 5 percent must pay a specified amount per con
finement or, in some cases, pay for the first day of
confinement.
Of those that received basic hospital coverage, 94
percent were in plans that paid room and board ex
penses up to the semiprivate rates, providing some pro
tection against rising hospital charges. Nearly ninetenths of the participants in basic hospital plans had
limited duration of coverage. Seven-tenths had plans
which specified the maximum number of days covered
per confinement, most commonly 120 or 365 days. Most
of the remaining plans limited the duration of coverage
by specifying a maximum dollar amount per confine
ment or per year.7 Additional coverage was usually
available under a major medical plan for cases that ex
ceeded these limitations.
Surgical coverage. Seventy-one percent of health plan
participants had basic coverage for surgery in 1984.
Seven-tenths of these participants had plans with pay
ments based on the “usual, customary, and reasonable”
charge for the procedure performed, up from
three-fifths in 1979. Although most of these plans paid
100 percent of such charges, slightly over one-fifth of
the participants were in plans that paid between 80 and
95 percent or imposed an overall dollar limit on surgi
cal payments. The remaining participants with basic
surgical benefits were covered by a schedule of pay
ments, listing the maximum amount covered for each
operation. Charges in excess of the scheduled amount
were usually covered by a major medical plan.
6
Chart 3. Trends in selected deductible amounts: Percent of full-time participants in major
medical plans, medium and large firms, 1979-84
Percent
provided at 50 percent of the usual, customary, and
reasonable charge.
About one-fourth of the dental plan participants were
offered reimbursement based on a schedule of cash al
lowances. In this type of arrangement, each procedure
is subject to a specified maximum dollar amount that
can be paid to the participant. Preventive procedures
were less likely to be subject to this type of schedule
than restorative procedures.
Two percent of dental plan participants had services
covered by an incentive schedule. Under this arrange
ment, the percentage of dental expenses paid by the
plan increases each year if the participant is examined
regularly by a dentist.
Unlike other basic health benefits, participants in den
tal plans were typically required to pay a specified de
ductible amount before the plan paid any benefits. The
most common requirement was a $25 or $50 deductible
to be met by the participant each year. However, some
plans required the participant to pay a deductible (usu
ally $50) only once while a member of the plan rather
than every year. White-collar workers were more likely
than production workers to have plans with deductible
requirements.
Ninety-three percent of dental plan participants were
enrolled in plans that limited the amount of payment
each year by specifying a yearly maximum benefit.
Many plans have raised their limits in recent years—63
limitation was $250,000. However, since many plans
specified higher amounts, the average lifetime maximum
was $486,000—an increase of nearly $100,000 since 1983
and $150,000 since 1982.
Dental coverage. The dramatic increase in em
ployer-provided dental care slackened in 1984, as the
incidence among professional-administrative workers
remained stable. Gains, however, continued for the
other two occupational groups. Over three-fourths of
the participants in health insurance plans received cov
erage for dental expenses, compared with approximately
two-thirds in 1982 and one-half in 1979.
Nearly all dental plans covered a wide range of serv
ices including examinations, X-rays, and restorative pro
cedures such as fillings, periodontal care, and inlays.
Plans covering orthodontic expenses, at least for de
pendent children, covered 72 percent of employees with
dental benefits in 1984.
Dental payments were most commonly based on a
percentage of the usual, customary, and reasonable
charge for a procedure. The percentage covered by a
plan generally depended on the type of procedure per
formed. Lower cost procedures such as examinations
and X-rays were usually covered at 80 or 100 percent.
Fillings, surgery, and periodontal care were most likely
to be covered at 80 percent. More expensive proce
dures—inlays, crowns, and orthodontia—were often
7
Chart 4. Coverage for selected types of medical care: Percent of full-time participants in
health insurance plans, medium and large firms, 1983-84
Dental care
Extended care
facility
Alcoholism
treatment
Drug abuse
treatment
Home health
care
Second surgical
opinion
Hearing care
0
25
50
Percent
percent of employees with dental benefits had yearly
maximums of $1,000 or greater in 1984, up from 44 per
cent in 1980. Orthodontic services usually were subject
to lifetime maximums, which have increased since first
tabulated in 1980. Lifetime maximums of $1,000 or more
for orthodontia applied to 43 percent of participants in
dental plans providing this benefit in 1984, up from 17
percent in 1980.
100
reflecting employer efforts to contain surgical costs,
covered 38 percent of the participants—up from 32 per
cent the previous year (chart 4).
The incidence of alcohol and drug abuse provisions
increased sharply. The percent of participants covered
for alcoholism treatment grew from 53 to 61 percent
between 1983 and 1984, and for drug abuse treatment,
from 43 to 52 percent.
Thirty percent of health insurance participants were
covered for vision care expenses in 1984. Production
workers were the most likely to have this benefit, and
their plans typically were more comprehensive than
those for white-collar workers.
Hearing care was available to 14 percent of partici
pants in 1984, up from 10 percent the previous year.
Mental health coverage. Slightly over one-half of the
participants in plans with mental health benefits had
more restrictive hospital coverage for mental illnesses
than for physical ailments. These plans usually reduced
the duration of the hospital stay (often 30 days for men
tal health care in basic hospital benefits, compared to
120 or 365 days for other illnesses) or imposed a sepa
rate maximum on covered hospital expenses (such as a
lifetime maximum of $25,000 on mental health benefits).
Even more restrictive was coverage for mental health
care outside the hospital (psychiatric office visits). Out
patient mental health care was usually covered in the
major medical portion of a plan, where ceilings were
often on the amounts payable for each visit and/or each
year, and where the coinsurance for nonhospital treat
ment was often 50 percent, compared to 80 percent for
physical illnesses.
Other benefits.
75
Employee contributions. Cost-sharing measures taken
by some employers have not been limited to elimina
tion of basic coverage and inclusion of higher major
medical deductibles. The percent of employees whose
health insurance premiums are wholly paid by their
employers has also declined (chart 5). Sixty-two per
cent of health insurance participants had employee cov
erage wholly financed by their employers in 1984, down
9 percentage points in 2 years. Forty-one percent also
could receive fully employer-paid coverage for their
dependents, compared with 51 percent when first tabu
lated in 1980.
Provisions for second surgical opinions,
8
Chart 5. Trends in wholly employer-financed health insurance: Percent of full-time
employees covered, medium and large firms? 1980-84
Percent
fits. Employers commonly contract with commercial
insurers to protect their self-insured plans against
medical claims exceeding a predetermined maximum
dollar amount.
About 5 percent of the health insurance participants
covered by the survey were enrolled in Health Main
tenance Organizations (HMO’s). An HMO is a prepaid
health care plan that delivers comprehensive medical
services to enrolled members for a fixed periodic fee.10
Exact data on the amount of an employee’s contri
butions for health benefits sometimes were not avail
able because payroll deductions applied to an insurance
policy covering both health insurance and one or more
other benefits. However, where the amount was re
ported, employee premiums for single and family cov
erage averaged approximately $12 and $36 a month,
respectively—up 17 and 10 percent from 1983. In some
instances, included in the calculation of average em
ployee premiums, employees contributed only for a sup
plemental plan, such as an optional dental plan financed
jointly by employer and employees. Employee pre
miums were slightly higher for technical-clerical par
ticipants than for the other two groups.
Life insurance
(tables 35-38)
Nearly all full-time employees within the scope of
the survey participated in life insurance plans in 1984;
four-fifths had the cost of a basic plan paid wholly by
the employer. Life insurance coverage has improved
since 1979, either through an increase in specified
amounts of insurance or through a liberalization of the
formula for determining benefits.
Basic coverage for nearly two-thirds of all life insur
ance participants was based on their earnings, enabling
the level of protection to automatically increase with a
rise in pay. Earnings-based formulas were much more
prevalent among white-collar workers (82 percent) than
Funding medium. Employers typically arrange for
health care coverage of their employees through the
purchase of commercial insurance policies or Blue
Cross-Blue Shield plans. These arrangements covered,
for example, 67 percent of the health insurance partici
pants with basic hospitalization benefits in 1984, and 63
percent of those with major medical benefits.
Independent health plans, however, have been grow
ing in importance. In 1984, at least one-fourth of the
workers receiving the benefits tabulated in table 34 were
under self-insured plans of individual employers or la
bor-management groups. Such self-insurance was most
prominent as a source of major medical and dental bene
10 HMO plans and plans provided through the more traditional health
insurers are compared by Allan Blostin and William Marclay in
“HMOs and Other Health Plans: Coverage and Employee Premiums,”
Monthly Labor Review, June 1983, pp. 28-33.
9
ees, ranging from 7 percent of professional-administra
tive workers to less than 3 percent of production
workers, were participants in these plans.
Another kind of coverage sometimes available to the
workers is life insurance on their spouses and unmar
ried dependent children. One-sixth of life insurance par
ticipants had employer-financed dependent coverage in
1984; in most cases, the employer paid all of the cost.
Nearly all plans covered dependent children as well as
spouses. The most common coverage for death of ei
ther a spouse or a child was a flat amount of $1,000.
Higher amounts, however, were available more often
for spouses than for children; spouse coverage of $2,000
or more applied to nearly one-half of the participants
with dependent life insurance, but similar coverage for
a child applied to only one-fifth of these workers. In
stead of a flat amount, the coverage for a child fre
quently increased at specified ages. For example, a child
could have no coverage until 14 days old, then $250
until 6 months, followed by $500 up to a year, and
$1,000 after a year.
After retirement, basic life insurance continued until
death for 64 percent of all participants; the preretire
ment amount of insurance, however, was reduced in
nearly all instances. Other forms of life insurance—ac
cidental death and dismemberment, supplemental, and
dependent coverage—were seldom available after
retirement.
among blue-collar workers (45 percent). The most com
mon method of tying life insurance protection to earn
ings was to multiply the employee’s annual earnings by
a factor of 1 or 2 and round the product to the next
$1,000. Two-fifths of all employees in multiple-of-earnings plans had insurance equal to annual earnings.
Nearly as many, however, had coverage equal to twice
annual earnings. Professional-administrative partici
pants had the highest coverage, with multiples of two
or more times their earnings commonly found. Multiple-of-eamings formulas tended to be higher when em
ployee contributions were required, typically providing
insurance at two or more times earnings."
There was no upper limit on life insurance for onehalf of participants in plans based on earnings. Where
limits existed, the proportion of employees with maximums under $100,000 has declined from one-half to
one-fifth and the percent with maximums over $250,000
has increased correspondingly since 1979, the first year
of the survey.
Most of the remaining life insurance plan participants
(one-third of the total) had a flat amount of insurance,
regardless of earnings. Fifty-three percent of all pro
duction worker participants were covered by a uniform
amount, compared with 15 percent of white-collar
workers. While usually providing much smaller
amounts of insurance than earnings-based formulas, flat
amount coverage has improved. Participants in plans
providing benefits of less than $5,000 decreased from
27 percent in 1979 to 15 percent in 1984; most of the
offsetting increase was in amounts of $20,000 or more,
which, during the same period, grew from 2 to 11 per
cent of workers insured by flat amounts.
If a participant became totally disabled, life insurance
in most plans was continued, either for life or until age
65. For a small number of plans, the amount of cover
age was payable to the disabled employee in lump-sum
or installment form. To qualify under disability provi
sions, the employee was usually required to be under a
specified age (commonly age 60) at the time of disability.
Three-fourths of all life insurance participants had
additional insurance coverage if accidental death or dis
memberment occurred. The amount of insurance was
usually doubled in the case of accidental death.
In addition to basic coverage, some employers of
fered their workers supplemental life insurance that was
at least partially employer financed. The typical sup
plemental plan provided insurance in multiples of 1 to
3 times annual earnings. Only 4 percent of the employ-1
Retirement pension plans
(tables 39-55)
Eighty-two percent of the employees in the survey
were covered by private retirement pension plans, with
the employer usually paying the entire cost. The per
cent of employee coverage was slightly lower for pro
duction workers than for the other two groups.
11 The employee contribution rate was commonly expressed as a
fixed rate for each $1,000 o f insurance. Reported rates varied widely
from 3 cents to 67 cents per $1,000; three-fifths o f the participants
with fixed rates paid less than 30 cents per $1,000. Data were not
available for almost one-third o f contributory plan participants, how
ever, because payroll deductions sometimes applied to an insurance
policy covering life insurance and one or more other benefit areas.
10
Benefit formulas. Earnings-based formulas applied to
nearly seven-tenths of the employees covered by pen
sion plans. These formulas pay a percent of the em
ployee’s annual earnings per year of service, but may
differ in the calculation of annual earnings as well as in
the rate paid per year of service. For 21 percent of the
participants with earnings-based formulas, an average
of career earnings was used; for the remainder, pensions
were based on earnings in the final years of employ
ment (terminal earnings formula). Terminal earnings
were defined as the average over a 5-year period for
86 percent of participants with terminal earnings for
mulas. Such formulas usually designated the 5 consecu
tive years with the highest earnings out of the last 10
before retirement.
A majority of participants with earnings-based for
mulas—just over half with terminal earnings and almost
two-thirds with career earnings formulas—were in plans
that applied rates that varied according to service, earn
ings, or age. Career earnings formulas, for example,
Fifty-six percent of all participants were in plans
where benefit formulas were “integrated” with Social
Security. Terminal earnings formulas of integrated plans
tended to adopt the offset approach, while career earn
ings formulas tended to incorporate the excess approach.
Dollar amount formulas were rarely coordinated with
Social Security; blue-collar employees, therefore, were
less likely to have integrated benefits.13
typically applied one rate to annual earnings below a
specified amount, and a higher rate above that amount.
The balance of formulas applied a uniform rate to all
earnings. These uniform rates averaged 1.67 percent per
year of service in terminal earnings formulas and 1.45
percent in career earnings formulas. Thus, terminal earn
ings formulas not only provide a higher earnings base
than career formulas,12but the percentage rates also are
often higher. However, benefits under a terminal earn
ings formula were more likely to be offset by a retiree’s
Social Security payments. (See next section.)
Most plans that did not use a percent-of-earnings
benefit formula specified a dollar amount to be paid for
each year of service, such as $15 monthly per year of
service, yielding a pension of $450 after 30 years. Dollar-amount formulas applied to 28 percent of pension
plan participants. While the dollar amount in these for
mulas frequently varied with an employee’s earnings,
the predominant method was to multiply a uniform dol
lar amount by years of service. Uniform amounts cred
ited per year averaged $14.44 a month.
The basis of payment differed sharply by employee
group. While a large majority of white-collar workers
were provided earnings-based pensions, dollar-amount
formulas applied to half of the production employees.
Thirty-seven percent of all participants were in pen
sion plans providing benefits from either primary or al
ternative formulas, whichever was greater. Alternative
formulas were often included to provide at least a mini
mum level of benefits for persons with short service or
low earnings. For example, a plan may have a primary
formula of 1.25 percent of career average earnings times
years of service, and an alternative formula of $15 a
month for each year of service. In this case, the alter
native formula would provide a higher benefit for per
sons with career average annual earnings less than
$14,400.
Maximum benefit provisions. The Employee Retire
ment Income Security Act of 1974 (ERISA) places ceil
ings on the size of annual pension benefits; this restric
tion largely affects only highly compensated employ
ees. Many private pension plans, however, have provi
sions that restrict benefit levels for all participants. For
example, one-third of participants were in plans that
limited the number of years of service included in bene
fit computation; maximums of 30 or 35 years were most
common. For one-tenth of the participants, annual pen
sions (usually including Social Security payments) could
not exceed a specified percent of average annual career
or terminal earnings.
Replacement rates. A commonly used indicator of pen
sion adequacy is the portion of a retiree’s final year’s
earnings that is “replaced” by the retirement benefit.
To calculate replacement rates under 1984 pension
plans, the maximum private benefit under each surveyed
plan, not reduced for early retirement or joint-and-survivor annuity, was determined under several assumed
combinations of final annual earnings and years of serv
ice. These benefit levels were then expressed as per
cents of earnings in the last year of employment. The
calculations assume employees retired on January 1,
1984, and final earnings are for 1983.14
Table 46 presents average replacement rates result
ing from private pension plans alone and in combina
tion with primary Social Security benefits (that is, ex
cluding benefits for spouse and other dependents).15For
private pension formulas that are integrated with So
cial Security and for computation of Social Security
benefits, the worker is assumed to have retired at age
65 and paid into Social Security for 40 years. (For
workers who reached age 65 in 1984, however, the So
cial Security benefit was the same for workers with
Private benefits and Social Security payments. Em
ployers providing private pension plans also share the
cost of Social Security coverage equally with their em
ployees. Because many plan sponsors feel that private
pension and Social Security benefits should not be
duplicative, formulas for calculating private pensions
often contain an offset provision requiring part of the
Social Security pension to be subtracted from the an
nuity. Other plans have “excess” formulas that apply
lower rates to an employee’s earnings below a specified
level (which is either the Social Security taxable wage
base—usually the career average—or a dollar amount
equal to a past taxable wage base).
13For a comprehensive analysis o f formulas with Social Security
integration characteristics, see Donald Bell and Diane Hill, “How
Social Security Payments Affect Private Pensions,” Monthly Labor
Review, May 1984, pp. 55-60.
14Earnings histories, necessary for applying the pension formulas,
were constructed for each final earnings level based on data provided
by the Social Security Administration.
15The Social Security spouse benefit, which is 50 percent o f the
primary benefit, is paid in addition to the primary benefit while both
partners are alive (unless the spouse is eligible for a larger primary
benefit). Upon death o f either partner, the primary benefit is then
continued to the surviving spouse until death or remarriage.
12An employee who worked 30 years with a 5-percent pay increase
each year and who earned $25,000 in the last year o f service would
have career average earnings o f $ 13,451 a year, while the final 5-year
average would be $22,730. The difference between the career and
final average lessens with shorter lengths o f service.
11
were tabulated for this survey; if one alternative did
not specify an age, it was the formula tabulated.)
similar final earnings who had 25 or more years under
Social Security.)
Chart 6 displays replacement rates based on 30 years
of service for each of the earnings assumptions. Except
for the lowest earnings assumption ($15,000), the pri
vate pension plan replaced on average about 27 percent
of the final year’s earnings; the rate for $15,000 was
about 31 percent.
When combined with primary Social Security pay
ments available at age 65, however, replacement rates
differed substantially as earnings increased—ranging
from nearly three-fourths at the lowest assumed level
to just under one-half at the highest earnings level com
puted. Except for the two highest assumed levels of fi
nal earnings ($35,000 and $40,000), the primary Social
Security benefit was larger than the average private
pension.
Although private pension replacement rates for all
employees changed little as the final earnings assump
tion increased, rates for production workers dropped
10 percentage points. Chart 7 provides an explanation:
Half of all production workers have dollar amount for
mulas, paying workers with the same years of service
the same benefit, regardless of earnings history. The
result is a sharp decrease in the replacement rate as fi
nal earnings increase. Average replacement rates for
earnings-based formulas, on the other hand, increase
slightly with higher final earnings, the result of Social
Security integration in most of these plans.16
Early retirement. Virtually all of the employees par
ticipating in a pension plan could retire early and re
ceive an immediate, reduced pension. In some cases,
employer approval was required for early retirement
benefits.
The amount of an early retirement pension is lower
for three reasons: First, fewer years of service are ap
plied to the benefit formula because an employee has
not worked until normal retirement age. Second, be
cause benefits begin at an earlier age, the retiree is ex
pected to receive plan payments over a longer period
of time. Third, pension funds are less, thereby lowering
earnings on investments.
The normal benefit is reduced by a percentage for
each year between the actual and normal retirement
ages. If a plan’s normal retirement age is 62, for exam
ple, and the reduction factor is 6 percent, a person re
tiring at age 59 would receive 82 percent of the normal
formula amount. It should be recognized, however, that
in addition to the 18-percent reduction for early retire
ment, the annuity in this example would be based on
fewer years of service and possibly lower earnings than
at age 62.
The reduction may either be uniform or vary by age
or service. Reduction factors that differed for each year
of early retirement, based on the employee’s life expec
tancy at that age (actuarial reductions) were used in
plans covering one-fifth of participants with early re
tirement opportunities. Other methods of reduction,
however, often approximate an actuarial reduction. For
over a third of the participants, the reduction factor
differed for age brackets of several years instead of
changing each year. Two-fifths of the participants had
uniform reduction factors, most commonly 6 percent
for each year of early retirement. A few plans applied
reduction factors that vary by length of service.
The majority of participants were covered by plans
providing early retirement at age 55; generally, 10 to
15 years of service were required. Nine-tenths of the
white-collar workers could, with sufficient years of
service, retire by age 55, and nearly four-fifths of the
production workers had plans with similar provisions.
The early retirement pension for 11 percent of par
ticipants was supplemented by additional monthly pay
ments if employees retire after meeting specific condi
tions. Plan sponsors include these special early retire
ment benefits either to induce older workers to retire
or as a reward for long service. For most employees in
this study, at least half of their retirement pension will
be Social Security payments (see section on replace
ment rates). Supplemental benefits from the private pen
sion help to fill the gap during the period between re
tirement and the start of Social Security payments. Gen-
Normal retirement. Although full Social Security
benefits are not available before age 65, most private
pension plan participants were not required to work to
that age for full private pensions (normal retirement).
Thirty-seven percent were covered by plans that speci
fied age 65 as the earliest age for normal retirement.
While these employees generally did not have to sat
isfy a minimum service requirement, plans permitting
normal retirement at earlier ages typically had length-ofservice requirements. Ten years’ service or less gener
ally were required for the 31 percent of participants
who could first retire at ages 60 through 64; 20 or 30
years were typically needed for retirement at 55 through
59 (affecting 6 percent of participants); and another 10
percent could qualify when the sum of age plus service
reached a specific amount, such as 85.
Sixteen percent of all participants were covered by
plans permitting retirement at any age with 30 years of
service; the major concentration (24 percent) was
among production workers. Plans which featured such
a provision almost always offered other normal retire
ment opportunities at specified ages with lower service
requirements. (If a plan had alternative age and service
requirements, the earliest age and associated service
16 A more complete discussion o f replacement rates will be presented
in an upcoming Monthly Labor Review article by Donald G. Schmitt.
12
Chart 6. Replacement rates under pension plans including and excluding Social Security
payments: Average benefits based on 30 years of service, medium and large firms, 1984
Average replacement
rate in percent
80
CZJ
Private pension only
|---- 1 Combined private pension
and primary Social
Security payment
60-
40“
20
-
$ 15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Worker’s final year’s earnings
Chart 7. Replacement rates under private pension plans: Average benefits based on 30 years
of service by type of pension formula, medium and large firms, 1984
Average replacement
rate In percent
13
is rarely fully reflected in the size of pension benefits
by both crediting the additional service and adjusting
pensions upward for the shorter retirement period.
Nevertheless, one-half of the participants were in plans
that made some adjustment for postponed retirement.
Forty-four percent of all participants were in plans
with benefit formulas that included credit for service
after age 65; 18 percent were subject to limits on the
number of credited years (frequently, only years up to
age 68 or 70). A number of plans with earnings-based
benefit formulas recognized earnings levels after age
65, even when service was not credited for these years.
Production workers were more likely than white-col
lar employees to receive full credit for service after age
65. Multiemployer plans, established by collective bar
gaining agreements, frequently provide for employer
contributions to the pension fund for covered employ
ees regardless of age.
In contrast to early retirees, who typically receive
reduced pensions over an extended time period, late re
tirees seldom receive pensions that are increased to
compensate for the shorter time they will draw bene
fits. Only 8 percent of the participants were in plans
that actuarially adjust the size of pensions or increase
the payment by a specified percentage for each addi
tional year beyond the normal retirement age.
erally, supplemental payments end when Social Secu
rity payments begin (either reduced payments at age 62
or full benefits at age 65), and the reduced pension is
then payable for life. Other employers elect to offer
similar incentives outside of formal plan provisions to
employees who retire within a specified limited time
period.17
Disability retirement. A career-ending disability may
entitle an employee to a pension at an earlier than nor
mal retirement age. If the disability satisfies the plan’s
definition of total disability, pension benefits often be
gin immediately. When an employer provides other
sources of disability income, such as long-term disabil
ity insurance, the disability retirement benefit might be
deferred until other forms of income have ceased.
Ninety percent of pension plan participants were cov
ered by disability retirement provisions in 1984. Each
year since first tabulated in 1980, employees in plans
with immediate disability retirement outnumbered those
in plans with benefits deferred to normal or early re
tirement age. The latter, however, increased by 8 per
centage points over the period to 38 percent of the pen
sion participants in 1984.
Seventy-nine percent of the production workers with
disability retirement coverage were in plans with im
mediate benefits. White-collar workers with disability
benefits in their pension plans were nearly equally di
vided between plans with immediate and deferred bene
fits. Workers with deferred benefits were usually pro
vided with long-term disability benefits ranging from
50 to 60 percent of earnings or more at the time of dis
ability; this was more than that generally provided by
pension plans with immediate disability retirement.18
Furthermore, most deferred retirement benefits were
greater than immediate pensions, primarily because the
time during which LTD benefits were paid was typi
cally added to an employee’s length of service for com
putation of pension benefits.
Requirements for disability retirement were usually
based on specified years of service such as 10 years or
more. Seventeen percent of the participants, however,
had no age or service requirement for disability retire
ment, and 22 percent had to meet the qualifications for
the LTD plan, which usually had a minimal service
requirement.
Postretirement pension increases. Inflation can severely
erode the purchasing power of a fixed pension through
out a worker’s retirement years. Nearly one-half (49
percent) of pension plan participants were in plans
which increased pensions for current retirees at least
once during the 1979-83 period. Most of these increases
were not automatic but discretionary, or ad hoc, ad
justments. The amounts of these ad hoc increases were
not directly linked to a cost-of-living index. Instead, re
tirees’ current pensions were usually increased by ei
ther a percentage varying by the length of retirement,
or a dollar amount per year of service. The latter type
of increase more often affected the pensions of produc
tion workers, and frequently resulted from collective
bargaining agreement provisions.
Since the survey reports only the number of current
employees covered by pension plans and not the num
ber of retirees, it cannot yield information on either the
proportion of annuitants actually receiving postretire
ment pension increases or the average amount of their
benefit improvements. However, the magnitude of both
can be roughly indicated by weighting the information
collected on ad hoc increases by the number of active
workers participating in plans that granted such
increases.
This was the approach used to estimate average pen
sion increases. For each plan granting an ad hoc in
crease during the 1979-83 period, the amount of increase
was computed using three retirement periods (5, 10,
Postponed retirement. Employees who continue on the
job after age 65 rarely receive private pensions until
their actual retirement. Moreover, postponed retirement
17David H. Gravitz and Frederich W. Rumack, “Opening the Early
Retirement ‘W indow,’” Personnel, M arch/April 1983, pp. 53-57.
18For a more complete discussion of disability retirement, see Donald
Bell and William Wiatrowski, “Disability Benefits for Employees in
Private Pension Plans,” Monthly Labor Review, August 1982, pp.
36-40.
14
to exclude years of service before age 22 in determin
ing vesting eligibility.20
Unreduced vested pension payments begin at a plan’s
normal retirement age, based on the benefit formula in
effect when an employee left the plan. Also, terminated
and vested participants could receive a reduced pension
under a plan’s early retirement provision if the partici
pant had satisfied the corresponding service require
ment when leaving the plan.
For terminated and vested employees who wish to
receive a pension beginning at the early retirement age,
the benefit must be at least the actuarial equivalent of
what would have been received starting at age 65. Al
though under ERISA the reduction factor used in de
termining the pension for a terminated employee can
be more severe than for early retirement, the same fac
tor was used in plans covering 79 percent of the par
ticipants with early retirement provisions.
and 15 years) and two monthly pension amounts ($250
and $1,000) in effect on December 31, 1978. These in
creases were then averaged using as weights the num
ber of active workers participating to provide sur
veywide estimates for each example. As shown in the
tabulation below, the length of retirement was a signifi
cant factor in determining the size of pension adjust
ments, with larger increases paid to persons retired
longest. Also, where maximum increases were speci
fied, retirees with higher original pensions had lower
percentage increases.
M onthly pension on
December 31, 1978
$250:
Average pension on December 31,1983
Percent change, December 31, 1978-83 ..
Years; o f retirement
10
15
5
$286
14
$307
23
$316
26
$1,000:
Average pension on December 31,1983 . $1,093
9
Percent change, December 31, 1978-83 ..
$1,172 $1,204
20
17
Postretirement survivor benefits. ERISA also requires
the availability of a form of pension in which at least
50 percent of the retiree’s payments continue to the
spouse after the retiree’s death. When this type of pen
sion—called a joint-and-survivor annuity—is elected,
the employee will receive a lower benefit during retire
ment since payments are likely to be made over a longer
period of time. When the retiree dies, the spouse will
receive part or all of the retiree’s monthly pension
benefits.21
Joint-and-survivor annuities are based on an actuarial
or arithmetic reduction of the employee’s pension which
is necessary to allow for continuation of benefits to the
employee’s survivor. One-fifth of the participants were
in plans offering only a joint-and-survivor option that
provides a surviving spouse 50 percent of the retiree’s
adjusted pension. Nearly two-thirds of participants had
a choice of two or more alternative percentages (fre
quently 50, 67, and 100 percent) to be continued to the
spouse, with corresponding reductions in their annuities.
The BLS Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI-W) rose 52 percent
over the 5-year period studied.19 Retirees in plans with
ad hoc adjustments, therefore, were commonly granted
increases that were less than half of the price rise.
Only about 3 percent of all participants were in plans
that provided for automatic increases in pension bene
fits to compensate for increases in the cost of living. In
most instances, the cost-of-living-adjustment formulas
provided for benefit adjustments proportional to in
creases in the BLS Consumer Price Index. Neverthe
less, ceilings on individual increases limited periodic
adjustments to 3 percent or less for one-half of the cov
ered workers. Most of the affected participants were in
plans calling for annual adjustments. Lifetime ceilings
on increases were rare.
Vesting. Even when an employee leaves an employer
without qualifying for either a normal, early, or disabil
ity retirement benefit, a pension may ultimately be paid.
If certain conditions are satisfied at the time of separa
tion, workers have a vested right in all or a significant
portion of their accrued pension benefits and may be
gin receiving benefits years later. Although all pension
participants are entitled to vested benefits under ERISA,
some variations exist as to when this occurs. Most pen
sion plans require 10 years of service before benefits
are fully guaranteed. While two-thirds of the partici
pants were covered by the 10-year rule regardless of
age, one-fifth were affected by the plan sponsor’s right
20In 1984, President Reagan signed into law the Retirement Equity
Act, effective January 1, 1985. Among other provisions, this act
amended ERISA by lowering to 21 the age after which employers
must enroll workers in pension plans and lowering to 18 the age after
which employees must earn vesting credits. In addition, the act re
quires that the spouse o f a deceased vested employee be entitled to
survivor benefits regardless o f age at death. This bulletin reports on
provisions in effect the last year before plans must comply with the
new requirements. (Collectively bargained plans must comply by
January 1, 1987.)
21 ERISA requires that the joint-and-survivor coverage be automatic
for married retirees, and that waiver o f this option must be requested
in writing by the employee. The Retirement Equity Act (see foot
note 20) further directs that spouse coverage can be waived only if
both husband and wife sign the written request. For a more complete
discussion o f survivor benefits, see Donald Bell and Avy Graham,
“Surviving Spouse’s Benefits in Private Pension Plans,” Monthly La
bor Review, April 1984, pp. 23-31.
,9The CPI-W increased 51 percent between 1978 and 1981, the
highest 4-year rise in recent times. For a discussion o f postretirement
increases during this period, see Donald G. Schmitt, “Postretirement
Increases under Private Pension Plans,” Monthly Labor Review, Sep
tember 1984, pp. 3-8.
15
est among health and life insurance plan members and
highest for sickness and accident insurance. Except for
long-term disability insurance plans, service require
ments were usually only 1, 2, or 3 months. Require
ments found in LTD plans were more restrictive; nearly
two-fifths of the participants had requirements of from
6 months to 3 years or more. Because of the long-term
nature of this benefit, more employers restricted eligi
bility to employees who have demonstrated some at
tachment to the company.
For health and life insurance benefits, the incidence
of service requirements varied markedly among the em
ployee groups. While nearly three-fifths of profes
sional-administrative employees could participate im
mediately, almost two-thirds of production workers had
some waiting period.
Preretirement survivor benefits. Nearly all participants
were in plans providing for survivor payments in case
the employee died before retirement. Employees usu
ally had to be eligible for early retirement before any
death benefits were payable.22 For seven-tenths of the
participants, a surviving spouse would receive an an
nuity equivalent to the amount payable if the employee
had retired on the day prior to death and had elected
a joint-and-survivor form of payment. Most survivor
pensions of this nature were based on an early retire
ment benefit and were provided at no cost to the em
ployee. For 16 percent of participants, however,
preretirement joint-and-survivor protection involved an
extra employee cost and was available only if elected
(down from 24 percent when first tabulated in 1980).
The cost was usually paid by the employee through a
small deduction in the pension ultimately payable to ei
ther employee or spouse.
Private pension plans. Nearly two-fifths of employees
with pensions had immediate coverage under their plan.
Another one-fifth could participate regardless of age
but had a service requirement, seldom more than 1 year.
Most of the remaining employees could not enter their
employer’s pension plan until they reached age 25 and
completed 1 year of service, the most restrictive re
quirement permitted by ERISA in 1984.24
Three-fifths of pension participants were in plans with
a maximum age, usually 59, beyond which newly hired
employees were not eligible. Maximum age conditions
are permitted under ERISA regulations as long as the
specified age is within 5 years of a plan’s normal retire
ment age.
Both minimum and maximum age provisions occurred
less frequently in plans covering production workers.
Employee contributions. The employer paid the full
cost of the pension plan for 91 percent of the partici
pants. Of the 9 percent that had to pay part of the cost,
virtually all paid a percent of earnings. The majority
of participants in contributory plans paid one rate (usu
ally 2 to 5 percent) on earnings above a specified level,
and a lower rate (frequently zero) below that earnings
level. The annual earnings level at which this break oc
curred ranged from $3,000 to $37,800, the Social Secu
rity taxable wage base in effect during 1984. Plans with
varying employee contributions usually coordinate pri
vate benefits with Social Security payments; as discussed
earlier, rates used in these plans are higher on earnings
above the Social Security taxable wage base. Less than
2 percent of the participants paid a flat rate—none paid
more than 4 percent.
Plan sponsors and collective bargaining
(tables 61-65)
The great majority of the insurance and pension plans
studied were single employer plans. The small repre
sentation of plans covering groups of employers re
flected the survey’s scope. This study excluded most
service industries and small firms in other industries,
such as contract construction and trucking, where multi
employer plans are more common than among the sur
veyed establishments.
Plan participation requirements
(tables 56-60)
The insurance and pension programs commonly
specify minimum length-of-service periods before em
ployees may join a plan. These service requirements
often are nominal, coinciding with an employer’s pro
bationary policy or the administrative time needed to
begin employer funding of benefits. Service require
ments in some long-term disability insurance plans, how
ever, are more restrictive, and are intended to limit the
number of covered workers and control employer costs.
Similarly, sponsors of pension plans frequently impose
age requirements which prevent younger or older
workers from participating.23
Insurance plans. The incidence of service requirements
did not vary significantly by benefit area, but was low22 See footnote 20 for changes required by the Retirement Equity
Act.
16
23Age and service restrictions are not the only limitations on plan
participation. Benefits may be limited to persons with full-time and
permanent employment status; in other instances, a more liberal re
quirement may apply, such as a workweek o f 20 hours or more. Some
plans are available only to persons covered by another plan; for ex
ample, life insurance plans that restrict eligibility to those who also
are enrolled in the company’s health insurance program. In other
cases, participation in one plan blocks eligibility for others, as when
several alternative health insurance plans are offered by the employer.
24See footnote 20 regarding the Retirement Equity A ct’s change in
the minimum age requirement for participation in pension plans, ef
fective January 1, 1985.
among white-collar workers—employers offered to
match savings for nearly half of these employees in
1984. This growth was influenced by the “salary re
duction” feature of recent tax legislation, which allows
the investment of employees’ pretax earnings in ap
proved plans.25
Incidence of several benefits differed markedly by
employee group, with a larger proportion of profes
sional-administrative employees usually covered. For
example, full or partial payment of relocation expenses
for transferred or newly hired employees was available
to three-fourths of the professional-administrative em
ployees but to less than two-fifths of the technical-cleri
cal employees and one-fifth of the production workers.
Severance pay was offered to three-fifths of the
white-collar employees, almost twice the proportion of
production employees covered.
For six benefits, the data distinguish between full and
partial defrayment of the cost of the benefit to the em
ployee. Parking, for example, was nearly always free
to those employees eligible for the benefit. Conversely,
meals served in a cafeteria or other dining facility were
generally provided at reduced cost, rather than free, to
those eligible. Fully paid relocation allowances, more
common among eligible white-collar employees, in
cluded payments for moving and interim living ex
penses, and the cost of breaking a lease or selling a
house. Covered production workers were more often
eligible for only partial defrayment of relocation ex
penses, generally limited to moving costs, or limited to
a maximum dollar amount.
For those employees provided recreational facilities,
which range from employer-sponsored sport teams to
sophisticated fitness facilities, nearly one-half of the
workers in each employee group were eligible to have
the full cost paid for while the remainder jointly fi
nanced the cost of the benefit with the employer. Em
ployees with partial reimbursement for education ex
penses outnumbered those with full reimbursement by
nearly 2 to 1 for white-collar employees and 3 to 1 for
production workers. Full educational assistance in
cluded total cost for books, tuition, and fees, but not
necessarily for worktime lost due to attending courses.
Insurance and pension plans for white-collar workers
usually resulted from management decisions, while plans
for production workers were divided between union-ne
gotiated and nonunion arrangements.
Twelve percent of the participants in sickness and
accident insurance plans were covered by mandatory
temporary disability insurance plans in New Jersey and
New York. As noted earlier in the sickness and acci
dent insurance section, both of these State-administered
plans are at least partially employer financed and pro
vide benefits similar to privately sponsored sickness and
accident insurance.
Other benefits
(table 66)
In addition to the major benefits previously discussed,
information was collected on a number of other bene
fit plans, such as profit sharing, severance pay, and re
location allowances. The data on these benefits show
the percent of workers in each employee group eligi
ble for a specific benefit, but do not indicate the pro
portion of employees actually taking advantage of such
benefits. Generally, benefits were provided to all or
none of the workers in an employee group within an
establishment; a small percent of employees were in es
tablishments which offered a benefit to only some
workers in an employee group.
Funeral leave, military leave, parking (provided at
no cost or below commercial rates), and full or partial
payment of educational expenses were available to at
least three-fifths of the employees in each group. Em
ployee discounts on purchases of the employer’s goods
or services and in-house infirmary care covered nearly
half of the employees of each group. Among the bene
fits surveyed, eligibility was lowest for stock bonus
plans, stock purchase plans, nonproduction bonuses, and
employee gifts. In addition, employee eligibility for use
of a company-owned or leased automobile for personal
business was seldom found, but was provided more
often to the professional-administrative employees than
to the other two groups.
Profit sharing, savings, and stock ownership
plans—capital accumulation instruments providing cur
rent or deferred benefits—have increased in availabil
ity for each occupational group nearly every year since
first measured in 1980. Growth between 1983 and 1984
was particularly striking in eligibility for savings plans
25 For details on salary reduction arrangements, see the Revenue
Act o f 1978 and subsequent IRS regulations.
17
Table 2. Work schedule: Percent of full-time employees by
number of hours scheduled per week,1 medium and large
firms, 1984
Table 1. Summary: Percent of full-time employees by
participation1 in employee benefit programs, medium and
large firms,2 1984
Employee benefit program
Profes
sional
and
All em
adminis
ployees
trative
employ
ees
Techni
cal and Produc
clerical tion em
employ ployees
ees
Work schedule
Profes
sional
and
All em
adminis
ployees
trative
employ
ees
Techni
cal and Produc
clerical tion em
employ ployees
ees
T otal..........................................
100
100
100
100
Hours per week:
Linder 35 .....................................
35 .................................................
Over 35 and under 37.5.............
3 7 .5 ..............................................
Over 37.5 and under 4 0 .............
40 ................................................
Over 40 .......................................
1
3
1
7
2
85
(2)
O
5
2
8
3
80
1
l2)
7
2
12
5
73
(2)
1
1
1
3
(2)
94
(2)
Hours per week not available..........
l2)
l2)
l2)
l2)
Paid:
Holidays.......................................
Vacations ....................................
Personal leave............................
Lunch period...............................
Rest tim e .....................................
Sick leave....................................
99
99
23
9
73
67
99
99
29
3
59
92
100
100
34
4
73
92
98
99
15
16
80
42
Sickness and accident insurance ....
Wholly employer financed..........
Partly employer financed ...........
51
42
10
29
20
9
37
27
10
70
61
10
Long-term disability insurance.........
Wholly employer financed..........
Partly employer financed ...........
47
35
11
67
47
20
58
42
16
30
26
5
1 Work schedule data, limited to straight-time hours, included lunch and
rest periods only if they were paid. Regularly scheduled overtime was ex
cluded from this survey.
2 Less than 0.5 percent.
Health insurance3 ..............................
Employee coverage:
Wholly employer financed..........
Partly employer financed ...........
Family coverage:
Wholly employer financed..........
Partly employer financed ...........
97
98
95
97
NOTE: Because of rounding, sums of individual items may not equal to
tals.
62
35
57
41
48
47
71
26
41
56
39
59
32
64
46
50
Life insurance...................................
Wholly employer financed4 .........
Partly employer financed ...........
96
81
15
97
80
17
95
78
17
96
83
12
Retirement pension...........................
Wholly employer financed4 ........
Partly employer financed ...........
82
74
8
83
74
9
84
78
6
Table 3. Paid lunch time: Percent of full-time employees
by minutes of paid lunch time per day, medium and large
firms, 1984
Minutes per day
80
72
8
1 Participants are workers covered by a paid time off, insurance, or
pension plan. Employees subject to a minimum service requirement be
fore they are eligible for a benefit are counted as participants even if they
have not met the requirement at the time of the survey. If employees are
required to pay part of the cost of a benefit, only those who elect the cov
erage and pay their share are counted as participants. Benefits for which
the employee must pay the full premium are outside the scope of the sur
vey. Only current employees are counted as participants; retirees are ex
cluded even if participating in a benefit program.
2 See appendix A for scope of study and definitions of occupational
groups.
3 Includes less than 0.5 percent of employees in plans that did not of
fer family coverage.
4 Includes participants in noncontributory basic plans who may contrib
ute to the cost of supplemental plans in these benefit areas. Supplemen
tal plans are not tabulated in this bulletin.
Profes
sional
and
All em
admin
ployees
istrative
employ
ees
Techni
Produc
cal and
tion
clerical
employ
employ
ees
ees
Total ...........................................
100
100
100
100
Provided paid lunch tim e ...................
Under 20 minutes.........................
20 minutes....................................
Over 20 and under 30 minutes ....
30 minutes....................................
Over 30 m inutes...........................
Number of minutes not
available.....................................
9
1
3
(1)
4
1
3
(1)
(1)
(1)
1
1
4
1
0
0
1
2
16
2
6
1
7
(1)
(’)
0
0
Not provided paid lunch tim e ............
91
96
84
97
1 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
18
Table 5. Paid holidays: Percent of full-time employees by
number of paid holidays provided each year, medium and
large firms, 1984
Table 4. Paid rest time: Percent of full-time employees by
minutes of paid rest time per day, medium and large firms,
1984
Minutes per day
Profes
sional
and
All em
admin
ployees
istrative
employ
ees
Total ...........................................
100
Provided paid rest tim e ......................
Under 15 minutes.........................
15 minutes....................................
Over 15 and under 20 minutes ....
20 minutes....................................
Over 20 and under 30 minutes ....
30 minutes....................................
Over 30 and under 40 minutes ....
40 minutes....................................
Over 40 minutes...........................
Number of minutes not
available.....................................
73
1
3
2
23
4
36
0
1
2
Not provided paid rest tim e...............
27
O
Techni
Produc
cal and
tion
clerical
employ
employ
ees
ees
Profes
sional
and
All em
admin
ployees
istrative
employ
ees
Number of days
Techni
Produc
cal and
tion
clerical
employ
employ
ees
ees
100
100
100
Total ...........................................
100
100
100
100
59
73
1
5
2
18
1
44
(’)
0
0
80
3
2
3
30
6
31
<’>
1
4
99
3
4
0
6
(’)
7
99
1
3
(’)
5
0
7
100
1
6
(’)
6
O
7
98
4
4
0
7
(’)
6
0
0
Provided paid holidays.......................
Under 6 days................................
6 days ...........................................
6 days plus 1 or 2 half d a ys.......
7 days ...........................................
7 days plus 1 half day .................
8 days ...........................................
8 days plus 1 or more half
days............................................
9 days ...........................................
9 days plus 1 or 2 half da ys.......
10 days .........................................
10 days plus 1 or more half
days............................................
11 days .........................................
11 days plus 1 or 2 half days......
12 days .........................................
12 days plus 2 half d a ys.............
13 days .........................................
13 days plus 1 half d a y ...............
14 days .........................................
More than 14 d a ys.......................
Number of days not available......
1
12
1
26
1
13
2
26
2
16
2
25
0
10
0
27
1
17
1
11
0
6
0
1
0
0
1
19
1
9
O
8
(’)
1
0
0
1
17
1
9
0
5
(’)
1
0
0
1
16
0
13
Not provided paid holidays................
1
1
0
3
1
15
1
37
0
0
-
0
41
27
20
1 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
0
-
6
(’)
2
0
0
2
1 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
Table 6. Paid holidays: Percent of full-time participants by
policy on holidays that fail on a regularly scheduled day off,
medium and large firms, 1984
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Holiday policy
T otal....................................
Techni
cal and Produc
clerical tion par
partici ticipants
pants
100
100
100
100
Holiday is not observed ...................
(’)
(’)
O
1
Another day off granted...................
86
91
89
81
Additional day’s pay in lieu of
holiday ............................................
3
1
2
4
Another day off or day’s pay,
depending on when holiday falls ...
9
4
5
13
Another day off or holiday not
observed, depending on when
holiday fa lls ....................................
1
2
3
(’)
Other provision applies2 ...................
Holiday policy not determinable.......
(’)
1
0
0
1
1
1
1
' Less than 0.5 percent.
2 Includes plans where the policy differs by holiday.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
19
Table 7. Paid vacations: Percent of full-time employees by amount of paid vacation provided at selected periods of
service, medium and large firms, 1984
Vacation policy
Profes
sional
and
All em
adminis
ployees
trative
employ
ees
Techni
cal and Produc
clerical tion em
employ ployees
ees
T ota l..........................................
100
100
100
100
In plans providing paid vacations ....
99
99
100
99
At 6 months of service:1
Under 5 da ys..............................
5 days ..........................................
Over 5 and under 10 days ........
10 days ........................................
Over 10 and under 15 days .......
15 days ........................................
Over 15 days ..............................
7
39
10
4
ft
(2)
(2)
4
49
14
7
(2)
1
1
5
48
15
6
(2)
(2)
At 1 year of service:
Under 5 da ys..............................
5 days ..........................................
Over 5 and under 10 days .........
10 days ........................................
Over 10 and under 15 days .......
15 days ........................................
Over 15 days ..............................
(2)
30
1
62
2
3
1
(2)
7
(2)
79
3
8
2
(2)
13
(2)
83
3
1
(2)
(2)
51
2
43
1
1
(2)
At 3 years of service:
Under 5 da ys..............................
5 days ..........................................
Over 5 and under 10 days ........
10 days ........................................
Over 10 and under 15 days .......
15 days ........................................
Over 15 and under 20 days .......
20 days ........................................
Over 20 d a ys..............................
(2)
4
1
80
8
5
(2)
1
(2)
(2)
1
(2)
1
(2)
87
6
5
(2)
(2)
(2)
(2)
6
1
79
10
2
(2)
(2)
(2)
At 5 years of service:
Under 5 da ys..............................
5 days ..........................................
Over 5 and under 10 days ........
10 days ........................................
Over 10 and under 15 days .......
15 days ........................................
Over 15 and under 20 days .......
20 days ........................................
Over 20 da ys..............................
At 10 years of service:
5 days ..........................................
Over 5 and under 10 days ........
10 days ........................................
Over 10 and under 15 days .......
15 days ........................................
Over 15 and under 20 days .......
20 days ........................................
Over 20 d a ys..............................
(2)
1
(2)
47
7
42
1
1
(2)
1
(2)
6
1
68
7
15
1
76
7
12
1
2
1
(2)
(2)
32
7
54
2
3
1
(2)
3
(2)
64
6
25
2
10
30
5
2
_
(2)
(2)
1
(2)
39
6
51
1
1
(2)
(2)
(2)
3
1
74
4
17
1
(2)
1
(2)
59
7
31
(2)
ft
Vacation policy
At 15 years of service:
5 days ..........................................
Over 5 and under 10 days .........
10 days........................................
Over 10 and under 15 days
15 days ............................
Over 15 and under 20 days .......
20 days ........................................
Over 20 and under 25 days .......
25 days ........................................
Over 25 da ys..............................
At 20 years of service:
Under 10 days............................
10 days ..........................
Over 10 and under 15 days .......
15 days ........................................
Over 15 and under 20 days .......
20 days ........................................
Over 20 and under 25 days
25 days ........................................
Over 25 and under 30 days .......
30 days ........................................
Over 30 d a ys..............................
At 25 years of service:
Under 10 days.............................
10 days ........................................
Over 10 and under 15 days .......
15 days ........................................
Over 15 and under 20 days .......
20 days ........................................
Over 20 and under 25 days .......
25 days .......................................
Over 25 and under 30 days .......
30 days .......................................
Profes
sional
and
All em
adminis
ployees
trative
employ
ees
Techni
cal and Produc
clerical tion em
employ ployees
ees
1
ft
3
(2)
28
3
60
2
2
1
ft
ft
1
ft
20
3
69
2
2
1
ft
2
ft
23
3
68
1
2
1
ft
ft
ft
3
ft
9
1
56
3
25
1
1
ft
6
1
60
4
26
1
ft
ft
ft
ft
ft
3
ft
1
ft
ft
8
ft
30
2
48
1
5
1
6
1
34
3
48
1
5
1
ft
3
ft
ft
ft
ft
5
ft
34
3
52
2
1
1
1
5
1
7
ft
66
3
21
1
ft
ft
ft
1
ft
1
ft
6
ft
35
3
48
1
4
1
ft
13
1
49
3
26
1
ft
1
1
5
ft
10
ft
26
2
47
1
5
1
At 30 years of service:3
10 days ........................................
ft
15 days ........................................
Over 15 and under 20 days .......
20 days ........................................
Over 20 and under 25 days .......
25 days ........................................
Over 25 and under 30 days .......
30 days ........................................
Over 30 d a ys..............................
1
(2)
10
1
66
9
10
1
8
ft
29
1
43
1
10
3
1
6
ft
33
1
42
1
12
2
ft
1
5
1
ft
6
ft
34
1
45
1
9
2
ft
10
ft
24
1
43
1
10
3
3 Provisions were virtually the same after longer years of service.
1 Excludes situations where employees are credited with vacation
days during the first 6 months of service but, as a matter of establish
ment policy, must wait beyond 6 months before taking those days off.
2 Less than 0.5 percent.
NOTE: Data include anniversary year bonus days and exclude ex
tended vacations. Dash indicates no employees in this category.
20
Table 9. Paid vacations: Percent of full-time participants by
length of service required to take vacation, medium and
large firms, 1984
Table 8. Paid holidays and vacations: Average number of
days for full-time participants, medium and large firms,
1984
Item
Profes
sional
All par and
admin
tici
pants istrative
partici
pants
Techni
Produc
cal and
tion
clerical
partici
partici
pants
pants
Paid holidays......................................
9.8
10.0
9.7
9.8
Paid vacation by length of service:
At 6 months..................................
At 1 ye a r.......................................
At 3 years.....................................
At 5 years.....................................
At 10 years...................................
At 15 years...................................
At 20 years...................................
At 25 years...................................
At 30 years'..................................
3.3
8.6
10.4
12.5
15.6
18.2
20.5
22.3
22.8
4.6
10.3
11.0
13.4
16.4
18.9
21.1
22.7
23.3
4.0
9.5
10.4
12.9
15.8
18.7
20.7
22.5
23.0
2.3
7.4
10.0
11.7
15.1
17.6
20.2
22.0
22.5
Length of service requirement
1
The average (mean) was essentially the same for longer lengths of
service.
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T otal....................................
100
100
100
100
With service requirement .................
1 m onth.......................................
2 m onths.....................................
3 m onths.....................................
4-5 months..................................
6 m onths.....................................
7-11 months................................
1 year...........................................
Over 1 year.................................
97
7
2
10
2
38
1
36
O
95
10
4
10
1
48
1
22
-
97
10
2
10
2
47
2
23
O
98
5
2
9
3
28
1
50
O
Without service requirement............
3
5
3
2
Service requirement not determinable .................................................
NOTE: Computation of average included half days and excluded
workers with zero holidays or vacation days.
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
(’)
(’)
(’)
(’)
1 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
Table 10. Paid personal leave: Percent of full-time
employees by number of paid personal leave days provided
per year, medium and large firms, 1984
Profes
sional
and
All em
adminis
ployees
trative
employ
ees
Number of days
Techni
cal and Produc
clerical tion em
employ ployees
ees
T otal..........................................
100
100
100
100
Provided personal leave...................
1 d a y............................................
2 days..........................................
3 days..........................................
4 days..........................................
5 days ..........................................
More than 5 days........................
No maximum specified'..............
Varies by length of service.........
23
2
5
2
4
4
1
3
2
29
2
7
3
4
7
2
5
1
34
3
9
3
5
6
2
4
2
15
2
2
2
3
2
1
1
2
Not provided personal leave ...........
77
71
66
85
1 Workers were provided as much personal leave as they needed.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
21
Table 11. Short-term disability coverage: Percent of
full-time employees by participation in sickness and accident
insurance plans and paid sick leave plans, medium and large
firms, 1984
Profes
sional
and
All em
adminis
ployees
trative
employ
ees
Type of plan
Techni
cal and Produc
clerical tion em
employ ployees
ees
T otal..........................................
100
100
100
100
Sickness and accident insurance
only ................................................
Wholly employer financed..........
27
23
4
2
5
4
50
44
Paid sick leave o n ly..........................
43
67
61
21
Combined sickness and accident
insurance/paid sick leave.............
Wholly employer financed..........
24
18
25
17
31
22
20
17
No sickness and accident insurance
or paid sick leave...........................
6
5
3
8
NOTE: Because of rounding, sums of individual items may not equal to
tals.
Table 12. Paid sick leave: Percent of full-time employees by
type of provision, medium and large firms, 1984
Profes
sional
and
All em
adminis
ployees
trative
employ
ees
Provision
Techni
cal and Produc
clerical tion em
employ ployees
ees
T otal..........................................
100
100
100
100
Provided sick leave...........................
67
92
92
42
Sick leave provided on:
An annual basis only1..............
A per disability basis only2 .......
Both an annual and per
disability basis .......................
As needed basis3 .....................
Other basis5 .............................
48
14
58
23
65
18
34
7
4
1
(4)
6
4
C)
7
1
1
(4)
(4)
Not provided paid sick leave...........
33
8
8
58
0
1 Employees earn a specified number of paid sick leave days per year.
This number may vary by length of service.
2 Number of days of paid sick leave is renewed for each illness or dis
ability. This number may vary by length of service.
3 Plan does not specify maximum number of days.
4 Less than 0.5 percent.
5 Includes formal plans with provisions that change from a specified
number of days per year to a specified number of days per absence after
a certain service period.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
22
Table 13. Paid sick leave: Percent of full-time employees by sick leave provision, medium and large firms, 1984
Sick leave policy1
Profes
sional
and
All em
adminis
ployees
trative
employ
ees
Techni
cal and Produc
clerical tion em
employ ployees
ees
T ota l..........................................
100
100
100
100
Provided sick leave1
2..........................
67
92
92
42
Sick leave provided
annually3 ...................................
51
64
73
34
At 6 months of service:
Under 5 days...................
5 and under 10 days .......
10 and under 30 days.....
30 and under 60 days.....
60 and under 120 days ....
120 days or more ...........
11
16
11
1
1
1
10
19
21
2
2
3
15
25
17
1
1
1
9
9
3
O
O
(4)
At 1 year of service:
Under 5 days...................
5 and under 10 days .......
10 and under 30 days.....
30 and under 60 days.....
60 and under 120 days ....
120 days or more ...........
At 5 years of service:
Under 5 days...................
5 and under 10 days .......
10 and under 30 days.....
30 and under 60 days.....
60 and under 120 days ....
120 days or more ...........
3
19
22
2
2
2
2
16
17
6
6
3
1
15
34
5
4
4
1
12
22
10
12
7
2
27
36
3
2
1
2
20
28
11
9
2
5
17
9
O
n
Sick leave policy1
Profes
sional
and
All em
adminis
ployees
trative
employ
ees
Techni
cal and Produc
clerical tion em
employ ployees
ees
Sick leave provided
annually3—Continued
Unused sick leave provisions:
Carry-over o n ly................
Cash-in o n ly.....................
Cash-in and carry-over....
No provision ....................
Data not available...........
(*)
18
2
1
43
1
24
5
3
41
C)
11
6
4
13
(“)
Sick leave provided on a per
disability basis6 .........................
17
29
25
7
At 6 months of service:
Under 5 days...................
5 and under 10 days
10 and under 30 days.....
30 and under 60 days.....
60 and under 120 days ....
120 days or more ...........
1
4
3
1
1
3
1
7
7
2
2
7
1
5
6
2
1
3
O
1
1
0
0
0
At 1 year of service:
Under 5 days...................
5 and under 10 da ys.......
10 and under 30 days.....
30 and under 60 days.....
60 and under 120 days ....
120 days or more ...........
1
2
4
2
1
3
1
4
7
5
3
7
2
3
7
3
1
3
1
1
1
0
(4)
1
At 5 years of service:
Under 30 days.................
30 and under 60 days.....
60 and under 120 days ....
120 days or more ...........
3
3
7
4
5
4
11
9
1
5
10
4
1
1
4
1
At 10 years of service:
Under 30 days.................
30 and under 60 days.....
60 and under 120 days ....
120 days or more ...........
2
2
7
6
3
3
10
13
3
3
10
7
1
(4)
4
1
At 15 years of service:
Under 60 days.................
60 and under 120 days ....
120 days or more ...........
3
4
10
5
7
17
6
6
12
1
1
5
At 20 years of service:
Under 60 days.................
60 and under 120 days ....
120 days or more ...........
3
4
10
5
7
17
6
6
12
1
1
5
At 25 years of service:5
Under 60 days.................
60 and under 120 days ....
120 days or more ...........
3
3
10
5
5
19
6
5
13
1
1
5
4
1
O
8
8
16
5
3
28
1
3
16
9
2
2
1
At 10 years of service:
Under 5 days...............
5 and under 10 days .......
10 and under 30 days.....
30 and under 60 days.....
60 and under 120 days ....
120 days or more ...........
2
15
16
4
8
6
1
12
21
6
12
13
1
19
25
7
11
8
3
15
8
2
4
1
At 15 years of service:
Under 5 days...................
5 and under 10 d a ys.......
10 and under 30 days.....
30 and under 60 days.....
60 and under 120 days ....
120 days or m o re ...........
2
15
16
2
7
8
(“)
12
20
3
11
17
1
19
25
4
11
12
3
15
8
1
3
2
At 20 years of service:
Under 5 days...................
5 and under 10 d a ys.......
10 and under 30 days.....
30 and under 60 days.....
60 and under 120 days ....
120 days or more ...........
2
15
15
2
7
9
O
12
20
2
11
18
1
19
25
3
10
13
3
15
8
1
4
2
At 25 years of service:5
Under 5 days...................
5 and under 10 days .......
10 and under 30 days.....
30 and under 60 days.....
60 and under 120 days ....
120 days or more ...........
1
16
15
2
5
11
0
12
20
2
8
22
1
19
25
3
8
15
1
17
8
1
3
3
1 Some plans grant sick leave at partial pay, either in addition or as
an alternative to full-pay provisions. Employees receiving partial pay
only or no sick leave in their early years of service are included in the
overall percentages of workers provided sick leave; however, they are
disregarded in computing the distributions by length of service.
2 The total is less than the sum of the individual breakdowns be
cause some employees were covered under both an annual and a per
disability plan.
3 Employees earn a specified number of sick days per year. This
23
As needed basis7 ........................
Other basis8 ................................
Not provided paid sick leave...........
1
0
33
o
C)
0
58
number may vary by length of service.
4 Less than 0.5 percent.
5 Provisions were virtually the same after longer years of service.
6 Sick leave is provided on a per illness or per disability basis. This
number may vary by length of service.
7 Plan does not specify maximum number of days.
8 Includes formal plans with provisions that change from a specified
number of days per year to a specified number of days per absence
after a certain service period.
Table 14. Paid sick leave: Average number of days at full
pay for full-time participants by type of plan, medium and
large firms, 1984
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Item
Techni
cal and Produc
clerical tion par
partici ticipants
pants
Paid annual sick leave' by length of
service:
At 6 months................................
At 1 year .....................................
At 3 years ...................................
At 5 years ...................................
At 10 years .................................
At 15 years .................................
At 20 years .................................
At 25 years .................................
At 30 years2 ................................
12.9
17.0
21.8
28.5
37.6
43.0
45.9
47.9
48.4
19.3
26.1
32.6
42.0
53.6
60.1
64.0
67.1
67.8
10.2
14.7
20.5
27.2
38.3
44.8
47.7
49.4
49.9
7.8
10.3
12.5
16.6
21.1
24.3
26.1
27.3
27.7
Paid per disability sick leave3 by
length of service:
At 6 months................................
At 1 year .....................................
At 3 years ...................................
At 5 years ...................................
At 10 years .................................
At 15 years .................................
At 20 years .................................
At 25 years .................................
At 30 years2 ................................
44.1
48.7
53.8
71.2
84.6
101.3
116.3
130.9
131.1
51.4
56.2
64.1
78.9
93.5
105.6
116.2
126.1
126.3
36.1
39.0
46.4
64.1
80.1
94.8
107.9
120.5
120.7
35.0
46.4
44.2
66.8
73.2
103.4
131.3
159.2
159.2
1 Employees earn a specified number of days per year. This number
may vary by length of service.
2 The average (mean) was virtually the same after longer years of serv
ice.
3 Employees earn a specified number of sick leave days for each ill
ness or disability. This number may vary by length of service.
NOTE: Computation of average excluded days paid at partial pay and
workers with only partial pay days or zero days of sick leave.
24
Table 15. Paid annual sick leave:1 Average number of days at full pay for full-time participants by accumulation policy
and sickness and accident insurance coordination, medium and large firms, 1984
Item
At 1 year of service:
Cumulative plan...........................
With sickness and accident
insurance............................
Without sickness and
accident insurance.............
Noncumulative plan ....................
With sickness and accident
insurance............................
Without sickness and
accident insurance.............
At 5 years of service:
Cumulative p lan...........................
With sickness and accident
insurance............................
Without sickness and
accident insurance.............
Noncumulative plan ....................
With sickness and accident
insurance............................
Without sickness and
accident insurance.............
At 10 years of service:
Cumulative p lan...........................
With sickness and accident
insurance.............................
Without sickness and
accident insurance.............
Profes
sional Techni
and
cal and Produc
All par
adminis clerical tion par
ticipants
trative
partici ticipants
pants
partici
pants
Item
10.3
13.5
10.5
7.9
7.5
10.1
8.4
5.8
12.5
21.0
15.4
31.7
11.9
17.3
10.4
12.2
11.0
17.9
11.8
27.8
37.5
20.4
6.1 At 20 years of service:
Cumulative plan...........................
21.3
With sickness and accident
insurance.............................
Without sickness and
9.6
Noncumulative plan ....................
7.3
With sickness and accident
insurance.............................
12.5
Without sickness and
22.0
accident insurance............
13.8
19.1
14.6
11.1
15.7
13.8
16.0
37.2
20.9
52.2
15.1
34.6
18.2
30.1
19.9
49.9
61.4
42.8
17.2
23.0
18.6
14.7
20.2
19.7
19.1
24.5
17.9
Noncumulative plan ....................
With sickness and accident
insurance.............................
Without sickness and
accident insurance...........
9.6 At 25 years of service:
Cumulative plan...........................
39.4
With sickness and accident
insurance.............................
Without sickness and
11.9
accident insurance.............
Noncumulative plan ....................
9.1
With sickness and accident
insurance.............................
15.4
Without sickness and
accident insurance.............
1
Paid sick leave plans with a specified number of days available
each year. Per disability plans were excluded from this table because
(1) only one-fifth of the employees with per disability plans were also
covered under a sickness and accident insurance plan and (2) only an
nual sick leave plans allow the employee to carry over and accumulate
unused sick leave from one year to the next year. Instead, the number
25
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
49.7
67.3
49.9
28.2
25.2
41.6
29.1
12.2
66 1
78 1
61 5
50 3
19.1
25.8
21.0
12.9
16.4
22.7
22.9
9.5
21 2
61.7
27 4
81.1
19 7
63.5
17 1
36.3
33.4
52.7
39.6
17.0
80 5
93 0
76 7
62 6
19.4
26.2
21.2
13.0
16.9
23.3
23.5
9.8
21 4
64.7
27 8
85.3
19 8
66.0
17 1
38.3
36.0
56.2
42.7
18.6
83.7
97.5
78.8
65.2
of days of paid leave under a per disability plan is renewed for each ill
ness or disability after the employee returns to work for a specified pe
riod. Data on per disability plans are presented in table 14.
NOTE: Computation of average excluded days paid at partial pay and
workers with only partial pay days or zero days of sick leave.
Table 16. Sickness and accident insurance: Percent of full-time participants by type and duration of
payments, medium and large firms, 1984
Maximum weeks of coverage
Type of payment
Total
Less
than
13
13
All types........................................
100
1
11
4
59
Fixed percent of earnings..........................
50-54 .....................................................
55-59 .....................................................
60-64 .....................................................
65-69 .....................................................
70 or m ore.............................................
47
16
1
14
11
5
1
0
ft
0
4
1
3
1
36
13
0
10
9
3
4
2
1
_
-
ft
0
ft
0
-
0
0
0
ft
-
“
0
-
0
ft
-
0
-
14
1
1
1
3
3
5
0
0
7
7
14-25
26
27-51
52
Greater
than
52
Varies
by
service
13
0
11
ft
0
(’)
-
2
O
All participants
Percent of earnings varies.........................
By service.............................................
By length of disability...........................
By both service and length of
disability .............................................
By earnings............................................
0
-
Fixed weekly dollar benefit........................
Less than $60 .......................................
$60-$79.................................................
S80-S99.................................................
$100-$119 .............................................
$120-$ 139.............................................
$140 or more ........................................
25
4
3
2
4
4
8
ft
0
-
Weekly dollar benefit varies.......................
By earnings...........................................
By service or length of
disability .............................................
24
23
_
-
1
-
1
-
1
1
1
6
3
2
1
1
0
(')
1
1
1
0
ft
1
1
1
-
ft
2
ft
0
0
ft
1
1
0
_
-
-
-
-
0
1
(’)
0
0
2
(’)
0
ft
0
1
0
0
-
2
ft
0
0
2
1
1
9
9
_
-
6
6
2
1
1
-
0
1
ft
O
0
0
-
1
1
0
-
10
0
2
1
0
ft
0
-
1
(’)
1
-
7
4
3
_
-
-
0
0
Professional and administrative
All typ e s........................................
100
1
7
Fixed percent of earnings..........................
50-54 .....................................................
55-59 .....................................................
60-64 .....................................................
65-69 .....................................................
70 or m ore............................................
73
24
1
25
16
7
1
(1)
1
-
5
2
Percent of earnings varies.........................
By service.............................................
By length of disability...........................
By both service and length of
disability .............................................
By earnings...........................................
11
5
4
_
-
_
-
0
0
-
2
1
-
“
■
Fixed weekly dollar benefit........................
Less than $60 .......................................
$60-$79.................................................
$80-699 .................................................
$100-$11 9 .............................................
$120-$139 .............................................
$140 or more ........................................
8
2
2
2
2
ft
0
-
0
0
-
-
8
7
-
0
0
-
“
“
“
Weekly dollar benefit varies.......................
By earnings............................................
By service or length of
disability .............................................
0
0
0
1
1
1
1
1
See footnotes at end of table.
26
4
74
3
60
22
1
21
12
5
0
2
0
1
2
0
1
-
1
1
”
ft
0
0
0
-
0
-
2
1
2
-
6
6
0
0
-
ft
ft
“
“
0
0
0
1
-
ft
0
”
6
1
1
1
-
“
0
1
-
1
1
“
1
1
“
-
ft
Table 16. Sickness and accident insurance: Percent of full-time participants by type and duration of
payments, medium and large firms, 1984—Continued
Maximum weeks of coverage
Type of payment
Total
Less
than
13
13
14-25
Greater
than
52
Varies
by
service
26
27-51
52
6
0
7
1
0
0
-
2
O
1
0
0
3
2
1
_
-
-
Technical and clerical
All types........................................
100
2
11
6
68
1
Fixed percent of earnings...........................
50-54 .....................................................
55-59 .....................................................
60-64 .....................................................
65-69 .....................................................
70 or m ore.............................................
72
28
1
18
14
10
2
1
7
1
4
1
-
55
25
1
10
11
8
1
(’)
(’)
-
9
5
2
-
O
0
-
2
2
O
0
0
_
_
0
-
1
(’)
_
_
_
-
-
-
0
6
1
(’)
(’)
2
1
2
_
-
0
(’)
0
(’)
-
0
0
(’)
-
-
3
2
2
1
3
(')
(’)
1
1
Percent of earnings varies..........................
By service..............................................
By length of disability............................
By both service and length of
disability ..............................................
By earnings............................................
2
1
Fixed weekly dollar benefit.........................
Less than $60 .......................................
$60-$79..................................................
$80-$99 ..................................................
$100-$11 9 ..............................................
$120-$139 ..............................................
$140 or more ........................................
10
2
1
1
2
2
2
-
3
2
1
(’)
(’)
(’)
(1)
0
0
Weekly dollar benefit varies.......................
By earnings............................................
By service or length of
disability ..............................................
9
8
_
-
(’)
0
(’)
(')
5
4
0
0
1
-
(’)
-
1
-
All typ e s........................................
100
0
12
Fixed percent of earnings...........................
50-54 .....................................................
55-59 .....................................................
60-64 .....................................................
65-69 .....................................................
70 or m ore.............................................
35
11
(’)
11
10
3
0
0
0
0
0
Percent of earnings varies..........................
By service ..............................................
By length of disability............................
By both service and length of
disability ..............................................
By earnings............................................
1
(’)
(’)
-
_
_
0
-
-
Fixed weekly dollar benefit.........................
Less than $60 .......................................
$60-$79..................................................
$80-$99..................................................
$100-$11 9 ..............................................
$120-8139 ..............................................
$140 or more ........................................
32
5
4
2
5
4
11
(')
0
-
8
3
2
1
1
(’)
(’)
Weekly dollar benefit varies.......................
By earnings............................................
By service or length of
disability ..............................................
32
31
-
0
0
0
1
1
2
1
_
-
3
3
0
-
-
16
0
14
1
(’)
0
0
0
0
-
2
O
1
1
-
-
0
-
Production
1
1
4
53
2
1
26
8
O
8
7
2
0
0
0
-
-
(’)
(’)
-
0
0
(')
-
(’)
“
_
_
_
“
■
”
(’)
0
0
(')
-
2
(1)
0
0
2
3
1
1
1
-
-
_
(’)
C)
1
1
-
0
1 Less than 0.5 percent.
1
0
(')
1
0
-
18
2
1
2
4
3
6
(’)
(')
8
8
1
-
(’)
2
(')
“» -
1
-
2
0
0
-
0
0
1
1
2
1
1
13
12
-
0
-
_
9
8
0
NOTE: Because of rounding, sums of individual items may
not equal totals. Dash indicates no employees in this cate
gory.
27
Table 17. Sickness and accident insurance: Percent of full-time participants with benefits based on percent of
earnings formula by maximum weekly benefit, medium and large firms, 1984
Maximum weekly benefit
Type of payment
Total
Total
with
maximum
Less
than
$80
$80
to
$99
$100
to
$119
$120
to
$139
$140
to
$159
$160
to
$199
$200
to
$249
$250
to
$299
$300
or
more
No
maximum
All participants
T o ta l........................................
100
71
0
2
5
19
14
4
10
4
13
29
Fixed percent of earnings ..............
50-54 ..........................................
55-59 ..........................................
60-64 ..........................................
65-69 ..........................................
70 or m ore.................................
92
31
1
28
22
10
70
27
1
19
16
7
0
0
0
0
2
2
5
1
19
15
3
0
0
14
3
1
9
1
4
1
1
1
10
2
6
1
1
4
1
(’)
1
0
1
12
1
6
4
2
22
5
0
9
6
3
Percent of earnings va ries.............
8
1
-
-
-
1
7
T o ta l........................................
100
70
0
Fixed percent of earnings ..............
50-54 ..........................................
55-59 ..........................................
60-64 ..........................................
65-69 ..........................................
70 or m ore.................................
87
29
1
30
19
8
69
24
1
24
15
5
0
0
0
-
(’)
-
Percent of earnings va ries.............
13
1
-
-
T o ta l........................................
100
70
0
Fixed percent of earnings ..............
50-54 ..........................................
55-59 ..........................................
60-64 ..........................................
65-69 ..........................................
70 or m ore.................................
88
35
1
22
17
13
68
30
1
13
15
9
(')
(')
(')
-
-
(’)
-
0
-
Percent of earnings va ries.............
12
2
-
-
T o ta l........................................
100
72
Fixed percent of earnings ..............
50-54 ..........................................
55-59 ..........................................
60-64 ..........................................
65-69 ..........................................
70 or m ore.................................
97
30
1
31
27
8
72
26
1
21
18
6
0
(')
0
-
Percent of earnings va ries.............
3
1
-
-
-
1
1
1
1
0
-
-
0
0
-
0
0
Professional and administrative
1
1
20
11
2
9
5
20
30
1
1
1
20
19
1
0
0
11
1
9
0
2
1
1
9
1
4
1
20
(1)
0
0
-
3
0
0
0
12
4
3
18
5
6
4
3
-
-
-
0
(’)
-
1
-
0
1
-
-
7
1
12
0
Technical and clerical
1
7
25
13
1
7
1
25
22
13
4
(')
8
(')
-
1
-
2
(')
2
4
-
0
1
3
7
3
12
30
3
7
1
3
1
10
0
1
0
0
4
3
2
20
5
0
9
3
4
(')
1
10
0
1
1
3
1
1
0
0
-
-
-
-
-
5
16
16
4
13
4
10
28
5
1
16
10
5
(’)
0
16
3
2
10
1
4
2
12
3
6
2
1
4
1
10
1
3
4
2
25
4
0
10
8
2
-
-
1
2
0
Production
1
1
3
3
3
1 Less than 0.5 percent.
2
1
0
-
(')
1
1
-
(')
0
1
0
1
-
NOTE: Because of rounding, sums of individual items may not
equal totals. Dash indicates no employees in this category.
28
Table 18. Long-term disability insurance: Percent of full-time participants by method of determining payment, medium and
large firms, 1984
Professional and
administrative participants
All participants
Method
Total
With
Without
maximum maximum
coverage coverage
provi
provi
sions'
sions
Total
With
Without
maximum maximum
coverage coverage
provi
provi
sions'
sions
Technical and clerical
participants
Total
Production participants
With
Without
maximum maximum
coverage coverage
provi
provi
sions'
sions
Total
Without
With
maximum maximum
coverage coverage
provi
provi
sions
sions'
All methods......................
100
71
29
100
72
28
100
75
25
100
67
33
Fixed percent of earnings.............
Less than 50 percent..............
50 percent................................
55 percent................................
60 percent........ .*......................
65 or 67 percent......................
70 percent or m ore..................
77
1
23
61
1
18
83
1
23
45
11
2
62
1
16
35
9
1
21
1
7
32
9
1
16
1
5
(2)
8
1
1
10
2
1
82
1
21
(2)
47
9
3
64
1
16
(2)
37
8
1
18
(2)
5
(2)
10
1
1
67
2
25
1
28
9
1
57
1
23
1
24
9
(2)
9
1
3
4
1
(2)
6
2
9
6
2
12
10
3
4
3
1
1
1
1
1
1
1
1
24
3
20
5
3
2
ft
40
10
2
ft
Percent varies by earnings...........
8
Percent varies by service..............
1
Scheduled dollar amount
varies by earnings.......................
8
2
7
1
1
Other3..............................................
5
2
3
6
2
(2)
-
(2)
’ Includes dollar maximums in plans that pay a percent of earnings,
ceilings on income during disability that limit the amount payable from
the LTD plans plus other income, or a combination of both.
2 Less than 0.5 percent.
3 Includes flat dollar amounts and scheduled percent of earnings
(2)
1
4
3
1
(2)
3
(2)
ft
varying by length of disability.
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
Table 19. Long-term disability insurance: Percent of
full-time participants by duration of benefits, medium and
large firms, 1984
Profes
sional Techni
and
cal and Produc
All par
adminis clerical tion par
ticipants
partici ticipants
trative
pants
partici
pants
Duration of benefits
T ota l..........................................
100
100
100
Until a specified a g e .........................
Under age 6 5 ..............................
Age 6 5 .........................................
Age 7 0 .........................................
26
0
23
3
24
(’)
21
3
27
27
ft
ft
Duration of benefit varies.................
By length of service....................
By age at time of disability2 .......
Single reduction ....................
Gradual reduction .................
66
1
66
34
31
68
1
67
35
32
66
1
65
31
34
65
1
64
37
27
Other3 .................................................
8
8
7
23
3
100
25
2
8
_____
' Less than 0.5 percent.
2 Under the Age Discrimination in Employment Act, age-based reduc
tions in employee benefit plans are permissible when justified by signifi
cant cost considerations.
3 Includes benefits lasting for life, for a specified number of months, or
until some unspecified retirement age.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
29
Table 20. Health insurance: Percent of full-time participants by coverage for selected categories of medical care, medium
and large firms, 1984
Care provided
Category of medical care
Total
All
By basic
benefits only'
By major
medical only2
By basic
benefits and
major medical
Care not
provided
All participants
Hospital room and board...................................
Hospitalization—miscellaneous services..........
Outpatient care4 ..................................................
Extended care facility5 .......................................
Home health care5 .............................................
Surgical...............................................................
Physician visits—in hospital ...............................
Physician visits—office ......................................
Diagnostic X-ray and laboratory6 .......................
Prescription drugs—nonhospital........................
Private-duty nursing............................................
Mental health c a re .............................................
Dental..................................................................
Vision ..................................................................
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
62
46
100
100
96
100
98
96
99
77
30
17
16
12
24
22
32
12
6
25
14
6
10
72
26
28
29
27
28
16
29
49
83
42
81
89
28
5
4
54
54
60
11
9
39
38
7
33
3
1
61
0
(3)
(3)
(3)
38
54
(3)
(3)
4
(3)
2
4
1
23
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
66
48
100
100
99
100
98
99
100
79
26
16
15
9
22
20
31
11
7
23
12 *
7
8
74
21
32
33
30
31
18
33
58
88
49
82
91
31
5
5
52
51
61
13
10
36
32
4
28
4
1
60
(3)
(3)
(3)
(3)
34
52
(3)
(3)
1
(3)
2
1
(3)
21
74
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
63
47
100
100
99
100
97
99
99
75
26
16
14
10
32
33
31
31
18
33
56
87
48
84
89
32
5
5
51
52
59
13
(3)
(3)
(3)
37
53
(3)
(3)
70
Professional and administrative
Hospital room and board...................................
Hospitalization—miscellaneous services..........
Outpatient care4 ..................................................
Extended care facility5 .......................................
Home health care5 .............................................
Surgical...............................................................
Physician visits—in hospital..............................
Physician visits—office ......................................
Diagnostic X-ray and laboratory6 .......................
Prescription drugs—nonhospital........................
Private-duty nursing............................................
Mental health c a re .............................................
Dental..................................................................
Vision ..................................................................
Technical and clerical
Hospital room and board...................................
Hospitalization—miscellaneous services..........
Outpatient care4 ..................................................
Extended care facility5 .......................................
Home health care5 .............................................
Surgical...............................................................
Physician visits—in hospital...............................
Physician visits—office ......................................
Diagnostic X-ray and laboratory6 .......................
Prescription drugs—nonhospital........................
Private-duty nursing............................................
Mental health care .............................................
Dental..................................................................
Vision ..................................................................
See footnotes at end of table.
30
18
18
32
11
7
23
11
7
8
70
21
11
35
32
5
29
3
2
60
(3)
1
(3)
3
1
1
25
74
Table 20. Health insurance: Percent of full-time participants by coverage for selected categories of medical care, medium
and large firms, 1984—Continued
Care provided
Category of medical care
Total
All
By basic
benefits only'
By major
medical only2
By basic
benefits and
major medical
Care not
provided
Production
Hospital room and board...................................
Hospitalization—miscellaneous services..........
Outpatient care4 ..................................................
Extended care facility5 .......................................
Home health care5 .............................................
Surgical ...............................................................
Physician visits—in hospital ..............................
Physician visits—office ......................................
Diagnostic X-ray and laboratory6 .......................
Prescription drugs—nonhospital........................
Private-duty nursing............................................
Mental health care .............................................
Dental..................................................................
Vision ..................................................................
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
60
44
100
100
94
100
98
93
99
76
33
18
18
16
27
24
32
14
5
27
17
5
13
71
30
25
25
24
24
13
25
42
79
36
79
87
25
5
3
57
57
60
9
7
43
44
9
37
2
1
62
-
(3)
(3)
(3)
(3)
40
56
(3)
(3)
6
(3)
2
7
1
24
67
categories of care.
3 Less than 0.5 percent.
4 Coverage for any of the following services charged by the out
patient department of the hospital: Treatment for accidental injury or
emergency sickness; surgical procedures; rehabilitative or physical
therapy; and treatment for chronic illness (radiation therapy, etc.).
5 Some plans provide this care only to a patient who was previously
hospitalized and is recovering without need of the extensive care pro
vided by a general hospital.
6 Charges incurred in the outpatient department of a hospital and
outside of the hospital.
1 A provision was classified as a basic benefit when it related to the
initial expenses incurred for a specific medical service. Linder these pro
visions, a plan paid covered expenses in one of several ways: (1) In
full with no limitation; (2) in full for a specified period of time, or until a
dollar limit was reached; or (3) a cash scheduled allowance benefit that
provided up to a dollar amount for a service performed by a hospital or
physician. For a specific category of care, a plan may require the par
ticipant to pay a specific amount each disability or year (deductible) or a
nominal charge each visit or procedure (copayment) before reimburse
ment begins or services are rendered.
2 Major medical benefits cover many categories of expenses, some
of which are not covered under basic benefits, and others for which ba
sic coverage limits have been exhausted. These benefits are character
ized by deductible and coinsurance provisions that are applied across
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
31
Table 21. Health insurance: Percent of full-time participants in plans with basic hospital room and board coverage by
type of benefit payments and limits to coverage, medium and large firms, 1984
Subject to limit on days of coverage per hospital confinement’
Type of payment
Total
All
Under 120
days
120 days
121 - 364
days
365 days
366 days
or more
Subject to
other
limits1
2
Unlimited
All participants
Total ................................................
100
70
11
19
4
31
4
18
12
Daily dollar allowance.............................
Less than $ 5 0 ....................................
$50-$74...............................................
$75-$99...............................................
$100-$124 ...........................................
$125 or more .....................................
Semiprivate ra te .......................................
6
1
1
1
1
1
94
5
(3)
1
1
1
1
65
3
(3)
1
1
1
1
8
1
(3)
(3)
(3)
(3)
(3)
18
(3)
(3)
4
1
(3)
(3)
(3)
31
(3)
(3)
4
1
(3)
(3)
ft
(3)
17
_
12
Total ................................................
100
65
10
20
3
29
3
22
13
Daily dollar allowance.............................
Less than $ 5 0 ....................................
$50-$74...............................................
$75-$99...............................................
$100-$124 ...........................................
$125 or more .....................................
Semiprivate ra te .......................................
4
0
(3)
1
1
2
96
4
(3)
0
1
1
2
61
2
(3)
(3)
1
(3)
1
8
1
(3)
19
3
1
(3)
(3)
28
_
3
(3)
(3)
(3)
22
_
13
Total ................................................
100
65
10
23
4
25
3
20
15
Daily dollar allowance.............................
Less than $ 5 0 ....................................
$50-$74...............................................
$75-$99...............................................
$100-$ 124...........................................
$125 or more .....................................
Semiprivate ra te .......................................
3
(3)
(3)
1
(3)
1
97
3
(3)
(3)
1
(3)
1
62
1
(3)
(3)
(3)
(3)
(3)
9
(3)
22
Total ................................................
100
75
12
18
Daily dollar allowance.............................
Less than $ 5 0 ....................................
$50-$74..............................................
$75-$99..............................................
$100-$ 124...........................................
$125 or more .....................................
Semiprivate ra te .......................................
8
1
2
2
2
1
92
6
(3)
1
1
2
1
69
4
(3)
1
1
1
1
9
2
(3)
(3)
(3)
1
(3)
16
Professional and administrative
1
-
(3)
(3)
-
Technical and clerical
1
1
(3)
(3)
(3)
-
(3)
-
-
3
(3)
(3)
25
5
35
-
-
(3)
(3)
(3)
-
-
-
-
ft
-
-
3
(3)
20
15
6
15
9
-
-
Production
_
-
5
1
(3)
-
-
(3)
(3)
34
(3)
6
1
1
1
(3)
(3)
14
-
9
specified time period.
3 Less than 0.5 percent.
1 In some plans, the limit on days of coverage varied by length of
participation in the plan; in these cases, the participant was assumed to
have been in the plan for 15 years.
2 Includes workers in plans where the basic benefit is limited by a
maximum dollar amount per confinement or per year, and other plans
where the limit on the number of days of coverage applies within a
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
32
Table 22. Health insurance: Percent of full-time participants
in plans with basic surgical benefits by maximum allowance
for selected procedures, medium and large firms, 1984
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Maximum allowance
T otal..........................................
Usual, customary, and reasonable
charge ..............................................
With overall dollar limit on basic
surgical payments......................
Without overall dollar limit on
basic surgical payments ...........
Plan pays:
80 percent........................
90 percent........................
95 percent........................
100 percent .....................
Maximum scheduled allowance .......
Most expensive surgical
procedure:
$201-$300 ..............................
$301-$400 ..............................
$401-$500 ..............................
$501-$750 ..............................
$751-$1000 ............................
$1001-$1250 ..........................
$1251-$1500 ..........................
$1501-$2000 ..........................
$2001-$2500 ..........................
$2501-$3000 ..........................
More than $3000 ..................
Not determinable2 .................
Appendectomy:
$100 or less...........................
$101-$150..............................
$151-$200 ..............................
$201-$300 ..............................
$301-$400 ..............................
$401-$500 ..............................
$501-$750 ..............................
More than $750 .....................
Not determinable2 .................
Tonsillectomy:
$50 or le ss.............................
$51 -$ 100 ...............................
$101-$150 .............................
$151-$200 .............................
$201-$300 ..............................
More than $300.....................
Not determinable2 .................
Hysterectomy:
$200 or less...........................
$201-$300 .............................
$301-$400 .............................
$401-$500 .............................
$501-$750 .............................
$751-$1000 ............................
$1001-$1250 ..........................
More than $1250 ..................
Not determinable2 .................
Techni
cal and Produc
clerical tion par
partici ticipants
pants
100
100
100
100
69
76
74
64
5
6
4
6
64
70
70
58
3
1
6
54
3
1
6
60
5
2
7
55
2
O
5
51
31
24
26
36
1
1
4
4
3
2
4
1
2
1
1
1
2
4
3
2
4
6
1
1
1
O
3
2
3
9
6
3
4
4
1
1
2
(’)
2
1
2
7
5
3
4
4
1
1
2
0
0
0
0
0
2
3
10
6
2
5
1
1
1
3
7
6
1
5
/■ 1
1
O
2
2
7
5
3
4
O
1
(’)
3
4
12
7
2
6
1
1
2
12
8
4
3
O
2
1
8
8
2
5
(’)
1
1
8
8
4
2
O
2
2
15
8
6
3
0
2
0
(’>
3
(’)
1
6
9
5
7
5
1
(’)
2
5
7
5
7
4
1
0
2
4
4
6
3
1
O
3
4
4
5
7
3
1
(’)
3
' Less than 0.5 percent.
2 Information necessary to classify was not provided.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
33
Table 23. Health insurance: Percent of full-time participants in plans with major medical coverage by amount of deductible
and applicable benefit period,1 medium and large firms, 1984
Professional and
administrative participants
All participants
Amount of deductible2
Technical and clerical
participants
Production participants
Benefit period
Total
1-year
period
Total .................................................
100
96
Deductible specified................................
99
96
Based on earnings3 ............................
5
5
Flat dollar amount ..............................
Less than $ 2 5 ...............................
$ 2 5 .................................................
$26-$49.........................................
$ 5 0 .................................................
$ 75.................................................
$76-$99.........................................
$100 ..............................................
$101 -$12 4 .....................................
$125 ..............................................
$150 ..............................................
Over $150.....................................
94
0
2
1
18
4
0
47
O
1
9
12
91
O
1
1
17
4
(4)
46
O
1
8
12
No deductible...........................................
1
Other
period
-
4
5
5
94
O
2
1
20
5
(4)
49
1
7
10
91
(4)
1
1
20
5
(4)
47
1
6
10
4
(4)
1
0
(4)
2
(4)
0
-
-
6
2
10
14
0
0
94
0
1
0
14
4
O
47
O
1
11
14
90
O
0
(4)
14
2
(4)
46
O
1
10
14
4
O
1
0
2
1
0
(4)
-
-
O
-
-
5
92
O
1
0
16
2
0
45
0
(4)
94
0
2
0
16
3
0
46
O
2
11
14
-
0
1
95
6
5
1
99
96
97
-
4
100
100
1
4
3
4
o
95
96
97
0
100
100
100
4
4
3
4
-
1-year
period
1-year
period
1-year
period
Other
period
3
o
1
0
0
-
1
O
Other
period
Total
Total
Total
Other
period
-
1
-
3 These plans have deductibles which vary by the amount of the partici
pants’ earnings. A typical provision is 1 percent of annual earnings with a
maximum deductible of $150.
4 Less than 0.5 percent.
1 The deductible is the amount of covered expenses that an individual
must pay before any charges are paid by the insurance plan. The benefit
period is the length of time within which a single deductible requirement
applies. Some plans require that expenses equal to the deductible be in
curred within a shorter period, such as 90 days.
2 Amount of deductible described is for each insured person. However,
many plans contain a maximum family deductible. In some plans, the indi
vidual and family deductibles are identical.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
Table 24. Health insurance: Percent of full-time participants in plans with major medical coverage by coinsurance
provisions,1 medium and large firms, 1984
Professional and
administrative
participants
All participants
Final coinsurance provision
Technical and clerical
participants
Production participants
Initial coinsurance
80 85 90
80 85 90
80 85 90
80 85 90
Oth To
To
Oth To
Oth To
Oth
per per per
per per per
per per per
per per per
er tal
tal
er tal
er tal
er
cent cent cent
cent cent cent
cent cent cent
cent cent cent
Total ................................................. 100
Final coinsurance changes to 100
percent..................................................
When covered expenses1
2 within a
year reach:
$1-$2,000 ......................................
$2,001-$4,000 ...............................
$4,001-$6,000 ...............................
$6,001-$8,000 ...............................
$8,001-$10,000 .............................
More than $10,000 .......................
Final coinsurance changes to other than
100 percent...........................................
Coinsurance unchanged..........................
86
5
4
5 100
85
5
6
4 100
86
4
4
6 100
86
6
3
5
75
65
5
3
2
81
70
5
5
1
82
73
4
4
1
69
58
6
2
3
11
20
25
8
8
4
10 19
1
22
1
4
3
6 (3)
3 (3)
11
25
27
6
7
5
11
1 (3)
23
1 (3) (3)
24
1
2 (3)
3
3 (3)
1
1
5
2 (3)
4 (3) (3)
-
15
23
26
5
10
3
14 1 (3)
22 (3) (3) (3)
24
1
1 (3)
3
2 O
1
7 (3)
2 (3)
2
1 (3)
9
16
22
10
8
4
8 (3) (3)
15
1 (3) (3)
20 (3) (3)
1
5
4 (3)
1
6 (3)
1 (3)
3 (3) (3)
1 f)
24
21
-
(3)
(3)
(3)
(3)
1
1
1
(3)
2 (3)
(3)
-
(3)
1
2
1
1
-
18
15
-
1 Coinsurance is the percent of covered expenses paid by the
plan. The balance is paid by the employee. If coinsurance provi
sions varied by the category of medical care, the provision applying
to hospital room and board charges was tabulated.
2 Amount of covered expenses described is for each insured per
-
(3)
1
2
1
1
-
17
12
-
-
(3)
1
4
(3)
31
(3)
29
-
-
(3)
1
1
son. In rare cases, the limit for the individual and family are identical.
3 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not
equal totals. Dash indicates no employees in this category.
34
Table 25. Health insurance: Percent of full-time participants
in plans with major medical coverage by maximum benefit
provisions, medium and large firms, 1984
Profes
sional
and
All par
Type and dollar amount of maximum
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T otal..........................................
100
100
100
100
With maximum lim its'........................
82
79
75
88
Lifetime maximum only...............
Less than $25,000 ................
$25,000 .................................
$25,001-$49,999 ...................
$50,000 .................................
$50,001-$99,999 ...................
$100,000 ................................
$100,001-$249,999 ...............
$250,000 ................................
$250,001-$499,999 ...............
$500,000 ................................
$500,001-$999,999 ...............
$1,000,000 .............................
More than $1,000,000 ...........
72
1
1
(2)
3
2
4
4
23
3
12
1
19
(2)
70
(2)
(2)
68
1
(2)
1
1
2
2
24
4
12
2
22
(2)
1
(2)
2
2
25
3
11
2
21
(2)
76
1
1
1
5
3
5
6
21
2
12
1
17
(2)
Annual or disability maximum
only ...........................................
5
5
4
6
Both lifetime and annual or
disability maximums.................
5
4
3
7
Without maximum limits ...................
18
21
25
12
-
-
1 Most plans with a lifetime maximum have a reinstatement clause. By
furnishing satisfactory medical evidence of insurability, an employee can
apply for restoration of the full lifetime maximum. Regardless of a mem
ber’s physical condition, however, a typical plan automatically restores up
to $1,000 of the major medical maximum each year.
2 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
35
Table 26. Health insurance: Percent of full-time participants in plans with dental benefits by extent of coverage for
selected procedures, medium and large firms, 1984
Type of dental procedure
Sched
Incen Subuled
tive ject to
Total cash
sched copay
allow
Total
ule’
ment1
2
ance
Percent of usual, customary, and reasonable charge
50
60
61-74
75
80
85
Not
cov
ered
90
91-99
100
_
(3)
53
41
5
5
4
2
2
1
(3)
(3)
51
43
5
5
4
2
2
1
(3)
0
(3)
1
1
1
1
25
49
42
4
4
5
1
1
(3)
(3)
(3)
(3)
1
1
2
1
29
56
40
6
7
4
2
2
1
(3)
(3)
(3)
1
1
2
2
28
All participants
Examinations ......................
Dental X-rays......................
Fillings ................................
Dental surgery....................
Periodontal ca re .................
Inlays..................................
Crowns ...............................
Orthodontia.........................
100
100
100
100
100
100
100
100
16
16
27
26
27
27
27
12
2
2
2
2
2
1
1
<3)
(3)
(3)
(3)
(3)
(3)
1
1
82
82
71
71
70
70
70
59
(3)
(3)
4
5
7
39
39
51
(3)
(3)
1
1
1
5
5
3
1
1
2
2
1
2
2
1
2
2
5
5
5
1
1
(*)
24
27
42
41
40
13
12
2
1
4
5
4
5
3
3
1
1
6
6
6
6
6
6
O
100
100
100
100
100
100
100
100
19
20
30
29
30
30
30
16
2
2
2
1
1
0
0
-
(3)
(3)
(3)
(3)
(3)
(3)
1
1
79
79
68
68
68
68
68
58
1
1
3
4
7
41
41
49
(3)
(3)
1
1
1
6
6
4
1
2
2
2
2
2
2
1
3
3
5
5
4
2
2
(3)
22
26
45
45
43
12
11
2
(3)
1
3
3
3
1
1
1
1
3
3
3
3
3
3
100
100
100
100
100
100
100
100
14
15
27
26
27
27
27
14
2
2
2
2
2
(3)
1
-
(3)
(3)
(3)
1
1
(3)
1
1
83
83
71
71
69
71
70
56
1
1
4
4
7
43
43
48
(3)
(3)
1
1
1
6
6
3
1
2
2
3
2
3
3
1
1
1
5
4
4
1
1
(3)
29
32
49
49
45
13
12
2
(3)
1
3
3
3
1
1
1
100
100
100
100
100
100
100
100
15
15
26
25
25
26
26
10
2
2
2
2
2
1
1
(3)
(3)
(3)
(3)
(3)
(3)
(3)
1
83
83
72
72
72
71
71
62
(3)
(3)
6
6
7
36
36
53
(3)
(3)
1
1
1
4
4
3
(3)
1
1
1
1
1
1
2
2
2
6
6
6
1
1
(3)
23
25
36
36
36
13
13
1
1
6
7
6
7
5
5
1
-
0
1
1
2
1
28
Professional and
administrative
Examinations ......................
Dental X-rays......................
Fillings ................................
Dental surgery....................
Periodontal c a re .................
Inlays ..................................
Crowns ...............................
Orthodontia.........................
-
_
(3)
Technical and clerical
Examinations ......................
Dental X-rays......................
Fillings ................................
Dental surgery....................
Periodontal ca re .................
Inlays ..................................
Crowns ...............................
Orthodontia.........................
1
3
3
3
3
3
3
-
_
(3)
Production
Examinations ......................
Dental X-rays......................
Fillings ................................
Dental surgery....................
Periodontal ca re .................
Inlays ..................................
Crowns ...............................
Orthodontia.........................
-
1
10
10
10
10
9
9
(3)
_
-
(3)
3 Less than 0.5 percent.
1 Reimbursement arrangement in which the percentage of dental
expenses paid by the plan increases if regular dental appointments
are scheduled.
2 Participant pays a specific amount per procedure and plan pays
all remaining expenses.
NOTE: Because of rounding, sums of individual items may not
equal totals. Dash indicates no employees in this category.
36
Table 29. Health insurance: Percent of full-time participants
in plans with orthodontic benefits by lifetime maximum
amount of coverage, medium and large firms, 1984
Table 27. Health insurance: Percent of full-time participants
in plans with dental benefits by deductible provision,1
medium and large firms, 1984
Type of deductible2
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
Dollar amount
Profes
sional Techni
cal and Produc
and
All par
adminis clerical tion par
ticipants
partici ticipants
trative
pants
partici
pants
T ota l..........................................
100
100
100
100
T o ta l..........................................
100
100
100
100
Subject to basic dental deductible3 ..
65
68
70
61
Yearly deductible.........................
Under $ 2 5 ..............................
$ 2 5 .........................................
$26-549 .................................
$ 5 0 .........................................
Over $ 5 0 ................................
56
1
28
1
23
3
60
1
30
2
23
4
61
1
29
1
25
4
52
1
27
1
22
2
Lifetime deductible......................
$ 2 5 .........................................
$ 5 0 .........................................
Over $50 ...............................
9
1
7
1
8
1
7
1
10
0
9
1
9
1
7
1
Lifetime maximum specified ............
Less than $500 ...........................
$500 .............................................
$501-$749 ...................................
$750 .............................................
$751-5999 ...................................
$1,000 ..........................................
$1,001-$1,499 ..............................
$1,500 ..........................................
Greater than $1,500 ...................
95
(’)
15
8
16
12
36
1
4
2
95
0
14
6
18
11
37
1
4
3
92
0
15
4
16
8
39
1
5
3
96
0
15
11
16
15
33
1
3
1
No lifetime maximum........................
5
5
8
4
Subject to major medical
deductible.......................................
6
6
7
6
No deductible ...................................
29
26
23
33
' Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
1 Excludes separate deductibles for orthodontic procedures.
2 Amount of deductible described is for each insured person. In some
plans, the individual and family deductibles are identical.
3 Deductibles may not apply to all covered dental procedures. If more
than one deductible amount applied to separate procedures, the sum of
the deductible amounts was tabulated.
4 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
Table 28. Health insurance: Percent of full-time participants
in plans with dental benefits by yearly maximum amount of
insurance,1 medium and large firms, 1984
Dollar amount
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Table 30. Health insurance: Percent of full-time participants
in plans with vision benefits by extent of benefits, medium
and large firms, 1984
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T otal..........................................
100
100
100
100
Yearly maximum specified2 ..............
Less than $500 ...........................
$500 .............................................
$501-$749 ...................................
$750 .............................................
$751-$999 ...................................
$1,000 ..........................................
$1,001-$1,499 ..............................
$1,500 ..........................................
Greater than $1,500 ...................
93
1
6
2
21
2
48
5
6
4
92
(3)
4
2
22
1
45
5
9
5
93
(3)
6
1
21
(3)
46
5
8
6
95
1
7
2
21
2
50
4
4
3
No yearly maximum ..........................
7
8
7
5
Benefit
T ota l......................................
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
100
100
100
100
Eye examinations only......................
13
17
18
10
Examinations and eyeglasses..........
6
4
5
7
71
68
66
75
Orthoptics' o n ly .....................
5
4
6
4
Other combinations...................
5
6
6
4
Examinations, eyeglasses, and
contact lenses ..................
1 Exercises to improve the function of the eye muscles.
1 Includes all covered dental procedures except orthodontia. Amount
of maximum specified is for each insured person.
2 If more than one yearly maximum applied to separate procedures, the
sum of the maximums was tabulated.
3 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
37
Table 31. Health insurance: Percent of full-time participants in plans with mental health benefits by extent of benefits,
medium and large firms, 1984
Professional and adminis
trative participants
All participants
Production
participants
Technical and clerical
participants
Coverage limitation
Hospital
care
Outpatient
care
Hospital
care
Outpatient
care
Hospital
care
Outpatient
care
Hospital
care
Outpatient
care
Total ...........................................
100
100
100
100
100
100
100
100
With coverage....................................
100
97
99
97
99
97
100
96
Covered the same as other
illnesses.....................................
48
7
48
6
47
6
48
7
52
29
24
90
23
70
51
27
23
91
24
71
52
31
23
91
25
71
52
30
24
89
21
69
3
9
54
14
2
11
53
12
3
11
54
12
4
8
54
16
3
1
3
1
3
Subject to separate limitations1 ....
Limit on days or visits............
Limit on dollars .......................
Major medical coinsurance
limited to 50 percent...........
Other limitations......................
Not covered........................................
(1
2)
1 The total is less than the sum of the individual items because many
plans had more than one type of limitation on mental health coverage.
2 Less than 0.5 percent.
Table 32. Health insurance: Percent of full-time participants
by coverage for selected special benefits, medium and large
firms, 1984
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Benefit item
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T otal..........................................
100
100
100
100
Covered by at least one of the
listed special benefits1...................
75
78
78
72
Second surgical opinion.............
Alcoholism treatment..................
Drug abuse treatment.................
Hearing care2 ...............................
Hospice care................................
Physical examinations ................
38
61
52
14
11
8
43
61
52
13
13
10
39
63
53
11
11
10
36
59
51
16
10
6
Not covered by any of listed special
benefits...........................................
25
22
22
28
1 The total is less than the sum of the individual items because many
participants receive more than one benefit.
2 Plan provided, as a minimum, coverage for hearing examination ex
penses.
38
(*)
4
Table 33. Health insurance: Percent of full-time participants in contributory plans by type and amount of employee
contribution, medium and large firms, 1984
Professional and
administrative participants
All participants
Technical and clerical
participants
Production participants
Type and amount of contribution
Single
coverage
Family
coverage1
Single
coverage
Family
coverage1
Single
coverage
Family
coverage1
Single
coverage
Family
coverage1
T ota l..........................................
100
100
100
100
100
100
100
100
Flat monthly amount.........................
Less than $5.00 ..........................
$5.00-$9.99.................................
$10.00-514.99 ..............................
$15.00-$19.99..............................
$20.00-529.99 .............................
$30.00-$39.99 .............................
$40.00-$49.99 .............................
$50.00-559.99 .............................
$60.00-$69.99 ..............................
$70.00-$79.99 .............................
$80.00-589.99 .............................
$90.00-$99.99 .............................
$100.00 or greater......................
Composite rate3 ...........................
93
23
18
16
11
10
2
2
(2)
(2)
(2)
91
21
18
18
11
10
1
1
(2)
(2)
(2)
8
93
4
7
6
8
10
13
12
9
5
6
1
2
4
6
93
28
20
11
5
9
3
2
(2)
(2)
10
92
5
9
7
8
11
10
9
9
4
5
2
2
3
7
93
18
17
20
16
10
2
1
(2)
(2)
11
93
5
11
7
7
12
11
8
9
5
4
1
2
3
8
16
94
6
15
7
7
13
11
6
8
5
2
1
1
3
9
Amount varies by earnings ..............
2
1
3
1
2
1
1
1
Contribution not determinable .........
5
6
6
7
4
7
5
5
-
-
1 If the amount of contribution varied by either size or composition
of family, the rate for an employee with a spouse and one child was
used. For a small percentage of employees, the employee contributes
the same amount for single and family coverage.
2 Less than 0.5 percent.
3 A composite rate is a set contribution covering more than one bene
-
-
fit area, for example, health insurance and sickness and accident insur
ance. Cost data for individual plans cannot be determined.
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
39
Table 34. Health insurance: Percent of full-time participants by funding medium for selected types of coverage, medium
and large firms, 1984
Basic
hospital1
Basic
surgical1
T o ta l........................................
100
100
100
Provided coverage...........................
Blue Cross-Blue Shield.............
Commercial carrier....................
Independent health plans..........
Labor/management3 ...........
Health Maintenance
Organizations4 ...................
Other®...................................
Combined ..................................
71
25
23
24
19
71
17
27
27
22
Not provided coverage ...................
T o ta l........................................
100
100
100
Provided coverage..........................
Blue Cross-Blue Shield.............
Commercial carrier....................
Independent health plans.........
Labor/management3 ...........
Health Maintenance
Organizations4 ...................
Other®...................................
Combined ..................................
68
24
67
13
28
26
20
6
(5)
(6)
(5)
Not provided coverage ...................
32
33
58
Funding medium
Basic
medical1
Major
medical2
Basic
hospital1
Basic
surgical1
100
100
100
100
100
100
100
50
16
16
18
13
91
13
44
34
33
77
4
43
29
27
67
25
21
22
16
67
15
25
26
20
43
14
13
9
93
14
45
33
33
75
4
41
29
28
(*)
2
(*)
(*)
All participants
Basic
medical1
15
5
5
(5)
2
6
6
6
(5)
O
(5)
(5)
(5)
0
(5)
(5)
(5)
(*)
(5)
29
29
50
9
23
33
33
57
100
100
100
100
42
12
15
14
8
93
12
48
33
32
79
4
45
30
27
75
26
24
26
6
6
(5)
<5)
(5)
2
(5)
-
-
16
(5)
7
-
(5)
7
25
100
100
100
75
58
19
19
21
22
28
28
25
89
13
41
34
34
76
5
42
29
27
4
(5)
(5)
f)
(5)
(5)
(5)
2
1
(5)
4
(5)
21
25
25
42
11
Professional and administrative
22
22
Dental
Technical and clerical
(5)
(5)
5
-
Major
medical2
Dental
Production
18
18
4
(*)
24
facilities if at least partially financed by employer contributions. In
cludes plans that are administered by a commercial carrier through Ad
ministrative Services Only-Minimum Premium Plan (ASO-MPP) con
tracts and plans in which a commercial carrier provides protection only
against extraordinary claims.
4 Includes federally qualified (those meeting standards of the Health
Maintenance Organization Act of 1973, as amended) and other HMOs
delivering comprehensive health care on a prepayment rather than feefor-service basis. All HMOs are included here regardless of sponsor
ship, e.g., Blue Cross-Blue Shield or a commercial insurance carrier.
5 Less than 0.5 percent.
s Includes independent prepaid plans providing health benefits less
comprehensive than those of an HMO. Dental benefits plans spon
sored by local dental societies are also in this category.
1 A plan provision was classified as a basic benefit when it covered
the initial expenses incurred for a specific medical service. Under these
provisions, a plan paid covered expenses in one of several ways: 1) In
full with no limitation: 2) in full for a specified period of time, or until a
dollar limit was reached; and 3) a cash scheduled allowance benefit
that provided up to a dollar amount for a service performed by a hospi
tal or physician. For a specific category of care, a plan may require the
participant to pay a lump sum amount each disability or year (deduct
ible) or a nominal charge each visit or procedure (copayment) before
reimbursement begins or services are rendered.
2 Major medical benefits cover many categories of expenses, some
of which are not covered under basic benefits, and others for which
basic coverage limits have been exhausted. These benefits are charac
terized by deductible and coinsurance provisions that are applied
across categories of care.
3 Includes plans that are financed by general revenues of a com
pany on a pay-as-you-go basis, plans financed through contributions to
a trust fund established to pay benefits, and plans operating their own
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
40
Table 35. Life insurance: Percent of full-time participants
by method of determining amount of basic life insurance
and frequency of related coverages, medium and large
firms, 1984
Profes
sional Techni
and
cal and Produc
All par
adminis clerical tion par
ticipants
trative
partici ticipants
pants
partici
pants
Item
Total..........................................
100
100
100
100
Basic life insurance1 .........................
Based on earnings......................
Multiple..................................
Graduated schedule .............
Flat amount.................................
Flat amount based on service ....
Other2...........................................
100
64
49
15
34
3
(3)
100
84
72
12
13
3
(3)
100
81
69
11
17
2
(3)
100
45
28
17
53
2
(3)
With extended coverage during total
and permanent disability...............
98
98
98
97
With accidental death and
dismemberment coverage.............
74
70
67
80
With dependent coverage................
17
17
19
16
1 A few participants received only accidental death and dismemberment
insurance.
2 Includes participants in plans with insurance based on pension ac
crued at time of the employee’s death.
3 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
41
Table 36. Life insurance: Percent of full-time participants in plans with multiple-of-earnings formulas by
amount of basic insurance and maximum coverage provisions, medium and large firms, 1984
Formula
Total
In plans with maximum coverage
In plans
without
maximum
coverage
All
Less than
$50,000
$50,000$99,999
$100,000$249,999
$250,000 or
more
All participants
3
T o ta l...........................................
100
50
50
Life insurance is equal to annual
earnings times;'
Less than 1 .0 ..................................
1 .0 ....................................................
1.1-1.4 ..............................................
1 .5 ....................................................
1.6-1.9 ..............................................
2 .0 ....................................................
2 .5 ....................................................
2.6-2.9 ..............................................
3 .0 ....................................................
More than 3 .0 ..................................
Multiple varying with earnings.........
3
41
1
10
ft
37
3
(2)
2
1
1
1
24
1
3
18
1
1
1
1
2
17
(2)
7
(2)
20
2
0
2
0
1
Total ...........................................
100
50
50
Life insurance is equal to annual
earnings times:1
Less than 1 .0 ..................................
1 .0 ....................................................
1.1-1.4 ..............................................
1 .5 ....................................................
1.6-1.9 ..............................................
2 .0 ....................................................
2 .5 ....................................................
2.6-2.9 ..............................................
3 .0 ....................................................
More than 3 .0 ..................................
Multiple varying with earnings........
2
38
1
10
ft
41
3
ft
2
1
2
1
21
1
3
19
2
1
1
1
1
17
6
ft
22
1
(2)
2
ft
1
Total ...........................................
100
50
50
Life insurance is equal to annual
earnings times:1
Less than 1.0 ..................................
1 .0 ....................................................
1.1-1.4 ..............................................
1 .5 ....................................................
1.6-1.9 ..............................................
2 .0 ....................................................
2 .5 ....................................................
2.6-2.9 ..............................................
3 .0 ....................................................
More than 3 .0..................................
Multiple varying with earnings.........
2
42
1
9
(2)
37
3
(2)
3
1
1
1
25
1
2
16
2
1
1
(2)
O
17
(2)
7
(2)
21
1
ft
2
(2)
1
Total ...........................................
100
51
49
3
Life insurance is equal to annual
earnings times:1
Less than 1 .0 ..................................
1 .0 ....................................................
1.1-1.4..............................................
1 .5 ....................................................
2 .0 ....................................................
2 .5 ....................................................
2.6-2.9 ..............................................
3 .0 ....................................................
More than 3 .0 ..................................
Multiple varying with earnings.........
5
44
1
11
33
3
1
1
(2)
1
1
27
1
2
19
1
(2)
(2)
“
4
18
8
14
2
1
1
(2)
1
1
2
8
ft
ft
2
3
-
ft
(2)
(2)
ft
-
1
2
1
ft
ft
ft
20
20
1
9
4
5
0
(2)
(2)
1
2
12
1
1
ft
ft
18
22
3
-
Professional and administrative
3
ft
2
0
ft
ft
-
-
8
(2)
3
1
2
ft
(2)
(2)
ft
ft
8
-
4
-
3
6
ft
-
(2)
(2)
0
2
14
1
1
ft
ft
Technical and clerical
2
(2)
1
ft
(2)
(2)
ft
-
8
(2)
3
1
3
1
(2)
ft
21
ft
4
9
4
5
(2)
0
1
2
14
1
1
ft
ft
8
23
15
(2)
3
2
1
1
1
-
4
10
3
4
ft
1
-
-
19
ft
-
Production
1
When the multiple-of-earnings formula varied with age, the
maximum multiple was tabulated. A few plans varied the multiple-of-earnings formula according to service; in these cases, a
participant was assumed to have 15 years of service.
42
1
(2)
“
2
2
8
1
1
ft
2 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may
not equal totals. Dash indicates no employees in this category.
Table 39. Private pension plans:1 Percent of full-time
participants by method of determining retirement payments,
medium and large firms, 1984
Table 37. Life insurance: Percent of full-time participants in
plans with flat dollar insurance by amount of basic
insurance, medium and large firms, 1984
Amount of insurance
Profes
sional Techni
cal and Produc
and
All par
adminis clerical tion par
ticipants
partici ticipants
trative
pants
partici
pants
Basis of payment2
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T ota l..........................................
100
100
100
100
T otal..........................................
100
100
100
100
Less than $2,000 .............................
$2,000-$4,999 ...................................
$5,000-59,999 ...................................
$10,000-$14,999 ..............................
$15,000-519,999 ..............................
$20,000-524,999 ..............................
$25,000-$29,999 ..............................
$30,000 and o v e r.............................
4
11
36
30
9
7
3
1
4
6
33
29
4
20
2
2
3
10
46
30
4
5
2
0
4
12
35
30
10
5
4
1
Terminal earnings form ula...............
No alternative form ula................
Terminal earnings alternative.....
Career earnings alternative ........
Dollar amount alternative3..........
Percent of contributions
alternative.................................
54
24
8
3
19
70
31
12
4
23
71
39
10
4
17
36
12
5
2
17
(4)
1
0
0
Career earnings formula...................
No alternative form ula................
Career earnings alternative .......
Dollar amount alternative3..........
14
8
1
6
22
12
1
8
15
9
1
6
10
5
1
4
Dollar amount formula3 .....................
No alternative form ula................
Dollar amount alternative3..........
Percent of contributions
alternative.................................
28
27
1
4
4
-
10
10
(4)
50
48
2
O
(4)
O
0
1
(4)
(4)
(4)
(4)
(4)
1 Less than 0.5 percent
NOTE: Because of rounding, sums of individual items may not equal to
tals.
Table 38. Life insurance: Percent of full-time participants in
basic life insurance plans by effect of retirement on
coverage, medium and large firms, 1984
Effect of retirement
Percent of contributions formula......
No alternative form ula................
Percent of contributions
alternative.................................
Profes
sional Techni
and
cal and Produc
All par
adminis clerical tion par
ticipants
trative
partici ticipants
partici
pants
pants
T otal..........................................
100
100
100
100
Insurance continues' ........................
Continues for life .........................
Continues in full ....................
Reduced once .......................
Reduced more than once
during retirement................
Continues in form of paid-up
insurance2 ...........................
Ceases during retirement...........
64
62
2
36
66
64
2
36
67
65
2
37
61
59
2
36
23
26
25
21
(3)
2
0
2
(3)
2
(3)
2
Insurance discontinued immediately.
36
34
33
39
Money purchase...............................
2
1
0
2
4
3
3
3
O
1
1 Excludes supplemental pension plans.
2 Alternative formulas are generally designed to provide a minimum
benefit for employees with short service or low earnings.
3 Includes formulas based on dollar amounts for each year of service
and schedules of benefits that vary by length of service.
4 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
1 Includes plans in which coverage is fully retiree paid.
2 Plan accumulates permanent amounts of insurance through the con
tributions of active employees.
3 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
43
Table 40. Private pension plans:1 Percent of full-time participants in plans with percent of terminal earnings benefit formulas
by type and amount of formula, medium and large firms, 1984
Provision for
maximum benefit3
Type and amount of
formula2
Provision for
integration with
Social Security
benefit
Total
Without
Subject Not sub With inte
inte
to maxi ject to
grated
grated
maximum formula
mum
formula
Total .....................
100
100
100
100
100
Flat percent per year of
service........................
Less than 1 .0 0 ........
1.00-1.24 .................
1.25-1.49 .................
1.50-1.74 .................
1.75-1.99 .................
2.00-2.24 .................
2.25 or greater........
49
1
4
6
20
5
12
2
51
0
1
2
20
5
19
4
46
2
7
12
20
4
1
48
52
4
16
11
12
51
22
24
2
49
24
22
1
54
19
26
4
52
16
29
2
1
5
22
6
13
3
8
Percent per year
4
2
5
5
48
48
1
_
Flat percent per year of
service........................
1.00-1.24 .................
1.25-1.49 .................
1.50-1.74 .................
1.75-1.99 .................
2.00-2.24 .................
2.25 or greater........
100
52
1
4
5
23
6
10
3
100
53
(4)
1
2
23
5
16
5
100
49
1
7
9
24
6
2
100
Subject Not sub With inte
to maxi ject to
grated
maximum formula
mum
Without
inte
grated
formula
Total .....................
100
100
100
100
100
Flat percent per year of
service........................
Less than 1 .0 0 ........
1.00-1.24 .................
1.25-1.49 .................
1.50-1.74 .................
1.75-1.99 .................
2.00-2.24 .................
2.25 or greater........
52
0
2
9
19
5
14
3
61
(4)
1
2
22
7
25
5
40
1
3
17
16
3
1
48
82
3
14
23
21
48
19
22
4
39
15
21
1
60
24
24
7
Percent per year
varies..........................
By service...............
By earnings.............
By a g e .....................
By earnings and
service..................
(4)
7
19
5
13
3
52
20
25
4
21
18
16
1
3
2
5
4
_
Total .....................
100
100
100
100
100
Flat percent per year of
service........................
Less than 1 .0 0 ........
1.00-1.24 .................
1.25-1.49 .................
1.50-1.74 .................
1.75-1.99 .................
2.00-2.24 .................
2.25 or greater........
49
43
1
5
4
17
3
11
1
40
48
4
11
9
21
3
(4)
48
33
4
14
6
6
1
4
24
7
10
3
57
28
23
1
60
37
19
52
13
30
2
52
9
35
1
67
67
5
4
7
7
-
100
69
5
23
12
19
9
Percent per year
By service...............
By earnings.............
By a g e .....................
By earnings and
service..................
Total
Production
Professional and
administrative
T o ta l.....................
Type and amount of
formula2
Provision for
integration with
Social Security
benefit
Technical and clerical
All participants
By service...............
By earnings.............
Bv a a e .....................
By earnings and
service..................
Provision for
maximum benefit3
48
19
25
1
47
19
26
1
51
19
25
2
51
17
30
1
31
30
3
2
5
3
“
1
1 Excludes supplemental pension plans.
2 If a plan contained more than one terminal earnings formula, a pri
mary formula was selected and tabulated.
3 These maximum provisions are independent of ERISA-imposed ceil
ings on pensions payable from defined benefit plans.
44
Percent per year
varies..........................
By service...............
By earnings.............
By a g e .....................
By earnings and
service..................
_
1
1
16
4
17
2
_
1
3
23
5
15
2
3
-
* Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
Table 41. Private pension plans:1 Percent of full-time
participants in plans with terminal earnings formulas by
definition of terminal earnings, medium and large firms,
1984
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Definition of terminal earnings
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T otal..........................................
100
100
100
Three years.......................................
Last 3 ...........................................
High 3 ..........................................
Of last 5 ................................
Of last 1 0 ..............................
Of career...............................
High consecutive 3 .....................
Of last 5 ................................
Of last 1 0 ..............................
Of career...............................
11
1
1
1
(2)
9
(2)
7
2
11
1
2
1
(2)
(2)
9
0
7
1
11
2
1
1
(2)
(2)
8
ft
7
1
Five years..........................................
Last 5 ...........................................
High 5 ..........................................
Of last 1 0 ..............................
Of last 1 5 ..............................
Of career...............................
Other......................................
High consecutive 5 .....................
Of last 1 0 ..............................
Of last 1 5 ..............................
Of career...............................
Other......................................
86
2
9
6
(2)
3
(2)
75
58
2
14
(2)
87
3
9
7
(2)
2
(2)
75
59
3
13
(2)
87
2
8
4
ft
3
85
2
11
7
ft
3
ft
ft
Other period......................................
3
2
ft
76
57
3
16
ft
2
1Q0
11
ft
ft
ft
-
ft
10
ft
7
3
72
57
1
14
1
5
1 Excludes supplemental pension plans.
2 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
45
Table 42. Private pension plans:1 Percent of full-time participants in plans with percent of career earnings benefit formulas
by type and amount of formula, medium and large firms, 1984
Provision for
integration with
Social Security
benefit
Provision for
maximum benefit3
Type and amount of
formula2
Type and amount of
formula2
Total
Without
Subject Not sub With inte
inte
to maxi ject to
grated
grated
mum
maximum formula
formula
100
100
100
100
100
Total .....................
100
100
100
36
2
3
6
21
3
1
49
8
9
28
35
1
3
5
23
3
1
9
97
6
11
10
68
1
2
Flat percent per year of
service........................
Less than 1 .0 0 .......
1.00-1.24 .................
1.25-1.49 .................
1.50-1.74 .................
1.75-1.99 .................
2.00-2.24 .................
45
2
1
4
35
2
O
41
2
5
33
45
2
1
3
37
2
o
64
2
62
51
11
40
Percent per year
varies..........................
By service...............
By earnings.............
55
2
53
59
8
51
2
5
1
4
Percent per year
By earnings.............
Without
inte
grated
formula
Professional and
administrative
Flat percent per year of
Less than 1 .0 0 .......
1.00-1 24 ...............
1 25-1 49
1 50-1 74 ................
1 75-1 99
2 00-2 24
Total
Subject Not sub With inte
to maxi ject to
grated
mum
maximum formula
All participants
Total .....................
Provision for
integration with
Social Security
benefit
Provision for
maximum benefit3
65
2
64
3
3
91
2
89
100
100
7
98
4
4
6
85
_
4
(4)
3
1
55
2
53
93
2
91
2
2
ings on pensions payable from defined benefit plans.
4 Less than 0.5 percent.
1 Excludes supplemental pension plans.
2 If a plan contained more than one career earnings formula, a primary
formula was selected and tabulated. Table includes plans with career
earnings formulas that serve as an alternative to a terminal earnings for
mula.
3 These maximum provisions are independent of ERISA-imposed ceil1
4
3
2
NOTE: Data were insufficent to show technical-clerical and production
workers separately. Because of rounding, sums of individual items may
not equal totals. Dash indicates no employees in this category.
Table 43. Private pension plans:1 Percent of full-time participants in plans with dollar amount benefit formulas2 by type and
amount of formula, medium and large firms, 1984
Provision for maximum
benefit3
Type and amount of formula
Provision for maximum
benefit3
Total
Type and amount of formula
Total
Subject to Not subject
maximum to maximum
Subject to Not subject
maximum to maximum
All participants
Production
T otal..........................................
100
100
100
T otal..........................................
100
100
100
Flat monthly amount per year of
service ............................................
Less than $5.00 ..........................
S5.00-S9.99 .................................
S10.00-S14.99.............................
S15.00-S19.99.............................
$20 00-S24.99
......................
S25.00-S29 99 .............................
$30.00 or greater.......................
75
(4)
19
18
30
4
2
2
81
Flat monthly amount per year of
service ............................................
Less than $5.00 ..........................
S5.00-S9.99.................................
S10.00-S14.99..............................
S15.00-S19.99..............................
S20.00-S24.99 ..............................
S25.00-S29.99 .............................
$30.00 or greater.......................
77
0
21
20
28
4
2
2
82
25
32
8
7
5
6
73
1
18
14
36
3
1
1
24
32
9
6
5
6
75
1
20
16
34
3
1
1
Amount per year varies by service ...
5
5
5
Amount per year varies by service ...
5
4
6
20
14
22
Amount per year varies by
earnings..........................................
18
14
19
Amount per year varies by
1 Excludes supplemental pension plans.
2 Excludes plans with dollar amount formulas that serve as a minimum benefit alternative to a percent of earnings formula.
3 These maximum provisions are independent of ERISA-imposed ceilings on pensions payable from defined benefit plans.
4 Less than 0.5 percent.
NOTE: Data were insufficient to show professional-administrative and
technical-clerical workers separately. Because of rounding, sums of individual items may not equal totals. Dash indicates no employees in this
category,
46
Table 44. Private pension plans:1 Percent of full-time participants by provision for integration of pension with Social
Security benefit, medium and large firms, 1984
Type of benefit formula3
Provision
Total2
Terminal Career
Dollar
earnings earnings amount
All participants
Total
With integrated formula
Offset by Social Security
payment4 ...........................
Based on service1
2
5 ..........
4
3
Not based on service6 ...
Dollar amount...........
Percent of payment ...
Pure excess8 .........................
Step-rate excess9 .................
Integrated with a Social
Security breakpoint.....
Integrated with a specific
dollar breakpoint .........
Without integrated formula
Type of benefit formula3
Provision
With integrated formula
Offset by Social Security
payment4 ...........................
Based on service5 ..........
Not based on service6 ...
Dollar amount...........
Percent of payment ...
Pure excess8 .........................
Step-rate excess9 .................
Integrated with a Social
Security breakpoint.....
Integrated with a specific
dollar breakpoint.........
Without integrated formula
Dollar
Terminal Career
earnings earnings amount
Technical and clerical
100
100
100
100
56
84
83
1
36
29
7
62
51
20
12
8
0
11
11
1
2
19
19
63
10
13
20
9
7
43
44
16
17
With integrated formula
Offset by Social Security
payment4 ...........................
Based on service5 ..........
Not based on service6 ....
Dollar amount..........
Percent of payment ...
Pure excess0 ........................
Step-rate excess9 .................
Integrated with a Social
Security breakpoint.....
Integrated with a specific
dollar breakpoint.........
( 7)
7
T otal................................
8
99
Without integrated formula
Professional and administrative
Total
Total2
100
100
100
100
77
91
84
2
53
44
70
60
32
14
18
10
(7)
10
O
10
18
2
19
53
14
13
27
8
6
26
23
9
16
98
100
100
100
100
34
70
94
(7)
19
15
4
49
37
13
14
14
(7)
(7)
10
1
22
Production
100
100
100
100
77
89
72
9
50
40
9
67
56
17
9
11
8
(7)
(7)
11
2
3
26
20
54
15
13
21
11
7
33
23
11
28
With integrated formula
Offset by Social Security
payment4 ...........................
Based on service5 ..........
Not based on service6 ...
Dollar amount...........
Percent of payment ...
Pure excess6 ........................
Step-rate excess9 ................
Integrated with a Social
Security breakpoint.....
Integrated with a specific
dollar breakpoint.........
8
9
Total
91
1 Excludes supplemental pension plans.
2 Includes money purchase plans and plans with benefit formulas
based on a percent of employee or employer contributions.
3 If a plan contained more than one benefit formula based on termi
nal earnings, career earnings, or dollar amounts, the integrated formula
was tabulated. If neither of the formulas were integrated, a primary for
mula was selected and tabulated.
4 Benefit as calculated by formula is reduced by portion of primary
Social Security payment.
5 Offset is equal to the product of a percent of primary Social Secu
rity payments and the participant's years of service with the employer.
A maximum offset is frequently applied, for example, 50 percent.
6 Benefit formula includes a reduction by a specified percent of pri
Without integrated formula
1
14
19
80
6
12
14
9
6
66
66
30
6
4
(7)
100
mary Social Security payments or a specific dollar amount. Although
generally offsets of up to 83.33 percent are permitted by the Internal
Revenue Service for plan qualification, offsets in excess of 50 percent
are uncommon.
7 Less than 0.5 percent.
8 Formula does not apply to earnings subject to FICA (Social Secu
rity) taxes or below a specific dollar breakpoint.
9 Formula applies lower benefit rate to earnings subject to FICA (So
cial Security) taxes or below a specific dollar breakpoint.
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
<
47
O
1
12
2
(7)
Table 45. Private pension plans:1 Percent of full-time participants by maximum benefit provisions,2 medium and large
firms, 1984
Type of benefit formula4
Maximum benefit provision
Total1
*3
Dollar
Terminal Career
earnings earnings amount
All participants
Type of benefit formula4
Maximum benefit provision
Total3
Dollar
Terminal Career
earnings earnings amount
Technical and clerical
T ota l..........................................
100
100
100
100
T otal..........................................
100
100
100
100
Subject to maximum5 ........................
Limit on years of credited
service......................................
Less than 2 0 ..........................
2 0 ...........................................
21-24 .....................................
2 5 ...........................................
26-29 .....................................
3 0 ...........................................
31-34 .....................................
3 5 ...........................................
36-39 .....................................
4 0 ...........................................
More than 4 0 .........................
Other maximum7..........................
42
63
15
24
45
59
13
19
34
2
1
(*)
4
(*)
12
1
8
1
4
(*)
11
51
3
1
10
g
15
1
O
(6)
(*)
7
O
18
1
13
1
7
(*)
10
4
2
6
(6)
3
3
4
6
7
1
3
1
2
(*)
8
41
2
2
(*)
5
(*)
14
1
10
1
6
(*)
8
54
3
2
6
O
18
1
14
1
6
(*)
16
18
1
1
(•)
2
Subject to maximum5 ........................
Limit on years of credited
service......................................
Less than 2 0 ..........................
2 0 ....................................
21-24 ...................
25 ..........................................,
26-29 .....................................
3 0 ...........................................
31-34 ....................................
3 5 .................................
36-39 .................................
40 .................................
More than 4 0 ....................
Other maximum7..........................
6
4
Not subject to maximum..................
58
37
85
76
Not subject to maximum..................
55
41
87
81
100
100
100
100
4
3
2
Professional and administrative
Production
T otal..........................................
100
100
100
100
Subject to maximum5 ........................
Limit on years of credited
service .......................................
Less than 2 0 ..........................
2 0 ...........................................
2 5 ...........................................
26-29 .....................................
3 0 ...........................................
31-34 .....................................
3 5 ...........................................
36-39 .....................................
4 0 ...........................................
More than 4 0 .........................
Other maximum7..........................
46
62
13
27
40
2
1
4
1
13
1
11
1
7
(*)
10
54
2
1
6
1
17
1
16
1
9
(6)
13
10
20
4
Not subject to maximum..................
54
38
87
T otal.........................................
3
3
3
4
4
7
Subject to maximum5 ........................
Limit on years of credited
service......................................
Less than 2 0 ..........................
2 0 ...........................................
2 5 ...........................................
26-29 .....................................
30 ...........................................
31-34 .....................................
3 5 ...........................................
36-39 .....................................
4 0 ...........................................
More than 4 0 .........................
Other maximum7..........................
73
Not subject to maximum..................
1
2
10
1 Excludes supplemental pension plans.
3
These maximum provisions are independent of ceilings on pen
sions payable from defined benefit plans imposed by the Employee Re
tirement Income Security Act.
3 Includes money purchase plans and plans with benefit formulas
based on a percent of employee or employer contributions.
4 If a plan contained more than one benefit formula based on termi
nal earnings, career earnings, or dollar amounts, the formula containing
a maximum benefit provision was tabulated. If neither of the formulas
was affected by a maximum benefit provision, a primary formula was
48
38
69
18
24
26
2
1
3
(*)
11
1
6
1
1
(•)
14
46
5
1
4
(*)
20
2
12
1
2
(*)
26
12
18
1
2
2
7
8
7
1
3
1
2
1
8
62
31
82
76
4
(6)
selected and tabulated.
5 The total is less than the sum of individual items because some
plans contain a limit on years of credited service and another maximum
provision.
6 Less than 0.5 percent.
7 The benefit yielded under the formula is limited to either a percent
of terminal or career earnings, often coordinated with primary Social Se
curity payments, or to a flat dollar amount.
NOTE: Dash indicates no employees in this category.
Table 46. Private pension plans:1 Average replacement rates for specified final earnings and years of service,2 medium and
large firms, 1984
Years of service
Final annual earnings
10
15
20
25
30
35
40
Private pension only
All participants
$15,000...........................
$20,000...........................
$25,000..........................
$30,000 ...........................
$35,000 ...........................
$40,000...........................
11.0
9.9
9.7
9.7
9.7
9.8
16.1
14.4
14.2
14.2
14.3
14.4
21.0
18.8
18.4
18.5
18.6
18.7
26.0
23.2
22.7
22.6
22.7
22.8
30.8
27.4
26.6
26.5
26.5
26.6
35.0
31.0
30.0
29.7
29.6
29.6
38.9
34.3
33.0
32.6
32.3
32.3
10.6
10.2
10.5
10.8
11.0
11.3
15.5
14.8
15.2
15.7
16.2
16.6
20.3
19.3
19.7
20.4
21.0
21.6
25.0
23.6
24.0
24.8
25.6
26.3
29.4
27.7
28.1
28.9
29.7
30.4
33.3
31.2
31.5
32.3
33.0
33.8
36.6
34.3
34.5
35.1
35.8
36.5
10.5
10.1
10.5
10.8
11.1
11.4
15.4
14.8
15.3
15.9
16.5
16.9
20.1
19.4
20.0
20.8
21.4
22.0
24.6
23.8
24.5
25.4
26.1
26.8
29.0
27.9
28.6
29.5
30.3
31.0
32.8
31.4
32.1
32.9
33.7
34.4
36.1
34.4
35.0
35.8
36.5
37.2
11.4
9.6
8.9
8.5
8.2
8.1
16.7
14.0
13.0
12.4
12.1
11.8
22.0
18.3
16.9
16.2
15.8
15.4
27.3
22.6
21.0
20.0
19.3
18.9
32.5
26.9
24.8
23.6
22.8
22.2
37.1
30.7
28.1
26.6
25.6
24.9
41.5
34.2
31.2
29.4
28.2
27.4
Professional and
administrative
$15,000...........................
$20,000..........................
$25,000..........................
$30,000..........................
$35,000 ..........................
$40,000 ...........................
Technical and
clerical
$15,000...........................
$20,000...........................
$25,000...........................
$30,000 ...........................
$35,000 ...........................
$40,000 ...........................
Production
$15,000 ...........................
$20,000...........................
$25,000 ..........................
$30,000...........................
$35,000 ...........................
$40,000 ..........................
Combined private pension and primary3 Social Security benefit
All participants
$15,000..........................
$20,000...........................
$25,000...........................
$30,000...........................
$35,000..........................
$40,000..........................
53.9
49.0
42.4
37.5
33.8
30.9
59.0
53.5
46.8
42.0
38.4
35.5
64.0
58.0
51.1
46.3
42.7
39.8
69.0
62.3
55.3
52.6
46.8
43.9
73.8
66.5
59.3
54.3
50.6
47.7
78.0
70.1
62.7
57.5
53.7
50.7
81.8
73.4
65.7
60.4
56.4
53.3
53.6
49.3
43.2
38.6
35.2
32.4
58.5
53.9
47.9
43.5
40.3
37.7
63.3
58.4
52.4
48.2
45.1
42.7
67.9
62.7
56.7
52.6
49.7
47.3
72.3
66.8
60.8
56.7
53.8
51.5
76.2
70.3
64.2
60.1
57.1
54.9
79.6
73.4
67.2
62.9
59.9
57.6
53.4
49.3
43.2
38.6
35.2
32.5
58.3
54.0
48.0
43.7
40.6
38.0
63.0
58.5
52.7
48.6
45.5
43.1
67.6
63.0
57.2
53.2
50.2
47.8
72.0
67.0
61.3
57.3
54.4
52.1
75.8
70.5
64.8
60.7
57.8
55.5
79.0
73.5
67.7
63.6
60.6
58.3
Professional and
administrative
$15,000..........................
$20,000...........................
$25,000...........................
$30,000...........................
$35,000...........................
$40,000...........................
Technical and
clerical
$15,000...........................
$20,000...........................
$25,000...........................
$30,000 ...........................
$35,000...........................
$40,000..........................
See footnotes at end of table.
49
Table 46. Private pension plans:1 Average replacement rates for specified final earnings and years of service,2 medium and
large firms, 1984—Continued
Years of service
Final annual earnings
10
20
15
25
30
35
40
80.1
69.8
60.8
54.4
49.7
46.0
84.5
73.3
63.8
57.2
52.3
48.4
Combined private pension and primary3 Social Security benefit
Production
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
..........................
...........................
...........................
...........................
...........................
...........................
59.7
53.1
45.6
40.2
36.2
32.9
54.3
48.7
41.6
36.3
32.3
29.2
65.0
57.4
49.6
44.0
39.9
36.5
70.2
61.7
53.6
47.8
43.4
40.0
1 Excludes supplemental pension plans.
2 Retirement annuity as a percent of earnings in the final year of work.
The maximum private pension available to an employee, not reduced for
early retirement or joint-and-survivor annuity, was calculated under each
pension plan using the earnings and service assumptions shown. This
benefit level was then expressed as a percent of earnings in the last year
of employment.
These calculations assume employees retired on January 1, 1984,
and final earnings are for 1983.
Earnings histories, necessary for
75.4
66.1
57.5
51.4
46.9
43.3
applying the pension formulas, were constructed for each final earnings
level based on data provided by the Social Security Administration.
For private pension formulas that are integrated with Social Security
(see table 44) and for computation of Social Security benefits, the worker
is assumed to have retired at age 65 and paid into Social Security for 40
years.
Computations exclude 4 percent of participants in money
purchase plans or plans with benefits based on career contributions.
3 Excludes benefits for spouses and other dependents.
Table 47. Private pension plans:1 Percent of full-time participants by minimum age and associated service requirements for
normal retirement,2 medium and large firms, 1984
Age and service requirements3
All par
ticipants
Profes
sional Technical
Produc
and ad and cleri
tion par
ministra cal par
ticipants
tive par ticipants
ticipants
T o ta l.....................................
100
100
100
100
No age requirement.....................
Less than 30 years’ service ....
30 years’ service....................
More than 30 years’ service ...
17
1
16
0
9
1
7
1
9
1
8
(4)
25
(4)
24
1
Less than age 55 .........................
30 years’ service ....................
(4)
(4)
Age 55 ..........................................
5 or 10 years’ service............
20 years’ service ....................
30 years’ service....................
More than 30 years’ service ...
(4)
(4)
5
1
2
2
O
8
2
5
1
4
1
2
1
(4)
O
(4)
3
(4)
1
2
1
1
9
3
0
Age 56-59 .....................................
15 or 20 years' service..........
More than 30 years’ service ...
1
1
1
_
1
1
0
(4)
Age 60 ..........................................
No service requirement.........
1-4 years’ service...................
5 years' service ......................
10 years’ service ....................
11-14 years’ service...............
15 years’ service ....................
20 years' service....................
25 years’ service....................
30 years’ service ....................
More than 30 years’ service ...
13
3
(4)
2
2
0
1
1
(4)
3
1
18
4
0
3
3
(4)
2
(4)
O
5
1
15
3
O
2
3
(4)
1
0
(4)
4
1
4
O
0
2
0
0
1
(4)
3
(4)
Profes
sional Technical
Produc
and ad and cleri
tion par
ministra cal par
ticipants
tive par ticipants
ticipants
Age and service requirements3
All par
ticipants
Age 61 ..........................................
No service requirement.........
20 years’ service ....................
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
<4)
(4)
Age 62 ..........................................
No service requirement.........
1-4 years’ service...................
5 years’ service ......................
6-9 years’ service...................
10 years’ service ....................
11-14 years’ service...............
15 years’ service....................
20 years’ service....................
25 years' service ....................
30 years’ service....................
More than 30 years’ service ...
17
4
(4)
1
(4)
7
(4)
1
1
1
1
0
18
5
0
1
(4)
7
(4)
1
(4)
1
2
(4)
18
6
0
1
16
4
0
(4)
5
(4)
1
1
1
2
0
8
(4)
1
1
1
1
1
Age 63-64 .................................... ,
No service requirement .........
10 years’ service....................
3
(4)
1
1
3
1
0
(4)
Age 65 ..........................................
No service requirement..........
1-4 years’ service...................
5 years’ service ......................
10 years’ service....................
37
33
(4)
1
3
32
30
39
36
1
2
1
2
Sum of age plus service..............
Equals less than 80 ..............
Equals 8 0 ................................
Equals 8 5 ................................
Equals 86-89 ...........................
Equals 90 or more .................
9
2
1
4
(4)
2
14
2
1
7
(4)
3
11
2
1
4
1
4
' Excludes supplemental pension plans.
2 Normal retirement is defined as the point at which the participant
could retire and immediately receive all accrued benefits by virtue of
service and earnings, without reduction due to age.
3 If a plan had alternative age and service requirements, the earliest
age and associated service were tabulated; if one alternative did not
1
1
0
0
38
33
(4)
1
4
6
1
(4)
3
-
1
specify an age, it was the requirement tabulated.
4 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
50
Table 48. Private pension plans:1 Percent of full-time participants by minimum age and associated service requirements for
early retirement,2 medium and large firms, 1984
Age and service requirements3
Total .....................................
Participants in plans permitting
early retirement..........................
All par
ticipants
100
Profes
sional Technical
Produc
and ad and cleri
tion par
ministra cal par
ticipants
tive par ticipants
ticipants
100
100
96
97
97
No age requirement.................
Less than 30 years'
service ............................
30 years’ service ..............
5
10
6
3
1
5
1
9
1
5
Less than age 55 .....................
No service requirement ....
5 years’ service ................
10 years’ service ..............
15 years’ service..............
20 years’ service..............
25 years’ service..............
More than 30 years’
service ...........................
7
4
9
Age 55 ......................................
No service requirement....
1-4 years’ service.............
5 years’ service ................
6-9 years' service.............
10 years' service ..............
11-14 years’ service.........
15 years’ service ..............
1
1
1
0
3
(4)
62
9
O
4
0
0
1
1
1
(4)
0
(4)
1
1
1
0
4
_
_
66
9
68
8
(4)
5
O
5
Age 55—Continued
20 years’ service..............
25 years’ service..............
(4)
39
7
41
1
7
43
<4)
8
3
(4)
4
3
(4)
0
3
O
Age 56-59 .................................
10-20 years’ service..........
30 years’ service..............
2
2
1
1
1
1
Age 60 ......................................
No service requirement ....
5 years’ service ................
10 years’ service..............
15 years' service..............
20 years' service..............
30 years' service..............
10
1
5
1
4
1
1
3
1
1
1
(4)
1
2
1
1
2
8
(4)
(4)
1
1
(4)
(4)
5
5
(4)
(4)
(4)
O
(4)
(4)
0
17
(4)
(4)
8
8
(4)
5
Age 62 ......................................
10 years’ service..............
O
57
9
(4)
2
(4)
O
All par
ticipants
100
97
0
Age and service requirements3
Profes
sional Technical
Produc
and ad and cleri
tion par
ministra cal par ticipants
tive par ticipants
ticipants
36
(4)
7
1 Excludes supplemental pension plans.
2 Early retirement is defined as the point at which a worker could re
tire and immediately receive accrued benefits based on service and
earnings but reduced for each year prior to normal retirement age.
3 If a plan had alternative age and service requirements, the earliest
age and associated service were tabulated; if one alternative did not
Sum of age plus service.........
Equals 70 or less .............
Equals 75 ..........................
Equals 76-79 .....................
Equals 80 ..........................
Equals 85 ..........................
10
1
1
1
1
5
Participants in plans without early
retirement ..................................
3
(4)
(4)
9
9
2
2
1
1
1
3
4
3
2
(4)
(4)
10
1
(4)
1
2
1
(4)
8
3
3
specify an age, it was the requirement tabulated.
4 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
51
Table 50. Private pension plans:1 Percent of full-time
participants by provisions for disability retirement, medium
and large firms, 1984
Table 49. Private pension plans:1 Percent of full-time
participants in plans permitting early retirement by reduction
factor for immediate start of payments, medium and large
firms, 1984
Reduction for each year prior to
normal retirement age
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T otal..........................................
100
100
100
100
Uniform percentage2 .........................
Less than 3 .0 ..............................
3 .0 ................................................
3.1-3.9..........................................
4.0 ...............................................
4.1-4.9..........................................
5.0 ...............................................
5.1-5.9..........................................
6.0 ................................................
6.7 ................................................
6.8-7.1 ..........................................
7 .2 ................................................
7.3 or m ore.................................
41
1
7
3
5
2
6
(3)
15
1
(3)
1
(3)
40
3
7
3
7
2
7
(3)
9
(3)
(3)
1
(3)
43
1
8
2
7
1
9
(3)
13
1
(3)
1
(3)
41
1
7
2
3
3
4
(3)
18
1
O
2
(3)
Percentage varies by a g e ................
Reduction differs for each year
of early retirement4 ..................
Reduction differs by age
bracket5 ....................................
56
53
53
59
20
15
18
23
36
38
35
36
Percentage varies by service..........
3
6
3
(3)
Other basis........................................
(3)
(3)
O
Characteristic
Total with disability retirement
benefits..................................
Profes
sional Techni
and
cal and Produc
All par
adminis clerical tion par
ticipants
trative
partici ticipants
partici
pants
pants
90
90
86
92
T ota l..........................................
100
100
100
100
No age or service .............................
Age o n ly ............................................
Service only ......................................
Age and service...............................
Meets qualification for long-term
disability benefits............................
17
0
52
9
20
0
39
8
21
(2)
36
10
13
(2)
67
9
22
34
32
11
100
100
100
100
79
63
7
10
Minimum requirements for
disability retirement
Benefit provisions
T otal..........................................
-
1 Excludes supplemental pension plans.
2 In specific cases, uniform percentage reductions may approximate ac
tuarial reductions, such as early retirement at age 55 with a 6 percent a
year reduction between age 55 and the plan’s normal retirement age of
62.
3 Less than 0.5 percent.
4 Reduction schedule is related to actuarial assumptions of the life
expectancy at age that pension payments begin.
5 Rate of reduction is held constant within age brackets, but differs
among brackets, sometimes in approximation of an actuarial table. For
example, benefits may be reduced by 6.7 percent for each year between
age 60 and the plan’s normal retirement age, and by 3.3 percent for each
year retirement precedes age 60. Also includes some plans which reduce
benefits arithmetically for each year immediately below normal retirement
age and actuarially below a specified age, usually 55.
Immediate disability retirement3 .......
Unreduced normal formula4 ........
Reduced normal formula5 ...........
Other than normal formula6 ........
62
48
7
8
48
34
8
6
44
32
6
7
Deferred disability retirement...........
With benefits based on:
Service when disabled ...............
Service plus credit to early
retirement date or la te r...........
Service with some credit............
Not based on service....................
38
52
56
21
5
6
8
4
31
1
O
45
1
(*>
47
1
(*)
16
(*)
0
1 Excludes supplemental pension plans.
2 Less than 0.5 percent.
3 Immediate disability pensions may be supplemented by additional al
lowances until an employee reaches a specified age or becomes eligible
for Social Security.
4 The disabled worker’s pension is computed under the plan’s normal
benefit formqla and is paid as if retirement had occurred on the plan’s nor
mal retirement date, based on years of service actually completed.
5 The disabled worker’s pension is computed under the plan’s normal
benefit formula, based on years of service actually completed, and then
reduced for early receipt.
6 The disabled worker’s benefit is not computed by the plan’s normal
benefit formula. The methods used include flat amount benefits, dollar
amount formulas, percent of unreduced normal benefits less Social Secu
rity, and percent of earnings formulas both with and without Social Secu
rity offsets.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
52
Table 51. Private pension plans:1 Percent of full-time
participants by provision for credit for service after age 65,
medium and large firms, 1984
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Type of credit
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T otal..........................................
100
100
100
100
No credit for service.........................
Pension deferred with no change
in am ount.................................
Pension deferred, but increased
actuarially.................................
Pension deferred, but increased
by percent per additional year
of service2 ................................
Pension begins at age 6 5 ...........
56
59
65
51
49
51
55
44
5
4
6
4
2
1
3
1
3
1
2
1
43
25
40
24
34
22
49
27
17
15
12
21
0
O
O
O
Credit for service, no actuarial
increase3 .........................................
All service credited .....................
Service credited to specified
maximum a g e ...........................
Service credited to specified
maximum years of service.......
Credit for service, with actuarial
increase5 .........................................
All service credited .....................
Service credited to specified
maximum a g e ...........................
Service credited to specified
maximum years of service.......
1
1
1
1
1
1
1
1
0
0
0
(4)
0
-
-
0
1 Excludes supplemental pension plans.
2 The pension amount computed at age 65 is increased by a specified
percent (not part of the benefit formula) for each year the employee re
mains active.
3 Additional service is included in the benefit formula, but the pension is
not increased for later retirement date.
4 Less than 0.5 percent.
5 Additional service is included in the benefit formula and the pension is
increased for later retirement date.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
53
Table 52. Private pension plans:1 Percent of full-time participants in plans granting ad hoc postretirement
annuity increases,2 medium and large firms, 1984
Characteristics
All participants
Professional and
administrative
participants
Technical and
clerical participants
Production partici
pants
Total with at least one postretirement increase in
the 1979-83 period...............................................
47
47
44
48
T o ta l.................................................................
100
100
100
100
O ne...........................................................................
T w o ...........................................................................
Three........................................................................
F ou r..........................................................................
Five or m ore.............................................................
47
18
16
7
12
54
18
17
4
7
60
15
19
3
4
37
19
15
11
18
T o ta l.................................................................
100
100
100
100
No minimum .............................................................
With minimum ..........................................................
Monthly dollar am ount.......................................
Less than $5.00............................................
$ 5.00.............................................................
$10.00...........................................................
$11.00-$14.00 ...............................................
$15.00 ...........................................................
$20.00 ...........................................................
$25.00 ...........................................................
More than $25.00 .........................................
Varies by date of retirement........................
Percent of present be n efit................................
Greater of a monthly dollar amount or a
percent of present benefit..............................
Not determinable.....................................................
78
20
18
(3)
3
5
2
4
1
1
1
(3)
1
75
24
20
(3)
5
5
1
5
1
1
1
(3)
2
69
28
26
(3)
5
10
1
6
1
1
(3)
(3)
2
85
14
13
1
3
4
4
(3)
1
(3)
(3)
1
1
2
1
2
1
3
1
1
T o ta l.................................................................
100
100
100
100
No maximum............................................................
With maximum .........................................................
Monthly dollar amount .......................................
$100.00 or le ss.............................................
$101.00-$150.00 ...........................................
$151.00-$200.00 ...........................................
More than $200.00 .......................................
Percent of present benefit ................................
Less than 1 0 ................................................
10-14.............................................................
15-19.............................................................
20-29 .............................................................
30 or more ...................................................
Greater of a monthly dollar amount or a
percent of present benefit..............................
Not determinable.....................................................
57
42
12
3
3
2
4
29
15
11
1
1
2
53
45
15
4
2
1
8
29
13
12
(3)
1
2
47
50
17
5
1
5
6
33
18
10
(3)
1
3
63
36
8
1
4
1
2
27
14
10
1
(3)
2
1
2
1
2
(3)
3
1
1
Number of increases granted in
past 5 years
Provision for minimum increase in most recent
adjustment
Provision for maximum increase in most
recent adjustment
See footnotes at end of table.
54
Table 52. Private pension plans:' Percent of full-time participants in plans granting ad hoc postretirement
annuity increases,2 medium and large firms, 1984—Continued
All participants
Professional and
administrative
participants
Technical and
clerical participants
Production partici
pants
Total .................................................................
100
100
100
100
Flat increase ............................................................
Monthly dollar amount.......................................
Less than $10.00 .........................................
$10.00...........................................................
$10.01-$20.00 ...............................................
More than $20.00 .........................................
Varies by date of retirement........................
Percent of present benefit ................................
Less than 5 .0 ................................................
5.0 .................................................................
5.1-7.4 ...........................................................
7.5-9.9...........................................................
10.0 ...............................................................
10.1-14.9.......................................................
15.0 ...............................................................
More than 1 5.0.............................................
Varies by date of retirement........................
Type of flat increase not determinable............
29
5
2
1
1
1
(3)
24
3
1
2
1
1
1
1
1
14
(3)
29
2
(3)
(3)
1
ft
28
3
(3)
3
(3)
1
2
1
1
16
-
29
2
(3)
(3)
1
(3)
28
6
(3)
2
1
1
2
1
(3)
14
-
29
8
3
2
1
1
1
21
2
1
2
1
(3)
1
0
1
12
ft
Increase per year of retirement..............................
Monthly dollar am ount.......................................
Percent of present benefit ................................
Less than 2 .0 ...............................................
2.0 .................................................................
2.5-2.9...........................................................
3.0 .................................................................
3.1-3.9 ...........................................................
4.0 .................................................................
4.1-4.9 ...........................................................
5.0 .................................................................
5.1-5.9 ...........................................................
6.0 .................................................................
More than 6.0 ...............................................
Varies by date of retirement........................
Type of increase per year of retirement not
determinable ...................................................
43
1
42
3
6
1
7
(3)
2
3
11
3
2
(3)
5
50
2
47
5
5
1
11
1
2
3
11
3
3
4
55
1
53
3
7
1
8
1
3
3
14
2
3
9
34
1
34
3
6
ft
4
2
2
10
4
ft
ft
3
1
1
1
Increase per year of service...................................
Monthly dollar am ount.......................................
Less than $.50..............................................
$.50 ...............................................................
$.51-$.99.......................................................
$1.00 .............................................................
$1.01 -$1.99 ..................................................
$2.00 .............................................................
More than $2.00...........................................
Varies by date of retirement........................
Percent of present benefit ................................
24
23
7
1
(3)
8
(3)
1
2
5
(3)
16
15
3
1
(3)
5
(3)
3
3
1
11
11
2
(3)
2
1
(3)
3
2
(3)
2
1
Characteristics
Benefit formula fo r most recent
increase
Combination of two or more benefit formulas........
2
3
3
Type of formula not determinable...........................
1
2
2
' Excludes supplemental pension plans.
(3)
34
34
11
2
ft
12
1
1
1
7
ft
NOTE: Because of rounding, sums of individual items may
not equal totals. Dash indicates no employees in this category,
2 Unscheduled increases in pension payments for employees
retiring prior to 1984.
3 Less than 0.5 percent.
55
Table 54. Private pension plans:’ Percent of full-time
participants by provision for postretirement survivor annuity,
medium and large firms, 1984
Table 53. Private pension plans:1 Percent of full-time
participants by vesting provisions, medium and large firms,
1984
Provision
Total2 ........................................
Cliff vesting,3 with full vesting after:
10 years of service at any age ...
10 years of service after
age 22 ......................................
Other4...........................................
Graduated vesting,5 with full vesting
after:
15 years of service6 ....................
Other4...........................................
*
Profes
sional
and
All par
Type of annuity for surviving spouse
adminis
ticipants
trative
partici
pants
Profes
sional Techni
and
cal and Produc
All par
adminis clerical tion par
ticipants
trative
partici ticipants
partici
pants
pants
100
100
100
100
66
63
59
72
19
4
20
5
24
5
16
2
4
10
4
10
5
12
2
8
T otal..........................................
100
100
100
100
Postretirement survivor annuity
provided..........................................
100
100
100
100
90
92
94
86
20
15
16
24
6
5
3
9
1
(3)
(3)
1
63
72
74
53
Spouse’s share of joint-and-survivor annuity plus portion of
retiree’s pension.......................
5
3
1
8
Portion of retiree’s accrued
pension o n ly .............................
5
5
5
6
Spouse's share of joint-and-survivor annuity2 o n ly....................
50 percent of retiree’s
pension...............................
51-99 percent of retiree’s
pension...............................
100 percent of retiree’s
pension...............................
Alternative percentages at
retiree’s option ...................
1 Excludes supplemental pension plans.
2 Because plans may adopt alternative vesting schedules, sums of par
ticipants covered by individual vesting schedules may exceed 100 percent.
3 Under a cliff vesting schedule, an employee is not entitled to any
benefits accrued under a pension plan until satisfying the requirement for
100 percent vesting. The Employee Retirement Income Security Act
(ERISA) specifies 10 years as the maximum requirement for this form of
vesting.
4 Includes both participants in plans containing vesting schedules more
liberal than ERISA standards and, for graduated vesting, in plans adopting
other ERISA standards.
5 Graduated vesting schedules give an employee rights to a gradually
increasing share of accrued pension benefits, determined by years of serv
ice and eventually reaching 100 percent vesting status.
6 Participants in this group were in plans that adopted ERISA’s longest
time span for graduated vesting which calls for 25 percent vesting with 5
years of service, with the vested percentage increasing 5 percentage
points each year for 5 succeeding years, then 10 percentage points for
each of the next 5 years. Thus, 15 years is the maximum requirement for
this form of vesting.
Techni
cal and Produc
clerical tion par
partici ticipants
pants
Postretirement survivor annuity not
provided4 ........................................
(3)
(3)
(3)
(3)
1 Excludes supplemental pension plans.
2 An annuity that provides income during the lifetime of both the retiree
and the surviving spouse. The accrued pension will usually be actuarially
reduced at retirement because of the longer length of time that payments
are expected to be made. ERISA requires that plans provide this annuity
as an automatic form of pension payment. Employees must waive the
spouse annuity in writing if they desire a pension during their lifetime only
or another option offered by the plan, such as guarantee of payments for
a specified period.
3 Less than 0.5 percent.
4 Includes participants in money purchase plans where the death bene
fit is in the form of a lump sum payment equal to the present value of the
accrued benefit less payments already received.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
56
Table 55. Private pension plans:' Percent of full-time
participants by provision for preretirement survivor annuity,
medium and large firms, 1984
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Type of annuity for surviving
spouse1
2
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T otal..........................................
100
100
100
100
Preretirement survivor annuity
provided..........................................
99
99
98
99
Equivalent of joint and survivor
annuity3 .....................................
Based on early retirement4 ....
50 percent of employee
pension..........................
At extra employee
cost5 .......................
51-99 percent of
employee pension.........
At extra employee
cost5 .......................
100 percent of employee
pension..........................
At extra employee
cost5 .......................
Alternative percentages
of pension at em
ployee’s option.............
At extra employee
cost5 .......................
71
70
69
72
63
63
60
65
46
42
43
49
12
12
11
14
5
9
7
ft
3
(6)
5
_
4
ft
.
1
3
2
ft
ft
7
11
9
4
2
4
3
1
8
ft
8
ft
9
ft
7
1
22
22
27
20
14
13
16
13
7
8
9
6
2
2
2
1
Other annuity8 .............................
5
6
3
7
No preretirement survivor annuity
provided9 ........................................
1
1
2
1
Based on normal
retirement7...........................
At extra employee cost5...
Portion of accrued employee
benefit.......................................
Reduced for early
retirement...........................
Unreduced for early
retirement...........................
Based on service projected
to normal retirement date ...
1 Excludes supplemental pension plans.
2 Many plans offer an elective preretirement spouse option. If the elec
tive provision was the only option, it was tabulated: if it was in combination
with an automatic preretirement spouse option, only the automatic provi
sion was tabulated.
3 The spouse annuity is computed as if the employee had retired with a
joint-and-survivor annuity. That is, the accrued pension is first reduced be
cause of the longer length of time that payments were expected to be
made to both the retiree and the surviving spouse. The spouse’s share is
then the specified percent of the reduced amount.
4 Survivor annuity is based upon the benefit the employee would have
received if early retirement had occurred on the date of death.
5 Plan reduces the accrued employee pension benefit for each year
survivor protection is in force.
6 Less than 0.5 percent.
7 Survivor annuity is based on the benefit the employee would have re
ceived if eligible for normal retirement on the date of death.
8 Includes annuity based on a dollar amount formula or percent of earn
ings.
9 A preretirement survivor annuity is required by ERISA only where
plans allow the payment of retiree benefits prior to the plan's normal re
tirement age.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
57
Table 58. Length of service requirements for participation:1
Percent of full-time participants in health insurance, medium
and large firms, 1984
Table 56. Length of service requirements for participation:1
Percent of full-time participants in sickness and accident
insurance, medium and large firms, 1984
Length of service requirement
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Length of service requirement
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T otal....................................
100
100
100
100
T o ta l..........................................
100
100
100
100
With service requirement.................
1 m onth.......................................
2 m onths.....................................
3 m onths.....................................
4-5 months..................................
6 m onths.....................................
1 year...........................................
Over 1 year .................................
78
25
9
25
9
5
3
1
66
27
6
20
6
4
2
1
75
29
8
22
6
6
2
2
81
24
11
27
10
5
3
0
With service requirement.................
1 m onth.......................................
2 m onths.....................................
3 m onths.....................................
4-5 months..................................
6 m onths.....................................
Over 6 months ............................
56
20
7
18
3
8
1
42
18
3
12
1
7
1
50
17
4
19
1
7
1
67
23
10
20
5
8
1
Without service requirement............
43
57
50
32
Without service requirement............
22
34
24
19
Service requirement not
determinable..................................
Service requirement not
determinable..................................
1
1
1
ft
“
1
0
“
1 Length of time employees must be on the job before they are cov
ered by a plan that is at least partially employer financed. There is fre
quently an administrative time lag between completion of the requirement
and the actual start of participation. If the lag was 1 month or more, it
was included in the service requirement. Minimum age requirements are
rare.
2 Less than 0.5 percent.
1 Length of time employees must be on the job before they are cov
ered by a plan that is at least partially employer financed. There is fre
quently an administrative time lag between completion of the requirement
and the actual start of participation. If the lag was 1 month or more, it
was included in the service requirement. Minimum age requirements are
rare.
2 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
Table 59. Length of service requirements for participa
tion:1 Percent of full-time participants in basic life
insurance, medium and large firms, 1984
Table 57. Length of service requirements for participation:1
Percent of full-time participants in long-term disability
insurance, medium and large firms, 1984
Length of service requirement
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Length of service requirement
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T otal..........................................
100
100
100
100
With service requirement .................
1 month .......................................
2 m onths.....................................
3 m onths.....................................
4-5 months..................................
6 months .....................................
1 year...........................................
2 years.........................................
3 years.........................................
Over 3 years...............................
68
11
3
14
1
14
15
1
2
5
65
11
3
15
1
13
14
2
2
5
72
11
2
15
1
14
18
2
3
6
66
10
5
13
3
17
13
1
1
4
Without service requirement............
32
35
28
34
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
T o ta l.....................................
100
100
100
100
With service requirement.............
1 month ..................................
2 months.................................
3 months.................................
4-5 m onths..............................
6 months.................................
7-11 m onths............................
1 ye a r......................................
Over 1 y e a r.............................
56
19
8
18
(2)
7
ft
2
1
41
17
2
14
(2)
6
53
15
5
22
2
(2)
3
1
64
23
12
19
1
8
ft
2
(2)
Without service requirement ........
44
58
46
35
Service requirement not
determinable..............................
ft
O
(2)
(2)
-
ft
7
-
1
Length of time employees must be on the job before they are cov
ered by a plan that is at least partially employer financed. There is fre
quently an administrative time lag between completion of the requirement
and the actual start of participation. If the lag was 1 month or more, it
was included in the service requirement.
1 Length of time employees must be on the job before they are cov
ered by a plan that is at least partially employer financed. There is fre
quently an administrative time lag between completion of the require
ment and the actual start of participation. If the lag was 1 month or
more, it was included in the service requirement. Minimum age require
ments are rare.
2 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
58
Table 61. Type of plan sponsor: Percent of full-time
participants in sickness and accident insurance, medium and
large firms, 1984
Table 60. Age and length of service requirements for
participation:1 Percent of full-time participants in private
pension plans,2 medium and large firms, 1984
Age and service requirement
provisions3
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
Plan sponsor
T ota l...................................................
Minimum requirement
100
100
100
With minimum age and/or service
requirement....................................
63
63
72
58
Service requirement o n ly ...........
1-2 months.............................
3 m onths...............................
6 m onths...............................
1 year ....................................
2 years ..................................
3 years ..................................
Over 3 years..........................
22
1
1
2
16
1
1
1
20
(4)
1
2
15
1
1
1
22
O
1
2
15
1
2
2
24
1
1
3
17
1
ft
1
Age 24 or le ss.............................
No service requirement........
1-11 months of service .........
1 year ....................................
4
1
2
2
3
1
1
4
ft
2
2
5
2
1
2
Age 2 5 .........................................
No service requirement.........
1-6 months of service ..........
1 year5 ...................................
36
2
1
34
39
3
1
36
46
2
1
43
29
1
1
28
Without minimum age and/or
service requirement .......................
37
37
28
42
0
Single employer—union-negotiated
plan .................................................
Single employer—nonunion.............
Single employer—bargaining status
not known ......................................
100
T otal..........................................
100
100
100
100
With maximum age limitation6 ..........
61
67
71
52
Without maximum age limitation ......
39
33
29
48
Techni
cal and Produc
clerical tion par
partici ticipants
pants
100
100
100
100
31
42
10
58
11
53
41
35
11
10
9
12
-
4
2
22
7
1
3
Multiemployer' ..................................
2
State disability board2 .......................
12
Railroad retirement board................
2
22
-
1 Individual employers in the same or in a related industry contributing a
negotiated amount to trust fund providing benefits for employees covered
under a collective bargaining agreement. The scope of the agreement
may be at local, district council, or national level.
2 Administrators of mandatory temporary disability insurance benefits in
New Jersey and New York. Required benefits can be provided through an
employer-sponsored plan as a substitute for the State fund.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
Table 62. Type of plan sponsor: Percent of full-time
participants in long-term disability insurance, medium and
large firms, 1984
Maximum age requirement
T ota l..........................................
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Plan sponsor
’ Excludes maximum 6-month administrative time lags allowed by
ERISA. Most plans with time lags adopt the beginning of designated 6month periods as participation dates.
2 Excludes supplemental pension plans.
3 If a plan had alternate participation requirements, one of which was
T ota l..........................................
service only, the service only requirement was tabulated.
Single employer—union-negotiated
plan .................................................
Single employer—nonunion.............
Single employer—bargaining status
not known ......................................
4 Less than 0.5 percent.
5 ERISA legislation states that nearly all pension plans must allow par
ticipation to full-time employees who have reached age 25 and who have
completed one year of service.
6 ERISA legislation permits plan administrators to impose a maximum
age for participation. Maximum age must be within 5 years of the plan’s
normal retirement date.
Multiemployer' ..................................
NOTE: Because of rounding, sums of individual items may not equal to
tals.
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
100
100
100
100
15
76
3
89
6
88
37
51
9
8
6
12
ft
ft
-
1
' Individual employers in the same or in a related industry contributing a
negotiated amount to trust fund providing benefits for employees covered
under a collective bargaining agreement. The scope of the agreement
may be at local, district council, or national level.
2 Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
59
Table 64. Type of plan sponsor: Percent of full-time
participants in life insurance, medium and large firms,
1984
Table 63. Type of plan sponsor: Percent of full-time
participants in health insurance, medium and large firms,
1984
Plan sponsor
T otal..........................................
Single employer—union-negotiated
p la n ................................................
Single employer—nonunion.............
Single employer—bargaining status
not kn ow n......................................
Multiemployer1 ..................................
Employer association3 ......................
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Techni
cal and Produc
clerical tion par
partici ticipants
pants
Profes
sional
and
All par
adminis
ticipants
trative
partici
pants
Plan sponsor
100
100
100
100
27
59
16
73
15
73
38
46
10
11
9
10
Single employer—union-negotiated
p la n ................................................
Single employer—nonunion.............
Single employer—bargaining status
not known ......................................
O
3
6
Multiemployer1 ..................................
4
(*)
0
(1
2)
T otal..........................................
Employer association3 ......................
O
Techni
cal and Produc
clerical tion par
partici ticipants
pants
100
100
100
100
27
64
12
84
13
79
43
46
5
5
4
6
3
6
4
O
(2)
-
0
-
1 Individual employers in the same or in a related industry contributing a
negotiated amount to trust fund providing benefits for employees covered
under a collective bargaining agreement. The scope of the agreement
may be at the local, district council, or national level.
2 Less than 0.5 percent.
3 Band of small employers in a common trade or business, for example,
automobile dealers. The plan sponsored by the association is not negoti
ated with the employees.
1 Individual employers in the same or in a related industry contributing a
negotiated amount to trust fund providing benefits for employees covered
under a collective bargaining agreement. The scope of the agreement
may be at the local, district council, or national level.
2 Less than 0.5 percent.
3 Band of small employers in a common trade or business, for example,
automobile dealers. The plan sponsored by the association is not negoti
ated with the employees.
NOTE: Because of rounding, sums of individual items may not equal to
tals.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category
Table 65. Type of plan sponsor: Percent of full-time
participants in private pension plans,' medium and large
firms, 1984
Profes
sional Techni
and
cal and Produc
All par
adminis clerical tion par
ticipants
trative
partici ticipants
partici
pants
pants
Plan sponsor
Total..........................................
Single employer—union-negotiated
plan ................................................
Single employer—nonunion.............
Single employer—bargaining status
not known ......................................
Multiemployer2 ..................................
100
100
100
100
30
64
9
89
12
86
51
39
3
2
2
4
3
Employer association4 ......................
(3)
f)
(3)
’ 6
-
(3)
(3)
1 Excludes supplemental pension plans.
2 Individual employers in the same or in a related industry contributing a
negotiated amount to trust fund providing benefits for employees covered
under a collective bargaining agreement. The scope of the agreement
may be at the local, district council, or national level.
3 Less than 0.5 percent.
4 Band of small employers in a common trade or business, for example,
automobile dealers. The plan sponsored by the association is not negoti
ated with the participants.
NOTE: Because of rounding, sums of individual items may not equal to
tals. Dash indicates no employees in this category.
60
Table 66. Other benefits: Percent of full-time employees in establishments providing specified benefits by percent of
employees eligible, medium and large firms, 1984
Benefit
All workers
eligible
Total
51 to 99
percent
eligible
1 to 50
percent
eligible
0
None eligible
Data not
available
Professional and administrative employees
Paid leave:
Funeral leave .................................................................
Military le a ve .................................................................
100
100
88
81
0
0
Profit sharing, savings, and stock plans:
Profit sharing..................................................................
Savings and th rift...........................................................
Stock bonus plans.........................................................
Stock purchase plans ...................................................
Stock ownership plans2 ................................................
100
100
100
100
100
24
42
4
18
27
3
7
(’)
1
4
Income continuation plans:
Severance p a y ...............................................................
100
61
3
100
100
100
100
48
10
46
20
1
1
2
1
100
100
59
16
100
100
17
16
100
100
1
26
0
100
100
29
53
0
100
100
68
3
100
100
1
2
Paid leave:
Funeral leave ................................................................
Military le a v e ...............................................................
100
100
88
80
Profit sharing, savings, and stock plans:
Profit sharing....................................................
Savings and th rift...........................................................
Stock bonus plans.........................................................
Stock purchase plans ...................................................
Stock ownership plans2 ................................................
100
100
100
100
100
27
36
3
14
23
Income continuation plans:
Severance p a y ...............................................................
100
57
2
100
100
100
100
57
12
36
22
1
1
3
1
100
100
26
10
(’)
100
100
14
15
(’)
Miscellaneous benefits:
Employee discounts......................................................
G ifts ................................................................................
In-house infirmary..........................................................
Nonproduction bonuses................................................
Relocation allowance:
Full defrayment of expenses ..................................
Partial defrayment of expenses..............................
Recreational facilities:
Full defrayment of c o st............................................
Partial defrayment of c o s t.......................................
Subsidized meals:
Full defrayment of c o st............................................
Partial defrayment of c o s t.......................................
Educational assistance:
Full defrayment of expenses ..................................
Partial defrayment of expenses..............................
Parking:
Provided at no c o s t.................................................
Provided below commercial rate s..........................
Company automobile for personal business:
Without reimbursing the company..........................
Partially reimbursing the company.........................
7
14
5
5
67
45
87
74
63
5
5
5
6
5
2
30
5
3
1
7
46
81
45
67
5
6
5
6
1
2
5
3
29
73
6
6
1
1
1
76
77
5
5
2
93
66
5
5
1
1
65
40
5
5
4
5
2
19
90
5
5
1
1
16
11
77
81
5
5
6
15
5
5
1
64
48
91
79
67
5
5
5
5
5
1
34
5
2
3
1
37
80
53
70
5
6
5
5
3
2
65
82
6
6
80
79
6
6
1
1
0
3
1
0
O
0
(')
1
O
0
Technical and clerical employees
Miscellaneous benefits:
Employee discounts ......................................................
G ifts ................................................................................
In-house infirmary..........................................................
Nonproduction bonuses................................................
Relocation allowance:
Full defrayment of expenses ..................................
Partial defrayment of expenses..............................
Recreational facilities:
Full defrayment of c o st............................................
Partial defrayment of c o s t.......................................
See footnotes at end of table.
61
1
0
(’)
(’)
2
8
2
3
-
0
1
5
1
(’)
(')
0
(’)
Table 66. Other benefits: Percent of full-time employees in establishments providing specified benefits by percent of
employees eligible, medium and large firms, 1984—Continued
Benefit
Total
All workers
eligible
51 to 99
percent
eligible
1 to 50
percent
eligible
None eligible
Data not
available
Technical and clerical employees
Miscellaneous benefits—Continued
Subsidizea meals:
Full defrayment of co st............................................
Partial defrayment of c o s t.......................................
Educational assistance:
Full defrayment of expenses ..................................
Partial defrayment of expenses..............................
Parking:
Provided at no c o s t.................................................
Provided below commercial ra te s...........................
Company automobile for personal business:
Without reimbursing the company...........................
Partially reimbursing the company..........................
100
100
1
22
0
100
100
28
49
0
100
100
61
4
100
100
(’)
O
3
(1)
3
93
66
6
6
(')
1
1
66
44
5
5
5
0
6
3
23
88
5
5
(')
“
1
1
93
93
5
5
1
9
28
4
5
1
2
2
4
1
1
2
72
68
92
83
68
5
5
5
5
5
2
6
57
5
1
1
1
1
1
43
84
40
77
5
5
5
5
1
6
2
79
83
5
5
81
80
5
5
Production employees
Paid leave:
Funeral leave .................................................................
Military leave ..................................................................
100
100
86
66
Profit sharing, savings, and stock plans:
Profit sharing ..................................................................
Savings and th rift...........................................................
Stock bonus plans.........................................................
Stock purchase plans ...................................................
Stock ownership plans1
2 ................................................
100
100
100
100
100
19
19
3
11
23
Income continuation plans:
Severance p a y ...............................................................
100
30
100
100
100
100
51
9
53
17
100
100
9
10
-
100
100
14
15
0
100
100
1
16
(')
1
94
78
5
5
100
100
17
51
0
0
1
2
77
42
5
5
100
100
80
1
(')
1
1
12
93
5
5
1
94
95
5
5
Miscellaneous benefits:
Employee discounts......................................................
G ifts ................................................................................
In-house infirmary..........................................................
Nonproduction bonuses................................................
Relocation allowance:
Full defrayment of expenses ..................................
Partial defrayment of expenses..............................
Recreational facilities:
Full defrayment of co st............................................
Partial defrayment of c o s t.......................................
Subsidized meals:
Full defrayment of co st............................................
Partial defrayment of c o s t.......................................
Educational assistance:
Full defrayment of expenses ..................................
Partial defrayment of expenses..............................
Parking:
Provided at no c o s t.................................................
Provided below commercial ra te s ..........................
Company automobile for personal business:
Without reimbursing the company..........................
Partially reimbursing the company.........................
100
100
0
(’)
1 Less than 0.5 percent.
2 Include Employee Stock Ownership Plans and Payroll-based Stock
Ownership Plans.
1
0
0
2
4
O
1
(')
(')
(’)
O
-
O
-
2
“
(')
NOTE: Because of rounding, sums of individual items may not equal
totals. Dash indicates no employees in this category.
62
Appendix A: Technical Note
tions that do not require full knowledge of a pro
fessional or administrative field of work or the ap
plication of a high level of creativity, originality,
analytical ability, or independent judgment. Job
performance skills are typically acquired through
on-the-job experience and/or specific training
which is less than that usually represented by a
baccalaureate degree. These skills include the ap
plication of a practical knowledge of established
procedures, practices, precedents, and guidelines.
Scope of survey
This survey of the incidence and characteristics of
employee benefit plans covered private sector estab
lishments' in the United States, excluding Alaska and
Hawaii, employing at least 50, 100, or 250 workers, de
pending on the industry. Industrial coverage included:
Mining; construction; manufacturing; transportation,
communications, electric, gas, and sanitary services;
wholesale trade; retail trade; finance, insurance, and real
estate; and selected services (table A-l).
Establishments which met the minimum size criteria
as of the reference date of the sampling frame were in
cluded in the survey, even if they employed fewer
workers at the time of data collection. Establishments
found to be outside the industrial scope of the survey
at the time of data collection were excluded.
Table A-l shows the estimated number of establish
ments and employees within the scope of the survey
and the number within the sample actually studied for
each major industry division.
Production:
Includes skilled, semiskilled, and unskilled trades;
craft and production occupations; manual labor oc
cupations; custodial occupations; and operatives.
Occupational groups
Excluded from the survey were executive employees
(defined as those whose decisions have direct and sub
stantial effects on an organization’s policymaking), and
part-time, temporary, seasonal, and traveling operating
employees such as airline flight crews and long-distance
truckdrivers.
Data were collected individually for the following
three broad occupational groups:
Benefit areas
Professional-administrative:
Includes occupations that require a foundation
of knowledge in the theories, concepts, principles,
and practices of a broad field of science, learning,
administration, or management acquired through a
college-level education or the equivalent in pro
gressively responsible experience. Above entry
levels, the exercise of a high degree of creativity,
originality, analytical ability, and independent judg
ment to solve varied and complex problems in the
field of work is characteristic.
'
Technical-clerical:
Includes office and sales clerical, technical support, protective services, and other such occupa-1
Sampled establishments were requested to provide
data on work schedules and details of plans in each of
the following benefit areas: Paid lunch periods, paid
rest periods, paid holidays, paid vacations, personal
leave, sick leave, sickness and accident insurance, long
term disability insurance, health insurance, private re
tirement pensions, and life insurance.
BLS also collected data on the incidence of the fol
lowing additional benefits: Funeral leave; military leave;
profit sharing plans; savings and thrift plans; stock bonus
plans; stock purchase plans; stock ownership plans; sev
erance pay; employee discounts; noncash bonuses; non
production bonuses; relocation allowances; recreation
facilities; subsidized meals; educational assistance; auto
mobile parking; personal use of company-owned car;
and in-house infirmary.
Sampling frame
The scope of this survey was the same as that of the
Bureau’s 1984 National Survey of Professional, Admin
istrative, Technical, and Clerical Pay (PATC). The list
of establishments from which the sample was selected
(called the sampling frame) was, therefore, the same as
that developed for the 1984 PATC. This sampling frame
was developed by refining data from the most recently
1For this survey, an establishment was an economic unit(s) which
produced goods or services, a central administrative office, or an
auxiliary unit providing support services to a company. In manufac
turing industries, the establishment was usually a single physical lo
cation. In nonmanufacturing industries, all locations o f an individual
company within a Standard Metropolitan Statistical Area (SMSA)
or within a nonmetropolitan county were usually considered an
establishment.
63
Table A-1. Estimated number of establishments and workers within scope of survey and number studied, medium and large
firms, United States,1 1984
Industry division2
Minimum
employment in
Estimated
number of
establishments
within scope of establishments
survey
Number of workers in establishments
Professional
and
administrative
Total3
Technical and
clerical
Production
Within scope of survey4
45,007
23,533,388
5,324,711
5,243,586
10,444,668
Manufacturing................................................................... 5 100-250
19,352
11,989,993
2,567,491
1,652,062
7,541,882
Nonmanufacturing.............................................................
Mining.............................................................................
250
Construction ..................................................................
250
Transportation, communications, electric, gas, and
sanitary services...................................................... 9 100-250
Wholesale trade.............................................................
100
Retail trade....................................................................
250
100
Finance, insurance, and real estate.............................
Selected services7 ......................................................... 8 50-100
25,658
740
670
11,543,395
366,675
366,277
2,757,220
83,533
65,017
3,591,524
58,027
36,591
2,902,786
221,354
221,381
4,472
5,528
4,034
7,102
3,113
2,681,520
1,072,024
3,469,122
2,698,149
889,628
575,132
355,817
355,084
872,241
450,395
637,336
312,192
718,711
1,518,399
310,267
1,139,122
304,320
883,681
97,035
35,893
All industries...........................................................
-
-
Studied9
1,326
3,861,379
1,038,412
861,669
1,706,820
Manufacturing................................................................... 5 100-250
635
2,332,237
640,863
340,458
1,329,694
_
250
250
Nonmanufacturing.............................................................
Mining.............................................................................
Construction ..................................................................
Transportation, communications, electric, gas, and
sanitary services...................................................... 8 100-250
100
Wholesale trade.............................................................
250
Retail trad e ....................................................................
100
Finance, insurance, and real estate.............................
Selected services7 ......................................................... 8 50-100
691
26
30
1,529,142
30,040
51,584
397,549
12,557
15,632
521,211
8,454
9,163
377,126
8,569
20,527
163
82
146
173
71
669,130
32,310
338,635
330,134
77,309
162,183
12,809
36,864
114,040
43,464
191,053
10,706
83,968
194,423
23,444
259,294
6,098
71,575
5,620
5,443
1 Excludes Alaska and Hawaii.
2 As defined in the 1972 edition of the Standard Industrial Classification
Manual, U.S. Office of Management and Budget.
3 This figure includes out-of-scope workers. These workers-executive
management, part time, temporary, seasonal, and operating personnel in
constant travel status (e.g., airline pilots)-are excluded from the counts of
employment by occupational group.
4 Number of establishments and workers shown within the scope of
the survey are estimates. These estimates differ from those developed in
the 1984 PATC survey, since each is based on the findings of its
respective survey.
5 Minimum employment size was 100 for chemical and allied products;
petroleum refining and related industries; machinery, except electrical;
electrical machinery, equipment, and supplies; transportation equipment;
and instruments and related products. Minimum size was 250 in all other
manufacturing industries.
6 Minimum employment size was 100 for railroad transportation; local
and suburban transit; deep sea foreign and domestic transportation; air
transportation; communications; electric, gas, and sanitary services; and
pipelines; and 250 for all other transportation industries. U.S. Postal
Service is excluded from the survey.
7 Limited to advertising; credit reporting and collection agencies;
computer and data processing services; research and development
laboratories; commercial testing laboratories; management and public
relations services; engineering and architectural services; noncommercial
research organizations; and accounting, auditing, and bookkeeping
services.
8 Minimum employment size was 50 for accounting, auditing, and
bookkeeping services; and 100 in all other selected services.
9 These figures refer to all respondents to the survey, whether or not
they provided data for all items studied. See the section on survey
response.
available State Unemployment Insurance (UI) reports
for the 48 States covered by the survey and the Dis
trict of Columbia. The reference date of the available
UI reports was generally March 1982. The refinement
procedures included an effort to ensure that most sam
pling frame units corresponded to the definition of an
establishment developed for this survey. (A small num
ber of sampling frame units were not refined to corre
spond to the definition of an establishment because of
limited company reporting ability.)
frame by broad industry group and establishment size
group based on the total employment in the establish
ment. The industry groups consisted of the eight major
industry divisions, as defined by the Office of Manage
ment and Budget, which are covered by the survey and
shown in table A-l.
The establishment size groups are defined as follows:
All industries...........................................................
-
Em ploym ent size
group
3
4
5
6
7
8
9
10
Sample design
The sample for this survey was a subsample of the
1984 PATC sample to reduce the costs and resources
required for data collection. The sample of 1,499 estab
lishments2 was selected by first stratifying the sampling
64
........................................................
......................................................................
......................................................................
......................................................................
.............................................................
....................................................................
....................................................................
Establishment
employment
50-99
100-249
250-499
500-999
1,000 - 2,499
2 , 500- 4,999
5 ,000 - 9,999
10,000 and over
The sample size was allocated to each stratum (de
fined by industry and size) approximately proportional
to the total employment of all sampling frame estab
lishments in the stratum. Thus, a stratum which con
tained 1 percent of the total employment within the
scope of the survey received approximately 1 percent
of the total sample. The result of this allocation proce
dure is that each stratum will have a sampling fraction
(the ratio of the number of units in the sample to the
number in the sampling frame) which is proportionate
to the average measure of size of the units in the stratum.
A random sample was selected within each stratum
using a probability technique to maximize the probabil
ity of retaining establishments which were selected in
the 1983 survey.3This method of selection reduced col
lection costs by decreasing the number of new estab
lishments in the sample.
since the guarantee of insurability at retirement is con
sidered a benefit.
Most of the tables in this bulletin show the percent
of workers covered by individual benefit plans or plan
provisions. Percentages are calculated in three ways.
One technique, followed in tables 1-5, 7, and 10-13,
shows the number of covered workers as a percent of
all workers within the scope of the survey. It is de
signed to show the incidence of the individual employee
benefit.
A second approach is followed in tables 6, 9, 16, 1820, 32, 34-35, 38-39, 44-45, 47-48, 51, and 53-65, which
show the number of workers covered by specific fea
tures in a benefit area as a percent of all employees who
participate in that general benefit area. These tables an
swer questions concerning the typical coverage pro
vided to persons with a given insurance benefit or a
private pension plan; for example, what percent of all
employees with health insurance receive dental
coverage?
The third approach provides a close look at an im
portant feature (tables 17, 21-31, 33, 36-37, 40-43, and
49); for example, what percent of all employees with
dental coverage in their health insurance are covered
for orthodontic work? Tables 50 and 52 combine the
second and third types above, indicating in the first row
of data the percent of persons in the benefit area who
have a particular coverage, while the remainder of the
table is based on all employees with that coverage.
This multilevel approach has the advantage of clearly
pointing out typical benefit plan characteristics after the
prevalence of the benefit has been established. Any of
the second or third types of tables, if desired, can be
converted to the first type by multiplying each data cell
by the appropriate factors. For example, to calculate
the percent of all employees with orthodontic cover
age, multiply the percent of those with dental plans that
cover orthodontia (table 26) by the percent of health
insurance participants with dental coverage (table 20),
and multiply that product by the percent of all employ
ees who have health insurance coverage (table 1).
Tables 8, 14-15, and 46 are distinct from the first
three approaches since they display average benefit val
ues rather than percentages of workers. These tables
present the averages for all covered employees; calcu
lations exclude workers without the benefit from the
base.
Data collection
Data for the survey were collected by visits of Bu
reau field representatives to the sampled establishments.
To reduce the reporting burden, respondents were asked
to provide documents describing their private pension
plans and plans covering the four insured benefit areas
within the scope of the survey. These were analyzed
by BLS staff in Washington to obtain the required data
on plan provisions. Data on paid leave and other paid
time off generally were obtained directly from the em
ployers at the time of the visit.
Data were collected during the months of January
through July, reflecting an average reference period of
March 1984. Respondents were asked for information
as of the time of the data collection visit.
Data tabulation
The tables presented in this bulletin show the percent
of employees that were covered by paid leave plans,
participated in insurance or pension plans, or were eli
gible for other benefits. Except in table 66, counts of
workers covered by benefit plans included those who
had not met possible minimum length-of-service require
ments at the time of the survey. Workers were counted
as participants in employee benefit plans that require
the employee to pay part of the cost only if they elected
the plan and paid their share. Plans for which the em
ployee paid the full premium were outside the scope of
the survey, even if the employer paid administrative
costs. When tabulating the effect of retirement on life
insurance coverage, however, cases where the retiree
must pay the full cost of the insurance were counted
Survey response
Each of the 36 combinations of occupational groups
and work schedule or benefit areas (e.g., health insur
ance for production employees) was treated as an indi
vidual survey and separate estimates developed for each.
This treatment facilitated the use of partially completed
establishment reports in the survey. Therefore, the ac
tual number of responses for the survey varies for each
of the 36 combinations.
2The number o f sample units selected in this survey is, at present,
largely determined by resources and operational constraints and may
be adjusted up or down in future surveys.
3This method modifies the method introduced by Nathan Keytitz
in “Sampling with Probabilities Proportional to Size: Adjusting for
Changes in the Probabilities,” Journal o f the American Statistical As
sociation, 1951, No. 46, pp. 105-9.
65
The basic form of the estimator, after modification to
account for the weight adjustment factor, fjt developed
during the adjustment for nonresponse, was:
The following summary is a composite picture of the
establishment responses to the survey:
Number o f establishments:
In sa m p le.............................................
Out o f business and out o f scope .
Refusing to r esp o n d ..........................
Nonresponse other than refusal----Responding fully or partially...........
nl
Y = I
i= l
1,499
41
121
11
1,326
where nj = number of responding units
fj = weight adjustment factor for the ith unit.
There were two procedures used to adjust for miss
ing data from partial schedules and total refusals. First,
imputations for the number of plan participants were
made for cases where this number was not reported (2
percent of all participants). Each of these values was
imputed by randomly selecting a similar plan from an
other establishment in a similar industry and region.
The participation rate from this plan was then used to
approximate the number of participants for the plan
which was missing a participation value but was other
wise usable.
For other forms of missing data (or nonresponse), an
adjustment was made using a weight adjustment tech
nique based on sample unit employment. Under such a
technique, a model is assumed in which the mean value
of the nonrespondents is equal to the mean value of the
respondents at some detailed “cell” level. These cells
are defined in a manner that groups establishments to
gether which are homogeneous with respect to the
characteristics of interest. In most cases, these cells are
the same as those used for sample selection. The spe
cific weight adjustments used in this survey were cal
culated in four stages for each occupational group and
benefit area combination. This allowed a maximum
amount of data from partially completed establishment
reports to be incorporated into survey estimates. For
example, data on the number of occupational group
employees in an establishment or participants in a plan,
or information on the existence of a plan, could be used
even if the plan provisions could not be obtained.
The estimation procedure was then the process of
estimating the appropriate employment or establishment
totals needed for each estimate and subsequently calculating
the proportion, mean, or percentage which was desired.
Reliability of estimates
The statistics in this bulletin are estimates derived
from a sample survey. There are two types of errors
possible in estimates based on a sample survey—sam
pling and nonsampling. The “accuracy” of a survey re
sult is determined by the joint effects of sampling and
nonsampling errors.
Sampling errors occur because observations are made
from only a sample, not the entire population. Since
this survey was based on a probability sample, estimates
of sampling error for the survey estimates can be pro
duced directly from the survey data. Sampling errors
for a limited number of the estimates published in this
bulletin are available in the detailed description of sur
vey methodology and reliability noted below. In addi
tion, the Bureau recently developed measures of sam
pling errors for many estimates produced from the 1982
and 1983 employee benefits surveys, as well as for
changes in estimates between the two surveys. The re
sults of the work are available upon request.
Nonsampling errors can be attributed to many
sources: Inability to obtain information about all cases
in the sample; definitional difficulties; differences in the
interpretation of questions; inability or unwillingness to
provide correct information on the part of respondents;
mistakes in recording or coding the data obtained; and
other errors of collection, response, processing, cover
age, and estimation for missing data. Through the use
of computer edits of the data and professional review
of both individual and summarized data, efforts were
made to reduce the nonsampling errors in recording,
coding, and processing the data. The nonresponse ad
justment procedures are also a potential source of sur
vey nonsampling error. To the extent that the charac
teristics of the nonrespondents are not the same as those
of the respondents, nonsampling error is introduced in
the estimates. The magnitude of these and other non
sampling errors is currently undetermined.
A more detailed description of survey methodology
and reliability may be obtained from the Office of Wages
and Industrial Relations, Bureau of Labor Statistics,
U.S. Department of Labor.
Survey estimation methods
The survey design used an unbiased estimator (the
Horvitz-Thompson) which assigns the inverse of each
sample unit’s probability of selection as a weight to the
unit’s data. The estimator was modified to account for
a weight adjustment factor developed during the ad
justment for nonresponse. The general form of the es
timator for a population total was:
n
Y = S
i= 1
fi YS
------P.
Y
—
Pi
where n - sample size
Yj= value for the characteristics of the ith unit
Pj= the probability of including the i,h unit in
the sample
66
Appendix B: Availability of
the Survey’s Data Base
tape are scrambled (and other identifying information
is removed) to protect the confidentiality of respond
ing establishments.
Data users also can purchase the control file, which
contains establishment information required to produce
estimates from the plan data. Control file records in
clude establishment sample weights and size codes; geo
graphic, industrial, and employee group classification
codes; and the number of workers in the employee
group. The control file also lists all benefit plans offered
in each establishment, with the number of plan partici
pants in each employee group. A plan is listed on more
than one control file record if it covers employees in
more than one establishment. Although plan identifica
tion numbers on the control file are scrambled, the same
scrambled numbers appear on the data file so they can
be matched to make estimates. Because establishment
schedule numbers on the control file are scrambled dif
ferently for each employee group, it will not be possi
ble to link together plans offered to different employee
groups within an establishment.
Benefit provisions obtained from plan documents are
recorded in coding manuals for insurance and pension
plans and then entered on the plan data file. A set of
coding manuals and instructions for completing them
are supplied to tape purchasers for interpretation of data
on the file. Paid time-off provisions are reported on
collection forms which are also provided to tape
purchasers.
The analysis of insurance and pension plans is ex
tremely detailed. The following list of health insurance
plan provisions included in the data base gives an indi
cation of the breadth and depth of the information avail
able on the magnetic tapes. Other insurance and pen
sion analysis is similarly detailed.
The tables published in this bulletin present the ma
jor findings of the employee benefits survey; results of
additional review of various benefit plan provisions ap
pear in the Monthly Labor Review. However, these cover
only a portion of the employee benefits information
collected. Persons interested in all provisions of a par
ticular benefit studied during the annual survey can
purchase a set of magnetic tapes containing the survey’s
data base through the Office of Wages and Industrial
Relations, Bureau of Labor Statistics, Washington,
D.C. 20212. The charge for furnishing the data is
limited to the cost of producing the tapes and preparing
supporting documentation.
For major benefit items, the BLS survey obtained
plan provisions and employee participation data for each
of three employee groups (professional-administrative,
technical-clerical, and production workers). Informa
tion on employer costs was not collected. The magnetic
tapes, which consist of a control file and plan data files
for each benefit area, may be used to derive national
estimates, similar to those published in this bulletin, for
other items on the data base. For some data items not
presented in this bulletin, however, the datafile is insuf
ficient to produce reliable national estimates, because
either information on the provisions frequently were
not available or the number of employees with the pro
vision was very small. Moreover, the tapes cannot yield
reliable estimates for individual industries, geographic
regions, or establishment size classes. Full documenta
tion accompanies the tapes, including examples of esti
mating formulas. Although Bureau staff will respond
to any questions concerning the content of the tapes,
technical assistance in developing estimates cannot be
provided to purchasers due to the heavy workload as
sociated with the survey program.
Data users can purchase tapes with details of plans
for one benefit area or all, i.e., health, life, sickness and
accident, and long-term disability insurance; private re
tirement pensions; and paid time-off provisions—lunch
time, rest periods, holidays, personal leave, vacations,
and sick leave. (Table 66 presents all of the information
that was collected on the other benefits surveyed.) The
plan data file contains provisions for each plan which
was reported and for which usable information was
available. However, plan identification numbers on the
Health insurance data base
Plan participation requirements
When plan participation begins
Waiting period by type of benefit
Maximum age for participation
Employee contribution for employee and
dependents’ benefits
Percent paid or monthly contribution
67
Selected DXL procedure maximums
Section A
Funding media for major categories of health care
Hospital benefits
Surgical benefits
Medical benefits
Major medical benefits
Dental benefits
Outpatient care and special accident benefit
Outpatient care coverage
Comparison of inpatient and outpatient coverage
Separate limitations
Outpatient charges covered under major medical
Accidental bodily injury—special benefit
Administrative details
Pre-existing condition
Minimum age of dependent children
Waiting period in case of infant illness
Maximum age of dependent children
Retiree eligibility
Eligibility of retirees eligible for Medicare
Coverage of dependents of retirees eligible for
Medicare
Medicare contribution for retiree
Medicare contribution for dependents of retirees
eligible for Medicare
Disabled or retired employees’ benefit coverage
Coverage of retirees’ dependents not eligible for
Medicare
Survivors’ benefit coverage
Prescription drug and private duty nursing coverage
Prescription drug
Private duty nursing
Mental health care benefits
Mental health care coverage
Hospital confinements due to mental disorders
Hospital confinements due to mental disorders
covered the same as other illnesses
Selected coverages for mental health care
Coverage in special hospital
Dental care benefits
Dental care coverage
Coverage of employees
Coverage of spouses
Coverage of dependent children
Prophylaxis and routine exams
Fillings
Surgery - dental
Inlays
Crowns
Periodontal care
X-rays
Orthodontia
Incentive schedule
Deductible
Maximum coverage
Copayment
Section B
Hospital and extended care coverage
Hospital room and board coverage
Hospital intensive care
Hospital miscellaneous coverage
Extended care coverage
Extended care in licensed extended care facility
Basis of extended care coverage
Extended care by home health care
Surgical and medical benefits
Surgical care coverage
Surgical schedule
Conversion factor for relative value schedule
Selected surgical procedure maximums
Maximum for multiple procedure
In-hospital medical coverage
Medical office coverage
Vision care benefits
Vision care coverage
Eyeglasses
Schedule for eyeglasses
Eye exams
Contact lenses
Orthoptics
Maternity care benefit
Who is covered
Obstetrical schedule
Voluntary abortion coverage
Miscarriages or therapeutic abortion coverage
Maximum for male sterilization
Maximum for female sterilization
Separate deductibles
Other medical benefits
Second surgical opinion
Alcoholism treatment
Drug abuse treatment
Hearing care
Hospice care
Physical examinations
Section C
Deductible, coinsurance, and/or maximum benefit
provisions
Covered expenses
Deductible expenses
Diagnostic X-ray and laboratory testing (DXL)
benefit
DXL coverage
Limitations on DXL coverage
DXL schedule
68
Coinsurance by the amount of incurred expenses
Coinsurance by the number of days/visits
Maximum dollar per day/visit by number of
days/visits
Maximum number of days/visits for specified
expenses
tion B that are subject to deductible, coinsurance,
and/or maximum benefit provisions. This section con
sists of 15 sets of seven questions. One set of questions
is completed for each covered expense, or group of
covered expenses, with identical deductible, coinsur
ance, and maximum benefit provisions. In the first ques
tion of each set, a group of expenses with common pro
visions is identified. The remaining six questions give
the benefit provisions for the group. Additional sets of
questions are completed until the benefit provisions of
all covered expenses have been described.
Maximum dollar payable for specified covered
expenses
Section C questions are designed to identify and de
scribe the benefit provisions of covered expenses in sec
*U.S. GOVERNMENT PRINTING OFFICE:1985-461-566:36474
69
Bureau of Labor Statistics
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Phone: (617) 223-6761
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Phone: (214) 767-6971
Regions VII and VIII
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