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D ac9 • ! n n MRY 3 3 I f S ' S' AUG 1 1961 .UGE OfeKWA Life Insurance and Accidental Death and Dismemberment Benefits Early Summer 1960 Bulletin No. 1296 UNITED STATES DEPARTMENT OF LABOR Arthur J. Goldberg, Secretary BUREAU O F LABOR STATISTICS E w a n C l a g u e , C o m m is sio n e r 'vjjrcs Oj, HEALTH AND INSURANCE PLANS UNDER COLLECTIVE BARGAINING Life Insurance and Accidental Death and Dismemberment Benefits Early Summer 1960 Bulletin No. 1296 June 1961 UNITED STATES DEPARTMENT OF LABOR Arthur J. Goldberg, Secretary BUREAU O F LABOR STATISTICS Ewan Clague, Commissioner For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C. Price 25 cents Preface This study of the life insurance and acciden tal death and d ism em berm en t benefit features o f health and insurance plans under c o lle ctiv e bargaining, based on an analysis of 300 selected plans, is the last in a se r ie s of 5 Bureau o f L abor Statistics rep orts dealing sep arately with the various com ponents o f health and insurance plans. The fir s t rep ort d e scrib e d acciden t and sick n ess benefits (BLS B ull. 1250, issu ed June 1959); the secon d, h ospital benefits (BLS B ull. 1274, M arch I960); the third, s u r gica l and m ed ica l benefits (BLS Bull. 1280, N ovem ber I960); and the fourth, m a jor m ed ica l benefits (BLS B ull. 1293, May 1961). As a w hole, this s e r ie s brings up to date the B ureau 's e a rlie r A nalysis of Health and Insurance Plans Under C ollectiv e B a r gaining, Late 1955 (BLS B ull. 1221, N ovem ber 1957). E ach o f the 300 plans analyzed co v e re d at lea st 1,000 w o rk e rs . The selected plans, in total, provided benefit cov era g e to alm ost 5 m illion w o rk e rs, or about tw o-fifth s of the estim ated cov era g e o f all health and insurance plans under c o l le ctiv e bargaining. The p rov ision s o f these plans do not n e c e s s a rily r e fle c t the p rov ision s of sm a ller plans under co lle ctiv e bargaining or those in nonunion situations. This study was conducted and the bulletin was p r e pared in the B ureau 's D ivision of Wages and Industrial R e lations by Dorothy R . Kittner, with the assista n ce o f Stanley S. Sacks and M aurice L . Cunningham, under the su p ervision o f Donald M . Landay. Contents Page Introduction _____________________________________________________________________ Scope of study --------------- -------------------------------------------- -----P r e v a l e n c e --------------------------------------------------------------------Financing ----------------- _----------------------------------------------------Eligibility r e q u i r e m e n t s -------------------------------------------------------Life insurance for active w o r k e r s --------------------------------------------Basis for determ i n i n g a m o u n t ----------------------------------------------A m o u n t of insurance provided u n d e r flat-benefit plans -------------------A m o u n t of insurance provided b y graduated-accordingto-earnings plans ---------------------------------------------------------A m o u n t of insurance p r o vided b y graduated-by-lengthof-service p l a n s ____________________________________________________________ Variation in a m o u n t b a s e d on s e x ___________________________________________ Reduction in benefits during active e m p l o y m e n t ___________________ ________ Continuance of c o v e r a g e during layoff ------------ -------------------------Life insurance for retired w o r k e r s -------------------------------------------Life insurance for active w o r k e r s 1 dependents -------------------------------P e r m a n e n t a n d total disability provisions _____________________________________ Accidental death a n d d i s m e m b e r m e n t insurance ------------------------------ 1 2 2 3 4 5 5 5 6 6 7 7 8 8 9 10 10 Tables: 1. Health and insurance plans studied in m a n u f a c t u r i n g a n d n o n m a n u f a c t u r i n g industries b y n u m b e r of w o r k e r s c o v e r e d an d type of bargaining unit -------------------------------------------2. Health a n d insurance plans studied b y industry a n d groups eligible for life insurance a n d accidental death a n d d i s m e m b e r m e n t benefits _____________________________________________ 3. Classification of plans providing life insurance and accidental death and d i s m e m b e r m e n t benefits b y g r o u p s eligible ____________________________________________________ 4. M e t h o d of financing life insurance benefit b y g roups eligible a n d type of bargaining unit ____________________________________________ 5. M e t h o d of financing accidental death and d i s m e m b e r m e n t benefits b y g roups eligible a n d type of bargaining u n i t _________________________________________________________ 6 . Relationship of m e t h o d of financing life insurance a n d accidental death a n d d i s m e m b e r m e n t benefits for active a nd retired w o r k e r s _______________________________________ 7. Eligibility r e q u i r e m e n t s for life insurance a n d accidental death a n d d i s m e m b e r m e n t benefits _____________________ 8 . Plans reducing or denying life insurance or accidental death a n d d i s m e m b e r m e n t benefits for active w o r k e r s hired after a specified a ge ____________________________________________ 9. Basis of d e t ermining total a m o u n t of life insurance for active w o r k e r s b y type of bargaining unit ____________________________ 1 0 . A m o u n t of life insurance provided active w o r k e r s under plans providing a flat a m o u n t of insurance b y m e t h o d of fin a n c i n g ---------------------------------------------------- v 12 13 14 15 16 16 17 17 18 18 Contents — Continued Page Tables:— 11. 12. 13. 14. 15. 16. 17. 18. 19. Continued A m o u n t of life i nsurance provided active w o r k e r s earning $4, 000 a n d $5, 000 yearly under plans graduating the a m o u n t of insurance according to earnings alone b y m e t h o d of financing ____________________ „______________________________ Plans extending life insurance benefit to retired w o r k e r s b y basis of d etermining total a m o u n t of insurance provided active w o r k e r s ____________________________________ A m o u n t s of life insurance provided w o r k e r s at age 65 a n d 70 w h o retired at age 65 a n d e a r n e d $4, 000 a n d $5, 000 yearly before retirement _____________________________________________________ Disposition of life insurance benefit un d e r p e r m a n e n t and total disability p r o v i s i o n s _________________________________________ Eligibility r e q u i r e m e n t s for p e r m a n e n t a n d total disability life insurance b e n efit________________________________________ Basis for d etermining total a m o u n t of accidental death and d i s m e m b e r m e n t benefit ________________ Relationship of accidental death benefit to a m o u n t of life insurance provided w o r k e r s earning $4, 000 a n d $5, 000 yearly _________________________________________________________ A m o u n t of accidental death benefit provided active w o r k e r s b y plans providing a flat a m o u n t ____________________________ A m o u n t of accidental death benefit provided w o r k e r s earning $4, 000 a n d $5, 000 yearly under plans graduating the a m o u n t >of insurance according to earnings a l o n e ----------------- 19 20 20 21 21 22 22 23 23 H e a lfh a n d In s u r a n c e P la n s U n d e r C o lle c t iv e B a r g a in in g Life Insurance and Accidental Death and Dismemberment Benefits, Early Summer 1960 In tr o d u c tio n L ife in s u r a n c e in c lu d e d in c o l l e c t i v e l y b a r g a in e d h e a lth and in s u r a n c e p r o g r a m s in v a r ia b ly c o v e r s d ea th a r is in g f r o m any c a u s e at any t im e , o n the jo b o r o ff. On th e o th e r hand, s o m e p la n s lim it a c c id e n t a l d ea th and d i s m e m b e r m e n t b e n e fits to o f f - t h e - j o b a c c id e n t s , p r e s u m a b ly b e c a u s e p r o t e c t io n f o r o n - t h e - j o b a c c id e n t s is p r o v id e d by w o r k m e n ’ s c o m p e n s a t io n . W h e r e p a y a b le , b oth l if e in s u r a n c e and a c c id e n t a l d ea th and d is m e m b e r m e n t b e n e fits a r e p r o v id e d in a d d itio n to w o r k m e n 's c o m p e n s a t io n b e n e fit s . S im ila r ly , b oth b e n e fits a r e p r o v id e d in a d d itio n to any d e a th b e n e fits that m a y be p a y a b le u n d e r a p e n s io n p la n . 1 L ife in s u r a n c e and a c c id e n t a l d ea th and d is m e m b e r m e n t b e n e fits a r e a lm o s t a lw a y s p r o v id e d th ro u g h g r o u p t e r m in s u r a n c e p o l i c i e s p u r c h a s e d f r o m c o m m e r c i a l in s u r a n c e c a r r i e r s . In a d d itio n to , o r o c c a s i o n a l ly in lie u o f, g r o u p t e r m in s u r a n c e , s o m e p la n s h a v e g r o u p in s u r a n c e p o l i c i e s w ith p a id -u p o r c a s h s u r r e n d e r v a lu e s . U n lik e o t h e r h e a lth and in s u r a n c e b e n e fits , th e l if e in s u r a n c e c o v e r a g e is a lw a y s co n tin u e d f o r at le a s t 30 d a y s a ft e r c e s s a t io n o f a c t iv e e m p lo y m e n t and d u r in g th is p e r io d , the w o r k e r m a y c o n v e r t h is c o v e r a g e to an in d iv id u a l p o li c y w ith ou t f i r s t b e in g r e q u ir e d to ta k e a p h y s ic a l e x a m in a tio n . 2 A fe w p la n s p r o v id e " d e a th " o r " f u n e r a l " b e n e fit s , s e l f - i n s u r e d by th e e m p lo y e r o r by a fund to w h ic h he c o n tr ib u te d ; f o r th is stu dy, it w a s c o n s i d e r e d that th e s e p la n s p r o v id e d a l if e in s u r a n c e b e n e fit u n le s s s u ch a. b e n e fit w a s in c id e n ta l to a n o th e r m a jo r p u r p o s e , e . g. , to p r o v id e p e n s io n s . A lth ou g h e m p l o y e r - s p o n s o r e d g r o u p lif e in s u r a n c e c o v e r a g e w a s in it ia lly lim it e d to a c t iv e w o r k e r s , m a n y p la n s h a v e b e e n e x te n d e d to c o v e r r e t ir e d w o r k e r s and s o m e to d e p e n d e n ts o f a c t iv e w o r k e r s . W ith fe w e x c e p t io n s , o n ly the a c tiv e w o r k e r r e c e i v e s a c c id e n t a l d e a th and d is m e m b e r m e n t b e n e fit s . T h is stu dy d e s c r i b e s the c h a r a c t e r i s t i c s o f l if e in s u r a n c e and a c c id e n t a l d e a th and d is m e m b e r m e n t b e n e fits u n d e r 300 s e le c t e d c o l l e c t i v e l y b a r g a in e d h e a lth and in s u r a n c e p r o g r a m s in e f f e c t d u r in g the s u m m e r o f I9 6 0 . The e lig i b ility r e q u ir e m e n t s , fin a n c in g m e th o d s , ty p e s and a m o u n ts o f b e n e fits , and the p e r m a n e n t and t o ta l d is a b ilit y p r o v i s io n s o f the l if e in s u r a n c e p o l i c i e s w e r e a n a ly z e d . In a d d itio n to th e b e n e fits p r o v id e d u n d e r b a s ic in s u r a n c e p r o g r a m s that c o v e r e d a ll w o r k e r s in th e b a r g a in in g u n it, s o m e p la n s m a d e a v a ila b le a d d itio n a l o r s u p p le m e n ta r y lif e in s u r a n c e and a c c id e n t a l d e a th and d is m e m b e r m e n t b e n e fit s . 1 P e n s io n P la n s U n d er C o ll e c t i v e B a r g a in in g : D ea th B e n e fits and S u r v iv o r O p tio n s , D e c e m b e r I9 6 0 ( fo r t h c o m in g B L S B u l l .) . 2 T h is p r o v i s io n r e f l e c t s th e in flu e n c e o f th e N ew Y o r k State in s u r a n c e la w w h ic h r e q u ir e s in s u r a n c e c o m p a n ie s d o in g b u s in e s s in th at S tate to in c lu d e a 3 0 -d a y c o n v e r s io n p e r i o d in a ll t h e ir g r o u p t e r m in s u r a n c e c o n t r a c t s , r e g a r d l e s s o f th e S tate in w h ic h th ey a r e w r itt e n . 2 W o r k e r s d e s i r i n g the a d d ed c o v e r a g e h ad to p a y a ll o r p a r t o f the c o s t o f s u ch in c r e a s e d c o v e r a g e . T h e p r o v i s io n s d e s c r i b e d in th is b u lle t in , u n le s s o t h e r w is e in d ic a t e d , r e la t e to to ta l b e n e fits a v a ila b le to a c t iv e and r e t i r e d w o r k e r s (i. e . , b a s i c in s u r a n c e b e n e fits p lu s s u p p le m e n ta r y in s u r a n c e b e n e f i t s , w h e r e p r o v id e d ). B e c a u s e o f the in c lu s io n o f s u p p le m e n ta r y c o v e r a g e , data p r e s e n t e d in th is s tu d y , e x c e p t w h e r e n o te d , a r e n ot c o m p a r a b le w ith th o s e sh o w n in the B u re a u * s p r e v io u s stu d y . 3 S c o p e o f Study T h e 300 h e a lth and in s u r a n c e p la n s s tu d ie d f o r l if e in s u r a n c e and a c c i d e n ta l d ea th b e n e fit p r o v i s io n s w e r e s e le c t e d to p r o v id e a b r o a d l y r e p r e s e n t a t iv e v ie w o f the typ e o f p r o t e c t io n p r o v id e d b y m a jo r p la n s u n d er c o l l e c t i v e b a r g a in in g , i . e . , th o s e c o v e r i n g 1 ,0 0 0 o r m o r e w o r k e r s . 4 In s e le c t in g the s a m p le , c o n s i d e r a t i o n w a s g iv e n to in d u s tr y , g e o g r a p h ic lo c a t io n , typ e o f b a r g a in in g unit, and s iz e o f p la n a s m e a s u r e d b y a c t iv e w o r k e r c o v e r a g e . 5 T h e 300 s e le c t e d p la n s , ra n g in g in c o v e r a g e f r o m 1,00 0 to a h a lf m i ll io n w o r k e r s , p r o v id e d h e a lth and in s u r a n c e p r o t e c t io n to a to ta l o f 4 . 9 m i ll io n w o r k e r s (ta b le 1), o r a bou t 4 0 p e r c e n t o f the e s t im a t e d to ta l n u m b e r o f w o r k e r s u n d er a ll h e a lth and in s u r a n c e p la n s u n d er c o l l e c t i v e b a r g a in in g . 6 A lm o s t 3 out o f 4 p la n s (2 1 9 ), c o v e r i n g tw o th ir d s o f the w o r k e r s , w e r e in m a n u fa c tu r in g in d u s t r ie s (ta b le 2 ). N e a r ly a th ir d o f the p la n s (9 5 ), c o v e r i n g m o r e than 40 p e r c e n t o f the w o r k e r s , w e r e n e g o tia t e d b y m u lt ie m p lo y e r g r o u p s . P r e v a le n c e L ife in s u r a n c e w a s p r o v id e d a c t iv e w o r k e r s b y 295 o f the 300 p la n s s tu d ie d (ta b le 2). T h is b e n e fit w a s e x te n d e d to r e t ir e d w o r k e r s 7 b y a lm o s t 2 out o f 3 o f th e s e p la n s (1 8 9) r e p r e s e n t in g the s a m e p r o p o r t i o n o f the w o r k e r s in the s a m p le . A m u c h l a r g e r p r o p o r t i o n o f s in g le e m p lo y e r p la n s (a b o u t 3 out o f 4) than o f m u lt ie m p lo y e r p la n s (3 out o f 10) e x te n d e d b e n e fit s to r e t i r e d w orkers. O n ly n in e p la n s , c o v e r i n g 5 p e r c e n t o f the w o r k e r s in the s a m p le , in s u r e d d e p e n d e n ts o f a c t iv e w o r k e r s ; o n ly on e o f th e s e n in e p la n s a ls o c o v e r e d r e t i r e d w o r k e r s (ta b le 3). 3 A n a ly s is o f H e a lth and In s u r a n c e P la n s U n d er C o ll e c t i v e B a r g a in i n g , 1955 (B L S B u ll. 1 22 1, N o v e m b e r 1957). T h e s a m e s a m p le o f p la n s w a s u s e d f o r the s tu d ie s o f a c c id e n t and s ic k n e s s b e n e fits (B L S B u ll. 1 2 5 0 ), h o s p it a l b e n e fit s (B L S B u ll. 1 2 7 4 ), s u r g i c a l and m e d ic a l b e n e fits (B L S B u ll. 1 2 8 0 ), and m a jo r m e d ic a l b e n e fit s (B L S B u ll. 1 2 9 3 ), s u m m a r iz e d in th e M o n th ly L a b o r R e v ie w i s s u e s o f June 1959 (p p . 6 4 6 -6 5 2 ), F e b r u a r y I9 6 0 (pp . 1 5 0 -1 6 0 ), June I9 60 (p p . 5 9 8 -6 0 4 ), J u ly I9 6 0 (p p . 7 1 0 -7 1 7 ), and A p r il 1961 (pp . 3 7 1 -3 7 9 ), r e s p e c t i v e l y . 5 T h e s a m p le c o m p r i s e d 271 p la n s a ls o s tu d ie d in the B u re a u * s 1955 r e p o r t and 29 r e p la c e m e n t s that w e r e r e q u ir e d b e c a u s e o f a d e c r e a s e in p la n c o v e r a g e to fe w e r than 1 ,0 0 0 w o r k e r s , c o m p a n y m e r g e r o r sh u td o w n , o r la c k o f s u ffic ie n t c u r r e n t d a ta . 6 A ll c o v e r a g e d ata r e p o r t e d in th is stu d y r e la t e to the n u m b e r o f a c t iv e w o r k e r s (m e n and w o m e n ) c o v e r e d b y the p la n s . N o a tte m p t w a s m a d e to d e t e r m in e the n u m b e r o f w o m e n w o r k e r s , d e p e n d e n ts , o r r e t i r e d w o r k e r s c o v e r e d b y the p la n s s tu d ie d . 7 T h e t e r m " r e t i r e d w o r k e r s , " as u s e d in th is b u lle t in , d o e s n ot n e c e s s a r i l y c o v e r a ll p e n s i o n e r s . W o r k e r s r e t i r e d b e f o r e the e x t e n s io n o f b e n e fit s to p e n s io n e r s a r e s o m e t im e s n ot c o v e r e d and r e t i r e d w o r k e r s w h o d id n ot m e e t p r e s c r i b e d e l ig i b i l it y r e q u ir e m e n t s a r e e x c lu d e d . L a te 3 A c c id e n t a l d ea th and d is m e m b e r m e n t b e n e fit s w e r e in c lu d e d in s o m e w h a t m o r e than h a lf o f the 300 p la n s s tu d ie d (1 6 2 ), c o v e r i n g l e s s than h a lf o f the w o r k e r s (47 p e r c e n t ) (ta b le 2). In c o n t r a s t w ith the e x t e n s io n o f lif e in s u r a n c e , l e s s than 5 p e r c e n t o f th e s e p la n s p r o v id e d b e n e fit s f o r r e t i r e d w o r k e r s , and no p la n had s u ch c o v e r a g e f o r d e p e n d e n ts . F r o m la te 1955 to e a r l y s u m m e r I9 6 0 , the p r o p o r t io n o f p la n s s tu d ie d that p r o v id e d l if e in s u r a n c e b e n e fit s to a c t iv e w o r k e r s and to t h e ir d e p e n d e n ts h as r e m a in e d a b ou t the s a m e . In c o n t r a s t , c o v e r a g e o f r e t i r e d w o r k e r s i n c r e a s e d f r o m 49 p e r c e n t o f the p la n s in 1955 to 63 p e r c e n t in I9 6 0 . D u rin g the s a m e p e r i o d , th e r e w a s lit t le ch a n g e in a c c id e n t a l d e a th and d is m e m b e r m e n t b e n e fit c o v e r a g e o f b o th a c t iv e and r e t ir e d w o r k e r s . S u p p le m e n ta r y l if e in s u r a n c e c o v e r a g e w a s a v a ila b le to a c t iv e w o r k e r s u n d e r 36 o f the 204 s in g le e m p lo y e r p la n s that p r o v id e d b a s ic c o v e r a g e ; no m u lt i e m p lo y e r p la n s p r o v id e d s u ch a d d itio n a l b e n e f it s . O n ly 15 o f the 189 p la n s that e x te n d e d b a s ic c o v e r a g e to r e t ir e d w o r k e r s a ls o e x te n d e d s u p p le m e n ta r y c o v e r a g e to th em ; o n ly 3 p la n s p r o v id e d s u p p le m e n ta r y a c c id e n t a l d ea th and d is m e m b e r m e n t b e n e fits . F in a n c in g 8 T h e e n tir e c o s t o f l if e in s u r a n c e f o r the a c t iv e w o r k e r w a s p a id b y the e m p lo y e r u n d e r a lm o s t 3 out o f 5 (16 8) o f the 295 p la n s (ta b le 4 ). U n d e r the r e m a in in g p la n s (1 2 7 ), the c o s t o f l if e in s u r a n c e c o v e r a g e w a s s h a r e d b y the e m p lo y e r and w o r k e r . 9 U n d er m o s t p la n s (145) e m p lo y e r s p a id the e n tir e c o s t o f r e t ir e d w o r k e r s * l if e in s u r a n c e c o v e r a g e . C o n s id e r in g o n ly the 189 p la n s that p r o v id e d l if e i n s u r a n c e f o r b o th g r o u p s , the e m p lo y e r fin a n c e d the e n tir e c o s t o f b e n e fits u n d e r t h r e e - f o u r t h s o f the p la n s f o r r e t i r e e s , c o m p a r e d w ith l e s s than o n e - h a lf o f the p la n s f o r a c t iv e w o r k e r s (ta b le 6 ). T h ir ty p la n s (a b o u t o n e ou t o f six ) r e q u ir e d the r e t i r e d w o r k e r to p a y p a r t o f the c o s t o f h is in s u r a n c e c o v e r a g e . 10 D ep en d en ts* l if e in s u r a n c e c o v e r a g e w a s e m p lo y e r fin a n c e d u n d e r e ig h t o f the n ine p la n s p r o v id in g s u ch c o v e r a g e ; it w a s jo in t ly fin a n c e d u n d e r the r e m a in in g o n e . The a c c id e n t a l d ea th and d is m e m b e r m e n t b e n e fit w a s p a id f o r b y the e m p lo y e r u n d e r 7 out o f 10 o f the 162 p la n s w ith this benefit (table 5 ). U n d e r the 8 If the w o r k e r c o n tr ib u te d to w a r d the c o s t o f the h e a lth and in s u r a n c e p r o g r a m a s a w h o le (w ith the e m p lo y e r p a y in g the r e m a in in g c o s t ) , the b e n e fit w a s c l a s s i f i e d as jo in t ly fin a n c e d . If b o th b a s ic and s u p p le m e n ta r y in s u r a n c e w e r e a v a ila b le to the w o r k e r (a c t iv e o r r e t ir e d ) , the b e n e fit w a s c l a s s i f i e d a c c o r d in g to h ow the to ta l a m ou n t o f in s u r a n c e c o v e r a g e w a s fin a n c e d ; f o r e x a m p le , i f the b a s ic c o v e r a g e w a s p a id f o r s o l e l y b y the e m p lo y e r and the s u p p le m e n ta r y c o v e r a g e b y the a c t iv e w o r k e r , the b e n e fit w a s c l a s s i f i e d a s ’ ’ e m p lo y e r and w o r k e r ” fin a n c e d . 9 F o u r o f th e s e p la n s p r o v id e d jo in t ly fin a n c e d b a s ic and s u p p le m e n ta r y in s u r a n c e ; 21 p la n s p r o v id e d e m p lo y e r fin a n c e d b a s ic in s u r a n c e and jo i n t ly fin a n c e d s u p p le m e n ta r y in s u r a n c e ; 7 p la n s , e m p lo y e r fin a n c e d b a s ic in s u r a n c e and w o r k e r fin a n c e d s u p p le m e n ta r y in s u r a n c e ; and 4 p la n s p r o v id e d jo i n t ly fin a n c e d b a s ic in s u r a n c e and w o r k e r fin a n c e d s u p p le m e n ta r y in s u r a n c e . 10 Th e e m p lo y e r p a id the fu ll c o s t o f the b a s ic in s u r a n c e e x te n d e d to r e t i r e d w o r k e r s u n d e r 6 o f th e s e 30 p la n s and the r e t i r e d w o r k e r s c o n tr ib u te d o n ly to w a r d the c o s t o f the s u p p le m e n ta r y in s u r a n c e e x te n d e d to h im (5 p la n s) o r p a id the fu ll c o s t o f the a d d itio n a l c o v e r a g e (1 p la n ); 1 p la n p r o v id e d jo i n t ly fin a n c e d b a s ic and s u p p le m e n ta r y in s u r a n c e . 4 r e m a in in g p la n s (4 9 ), the e m p lo y e r and th e w o r k e r s h a r e d th e c o s t . 11 The cost o f r e t ir e d w o r k e r s ' b e n e fits w a s p a id s o le l y by th e e m p lo y e r u n d e r t h r e e p la n s, and s h a r e d u n d e r f o u r p la n s . L ife in s u r a n c e c o v e r a g e f o r r e t ir e d w o r k e r s w a s p r o v id e d by 4 out o f 5 (10 2) o f th e 127 p la n s that p r o v id e d jo in t ly fin a n c e d b e n e fits f o r a c t iv e w o r k e r s . O n ly on e out o f tw o p la n s w ith e m p lo y e r fin a n c e d in s u r a n c e f o r a c t i v e w o r k e r s e x te n d e d c o v e r a g e to r e t i r e d e m p lo y e e s , o w in g c h i e f l y to the s m a ll p r o p o r t io n o f m u lt ie m p lo y e r p la n s that e x te n d e d b e n e fits to r e t i r e e s . H o w e v e r , u n d er 3 out o f 5 o f th e 102 p la n s w ith jo in t ly fin a n c e d b e n e fits f o r a c t iv e w o r k e r s , w o r k e r s ' c o n tr ib u tio n s c e a s e d im m e d ia t e ly u p on r e t ir e m e n t (ta b le 6 ). R e t ir e d w o r k e r s a ls o r e c e i v e d e m p lo y e r fin a n c e d b e n e fits f r o m a ll but 3 o f the 87 p la n s w ith s u ch b e n e fits f o r a c t iv e w o r k e r s . O n ly fo u r p la n s r e q u ir e d r e t ir e d w o r k e r s to a s s u m e the fu ll c o s t o f t h e ir c o v e r a g e . E lig ib ilit y R e q u ir e m e n ts 12 L ife in s u r a n c e and a c c id e n t a l d e a th and d is m e m b e r m e n t b e n e fits w e r e u s u a lly e f f e c t iv e a ft e r th e w o r k e r had c o m p le t e d a s h o r t p e r i o d o f e m p lo y m e n t (ta b le 7 ). A lm o s t t h r e e out o f fo u r p la n s m a d e l if e in s u r a n c e a v a ila b le by th e end o f 4 m o n th s o f e m p lo y m e n t, and w ith in that s*ame t im e p e r io d , a c c id e n t a l d ea th and d is m e m b e r m e n t b e n e fit p r o t e c t io n c o m m e n c e d u n d e r f o u r out o f f iv e p la n s . In p la n s p r o v id in g both b e n e fit s , h o w e v e r , th e e m p lo y m e n t p e r i o d r e q u ir e d f o r c o v e r a g e by e a c h b e n e fit w a s , w ith s ix e x c e p t io n s , th e s a m e . W h e r e h e a lth and in s u r a n c e p la n s e s t a b lis h e d d if fe r e n t e lig i b i l it y r u le s f o r t h e ir v a r io u s b e n e fits , w h ic h w a s n ot th e g e n e r a l p r a c t i c e , a lo n g e r e m p lo y m e n t p e r i o d w a s r e q u ir e d f o r l if e in s u r a n c e and a c c id e n t a l d ea th b e n e fits than f o r o th e r ty p e s o f p r o t e c t io n . 13 One out o f s e v e n p la n s e ith e r r e d u c e d l if e in s u r a n c e b e n e fits o r d e n ie d th e m to w o r k e r s h ir e d a ft e r th e y had r e a c h e d an a d v a n ce a g e — m o s t fr e q u e n tly a g e 65 (ta b le 8 ). T w e n t y -e ig h t p la n s r e d u c e d the b e n e fit and 13 p la n s d e n ie d th e m to s u ch w o r k e r s . T h e a c c id e n t a l d ea th and d is m e m b e r m e n t b e n e fit o f n e w ly h ir e d w o r k e r s c o v e r e d by 10 o f th e 162 p la n s w a s a ls o a ff e c t e d by a g e at h ir in g . S ix p r o v id e d a r e d u c e d b e n e fit to o l d e r w o r k e r s , and fo u r p la n s no b e n e fit. 11 One o f t h e s e p la n s p r o v id e d e m p lo y e r fin a n c e d b a s ic a c c id e n t a l d e a th and d is m e m b e r m e n t in s u r a n c e and jo in t ly fin a n c e d s u p p le m e n ta r y in s u r a n c e ; and tw o p la n s p r o v id e d jo in t ly fin a n c e d b a s ic a c c id e n t a l d e a th and d is m e m b e r m e n t i n s u r a n c e and w o r k e r fin a n c e d s u p p le m e n ta r y in s u r a n c e . 12 E lig ib ilit y r e q u ir e m e n t s , a s d is c u s s e d in th is s e c t io n , r e f e r o n ly t o the p e r i o d o f e m p lo y m e n t r e q u ir e d o f the w o r k e r b e f o r e he is e l i g i b l e to p a r t ic ip a t e in th e p la n . U n d er s o m e p la n s , in a d d itio n to s p e c if y in g an e m p lo y m e n t r e q u i r e m en t, a p e r i o d o f u n ion m e m b e r s h ip w a s a ls o r e q u ir e d . T h is p e r i o d r a r e l y e x c e e d e d the e m p lo y m e n t r e q u ir e m e n t . 13 T h e e l ig i b i l it y r e q u ir e m e n t s f o r o th e r b e n e fits in th e s a m e p la n s as a n a ly z e d in th is b u lle tin w i ll b e fou n d in the o th e r b u lle tin s in th is s e r i e s . For a c c id e n t and s ic k n e s s b e n e fit s , s e e B LS B u ll. 1250, ta b le 5, p . 5; f o r h o s p it a l b e n e fit s , B L S B u ll. 1274, ta b le 7, p. 10; and f o r s u r g i c a l and m e d ic a l b e n e fits , B L S B u ll. 1280, ta b le 9, p. 13. 5 L ife In s u ra n c e f o r A c t iv e W o r k e r s B a s is f o r D e t e r m in in g A m o u n t. — A u n ifo r m o r " f l a t " a m ou n t o f life in s u r a n c e w a s p r o v id e d b y o v e r h a lf o f the 295 p la n s (ta b le 9 ). U n d er the r e m a in in g 136 p la n s , the to ta l a m ou n t o f in s u r a n c e a v a ila b le w as d e p e n d e n t on e a r n in g s , s e r v i c e , o r o th e r c r i t e r i a a p p lic a b le to the in d iv id u a l w o r k e r . O ver 1 out o f 3 o f the 295 p la n s , c o v e r i n g a lm o s t h a lf the w o r k e r s , c o n s i d e r e d e a rn in g s in d e te r m in in g the a m ou n t o f b e n e f it s . 14 A s in 1 95 5, m u lt ie m p lo y e r p la n s u s u a lly p r o v id e d a fla t am ou n t o f lif e in s u r a n c e , and s in g le e m p lo y e r p r o g r a m s a g ra d u a te d a m ou n t. 15 A m ou n t o f In s u r a n c e P r o v id e d U n d er F la t - B e n e f i t P l a n s . — T h e to ta l a m ou n t o f lif e in s u r a n c e a v a ila b le u n d e r the 159 f la t -b e n e fi t p la n s ra n g e d f r o m $ 500 (8 p la n s) to $ 1 5 ,0 0 0 (1 p la n ). O v e r h a lf o f th e s e p la n s (55 p e r c e n t ) , c o v e r i n g a s lig h tly l a r g e r p r o p o r t i o n o f the w o r k e r s (59 p e r c e n t ) , p r o v id e d l e s s than $ 2 ,5 0 0 (ta b le 10). A t le a s t $ 4 ,0 0 0 w a s p r o v id e d b y s lig h t ly m o r e than on e out o f fo u r p la n s . T h e a v e r a g e b e n e fit , in c lu d in g s u p p le m e n ts , w a s $ 2 ,4 3 1 ; e x c lu d in g s u p p le m e n ts , the a v e r a g e b a s ic in s u r a n c e a m o u n te d to $ 2 ,2 7 0 — an in c r e a s e o f 18 p e r c e n t o v e r the la te 1955 a v e r a g e . 16 J o in tly fin a n c e d fla t b e n e fits w e r e , on the a v e r a g e , m o r e than tw ic e the a m ou n t o f the e m p lo y e r fin a n c e d b e n e fits ($ 4 ,4 5 9 > c o m p a r e d w ith $ 1 ,8 0 3 ) (ta b le 10). M o r e than h a lf the w o r k e r s w ith in s u r a n c e fin a n c e d e n t ir e ly b y the e m p lo y e r w e r e c o v e r e d f o r l e s s than $ 1 ,5 0 0 . 14 T w e n t y -fo u r o f the 36 p la n s w ith s u p p le m e n ta r y in s u r a n c e p r o v id e d a fla t am ou n t o f b a s ic i n s u r a n c e , and the r e m a in in g p la n s p r o v id e d a b a s ic a m ou n t g ra d u a te d a c c o r d in g to e a r n in g s (6 p la n s ) , s e r v i c e (5 p la n s ), o r e a r n in g s and s e r v i c e (1 p la n ). E x c e p t f o r 8 p la n s that p r o v id e d a fla t a m ou n t o f s u p p le m e n ta r y as w e ll as b a s ic in s u r a n c e , the a m ou n t o f s u p p le m e n ta r y in s u r a n c e a v a ila b le w a s b a s e d on e a r n in g s (in 3 p la n s , e a r n in g s and s e r v i c e ) . 15 T h e fo llo w in g ta b u la tio n s h o w s the b a s is f o r d e te r m in in g the a m ou n t o f b a s ic lif e in s u r a n c e p r o v id e d b y the p la n s a n a ly z e d in th is b u lle t in and in the 1955 r e p o r t (C f. ta b le B - l in B L S B u ll. 1221). U n lik e the d ata p r e s e n t e d in ta b le 9» the b a s is f o r d e t e r m in in g the a m ou n t o f o p tio n a l in s u r a n c e p r o v id e d u n d e r 36 s in g le e m p lo y e r p la n s p r o v id in g s u p p le m e n ta r y in s u r a n c e , d e s c r i b e d in fo o tn o te 14, d o e s n ot a ff e c t the c l a s s i f i c a t i o n o f p la n s in th is ta b u la tio n . Plans Basis of determining amount All plans providing basic life insurance______ I960 1955 295 284 Flat amount ---------------------------------------------175 177 Graduated amount--------------------------------------118 102 Earnings ---------------------------------------------89 75 Service-----------------------------------------------18 12 Length-of-uni on membership______________ 2 4 Service and earnings------------------------------6 7 Other--------------------------------------------------3 4 Flat amount plus graduated amount__________ 2 5 Union membership -----------2 0 Earnings or service-------------------------------0 5 16 B a s e d on a c o m p a r i s o n o f the a v e r a g e a m ou n t s p e c if ie d in 175 p la n s that p r o v id e d a fla t a m ou n t o f b a s ic in s u r a n c e c o v e r a g e in the s u m m e r o f I9 6 0 w ith the a m ou n t p r o v id e d u n d e r 177 p la n s in la te 1955 and sh o w n in ta b le B - 2 , B L S B u ll. 1221. 6 A m ount o f In su ra n ce P r o v id e d b y G r a d u a te d -A c c o r d in g -to -E a r n in g s P l a n s .— T o sh o w the a m ou n t o f l if e in s u r a n c e p r o t e c t io n p r o v id e d b y g r a d u a te d p la n s , the b e n e fit s p a y a b le to w o r k e r s at s e le c t e d e a r n in g s l e v e l s — $ 4 , 0 0 0 and $ 5, 000 a y e a r — h a v e b e e n c o m p u te d . It i s im p o r ta n t to n o te th at the a m o u n ts sh ow n in th is b u lle t in f o r th e s e w o r k e r s u n d e r g r a d u a te d p la n s w o u ld n ot be a p p lic a b le to w o r k e r s at o th e r e a r n in g s l e v e l s . T h e to ta l a m ou n t o f l if e in s u r a n c e a v a ila b le to w o r k e r s e a r n in g $ 4 ,0 0 0 and $ 5, 000 a n n u a lly v a r i e d g r e a t ly a m o n g th e 104 p la n s that d e t e r m in e d in s u r a n c e c o v e r a g e a c c o r d in g to e a r n in g s a lo n e . C o v e r a g e r a n g e d f r o m $ 1, 500 to $ 11, 000 f o r w o r k e r s e a r n in g $ 4 ,0 0 0 y e a r l y , and f r o m $ 1 ,5 0 0 to $ 1 4 ,0 0 0 f o r th o s e w ith ann u al e a r n in g s o f $ 5 ,0 0 0 . O v e r 95 p e r c e n t o f the $ 4, 0 0 0 - a - y e a r w o r k e r s and 75 p e r c e n t o f the $ 5 , 0 0 0 - a - y e a r w o r k e r s w e r e c o v e r e d b y an a m o u n t e q u a l to o r g r e a t e r than t h e ir annual e a r n in g s r a te (ta b le 11). A t l e a s t $ 6 , 000 w a s p r o v id e d w o r k e r s e a r n in g $ 4, 000 y e a r l y b y a lm o s t tw o out o f f iv e p la n s , r e p r e s e n t in g n e a r ly a th ir d o f the w o r k e r s w h o s e in s u r a n c e w a s b a s e d on e a r n in g s a lo n e . A t le a s t th is a m ou n t w a s a v a ila b le to n e a r ly h a lf the $ 5, 0 0 0 - a - y e a r w o r k e r s u n d e r m o r e than h a lf o f the p la n s . A b o u t on e out o f s ix w o r k e r s u n d e r g r a d u a te d p la n s w a s e l ig i b l e f o r in s u r a n c e e q u a l to at le a s t tw ic e h is a nn u al e a r n in g s r a t e . On the a v e r a g e , the $ 4, 0 0 0 - a - y e a r w o r k e r w a s in s u r e d f o r $ 5 ,3 1 8 , and the $5, 0 0 0 - a y e a r w o r k e r f o r $ 6, 3 64 . T w o out o f th r e e g r a d u a te d p la n s , a s c o m p a r e d w ith o n ly s lig h t ly m o r e than on e ou t o f fo u r fla t b e n e fit p la n s , r e q u ir e d the w o r k e r to c o n tr ib u te to w a r d the c o s t o f h is to ta l c o v e r a g e (ta b le 11). C o n t r ib u t o r y p la n s p r o v id e d h ig h e r b e n e f it s , on the a v e r a g e , than n o n c o n t r ib u t o r y p la n s , but the d if f e r e n c e w a s n ot a s g r e a t a m o n g g r a d u a te d p la n s a s a m o n g fla t p la n s . F o r the $ 4, 0 0 0 - a - y e a r w o r k e r , f o r e x a m p le , g r a d u a te d c o n t r ib u t o r y p la n s a v e r a g e d $ 5 ,4 1 6 and n o n c o n t r ib u t o r y $ 5, 062— a d if fe r e n c e o f 7 p e r c e n t — c o m p a r e d w ith a d i f f e r e n c e o f a lm o s t 150 p e r c e n t b e tw e e n the a v e r a g e f o r c o n t r ib u t o r y and n o n c o n t r ib u t o r y fla t p la n s . F o r the $ 5 ,0 0 0 - a - y e a r w o r k e r , jo i n t ly fin a n c e d g r a d u a te d b e n e fit s a v e r a g e d $ 6 , 5 8 4 and the e m p l o y e r - f i n a n c e d b e n e fit , $ 5 , 7 90 , a d if f e r e n c e o f a bou t 14 p ercen t. Th e a v e r a g e b a s ic b e n e fit p r o v id e d a $ 4, 0 0 0 - a - y e a r w o r k e r u n d e r p la n s d e te r m in in g the b a s ic a m ou n t a c c o r d in g to e a r n in g s r o s e s lig h t ly d u r in g the la s t 5 y e a r s — i. e . , f r o m $ 4, 954 in la te 1955 to $ 4 ,9 9 0 in the s u m m e r o f I9 6 0 . 17 The i n c r e a s e in th e s e a v e r a g e s d o e s n ot r e f l e c t the fa c t that s o m e o f the p la n s in c r e a s e d the b e n e fit f o r w o r k e r s in the l o w e r and h ig h e r e a r n in g s c l a s s i f i c a t i o n s w ith ou t a ffe c t in g the b e n e fit s o f $ 4 , 0 0 0 - a - y e a r w o r k e r s . A m ou n t of In su ra n ce P r o v id e d b y G r a d u a te d -b y - L e n g t h - o f -S e r v ic e P l a n s . 18— F o r a $ 47 0 0 0 - a - y e a r w o r k e r , the m in im u m b e n e fit p r o v id e d u n d e r the 29 p la n s that g r a d u a te d b e n e fit s a c c o r d in g to le n g th o f s e r v i c e r a n g e d f r o m $ 250 to $ 8 ,0 0 0 , w ith 3 out o f 4 o f th e s e 29 p la n s p r o v id in g $ 2 ,0 0 0 o r l e s s . Th e m a x im u m s r a n g e d f r o m $ 1 ,0 0 0 to $ 1 3 ,0 0 0 , but w e r e u s u a lly u n d e r $ 5 ,0 0 0 . M in im u m c o v e r a g e w a s u s u a lly a v a ila b le a s s o o n a s the w o r k e r c o m p le t e d the e m p lo y m e n t r e q u ir e m e n t s : 5 p la n s r e q u ir e d l e s s than 1 m o n th , 3 p la n s r e q u ir e d 1 o r 2 m o n th s , 16 p la n s r e q u ir e d 3 to 6 m o n th s in c lu s iv e , and 5 p la n s r e q u ir e d a year. O n ce a c q u ir in g m in im u m c o v e r a g e , the w o r k e r * s b e n e fit w a s i n c r e a s e d 17 B a s e d o n a c o m p a r i s o n o f the a v e r a g e b a s ic b e n e fit o f w h ich e a r n in g s w e r e a f a c t o r in d e te r m in in g the b a s ic c o v e r a g e . 18 In c lu d e s 12 p la n s in w h ic h e a r n in g s w e r e a ls o a f a c t o r the a m ou n t o f c o v e r a g e and 4 p la n s that b a s e d the a m o u n t on m e m b e r s h ip , w h ich , f o r c a lc u la t io n p u r p o s e s , w a s a s s u m e d to s e r v ic e . the p la n s u n d e r in d e te r m in in g le n g t h -o f - u n i o n e q u a l le n g th o f 7 u n til he r e c e iv e d th e m a x im u m b e n e fit p r o v id e d u n d e r the p la n (in f r o m 1 to 35 y e a r s ) . M o s t fr e q u e n tly , as sh ow n b e lo w , 5 y e a r s ', o r lo n g e r , s e r v i c e w a s r e q u ir e d to r e a c h th e m a x im u m . Service or union membership requirement for maximum life insurance benefit Number of plans All plans with amount of life insurance based on service or union membership------------- 29 1 year --------------------------------------------------------2 years -------------------------------------------------------- 5 4 1 8 1 1 4 1 2 1 1 3 years _____________________________ 5 years -------------------------------------------------------6 years _____________________________________ 7 years -------------------------------------------------------10 years-------------------------------------------------------14 years-------------------------------------------------------15 years-------------------------------------------------------20 years-------------------------------------------------------35 years-------------------------------------------------------- V a r ia t io n in A m ou n t B a s e d on S e x . — G e n e r a lly , b o th m e n and w o m e n r e c e iv e d th e s a m e a m ou n t o f l if e in s u r a n c e p r o t e c t io n ; o n ly 10 p la n s p r o v id e d w o m e n w o r k e r s l e s s c o v e r a g e than m e n . A s sh o w n b e lo w , m o s t fr e q u e n tly th e s e 10 p la n s p r o v id e d w o m e n w o r k e r s h a lf o f th e a m ou n t g iv e n to m e n . Percent of amount of total life insurance provided men workers that was provided women workers with earnings of ,at least $3,000 and not more than $5,000 a year All plans providing less insurance for women workers than for men workers ________________________ 50 percent 52 percent _ 62 V ipercent 66 2/J percent Plans 10 Workers (thousands) 8 8 .9 65.1 ll.5 2 21. 1 1 1.2 Under this plan, women earning less than $2,500 received 65 percent of the amount provided men earning $3,000 or less. 1 T h e l if e in s u r a n c e b e n e fit f o r $ 4 , 0 0 0 - a - y e a r w o m e n w o r k e r s w a s l e s s th an t h e ir annual e a r n in g s ra te u n d e r a ll e x c e p t 2 o f th e s e 10 p la n s . R e d u c tio n in B e n e fits D u r in g A c t iv e E m p lo y m e n t . — A lth o u g h , u n d e r m o s t p la n s , th e a m ou n t o f l i f e in s u r a n c e r e m a in e d u n ch a n g e d r e g a r d l e s s o f th e w o r k e r 's a g e, in 24 p la n s , b e n e fits f o r a c t iv e w o r k e r s w e r e r e d u c e d at a g e 65. One p la n d is c o n tin u e d b e n e fits at a g e 65. T h r e e o t h e r p la n s , as sh ow n in the f o llo w in g ta b le , r e d u c e d b e n e fits at a g e s 66 and 68: 8 Provision Plans Workers (thousands) Plans reducing or discontinuing benefit ------------ 28 786.0 24 767. 5 6.7 5.0 Reduced at age: 6 5 ---------------------------------------------------- -----6 6 __________________________________ 6 8 ---------------------------------------------------Discontinued at age: 6 5 ---------------------------------------------------- 6.8 B e n e fits w e r e r e d u c e d by e it h e r o f tw o m e th o d s w h ic h w e r e a ls o c o m m o n ly u s e d in r e d u c in g b e n e fits f o r r e t ir e d w o r k e r s . A b ou t h a lf th e 27 p la n s m a d e a s in g le r e d u c t io n at a s p e c if ie d a g e ; the r e s t g r a d u a lly r e d u c e d the c o v e r a g e to a m in im u m l e v e l that w a s m a in ta in e d d u r in g the r e m a in d e r o f th e w o r k e r ’ s e m p lo y m e n t. C o n tin u a n ce o f C o v e r a g e D u r in g L a y o f f . 19— A lm o s t 3 ou t o f 5 p la n s (175) p r o v id e d f o r th e co n tin u a tio n o f l if e in s u r a n c e f o r l a i d - o f f w o r k e r s . A bou t on e out o f f iv e o f th e s e p la n s p r o v id e d c o v e r a g e f o r m o r e than 6 m o n th s . The fin a n c in g o f b e n e fits f o r l a i d - o f f w o r k e r s w a s th e s a m e as f o r a c t iv e w o r k e r s u n d e r t w o - t h ir d s o f the 175 p la n s . T h e r e m a in in g p la n s r e q u ir e d w o r k e r s to a s s u m e the fu ll c o s t o f t h e ir b e n e fit s . In s o m e p la n s , the c o s t w a s to be a s s u m e d im m e d ia t e ly u p on la y o ff, but in a l a r g e r p r o p o r t io n , a ft e r a s p e c if ie d p e r i o d o f t im e ra n g in g f r o m 1 to 6 m o n th s a ft e r l a y o f f . U n d e r 22 p la n s , f o r e x a m p le , c o v e r a g e d u r in g la y o f f w a s p a id f o r by th e e m p lo y e r f o r the f i r s t 6 m o n th s and f o r an a d d itio n a l 18 m o n th s by the w o r k e r s w h o e le c t e d to co n tin u e coverage. L if e In s u r a n c e f o r R e t ir e d W o r k e r s B e n e fits w e r e r e d u c e d u p on r e t ir e m e n t by a ll but a fe w o f th e 189 p la n s that e x te n d e d l if e in s u r a n c e c o v e r a g e to r e t ir e d w o r k e r s . O n ly 14 p la n s p r o v id e d a ll w o r k e r s , th ro u g h o u t t h e ir e n tir e r e t ir e m e n t p e r io d , w ith c o v e r a g e eq u a l to th at a v a ila b le to th e m im m e d ia t e ly b e fo r e r e t ir e m e n t (ta b le 12). An a d d itio n a l 10 p la n s t e m p o r a r i ly co n tin u e d th e am ou n t in e f f e c t im m e d ia t e ly p r i o r to r e t i r e m e n t, but a ft e r a d e s ig n a te d p e r i o d — u s u a lly a y e a r — c o v e r a g e w a s r e d u c e d . U n d er 124 (a b ou t 2 out o f 3) o f th e 189 p la n s e x te n d in g l if e in s u r a n c e to r e t ir e d w o r k e r s , im m e d ia t e ly u p on r e t ir e m e n t b e n e fit s w e r e r e d u c e d to an a m ou n t w h ic h w a s th en m a in ta in e d d u r in g th e e n tir e r e t ir e m e n t p e r i o d . B e n e fits u n d e r 28 p la n s w e r e r e d u c e d at th e t im e w o r k e r s r e t ir e d and p e r i o d i c a l l y t h e r e a f t e r u n til a s p e c if ie d m in im u m l e v e l w a s r e a c h e d . 19 T h is d is c u s s io n e x c lu d e s the 3 0 -d a y c o n v e r s io n p e r i o d r e f e r r e d to o n p . 1. 20 S ee fo o t n o t e s 6 and 7, p . 2. E x c e p t w h e r e in d ic a te d , th e d is c u s s io n r e la t e s to th e t o t a l a m ou n t o f in s u r a n c e ( b a s i c p lu s s u p p le m e n ta r y w h e r e p r o v id e d ) e x te n d e d to r e t ir e d w o r k e r s . 9 P r o v i s i o n f o r lif e in s u r a n c e c o v e r a g e f o r r e t i r e d w o r k e r s w a s m o s t f r e q u e n t ly fou n d in p la n s that p r o v id e d a g ra d u a te d a m ou n t o f in s u r a n c e to a c t iv e w orkers. In o v e r fo u r out o f fiv e o f the p la n s w ith a g r a d u a te d b e n e fit f o r a c t iv e w o r k e r s c o v e r a g e w a s e x te n d e d to r e t i r e d w o r k e r s , as a g a in s t l e s s than h a lf o f th e f la t -b e n e fi t p la n s (ta b le s 9 and 1 2 ). L en g th o f s e r v i c e w a s r a r e l y a f a c t o r in d e t e r m in in g a w o r k e r *s c o v e r a g e a ft e r r e t ir e m e n t . F e w e r than 1 out o f 5 p la n s (34) r e la t e d the b e n e fit a m ou n t to th e n u m b e r o f y e a r s the w o r k e r h ad s e r v e d p r i o r to r e t ir e m e n t . T h e a v e r a g e a m ou n t o f lif e in s u r a n c e p r o v id e d r e t i r e d w o r k e r s p r e v i o u s l y e a r n in g $ 4 ,0 0 0 a y e a r w a s $ 2 , 0 1 9 at a g e 65 and $ 1 ,4 2 9 at a ge 70 (ta b le 13). T h is 3 0 - p e r c e n t d e c lin e b e tw e e n the a g e s o f 65 and 70 s te m m e d f r o m the v e r y s h a r p r e d u c t io n s m a d e b y 23 p la n s and the d is c o n tin u a n c e o f b e n e fits b y 3 p la n s . 21 F o r the s a m e r e a s o n , a lth o u g h 1 out o f 6 p la n s p r o v id e d at le a s t $ 4 ,0 0 0 o f l if e in s u r a n c e f o r 6 5 - y e a r - o l d r e t i r e e s , o n ly a bou t 1 out o f 10 p la n s p r o v id e d r e t i r e e s at a g e 70 w ith at le a s t th is a m o u n t. S im ila r r e d u c t io n s w e r e m a d e f o r r e t i r e e s f o r m e r l y e a r n in g $ 5 , 0 0 0 a y e a r . B a s i c lif e in s u r a n c e c o v e r a g e f o r the 6 5 - y e a r - o l d r e t ir e d w o r k e r , w h o e a r n e d $ 4 , 0 0 0 , a v e r a g e d $ 1 ,7 4 2 in the s u m m e r o f I9 6 0 as a g a in s t $ 1 ,6 8 4 in la te 1955. 22 N o s ig n ific a n t ch a n g e in the a v e r a g e b a s ic a m ou n t a v a ila b le to 7 0 -y e a r -o ld r e t ir e e s w as re p o r te d . L if e In s u r a n c e f o r A c t iv e W o r k e r s 1 D e p e n d e n ts N ine p la n s — tw o m o r e than in la te 1955— p r o v id e d a life in s u r a n c e b e n e fit f o r d e p e n d e n ts o f a c t iv e w o r k e r s . S e v e n o f th e s e p la n s c o v e r e d a ll d e p e n d e n ts (s p o u s e and d ep en d en t c h ild r e n ). T h e c o v e r a g e f o r a d e p e n d e n t s p o u s e w a s , as sh ow n b e lo w , e ith e r $ 500 ( s e v e n p la n s ) o r $ 1 ,0 0 0 (tw o p la n s ), w h ile f o r c h ild r e n it r a n g e d f r o m $ 1 0 0 to $ 5 0 0 , d e p e n d in g o n t h e ir a g e . Amount of insurance Plans Workers (thousands) All plans providing life insurance for dependents 9 245.4 Dependent children Dependent spouse $500 500 500 1 ,0 0 0 Minimum Maximum . $100 100 100 500 500 . $250 21 T h e s e data r e la t e to 137 p la n s that p r o v id e d co m p u ta b le b e n e fit s at 65 and 70. 22 U n lik e the a v e r a g e s in ta b le 13 w h ic h in c lu d e s u p p le m e n ta l c o v e r a g e , th e s e I9 6 0 a v e r a g e s , lik e the 1955 a v e r a g e s , w e r e b a s e d o n the a m ou n t o f b a s ic c o v e r a g e e x te n d e d to r e t i r e d w o r k e r s . T h e y e x c lu d e the s u p p le m e n ta l c o v e r a g e e x te n d e d to r e t ir e d w o r k e r s b y n in e p la n s that p r o v id e d a c tiv e w o r k e r s a fla t a m ou n t o r an a m ou n t b a s e d o n e a r n in g s . ages 10 P e r m a n e n t and T o t a l D is a b ilit y P r o v i s i o n s A p e r m a n e n t a n d to ta l d is a b ilit y b e n e fit p r o v i s i o n w a s in c lu d e d in a ll but 20 o f the 295 p la n s p r o v id in g l i f e in s u r a n c e (ta b le 14). A b o u t a fo u r t h o f the p la n s (71) p r o v id e d f o r a c a s h s e ttle m e n t o f the fu ll p o l i c y a m o u n t, u s u a lly p a y a b le in m o n th ly in s ta llm e n ts r a th e r than in a s in g le lu m p s u m . T w o -t h ir d s o f the p la n s ( 1 8 9 ) m a in ta in e d fche in s u r a n c e f o r the le n g th o f the d is a b ilit y o r f o r a s p e c if ie d p e r i o d and w a iv e d c o n t r ib u t io n s f r o m d is a b le d w o r k e r s c o v e r e d b y jo i n t ly fin a n c e d p la n s . T h e fu ll a m o u n t o f in s u r a n c e w a s m a in ta in e d b y 2 out o f 3 (12 1) o f th e s e p la n s f o r the d u r a tio n o f th e d is a b ilit y , and b y 1 ou t o f 5 (37) f o r a s tip u la te d p e r i o d — u s u a lly a y e a r . T h e r e s t o f th e s e p la n s (31) m a in ta in e d the fu ll a m ou n t o f c o v e r a g e f o r a s p e c if ie d p e r i o d , a ft e r w h ic h a r e d u c e d a m o u n t w a s p r o v id e d f o r th e r e m a in d e r o f the d is a b ilit y p e r io d . T o q u a lify f o r c o v e r a g e u n d e r the p e r m a n e n t and to ta l d is a b ilit y p r o v i s io n o f the l i f e in s u r a n c e c o n t r a c t , the d is a b ilit y u s u a lly had to o c c u r b e f o r e a s ta te d a g e — g e n e r a lly b e f o r e a g e 60 (1 9 4 p la n s) o r a g e 65 (5 2 p la n s) (ta b le 15). O n ly 1 6 p la n s a ls o r e q u ir e d that the w o r k e r m u s t h a v e b e e n in s u r e d f o r o r m u s t h av e w o r k e d f o r a s tip u la te d p e r i o d o f t im e . A c c id e n t a l D ea th and D is m e m b e r m e n t I n s u r a n c e The a c c id e n t a l d ea th and d is m e m b e r m e n t b e n e fit s fo u n d in 162 o f the 300 s e l e c t e d p la n s w e r e , w ith on e e x c e p t io n , p r o v id e d in a d d itio n to l i f e in s u r a n c e b e n e f it s . U n lik e l if e in s u r a n c e , h o w e v e r , w h ic h c o v e r e d d e a th f r o m a n y c a u s e at a n y t im e , on e out o f fo u r a c c id e n t a l d e a th b e n e fit p la n s c o v e r e d o n ly o f f - t h e - j o b a c c id e n ts . T h is r e s t r i c t i o n w a s p r e s u m a b ly m a d e b e c a u s e w o r k e r s in v o lv e d in o n - t h e - j o b a c c id e n t s w o u ld b e e n title d to w o r k m e n ^ c o m p e n s a t io n b e n e f it s . All plans providing accidental death and dismemberment benefits -----------------Occupational and nonoccupational cases covered-------------------------------Only nonoccupational cases covered___ Only occupational cases covered--------- Plans Workers (thousands) ■ 162 2,321.2 ■ 118 42 1,753.8 540.2 27.2 2 S e v e n ou t o f 10 o f the p la n s p r o v id e d a fla t a c c id e n t a l d e a th and d i s m e m b e r m e n t b e n e fit (ta b le 16). M o s t o f the r e m a in in g p la n s p r o v id e d a b e n e fit g r a d u a te d a c c o r d in g to e a r n in g s . E x c e p t f o r 15 p la n s , the b a s is f o r d e te r m in in g the a m ou n t o f a c c id e n t a l d ea th and d is m e m b e r m e n t b e n e fit w a s the s a m e a s the on e u s e d in d e te r m in in g the l i f e in s u r a n c e c o v e r a g e . T h e a m ou n t o f the a c c id e n t a l d e a th b e n e fit in o v e r th r e e ou t o f f iv e o f the p la n s w a s e q u a l to th e a m ou n t o f l if e in s u r a n c e p r o v id e d . A lm o s t a ll o f the r e m a in in g p la n s had a s m a l le r a c c id e n t a l d e a th b e n e fit (ta b le 17). O f the 113 p la n s w ith a fla t a c c id e n t a l d e a th b e n e fit , 81 p r o v id e d l e s s than $ 3 , 0 0 0 and o n ly 18 o f the p la n s p r o v id e d $ 4 , 0 0 0 o r m o r e (ta b le 18). Th e a v e r a g e b e n e fit w a s $ 2, 6 9 1— a lm o s t $ 500 m o r e than th e a v e r a g e b e n e fit p r o v id e d in la te 1955. T h e a v e r a g e fla t d ea th b e n e fit e x c e e d e d the a v e r a g e fla t l if e in s u r a n c e b e n e fit b y $ 2 6 0 b e c a u s e s e v e r a l o f the l a r g e r p la n s that p r o v id e d r e l a t iv e ly lo w l i f e in s u r a n c e b e n e fit s p r o v id e d no a c c id e n t a l d e a th b e n e fit . 11 T h e 40 p la n s that g r a d u a te d d e a th b e n e fits a c c o r d in g to e a r n in g s p r o v id e d , o n th e a v e r a g e , $ 3, 373 f o r the $ 4 , 0 0 0 - a - y e a r w o r k e r and $ 3, 621 f o r th e w o r k e r e a r n in g $ 5 , 0 0 0 a n n u a lly (ta b le 19) . 23 T h e s e a m o u n ts w e r e s u b s ta n tia lly l e s s th an th e a v e r a g e g r a d u a te d l if e in s u r a n c e b e n e fits (ta b le 1 1 ) f o r t h e s e e a rn in g s l e v e l s b e c a u s e s e v e r a l o f th e l a r g e r p la n s , c o v e r i n g t w o - t h ir d s o f th e w o r k e r s , p r o v id e d a c c id e n t a l d ea th b e n e fits e q u a l to o n e - h a lf o f th e l if e in s u r a n c e b e n e fit s . T h e r h u ltid is m e m b e r m e n t b e n e fit— th e c a s h a m ou n t p a y a b le f o r a c c id e n t a l l o s s o f (a) tw o o r m o r e lim b s , (b) c o m p le t e l o s s o f s ig h t, o r (c) l o s s o f sig h t in on e e y e p lu s l o s s o f on e lim b — ^was th e s a m e as the a c c id e n t a l d e a th b e n e fit in a ll e x c e p t f iv e p la n s , w h e r e th e m u lt id is m e m b e r m e n t b e n e fit w a s l a r g e r . A ll p la n s p r o v id e d o n e - h a lf o f the m u lt id is m e m b e r m e n t b e n e fit a s a s in g le d i s m e m b e r m e n t b e n e fit (p a y m e n t f o r th e l o s s o f on e lim b o r the s ig h t o f on e e y e ). T h r e e p la n s r e d u c e d and f o u r p la n s d is c o n tin u e d a c c id e n t a l d e a th b e n e fits w h en a w o r k e r r e a c h e d a g e 65 o r o l d e r . Provision Plans reducing or discontinuing benefit---------- -----------------Reduced at age: 65 -------------------------------------------------------66 ___________________________ Discontinued at age: 65 ------------------------------------------------------68 ------------------------------------------------------70 ------------------------------------------------------- ----------- Plans 7 Workers (thousands) 149.9 15.6 A u n 1 2 0 .0 2 5.0 5.3 O n ly s e v e n p la n s e x te n d e d b e n e fits to r e t ir e d w o r k e r s . S ix p la n s p r o v id e d th e s a m e a m ou n t o f c o v e r a g e that w a s a v a ila b le to th e w o r k e r im m e d ia t e ly p r i o r to r e t ir e m e n t , but tw o o f th e s e s ix p la n s d is c o n tin u e d c o v e r a g e s h o r t ly a ft e r r e t ir e m e n t . 23 a s c e r t a in e d by T h e a m ou n t o f a c c id e n t a l d e a th b e n e fits u n d e r g r a d u a te d p la n s th e s a m e m e th o d as that u s e d f o r l if e in s u r a n c e , s e e p. 6 . w as 12 T a b le 1. H ea lth and in s u r a n c e p la n s stu d ied in m a n u fa c tu r in g and n o n m a n u fa ctu rin g in d u s tr ie s b y n u m b e r o f w o r k e r s c o v e r e d and typ e o f b a r g a in in g u n it, e a r ly s u m m e r I96 0 1 (W o r k e r s in th o u s a n d s) A ll in d u s tr ie s W ork ers co v e re d T o ta l S in g le e m p lo y e r M u lt ie m p lo y e r P la n s W ork ers P la n s W ork ers A ll p lan s stu d ie d ---------------------------------- 300 4 ,9 3 3 .2 205 2 , 806 . 7 95 2 , 126. 5 1 ,0 0 0 and u n d e r 5 ,0 0 0 w o r k e r s ------5, 000 and u n d e r 1 0 ,0 0 0 w o r k e r s ------10, 000 and u n d e r 15, 000 w o r k e r s ----1 5, 000 and u n d e r 2 5 , 000 w o r k e r s ----2 5 ,0 0 0 and u n d e r 5 0 ,0 0 0 w o r k e r s ----5 0 ,0 0 0 and u n d e r 1 0 0 ,0 0 0 w o r k e r s — 1 0 0 ,0 0 0 w o r k e r s and o v e r ----------------- 137 59 34 26 28 5 11 351. 419. 387. 472. 92 8. 306. 2 ,0 6 8 . 102 39 20 17 17 4 6 262 . 4 2 72 . 0 224. 6 302 .9 532 . 0 250 . 8 962 . 0 35 20 14 9 11 1 5 89. 147. 162. 169. 39 6. 55. 1, 106. 7 1 0 0 8 6 0 M a n u fa ctu rin g P la n s W ork ers 3 1 4 1 8 8 0 N onm an uf a c tur ing S in g le e m p lo y e r M u it ie m p io y e r S in g le e m p lo y e r M u it ie m p io y e r P la n s W ork ers P la n s P la n s P la n s A ll p la n s stu d ie d ----------------------------------- 179 2 , 6 5 0 .4 40 672. 5 26 156. 3 55 1 ,4 5 4 .0 1 ,0 0 0 and u n d e r 5 ,0 0 0 w o r k e r s --------5, 000 and u n d e r 10, 000 w o r k e r s -----10, 000 and u n d e r 15, 000 w o r k e r s ----1 5 ,0 0 0 and u n d e r 2 5 ,0 0 0 w o r k e r s ----2 5 ,0 0 0 and u n d e r 5 0 ,0 0 0 w o r k e r s ----5 0 ,0 0 0 and u n d e r 1 0 0 ,0 0 0 w o r k e r s —1 0 0 ,0 0 0 w o r k e r s and o v e r ------------------ 86 34 17 16 16 4 6 218. 6 240. 7 188. 6 2 8 7 .9 5 0 1 .8 250. 8 96 2. 0 14 11 8 1 3 1 2 39. 5 77. 6 90 . 8 18. 0 109. 8 55. 8 2 8 1 .0 16 5 3 1 1 - 43. 8 3 1 .3 36. 0 15. 0 3 0 .2 - 21 9 6 8 8 3 49 . 8 69. 5 7 1 .6 151. 1 287. 0 8 2 5 .0 W ork ers W ork ers W ork ers 1 A il c o v e r a g e data r e p o r t e d in th is stu d y r e la t e to the n u m b e r o f a c t iv e w o r k e r s (m en and w o m e n ) c o v e r e d b y the p lan s w h ic h p r o v id e the s p e c if ie d b e n e fit . No a ttem p t w as m a d e to d e te r m in e the n u m b e r o f w o m e n w o r k e r s , d e p e n d e n ts , o r r e t ir e d w o r k e r s c o v e r e d b y the p la n s . T a b le 2. H ealth and in s u r a n c e p lans stu d ied by in d u s tr y and g ro u p s e lig ib le fo r life in s u r a n c e and a c c id e n ta l death and d is m e m b e r m e n t b e n e f i t s , e a r ly s u m m e r I960 1 (W o r k e r s in th ou sa n d s) A ll p lans p ro v id in g a c c id e n ta l death and d is m e m b e r m e n t b e n e fits f o r — A ll p lan s p r o v id in g life in s u r a n c e f o r T otal P lan s A ll p lan s s t u d i e d -----------------------------M a n u fa ctu rin g ---------------------- F o o d and k in d re d p r o d u c ts ----------T o b a c c o m a n u fa c tu r e s ------------------T e x tile m i l l p r o d u c ts --------------------A p p a r e l and o th e r fin ish e d p r o d u c t s ------------------------------------------L u m b e r and w ood p r o d u c t s , e x c e p t fu r n it u r e ----------------------------F u r n itu r e and fix t u r e s ------------------P a p e r and a llie d p r o d u c t s ------------P r in tin g , p u b lish in g , and a llie d in d u s tr ie s --------------------------C h e m ic a ls and a llie d p r o d u c t s -----P e tr o le u m r e fin in g and r e la t e d in d u s tr ie s ----------------------R u b b e r and m is c e lla n e o u s p la s t ic s p r o d u c ts ------------------------L e a th e r and le a th e r p r o d u c t s -------S ton e, c la y , and g la s s p r o d u c t s ----P r i m a r y m e ta l i n d u s t r i e s -------------F a b r ic a t e d m e ta l p ro d u c ts ----------M a c h in e r y , e x c e p t e l e c t r i c a l ------E l e c t r i c a l m a c h in e r y , equ ip m en t and su p p lie s ---------------------------------T r a n s p o r ta tio n e q u ip m e n t -----------In stru m en ts and r e la t e d p ro d u c ts — M is c e lla n e o u s m a n u fa c tu r in g i n d u s t r i e s --------------------------------------N o n m a n u fa ctu rin g ---------------M ining, c ru d e p e t r o le u m , and n a tu ra l gas p r o d u c t io n ----------------T r a n s p o r ta tio n ------------------------------C o m m u n ic a tio n s -----------------------------U t ilit ie s : E l e c t r i c and gas ----------R e ta il and w h o le s a le tra d e ----------H o te ls and r e s t a u r a n t s ------------------S e r v ic e s -------------------------------------------C o n s t r u c t i o n ------------------------------------M is c e lla n e o u s n o n m a n u fa ctu rin g in d u s tr ie s -------------------------------------- D ep en d en ts of a c t iv e w orkers A c tiv e w orkers In d u stry W o rk e r s P la n s W ork ers P la n s W ork ers P la n s R e tir e d w orkers A c tiv e w orkers R e tir e d w orkers W ork ers P la n s W ork ers 1, ta b le 1. W ork ers 300 4 ,9 3 3 .2 295 4 ,3 8 1 . 8 9 24 5. 4 189 3, 154. 0 162 2 ,3 2 1 .2 7 5 4 .4 219 3 ,3 2 2 .9 219 3 ,3 2 2 .9 3 28. 1 150 2 ,6 4 4 . 1 114 1 ,6 4 3 .8 6 3 6 .4 140. 6 22. 5 2 .4 7 4 2 .2 - - 7 - - 17. 7 - - 1 7. 5 _ _ 7. 5 3. 3 43. 1 3 4 8 44. 5 66. 1 32. 3 _ _ 1 5. 5 1 9 2. 5 9 6 .2 4 5 19. 0 3 1 .9 1 - 2 .5 - 8 92 . 7 3 38. 7 1 7. 5 _ 17 3 11 168. 1 24 . 0 44. 7 17 3 11 168. 1 24. 0 44 . 7 1 9. 6 - - 1 7. 0 14 2 1 6 395. 1 6 39 5. 1 _ _ 5 383. 1 3 5 13 44. 5 68. 1 49. 5 3 5 13 44. 5 68. 1 49. 5 _ _ - - - - 1 2 12 6 10 2 1 .7 1 0 9 .4 6 10 2 1 .7 109. 4 - - 8 92. 7 8 92 . 7 8 11 10 21 11 22 108. 3 68. 7 76. 8 4 9 9 .2 98. 1 147 0 8 11 10 21 11 22 108. 3 68. 7 76. 8 4 9 9 .2 98. 1 147. 0 1 - 16 23 8 3 3 0 .2 902. 0 33. 4 16 23 8 3 3 0 .2 9 0 2 .0 33. 4 - - 11 13 6 307. 3 618. 1 2 7 .9 9 17 5 2 64. 6 712. 0 12. 8 1 4. 3 7 4 1 .4 7 4 1 .4 _ _ 3 12. 7 3 19. 5 _ - 81 1 ,6 1 0 .3 76 1 ,0 5 8 .9 6 21 7. 3 39 5 0 9 .9 48 677. 4 1 18. 0 4 22 2 11 12 5 9 15 1 9 4 .9 870. 7 38. 3 3 5 .2 60. 4 67. 1 140. 1 196. 4 4 20 2 10 12 5 9 13 1 9 4 .9 352. 7 38. 3 3 4 .2 60. 4 67. 1 140. 1 164. 0 2 2 _ 2 160. 0 1 5 .9 _ 4 1 .4 3 10 2 9 5 5 4 193. 6 68. 6 38. 3 3 1 .7 31. 7 _ 90. 0 48. 8 2 15 1 11 3 5 10 1 1 .3 3 2 1 .2 1 .9 5 7 .9 52. 6 86. 7 138. 6 1 - 18. 0 - - - 1 7 .2 1 7 .2 . - - - 6 3 9 21 7 16 105. 8 19. 3 56. 8 4 9 9 .2 79. 3 123. 8 6 1 5 6 6 14 105. 8 3. 5 43. 8 3 3 .4 25. 3 1 2 3 .2 _ 1 1 - - . 1 1 .5 - 1 7 .2 1 7' 2 See fo o tn o te P lan s 1 1 .6 5. 0 . . 14 T a b le 3. C l a s s i f i c a t i o n o f p la n s p r o v id in g life in s u r a n c e and a c c id e n t a l death and d is m e m b e r m e n t b e n e fit s b y g r o u p s e lig ib le , e a r ly s u m m e r I96 0 1 (W o r k e r s in th ou s a n d s) E lig ib le g r o u p s A c tiv e w ork ers D ep en d en ts o f a c t iv e w ork ers T ota l R e tir e d w ork ers A l l p lan s p r o v id in g life in s u r a n c e --------_ - X - X X X - X X X X A i l p la n s p r o v id in g a c c id e n t a l death anc1 d is m e m b e r m e n t b e n e fit s ---------------------X X _ _ X P la n s W ork ers 295 4 , 3 8 1 .8 98 188 8 1 9 9 3 .9 3, 1 4 2 .5 233. 9 1 1 .5 162 2 ,3 2 1 .2 155 7 2,26*6. 8 5 4 .4 1 B a se d on a stu d y o f 300 h e a lth and in s u r a n c e p lan s u n d er c o l l e c t i v e b a r g a in in g c o v e r in g a p p r o x im a t e ly 5 m i ll i o n w o r k e r s . A ll c o v e r a g e data r e la t e to the n u m b e r o f a c t iv e w o r k e r s (m e n and w o m e n ) c o v e r e d b y the p la n s . No a ttem p t w as m a d e to d e te r m in e the n u m b e r o f w o m e n w o r k e r s , d e p e n d e n ts , o r r e t ir e d w o r k e r s c o v e r e d b y the p la n s . 15 T a b le 4. M eth od o f fin a n c in g life in s u r a n c e b e n e fit by g r o u p s e lig ib le and typ e o f b a r g a in in g unit, e a r ly s u m m e r I96 0 1 (W o r k e r s in th o u s a n d s) T y p e o f b a rg a in in g unit T o ta l G r o u p s c o v e r e d and m e th o d o f fin a n c in g 2 S in gle e m p lo y e r M u lt ie m p lo y e r P la n s W ork er s P la n s W ork ers P la n s W ork ers 295 168 127 4, 3 8 1 .8 2 ,3 4 7 .5 2, 0 3 4 .3 2 04 81 123 2 ,8 0 5 .7 8 2 6 .4 1, 979. 3 91 87 4 1, 576. 1 1, 521. 1 55. 0 9 8 1 “ 2 4 5 .4 2 3 8 .4 7. 0 2 1 1 “ 18. 5 1 1 .5 7. 0 - 7 7 - 22 6. 9 22 6. 9 - 189 145 6 30 2 4 8 3, 1 5 4 .0 2, 678. 6 305. 8 27. 0 3 0 .4 1 1 2 .2 160 120 29 3 8 2, 3 7 1 .0 1, 9 7 8 .4 256. 8 23 . 6 1 1 2 .2 29 25 1 2 1 A c t iv e w o r k e r s A l l p la n s p r o v id in g b e n e f i t s ___________ E m p lo y e r o n ly ________ ____________ E m p lo y e r and w o r k e r 3 _____________ D e p en d en ts o f a c t iv e w o r k e r s A l l p la n s p r o v id in g b e n e f i t s ___________ E m p lo y e r o n ly _______________________ E m p lo y e r and w o r k e r _______ _____ W o r k e r o n ly _____________________ — ~ ~ R e tir e d w o r k e r s A l l p la n s ex te n d in g b e n e f i t s ----------------E m p lo y e r o n ly ______________________ E m p lo y e r and r e t ir e d w o r k e r 5 ____ E m p lo y e r and a c t iv e w o r k e r _____ R e tir e d w o r k e r o n l y 7 _______________ 78 3. 0 7 0 0 .2 49. 0 27. 0 6. 8 1 See fo o tn o te 1, ta b le 3. 2 If the w o r k e r c o n tr ib u te d to w a r d the c o s t o f the h e a lth and in s u r a n c e p r o g r a m a s a w h o le (w ith the e m p lo y e r p ay in g the r e m a in in g c o s t ) , the life in s u r a n c e b e n e fit w a s c l a s s i f ie d a s jo in tly fin a n c e d . If b o th b a s ic and s u p p le m e n ta ry in s u r a n c e w e r e a v a ila b le to the w o r k e r (a ctiv e o r r e t ir e d ), the b e n e fit w as c l a s s i f i e d a c c o r d in g to h ow the to ta l am ou n t o f in s u r a n c e c o v e r a g e w a s fin a n c e d ; fo r e x a m p le , i f the b a s ic c o v e r a g e w a s p aid fo r s o le ly b y the e m p lo y e r and the s u p p le m e n ta ry c o v e r a g e by the a c t iv e w o r k e r , the b e n e fit w a s c l a s s i f i e d a s " e m p l o y e r and w o r k e r " fin a n c e d . 3 4 p la n s p r o v id e d b a s ic and s u p p le m e n ta ry in s u r a n c e fin a n c e d b y the e m p lo y e r and w o r k e r ; 21 p la n s p r o v id e d b a s ic in s u r a n c e fin a n c e d s o le ly by the e m p lo y e r and s u p p le m e n ta ry in s u r a n c e , by the e m p lo y e r and the w o r k e r ; 7 p la n s p r o v id e d b a s ic in s u r a n c e fin a n c e d s o le ly by the e m p lo y e r , and s u p p le m e n ta ry in s u r a n c e , s o le ly by the w o r k e r ; and 4 p la n s p r o v id e d b a s ic in s u r a n c e fin a n c e d by the e m p lo y e r and w o r k e r and su p p le m e n ta r y in s u r a n c e , s o le ly by the w o r k e r . A l s o , 4 p la n s p r o v id e d fo r the e m p lo y e r to pay the fu ll c o s t o f the in s u r a n c e a fte r the w o r k e r r e a c h e d ag e 65; 1 plan p r o v id e d e m p lo y e r -fin a n c e d in s u r a n c e d u rin g the f i r s t 2 y e a r s o f c o v e r a g e ; and 1 p lan p r o v id e d e m p lo y e r -fin a n c e d in s u r a n c e fo r w o r k e r s un der ag e 35 o r w ith l e s s than 5 y e a r s o f s e r v i c e . 4 6 p la n s p r o v id e d b a s ic and su p p le m e n ta ry in s u r a n c e fin a n c e d s o le ly b y the e m p lo y e r . 5 4 p la n s p r o v id e d b a s ic in s u r a n c e fin a n c e d s o le ly b y the e m p lo y e r and s u p p le m e n ta ry in s u r a n c e by the e m p lo y e r and the r e t i r e d w o r k e r ; 1 p lan p r o v id e d b a s ic in s u r a n c e fin a n c e d s o le ly by the e m p lo y e r and s u p p le m e n ta ry in s u r a n c e , s o le ly by the r e t i r e d w o r k e r ; and 1 p lan p r o v id e d b a s ic and s u p p le m e n ta ry in s u r a n ce fin a n c e d b y the e m p lo y e r and the r e t i r e d w o r k e r . 6 U nder 2 p la n s , life in s u r a n c e p r o v id e d r e t ir e d w o r k e r s o v e r a c e r t a in ag e (age 68 in 1 p lan and a g e 7 0 in the o t h e r ) w a s fin a n c e d s o le ly b y the e m p lo y e r . 7 3 o f th e se p la n s p r o v id e d b a s ic and s u p p le m e n ta ry in s u r a n c e . 8 T h e s e p la n s p r o v id e d " p a id -u p " life in s u r a n c e c o v e r a g e that w a s p u r c h a s e d b y the r e t ir e d w o r k e r d u r in g h is a c t iv e e m p lo y m e n t . In s o m e o f th e s e p la n s the e m p lo y e r p u r c h a s e d a d d itio n a l in s u r a n c e c o v e r a g e f o r the r e t i r e d w o r k e r . 16 T a b le 5. M eth od o f fin a n c in g a c c id e n ta l d eath and d is m e m b e r m e n t b e n e fit s by g r o u p s e lig ib le and type o f b a rg a in in g un it, e a r ly s u m m e r I960 1 (W o r k e r s in th ou sa n d s) T ype o f b a rg a in in g unit T ota l G r o u p s c o v e r e d and m e th o d o f fin a n c in g 2 S ingle e m p lo y e r P la n s W ork ers P la n s M u lt ie m p lo y e r W ork ers P la n s W ork ers A c tiv e w o r k e r s A ll p la n s p r o v id in g b e n e fit s __________ E m p lo y e r o n ly ______________________ E m p lo y e r and w o r k e r 3 _____________ 162 113 49 2 ,3 2 1 .2 1 ,2 3 1 .9 1 ,0 8 9 .3 103 56 47 1 ,5 0 5 .4 436. 1 1 ,0 6 9 .3 59 57 2 815. 8 795. 8 20. 0 5 2 3 33. 9 1 1 .8 22. 1 2 1 1 20. 5 2. 5 18. 0 R e t ir e d w o r k e r s A ll p la n s e x ten d in g b e n e fit s __________ E m p lo y e r o n ly ______________________ E m p lo y e r and r e t i r e d w o r k e r 1 2 3 fin a n c e d and the 7 3 4 54. 4 14. 3 40. 1 See fo o tn o te 1, ta b le 3. See fo o tn o te 2, ta b le 4. 1 p lan p r o v id e d b a s ic in s u r a n c e fin a n c e d s o le ly by the e m p lo y e r and s u p p le m e n ta ry in s u r a n c e by the e m p lo y e r and the w o r k e r ; and 2 p la n s p r o v id e d b a s ic in s u r a n c e fin a n c e d b y the e m p lo y e r w o r k e r and su p p le m e n ta ry in s u r a n c e fin a n c e d s o le ly by the w o r k e r . T a b le 6. R e la tio n s h ip o f m e th o d o f fin a n c in g life in s u r a n c e and a c c id e n ta l death and. d is m e m b e r m e n t b e n e fit s fo r a c t iv e and r e t ir e d w o r k e r s , e a r ly s u m m e r I960 1 (W o r k e r s in th ou sa n d s) L ife in s u r a n c e M eth od o f fin a n c in g 2 P la n s A ll p la n s p r o v id in g b e n e fit fo r a c t iv e w o r k e r s an d r e t i r e d w o r k e r s ____ _____ B e n e fit f o r a c t iv e w o r k e r fin a n c e d by e m p lo y e r ___ B e n e fit f o r r e t i r e d w o r k e r fin a n c e d : B y e m p lo y e r B y r e t i r e d w o r k e r and e m p lo y e r __________ By r e tir e d w o rk e r B e n e fit f o r a c t iv e w o r k e r fin a n c e d by e m p lo y e r and w o r k e r B e n e fit f o r r e t i r e d w o r k e r fin a n c e d : B y e m p lo y e r _________________________________ B y r e t i r e d w o r k e r and e m p lo y e r __________ B v a c t iv e w o r k e r and e m p lo y e r By r e tir e d w o rk e r O ther W ork ers A c c id e n t a l d eath and d is m e m b e r m e n t b e n e fit P la n s W ork ers 189 3 ,1 5 4 .0 7 54. 4 87 1 ,4 3 3 . 1 3 14. 3 84 2 1 1 ,3 7 3 .9 5 2 .4 6. 8 3 _ 14. 3 _ 102 1 ,7 2 0 .9 4 61 28 2 3 8 1 ,3 0 4 .7 2 5 3 .4 27. 0 23. 6 112. 2 - _ 4 _ _ 40 . 1 _ 40 . 1 _ - See fo o tn o te 1, ta b le 3; 295 p la n s p r o v id e d a life in s u r a n c e b e n e fit f o r a c t iv e w o r k e r s . See fo o tn o te 2, ta b le 4 . 17 T ab le 7. E lig ib ility re q u ire m e n ts fo r life d ism e m b e rm e n t b e n e fits, (W o rkers in su ra n c e e a rly and a c c id e n ta l death and sum m er I9 6 0 1 in th o u sa n d s) A c c i d e n t s l! d e a t h a n d Life E ffe c tiv e A l l p la n s A fter date p ro vid in g of c o v e ra g e b e n e fits d ism e rn b e rm e n t be n e fit in su ra n c e P la n s W o rkers P la n s W o rkers 295 4 ,3 8 1 .8 162 51 1 ,3 2 4 .0 26 584. 8 16 108. 1 ----------------------- 2 ,3 2 1 .2 e m p lo y m e n t fo r— Under 1 m o n t h ------------------------------------------- 1 and u n d er 2 m onths ---------------------------- 31 2 and u n d er 3 m onths ---------------------------- 23 3 5 0 .2 133. 1 3 and u n d er 4 m onths ---------------------------- 63 4 6 1 .2 4 and u n d er 5 and u n d er ------------------------------------------------------- 4 9 1 .3 2 15. 0 - 75. 0 - 49 1 6 6 6 .9 6. 3 16 105. 3 13 1 8 6 .2 1 3 10. 7 5 m onths 6 m onths 7 m onths ---------------------------- 8 and u n d er 9 m onths ---------------------------- 6 and u n d er 12 a n d u n d e r F irs t 13 m o n t h s ------------------------ d a y of m o n th fo llo w in g 90. 5 17 3 1 1 .1 39 2 6. 3 co m p le tio n of e m p lo y m e n t fo r— Under 1 m onth 11 281. 1 7 6 496. 0 12 104. 1 6 53. 0 ---------------------------- 1 3. 0 1 3. 0 ---------------------------- 3 8. 3 2 10. 8 2 and u n d er 3 m onths ---------------------------- 3 and un d e r 4 m onths ---------------------------- 4 and u n d e r 5 m onths 6 and u n d e r 7 m onths 15 -------------------------------------------------- 2 5 .9 1 3. 3 ----------------------------------------------------------------- 10 1 4 2 .9 9 152. 0 7 or m ore 1 See fo o tno te T ab le 8. 1, ta b le P la n s 3. re d u cin g or d en yin g life d is m e m b e r m e n t b e n e fits after a sp e c ifie d age, (W o rk ers in su ra n c e o r a c c id e n ta l d eath and fo r a ctiv e w o r k e rs e a rly sum m er h ire d I960 1 in th o u sa n d s) A c c id e n ta l death and Life d ism e m b e rm e n t in su ra n c e P ro v isio n P la n s b e n e fit W o rkers A l l p la n s re d u c in g o r d e n yin g b e n e fits fo r w o rk e rs h ire d after a s p e c i f i e d a g e ------------------------------------------------- 41 976. 5 R e d u c e d b e n e fits p ro v id e d if h ire d a fte r sp e c ifie d age ------------------------------------ 28 785. 6 P la n s W o rkers 10 2 0 7 .2 6 76. 9 50 y e a r s ----------------------------------------------------- 1 10. 0 - 55 y e a r s ----------------------------------------------------- 90. 8 - 60 y e a r s ----------------------------------------------------- 2 5 66. 0 3 57. 3 65 y e a r s 66 y e a r s --------------------------------------------------------------------------------------------------------- 18 612. 1 2 15. 6 2 6. 7 1 4. 0 130. 3 B e n e fits not a v a ila b le sp e c ifie d after ----------------------------------------------- 11 176. 9 4 ----------------------------------------------------- 1 11. 6 - - 55 y e a r s ----------------------------------------------------- 3 7. 0 - - 65 y e a r s ----------------------------------------------------- 7 158. 3 2 125. 0 70 y e a r s ----------------------------------------------------- - 2 5. 3 ----------------------------------------------------------------- 22 - - 1 162, age if h ir e d - 50 y e a r s O ther See foo tnote a c c id e n ta l 2 age 3 0 .2 6 6 6 .9 3 1 1 .7 504. 8 ---------------------------- O ther 8 ----------------------------------------- 1 and u n d er 2 m onths 56 These or death p la n s la te r. 1, ta b le and d id 3. 295 p la n s d ism e m b e rm e n t not p ro v id e life p ro v id e d 14. 0 life in su ra n c e for a c tiv e w o rkers, and b e n e fits. in su ra n c e to w o rkers b e c o m in g u n io n m em bers at 18 T ab le 9- B a s is of d e t e r m i n i n g by type total am o un t of b a r g a in in g u n it, (W o rkers of lif e e a rly in su ra n c e sum m er of d e te r m in in g Type p la n s amount w o rkers in th o u s a n d s ) A ll B a sis fo r a c tiv e I9 6 0 1 of b a r g a in in g u n it S in g le M u ltie m p lo y e r e m p lo y e r P la n s W o rkers P la n s s t u d i e d --------------------------------------- 300 4 ,9 3 3 .2 205 2 ,8 0 6 . 7 95 P l a n s p r o v i d i n g l i f e i n s u r a n c e ----------F l a t a m o u n t 2 -------------------------------------------- 295 4 ,3 8 1 .8 204 2 ,8 0 5 .7 159 118 1 ,7 7 4 .9 81 575. 0 91 78 2 ,4 6 6 .2 107 2, 104. 0 11 87 1 ,9 2 9 .2 30. 1 - 2 A l l p la n s G r a d u a t e d ---------------------------------------------------E a r n i n g s 3 ---------------------------------------------- W orkers P la n s W orkers 2, 126. 5 1, 5 7 6 . 1 1 ,1 9 9 .9 3 6 2 .2 -------------------------------------------------- 89 13 1 ,9 5 6 . 1 200. 8 L e n g t h - o f - u n i o n m e m b e r s h i p -------- 2 94. 6 2 94. 6 11 3 150. 7 64. 0 9 2 125. 7 19. 0 2 1 25. 0 45. 0 18 140. 7 16 126. 7 2. 14. 0 S e rv ice S e rv ice and e a rn in g s 4 --------------------- O t h e r ------------------------------------------------------- 9 - 2 6 .9 170. 7 4 F l a t a m o u n t p lu s a m o u n t g ra d u a te d a c c o r d i n g to e a r n i n g s , s e r v i c e , o r u n i o n m e m b e r s h i p 5 ------------------------ 1 See 2 8 p la n s 3 1 p la n in su ra n c e 4 2 e a rn in g s; based on 5 in g s ; ta b le a p ro v id e d p la n s on a 1. fia t am ount of flat amount fo r b a sic in su ra n c e wom en and a w o rkers. fla t 6 am ount p la n s of su p p le m e n ta ry p ro vid e d b a sic and in su ra n c e . su p p le m e n ta ry ea rn in g s. p ro vid e d p ro vid e d and 1, p ro vid e d based 3 p la n s foo tnote b a sic b a sic 1 p la n in su ra n c e in su ra n c e based based p ro vid e d b a s ic on on se rv ice se rv ice in su ra n c e based and and on su p p le m e n ta ry su p p le m e n ta ry se rv ice and in su ra n c e in su ra n c e ea rn in g s, and based based on e a r n in g s ; on se rv ice s u p p le m e n ta ry and in su ra n c e e a rn in g s. 15 p la n s p ro vid e d 1 p la n p ro v id e d e a rn in g s; and 2 a p la n s T ab le a fla t flat p ro v id e d 10. a m o u n t of b a s i c am ount of a b a sic fla t A m o u n t of life in su ra n c e in su ra n c e am ount p lu s in su ra n c e an p ro v id e d s u p p le m e n ta ry su p p le m e n ta ry am ount a fla t a m o u n t of in s u r a n c e 1 b y m e th o d (W o rkers and and gradu ated a c tiv e w o r k e rs of fin a n c in g , on u n io n on earn se rv ice and m e m b e rsh ip . p ro v id in g I9 6 0 2 in th o u sa n d s) of f in a n c in g 3 E m p lo y e r Total P la n s W o rkers 159 1 ,7 7 4 .9 A l l p la n s p ro v id in g a fla t a m o u n t o f l i f e i n s u r a n c e 4 ------------------------------- to u n d e r p la n s sum m er based based a cc o rd in g e a rly M ethod A m ount in su ra n c e in su ra n c e 11 30 215. 7 1 ,3 5 5 . 1 45 9 33 10 323. 1 430. 6 _ 52. 7 1 1 .2 19 6 8 145. 2 11 70. 5 4. 0 3 114 419. 8 _ ---------------------------------$ 1 , 5 0 0 -------------------$ 2 , 0 0 0 -------------------- $ 2 , 000 and u n d er $ 2 , 500 and u n d e r $ 2 , 500 $ 3 , 000 --------------------------------------- 82. 9 $ 3 , 000 and under $ 3 , 500 -------------------- 11 86. 9 100. 7 2 $ 3 , 500 and under $ 4 , 000 -------------------- 10 9 7 .2 7 91. 8 84. 4 3 8 .9 12. 8 $ 4 , 000 and under $ 4 , 500 -------------------- 15 147. 3 $ 4 , 500 and under $ 5 , 000 -------------------- 2 64. 8 7 - 40. 7 - $ 5 , 000 and under $ 6 , 000 -------------------- 18 $6, 000 and under $ 7 , 000 -------------------- 5 1 7 8 .9 29. 3 ------------------------------------- 2 $ 7 , 000 and o v e r 323. 1 446. 1 W orkers P la n s W o rkers P la n s and w o r k e r U n d e r $ 1 , 0 0 0 ----$ 1 ,0 0 0 and under $ 1 , 500 and u n d er A verag e 9 38 E m p lo y e r o n ly 53. 9 8 f l a t a m o u n t 5 ---------------------------- 3 1 .0 In clu d e s a ll p la n s p ro v id in g 2 See foo tnote 1, ta b le 3. 3 See foo tnote 2, ta b le 4; 4 In clu d e s 5 Am ount 5 p la n s p ro v id e d 295 p ro v id in g by each fla t a p la n s le s s e r p la n 1 am o u n ts 1 - 6. 3 - — _______________ of b a s ic p ro v id e d life am ount fo r w e ig h te d 9 7 .4 by and in su ra n c e w om en num ber of for a c tiv e 64. 8 4 23. 0 81. 5 3 1 .0 1 ______________________ ______________________ in su ra n c e . w o rkers. w o rkers. w o rkers 106. 6 $4, 459 1 s u p p le m e n ta ry 8 2 4 2 $ 1 , 803 $ 2 , 431 _____________________ 1 14 1 5 .5 5 covered. 19 T ab le 11. A m o u n t of lif e u n d e r p la n s in su ra n c e g ra d u a tin g p ro v id e d a ctiv e w o rkers the a m o u n t of i n s u r a n c e b y m ethod of f i n a n c i n g , (W o rk ers e a rly e a rn in g a c c o rd in g sum m er based p ro v id in g life on e a r n in g s $ 5 ,0 0 0 y e a rly - a lo n e 1 I9 6 0 2 M ethod A l l p la n s and in th o u sa n d s) Total Am ount $ 4 ,0 0 0 to e a r n i n g s of f in a n c in g 3 E m p lo y e r P la n s W orkers 104 2 ,0 7 8 .2 E m p lo y e r o n ly W o rkers P la n s P la n s ,a n d w o r k e r W orkers in s u ra n c e a lo n e 4 ------------------ 35 576. 0 69 1 ,5 0 2 .2 $4, 0 0 0 -a-year-w o rk er Under $ 2 ,0 0 0 $ 2 ,0 0 0 ------------------------------------------- 1 and u n d er $ 2 ,5 0 0 --------------------- $ 2 ,5 0 0 and un d er $ 3 ,0 0 0 --------------------- 1 $ 3 ,0 0 0 and u n d er $ 3 ,5 0 0 --------------------- 2 1 .9 37. 4 3 1. 5 31. 3 1 1 .9 _ - - 3 1 1. 5 - 1 18. 0 _ 37. 4 - 13. 3 1 $ 3 ,5 0 0 and u n d er $ 4 ,0 0 0 --------------------- 4 2 1 .0 1 $ 4 ,0 0 0 and un d er $ 4 ,5 0 0 --------------------- 28 5 3 4 .2 16 $ 4 ,5 0 0 and u n d er $ 5 ,0 0 0 ---------------------- 12 5 3 2 .6 5 70. 1 7 462. 5 $ 5 , 000 and u n d e r $ 6 ,0 0 0 --------------------- 13 244. 1 3 14. 5 10 229. 6 214. 6 8 .9 2 8 3 .3 3 12. 1 12 250. 9 $ 6 ,0 0 0 and und er $ 7 ,0 0 0 --------------------- 14 304. 4 2 and u n d er $ 8 ,0 0 0 --------------------- 2 20. 4 - 89. 8 - 12 $ 7 ,0 0 0 2 20. 4 $ 8 ,0 0 0 and un d er $ 9 ,0 0 0 --------------------- 12 2 2 7 .2 2 35. 5 10 $ 9 ,0 0 0 and un d er $ 1 0 , 0 0 0 -------------------- 3 52. 5 10 1 1 1 .2 7 191. 7 58. 7 $ 1 0 ,0 0 0 and u n d er ----------------- 1 4. 4 - - 1 4. 4 $ 1 1 ,0 0 0 ------------------------------------------------------- 1 6. 6 - - 1 A verag e graduated $ 1 1 ,0 0 0 a m o u n t -------------------- $ 5 ,3 1 8 $ 5 , 062 6. 6 $ 5 ,4 1 6 $5, 0 00 -a-year-w o rk er Under $ 2 ,0 0 0 ------------------------------------------- 1 $ 2 ,0 0 0 and under $ 2 ,5 0 0 --------------------- 1 $ 2 ,5 0 0 and under $ 3 ,0 0 0 --------------------- 2 $ 3 ,0 0 0 and u n d er $ 3 ,5 0 0 --------------------- 2 1 .9 30. 2 3. 8 1 1 .9 _ - - 1 1 3 1 .3 1. 5 18. 0 1 $ 3 ,5 0 0 and under $ 4 ,0 0 0 --------------------- - $ 4 ,0 0 0 and u n d er $ 4 ,5 0 0 --------------------- 4 142. 8 1 $ 4 ,5 0 0 and un d er $ 5 ,0 0 0 --------------------- 326. 1 13 $ 5 ,0 0 0 and u n d er $ 6 ,0 0 0 --------------------- 15 22 8 .9 316. 5 599. 0 290. 7 6 5 26. 3 75. 3 1 7. 8 $ 6 ,0 0 0 $ 7 ,0 0 0 - - --------------------- 14 $ 7 ,0 0 0 and u n d er $ 8 ,0 0 0 --------------------- 11 $ 8 ,0 0 0 and un d er $ 9 ,0 0 0 --------------------- 6 215. 9 78. 0 $ 9 ,0 0 0 and u n d er $ 1 0 ,0 0 0 ------------------ 2 1 1 .4 - $ 1 1 ,0 0 0 ----------------- 13 3 2 $ 1 0 ,0 0 0 and u n d er - and u n d er 1 _ 30. 2 1 2. 3 1 13. 3 - - 3 133. 9 2 9. 6 572. 7 16 215. 4 9 10 3 1 .8 208. 1 5 - 4 6 .2 2 1 1 .4 65. 5 10 22. 5 $ 1 1 ,0 0 0 and u n d er $ 1 2 ,0 0 0 ----------------- 5 2 5 4 .9 49. 8 3 189. 4 2 7. 3 $ 1 2 ,0 0 0 and u n d er $ 1 3 ,0 0 0 ----------------- 5 35. 8 - - 5 35. 8 $ 1 4 ,0 0 0 A verag e ------------------------------------------------------g r a d u a t e d a m o u n t 5 ----------------- 1 6. 6 - - 1 on 1 In clu d e s ea rn in g s. 15 1, 2, p ro v id in g 2 3 See See 4 5 In c lu d e s 5 p la n s p ro v id in g S e e fo o tno te 5, ta b le 10. footnote fo o tno te p la n s ta b le ta b le 3; 4. a 295 a flat p la n s le s s e r $ 6, 364 $ 5 , 790 1 1 am ount of b a sic p ro v id e d life am ount fo r in s u ra n c e in su ra n c e wom en fo r and ______________________ 11 _____________________ su p p le m e n ta ry a ctiv e w o rkers. 6. 6 $6, 584 w o rkers. in su ra n c e based 20 T ab le 12. P la n s e x te n d in g life in s u ra n c e am o u n t of in s u r a n c e b e n e f i t to r e t i r e d w o r k e r s p ro v id e d a c tiv e w o r k e r s , (W o rkers e a rly by b a s is of d e te rm in in g sum m er I9 6 0 1 in th o u sa n d s) A m o u n t of life lo ta L B a s i s of d e te r m in in g a m o u n t of life in s u ra n c e fo r a ctiv e w o r k e r s A ll p la n s e x te n d in g lif e re tire d w o rk e rs P la n s W o rkers __ __ __ __ ______________ 189 3 ,1 5 4 .0 14 970. 1 2 ,0 7 7 . 4 10 76 ______________ 99 ____ O ther 1 5 .3 96 468. 7 2 ,0 6 2 .1 3 - 1 5 .3 - 76 1 ,8 1 1 .3 2 4 .4 94. 6 - - 8 2 94. 6 9 1 1 2 1 .8 9 9 .9 95. 3 6 .6 13 1 0 1 .9 4. 6 1 6 .6 12 _ 1 See In c lu d e s p la n s fo o tno te after 1, ta b le 3; re tire m e n t, of s e r v ic e 295 p la n s p ro v id e d a th a t m a in t a in e d the a m o u n t that befo re fo llo w in g w h ic h it w a s re tire m e n t; and p la n s life a reduced; that b e n e fit w orker p la n s extend ed 10. 0 1 in su ra n c e re tire d 24. 4 had that fo r based coverage to a ctiv e b efo re the 4 .6 w o rkers. re tire m e n t am ount fo r after re tire d w o rkers re tire d at age a stip u re tire m e n t for a sp e c ifie d o n ly . 13. A m o u n t of life in su ra n c e p ro v id e d w o r k e rs $ 4 ,0 0 0 and $ 5 ,0 0 0 y e a rly b efo re (W o rkers A m o u n t of in s u r a n c e p ro vid in g p rio r on e a r n in g s Under $500 and under $ 1 ,0 0 0 ------------------------------------ $ 1 ,0 0 0 _________________________ $ 1 ,5 0 0 ___ .. 5 0 1 .3 814. 0 7 5 .6 14 217. 3 15 90. 3 13*8. 7 1 8 2 .6 14 118. 9 4 4 .4 20 5 3 4 2 48. 3 3 .4 50. 9 1 5 .4 $ 2 ,5 0 0 $ 3 ,0 0 0 and under and under $ 3 ,0 0 0 $ 3 ,5 0 0 _____________________ . _ 3 2 $ 4 ,0 0 0 $ 4 ,0 0 0 and under $ 4 ,5 0 0 and under $ 5 ,0 0 0 _ ...... $ 5 ,0 0 0 and under $ 6 ,0 0 0 $ 6 ,0 0 0 $ 7 ,0 0 0 and under and under $ 7 ,0 0 0 $ 8 ,0 0 0 _____________________ $ 8 ,0 0 0 and under $ 9 ,0 0 0 _____________________ $ 9 ,0 0 0 and under $ 1 0 ,0 0 0 $ 1 1 ,0 0 0 2 17. 3 5 6 4 6 9 .6 2 2 6 .5 3 133. 7 2 1 6 .0 3 1 4 1 5 .9 5 1 .2 3 _ 3 0 .0 _ 1 _ _ 1 .9 6. 0 _ _ 1 4 .4 _ _ 1 - 6 .6 - 1 - 6 .6 - 4 31 9 5 7 .2 _____ _ P la n s 70 W o rkers 1, t a b le 3; 1 8 9 p l a n s e x t e n d e d a s u c h a b e n e fit w h e n th e y r e a c h e d after re tire m e n t; e x clu d e s life age sub sequent th ese p la n s w ere not 1 2 .4 1 12. 0 3 19. 3 9 1 .7 1 1 4. 4 6 .6 7 .9 _ _ _ _ _ - 1 4 31 957. 2 4 31 6 .4 6 .6 957. 2 $1, 558 ______________ 1_________________ _______________1 in su ra n c e 70. b e n e fit to w o rk ers re tirin g at age re d u ctio n . E x c lu d e s 3 p la n s w ith 8, 500 w o r k e r s w h ic h d ro p p e d t h e s e p la n s a r e in c lu d e d in the a v e r a g e b e n e fit. T h e am o u n ts p ro v id e d u n der S e e fo o tn o te 5, t a b le 10. 1 9 .2 68. 2 1 5 .0 2 _ 1 3 1 .9 48. 5 7. 5 - 183. 9 2 8 2 3 202. 9 19 8 3 $ 2 , 239 ______________ 1 49 14 797. 8 68. 3 17. 1 $1. 429 ■ 5 0 1 .3 3 2 7. 5 21 10 4 4 2 ,8 9 0 .1 1 8 .9 62. 7 1 9 5 7 .2 3 165 18. 0 22. 2 _ 4 31 $ 2 ,0 1 9 ________________1 Im m e d ia te ly 478. 6 782. 5 90. 6 $ 1 4 ,0 0 0 S e e fo o tno te 186 exten d ed 18 47 5 6 .0 7. 6 ____________________________________________________ _ 7. 5 7 $ 1 1 ,0 0 0 am ount 5 1 9 3 ... .. . O ther 2 ,8 9 8 .6 53 17 $ 4 ,5 0 0 168 7. 5 7 9 7 .2 _ ____ 2 ,8 9 0 .1 4 7 8 .6 _____________________ At age W o rkers 18 $ 2 ,0 0 0 1 and P la n s 1 21 $ 2 ,5 0 0 A verag e W o rkers 3 165 and under $ 1 2 ,0 0 0 P la n s 7. 5 and under and under W o rkers a-year-w o rker A t age 65 2 2, 898. 6 $ 1 ,5 0 0 $ 1 0 ,0 0 0 65 a n d e a r n e d I960 1 $ 5 ,0 0 0 70 1 $ 2 ,0 0 0 and under At age 168 _______________ 50 12 $ 3 ,5 0 0 sum m er to r e t i r e m e n t _ _ and under 70 w h o e a rly an am ount based a lo n e ______ 65 a n d a-year-w o rker A t age 65 2 P la n s a fla t a m o u n t o r at age re tire m e n t, in th o u sa n d s) $ 4 ,0 0 0 ever, 3 1 13 T ab le 65 2 ,6 3 0 .7 66 106. 5 _________ __________ $500 2 175 5 0 1 .4 14 _____________________ P la n s 523. 3 a m o u n t g r a d u a t e d ____ ___________ on y e a r s W o rkers - 2 w o rkers P la n s - __ to e a r n i n g s p e rio d a c tiv e W o rkers 10. 0 1 re tire d w o rk e rs than a m o u n t for 121. 8 __ _____ la te d p e r io d L e ss 9 1 ______________________ ________ A cco rd in g O ther extended ____ and e a rn in g s ______________________ F la t a m o u n t p lu s P la n s 1 ,8 2 6 .6 79 8 2 _________ L e n g t h - o f - u n i o n m e m b e r s h i p _________ S e rv ice in s u ra n c e as fo r to ________________________________ _ _ _ _ -------- ---------- _________ ______ S e rv ice Sam e a ctiv e w o r k e rs _________________________________ F la t am ount _________ G raduated ______ __ E a rn in g s in s u ra n c e total b e n e fit b efo re c o m p u ta b le . w orker reached age 70; how 21 T a b le 14. D isp o sitio n of life and total d isa b ility in su ra n c e p ro v isio n s, (W o rkers b e n e fit u n d e r p e rm a n e n t e a rly sum m er M eth o d of s e ttle m e n t 2 P la n s W orker s 275 4, 1 9 4 .6 p a i d _____________________________ 71 1, 0 6 1 . 8 In in s ta llm e n ts _________________________________________________ I n l u m p s u m ________________________________________________________ 55 796. 8 A l l p la n s w ith p e r m a n e n t and to tal d is a b ilit y p ro v isio n s ______________________________________________________________ F u l l a m o u n t of in s u r a n c e In in s t a llm e n t s o r lu m p su m (w o r k e r 's o p tio n ) -------------------------------------------------------------P o rtio n of in s u r a n c e b a la n ce m a in ta in e d F o r d u r a t i o n o f d i s a b i l i t y ________________________________ F o r sp e c ifie d p e rio d d u r a t i o n o f d i s a b i l i t y ________________________________ sp e c ifie d p e rio d F o r sp e c ifie d p e rio d ; red uced d u ra tio n of d is a b ility of in s u r a n c e ____________________________________ (w o rke r's fo o tn o te 1, 15. re q u ire m e n t w a s E lig ib ility A l l p la n s p ro v id in g d is a b ilit y b e n e f i t s --------------------- -------------- 776. 6 o p tio n ) _.......... _ 3; 2 2 1 .8 2 3 4 4 .2 or ___________ ... , . 295 p la n s 5 p ro v id e d 39. 6 life in s u ra n c e for In these u s e d to c l a s s i f y cases, the lo w e r age or se rv the p la n p r o v i s io n . fo r p e rm a n e n t and to tal d is a b ilit y life e a rly su m m e r I 9 6 0 1 (W o rkers p ro v id in g in th o u sa n d s) B e n e fits a re in su ra n c e a v a ila b le , if d is a b ility perm an ent and P rio r b e n e fit, o ccu rs— to a g e A t any age So 55 65 b e n e fits W o r k e r s P l a n s W o r k e r s P l a n s W o r k e r s P l a n s W o r k e r s P l a n s ;W o r k e r s P la n s total d is a b ility 275 4, 1 9 4 .6 28 764. 1 1 11. 7 194 2, 9 3 1 .4 52 4 8 7 .4 r e q u i r e m e n t s --------------- 257 3 ,7 4 8 . 9 26 1 1 .7 51 4 7 2 .4 - - - 179 2 2 ,5 9 5 .3 123. 9 669. 5 - 1 2 ________ 1 - - 1 - - ___________________ 3 .9 120. 0 - - _________________________________ 14 2 2 7 .2 - - 12 1 1 6 7 .2 - - ______________________ ________________________________ 1 5 y e a r s -----------In su re d 31 — re q u ire m e n t 1 year 484. 4 1 ,2 9 4 .1 o r in su re d coverage S e rv ice ta b le re q u ire m e n ts o r in su re d co v e ra g e re q u ire m e n ts se rv ice 37 w o rkers. P la n s No 13. 5 2 ,5 5 5 . 1 b a la n ce m a in ta in e d sp e c ifie d am o u n t of s e r v ic e . ice S e rv ice 2 189 121 2 U n d e r 26 p la n s , d iffe re n t m e th o d s of se ttle m e n t w e r e p ro v id e d d is a b ilit y o c c u r r e d b e fo re o r a fte r a sp e c ife d age o r w ith le s s than if T ab le See 172. 1 158. 6 am o un t for d is c o n tin u e d , p a id in in s t a llm e n t s O t h e r __ ____ 1 6 fo r d u ra tio n of d is a b ility F u l l a m o u n t of in s u r a n c e a ctiv e 196. 7 4 _______________ F o r m a in ta in e d 68. 3 11 ______________________________________ m a in ta in e d F o r P o rtio n 5 p a id in in s t a llm e n t s , F u l l a m o u n t of in s u r a n c e a I960 1 in th o u sa n d s) __ - - 1 1 2 3 .9 3. 9 - - 1 120. 0 - - - - 13 2 1 2 .2 - - 12 1 6 7 .2 - 1 - 15. 0 - 1 - 15. 0 - - - coverage re q u ire m e n t 1 year 2 years _________ -------- _______________________________ 1 5 .0 - - - - ________ 1 45. 0 - - - - 1 _ _ ________ _____ ________ _ _ — 2 94. 6 2 94. 6 - - - 2 94. 6 2 94. 6 ------------------------------- 6 y e a r s ______________ __ ________ 45. 0 U n io n m e m b e r s h ip re q u ire m e n t ________ 5 years __ ____ __ ‘ 1 See footnote 1, ta b le 3; 295 p la n s p ro v id e d life in s u ra n c e - ' fo r a ctiv e w o rkers. 22 T a b le 16. B a s is fo r d e te rm in in g total am o u n t of a c c id e n ta l death and d is m e m b e r m e n t b e n e fit, e a r ly s u m m e r I9 6 0 1 (W o rk ers B a s is for d e te rm in in g A ll p la n s p ro v id in g W o rkers a c c id e n ta l 162 2 ,3 2 1 .2 _____________________________ 113 1 ,0 3 1 .2 ______ _____ ___________________ 47 1 ,2 8 2 .2 38 1 ,0 7 4 . 1 am ount G raduated P la n s amount _____________________________ d e a th b e n e fit F la t in th o u sa n d s) E a rn in g s ________ ________________ 6 1 8 1 .6 ______ 3 26. 5 ______________________ 2 7. 8 S e rv ice Ea rn in g s and se rv ice F la t am o u n t p lu s a m o u n t g rad u ated a c c o rd in g e a rn in g s 1 that T ab le 17. R e la tio n sh ip ____________ See to footnote p ro v id e d b a sic 1, and and $ 5 ,0 0 0 y e a rly , (W o rk ers B a sis P la n s e a rly 3 p la n s in su ra n c e . of life in s u ra n c e sum m er p ro v id e d w o r k e rs e a rn in g I9 6 0 1 in th o u sa n d s) a m o u n t of a c c id e n t a l d eath b e n e fit g ra d u a tin g b e n e fit $ 5 ,000-a-year w orker w orker W o rkers P la n s P la n s P icm s to e a r n i n g s $ 4 ,000-a-year P la n s p ro v id in g in c lu d e s fo r d e te rm in in g a c c o rd in g A m o u n t of a c c id e n t a l d eath b e n e fit b e n e fit and life 3; o f a c c i d e n t a l d e a t h b e n e f i t to a m o u n t $ 4 ,0 0 0 A ll p la n s ta b le su p p le m e n ta l to d e t e r m i n e a m o u n t of b e n e fit u n ifo rm . b e n e fit W o rkers P la n s u sin g other m ethods lin g a W o rkers P la n s W o rkers a c c id e n ta l death in s u ra n c e 40 __________________ 1 ,0 8 1 .9 40 1 ,0 8 1 .9 112 1 ,0 2 8 . 8 9 208. 1 A c c id e n t a l d e a th b e n e fit w a s — M ore than fa ce L e ss v a lu e of life - - - - 3 9 6 .0 - - - - - - 2 5 1 .0 - - ________________ - - - - 1 45. 0 - - ________________ 27 ________________________________________ in su ra n c e than trip le but m o r e t h a n d o u b l e t h e f a c e v a l u e ______ L e s s th a n d o u b le the f a c e v a lu e Sam e life L e ss life as __ ___________________ the fa c e v a lu e in su ra n c e of ______________ th a n the f a c e v a lu e M ore 13 26 2 8 8 .4 73 604. 9 5 783. 5 14 3 0 6 .0 4' 168. 5 3 165. 5 1 3. 0 _ _ _ - 7 9 3 .5 34 39. 6 5 4 1 .3 6 5 1 .3 13 7 7 2 1 .0 7 7 2 1 .0 7 1 4 4 .0 37. 5 14 124. 5 th a n o n e - h a lf the f a c e v a l u e _____ _ _ _ _ _ _ O n e - h a lf the f a c e v a lu e L e ss 2 9 8 .4 of in su ra n c e ___________ th a n o n e - h a l f the - fa c e v a lu e O ther _ . O ther _ _ _ _ See foo tnote _ 1 2 1 .2 1 2 1 .2 - 1, ta b le 3; 161 - 2 p la n s p ro v id e d life in s u ra n c e and a c c id e n ta l - 21. 9 death b e n e fits. 23 T ab le 18. A m o u n t of a c c id e n t a l d eath b e n e fit p ro v id e d a c tiv e w o r k e r s a fla t a m o u n t, by p la n s p ro v id in g e a rly (W o rkers sum m er in th o u sa n d s) A m o u n t of b e n e fit A ll p la n s p ro v id in g I96 0 1 W o rkers P la n s a fla t a m o u n t of a c c id e n t a l d eath b e n e fit $500 and under $ 1 ,0 0 0 113 ________________________________________ $ 1 ,0 0 0 ____________ 1 ,0 3 1 .2 6 26. 3 28 1 6 6 .6 and under $ 1 ,5 0 0 $ 1 ,5 0 0 and under $ 2 ,0 0 0 ________ 10 55. 3 $ 2 ,0 0 0 and under $ 2 ,5 0 0 ________ $ 2 ,5 0 0 and under $ 3 ,0 0 0 ________ 29 8 2 0 9 .9 157. 3 $ 3 ,0 0 0 and under $ 3 ,5 0 0 ________ 11 143. 7 $ 3 , 500 and u n d e r $ 4 ,0 0 0 *________ 3 $ 4 ,0 0 0 and under $ 4 ,5 0 0 ________ 7 68. 5 87. 7 $ 4 ,5 0 0 and under $ 5 ,0 0 0 ________ - $ 5 ,0 0 0 and under $ 6 ,0 0 0 ________ 10 _________________________ 1 $ 6, 000 and o v e r A verag e f l a t a m o u n t 2 ________________ - 1 0 9 .9 6. 0 $ 2 ,6 9 1 _______ 1________ 1 S ee fo o tno te 1, ta b le 3; 162 p la n s p r o v i d e d a n a c c id e n t a l d e a th b e n e fit. 2 T ab le 19. See fo o tn o te 5, ta b le 10. A m o u n t of a c c id e n t a l d e a th b e n e fit p ro v id e d w o r k e r s $ 4 ,0 0 0 and $ 5 ,0 0 0 in su ra n c e y e a rly a c c o rd in g under p la n s to e a r n i n g s (W o rkers g ra d u a tin g a lo n e , e a rly e a rn in g the a m o u n t of sum m er I9 6 0 1 in th o u sa n d s) $4, 0 0 0 -a -y e a r-w o rk e r $ 5 ,000-a-year-w o rker A m o u n t of b e n e fit P la n s A ll p la n s p ro v id in g an a c c id e n ta l d e a th b e n e fit b a s e d on e a r n in g s U $ $ $ $ n 2 2 3 3 a l o n e ___ 40 d e r $ 2 ,0 0 0 ____________ _______________ ________________ ,0 0 0 and un d er $ 2 ,5 0 0 ,5 0 0 and u n d er $ 3 ,0 0 0 .... ________ _ ,0 0 0 and u n d er $ 3 ,5 0 0 . ,5 0 0 and u n d er $ 4 ,0 0 0 . _ _ _____ . _ $ 4 ,0 0 0 and under $ 4 ,5 0 0 $ 4 ,5 0 0 $ 5 ,0 0 0 and under and under $ 5 ,0 0 0 $ 6 ,0 0 0 $ 6 ,0 0 0 and under $ 7 ,0 0 0 $ 7 ,0 0 0 and under $ 8 ,0 0 0 $ 8, 000 and u n d er $ 9 ,0 0 0 _ ___ __________________________ _ _ _____ 1___________________ _______________________ _ graduated am ount 2 40 1 ,0 8 1 .9 . 3 462. 5 4 4. 8 - 3 122. 6 2 4 2 1 .0 243. 8 10 13 4 6 - 464. 0 - 1 2 1 .4 - - 74. 3 - 102. 8 - 69. 1 68. 8 14 262. 7 - 3 81. 5 5 29. 6 4. 9 - 1 - 1 - 1 ,0 8 1 .9 . 2 4 - r $ 9 ,0 0 0 and u n d e r $ 1 0 ,0 0 0 $ 1 1 ,0 0 0 and u n d er $ 1 2 ,0 0 0 A v erag e W o rkers P la n s W o rkers - 15. 0 - 1 $ 3 ,3 7 3 1 5 .0 $ 3 , 621 1 1 2 See See footnote fo o tno te 1, 5, ta b le ta b le 3; 162 10. p la n s p ro v id e d an a c c id e n ta l death b e n e fit. ☆ U .S . GOVE RN M EN T PRINTING O F F IC E : 1961 O - 597564
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