TEXT Table 1. Full-time employees participating in selected employee benefit Table 2. Full-time employees eligible for selected employee benefit programs, Table 3. Part-time1 employees participating in Table 4. Part-time1 employees eligible for selected Technical data: (202) 606-6222 USDL 92-764 Media contact: (202) 606-5902 FOR RELEASE: 10:00 FOR RELEASE: 10:00 EST WEDNESDAY, DECEMBER 9, 1992 BLS REPORTS ON EMPLOYEE BENEFITS IN MEDIUM AND LARGE PRIVATE INDUSTRY ESTABLISHMENTS, 1991 The U.S. Department of Labor's Bureau of Labor Statistics today reported on results of its 1991 Employee Benefits Survey in medium and large private industry establishments (those with 100 workers or more). The survey provides information on the incidence and characteristics of employer-funded benefits for 31 million full-time employees -- about the same coverage as a similar survey in 1989. The 1991 survey also provides first-time data on benefits for 5 million part-time workers in medium and large establishments. BENEFITS FOR FULL-TIME EMPLOYEES As in past years, a large majority of full-time workers in medium and large private industry establishments in 1991 were provided paid holidays and vacations, life and health insurance, and retirement benefits. The 1991 survey sheds light on recent trends in aspects of these and other employee benefits. These recent developments are summarized below. Health Benefits In 1991, approximately four-fifths of full-time employees in medium and large private establishments participated in employer-provided health care plans, down from about nine-tenths in 1989. (See tables 1 and 2.) This drop was not the result of a decline in the availability of employer-provided plans. It occurred because of a decrease in participation among those workers offered health care benefits. The participation decline coincided with an increase in the percent of workers required to contribute toward health care plan premiums. For the first time since the survey began in 1979, more workers were covered by plans that required an employee contribution (for both individual and family health care coverage) than were in plans that were wholly financed by the employer. Employers paid all health care premiums for nearly one- half the participants with individual coverage, and for about one-third of those with family coverage. When employee contributions were required, such contributions averaged $27 per month for individual coverage and $97 per month for family coverage. (This was an increase from $25 and $72, respectively, in 1989.) Contributions varied by plan type, with participants in health maintenance organizations (HMOs) more often required to contribute than participants in fee-for-service plans. About nine-tenths of the full-time employees who received employer-provided health care benefits in 1991 were covered by "managed care" provisions -- measures aimed at controlling health care usage and cost. One third of full- time workers with health care benefits were covered by non- traditional health care plans, that is, HMOs or preferred provider organizations (PPOs), designed to limit health care costs. Nearly all employees covered by traditional fee-for- service plans were also subject to features designed to hold down health care costs and usage. HMOs, which covered one-sixth of full-time workers with health care benefits, provide prepaid services to patients from a selected group of doctors and facilities. Care is often free of charge or is available for a small fee, usually $10 or less. A point-of-service option, available to a few workers covered by HMOs, allowed patients to seek care from a doctor or facility not affiliated with the HMO. In such cases, the patient paid a share of the cost of care. PPOs are a type of fee-for-service plan that offers individuals a limited choice of health care providers. Nearly non-existent 5 years ago, these plans in 1991 covered about one-sixth of full-time workers with health care benefits. If the individual chooses a doctor, dentist, hospital, or other facility not on the preferred provider list, the plan pays a smaller share of the cost. Fee-for-service plans, which covered two-thirds of full-time workers with health care benefits in 1991, are the traditional means of providing coverage. Individuals receive medical care from doctors and facilities that they choose; the plan reimburses either the provider or the individual for some or all of the cost. Nearly all the workers covered by such plans, however, were required to seek approval from their plan before certain types of health care services were received. Such approval, broadly termed managed care, typically includes requirements for plan certification prior to hospitalization and second surgical opinions. When such requirements are not adhered to, the plan reduces or eliminates payments. Family-Related Benefits The care of family members was addressed by medium and large private employers in a number of ways in 1991. Parental leave plans provide time off for mothers and fathers to care for newborn or newly adopted children. Such plans, as defined for the survey, are separate from vacations, which also may be used for parenting purposes. Nearly two-fifths of full-time employees had unpaid maternity leave available, with the maximum leave averaging just over 5 months. One-fourth of full-time employees had unpaid paternity leave available. Paid parental leave was rare. Nearly one-tenth of full-time employees were eligible for child care benefits subsidized by their employer. This benefit includes both on-site or near-site child care facilities and reimbursement of employee child care expenses. A more prevalent means of assisting employees with child care expenses was through reimbursement accounts, which typically cover dependent care, health care premiums, or out-of-pocket health care expenses. Slightly over one- third of full-time employees were eligible for such accounts, often funded solely by employee pre-tax dollars. Flexible benefits plans, also known as cafeteria plans, covered one-tenth of full-time employees. These plans allow employees to choose among levels of coverage in two or more benefit areas, most commonly health care, life insurance, and disability benefits. The survey also included information on flexible work schedules. One-tenth of full-time workers had formal flexible work arrangements, which give employees the opportunity to begin and end work within a range of hours, thereby helping to accommodate family commitments. Limits on the amount of flexibility vary from plan to plan, but generally employees must be at work for a core of hours during mid-day. Medium and large private employers also offered a variety of other benefits. Employee assistance programs, which provide counseling and referral services for substance abuse, family, financial, legal, and related problems, were available to just over half of full-time workers. Wellness programs, designed to encourage healthier lifestyles, were available to approximately one-third of full-time workers. These programs typically include health screenings, smoking cessation classes, and guidance on healthier diets. Defined Contribution Plans Nearly half of full-time employees participated in one or more defined contribution plans in 1991. These plans, which usually specify the employer's contribution but cannot predetermine the employee's actual amount of benefits, include savings and thrift (covering about three-tenths of full-time workers), deferred profit-sharing (one-sixth), and money purchase pension and stock ownership plans (each less than one-tenth). Most defined contribution plans required employee contributions; one-third of participants were in plans wholly financed by the employer. Just over two-fifths of the full-time workers covered by the survey participated in 401(k) plans (also known as cash or deferred arrangements), which permit pretax employee contributions. Most of these plans were salary reduction plans, allowing employees to reduce their taxable income by making voluntary contributions that are not taxed until withdrawn from the plan. For example, savings and thrift plans commonly allow participants to make pretax savings, some or all of which are matched by the employer. Defined Benefit Pension Plans Defined benefit pension plans, which specify a formula for determining an employee's annuity, covered about three- fifths of full-time workers in 1991 -- 18 million workers. For the first time, survey data are available on the "portability" of pension benefits, that is, the ability to move accumulated benefits from one employer to another. In 1991, one out of ten full-time employees with a defined benefit pension plan were covered by a portability provision. Most of these participants were covered by either a multiemployer plan established by a union or a single employer plan offered by an establishment with a portability agreement with related establishments, such as in the utilities industry. If an employee moved to another employer, benefits from the prior employer, usually in the form of years of credited service, were transferred. BENEFITS FOR PART-TIME WORKERS For the first time, the Bureau's data on the incidence and details of employee benefits in medium and large private establishments include information on part-time workers. Paid vacations, holidays, and rest time were the most prevalent benefits available to part-time workers. (See tables 3 and 4.) Because of the limited incidence of benefits among part-time workers, detailed plan provisions could not be examined to the same extent as for full-time workers. About half of part-time employees in medium and large establishments in 1991 received paid vacations and paid holidays. When these benefits were provided, they were typically similar to those of full-time workers, but prorated based on the work schedule of the part-time employee. Health care and defined benefit pensions were available to just over one-fourth of part-time employees. TECHNICAL NOTE The Employee Benefits Survey (EBS) data are collected jointly with the Bureau's Employment Cost Index (ECI). The ECI provides quarterly data on the change in employer's cost of wages, salaries, and employee benefits. In addition, data on the cost per hour worked of compensation components are published annually from the ECI. The sample of establishments from which EBS and ECI data are collected is updated periodically. Each year, new sample establishments in selected industries are introduced into the survey, while older sample establishments are removed from the survey. Benchmark adjustments were applied to the data to estimate current employment in each industry. More details on sampling and estimation procedures will appear in the Technical Note to Employee Benefits in Medium and Large Private Establishments, 1991, which will be published soon. Completion of the 1991 Employee Benefits Survey represents the last step in a planned expansion of BLS employee benefits data. Benefits data are available for all covered employees combined and separately for three broad occupational groups: Professional, technical, and related employees; clerical and sales employees; and production and service employees. Definitions of these occupational groups may be found in the tables at the end of this release. Data are also available for full time and part time employees. Workers were classified as either full-time or part-time in accordance with practices of surveyed establishments. The Employee Benefits Survey is collected on a two-year cycle. During 1992, data are being collected on benefits provided to workers in small private establishments (those employing fewer than 100 workers) and State and local governments. The survey of medium and large private establishments will be conducted again in 1993. Availability of Survey Results Detailed tabulations of the benefit provisions, in addition to estimates of sample error on all data, are currently being developed. Upon completion of a thorough analysis of these data, the results will be published in a BLS bulletin, Employee Benefits in Medium and Large Private Establishments, 1991. Benefits data for employees in small private establishments (those employing fewer than 100 workers) are currently available in Employee Benefits in Small Private Establishments, 1990 (Bureau of Labor Statistics, Bulletin 2388, September 1991). Data for government employees are available in Employee Benefits in State and Local Governments, 1990 (Bureau of Labor Statistics, Bulletin 2398, February 1992). Combined 1989-90 data for the three surveys, which provide information on benefits provided to all full-time workers in private industry and State and local governments, are available by request from the Office of Compensation and Working Conditions, Employee Benefits Survey, 2 Massachusetts Avenue NE, Room 4160, Washington, D.C. 20212. Table 1. Full-time employees participating in selected employee benefit programs, medium and large private establishments, United States, 19911 (In percent) _______________________________________________________________________________ | | | | | | |Professional,| Clerical |Production| Employee | All | technical, | and | and | benefit |full-time|and related | sales | service | program |employees| employees2 |employees3|employees4| | | | | | | | | | | Paid time off | | | | | Holidays ......................| 92 | 93 | 94 | 90 | Vacations .....................| 96 | 97 | 98 | 95 | Personal leave ................| 21 | 29 | 26 | 13 | Lunch period ..................| 8 | 5 | 4 | 11 | Rest period ...................| 67 | 58 | 67 | 71 | Funeral leave .................| 80 | 84 | 82 | 77 | Jury duty leave ...............| 86 | 92 | 88 | 82 | Military leave ................| 54 | 63 | 56 | 48 | Sick leave ....................| 67 | 87 | 82 | 48 | Maternity leave ...............| 2 | 3 | 2 | 1 | Paternity leave ...............| 1 | 1 | 1 | (5) | | | | | | Unpaid time off | | | | | Maternity leave ...............| 37 | 43 | 38 | 33 | Paternity leave ...............| 26 | 31 | 26 | 23 | | | | | | Insurance | | | | | Sickness and accident | | | | | insurance ...................| 45 | 32 | 35 | 57 | Long-term disability | | | | | insurance ...................| 40 | 61 | 49 | 24 | Medical care ..................| 83 | 85 | 81 | 84 | Dental care ...................| 60 | 67 | 60 | 57 | Life insurance ................| 94 | 98 | 95 | 92 | | | | | | Retirement | | | | | All retirement6 ...............| 78 | 83 | 77 | 75 | Defined benefit pension .......| 59 | 60 | 56 | 59 | Defined contribution ..........| 48 | 57 | 53 | 39 | Uses of funds: | | | | | Retirement7 ...............| 39 | 48 | 44 | 31 | Capital accumulation8 .....| 10 | 10 | 10 | 9 | Types of plans: | | | | | Savings and thrift ........| 29 | 38 | 35 | 20 | Deferred profit sharing....| 16 | 13 | 16 | 18 | Employee stock ownership...| 3 | 4 | 4 | 2 | Money purchase pension ....| 7 | 11 | 7 | 5 | Stock bonus ...............| (5) | (5) | (5) | - | | | | | | 1. Except for maternity and paternity leave, benefits paid for entirely by the employee were excluded from the tabulations. 2. Includes professional, technical, executive, and administrative occupations. 3. Includes clerical, administrative support, and sales occupations. 4. Includes production, craft, repair, laborer, and service occupations. 5. Less than 0.5 percent. 6. Includes defined benefit pension plans and defined contribution retirement plans. Some employees participated in both types of plans. 7. Includes money purchase pension, deferred profit sharing, savings and thrift, stock bonus, and employee stock ownership plans in which employer contributions must remain in the participant's account until retirement age, death, disability, separation from service, age 59-1/2, or hardship. 8. Includes plans in which participants may withdraw employer contributions from their accounts without regard to the conditions listed in footnote 7. NOTE: Dash indicates no employees in this category. Table 2. Full-time employees eligible for selected employee benefit programs, medium and large private establishments, United States, 19911 (In percent) _______________________________________________________________________________ | | | | | | |Professional,| Clerical |Production| Employee | All | technical, | and | and | benefit |full-time|and related | sales | service | program |employees| employees2 |employees3|employees4| | | | | | | | | | | Flexible benefits plans .......| 10 | 16 | 10 | 6 | Reimbursement accounts ........| 36 | 48 | 40 | 26 | Employer-subsidized child care | 8 | 11 | 9 | 5 | Flexible work arrangements ....| 9 | 15 | 12 | 4 | Employee assistance programs ..| 56 | 64 | 56 | 51 | Wellness programs .............| 35 | 47 | 34 | 28 | Long-term care insurance ......| 4 | 6 | 5 | 2 | Eldercare .....................| 9 | 11 | 12 | 6 | | | | | | 1. In some cases, benefits are paid for entirely by the employee, but are paid with pre-tax dollars or at group insurance rates. 2. Includes professional, technical, executive, and administrative occupations. 3. Includes clerical, administrative support, and sales occupations. 4. Includes production, craft, repair, laborer, and service occupations. Table 3. Part-time1 employees participating in selected employee benefit programs, medium and large private establishments, United States, 19912 (In percent) _______________________________________________ | | | | | | | Employee | All | | benefit |part-time| | program |employees| | | | | | | | Paid time off | | | Holidays ......................| 47 | | Vacations .....................| 55 | | Personal leave ................| 10 | | Lunch period ..................| 2 | | Rest period ...................| 56 | | Funeral leave .................| 39 | | Jury duty leave ...............| 45 | | Military leave ................| 14 | | Sick leave ....................| 30 | | Maternity leave ...............| 1 | | Paternity leave ...............| (3) | | | | | Unpaid time off | | | Maternity leave ...............| 19 | | Paternity leave ...............| 14 | | | | | Insurance | | | Sickness and accident | | | insurance ...................| 19 | | Long-term disability | | | insurance ...................| 3 | | Medical care ..................| 28 | | Dental care ...................| 18 | | Life insurance ................| 31 | | | | | Retirement | | | All retirement4 ...............| 40 | | Defined benefit pension .......| 28 | | Defined contribution ..........| 20 | | Uses of funds: | | | Retirement5 ...............| 18 | | Capital accumulation6 .....| 2 | | Types of plans: | | | Savings and thrift ........| 8 | | Deferred profit sharing....| 10 | | Employee stock ownership...| (3) | | Money purchase pension ....| 4 | | Stock bonus ...............| - | | | | 1. Employees are classified as part-time in accordance with practices of surveyed establishments. 2. Except for maternity and paternity leave, benefits paid for entirely by the employee were excluded from the tabulations. 3. Less than 0.5 percent. 4. Includes defined benefit pension plans and defined contribution retirement plans. Some employees participated in both types of plans. 5. Includes money purchase pension, deferred profit sharing, savings and thrift, stock bonus, and employee stock ownership plans in which employer contributions must remain in the participant's account until retirement age, death, disability, separation from service, age 59-1/2, or hardship. 6. Includes plans in which participants may withdraw employer contributions from their accounts without regard to the conditions listed in footnote 5. NOTE: Dash indicates no employees in this category. Table 4. Part-time1 employees eligible for selected employee benefit programs, medium and large private establishments, United States, 19912 (In percent) _______________________________________________ | | | | | | | Employee | All | | benefit |part-time| | program |employees| | | | | | | | Flexible benefits plans .......| 2 | | Reimbursement accounts ........| 11 | | Employer-subsidized child care | 5 | | Employee assistance programs ..| 31 | | Wellness programs .............| 16 | | Long-term care insurance ......| 1 | | Eldercare .....................| 4 | | | | 1. Employees are classified as part-time in accordance with practices of surveyed establishments. 2. In some cases, benefits are paid for entirely by the employee, but are paid with pre-tax dollars or at group insurance rates.