18
3
13
I0
O_ I'r)
Recent Trends in Employer-Sponsored Coverage
17
CONTENTS 420
19
STATEMENT 14
2316
O_ 721 22 12 15 695
II
Summary of Statement EBRI of Emily S. Andrews
CHARTS PAGE
To evaluate the coverage issue, we need to know how coverage has changed
Research Director, Employee L TABLEBenefit 3 i Research Institute
Table 4
7 TABLE 1
By contrast, firm size combined with the effect of unionization at
Section Page
RECENT would beTRENDS vestedIN (table EMPLOYER-SPOSORED 4). If firms COVERAGE with I00 to 500 employees were as likely
WHO IS NOT COVERED BY EMPLOYER-SPONSORED PLANS
Coverage layoffsMy in and comments large Age /'7 uni today >,onized >, are firms; set within and postrecessionary this framework. pension They should coveragenotwill be
between help President's determine Workers Those May workers C1979 ommiss without whether and ionwho May coverage legisl ocomprise n1983. Pension ativewho An thechange additional Pwere o"ERISA" licy.onhasworkforce the According 3.3 reduced jobmillion less coverage are to even women than that more growth. awere proposal yearlikely employed orThese all who to
over workers the without past fewcoverage years. are The employed coverage byrate smallfellfirms. betweenNonetheless, 1979 and 1983 7 million among
o D Table 2
Chart i Percent Distribution THE DISTRIBUTIONof Employees OF COVERED NOTES ANDLacking NONCOVERED WORKERS 8
nonfarm workers from 61 percent to 56 percent. Declines took place among both
Who is Covered by Employer-sponsored Retirement Plans?
IN THE "NEAR-ERISA" WORKFORCE
EMPLOYMENT, COVERAGE AND VESTING:
INTRODUCTION different Pension firm Estimated size Coverage Changes explains Across in Coverage, 52Employment percentParticipation Categories, of the variation and Vestingin coverage. I
INTRODUCTION to have a pension plan as firms with over 500 workers, there would T-42 be 2.2
be vested in a pension plan. Of the 38 million covered workers in the "ERISA"
rebound. Employment losses resulting from permanent separations in large
will employers usually construed as nonnot agricultural worked would be as available endorsing less have wage th toanuntil contribute any and 1,000particular slate alary hoursa1985 minimum workers. accounted policy and of late for By 3topercent 1986, contrast, another encourage however, of20payroll male percent or because discourage employment onbehalf of all of
workers• or 63Ldpercent of AGES noncovered 25 THROUGH 64 WORKING workers100O in HOURS small OR MORE firms earn $I0,000 or
private sector and government employees. Over the same period the relative
May 1983 if Smaller CUMULATIVE Firms DISTRIBUTION Provided Coverage
The Use of Preretirement Lump-Sum Distributions
I. See "New Survey Findings on Pension Coverage and Benefit Entitlement,"
BY SELECTED CHARACTERISTICS, MAY 1983
fraction of covered workers who are women has increased.
Coverage and vesting are broadly based. Most nonfarm employees work for
FOR NONAGRI to theCULTURAL Same Extent WAGEasAND Larger SALARYFirms WORKERS
WHO Eighty-two IS COVERED percent BY EMPLOYER-SPONSORED of private sectorRETIREMENT employees PLANS working for firms with2 more
million more covered workers and by Purpose 837,000 and moreAmount vested workers. These estimates
more.EBRI Issue Brief 33, August 1984.
coverage workforce, unionized Mr. under Chairm firms 53 percent aemployer-sponsored n,will myalso expect name lead is a pension Emily toretirement falling Andrews. when coverage plans. theyI reach am rresearch ates. retirement. These director losses Another at will the3
edged downward by 278,000 employees in response to the most severe recession
nonco of interview all vered Not Between employees all and workers. 19 workers processing 79over andERISA the are 1983, schedules. age standards covered two of 25 trends bywith state Until an in employer-sponsored one that the coverage year evidence pension of are service plans proves apparent. plan. only and otherwise, 1,000 need Noncovered The credit hours first few
Workers are more likely to become vested as they reach retirement age.
Declining coverage rates may have been caused by the 1982 recession and
0 W
an employer who sponsors some type Covered of1985 pension D[stri- or Workersretirement Distri- plan; 56 percent
ACROSS EARNINGS GROUPS *, MAY 1983
Chart 2 Percent of Nonfarm Workers with Pension Coverage 13
(as Reported May 1983)
Workers but[on Not but[on
generally_.. poor_] economic conditions. An analysis by industry of workers
of 88 million nonfarm workers said they were covered under a plan. Many of
by Sector, May 1979 and May 1983
Cthan overage 500 and employees Earnings have pension coverage. This drops to 23 percent in3 small
since World War II.
are based on ERISA participation (O00's) standards Across before Coveredthe a Retirement Across Equity Act.
million not 2. See be made "Impact workers up, ofexpect however. Retirement to Pension receive Equity coverage aAct," lumpEBRI sum rates Issue distribution. may Brief also 39, fallThis February in boosts industries 1985. the
Employee of employment. Benefit Objections Research to Institute this propos (EBRI). al ranged I am from pleased concerns to appe about ar market before
workers ais anayear lysts the ofoverall can service are beforecasting decline sorted to employees into in the the five whotype coverage work categories of1,000 rate strong hours (chart among growth ornonagricultural I). moreinFifteen under pension thepercent plan. wage coverage and of
Among nonagricultural wage and salary workers a_e 60 to 64, 70 percent in the
meeting ERISA participation standards in 1983 shows the composition of the
these workers expect to receive benefits at retirement. Of the 50 million
Groups (O00's) Groups
Coverage and Age 5
=================================================== ..... ::==:::: ..... :
decline in greater detail. Some industries, like durables manufacturing, had
covered workers, 22 million or 45 percent are eligible for a pension. Another
Cumulative Distribution across Earnings Groups
Chart firms 3employing Percent 99of or Nonfarm fewer Private workers. Statement Employees The oncoverage with Pension rate for private 18 sector
REA changes in participation Total would less increase than vesting $5,000 in - small $i0,000plans - even Over more
WHO IS 0COVEREDFiRM BY SIZE EMPLOYER-SPONSORED b RETIREMENT PLANS
this 3. total The See Usevesting Subcommittee of"Individual Individual rate for during Retirement the Retirement "ERISA" its consideration Accounts work Accounts: force toof6Char 7 percent. the acteristics need for and a national Policy
salary with experienced employment workersbefore from growth 1979. 61 ifpercent employersin 1979'to postpone 56establishing percent in new 1983.pension Declines plans.took
non-covered regul private ation Women's sector and workers employment have individual own vested their gains choice benefits onwere businesses. toand translated concerns 88 percent These about into of self-employed impro the government vements potentialworkers workers in negative coverage can are
Those workers meeting all 1983 participation standards made up the
losses in employment and in pension coverage. Others showed little change in
6 million, or 13 percent of covered workers, expect to receive a lump-sum
WHO IS NOT Cover COVERED L_ssagethan by BY iO0 Firm EMPOYER-SPONSORED employeesSize and 6,215 Unionization, PLANS 17.45 12,352 May 1983 68.15 7
Implications," EBRI Issue Brief 32, $5,000 July 1984. $9,999 $19,999 $20,000
0
employment and IOO little to 499 employees if any coverage 5,54b expansion. 15.6 2,465By contr13.6 ast employment and
distribution from their If Firms plan with when Fewer they Than leave I00their Workers job.'HadEmployees a who expect
employees under a collective bargaining Employment agreement Coverage is 82 percent; Vesting that for
as some workers under age 25 would be vested.
rq CoveraKe Under Employer-Sponsored Plans
retirement income policy.
place Older among both industries private appear sector toandhave government been strongly employeesaffected (chart by 2). layoffs This trend and
effects and remaining vesting. on34the 500percent or The economy, more number employees of all inofgener noncovered female 23,869 al, and wage 07.0 workers. onandsmall 3,314 sal But, ary businesses they earners 18.3 onlyincovered represent particulaby r. 16a
provide entitled retirement to a pension protection or a for lump themselves sum distribution and their from employees their through current Keogh job.
coverage increased in the service sector and coverage rates remained
either type of vested Coverage benefit Ratessumof toFirms 58 percent with I00oftocovered 500 Workers workers.
Characteristics of Noncovered Workers 9
TOTAL RECIPIENTS Total a 6,594 40,702 5,533 i00.0 20,894 583 i@O.0218 154
4. Scale economies in multiemployer plans are explored in Olivia S. Mitchell
r-00
relatively unchanged. i
Most covered workers earn relatively modest salaries. This finding
nonunionized (o00's) employees is 44 percent (chart 3).
The Use of Individual Retirement Accounts Ii
Total Employees Before the U.S. House of Representatives
If increased coverage could be obtained it would be a more effective way
pension Coverage andOneplan Emily and of Earninss increased the S. Andrews, issuesby you 660,000 "Scale have Economies workers, raised is while inthe Private the extent number Multi-Employer to of which womena national entitled Pension
percent Changes permanent Pension in of separations. Coverage total coverage employment. for Women The is widespre proportion A more ad generous throughout of employees definition theworking labor of the for force. core large offirms Most the
Additionally, plans is emerges O ERISA and _ individual UNION from instituted itSTATUS other was retirement pointed statistics individual out accounts. that as retirement well. this The would Another accounts mostonly frequent monthly (lEAs) have helped explanation measure as a means theof 34.4 for the of
Government workers are much more likely to expect only a lump sum
Economic expansion since the May 1983 survey may have produced renewed
seems contradictory since coverage rates increase with earnings. However,
o_
Committee on Education and Labor
Percent (000s)Distribution a 100.0% 88,214 84.2% 49,530 8.9% 3.3%28,708 2.3%
Systems," Industrial and Labor Relations Review 34 (July 1981): 522-530.
Un_on 15,223 38.2 2,163 10.6
growth in coverage. Other 3 evidence suggests that coverage may have been
_,) ,," Increased numbers of
over 76 percent Nonunion of all covered24,62] employees ol.8 and18,15570 percent 59.4 of all vested
RECENT Small, TRENDS nonunionized IN EMPLOYER-SPONSORED firms Suare bco COVER mmi less tt AGEeelikely on to establish pension 12plans.
to increase pension receipt than many other policy options being discussed.
in
to future retirement benefits jumped by 1.2 million as more women accrued the
nonagricultural retirement prevalence percent coverage decreased ofproblem noncovered income of and pensions wage unionization policy in 1983 and persons among should salary would residing employees address declined. include workersinthe workers the was report issue Employers ERISA collected working of who workforce pension metby may for all the coverage. (see an have the Census employer Chart 1974 postponed To Bure I). ERISA who aid au
low savingrates for ofretirement. pension coverage Contributions among thecould self be employed made toisthese that accounts they reinvest on a
distribution, however. Even among those workers age 60 to 64 years of age, 12
affected by Total post-ERISA legislation 40,]C2 such 100.0as ERTA20,894and TEFRA. lO0.0 Statistics for
Older Workers (O00's)
employees earn less than $25,000 a year.
less ALL USES thanb $5,000 100.0% 12.5 100.0% 100.0%5.1 100.0% 1.3 100.0%
Labor-Management Relations
5. See "Pension Accruals for Older Workers," EBRI Issue Brief 35, October
g
1984 and 1985 are needed to determine whether legislative change has reduced
Workers are more likely to be vested as they reach retirement age.
Simple statistics also can be used to demonstrate this fact as well. Less
less 1984. than $I0.000 _kNINGS d 31.6 17.3 8.6
For Industrial instance, Changeincreasing and Pensioncoverage Coverageamong plans with fewer than i00 13workers
their excess funds in their own businesses.
the Congress in its considerations on this subject, I would like to provide o
necessary between participation sponsors establishing One 1979 some years of the new type standards and ofprimary plans service of 1983pension except in as public tothe part qualify orfor policy service retirement ofjob forthe objectives tenure. sector vesting. March plan.during Most supplement inThis providing of the concept these recession totax workers is theadvantages gener Current causing ally will
percentThe Continuing of challenge government concern isworkers toabout devise expect the policies low to receive retirement to only encourage income a lumpexpanded received sum distribution coverage by many
tax deferred basis until retirement age. About 4.4 percent of eligible
coverage growth. Less thanFew $iO,000analysts a4,107 re forecasting 10.4 the 6,711 type 34 of .6 robust growth in
Among workers age Covered 60 Workers to 64, 70 percent 7,5in 75 the private sector have vested
_ _o
CTotal hanges Savin_ in Coverage for Women 32.0% 26.0% 57.6% 78.9% 87.3% 15
Hearings on Employee Benefits and
$10,0OO to $24,999 24,545 62.1 i0,374 53.b
a.._ 00 a.
pension coverage experienced before 1979.
benefits and 88 percent of government workers are entitled to a pension or a
less than than I0 percent $15,000 of workers in firms 53.8 with less39.1than I00 28.5 employees are
would add 92.7 percent more vested workers than five-year vesting. Five-year
to some referred coverage 6. employer-sponsored A information moregrowth to extensive $2b,0OO as the topension based orstagnate. Nmore eeddis plans on for cussion coverage. a asurvey has Nai0,8_6 tion of been al of the In Retirement to individuals 27.5 1983, impensure act 562,309 ofIn percent that c sponsored various ome these Poli II.9 ofc policy ybythe benefits EBRI 88 proposals, and million reach the
compared to 5 percent of employees in the private sector.
Population become without older Three women part producing Survey percent tod of aytheadverse was for ERISA of one all noncovered work indirect ofpersons theforce factors workers effects employed if they which are onatremain workers inled any agriculture. totime onor the their firms. during passage job Their The the for of previous coverage Congress the a year. 1984
noncovered nonagricultural wage and salary workers took advantage of this
Coverage rates fell for both men and women. But declining coverage
TotalParticipants 40,/02 1004, .0738 20,894 I00.0
lump WHAT Retirement less than INFLUENCES sum $20,000 distribution ProgramPENSION COVERAGE? from 4.4 their 70.0 2.4 current job._59.0 Coverage_ 49.8 from 16 previous
March 21 and April 2 and 3, 1985
including quicker vesting, will be found in Emily S. Andrews, The Changing
affected men to a greater extent. The number of women workers grew between
unionized. .4-_ Seventy-two p.. percent of unionized workers in firms with less than uJ
employment Insurance less than $25,000 Annuity could increase _retirement82.8_income. However, _76.2 most _ 7employees 0.2 (71
vesting would include more additional vested workers than a combination of
WHAT INFLUENCES PENSION COVERAGE?
year. option Profile Declines It in 1978. indicates AGE of Pensions in employment gradual in America reductions during (Washing the in1982 ton, the recession number D.C.: of EBRI, reinforced workers forthcoming whomany haveof 1985). been the
nonagricultural U.S. employees In Retirement this Department Coverage case across Equity - from the wage of which Act.He income previous alth and Lower we spectrum. will and salary coverage employment Human call workers Employer-sponsored the and Services vesting "near-ERISA" could reported inalso rates May workforce-- coverage pensions increase for 1983.womenThis are were retirement under thefocused survey cited core an
will rate have is theto lowest decide ofwhat all level noncovered of retirement groups atprogram just over coverage I0 percent. it thinks Many is
1979 and 1983 while the number of men shrank. As a consequence, 39 percent of
Vested Workers 3,575
percent) Housing The Potential Purchase spend Effect lump sum of Policy distributions I0.i Changes 9.3they receive 12.5 before retirement _ 17instead
Less than 35 14,588 35.8 9,095 43.5
covered workers were women in 1979 compared to 42 percent in 1983. The
35 and over 2_,133 64.2 11,800 56.5
of Other 500 less saving employees than Investment them. $30,000are covered 16.8 by a pension 89.8 14.0 of plan, compared 29.985.4 to 45.9 only 81.2 28 percent of 0
expanded participation options including the recently enacted Retirement
employer-sponsored plan.
provides on long-term workerstheshifts inmost the middle comprehensive away from of the certain information earnings sectors distribution. on ofcoverage durablesavailable. manufacturing. Some
desirable, and feasible, and at what price to employers, employees, and the
coverage agricultur participants income. as reasons alproblem Infor 1983, employees in legisl aconsists pension 18ation. percent are of pl low-wage aAmong n21 of for m[|lion the nonagricultural se each "ERISA" asonal workers and workers, workforce, every orwage year. 21 employed and percent or salary (Participants abouton of workers I0 more themillion labor than are in
The 1981 Economic Recovery Tax Act (ERTA) expanded IRA participation to
Total 40,702 I00.0 20,894 lOO.0
O
coverage rate for womenIf isFirms stillwith lower I00 than to 500 thatWorkers for men, Had bhowever.
NOTES less than $50,000 98.0 97.1 96.0 22
IB Emily S. Andrews
nonunion workers HOURS in Coverage such firms. Rates ofThe Firms difference with overin500 coverage Workers between unionized
Who Totalis CNot onsumption Covered by Employer-sponsored 71.4% 76.6%Plans 51.9% 42.6%
force. Equity Act, proposals to include Researmore ch Dir part-time ector workers and proposals to
4.0 L_
Another I plan tolabor discussforce four group topics ofin relevance my testimonyto today: the Congress consists of
federal nondurable Most government. studies goods manufacturing have I hopenoted the that industries, information the coverage such we have asrate chemicals provided increases can and strongly help apparel, you meet with also
one workers employees 1983,farm. Whether 59whose percent They reported employer an frequently ofemployee cover allsponsors age men facewere has under aacomplex employer-sponsored covered plan an employer-sponsored andset bywhoof a pension are other included coverage labor plan pension market in compared that depends onproblems. plan.) an to earlier only on the 52
virtually all workers. While it is not clear whether the wider visibility of
What InfluencesLess Pension than 2000 Coverage? 7,525 18.5 5,481 26.2
Car Purchase 4.8 4.8 _ _
Total Earnings 100.0% 100.0% 100.0%
Employee Benefit Research Institute
2000 and over 33,1/6 81.5 15,413 7].8
and nonunionized firms diminishes as the size of the firm increases. In the
Vacation Noncovered workers can3.2be sortedTABLES 3.1into five _categories. * Fifteen percent
include older workers within 5 years of retirement. If the likelihood of
non that suffered agricultural challenge. o Who employment Total is covered employees losses by age employer-sponsored during 25 40,702to the 64 iO0.O working 1982 retirement recession. 20,894 I000 hours plans; I00.0Inormany more cases who have the
earnings. Although the majority of workers in the middle of the earnings
characteristics percentNearly Theof second all 25 women. percent oftrend the workplace About of is all the50noncovered increase percent and the of in characteristics workers all the men relati incovered v1983 e of proportion were by the aunder employee. pension of 25 years women plan As
job. 1RAs led About to6.6greater million IRAhad usage either among cashed noncovered out their workers, benefits their through IRAa
Increased numbers ofd
Whether an employee has employer-sponsored coverage depends on the
of Other noncovered Use workers are63.4 self-employed. 68.7 These 40.9workers appear * to reinvest
_Percentages L_ exclude 9.0% of employees whose 0earnings are not reported. o L
SEX
characteristics of the workplace and characteristics of the employee. A
Older Workers (000's)
......................................... case of larger corporations, the difference is quite small. ________ The most likely
their Table coveragesavings i Employment, among infirms theirCoverage with own i00 businesses andtoVesting: 500 workers insteCumulative ad. could Threeincrease percent toofthanoncovered t 4of the
Characteristics _C_0 of Noncovered Workers El3 _.0
o Who is not covered by employer-sponsored plans;
worked distribution number lump-sum on ofdistribution covered theirarejobs workers covered or for were at was under least entitled reduced aa pension year. and to retirement coverage This plan,group rates benefits. coverage isfell. called rates Employment the incre "ERISA" aand se
were we of amonghave age. entitled covered seen, This Wom_nworkers. some toage benefits workers groupAlthough was are at 16,335 not retirement more coverage subject likely 40.1 rates compared to than9,932 ERISA fell others tofor particiption 38to 47.5 both percent be men covered and of standards women. women, by an
participation rate for 1982 rose to 12.3 percent of all noncovered employees.
statistical analysis undertaken by EBRI shows that four factors more closely
workers are Distribution in agriculture. for Nonagricultur These workers al Wageareandseasonal Salary and have a number of
Men 24,367 59.9 i0,963 52.5
a Recipients by lump sum amount are less than total recipients and
related to the Totalemployee-- age, hours 40,/O2 of i00.O work, job 20,894tenure I00.0 and wages -- account
Covered Workers 2,248
explanation for the effect of unionization on coverage is the ability of
other percent employment Workers ages Across are problems. less Earnings thanTwenty-seven I00 Groups, percent Maypercent because 1983 ofof noncovered the omission workers of "don't are
largest firms, the number of new vested workers would virtually equal the
o Recent trends in employer-sponsored coverage; and
work gradually employer-sponsored declining pensionforce coverage from cobecause verage 58inpercent pl the affected the an. workers service-producing for A men number those meet to earning of aERISA greater staindustries tistical standards between extent. $i0,000 etechniques xfor panded The planand number between participation. are $14,999 available of 1979women to and 79
according to the 1974 law. Young workers are more likely to have short years
The While 17Over these percent 70figures percent IRA pare articip of higher all ation employees for rate the receiving for "ERISA" all nonfarm workforce, preretirement employees significant cash inouts 1982 gaps spent was in
for 32 percent of the variation in coverage. Industry differences account for
under know" age 25andor "no age response" 65 and over. to theThrough survey the question Retirement on the Equity valueActof (REA) the
TENURE e
another 17 percent Participants of the variation. 1,298
multiemployer lump-sum Lessdistribution. plans than 5 to years bring economies 10,613 28.0 of scale 8,328 into pension 51.3 investment and o
Teffect able 2ofThe a shift Use oftoPreretirement seven-year vesting. Lump Sum Distributions 6
employers will have to include 583,000 additional younger employees in their
which oshowWhattheinfluences impact ofpension differences coverage. in one factor from the effects of other
The percent workers 1983,"ERISA" Noncovered however. grew for workforce those between workers In some earning 1979 is in sectors, more and the between likely "ne 1983 the ar-ERISA" while to $20,000 number build the work ofand upnumber covered force meaningful $25,000. of differ workers menemployment-based Coverage from shrank. did those not rates As keep whoa
these coveragedistributions and expectedinstead benefitof saving receipt them remain. (table But 2). these The uses gaps individuals have been
of higher service than andthatto for work noncovered part-time schedules. workers. Lower EBRI use has estimated rates may thsimply at lowering be a
L ;,
5 to 9 y_ars 9,734 25,2 3,958 24.4
The major difference in coverage rates stems from only two sources --
by Purpose and Amount (as Reported May 1983)
pension plans. Only time will tell whether more young workers will seek
b Percentages may add to over i00 percent because recipients may have used
Ten y_ars and over 12,51d 46.3 3,830 23.6
0 _ 'c
Vested Workers 837
firm administration. size and unionization. Large firms, whether or not unionized, usually
lump sumTotal distribution in more 3_,017than one [O0.O way. 16,110 10O.0
employersThiswhodoes provide not imply pensions. that issues other than coverage are not important.
approach 85 percent for those earning $50,000 and over.
pensions pace related closingEBRI with slowly. factors. atwas employment retirement. formed We have in growth The used 1978 coverage and one as atechnique coverage non-profit, rate rates cfor allednon-partisan, these fell. "analysis 56 In million of other public variance" employees sectors, policyto
are consequence, the minimum covered age (table 42 percent standard 3). ofNoncovered through covered the workers workers Retirement were are much women Equity more in 1983 Act likely will compared tomean work tothat in 39
make resultof hofpreretirement 0lower earningsdistributions among noncovered are strongly workers, affected lEA usage by the among amount noncovered of the n
have Table pension 3 The plans. Distribution The coverage of Coveredrate and for Noncovered firms with Workers more than 500 employees I0
Number Workers ofwithout workers cover too asmall ge who for were rates onto the be cajob lculated less reliably. than a year or who
==========================================================================
is 82 percent. That for firms with fewer than i00 employees is 23 percent.
There hasinbeen the recent "Near-ERISA" policy Work interest Force, inAges other25 areas throughcovered 64 by ERISA such as
usually The reached views worked 70 expressed percentlessinthan in May this 1983. 1,000stahours tement account are solely for another those of 20 the percent author of and all
research determine including Another organization professional which way to characteristics examine toservices conduct the and distribution research arefinathe nciaand l most ofeducation seremployees vices, important al coverage entitled programs. determinants expanded to EBRI pension of is at
cash workers percent small sponsoring out. The firms is inone certainly 1979. Eighty-seven employers with constant The fewer not coverage will development than higher percent have I00 rate than ofemployees for tofor those average, women include women receiving (68 in however. (52an the percent percent) additional workpl over aversus ce $20,000 is still over 583,000 17 saved the percent lower past young their than of I0
m
a[nctudes workers with no coverage, workers who do not know whether they
aEstimates of increase in coverage for firms with less than i00 workers
The coverage rate for private sector employees under a collective
noncovered Working workers.I000 Those Hours who or More met all by Selected 1983 ERISACharpaacteristics rticipation standards make
have coverage and workers with no coverage information reported.
should not be attributed to the Employee Benefit Research institute, its
5 6
2
based on a simulated increase in the rate of covered workers to employees from
bargaining The PotentiMay alagreement 1983 Effect ofisPolicy 82 percent; Chanses that for nonunionized employees is 44
Og') © •
post-65 accruals, vesting standards and pension integration.
up offi committed thatthe cers, forrem men atrustees, by ining (59 charter percent). 34 sponsors, to percent the premise of or other all that noncovered stathe ff. nation The workers. Emplo is yserved ee They Benefit inrepresent social Researand ch16
covered benefits about Many theworkers). is same covered through pace workers, They and statistics rates are whether remained lesson likely the or relatively not cumulative to they work are constant. distribution under in the a"ERISA" union of employment workforce, contract.
differences years has been in pension that of coverage change. among The percentage private sector of women employees. 20 years According of age and to
employees retirement in funds. their Only pension 26 percent plans. of Only those time receiving will tell less whether than $5,000 many added more
lEA usage among covered workers may be boosted by the availability of
28.8 to 51.0 bpercent percent. ages exclude The 12. ratio 1 percent of participants of employees for to whomcovered firm sizeworkers is not declines
Z LO o
percent. Small firms that are unionized are more likely to provide coverage
knowlq.
percent Instituteof is total a non-profit, employment. non-partisan public policy research organization
from 75.5 to 69.9 percent in the simulation and ratio of vested workers to
than small nonunionized firms.
),, __
Table 4 Estimated Changes in Coverage, Participation and 19
eNonetheless, xpect Noncovered to receive effective workers benefits policy meetingattoERISA retirement. improve participation coverage Of the standards would 50 increase million (or whocovered pension could
aeconomic andspecification coverage Economic terms byexpansion byearnings which the existence determines since groups. theof May Nearly the employee 1983 independent 83survey benefit percentmay effect programs. ofhave allof produced nonWe each agricultur areset renewed awa are lof
young payroll older workers working deduction will at pplans aseek id employment employers and employer-sponsored who grewprovide by nearly pension IRAs. I0 percentage plans When lEAs as well. are pointsoffered from at 43
Noncovered these distributions workers also to tend their tosavings. have lowerIn easum, rnings a and substantial shorter job portion tenure.of
participants These figures increases suggest f_om 74.2 that toif 74.7 policies percent.couldThese be divised changes which are applied would
Vesting if Smaller Firms Provided Coverage to the
expect to meet those standards) are different from those who are covered.
Clncludes workers who are not covered by _ unLorl c_.nt['ac[, workers who do
0 _ Ld
increase to imputed EBRIthestatistics data extent on ofpension suggest coveragethat status among if to policies small best firms, represent could many be devised actual more workers which numberswould would of
not know whether they are covered under a u[lion con' ['