Facts on how American Employers Support their Workers 2009

• Employers spent $7,810.7 billion on total compensation in 2007.  Wages and salaries accounted for $6,355.7 billion. 
• Employers spent $1,454.9 billion on employee benefits in 2007, or 18.6% of total compensation. 

Health Benefits

• In 2007, according to Census Bureau data, 177.4 million Americans received their health insurance from employment-based coverage (this includes state and local government employers). The Henry J. Kaiser Family Foundation has estimated that as of 2006, 158 million Americans received private sector employer-sponsored coverage.
• Employers spent $532.1 billion for group health insurance in 2007, and a total of $623.1 billion for all health benefits.
• In 2007, 62.2% of the non-elderly (under the age of 65) were covered by employment-based benefits, and 70% of working Americans had private employment-based health coverage.  
• The total cost of health benefits for active employees in 2008 averaged $8,482 per employee.
• Employers are using cost containment strategies to lower costs.  Among employers with 500 or more employees offering a health management program, 26% gave their employees an incentive to participate, up from 23% in 2007.
• In 2008, employers offering account-based, high-deductible consumer-directed health plans continued to climb.  Among employers with 500 or more employees, offerings jumped from 14% to 20%. 

Retirement Benefits

• Private employers spent $199.9 billion on retirement income benefits in 2007.
• 401(k) plans are tremendously popular with employees – 81.9% of eligible employees participate in their 401(k) plan.
• 30.3% of plans permit Roth 401(k) contributions. 12.6% of those eligible are doing so. 
• The average employer contribution to 401(k) and profit sharing retirement plans was 4.4% of payroll. 
• Most companies encourage catch-up contributions for participants aged 50 or older who participate in either a 401(k) or a profit sharing plan. Catch-up contributions for participants aged 50 and older are permitted in 99.1% of these types of plan, and 33.5% of these plans offer a match on the catch-up contribution.
• For both 401(k) and profit sharing plans, the number of funds offered to plan participants increased from an average of 18 funds for participant contributions, up from 17 funds in 2003.
• Immediate vesting is present for matching contributions in 43.6% of both profit sharing and 401(k) plans.
• By 2008, 55.1% of all plans and 70.5% of plans with 1,000 or more employees now permit immediate participation in their 401(k) programs, up from 24% of plans in 1998.
• Defined Benefit retirement plans cover 43.8 million participants.  Defined Contribution plans have been on the rise, and now cover 79.8 million participants, up from 47 million in 1995.

Other Benefits

• Paid leave is one of the most common benefits offered by employers – over three-fourths of employees (including part-time workers) receive paid time off. 

• Life insurance is offered to over half of all employees in private industry. 
• Over 60% of employers with over 100 employees provide both undergraduate and graduate educational assistance to workers.
• 9,375 employers offered domestic partner benefits, including a majority (286) of the Fortune 500.