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Employee Benefits Survey
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Table 12. Traditional defined benefit plans: Terminal earnings formulas, private industry workers, 2017
(All workers participating in traditional defined benefit plans with a terminal earnings formula = 100 percent)
Characteristics Flat percent per year of service Flat percent per year of service(1) Percent per year varies Percent per year varies by
10th percentile 25th percentile 50th percentile (median) 75th percentile 90th percentile Service Earnings Earnings and service Other

Worker characteristics

All workers

 51 1.00 1.25 1.60 1.67 2.00 49 - 20 - 13

Management, professional, and related

 34 1.25 1.30 1.60 1.60 - 66 - 28 - -

Management, business, and financial

 28 1.25 1.50 1.60 1.67 1.67 72 - - - -

Professional and related

 37 1.25 1.30 1.60 1.60 - 63 - - - -

Sales and office

 58 1.00 1.25 1.60 1.75 1.75 42 - - 14 -

Office and administrative support

 63 1.00 1.25 1.60 1.75 1.75 37 - - - -

Natural resources, construction, and maintenance

 54 1.00 1.25 - 1.67 2.50 46 16 - - -

Installation, maintenance, and repair

 54 1.00 1.20 1.67 1.67 2.50 46 17 - - -

Production, transportation, and material moving

 69 - 1.00 1.67 1.67 1.67 31 - 11 - -

Full time

 52 1.00 1.30 1.60 1.67 2.00 48 - 20 - 13

Part time

 43 1.00 1.25 1.45 1.67 1.75 57 - - - -

Union

 63 1.20 1.45 1.67 1.67 2.00 37 - - - -

Nonunion

 45 1.00 1.25 1.50 1.67 1.75 55 - 26 - 13

Average wage within the following categories(2):

Second 25 percent

 63 - 1.00 - - 2.15 37 - - - -

Third 25 percent

 59 1.00 1.20 1.60 1.67 2.00 41 - - - -

Highest 25 percent

 44 1.25 1.45 1.60 1.67 1.75 56 - 23 - -

Highest 10 percent

 44 1.25 1.50 1.60 1.67 1.67 56 - - - -

Establishment characteristics

Goods-producing industries

 42 - - 1.60 1.60 1.60 58 - - - -

Service-providing industries

 54 1.00 1.25 1.67 1.75 2.00 46 - 20 7 -

Trade, transportation, and utilities

 69 1.00 1.20 1.67 1.67 1.67 31 - - - -

Financial activities

 24 1.00 1.00 1.20 1.50 1.50 76 - 34 20 -

Finance and insurance

 24 1.00 1.00 1.20 1.50 1.50 76 - 34 20 -

Education and health services

 55 1.25 1.25 1.45 - 2.50 45 - - - -

1 to 99 workers

 50 1.00 1.00 - 1.67 1.67 50 - - - -

1 to 49 workers

 50 1.00 1.00 - 1.67 2.00 50 - - - -

100 workers or more

 52 1.10 1.45 1.60 1.75 2.00 48 - 21 - 11

100 to 499 workers

 54 - 1.50 1.67 1.75 - 46 - - - -

500 workers or more

 51 1.20 1.30 1.60 1.67 2.00 49 - 25 - 15

Geographic areas

Northeast

 27 1.00 1.20 1.25 1.30 1.67 73 - - - -

Middle Atlantic

 28 1.00 1.20 1.30 1.40 1.67 72 14 - - -

South

 70 1.25 1.50 1.60 1.67 1.75 30 - 17 - -

South Atlantic

 51 - 1.45 1.67 1.67 1.67 49 - 30 - -

Midwest

 43 - 1.00 - 1.50 - 57 - 42 - -

East North Central

 39 - - - 1.50 - 61 - - - -

West North Central

 50 1.00 1.00 - 1.60 1.67 50 - - - -

Footnotes:
(1) Estimates represent the flat percentage used to calculate benefits for those workers participating in plans with a terminal earnings formula based on a flat percentage per year of service.
(2) Surveyed occupations are classified into wage categories based on the average wage for the occupation, which may include workers with earnings both above and below the threshold. The categories were formed using percentile estimates generated using data from the National Compensation Survey publication, "Employer Costs for Employee Compensation - March 2017."

Note: Because of rounding, sums of individual items may not equal totals. Dashes indicate that no data were reported or that data do not meet publication criteria. For definitions of major plans, key provisions, and related terms, see the "Glossary of Employee Benefit Terms" at www.bls.gov/ncs/ebs/glossary20162017.htm.
Source: U.S. Bureau of Labor Statistics, National Compensation Survey.

 

Last Modified Date: May 15, 2018