United States Statutory and Private Employee Benefits, 2023 Update

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US Statutory and Private Employee Benefits Report Overview

The US social security system covers more than 96% of the total workers employed in the US. The motive of providing employee benefits is to support the economic security of an individual by insuring against unsure events and to raise the standard of living by providing desired services. Employee benefit programs also add to economic stability by helping to secure the population’s income and welfare, benefitting the economy.

The US employee benefits market research report provides in-depth industry analysis, information, and insights into employee benefits in the US, including an overview of the state and compulsory benefits in the US, detailed information about the private benefits in the US, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in the US.

Regulations Guiding Employee Benefits Market in the US

Some of the key regulations guiding the employee benefits market in the US are the Federal Employees’ Compensation Act (FECA), 1916, Wages and the Fair Labor Standards Act, of 1938, Occupational Safety and Health (OSH) Act, 1970, Employee Retirement Income Security Act (ERISA), 1974, The Family and Medical Leave Act, of 1993, and Affordable Care Act (ACA).

US Employee Benefits Market Segmentation by State and Compulsory Benefits

Employee benefits that are required by law are known as state and compulsory benefits. The key state and compulsory benefits offered by employers in the US are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, and other benefits.

Retirement Benefits: The US pension system comprises the following three pillars. The first pillar consists of a Social Security Retirement Program that provides both mandatory and voluntary DB plans. The second pillar consists of Employer-Sponsored Retirement Plans, which is a voluntary DC plan. The third pillar includes Individual Savings Plan, which is a voluntary DC plan.

Short-Term Sickness Benefits: Short-term sickness benefits are known as temporary disability insurance in the US. Sometimes it is also referred to as cash sickness benefits. The benefit provides partial reparation for the loss of earnings resulting from temporary non-occupational disability. California, Hawaii, New Jersey, New York, and Rhode Island are the five states in the US that provide temporary disability insurance.

Medical Benefits: The US social security system provides two kinds of medical benefits: Medicare and Medicaid. Medicare is the basic health insurance program under which benefits are offered to people who have reached the age of 65 or younger employees who are disabled. Medicaid is a healthcare program under which benefits are provided to individuals with low income.

US Employee Benefits Market Segmentation by Private Benefits

The key private benefits offered by employers in the US are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.

Retirement Benefits: In the US, employers offer supplementary retirement benefits through DB, DC, or Cash Balance (hybrid) plans under Pillar II. The share of defined benefit plans in the US retirement segment is on the decline. According to the Society for Human Resource Management (SHRM) 2022, three out of four employees perceive either retirement 401(k) saving plans or pension plans as their most important, employer-sponsored, financial wellness benefits.

Disability Benefits: Some employers in the US offer private disability benefits over and above the social security disability benefit. Employers in the US also provide mixed plans, which provide both short-term and long-term disability benefits. Short-term disability plans are provided as a standalone product. According to the Bureau of Labor Statistics data published in September 2022, more than 42% of private industry workers had access to short-term disability insurance in March 2022.

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US Statutory and Private Employee Benefits Market Report Overview

Key Regulations Federal Employees’ Compensation Act (FECA), 1916, Wages and the Fair Labor Standards Act, of 1938, Occupational Safety and Health (OSH) Act, 1970, Employee Retirement Income Security Act (ERISA), 1974, The Family and Medical Leave Act, of 1993, and Affordable Care Act (ACA)
Key State and Compulsory Benefits Retirement Benefits, Death in Service, Long-Term Disability Benefits, Short-Term Sickness Benefits, Medical Benefits, Workers’ Compensation Insurance, and Other Benefits
Key Private Benefits Retirement Benefits, Death Benefits, Medical Benefits, Disability Benefits, Accidental Death and Dismemberment Benefits, and Other Benefits


This report provides a detailed analysis of employee benefits in US –

  • It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
  • It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, family benefits, unemployment benefits, Long-term care benefits, leaves and holidays, and private benefits.
  • It highlights the economic and regulatory situations relating to employee benefits in the US.

Key Highlights

• Social Security Administration, Treasury Department, Department of Health and Human Services, Centers for Medicare and Medicaid Services and Department of Labor are responsible for the functioning of the overall social security system.

• A person’s national insurance contribution is determined based on their income.

• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.

• In the US, employers provide voluntary retirement benefits to their employees through DB, DC, or Cash Balance (hybrid) plans under Pillar II.

Reasons to Buy

  • Make strategic decisions using in-depth information related to employee benefits in the country.
  • Assess employee benefits of the market, including state and compulsory benefits and private benefits.
  • Gain insights into the key employee benefit schemes offered by private employers in the country.
  • Gain insights into key organizations governing the employee benefits market, and their impact on companies.

Table of Contents

  • 1. Executive Summary
  • 2. Introduction

    • 2.1 What is this Report about?
    • 2.2 Definitions

  • 3. Country Statistics
  • 4. Overview of Employee Benefits in the US
  • 5. Regulations
  • 6. State and Compulsory Benefits

    • 6.1 Retirement Benefits

      • – Introduction
      • – Eligibility
      • – Benefits
      • – Payment options
      • – Contribution

    • 6.2 Death in Service

      • – Introduction
      • – Eligibility
      • – Benefits
      • – Payment options
      • – Contribution

    • 6.3 Long-Term Disability Benefits

      • – Introduction
      • – Eligibility
      • – Benefits
      • – Payment options
      • – Contribution

    • 6.4 Short-Term Sickness Benefits

      • – Introduction
      • – Eligibility
      • – Benefits
      • – Payment options
      • – Contribution

    • 6.5 Medical Benefits

      • – Introduction
      • – Eligibility
      • – Benefits
      • – Payment options
      • – Contribution

    • 6.6 Workers’ Compensation Insurance

      • – Introduction
      • – Eligibility
      • – Benefits
      • – Payment options
      • – Contribution

    • 6.7 Other Benefits

      • – Family benefits
      • – Unemployment Benefits
      • – Supplemental Security Income
      • – Leaves and Holidays

  • 7. Private Benefits

    • 7.1 Retirement Benefits
    • 7.2 Death Benefits
    • 7.3 Disability Benefits
    • 7.4 Medical Benefits
    • 7.5 Accidental Death and Dismemberment Benefits
    • 7.6 Other Benefits

  • 8. About GlobalData
  • 9. Contact Us


Table 1: Insurance Industry Definitions

Table 2: The US – Country Statistics, 2022

Table 3: The US – Social Security Contribution 2022

Table 4: The US – Social Security Contribution 2023

Table 5: The US – Age to receive full Social Security benefits

Table 6: The US – Age to receive full Social Security benefits

Table 7: The US – Medical Benefits – Additional Medicare Tax

Table 8: The US – Federal Holidays, 2023

Table 9: The US – Accidental Health and Dismemberment benefits


List of Figures

Figure 1: The US – Main Institutions of Social Security System

Frequently asked questions

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