After medical and medically-related insurance, the next most significant category of fringe benefits that employers voluntarily provide to employees is retirement and savings benefits, most often referred to as a pension plan or pension benefit program. According to the 2002 fringe benefit survey conducted by the U.S. Chamber of Commerce, a cost equal to 10.4% of payroll and pay for time not worked was incurred by the surveyed firms to provide medical and medically-related benefits to employees; 6.6% of payroll and pay for time not worked was spent providing retirement and savings benefit programs to employees.1 A roughly similar picture about the relative size of these two categories of fringe benefits is provided by data from the U.S. Department of Labor for September, 2002. Employer costs per hour worked for employee compensation were $19.09 for wages and salaries, paid leave, and supplemental pay (presumably comparable to “payroll” plus “pay...

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