Costs for Retirement Benefits Down in June, BLS Says

By ASPPA Net Staff • September 13, 2016 • 0 Comments
The Department of Labor’s Bureau of Labor Statistics (BLS) has released its latest report on employer compensation costs. The report, which concerns costs incurred in June 2016, shows that private-sector and state and local public-sector employers spent less on retirement benefits in June than they did in March.

In “Employer Costs for Employee Compensation, June 2016,” the BLS shows that average cost of for retirement and savings benefits among non-agricultural private-sector and state and local public-sector employers and the percentage of total compensation that translated to were lower in June than in March:
  

Average cost per hour worked:
June: $1.27
March: $1.74

Percentage of total compensation:
June: 3.9%
March: 5.1%

The cost of providing defined benefit plans was sharply lower in June than it was in March:

Average cost per hour worked:
June: $0.55
March: $1.09

Percentage of total compensation:
June: 1.7%
March: 3.2%

But the cost of providing defined contribution plans was slightly higher in June:

Average cost per hour worked:
June: $0.71
March: $0.65

Percentage of total compensation:
June: 2.2%
March: 1.9%

The cost of providing retirement and savings benefits in June, reports the BLS, varied widely by major occupational group per hour worked:

  • management, professional, and related workers: $2.59

  • information industry: $2.31

  • goods-producing industries: $2.09

  • natural resources, construction, and maintenance workers: $1.81

  • service-providing industries $1.10

  • service workers: $0.26

  • leisure and hospitality: $0.24

The BLS also reports that employers with more than 100 employees spent more on retirement and savings benefits in June than did employers with fewer than 100 employers; the figures averaged $1.86 per hour worked and $0.78 per hour worked, respectively.