Ebri Databook on Employee Benefits

Employee benefits are intended to promote economic security by insuring against uncertain events and to raise living standards by providing targeted services. Employee benefit programs also add to economic stability by helping to secure the income and welfare of American families, which helps the economy as a whole. The U.S. employee benefit system is a partnership among businesses, individuals, and the government. Most employment-based benefits, such as pensions and health insurance, are provided voluntarily by businesses. The government supports these voluntary employment-based benefits by granting them favorable tax treatment. Certain other benefits, including Social Security, unemployment insurance, workers’ compensation, and family and medical leave, are mandatory. The government also supports individual financial security programs through individual retirement accounts, favorable taxation of life insurance contracts, and tax-free death benefits.