This is part three of the five-part series conducted in collaboration with MassMutual. Only 19% of organizations offer a supplemental disability income program to their employees. The top three reasons organizations do not offer this benefit are 1) employees can purchase it on their own (52%), 2) the administrative burden is too high(25%), and 3) organizations are concerned about costs (24%).

1. SHRM Survey Findings: 2013 Employer Perspectives on
Disability Benefits—Supplemental Plan/Individual Disability
Income
In collaboration with and commissioned by
MassMutual
September 18, 2013

2. In collaboration with and commissioned by MassMutual
• The 2013 Employer Perspectives on Disability Benefits survey, which was commissioned by
MassMutual, is a collaboration between the Society for Human Resource Management
and MassMutual.
• The survey was sent to a randomly selected sample of SHRM members from a variety of
industries. A response rate of 10% was achieved with 4,402 responses.
• The main purpose of this research was to gain a better understanding of organizations’
needs and gaps regarding long-term disability and executive benefits. The 2012 data were
collected from a sample including small-, medium- and large-staff-size organizations (see
slide 19).
• The findings are divided in the following topics:
 Base Group Long-Term Disability Plans
 Compensation and Buy-Up Coverage
 Supplemental Plan/Individual Disability Income
 Carrier Satisfaction/Changes
 Executive Group Life Benefits
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 2
Introduction

3. In collaboration with and commissioned by MassMutual
• The results of each question are reported by the overall sample, and then, where
applicable, statistically significant differences by organization staff size, industry and region are
included. Only statistically significant differences with a sample size of 25 or more were reported.
• The results are based on respondents who indicated that they were either “extremely
knowledgeable,” “very knowledgeable” or “somewhat knowledgeable” about their
organization’s employee benefits plan. The results include respondents from publicly owned for-
profit or privately owned for-profit organizations only.
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 3
Introduction (continued)
Industries Organization Staff Size Region
 Accounting/architectural
 Computer and electronic
products/technology
 Energy, gas, oil
 Financial services
 Health care services
 Information services
 Law firms and legal services
 Manufacturing
 Pharmaceutical and medicine
 Physician and dental offices
 Professional, scientific and
technical services
 Telecommunications
 Utilities
 Wholesale and retail trade
 Other industries
 1 to 99 employees
 100 to 499 employees
 500 to 2,499 employees
 2,500 to 24,999 employees
 25,000 or more employees
 Midwest
 Northeast
 South
 West

4. In collaboration with and commissioned by MassMutual
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 4
Supplemental Plan/Individual Disability Income

5. In collaboration with and commissioned by MassMutual
• How many organizations offer an individual disability income program to supplement their
group plan? Only 19% of organizations offer supplemental disability income.
 Among organizations with these plans, the majority (70%) implemented their
program three or more years ago.
 Overall, 76% of organizations reported 50% or more of their employees are eligible for
this coverage.
 The top factors that determine eligibility for this program were employees’
compensation (25%), the number of years employed by the firm (19%) and employee
job title (14%).
• Will organizations continue to offer a supplemental individual disability income program?
Only a small portion of organizations currently offer supplemental disability income. Since
many expect the cost of health care to rise and most organizations do not provide this
benefit because employees can purchase it by themselves, the burden of attaining
supplemental individual disability income will most likely be placed on employees.
• What are the reasons why organizations do not offer a supplemental individual disability
income program? The top three reasons cited are 1) employees can purchase it on their
own (52%), 2) the administrative burden is too high(25%), and 3) organizations are
concerned about costs (24%).
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 5
Key Findings in Supplemental Plan/Individual Disability
Income

6. In collaboration with and commissioned by MassMutual
• Supplemental disability coverage may be an underutilized benefits offering by
organizations. Given the uncertainty of future health care costs, organizations may be
cautious about adding additional programs to their overall benefits package.
Supplemental disability coverage may be an option for organizations to consider as
employees usually pay for the coverage out of their own pockets (71% of organizations
reported that employees pay 100% of coverage). The main reason that organizations
indicated for not currently providing supplemental disability coverage is that employees
can purchase it on their own; however, the likelihood of employees being informed
enough to seek out these programs is slight. It may be beneficial for organizations to inform
employees about supplemental disability coverage and its potential impact on
employees’ financial wellness.
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 6
What do these findings mean for HR professionals?

7. In collaboration with and commissioned by MassMutual
Do you offer an individual disability income program to
supplement the group plan?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 7
Yes
No
19%
81%
Note: n = 3,425. Only respondents whose organizations offer a group long-term disability plan were asked this question. Respondents who answered
“don’t know” were excluded from this analysis.

8. In collaboration with and commissioned by MassMutual
Which of the following are reasons why your organization does not
offer an individual income program to supplement the group
plan?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 8
Employees can purchase it on their
own
The administrative burden is too
great
Organization is concerned about
costs associated with the offering
Organization is concerned about
enrollment activity
Organization is unaware that
programs are available
Existing coverage plan is adequate
enough*
Will offer/consider to offer in the
future*
Other
52%
25%
24%
16%
8%
1%
1%
8%
Note: n = 1,929. Only respondents whose organizations offer a group long-term disability plan but do not offer an individual disability
income program were asked this question. Respondents who answered “don’t know” were excluded from this analysis. An asterisk (*)
indicates that this response option was developed from open-ended responses. Percentages do not total 100% due to multiple
response options.

9. In collaboration with and commissioned by MassMutual
Note: Only statistically significant differences are shown.
Which of the following are reasons why your organization does not
offer an individual income program to supplement the group
plan?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 9
Smaller staff-size organizations are more likely than larger organizations to be unaware that individual income
programs are available. Larger staff-size organizations compared with smaller organizations are more likely to
be concerned about the costs associated with offering an individual income program.
Comparison by organization demographics
Organization is unaware that
programs are available
1 to 99 employees (12%) >
500 to 2,499 employees (5%)
2,500 to 24,999 employees (3%)
Organization is concerned about
costs associated with the offering
2,500 to 24,999 employees (30%) > 100 to 499 employees (21%)
25,000 or more employees (41%) >
1 to 99 employees (25%)
100 to 499 employees (21%)
500 to 2,499 employees (22%)

10. In collaboration with and commissioned by MassMutual
In what year was the supplemental disability income program
implemented?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 10
Less than one year ago
One year to less than
three years ago
Three years to less than
five years ago
Five years to less than 10
years ago
10 years ago or longer
9%
20%
21%
26%
23%
Note: n = 522. Only respondents whose organizations offer a group long-term disability plan and an individual disability income program were asked this
question. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not total 100% due to rounding.

11. In collaboration with and commissioned by MassMutual
What percentage of your employees are eligible for the
supplemental disability income coverage?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 11
Less than
10%
10% to 19%
20% to 29%
30% to 49%
50% or
more
11%
4%
4%
5%
76%
Note: n = 548. Only respondents whose organizations offer a group long-term disability plan and an individual disability income program were asked this
question. Respondents who answered “don’t know” were excluded from this analysis.

12. In collaboration with and commissioned by MassMutual
Which of the following items is a factor in determining eligibility for
the supplemental disability income program?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 12
Employee's
compensation
The number of years
employed by the firm
All employees are
eligible*
Employee's job title
Executive carve out
Employee's status
(e.g., full-time)*
Probation period/hire
date*
Other
25%
19%
19%
14%
11%
11%
4%
10%
Note: n = 494. Only respondents whose organizations offer a group long-term disability plan and an individual disability income program were asked this
question. Respondents who answered “don’t know” were excluded from this analysis. An asterisk (*) indicates that this response option was developed
from open-ended responses. Percentages do not total 100% due to multiple response options.

13. In collaboration with and commissioned by MassMutual
What percentage of eligible employees have purchased
supplemental disability income coverage?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 13
Less than
20%
20% to 29%
30% to 49%
50% or
more
62%
18%
10%
9%
Note: n = 468. Only respondents whose organizations offer a group long-term disability plan and an individual disability income program were asked this
question. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not total 100% due to rounding.

14. In collaboration with and commissioned by MassMutual
How much, if any, of the supplemental disability income
coverage is paid for by the employee?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 14
0%
1% to 24%
25% to 49%
50% to 74%
75% to 99%
100%
18%
4%
3%
3%
1%
71%
Note: n = 546. Only respondents whose organizations offer a group long-term disability plan and an individual disability income program were asked this
question. Respondents who answered “don’t know” were excluded from this analysis.

15. In collaboration with and commissioned by MassMutual
Note: Only statistically significant differences are shown.
How much, if any, of the supplemental disability income
coverage is paid for by the employee?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 15
Organizations located in the Midwest are more likely than organizations in the South to require employees to
pay 100% of their supplemental disability income coverage.
Comparison by organization demographics
100% Midwest (78%) > South (63%)

16. In collaboration with and commissioned by MassMutual
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 16
Demographics

17. In collaboration with and commissioned by MassMutual
Approximately what percentage of regular, full-time and part-
time employees are eligible for employee benefits at your
organization?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 17
Less
than
25%
25% to
49%
50% to
59%
60% to
69%
70% to
79%
80% to
89%
90% to
99%
100%
Full-time
Employees
(n = 4,182)
1% 1% 1% 1% 2% 4% 12% 78%
Part-time
Employees
(n = 3,470)
66% 3% 5% 1% 2% 3% 4% 16%

18. In collaboration with and commissioned by MassMutual
Which of the following is closest to your job title?
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 18
Manager
Generalist
Director
Chief Human Resource Officer
Vice President
Administrator
Supervisor
Associate Director
Specialist
Associate Vice President
Senior Vice President
Analyst
Chief Executive Officer
President
Chief Human Capital Officer
Senior Executive Vice President
Executive Vice President
Other
32%
23%
19%
9%
6%
2%
1%
1%
1%
1%
1%
1%
0%
0%
0%
0%
0%
3%
n = 4,394

19. In collaboration with and commissioned by MassMutual
Demographics: Organization Staff Size
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 19
1 - 99
employees
100 - 499
employees
500 - 2,499
employees
2,500 - 24,999
employees
25,000 or
more
employees
25%
33%
18%
17%
7%
n = 4,382

20. In collaboration with and commissioned by MassMutual
Demographics: Organization Profit Status
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 20
Privately
owned for-
profit
Publicly
owned for-
profit
72%
28%
n = 4,402

21. In collaboration with and commissioned by MassMutual
Demographics: Organization Region
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 21
Midwest
South
West
Northeast
35%
26%
22%
17%
n = 4,106

22. In collaboration with and commissioned by MassMutual
Demographics: Organization Industry
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 22
Percentage
Manufacturing 16%
Wholesale and Retail Trade 14%
Financial Services A
10%
Professional, Scientific and Technical Services 8%
Energy, Gas, Oil B
6%
Telecommunications 6%
Accounting / Architectural C
4%
Computer and Electronic Products/Technology D
4%
Health Care Services E
4%
Utilities 4%
Information Services F
3%
Pharmaceutical and Medicine G
2%
Law Firms and Legal Services 2%
Physician and Dental Offices 1%
Other industries 16%
n = 4,402
A Includes Banks, Insurance Companies, Securities and Commodities, Other Finance and Insurance Services categories.
B Includes Energy Extraction and Refining, Gas and Oil, and Other Oil, Gas, and Energy Extraction and Refining categories.
C Includes Accounting, Tax, Payroll Services and Architectural, Engineering categories.
D In the survey labeled as Manufacturing: Computer and Electronic Products/Technology.
E Includes Hospitals and Other Health Care Services categories.
F Includes Publishing, Motion Picture, Broadcasting (except Internet) and Other Information Services categories.
G In the survey labeled as Manufacturing: Pharmaceutical and Medicine category.

23. In collaboration with and commissioned by MassMutual
U.S.-based operations only 66%
Multinational operations 34%
Single-unit organization: An organization
in which the location and the
organization are one and the same.
26%
Multi-unit organization: An organization
that has more than one location.
74%
Multi-unit headquarters determines HR
policies and practices
64%
Each work location determines HR policies
and practices
4%
A combination of both the work location
and the multi-unit headquarters determines
HR policies and practices
33%
Is your organization a single-unit organization or
a multi-unit organization?
For multi-unit organizations, are HR policies and
practices determined by the multi-unit
headquarters, by each work location or by both?
Does your organization have U.S.-
based operations (business units)
only, or does it operate
multinationally?
n = 4,387
n = 4,398
Note: n = 3,410. Percentages do not equal 100% due to rounding.
Corporate (companywide) 74%
Business unit/division 15%
Facility/location 11%
n = 3,407
What is the HR department/function for
which you responded throughout this
survey?
Demographics: Other
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 23

24. In collaboration with and commissioned by MassMutual
• Response rate = 10%
• 4,402 HR professional respondents from a randomly selected sample of a
variety of industries in SHRM’s membership
• Margin of error +/- 2%
• Survey fielded: July 10, 2012 to August 3, 2012
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 24
SHRM Survey Findings: 2013 Employer Perspectives on
Disability Benefits—Supplemental Plan/Individual Disability
Income
In collaboration with and commissioned by MassMutual
Survey Methodology

25. In collaboration with and commissioned by MassMutual
25Disability and Executive Benefits Survey ©SHRM 2012
About MassMutual
Founded in 1851, MassMutual is a leading mutual life insurance company that is
run for the benefit of its members and participating policyholders. The company
has a long history of financial strength and strong performance, and although
dividends are not guaranteed, MassMutual has paid dividends to eligible
participating policyholders every year since the 1860s. With whole life insurance
as its foundation, MassMutual provides products to help meet the financial needs
of clients, such as life insurance, disability income insurance, long term care
insurance, retirement/401(k) plan services, and annuities. In addition, the
company’s strong and growing network of financial professionals helps clients
make good financial decisions for the long-term.
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 25

26. In collaboration with and commissioned by MassMutual
26Disability and Executive Benefits Survey ©SHRM 2012
About SHRM
The Society for Human Resource Management (SHRM) is the world’s largest
association devoted to human resource management. Representing more than
250,000 members in over 140 countries, the Society serves the needs of HR
professionals and advances the interests of the HR profession. Founded in
1948, SHRM has more than 575 affiliated chapters within the United States and
subsidiary offices in China and India.
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 26

27. In collaboration with and commissioned by MassMutual
27Disability and Executive Benefits Survey ©SHRM 2012
• For more survey/poll findings, visit www.shrm.org/surveys
• For more information about SHRM’s Customized Research Services, visit
www.shrm.org/customizedresearch
• Follow us on Twitter @SHRM_Research
2013 Employer Perspectives on Disability Benefits—Supplemental Plan/Individual Disability Income ©SHRM 2013 27
About SHRM Research