The 2013 survey by SHRM, commissioned by MassMutual, provides insights into employer perspectives on disability and executive group life benefits, with 4,402 respondents representing various industries. Key findings indicate that only 31% of organizations offer executive benefits, with larger organizations more likely to do so, and 19% switched carriers recently primarily due to cost. The research aims to highlight organizations' needs and gaps regarding long-term disability and executive benefits.

1. SHRM Survey Findings: 2013 Employer Perspectives on
Disability Benefits—Executive Group Life Benefits
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 17).
• 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—Executive Group Life Benefits ©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—Executive Group Life Benefits ©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—Executive Group Life Benefits ©SHRM 2013 4
Executive Group Life Benefits

5. In collaboration with and commissioned by MassMutual
• Do organizations offer a special class of benefits to their executives? Approximately one-
third (31%) of organizations reported offering these benefits for executives. Larger staff-size
organizations and organizations in the law firms/legal services industry are more likely to
offer this special class of benefits.
 Among those organizations, 31% provide executives Group Universal Life (GUL) or
Group Variable Universal Life (GVUL) as a carve-out benefit from their group term
plan. Larger staff-size organizations are more likely to offer executive GUL or GVUL as
a carve-out benefit.
• Have many organizations recently switched their executive group life carriers? Only 19% of
organizations reported switching their executive group life carrier in the past three years.
 Among those organizations that switched carriers, the top reasons that prompted the
carrier change are 1) cost of plan (56%), 2) recommendation of an advisor (38%), 3)
lower administrative fees (36%), 4) ease of administration (22%), and 5) additional
features available (20%).
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 5
Key Findings in Executive Group Life Benefits

6. In collaboration with and commissioned by MassMutual
• Is offering executive group life coverage to executives a possible talent management
strategy? Currently, only a small proportion of organizations offer executive group life
benefits. Larger organizations are more likely to offer these benefit compared with
organizations with fewer than 500 employees. Organizations that do provide this coverage
may be more successful in attracting and retaining top executives.
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 6
What do these findings mean for HR professionals?

7. In collaboration with and commissioned by MassMutual
Do you offer a special class of benefits to executives?
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 7
Yes
No
31%
69%
Note: n = 3,894. Respondents who answered “don’t know” were excluded from this analysis.

8. In collaboration with and commissioned by MassMutual
Note: Only statistically significant differences are shown.
Do you offer a special class of benefits to executives?
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 8
Larger staff-size organizations are more likely than smaller organizations to offer a special class of benefits to
executives. Law firms/legal services are more likely than financial services; wholesale/retail trade; other
industries; energy, gas, oil, etc. to offer a special class of benefits for executives.
Comparison by organization demographics
100 to 499 employees (27%)
500 to 2,499 employees (33%)
2,500 to 24,999 employees (46%)
25,000 or more employees (55%)
> 1 to 99 employees (22%)
Law firms and legal services (54%) >
Financial services (32%)
Wholesale and retail trade (32%)
Other industries (31%)
Energy, gas, oil (29%)
Telecommunications (26%)
Professional, scientific and technical services (24%)
Computer and electronic products/technology (21%)

9. In collaboration with and commissioned by MassMutual
Do you offer executive Group Universal Life (GUL) or Group
Variable Universal Life (GVUL) as a carve-out benefit from the
organization’s group term plan?
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 9
Yes
No
31%
69%
Note: n = 908. Only respondents whose organizations offer a special class of benefits to executives were asked this question. Respondents who
answered “don’t know” were excluded from this analysis.

10. In collaboration with and commissioned by MassMutual
Note: Only statistically significant differences are shown.
Do you offer executive Group Universal Life (GUL) or Group
Variable Universal Life (GVUL) as a carve-out benefit from the
organization’s group term plan?
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 10
Larger staff-size organizations are more likely than smaller organizations to offer executive Group Universal Life
(GUL) or Group Variable Universal Life (GVUL) as a carve-out benefits from the organization’s group term plan.
Comparison by organization demographics
500 to 2,499 employees (36%)
2,500 to 24,999 employees (48%)
25,000 or more employees (61%)
>
1 to 99 employees (22%)
100 to 499 employees (21%)
25,000 or more employees (61%) > 500 to 2,499 employees (36%)

11. In collaboration with and commissioned by MassMutual
How important are the following benefits for your executives?
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 11
Note: Only respondents whose organizations offer executives GUL or GVUL as a carve-out benefit were asked this question. Respondents who answered
“don’t know” were excluded from this analysis. Percentages may not total 100% due to rounding.
Ability for a carrier to offer financial counseling
programs/estate resolution services as an additional
benefit with a life insurance plan (n = 247)
Availability of dependent riders on a life insurance
plan (n = 235)
Ability to offer life insurance that does not have an
increase in rates when the executive leaves the
organization (n = 246)
Ability to offer employee-paid voluntary life insurance
coverage (n = 250)
11%
7%
4%
6%
19%
14%
8%
10%
23%
32%
30%
24%
34%
32%
40%
41%
13%
16%
18%
18%
Not at all Important Not Very Important Somewhat Important Very Important Extremely Important

12. In collaboration with and commissioned by MassMutual
Has your organization switched executive group life carriers in the
past three years?
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 12
Yes
No
19%
81%
Note: n = 231. Only respondents whose organizations offer executives GUL or GVUL as a carve-out benefit were asked this question. Respondents who
answered “don’t know” were excluded from this analysis.

13. In collaboration with and commissioned by MassMutual
What prompted the carrier change?
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 13
Cost of plan
Recommendation of an advisor
Lower administrative fees
Ease of administration
Additional features available
Flexibility of benefit
Recommendation of the Board/Senior Management
Ease of understanding plan
Technology capabilities
Dissatisfaction with service
Types of plans used by competitors
Dissatisfaction with product offering
Performance of investment funds
Other
56%
38%
36%
22%
20%
13%
9%
4%
4%
4%
2%
2%
0%
7%
Note: n = 45. Only respondents whose organizations offer executives GUL or GVUL as a carve-out benefit and have switched executive group life
carriers in the past three years were asked this question. Respondents who answered “don’t know” were excluded from this analysis. Percentages do
not total 100% due to multiple response options.

14. In collaboration with and commissioned by MassMutual
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 14
Demographics

15. 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—Executive Group Life Benefits ©SHRM 2013 15
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%

16. In collaboration with and commissioned by MassMutual
Which of the following is closest to your job title?
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 16
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

17. In collaboration with and commissioned by MassMutual
Demographics: Organization Staff Size
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 17
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

18. In collaboration with and commissioned by MassMutual
Demographics: Organization Profit Status
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 18
Privately
owned for-
profit
Publicly
owned for-
profit
72%
28%
n = 4,402

19. In collaboration with and commissioned by MassMutual
Demographics: Organization Region
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 19
Midwest
South
West
Northeast
35%
26%
22%
17%
n = 4,106

20. In collaboration with and commissioned by MassMutual
Demographics: Organization Industry
2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 20
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.

21. 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—Executive Group Life Benefits ©SHRM 2013 21

22. 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—Executive Group Life Benefits ©SHRM 2013 22
SHRM Survey Findings: 2013 Employer Perspectives on
Disability Benefits—Executive Group Life Benefits
In collaboration with and commissioned by MassMutual
Survey Methodology

23. In collaboration with and commissioned by MassMutual
23Disability 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—Executive Group Life Benefits ©SHRM 2013 23

24. In collaboration with and commissioned by MassMutual
24Disability 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—Executive Group Life Benefits ©SHRM 2013 24

25. In collaboration with and commissioned by MassMutual
25Disability 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
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2013 Employer Perspectives on Disability Benefits—Executive Group Life Benefits ©SHRM 2013 25
About SHRM Research