© 2009 ADP, Inc. An FSA = Everyday Savings

Attention Employees If anyone in your family has braces, please come to the Benefits Department to pick up 25% off Coupons good at any Orthodontist in the US. 2 ©2009. ADP, Inc.

Attention Employees If you have a child in Day Care, please come to the Benefits Department to pick up 25% off Coupons good at any Day Care Center in the US. 3 ©2009. ADP, Inc ADP, Inc.

Attention Employees If you signed up for the Medical, Dental, or Vision plan please come to the benefits department to pick up your $300 check. 4 ©2009. ADP, Inc.

Attention Employees If anyone in your family has drug prescriptions of any kind, please come to the Benefits Department to pick up 25% off Coupons good at any Pharmacy in the US. 5 ©2009. ADP, Inc.

For many employers, FSAs are often the most under-utilized benefit in a company The average employee participation is 15% of the benefit eligible population. The under-utilization of FSAs is surprising because: Employees can save anywhere from 20% to 40% on their payroll taxes. Employers save 7% on their payroll taxes. FSAs are a huge benefit to both employers and employees, yet they are under-utilized. 6 ©2009. ADP, Inc. The Reality of the Situation

7 ©2009. ADP, Inc. A Real Opportunity For Significant Savings Grew participation from 750 EEs (19%) to 2,400 EEs (60%) Participant contributions grew from an average of $800 a year to $1,400 a year. Average employee savings grew from $192 to $336 Employer Payroll Tax savings grew from $42,000 to $235,200. Employee savings based on 24% tax rate / Employer savings based on 7% payroll tax.

8 ©2009. ADP, Inc. Drivers of low participation 1.The decision to elect Medical, Dental, or Vision plans is not linked with the need to have an FSA to help reduce how much money the employee will spend each year out of pocket. 2.Communications to employees is not in consumer language they can easily understand, but is instead in Benefits Industry language that is easily misunderstood or confusing.

9 ©2009. ADP, Inc. Drivers of low participation 1.The decision to elect Medical, Dental, or Vision plans is not linked with the need to have an FSA to help reduce how much money the employee will spend each year out of pocket. 2.Communications to employees is not in consumer language they can easily understand, but is instead in Benefits Industry language that is easily misunderstood or confusing. Medically Eligible Expenses Pre-Tax Benefit X

Medical / Dental / Vision Having another baby!!! Hospital and Physician expenses Pediatrician 2-3 times a month Immunizations / shots for school Flu shots Kids dental visits 2-4 per year Adult dental visits 4 per year OB/GYN visits Adult Annual physicals Eye doctor visits Pulmonologist visits for child with asthma Sandy Brown Age 34 Married 3 young children Dual Income Household Pharmacy Asthma Rx scripts 4-12 per year 6-12 misc. Rx scripts for colds/infections (Amoxicillin, penicillin, etc.) Husbands cholesterol medication. Prescription for Migraine Headaches Dependent Care Daycare $600 a month A New Way To Tell The Story About FSAs: 10 ©2009. ADP, Inc.

11 ©2009. ADP, Inc. Presented in an easy to understand format

Multiple Media Options To Fit Client Needs Posters &Table Tents e-Video Messages An FSA helps you plan for daycare expenses at a discount. FSA saves you money. When you use tax-free dollars to pay for items and services youd normally pay out-of-pocket, its like you just used a coupon for up to 40% off! FSA isnt tied to a certain kind of plan. The FSA can cover out-of-pocket costs associated with any kind of HTML s 12 ©2009. ADP, Inc.

13 ©2009. ADP, Inc. Sample FSA Enrollment Campaign Week 1 broadcast #1 Post FSA Video Story on Intranet Hang Posters and arrange Table Tents Week 2 broadcast #2 Post FSA Video Story on Intranet Week 3 broadcast #3 Post FSA Video Story on Intranet Targeted Enrollment Meetings Week 4 broadcast #4 Post FSA Video Story on Intranet Targeted Enrollment Meetings Open Enrollment Weeks Benefit Department Custom Message – Reminder that FSA is a key part of the benefits package Participant FAQs included in Open Enrollment Kit Week 1 Discovery Hey Thats Me! Week 2 More Discovery Hey Thats Me! Week 3 What is an FSA? How does it work? Week 4 Why wouldnt I do this? Open Enrollment Weeks I am signed up!

14 ©2009. ADP, Inc. ADP FSA Enrollment Program ADP will: 1.Provide an ADP resource to consult and help you organize an enrollment campaign. 2.Provide access to all the new messaging and material for you to use in your communications to employees. 3.Provide in the box campaigns that you can just plug and play. 4.Execute a multi-week campaign for you if you want us to. 5.Track employee activity and measure results.