1. © 2006 SHRM SHRM Weekly Online Survey: February 21, 2006 Health Flexible Spending Account (FSA) Sample comprised of 453 randomly selected HR professionals. Analyzing 453 of 2985 emails sent, 2728 emails were received (response rate = 17%). Survey fielded February 14 – February 20, 2006; presentation generated on February 21, 2006. Margin of error is +/- 4.0%.

2. © 2006 SHRM SHRM Weekly Online Survey: February 21, 2006 Does your organization currently offer a health flexible spending account (FSA)?

3. © 2006 SHRM SHRM Weekly Online Survey: February 21, 2006 Does your organization currently offer a health flexible spending account (FSA)? ChoiceCountPercentage Answered Yes32271.2% No13028.8%

4. © 2006 SHRM SHRM Weekly Online Survey: February 21, 2006 What percentage of your eligible employee population participates in the health FSA option? Excludes ‘Don’t know’ (22%) responses

5. © 2006 SHRM SHRM Weekly Online Survey: February 21, 2006 What percentage of your eligible employee population participates in the health FSA option? ChoiceCountPercentage Answered 0% - 25%13954.5% 26% - 50%8533.3% 51% - 75%187.1% 76% - 100%135.1% Excludes ‘Don’t know’ (22%) responses

6. © 2006 SHRM SHRM Weekly Online Survey: February 21, 2006 Does your organization allow employees to take advantage of the 2 ½ month grace period for spending health FSA funds as outlined by the Treasury Department in May of 2005? (check all that apply) NOTE: 4% of cases in the “Other” category were not sure their organization allow employees to take advantage of the grace period.

7. © 2006 SHRM SHRM Weekly Online Survey: February 21, 2006 Does your organization allow employees to take advantage of the 2 ½ month grace period for spending health FSA funds as outlined by the Treasury Department in May of 2005? (check all that apply) ChoiceCountPercent of Cases Yes, my organization allows employees to take advantage of the 2½ month grace period 18758.3% No, the grace period is not likely to increase employee participation in health FSA option 5918.4% No, it is a significant administrative burden5818.1% No, due to difficulty in communicating and educating employees about this change 319.7% No, my organization does not believe that employees would take advantage of this grace period and utilize unused FSA dollars 185.6% Other216.5% NOTE: 4% of cases in the “Other” category were not sure their organization allow employees to take advantage of the grace period.

8. © 2006 SHRM SHRM Weekly Online Survey: February 21, 2006 Other Yes, but not until 2007 Will incorporate in 2006-2007 plan year We will implement this for 2007 plan year. Incur the additional fee This is our first year we want to see how it goes before implementing this. The decision hasn't been made yet The "Use-it-or-lose-it" aspect is still a deterrent to many employees. Our PEO organization is not allowing our employees to take advantage of this. We do not know the reason. Our employees plan well and use up their flex dollars by early December Our employees don't even pull out enough to have any left over at the end of December. Not for 2005, one month grace period for 2006 No. The rule is too new. Our 3rd party administrator does not recommend participating at this time. No, we're waiting until all rules are finalized and legal issues settled. No, it has not been presented to employees as an option No, due to additional cost from TPA to add grace period Its being reviewed prior to deciding to use them For 2005 NO, for 2006 and going forward YES EE confusion about deadlines of overlapping plan years According to our broker, we would need to eliminate the grace period if we ever wanted to implement a calendar-year HSA. NOTE: 4% of cases in the “Other” category were not sure their organization allow employees to take advantage of the grace period.