© 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.

© 2009 ADP, Inc.

An FSA = Everyday SavingsAn FSA = Everyday Savings

Attention Employees

If anyone in your family has braces,please come to the

Benefits Department to pick up

25% off Couponsgood 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 Couponsgood at any Day Care Center in the US.

3 ©2009. ADP, Inc.

2009. 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 Couponsgood 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 SituationThe Reality of the Situation

7 ©2009. ADP, Inc.

A Real Opportunity For Significant SavingsA 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 participationDrivers 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 participationDrivers 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 BenefitX

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 BrownAge 34Married3 young childrenDual 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 FSA’s:

10 ©2009. ADP, Inc.

11 ©2009. ADP, Inc.

Presented in an easy to understand formatPresented in an easy to understand format

Multiple Media Options To Fit Client NeedsMultiple 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 you’d normally pay out-of-pocket, it’s like you just used a coupon for up to 40% off!

FSA isn’t tied to a certain kind of plan. The FSA can cover out-of-pocket costs associated with any kind of

HTML e-mails

12 ©2009. ADP, Inc.

13 ©2009. ADP, Inc.

Sample FSA Enrollment CampaignSample FSA Enrollment Campaign

14 ©2009. ADP, Inc.

ADP FSA Enrollment ProgramADP 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 e-mail campaign for you if you want us to.

5. Track employee activity and measure results.