Employee Education and Communications

SM 401(k) Plan Solutions iplan.isave.ibenefit. Employee Education and Communications WHAT S INSIDE: Education programs for employees. Page 8 How to meet the plan of your dreams Build a better plan with automatic features. Page 26 FOR PLAN SPONSOR USE ONLY NOT FOR DISTRIBUTION TO THE GENERAL PUBLIC

From the Leadership Employee education and communication is critical to the success of a retirement plan and it s never been more important than it is today. The current economic conditions and chaotic stock market activity have put personal finances in the forefront for most Americans. Both you and your employees are undoubtedly troubled about the current economy and the markets. In turbulent times, it s common for employees to be discouraged from saving for retirement, but it is in these times that saving becomes even more critical. Plan sponsors know motivating their employees to actively participate in the retirement plan is key to its ongoing success. You can trust our iplan. isave.ibenefit employee education program to drive results by inspiring your employees to take action. It can help maximize your plan s value by making it easy for your employees to plan and save for their future. iplan combines plan design features, behavioral messaging, and easy-touse tools and advice to create a retirement planning experience that can lead to increased participation and deferral rates. Collectively, this adds up to a successful retirement plan for you and your employees. With one of the largest teams of licensed Education Specialists 1 in the retirement industry, ADP provides you with the resources and the knowledge to assist your employees in planning for their future financial security. Our Education Specialists are specifically trained in the retirement industry and are dedicated to: Communicating the benefits of your 401(k) plan Encouraging and assisting employees with enrollment Educating plan participants about important retirement planning topics, and Motivating employees to take action In addition to providing your employees with ongoing educational resources, it s also important to consider employee behaviors and attitudes toward saving and investing along with demographics that could impact your plan s success. In this issue, you can read about how embedding automatic features into your plan can help you optimize it to achieve plan goals and positively impact participant behavior passing nondiscrimination tests, increasing participation or deferral rates and improving investing decisions. These features include: Automatic enrollment Automatic savings rate increases using Save Smart Automatic account rebalancing Target retirement date 2 and risk-based funds, and GuidedSavings SM 3 a personalized investment advice and management service ADP Retirement Services can work with you to structure your plan to meet the needs of your employees and motivate them to prepare for their financial future. You can trust our iplan programs and services to promote the benefits of your plan and encourage your employees to use it to its full potential. Now is the perfect time to talk to your employees about retirement planning. Contact us today to help you promote your plan, educate your employees and design the plan of your dreams. Best regards, Frank Mungiello Divisional Vice President General Manager, Implementation 1 Registered representatives of ADP Broker-Dealer, Inc., an affiliate of ADP, Inc., One ADP Blvd., Roseland, NJ; Member FINRA. 2 The target date of a target date mutual fund is the approximate date when an investor plans to begin withdrawing their money from the fund. The principal value of a target date fund is not guaranteed at any time, including at the target date. 3 GuidedSavings SM is a service mark of GuidedChoice Asset Management, Inc., and nothing in these materials is intended to be, nor should be construed as, advice or a recommendation for a particular situation. Please consult with your own advisors for such advice. None of ADP Broker-Dealer, Inc., ADP, Inc. or any of their affiliates is affiliated with GuidedChoice, nor do they endorse GuidedChoice services or products. Plans wishing to offer this participant advisory service may engage GuidedChoice to make available investment advisory and management services to plan participants.

Contents Tools and resources for you 4 Education programs for your employees 8 Motivational education 11 Account reporting 18 Sample two-year education strategy 20 Feature article: How to meet the plan of your dreams 26.

PLAN SPONSOR TOOLS Educate 1 Optimize 3 2 Enroll Tools and resources for you A Three-Step Approach to Motivate Your Employees The results you strive for as a plan sponsor are directly related to motivating your employees to prepare for their financial future. You can count on our iplan programs and services to promote the benefits of your plan and encourage your employees to use it to its full potential. It includes three fundamental building blocks to maximize your results and make your retirement plan an ongoing success. THREE CORE FACTORS DRIVE RESULTS 1. Educate Employees About Your Plan s Benefits Your employees will be more likely to enroll in the plan once they understand its many features and benefits. Our focus on your employees begins with helping them plan for their future. Whether it s a new plan or a conversion, our materials raise awareness and generate interest in your plan. 2. Enroll Your Employees in the Plan We take an active part in the enrollment process to maximize plan participation. Our education meetings teach skills and concepts essential to the pursuit of future financial security, including: early enrollment, sufficient deferral, asset allocation and account management. This approach helps your employees gain confidence in their retirement planning decisions and drives them to take action. 3. Optimize the Plan s Benefits Once the enrollment process is complete, our work has just begun. Our ongoing education program encourages employees to increase their contribution rates so they can enjoy a financially secure retirement. We also offer a number of plan features you can elect to offer that can help participants maximize your plan s benefits. These include automatic enrollment, Save Smart (a program based on the Save More Tomorrow 1 research, which allows automatic-timed account increases for improved saving), automatic account rebalancing, target date funds and GuidedSavings ȘM 2 a personalized investment advice and management service. 1 Save More Tomorrow: Using Behavioral Economics to Increase Employee Saving. Richard H. Thaler, Shlomo Benartzi. August 2001. 2 GuidedSavings SM is a service mark of GuidedChoice Asset Management, Inc. None of ADP Broker-Dealer, Inc., ADP, Inc. or any of their affiliates is affiliated with GuidedChoice, nor do they endorse GuidedChoice services or products. Plans wishing to offer this participant advisory service may engage GuidedChoice to make available investment advisory and management services to plan participants.

Plan Resource Center www.mykplan.com/sponsor The Plan Resource Center on the web provides you with a tool to assist with the day-today management of your plan. Here, you can access your monthly calendar of events, which includes a communication tips section and a number of other tools you can use to help you fulfill your fiduciary responsibilities, maximize participation and enhance your plan offering. You can also review: Custom reports Compliance information Fund information* Transaction history Plan sponsor newsletters Also included on this site are interactive planning tools, important plan information updates, administrative procedures, forms and Roth 401(k) materials. Informational Resources The following items are available in the Plan Resource Center. The Roth 401(k): A Reference Guide for Plan Sponsors Provides an overview of the Roth 401(k) feature, including how it works, how it compares to a traditional 401(k) and what you need to consider before making this option available in your plan. A Reference Guide for Plan Sponsors The Roth 401(k) SM Introducing GuidedSavings Meeting the Needs of Plan Sponsors and Their Employees To make the most of your retirement plan, you want to maximize employee participation and, at the same time, meet your ongoing fiduciary responsibilities. Both of these goals can be met with GuidedSavings, the personalized investment advisory program provided by GuidedChoice. Encourage Employee Participation Some employees are reluctant to participate in their company s retirement plan because they aren t comfortable making investment decisions. GuidedSavings eliminates that roadblock by delivering a user-friendly online tool that provides high quality, independent investment advice and professional account management. Meet Your Fiduciary Requirements You ll help to reduce current and potential liability by providing employees with solutions to help manage their account and save more effectively for their retirement. In addition, we offer a comprehensive and ongoing communications program, which includes newsletters and other timely information. Provide Retirement Planning Support GuidedChoice offers a flexible, complete advisory service for long-term financial success. From savvy investors seeking accurate projections, to reluctant savers looking for start-to-finish help, GuidedSavings provides as little or as much assistance as each participant prefers. Employees will be able to see whether they re on target to generate the income they desire when they leave the workforce. A personalized analysis shows their current and likely retirement income ranges, provides specific advice on savings rates in and out of the plan, asset class allocation, and, for some, investment recommendations. Choice of Service Levels: Guidance Only or Managed Account? Employees who are comfortable making their own retirement planning decisions can use our asset class recommendations or adjust them as they see fit. Employees looking for additional support can choose to enroll in a managed account. Whether or not a managed account is selected, employees receive: Guidance in setting a financial goal and defining an investment plan; and A clear, actionable strategy tailored to the individual s needs. GuidedSavings SM To make the most of your retirement plan, you want to maximize employee participation. This can be met with GuidedSavings, the personalized investment advisory program by GuidedChoice TM. * Investment options are available through ADP Broker-Dealer, Inc., an affiliate of ADP, Inc., One ADP Blvd., Roseland, NJ; Member FINRA. iplan. isave. ibenefit. Employee Education and Communications Program 5

Quick Facts CLIENT COMMUNICATIONS Source: Dept of Energy Informational Resources Maximize your 401(k) Plan Participation with ADP Retirement Services Maximize Your 401(k) Plan Participation Guide Having a 401(k) retirement plan is good for your employees and it s a smart move for your business. Whether you have a brand new or an established 401(k) plan, there are numerous opportunities to boost enrollment, including: Instituting a comprehensive education program Offering optional plan features such as automatic enrollment, loans and immediate eligibility E M P L O Y E E E D U C A T I O N & C O M M U N I C A T I O N Educating your employees about the benefits of saving for a secure retirement though the plan Working Together to Save Our Environment At ADP Retirement Services, we re doing our part to help conserve our natural resources. In addition to now using 100% recycled paper for our plan sponsor letters, you can access our communication materials and reports around-theclock via the Plan Resource Center at www.mykplan.com/sponsor. Here is a small sample of our environmentally friendly communications: Plan SPonSor outlook newsletter Information on retirement plan trends, including statistics and key compliance, operational and administration issues. To view the Plan Sponsor Outlook newsletter simply click on the LearnIng & Resources tab on the home page. Approximately 80% of what Americans throw away is recyclable. Yet our recycling rate only is 28%. The U.S. constitutes 5% of the world s population but uses 25% of its natural resources. Working Together to Save Our Environment We re doing our part to help conserve our natural resources by providing plan sponsors and participants with online communications materials and using recycled paper for our print communications. Please view this document to learn more about our environmentally friendly materials. Year end and QuarterlY ComPlianCe reports Your year-end and quarterly projection compliance reports are accessible by clicking on the Reports left hand menu bar on the home page. monthly Plan reports Your Executive Summary and Monthly Information Summary reports are available under the Reports left hand menu bar on the home page. online brief QuiCk CoaCh modules for Plan administrators Our pre-recorded training courses are accessible under the Learning Resources link on the home page. These modules include: Custom on Demand Reporting Maximizing your Retirement Plan Value Get Started today! Not only is going green good for the environment, it s also smart business. In addition, plan participants who conserve energy and other resources can free up money that can then be used to increase their retirement plan contributions, thus increasing the likelihood of achieving their retirement goals. Remember, we re in this together. And together we can make a difference for ourselves and future generations as well. FOR PLAN SPONSOR USE ONLY * Neither ADP, nor any of its affiliates serves as a fiduciary to retirement plans, or provides tax or legal advice to its clients. 6 iplan. isave. ibenefit. Employee Education and Communications Program

1 * Source: EBRI/MGA 2009 Retirement Confidence Survey, www.ebri.org/surveys/rcs/2009/ Version 1 Newsletters Newsletters* are available on the Plan Resource Center. August 2009 1IRS Proposes Regulations to In This issue Allow Mid-Year Elimination of Safe Harbor Nonelective 1. IRS Proposes Regulations Contributions on Limited to Allow Mid-Year Basis Elimination of Safe Harbor Nonelective Contributions Background In order for a 401(k) plan to meet on Limited Basis nondiscrimination testing on a "safe harbor" basis, the employer is required to make either a matching or 2. Congress Continues Focus nonelective contribution. This is true whether the plan's on 401(k) Plans safe harbor status is based on the traditional safe harbor 3. DOL Further Delays Final (sec. 401(k)(12)) or the more recent Qualified Automatic Investment Advice Contribution Arrangement (sec. 401(k)(13)) design. Generally, a plan's status as a safe harbor plan, and the Regulations required employer contributions, must continue for the entire 12-month plan year. However, current IRS regulations permit an employer to amend its "safe harbor" 401(k) plan (or 403(b) plan) to suspend matching contributions mid-year, if certain requirements are met. The latter include 30-day advance notice to participants, matching contributions must continue to be made on employee contributions through the effective date of the amendment, and the plan must meet the ADP test for the entire plan year on a "current year" testing basis. The current regulations do not address whether an employer may suspend its nonelective contributions mid-year. This silence has raised concerns for employers that want to suspend their nonelective contributions mid-year to help meet financial needs. It appeared that the only way an employer could suspend its obligation to make safe harbor nonelective contributions during a year was to terminate the plan, a draconian step most employers wish to avoid. Moreover, plan termination might not be a lawful option in this context. In this regard, the regulations provide that the requirement that a safe harbor 401(k) plan providing nonelective contributions be effective for a12-month plan year does not apply if a plan is terminated mid-year, but only if the termination is in the context of a corporate transaction or if the employer "incurs a substantial business hardship comparable to a substantial business hardship described in section 412(c)". An employer that cannot meet these requirements may not be permitted to terminate its safe harbor plan mid-year, although it is not entirely clear whether this is a prohibition on terminating mid-year a safe harbor 401(k) plan providing nonelective contributions, or whether it simply means that, if such a plan is terminated mid-year, it may not rely on the safe harbor. Regulatory Outlook Provides a review of information on regulatory and legislative issues and how they effect the day-to-day operations of your plan. Plan Sponsor Outlook Information on retirement plan trends including national statistics and key compliance, operational and administrative issues. IRS Proposal The IRS has just issued proposed regulations that would permit an employer to suspend nonelective contributions to a safe-harbor 401(k) plan mid-year, but only if the employer incurs a "substantial business hardship (comparable to a "substantial business hardship" described in section 412(c)," and satisfies the same other rules that apply to a suspension of safe harbor matching contributions. Basically, this is the same standard that applies to terminating a safe harbor 401(k) mid-year. The effect of the new guidance is that, if an employer could meet the P l a n S p o n s o r Outlook A Current Issues Resource for Plan Sponsors and Administrators 3rd Quarter 2009 Retirement Confidence Hits Record Low The percentage of workers who are very confident about having enough money for a comfortable retirement was just 13% in the 2009 Retirement Confidence Survey * from the Employee Benefit Research Institute. This is the lowest result since 1993, when the question was first asked, and is down by one-half in just two years. About 44% are not too confident or not at all confident about their financial resources for retirement. Retirement will be delayed About 28% of respondents said their target retirement age changed in the past year. Of these, nearly 90% said Projections may be low they have delayed retirement in order to increase financial About 42% of workers responded that they need to security. accumulate $500,000 by the time they retire to live comfortably in retirement. Almost 20% said they need More workers are planning to work for pay during between $250,000 and $500,000, and 28% said they need retirement to supplement their income. In the 2009 survey, less than $250,000. 72% stated their intention to work in retirement, up from 66% in the previous survey. Those who have done a retirement needs calculation (23%) were twice as likely as workers who have not (11%) Planning is still lacking to anticipate that they will need to have at least $1 million Less than half (44%) of workers reported that they and/or saved before retirement. their spouse have tried to calculate how much money they need to have saved upon retirement. An equal proportion Communication and education is vital to the success of (44%) simply guesses how much they will need. your retirement plan and it s never been more important than today. Contact your ADP Client Service Group to Despite the apparent need of many respondents to focus on learn more about our education materials. planning, 75% of workers responded that they and/or their spouse have set aside money for retirement. The proportion of The 2009 Retirement Confidence Survey is at http://www. those who said they have saved for retirement has risen since ebri.org/pdf/briefspdf/ebri_ib_4-2009_rcs1.pdf. 2007, when it was 66%, and is at its highest since 2000 (78%). For more information about financial preparedness for Actual amounts saved are worrisome. More than half (53%) retirement, see the National Retirement Risk Index of those working said they had total savings and investments, question and answer on page 3. not counting home equity and defined benefit plans, of less than $25,000. Nearly one-third (30%) of those age 55 or more had savings of less than $10,000, and only 26% of those in this age group had savings of $250,000 or more. * The articles and opinions in the newsletters are for general information only and are not intended to provide specific advice or recommendations for any plan. Please consult your own advisors for such advice. iplan. isave. ibenefit. Employee Education and Communications Program 7

EMPLOYEE PROGRAMS Education Programs for Your Employees Understanding the benefits of saving for retirement and how to get started doesn t have to be difficult. In fact, your average American prefers taking the easy approach to retirement planning. Our enrollment and retirement planning materials have been built with this in mind making it easy. We don t overwhelm with a lot of materials ours are short, concise, easy-tounderstand and motivational. Our focus is to provide the key information your employees need to begin planning for their future. KEY TO COMMUNICATIONS Use this key to identify education items that fit your plan needs and objectives. Increase participation increase contributions improve asset allocation also available in spanish informational/awareness

Targeted Enrollment Workshops Once you are a client, you can request an education meeting from our Plan Resource Center Customized for your plan, our targeted enrollment and conversion process delivers a meaningful message to drive your employees to act. Meetings: Teach the importance of maximizing the retirement plan benefit through plan features and tools Inform of plan changes Review plan benefits and the importance of saving through the plan Facilitate the enrollment process Your employees will receive personalized support provided by our team of Education Specialists. 1 These seasoned professionals help your employees plan for a secure retirement. In addition to running enrollment meetings, they re available to assist in the ongoing education of your employees so they ll gain confidence in the investment decision making process. Once you are an ADP ACCESS client, you can request an ongoing education meeting right from our Plan Resource Center. This feature gives you the benefit of scheduling education meetings when it s most convenient for you and your employees. 1 Registered representatives of ADP Broker-Dealer, Inc., an affiliate of ADP, Inc., One ADP Blvd., Roseland, NJ; Member FINRA. Enrollment Guides These items cover the key benefits of saving, the basics of investing and important information for enrollment and are customized according to your plan provisions. QUICK guide FULL ENROLLMENT GUIDE iplan. isave. ibenefit. Employee Education and Communications Program 9

Enrollment Materials Materials generate interest in your plan, inform of changes and raise awareness of the upcoming enrollment meeting. Poster, email invitation and benefits insert Use these materials to increase awareness of your plan and generate interest in attending the meeting. Online enrollment seminar This presentation outlines the benefits of saving through the plan. Accessible anytime at www.mykenrollment.com and on the participant Web site. 10 iplan. isave. ibenefit. Employee Education and Communications Program

WORKSHOPS AND MATERIALS Workshops offer continued direction and teach skills and concepts essential to the pursuit of future financial security including: early enrollment, sufficient deferral, asset allocation and account management. Supplemental materials use straightforward concepts that can be easily understood and applied to managing the retirement planning process and helping employees maximize their plan benefit. Motivational Education

Workshops Workshops teach important planning concepts and help employees get answers to their questions about retirement planning. Each workshop package includes an emailable invitation, workshop presentation and handout materials. Saving for your future is as easy as 1, 2, 3 Interactive workshop teaches attendees how to: Calculate a retirement savings goal Find ways to save, and save more Make retirement planning easier using plan tools Track progress toward a savings goal GetTING Started Planning for Retirement Provides a review of the benefits of saving through the 401(k) plan and the importance of planning for retirement. It is designed for younger employees to help them overcome the challenges they may face with managing their finances. Attendees learn: Saving strategies for today and tomorrow ADP Retirement Services 99-1437-089 Why it s important to save and how the company plan can help How to get started saving How to create a retirement plan Asset Allocation Can Be Easy Offers an overview of investing principles and teaches attendees how to: Conduct an account review Determine their investor type Create a diversified asset allocation for their goals Rebalance their account Make retirement planning easier using plan tools Track progress toward a savings goal 12 iplan. isave. ibenefit. Employee Education and Communications Program

Asset allocation and investing for the long-term Workshop teaches the basics of asset allocation and seeks to improve investing decision making and promote the use of plan tools. Attendees learn: What asset allocation is and why it is important ADP Retirement Services 99-1512-089 How to create a diversified asset allocation that s right for their personal needs and goals About plan tools that can make asset allocation easy Other considerations that can help them stay on track toward their retirement goals Three easy steps to getting ready for retirement Interactive workshop for participants approaching their retirement years. It is designed to help them understand the financial challenges they may face in retirement and teach simple ways to prepare. The meeting helps attendees: Create a retirement plan Review their asset allocation to ensure it will meet their future goals Develop a retirement paycheck for their plan distributions Review the account tools available in the plan The Roth 401(k) Option The Roth 401(k) option Pay taxes now, rather than later 99-0898-079 This educational workshop helps your employees understand the Roth 401(k) option and decide if it s right for them. It reviews: Tax diversification and the Roth 401(k) option How to calculate a retirement savings goal Techniques for tracking progress toward a goal Resources for getting more information iplan. isave. ibenefit. Employee Education and Communications Program 13

Workshops Staying on track can be as easy as 1, 2, 3 staying on Track can be as easy as 1 This workshop provides an overview of the technology available to plan participants through the www.mykplan.com website and the automated voice response system. The content covered includes: Account access options Transactional capabilities on the website Quarterly account statement content Planning tools and calculators available on the web Market volatility and retirement planning investing for retirement Volatile markets and retirement planning ADP Retirement Services 71 Hanover Road, Florham Park, NJ 07932 99-1164-089 08/2009 This brief educational module reviews common investor mistakes during times of chaotic stock market activity and strategies that can help participants keep their retirement plan on track. Offers historic insight on the stock market and how it can be used for successful investing*: Focusing on retirement goals Investing appropriately Dollar cost averaging Diversification Automatic Account Rebalancing *None of ADP Broker-Dealer, Inc., ADP, Inc. or any of their affiliates provide tax or legal advice to plans or participants. 14 iplan. isave. ibenefit. Employee Education and Communications Program

99-1551-089 401(k) Day Promotional Materials Poster, postcards and emails Your company sponsored retirement plan has all the ingredients to mix up a sweet retirement: Promotional materials to raise awareness and improve plan results. tax-advantaged savings services that help make saving easy convenient payroll deductions an account you can take with you This tasty combination can get you on your way to a more secure financial future. Treat yourself to the taste of future financial security! Go to www.mykplan.com to enroll in your plan and mix up your recipe for success! 99-1628_kday_pc1final_089_v4.qxp 8/21/09 2:47 PM Page 1 poster postcard iplan. isave. ibenefit. Employee Education and Communications Program 15

Campaign Materials Targeted postcards and email communications Postcards can be mailed to employee homes or otherwise distributed. Our range of topics allow you to target your employees based on age and behavior. These communications, along with the following topics, are also formatted to be sent via email: Automatic Account Rebalancing Feature Roth 401(k) Option Saver s Tax Credit Maximum IRS Limits ENROLL match save smart catch up CAMPAIGN POSTERS Complete your communications campaign with a poster that reinforces your program message. The posters can be used with the postcards, ongoing education workshops and enrollment materials to reinforce important messages and drive behavior. INCREASE CONTRIBUTIONS GuidedChoice TM Communications* 99-1398_GC_postcard_no BRC_049_v4.qxp 4/13/09 3:25 PM Page 1 Does planning for your retirement in these uncertain times leave you feeling uncertain about your future? Brochure, poster, postcard and email communications These communications explain the GuidedChoice advisory services and managed accounts feature and benefits. postcard * GuidedChoice/GuidedSavings materials are created by and are the property of GuidedChoice TM Asset Management, Inc. ADP Broker-Dealer, Inc., ADP, Inc. and their affiliates are not affiliated with GuidedChoice, nor are they responsible for the accuracy and/or content of its materials. 16 iplan. isave. ibenefit. Employee Education and Communications Program

Educational Brief Brochures Taking a loan Explains the plan loan feature and reviews the potential penalties and impact of borrowing from retirement savings. Market Volatility Reviews investing strategies for periods of uncertain stock market conditions. 1 Managing and accessing your retirement account Outlines account resources and tools available for ongoing management through the Web site and Voice-Response System. Target retirement date funds 2 Reviews target retirement date funds, who they may be right for and how they offer a one-fund solution to a diversified allocation. Using diversified, pre-mixed investment options to create your asset allocation (ASSET ALLOCATION funds) Outlines the types of pre-mixed, diversified funds offered to our plans, and how this simple approach can create a diversified asset allocation to meet retirement needs. The Roth 401(k) Option Describes the Roth 401(k) feature and its benefits, and directs participants to their Web site for accessing tools that can help them determine whether saving through the Roth 401(k) feature is right for them. investing for retirement Asset allocation can be easy with target retirement date funds 1 None of ADP Broker-Dealer, Inc., ADP, Inc. or any of their affiliates provide investment advice. 2 The target date of a target date mutual fund is the approximate date when an investor plans to begin withdrawing their money from the fund. The principal value of a target date fund is not guaranteed at any time, including at the target date. iplan. isave. ibenefit. Employee Education and Communications Program 17

management tools Account Reporting We strive to provide your participants with account information that is accurate, timely and useful in helping them to make informed decisions about their retirement planning.

mykplan.com Web site This interactive web site allows access to important account information, transactional details, and investment performance. Participants can also: Conduct transactions and review account information Make account changes Research plan investments and get prospectuses Access the quarterly account statement Elect the Save Smart and automatic Account Rebalancing features Access the GuidedSavings SM tool Read the quarterly newsletter Industry information, interactive planning tools and calculators, news and resources are also available. Quarterly account statement Quarterly newsletter* Our easy to read format provides a clear overview of account activity to help participants make decisions about their retirement. Reports account balance, allocation and activity data, performance for investments offered in the plan, and personal rate of return data. The newsletter addresses a variety of key retirement planning topics. * The articles and opinions in the newsletter are for general information only and are not intended to provide specific advice or recommendations for any participant. iplan. isave. ibenefit. Employee Education and Communications Program 19

Sample Two Year The goal of the iplan.isave.ibenefit. employee education program is to support your plan goals and help guide your employees to better retirement outcomes. The sample strategy included on the following pages was created to remedy typical plan issues and employee behaviors. Your plan s education and communications strategy should take into consideration the unique attributes of your employees, your business and support your company goals. 20 iplan. isave. ibenefit. Employee Education and Communications Program

Simple and easy to understand For years, participant communications focused on providing education to change employees into experienced investors. But the reality is, most employees don t have the time or interest in becoming financial experts they want straightforward, easy to understand communications that help them with their retirement planning. Action-oriented Our iplan communications program gives your employees clear action steps throughout every phase of retirement planning from enrolling in the plan to planning their retirement paycheck. Every workshop and communication focuses on driving appropriate retirement planning behavior. Focuses on your employees Needs and behaviors Though all plans are unique, often employee behavior toward saving for retirement is similar. Typically, most employees exhibit similar behaviors that require: encouragement and overcoming inertia to start saving, motivation to save at an adequate deferral rate, and education to create an asset allocation appropriate for their retirement savings goals. iplan. isave. ibenefit. Employee Education and Communications Program 21

iplan. isave. ibenefit. Education campaigns for your employees 1 year one meeting invitation POSTER Plan Enrollment/Conversion Our enrollment and retirement planning materials have been built to make it easy for your employees to plan for retirement. We don t overwhelm with a lot of materials ours are concise, easy to understand and motivational. Our focus is to provide the key information your employees need to plan for their future.

workshop enrollment guide Motivational Campaigns When designing programs for your plan, we will examine the factors that make your workforce unique so we can create an effective experience for your employees.

2 year two WORKSHOPS The objective of every iplan workshop, communication and on line tool focuses on: Increasing participation and saving rates Improving asset allocation decisions Guiding participants toward making better choices targeted campaign Continuous Education Programs and Communications Providing participants with multiple communications over time is essential to helping them make informed decisions about planning for their retirement.

ongoing targeted workshop newsletter account statement

How to meet the plan of your Is your plan attracting the results you re looking for? Automatic plan features can help you build a better plan from the inside out. Offering a 401(k) plan is a proven way to attract and retain talent. But your retirement plan is only as successful as your employees make it. Employees with a plan have a valuable benefit: a company sponsored retirement plan that makes it easy to save for retirement. However, with limited time and resources, how can you motivate your employees to participate in the plan and maximize its benefits? A number of factors can contribute to the retirement planning deficiencies that exist today, including lack of time, knowledge and interest in learning about investing, concerns about the risks of investing, procrastination to start saving and lack of self discipline to follow through on account management. ADP Retirement Services can help plan sponsors design defined contribution plans that meet the needs of their employees. When deciding how to structure your plan, it s important to analyze and consider employee behaviors and attitudes toward saving and investing, along with those demographics that could impact your plan s success. Embedding automatic features into your plan can help you achieve plan goals and positively impact participant behavior passing nondiscrimination tests, increasing participation or deferral rates and improving investing decisions. The Pension Protection Act of 2006 has helped pave the way for 401(k) automatic enrollment and plan sponsors adopting auto features have seen firsthand the benefits and results of incorporating these plan features. Part of the problem: too many decisions With so many decisions to make, it s no wonder employees often do nothing: Is now the right time to start? How will saving affect my paycheck? Can I afford it? What is my savings goal? How much do I need to save to meet my goal? Should I save pre-tax, after-tax or Roth? What s the right portfolio allocation for me? What investments should I choose? 26 iplan. isave. ibenefit. Employee Education and Communications Program

THE SOLUTION: Finding relief through plan design Automatic enrollment Automatic savings increases Target retirement date funds Risk-based allocation funds Advice services Something for everyone: improved saving and nondiscrimination test results Automatic features like auto enrollment and auto savings increases can improve nondiscrimination test results by getting moderately and lower-paid employees to participate and raise the contribution rate of savings. If these workers don t participate, it can depress the non-highly compensated employee s (NHCE) average contribution level and your plan could potentially fall short of test thresholds. Failure to pass the nondiscrimination (ADP or ACP) tests may require either corrective action like returning a portion of contributions to highly compensated employees (HCEs) or making special employer contributions for non-highly paid employees; adding preventive restrictions on future HCE contributions is also a possibility. Automatic enrollment and savings increases may help avoid such scenarios. In addition, the Pension Protection Act of 2006 allows plans to avoid nondiscrimination and top heavy testing altogether should they meet certain employee contribution and safe harbor requirements. After all, a plan that is unsuccessful at passing non-discrimination testing may simply reflect a design that is failing to serve the majority of its employees. Altering the plan to serve the individuals who lack the resources to manage their retirement savings on their own may help not only with your plan test results but also offer your employees a better retirement outcome. iplan. isave. ibenefit. Employee Education and Communications Program 27

IMPACT of 401(k) Auto Enrollment 100 DEFAULT IS NONPARTICIPATION DEFAULT IS PARTICIPATION Participation % 80 60 40 20 35 86 19 Females Hispanic Under $20K in earnings Actual results from employees with between 3 and 15 months of tenure. Study by Brigitte Machian, University of Pennsylvania s Wharton School, and Dennis Shea, United-Health Group. 75 13 80 Support for automatic features Research and perhaps your plan experience shows that often many do not save though they know they should, and others can be overly optimistic of their ability to invest or afraid to invest because of fear of potential losses. Additionally, once enrolled, participants rarely perform necessary account management over the long term like increase their contribution rate and rebalance their account regularly. The success of automatic enrollment has been remarkable: studies indicate it raises the rate of plan participation from a national average of about 75 percent of eligible employees to between 85 and 95 percent.* The most dramatic change is seen among workers with the lowest participation rates. Without programs to overcome behavioral issues, many companies may face a workforce of employees that are not prepared to retire. *The Retirement Security Project, The Automatic 401(k): A Simple Way to Strengthen Retirement Savings, March 2005. 28 iplan. isave. ibenefit. Employee Education and Communications Program

You have the capability to create a plan that meets the needs of your employees and attract the plan results you ve been looking for. Rather than attempt to change poor saving decisions, changing behavior through automatic features like automatic enrollment, automatic savings increases and default investment options that use funds with a built-in asset allocation eliminate procrastination attributed to indecision: they get employees enrolled in the plan, investing appropriately and saving at adequate levels. Plan sponsors can create a retirement plan design that helps employees make important financial decisions that benefit their retirement savings goals by changing how decisions are made. In your ADP plan, you have the capability to create a plan that meets the needs of your employees and attract the plan results you ve been looking for. The following automated options can be integrated into your plan design to help you achieve the results you ve been looking for: Automatic enrollment Automatic enrollment and other automatic features harness employee inaction and put it to work for your plan: employees are automatically enrolled in the plan unless they act to opt out of enrollment. This program also takes another important decision from the employee: at what rate to start saving. Many plans have found that the automatic enrollment process enrolls individuals who would have elected to join the plan anyway if they d found the time and energy to make an active choice. Some sponsors even up the ante by electing to set the automatic enrollment rate at the level where participants would maximize their full plan match benefit, a move that is in the best interest of the employee. Automatic savings rate increases through Save Smart The same inertia that affects enrollment in the plan also can cause issues with savings rates or participants actively increasing their savings rate so they are saving adequately for their future income replacement needs. Often, even with those who actively enroll in their plan, participants rarely revisit their account to make changes like increase their contribution rate. Though automatic enrollment solves the issue of employees not saving, there still remains the question of whether the default enrollment deferral rate will adequately provide for future needs. Thus, savings rates may be maintained at too low a rate. Automatic acceleration of savings provides the next-step solution: an automated deferral increase that takes place regularly over time. A predetermined ceiling can be set for the increases, and the program would require participants to opt out. iplan. isave. ibenefit. Employee Education and Communications Program 29

Automatic investment approaches For those reluctant to make investment decisions, automated portfolio selection and ongoing management offers an easy way to help with the process of choosing plan investments and ongoing account management. They simplify decision making choose your retirement date or choose your risk tolerance and are likely to improve investment elections for many. Advice services do it all: set a savings rate, choose funds, rebalance and adjust over time or as an individual s needs change. TARget retirement date funds as default investment option 1 These funds offer a diversified allocation using the target retirement date fund designed for an anticipated retirement timeframe. These funds are based on a time frame until retirement and typically invest in a mix of stock and bond funds that gradually become more conservative over time and reach a final allocation at retirement participants simply pick a date or a date is selected for them based on their age to make their selection. Risk-based funds as default investment options These funds offer a variety of asset allocation strategies based on an investor risk profile, such as conservative, moderate, or aggressive. Participants would simply choose the fund that most closely matches their level of comfort with risk for their investment goals and situation. The fund s investment strategy would remain relatively constant over time and the participant would need to change their fund as their risk level or needs change. Managed account services from GuidedChoice TM GuidedSavings SM, the personalized investment advisory program provided by GuideChoice TM Asset Management Inc., can provide your employees with the answers they need, like how much to save and where to put that savings, along with ongoing review and adjustment of their account. 2 GuidedSavings provides as little or as much assistance as each participant prefers. This is accomplished through a user-friendly online tool that provides high quality, independent investment advice and professional account management. 30 iplan. isave. ibenefit. Employee Education and Communications Program

Optimize your plan When you have decided to add automatic features to help drive results and maximize your plan s effectiveness, we can help. Our team of Education Specialists will provide your employees with personalized support to help your employees plan for a secure retirement, and appropriate communications will be provided to inform employees of the automated plan features. Our iplan.isave.ibenefit. program will educate your employees about the plan benefits and important retirement concepts while your built-in automated features help them optimize their plan to its fullest potential and secure a successful financial future. Many plan sponsors are taking a mix and match approach to automatic features to address the specific needs of their organization and workforce. Contact your ADP service manager today to help you create a plan that s right for your company s unique needs. 1 The target date of a target date mutual fund is the approximate date when an investor plans to begin withdrawing their money from the fund. The principal value of a target date fund is not guaranteed at any time, including at the target date. 2 GuidedSavings SM is a service mark of GuidedChoice Asset Management, Inc. None of ADP Broker-Dealer, Inc., ADP, Inc. or any of their affiliates is affiliated with GuidedChoice, nor do they endorse GuidedChoice services or products. Plans wishing to offer this participant advisory service may engage GuidedChoice to make available investment advisory and management services to plan participants. ADP Broker-Dealer, Inc., ADP, Inc. and their affiliates do not offer investment, tax or legal advice, and nothing in these materials is intended to be, nor should be construed as, advice or a recommendation for a particular situation. Please consult with your own advisors for such advice. iplan. isave. ibenefit. Employee Education and Communications Program 31

iplan.isave.ibenefit. Program Dedicated Team of Education Specialists 1 Key Features 35 licensed specialists nationwide Proven success shown in 13% increase in participation rates after meetings 2 The Benefit to You Focus on enrolling employees and driving plan participation Helps you meet your fiduciary responsibilities Compelling Communications Program Drives interest in the plan during the pre-enrollment stage and inspires employees to sign up for the plan Continually encourages employees to maximize the benefits offered by your plan Targeted messaging that fits your employee base Communicates to employees why they should join the plan and how they benefit Automatic Programs Helps eliminate employee inaction Investment selections driven by your plan s requirements 3 Option to make available professional investment advisory services 1 Education Specialists are registered representatives of ADP Broker-Dealer, Inc., an affiliate of ADP, Inc., One ADP Blvd., Roseland, NJ; Member FINRA. 2 Value Proposition Study March 2008 conducted by Chatham Partners. 3 Investment options are available through ADP Broker-Dealer, Inc., an affiliate of ADP, Inc., One ADP Blvd., Roseland, NJ; Member FINRA. For complete information about a particular fund, please read the fund prospectus (or information statement, in the case of commingled funds). You should carefully consider an investment option s objectives, risks, charges and expenses before investing. The prospectus (or information statement, as applicable) contains this and other important information about the investment option and investment company. Please read the prospectus/information statement carefully before you invest or send money. ADP Retirement Services 71 Hanover Road Florham Park, NJ 07932 The ADP Logo is a registered trademark of ADP, Inc. Experience. Working for you. is a registered trademark of ADP, Inc. ADP ACCESS is a service mark of ADP, Inc. Save Smart is a registered trademark of ADP, Inc. iplan.isave.ibenefit. is a registered trademark of ADP, Inc. All other trademarks and service marks are the property of their respective owners. 99-1590-0310 Printed in USA 2010 ADP, Inc.