Online and Automatic Enrollment 1 Available Features 2

Online and Automatic Enrollment 1

Available Features 2 » Online Enrollment » Online enrollment provides a way for eligible employees to enter their investment election information via the participant web site or via our automated phone system prior to their plan entry. » Online Enrollment with Deferral Recordkeeping » Online enrollment with deferral recordkeeping provides a way for eligible employees to enter their investment election and deferral information via the participant web site or via our automated phone system prior to their plan entry. » Deferral Recordkeeping » Deferral recordkeeping provides a way for a plan sponsor to control initial enrollment by collecting initial deferral information and entering it into our system via their payroll file or directly in the Plan Service Center (PSC). » Participants can enter their subsequent deferral changes via the participant web site or via our automated phone system

Online Enrollment Overview 3 » All eligible employees are added to the system via a payroll file or by direct entry into the PSC » Eligibility indicator and participation dates determine who is eligible for each plan entry date. » A report is sent to the plan sponsor to confirm newly eligible employees prior to mailing Enrollment PIN letters. » Enrollment PIN letters are mailed to newly eligible employees just prior to open enrollment » Enrollment can be completed through either the Web or the automated phone system (VRS) » Deferral information is reported to the employer prior to each payroll, allowing them time to update their payroll system so deferral deductions can begin. The report is delivered via the PSC. The report can be used for manual update or can be provided as a file for direct upload to a payroll system. » Note: Periods when enrollment and deferral changes can occur can be restricted as needed on the system.

Online Enrollment 4 » For Online Enrollment to work, the following fields are required for every employee: » Eligibility Indicator » Participation Date » These are the two fields that work together to determine when an enrollment PIN letter is sent to newly eligible employees » Eligibility Indicator and Participation Date can be calculated if not provided by the Plan Sponsor

Online Enrollment » If an employee is in an eligible class (not in an excluded class) and they will become eligible at some point in time, the eligibility indicator should always be Y. Participation date is also required. » If an employee is in an excluded class, the eligibility indicator should always be N. » PDI notes: » If a plan’s payroll file only includes eligible employees (no excluded classes), we can automatically code each account with an eligibility indicator = Y during the file mapping process. » For those plans with immediate eligibility, we can also map hire date = participation date. **If a plan is not submitting a payroll file, this information can be added online through the PSC. 5

Online Enrollment » If a plan is using the System Eligibility Calculation feature*** they only need to provide an Eligibility Indicator and Participation Date if they are sending excluded class employees on their on-going payroll. » If the payroll file includes excluded class employees, Eligibility Indicator/Participation Date on the payroll file should be: » Blank (Null) for all eligible employees » An “N” Eligibility Indicator for all employees who are in an excluded class. » Participation Date can be blank (null). If an employee moves from an excluded class to an eligible class, include “Y” Eligibility Indicator and Participation Date for that employee OR remove the “N” Eligibility Indicator from the payroll file and make the change in Eligibility Information manually in PSC. *** Date of Birth and Employment Dates are required on the payroll file. If actual hours method is used, hours must also be provided on each payroll file. 6

Online Enrollment Files Trial New Eligible File: » We send this file to the plan through the PSC prior to each enrollment period. This file identifies the name and address of all employees that we show as eligible in the next enrollment period. » It provides the plan sponsor the opportunity to verify that all eligible employees are appearing on the file and to make any necessary changes through the PSC prior to the generation of enrollment PIN letters. » Any employees who have an invalid address on our system will also be identified at this time. The plan sponsor will be able to correct their address to ensure these employees receive their enrollment PIN letters. (Contained in a “Reject File”) 7

Online Enrollment Files New Eligible File: » 8 We send this file to the plan sponsor through the PSC confirming the eligible employees who will be receiving enrollment PIN letters for the next enrollment period.

Enrollment PIN Letters We will send Enrollment PIN Letters to all employees appearing in the New Eligible file. » These letters include: – Instructions on how to enroll on the Web/VRS – Employee’s PIN – Employee will only need to enter allocations and deferrals (if applicable) Enrollment information should generally be given to these newly eligible employees about the same time as their letters are mailed. 9

Deferral Feed 10 » A deferral feed contains all deferral information entered or changed during the most recent period and will be sent to the plan sponsor » This feed can be set up to include all deferrals every time it runs if that is preferred by the plan sponsor » The report format can be used for manual updates to the payroll system and the electronic file format can be uploaded directly into a client's payroll system.

Deferral Feed 11 » Generally the initial deferral for a participant will be reported to the employer on the 1 st deferral feed that runs after their participation date. » Once a person has been reported initially on a deferral feed, any future deferral changes will show up on the next deferral feed that is run. » Deferral changes through midnight of the previous day appear on the deferral report i. e. , Run date of the report is 4/1. Changes through midnight of 3/31 will appear on the 4/1 report.

Deferral Feed Considerations (If FASCore is the Deferral Recordkeeper) 1. Timing of Delivery: How far in advance of each payroll would the plan sponsor like to receive the report 2. Format » Report: Report is easy to view and print for manual update to your » payroll system Electronic: Format ready for upload directly into a payroll system 3. Sort Order: » Social Security Number » Last Name » Employee ID (if provided on your payroll file) 4. PSC User to Receive the File 5. File will generate even if there are no new deferrals to report. The client will receive an email in these situations as well. 12

Deferral Feed 13 » The employer will be emailed when the deferral report is available to view or download in the PSC. » These emails will be sent from: techsupport@retirementpartner. com » The employer reviews the report for accuracy and then updates the payroll system so payroll deductions can begin.

Sample Deferral Email Notification Each time a deferral feed runs, an email** will be sent to the designated PSC recipient: A Deferral file is now available for download from either the Plan Service Center or your directory for further processing by your payroll system. Processed Day Processed Date Processed Time Processed Dates Processed File Total Records Processed : : : Monday 10 -APR-2008 01: 25: 27 AM 01 -JAN-2010 through 10 -JAN-2010 GQ 19 OEDF. ######-01. A 20051205. A 0125. txt 15 If this e-mail indicates that zero (0) records were processed, the file will not contain any participant data. You may keep this file for your records as needed. If you need any assistance, please contact Plan Technical Support. **This email will also includes PSC download instructions. 14

Sample Deferral Report 15

Automatic Enrollment 16 » What Is It? If an employee does not opt out of the plan or actively elect a deferral, they will automatically be enrolled in the plan’s default allocation(s) and a default deferral percentage will be withheld from their pay check. » How Does It Work? If a group is using full online enrollment with deferral recordkeeping, the recordkeeping system can be set up to automatically assign the plan’s default deferral and allocation(s) to newly eligible employee accounts. » These employees will have a chance to go online to change their deferral, allocation, or opt out of the plan. If they do nothing, the default deferral will be reported on the deferral feed to the employer once their participation date is reached and their “wait days” have passed. » This feature can be set up for » All employees » Those employees with a specific participation date or later » Those employees with a specific hire date of later

Automatic Enrollment Set Up To automate this process the following information is required: 17 » Does the plan sponsor intend to use our automation of this plan feature? » IF SO, they must use online enrollment with deferral recordkeeping for this automation to work. » IF SO, they must use PDI which is to include at least all eligible employees from date of hire. » The plan’s: » Default deferral percentage » Default investment option (this would include target date funds), including an indication if this is a QDIA » Automatic Contribution Arrangement (ACA) designation » Pre-PPA, ACA, Eligible ACA (EACA), Qualified ACA (QACA) » Does the automatic enrollment feature affect all enrolling eligible employees or just new employees? » If only new employees, we will require the Hire Date or Participation Date after which all employees are included in automatic enrollment. » Will all participants currently deferring less than the plan level default deferral be increased to the plan default at the time of automatic enrollment set up?

Automatic Enrollment Set Up 18 » What is the plan’s initial notification requirement? Plans are required to provide at least 30 but no more than 90 days notice prior to automatic enrollment into the plan (known as “wait days” on the recordkeeping system). » Does the plan sponsor or FASCore intend on sending ACA and/or QDIA notices to newly eligible employees? » Automation only available for plans using automatic enrollment services » Initial ACA notices will be sent to the participant, as separate mailings, when the Enrollment PIN letter is sent » Annual ACA notices may be sent to either those participants that have a defaulted deferral or to all eligible employees » Language varies depending on the type of Automatic Contribution Arrangement » Automation of Qualified Deferral Invest Alternative (QDIA) notices are sent to participants on a weekly basis » Who will be the recipient of the Annual Notification Reminder? » Automatic Enrollment plan sponsors receive an email reminder to send participant notification of deferral information to eligible employees or to let them know that we are sending the notification on their behalf

Automatic Enrollment Set Up » 19 Who will be calculating eligibility? » If FASCore is calculating eligibility AND » The PDI file includes only eligible employees – Birth date and employment dates are required – Year to date hours are required if calculating eligibility based on actual hours worked – Eligibility indicator and participation date is not required » The PDI file includes employees in an excluded class – Birth date and employment dates are required – For all eligible employees, eligibility indicator and participation date must be blank – For employees in an excluded class, eligibility indicator = N – If an employee moves from an excluded class to an eligible class, include “Y” Eligibility Indicator and Participation Date for that employee OR remove the “N” Eligibility Indicator from the payroll file and make the change in Eligibility Information manually in PSC. » If the plan is calculating eligibility, then birth date, employment dates, eligibility indicator, and participation date is required » Eligibility Indicator = N for excluded class or Y for eligible class » If the PDI file only lists only eligible employees we can hard code the eligibility indicator to Y » If the plan has immediate eligibility, we can map hire date = participation date

Automatic Enrollment Overview 20 » Trial New Eligible File: » Plan sponsor will receive the “trial new eligible” file from the record keeper via the PSC. This file contains all eligible employees who are eligible to enroll during the next entry period. The plan will review this file to ensure everyone is eligible and that no eligible employee is missing. » New Eligible File: » Plan sponsor will receive a “new eligible” file from the record keeper via the PSC. This file contains all eligible employees who will receive enrollment PIN letters. » The Enrollment PIN letter provides » Employee’s PIN » Default deferral percentage » Scheduled deferral increase (if applicable) » Mention of default fund » Instructions on how to opt out or change their deferral via the Web site or the automated voice system (VRS) » The date the Enrollment PIN letters are generated is the date the participant’s default deferral is set up on the recordkeeping system

Automatic Enrollment Overview 21 » Initial ACA and/or QDIA notification is sent to newly eligible employees, if applicable » ACA and/or QDIA notices are sent as separate mailings at approximately the same time as the Enrollment PINs » The language on the ACA notices vary depending on the type of Automatic Contribution Arrangement » Automatic enrollment occurs approximately 30 days later, for employees who do not opt out of the plan or change their deferral elections » Plan receives deferral file feed via PSC » Plan will continue to send their electronic payroll file (PDI File) every pay period » Annual Notification letters will be mailed approximately 30 days prior to each plan year end. The ACA code determines who receives the notice: defaulted or all eligible employees.

Scheduled Increase 22 » If the plan elects annual scheduled increases, participants who elect to remain in the default deferral will remain at the minimum deferral for at least twelve months and will automatically be increased at the plan’s next scheduled increase date » The recordkeeping system will track this to ensure only appropriate participant deferrals are increased » Increases will occur on the 1 st day of the plan year.

Scheduled Increase Determination 23 » When the Enrollment PIN letter generates for a newly eligible employee, their default deferral is added AND their first scheduled increase is set up (if applicable) » The effective date of the scheduled increase is determined using: » The effective date of the default deferral » Example participant’s default occurred on 2/8/2008 » The plan’s wait days » Example plan’s wait days = 30 » Plan Year End » Example plan’s PYE = 12/31 » The effective date of the first scheduled increase is the 1 st day of the plan year following the effective date of the default deferral + the wait days + 12 months! » February 8, 2008 + 30 + 12 months = March 8, 2009 » Next 1 st day of plan year = January 1, 2010 » This is how ISIS ensures a person participates a full 12 months before being increased

Auto Enrollment – In Summary Participant is added to ISIS via the PDI File 24 Participant is picked up by Enroll PIN File (default deferral is added) Participant is picked up by New Eligible File FASCore Generates PIN Letter (ACA Notice & QDIA Notice, if applicable) Vendor, Institution or Plan Receives File FASCore mails PIN Letter (ACA Notice & QDIA Notice, if applicable) Vendor, Institution or Plan mails enrollment booklet

Auto Enrollment – In Summary Participant Receives Enrollment PIN and Enrollment Booklet (ACA Notice & QDIA Notice, if applicable) Participant changes deferral, allocation information, or opts out Participant takes no action Wait days pass Elected deferral is passed to the plan on the Deferral Feed Default deferral is passed to the plan on a Deferral Feed Deferral is recorded in the plan’s payroll system 25

Online/Automatic Enrollment Adding Feature To An Existing Plan

Online/Automatic Enrollment Plan Set Up: Step 1 » Employee information must be submitted in an electronic payroll file, also referred to as a PDI file. If a plan does not already submit a payroll file with the following required fields, they will need to have one created/adjusted. » Plan Technical Support (PTS) is available for assistance in this process » Eligibility and participation date are required fields for this process. The record keeper can calculate eligibility for participants within a plan if the plan will not be providing these fields. 27

Online/Automatic Enrollment Plan Set Up: Step 2 » Complete Automatic Enrollment Required Documentation: » Online/Automatic Enrollment Set Up Document (PTS Form) » Automatic Enrollment & Deferral Increase Election Form (if applicable) 28 » These forms can be completed simultaneously with automatic enrollment set up. » Assistance will be provided in completing the Online/Automatic Enrollment Set Up Document

Online/Automatic Enrollment Plan Set Up: Step 3 » 29 The Set Up Call » Contact your Account Manager to set a conference call: » Calls should be scheduled 48 hours in advance at a minimum. » The account manager will coordinate scheduling the set up of call with the Plan Technical Support (PTS) Online Enrollment (OE) Team. » Calls generally last approximately 1 hour » Call will consist of: – Brief overview – Completion of Online/Automatic Enrollment Set Up Document (PTS Form) – Review of Deferral Seed File requirements (See Layout, Next Slide) – If applicable, review of existing electronic payroll file (PDI file) if required fields are missing – Timeline/Due Dates » Participants in the Set Up Call may include: Met. Life staff member, Account Manager, Assigned PTS OE Representative, Plan Sponsor

Deferral Seed File Layout Maximum Field Length Format and Field List Information Employee SSN 11 99999 or 999 -999999 First Name 20 Middle Initial 1 Last Name 30 Birth Date 10 Company Division 10 Pre-tax Contribution Election Percent 4 99. 9 Only one percent or one amount should be provided Pre-tax Contribution Election Amount 8 99999. 99 for each individual employee 50+ Contribution Election Percent 4 99. 9 If applicable, only one percent or one amount 50+ Contribution Election Amount 8 99999. 99 should be provided for each individual employee After-tax Contribution Election Amount 8 99999. 99 for each individual employee After-tax Contribution Election Percent 4 99. 9 Only one percent or one amount should be provided Roth Contribution Election Percent 8 99999. 99 for each individual employee Roth Contribution Election Amount 4 99. 9 Field Name 30 Other Notes MM/DD/YYYY Required only if the plan is divisional

Online/Automatic Enrollment Plan Set Up: Step 4 » Met. Life staff member submits information via email to the account manager: » Signed Automatic Enrollment & Deferral Increase Election Form (if » » applicable) Signed Online/Automatic Enrollment Set Up Document (PTS Form) Deferral Seed file (if not provided at the time of the set up call) » NOTE: » Normally, completed forms and deferral seed file need to be received no later than 6 - 7 weeks prior to the starting plan entry date. » Reminder: EACA or QACA need to be established at year end 31

Online/Automatic Enrollment Plan Set Up: Step 5 » Upon receipt of completed information, set up will be completed within 5 business days. This timeframe can increase up to 10 business days if the following considerations need to be addressed: » Automatically enrolling under-participating eligibles. Under-participating » » » 32 eligibles are participants currently deferring less than the plan’s default deferral percentage. Establishing scheduled increases for prior defaulted participants. Adding target date default funds to existing participants with no allocations. Any other scenarios that require additional assistance from systems.