Online Enrollment with Automatic Enrollment and deferral processing

Online Enrollment with Automatic Enrollment and deferral processing

Topics Covered 2 » » Available Features Online Enrollment » Adding Online Enrollment to your plan » Deferral Changes only » Automatic Enrollment » Overview » Sample document » Deferral Feeds » Required steps » Layouts » Participant website screens » » » Overview Plans under PPA Retirement Solution Enrollment Process Sample documents Participant website screens » Automatic Enrollment Opt-Out » Questions » Participant website screens

Available Features 3 » 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). Their participants can enter their subsequent deferral changes via the participant web site or via our automated phone system prior to their plan entry. » Automatic Enrollment » Automatic Enrollment provides a way for the plan to enroll their participants with a set deferral % and allow the eligible employees to continue with their enrollment, optout, or change their deferrals via our automated phone system prior to their plan entry.

Online Enrollment Overview 4 » 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 fed back to the employer for their review and 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 » For Online Enrollment to work, the payroll file should include the following fields in addition to the regular indicative information being provided for each employee: » Eligibility Indicator » Participation Date » These are the 2 fields that work together to determine when an enrollment PIN letter is sent to newly eligible employees » ISIS can be set up to calculate eligibility on behalf of the plan sponsor » Please note: 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 5

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 » » 6 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”) Note: Trial New Eligible: The file name in the PSC will begin with: GQ 19 OEFP. TRL Trial New Eligible Reject: The file name in the PSC will begin with: GQ 19 OEFP. REJ. TRL

Online Enrollment Files New Eligible File: » We send this file to Met. Life confirming the eligible employees who will be receiving enrollment PIN letters for the next enrollment period. » Met. Life will send enrollment kits to each of the participants on the New Eligible File Note: » Trial New Eligible: The file name in the PSC will begin with: GQ 19 OEFP » Trial New Eligible Reject: The file name in the PSC will begin with: GQ 19 OEFP. REJ 7

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 is generally given to these newly eligible employees about the same time as their letters are mailed. 8

Sample Online Enrollment PIN 9

Deferral Recordkeeping 10 » A deferral feed contains all deferral information entered or changed during the most recent period 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 » 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 5/1/08. Changes through midnight of 4/30/08 will appear on the 5/1 report. 11

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. The file will include changes and new deferrals only. 12

Deferral Feed » 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 13

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 05 -MAY-2008 01: 25: 27 AM 28 -APR-2008 through 04 -MAY-2008 GQ 19 OEDF. ######-01. A 20080504. 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

What Prevents a Newly Eligible Employee from Appearing on a Trial/New Eligible File? This is one of the most common questions that we receive from plan sponsors when utilizing online enrollment! If any of the following exist on a participant account, they will NOT appear on a Trial New Eligible or a New Eligible file: » » » » » 16 An Eligibility Indicator = N A current deferral (including a “ 0” deferral) A balance with regular (“REG”) payroll contributions in it A termination date A future dated address A missing participation date A defaulted address (will show on reject file) An ‘enroll notification date’ indicating they were reported on a previous file #1 Offender: An invalid participation source!! (A participation exists but we did not receive it from the plan sponsor or through our automated eligibility calculation feature. )

Set Deferral to Zero Feature » There are certain situations where a participant’s deferral will automatically be changed to zero and reported back to the plan sponsor on the next deferral feed. They are: » “N” Eligibility Indicator: If a person’s eligibility indicator is changed from a “Y” to an “N”, their existing deferral will immediately change to zero. » Hardship: A hardship withdrawal will cause a current deferral to change to zero if a suspension period is set up on our recordkeeping system. » The zero and the hardship end date will be reported on the deferral feed » The zero and the hardship end date will be reported to the participant » Rehire: When a rehire date is added to our system, the person’s deferral will change to zero and their account will be treated as a new hire. (Will appear on the Trial and New Eligible files, they’ll receive an Enrollment PIN letter, be prompted to enroll on the Web/VRS, etc. ) » Warning message Plan Sponsor will see when submitting a contribution on behalf of a participant that is currently in a hardship status: » W 1001 WARNING: Hardship taken with a contribution suspension end date of [DATE] 17

Adding Online Enrollment To Existing Plans

Online Enrollment Plan Set Up - Step 1 » Complete Enrollment Required Documentation: » Online & Automatic Enrollment Order Form – Set Up Document (PTS Form) » This form can be completed simultaneously with online enrollment set up. 19

Online Enrollment Plan Set Up - Step 2 » 20 The Set Up Call » Contact Plan Services or your Met. Life Account Manager to set a conference call: » Calls should be scheduled 24 hours in advance at a minimum. » Plan Services or the Account Manager will coordinate set up of call with Plan Technical Support (PTS) Project Team. » Calls generally last approx. 1 hour » Call will consist of: – Brief overview of the features – Completion of Enrollment and Deferral Increase Election Form (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 or review new PDI file – Timeline/Due Dates » Participants in the Set Up Call can include: Plan Sponsor, Met. Life AE, Met. Life Account Manager, Assigned PTS Representative

Deferral Seed File Layout Field Name Maximu m Field Length Format and Field List Information Other Notes Employee SSN 11 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 21 99999 or 999 -99 -9999 MM/DD/YYYY Required only if the plan is divisional

Online Enrollment Plan Set Up - Step 3 » Plan Sponsor submits: » Via email to methome@retirementpartner. com: » Completed and Signed Online & Automatic Enrollment Order Form – Set Up Document » Deferral Seed file » Contact assigned PTS Representative to upload the file through the PSC » 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. 22

Online Enrollment Plan Set Up - Step 4 » Upon receipt of completed information, the set up will be completed within 3 - 5 business days. » This timeframe can increase if under-participating** eligibles need to be automatically enrolled. In these cases the turnaround time can be up to 8 - 10 business days. » **Under-participating eligibles: these are participants currently deferring less than the plan’s default deferral percentage 23

PDI Deferral Changes Only The Web Screens…

Change Deferrals 25

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PDI Online Enrollment New enrollment web screens…

Online Enrollment 30

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Questions? 33

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Automatic Enrollment

Automatic or Negative Enrollment Overview » 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 election will be withheld from their paycheck. » How Does It Work? : If a plan is using full online enrollment with deferral recordkeeping, our 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 or opt out of the plan. If they do nothing, the default deferral will be fed 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 everyone, employees hired after a specified date, or employees with a participation date after a specified date 37

Automatic Enrollment Plans Under PPA » » » 38 Automatic Contribution Arrangements – ACA Eligible Automatic Contribution Arrangements - EACA Qualified Automatic Contribution Arrangements – QACA 90 day Opt-Out Right Notice Requirements QDIA Requirements

Automatic Retirement Solution While we have always offered an automatic enrollment feature, we have worked to enhance this functionality to reflect the provisions of the PPA. » Automatic Enrollment – Enhanced participant web screens to » » 39 streamline the account access and opt out processes. Automatic Increases - Ability to allow a plan to automatically increase the deferrals for participants on an annual basis by a selected percent to a selected maximum percent. Currently the increase will occur at the beginning of each plan year. Notifications - Ability to track a plan's election to establish an ACA, EACA or QACA. We can also track if a plan has selected a QDIA. The automatic enrollment PIN letter includes: current deferral, scheduled increase percentage, default allocation and opt out information. Customization for the required notification for ACA, EACA or QACA.

Automatic Enrollment Process » In order to implement our automatic enrollment features (with or without QDIA), the plan sponsor needs to utilize full/partial PDI and deferral recordkeeping. Once these are in place, the plan sponsor needs to do the following: » If your document does not reflect the new provisions of PPA, plans will need to provide a Board Resolution showing good faith compliance with the new requirements. » Complete the Automatic Contribution Arrangement Election form (Met. Life AE to provide). » Contact Plan Services to schedule a conference call to review the plan set up and any necessary file changes that may be required. 40

Automatic Enrollment Process » Plan Sponsor sends initial notification to affected newly eligible employees » Trial New Eligible File: » Plan Sponsor will receive the “trial new eligible” file from the record keeper. 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: » This file contains all eligible employees who will receive » 41 enrollment letters with their PIN and instructions on how to enroll via the Web site or Customer Service Line Met. Life will send each of the employees an enrollment kit

Automatic Enrollment Process 42 » When the Enrollment PIN generates for a newly eligible participant, 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 our system ensures a person participates a full 12 months before being increased

Automatic Enrollment Process 43 » Enrollment PIN letters sent to participants. » 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 Plan Service Center. » Plan will continue to send their electronic payroll file (PDI File) every pay period. » Annual Notification letters will be sent to all eligible employees approx. 30 days prior to each plan year end. This notification can be turned off if the employer chooses to provide this on their own. » If the plan elects annual scheduled increases, participants who elect to remain in the default deferral will remain at the minimum deferral for 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

Sample PARPIN Letter Page 1 44

Sample PARPIN Letter Page 2 45

Sample Annual Notification Letter - optional 46

Automatic Enrollment Web screens - Opting out of the plan

Automatic Enrollment 48

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How do I sign up? Please contact your Met. Life Account Executive. They will work with you and the Methome Account Manager to help establish this new feature to your plan. You will need to do the following: » Determine which feature of Online Enrollment best suites your plans needs » Establish a timeline- your Methome AM and Met. Life AE will assist you with this » Fill out the Online Enrollment packet- this will be provided to you once you have determined if this feature works for you. A Plan Technical Rep will go over each question with you on a scheduled call. 53