Communication Strategy SLS, Inc.

ROSE WALTZ

Communication Strategist

Agenda

SLS, Inc. 401k Plan Facts Impacted Metrics Objectives Audience Messages Tactics Measurement

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SLS, Inc. 401k Plan Facts

Number of Eligible Employees – 8,025Number of Employees contributing – 4,659Number who contribute at a rate < 4% – 3,500Eligible Employees not contributing – 3,366Participation Rate – 58%Actual Deferral Percentage (ADP) – 1.25%Highly Compensated Employees (HCEs) – 19HCEs receiving refunds of excess contributions – 14

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Impacted Metrics

Plan ParticipationParticipant Contribution LevelsNondiscrimination Test ResultsNumber of HCEs Receiving Refunds of Excess

Contributions

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Objectives

Increase Participation in SLS, Inc. 401k Plan by 10%.

Increase 401k Actual Deferral Percentage (ADP) for Non Highly Compensated Employees (NHCEs) to 3%.

Enable all Highly Compensated Employees (HCEs) to contribute to the 401k at higher levels without failing annual Plan nondiscrimination testing.

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Target Audience

The 3,366 Eligible Employees who do not currently contribute to the 401k Plan.

The 3,500 Eligible Employees who are currently contributing at a rate < 4%.

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Key Messages for Employees Not ContributingYou are eligible to participate in the SLS, Inc. 401k

Plan. Enrolling is easy; just go to www.retireonline.com or call 800-345-2345 weekdays between 7 a.m. and 8 p.m. Central time.

Did you know the SLS, Inc. 401k Plan has a 50% match on the first 4% of your compensation that you contribute to the Plan? If you contribute 4% SLS, Inc. will contribute 2%.

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Key Messages for Employees Contributing Less than 4%Think a 50% return on your investment is impossible?

It is possible if you contribute to the SLS, Inc. 401k Plan. SLS, Inc. provides a 50% match on the first 4% of your compensation that you contribute to the Plan.

To receive the maximum benefit of the match, just increase your 401k contribution to at least 4%. To increase your contribution, go to www.retireonline.com or call 800-345-2345 weekdays between 7 a.m. and 8 p.m. Central time.

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Key Messages for Employees Contributing Less than 4%Wondering how you can afford to increase your

401k contribution? Sign up for the health care flexible spending account during open enrollment; use the money you saved by not paying taxes on your qualifying medical expenses to increase your 401k contribution.

Pay yourself first. Increase your 401k contribution by the percentage of your annual merit pay increase which goes into effect on July 1, 2012.

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Communication TacticsEmail messages sent directly to the Eligible Employees who

are not contributing to the 401k Plan and separate emails sent to Participants who contribute less than 4%. The emails will be repeated every 2 weeks over a 3 month time frame.

Post cards sent to target audience home addresses. Messages will include Persistent Uniform Resource Locators (PURLs) containing the Participant’s name. When the Participant clicks the link, it will take him or her to additional resources aimed specifically at that employee. The cards will be mailed monthly over a 3 month time frame.

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Communication Tactics

Messages posted on the SLS, Inc. Intranet site accessible by all your employees. This would be continuous for 3 months.

Messages posted for target audience at www.retireonline.com and message will be posted for 3 months.

Posters in common areas at SLS, Inc. such as elevators, bulletin boards, and cafeteria. This could be commingled with announcements for your upcoming quarterly employee education meetings.

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Measuring SuccessHow many employees clicked on PURL link?Perform mid-year testing to determine the

following:Whether Plan Participation has increased?Have Participant Contribution Levels increased?Has ADP increased?Project the number of HCEs who will receive

refunds of Excess Contributions.

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