PPI Benefit Solutions RESEARCH. Fourth Annual Nonprofit Employee Benefits Study Supplemental Report

PPI Benefit Solutions RESEARCH Fourth Annual Nonprofit Employee Benefits Study Supplemental Report

ABOUT THE STUDY The PPI Benefit Solutions (PPI) Fourth Annual Nonprofit Employee Benefits Study measures and tracks benchmarks of private, nonprofit employee benefit plans. Conducted over a four week period beginning November 4 th, 2013, the results represent over 250 nonprofit employee benefit programs across the United States, and show that despite challenges, nonprofit employers remain committed to delivering health and welfare benefits to their employees but are seeking solutions to help manage costs and improve engagement. The purpose of this supplemental report is to provide an in-depth look at the results broken out by company size, allowing for comparison between the full results and organizations with less than 20 employees,,, and. For a more comprehensive analysis of the full results, go to www.ppibenefits.com/public/resources/research.aspx to view or download our Fourth Annual Nonprofit Employee Benefits Study. Here you will find additional supplemental materials available, as well as a link to sign-up to participate in our next survey. Please contact research@ppibenefits.com if you have any questions. TABLE OF CONTENTS Section 1: Current Benefits. 02 Section 2: Contribution Strategies 13 Section 3: Plan Services.. 24 Section 4: Compliance and Health Care Reform....28 Section 5: Exchange Marketplace. 36 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 1

SECTION 1: CURRENT BENEFITS Prevalence of Benefits Offered By Nonprofit Organizations Figure 1 Coverages offered EEs EEs EEs EEs Traditional medical (HMO/PPO/POS) 148 83.6 17 85.0 34 79.1 71 84.5 20 87.0 High Deductible Health Plan (HDHP) 77 43.5 6 30.0 19 44.2 42 50.0 8 34.8 Health Savings Account (HSA) 21 11.9 0 0.0 5 11.6 13 15.5 2 8.7 Health Reimbursement Arrangement (HRA) 50 28.2 5 25.0 9 20.9 26 31.0 8 34.8 Flexible Spending Account (FSA) 103 58.2 6 30.0 27 62.8 51 60.7 15 65.2 Group dental 157 88.7 15 75.0 40 93.0 77 91.7 19 82.6 Group life 153 86.4 15 75.0 37 86.0 73 86.9 21 91.3 Long-term disability 130 73.4 13 65.0 33 76.7 58 69.0 22 95.7 Short-term disability 122 68.9 13 65.0 29 67.4 57 67.9 18 78.3 Long-term care 17 9.6 2 10.0 6 14.0 5 6.0 4 17.4 Vision care 100 56.5 9 45.0 26 60.5 47 56.0 14 60.9 Prescription carve-out 19 10.7 1 5.0 2 4.7 16 19.0 0 0.0 Critical illness 17 9.6 0 0.0 2 4.7 11 13.1 1 4.3 Voluntary dental 36 20.3 1 5.0 6 14.0 18 21.4 8 34.8 Voluntary life 88 49.7 4 20.0 13 30.2 46 54.8 19 82.6 Executive benefits 14 7.9 2 10.0 3 7.0 5 6.0 2 8.7 Transit/Parking reimbursement 43 24.3 4 20.0 8 18.6 21 25.0 7 30.4 Accident insurance 61 34.5 4 20.0 14 32.6 32 38.1 8 34.8 Cancer benefit 42 23.7 2 10.0 9 20.9 23 27.4 4 17.4 Paid time off (PTO) 84 47.5 6 30.0 16 37.2 49 58.3 10 43.5 Tuition assistance/continuing education 70 39.6 3 15.0 12 27.9 42 50.0 12 52.2 None 1 0.6 1 5.0 0 0.0 0 0.0 0 0.0 Other 18 10.2 0 0.0 2 4.7 12 14.3 4 17.4 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 2

Important Objectives When Selecting Benefit Plans Figure 2 Objective Company size by EEs Extremely important Very important Moderately important Slightly important Not at all important TOTAL RESPONSES Controlling costs Attracting & retaining employees Increasing employee job satisfaction 129 41 4 0 0 174 74.1 23.6 2.3 0.0 0.0 15 5 0 0 0 20 75.0 25.0 0.0 0.0 0.0 28 13 1 0 0 42 66.7 31.0 2.4 0.0 0.0 66 14 2 0 0 82 80.5 17.1 2.4 0.0 0.0 15 7 1 0 0 23 65.2 30.4 4.3 0.0 0.0 64 87 17 3 3 174 36.8 50.0 9.8 1.7 1.7 10 4 3 1 1 19 52.6 21.1 15.8 5.3 5.3 13 22 5 0 2 42 31.0 52.4 11.9 0.0 4.8 30 43 9 1 0 83 36.1 51.8 10.8 1.2 0.0 8 14 0 1 0 23 34.8 60.9 0.0 4.3 0.0 53 87 26 5 2 173 30.6 50.3 15.0 2.9 1.2 7 8 3 1 1 20 35.0 40.0 15.0 5.0 5.0 16 16 7 1 1 41 39.0 39.0 17.1 2.4 2.4 21 44 14 3 0 82 25.6 53.7 17.1 3.7 0.0 6 15 2 0 0 23 26.1 65.2 8.7 0.0 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 3

Important Objectives When Selecting Benefit Plans Figure 2 (CONTINUED) Objective Company size by EEs Extremely important Very important Moderately important Slightly important Not at all important TOTAL RESPONSES Reducing benefit administration costs Providing benefit options that are easy to understand Addressing employees diverse needs 48 72 44 7 3 174 27.6 41.4 25.3 4.0 1.7 7 11 1 0 1 20 35.0 55.0 5.0 0.0 5.0 12 15 10 2 2 41 29.3 36.6 24.4 4.9 4.9 22 36 23 2 0 83 26.5 43.4 27.7 2.4 0.0 6 9 7 1 0 23 26.1 39.1 30.4 4.3 0.0 68 70 33 1 1 173 39.3 40.5 19.1 0.6 0.6 10 8 1 0 1 20 50.0 40.0 5.0 0.0 5.0 12 19 9 0 0 40 30.0 47.5 22.5 0.0 0.0 31 31 20 1 0 83 37.3 37.3 24.1 1.2 0.0 12 10 1 0 0 23 52.2 43.5 4.3 0.0 0.0 42 84 37 10 1 174 24.1 48.3 21.3 5.7 0.6 4 11 3 1 1 20 20.0 55.0 15.0 5.0 5.0 12 14 12 3 0 41 29.3 34.1 29.3 7.3 0.0 18 42 18 5 0 83 21.7 50.6 21.7 6.0 0.0 6 14 2 1 0 23 26.1 60.9 8.7 4.3 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 4

Important Objectives When Selecting Benefit Plans Figure 2 (CONTINUED) Objective Encouraging healthy lifestyles Company size by EEs Extremely important Very important Moderately important Slightly important Not at all important TOTAL RESPONSES 49 70 40 12 3 174 28.2 40.2 23.0 6.9 1.7 6 8 3 1 2 20 30.0 40.0 15.0 5.0 10.0 9 16 12 3 1 41 22.0 39.0 29.3 7.3 2.4 24 33 18 8 0 83 28.9 39.8 21.7 9.6 0.0 8 10 5 0 0 23 34.8 43.5 21.7 0.0 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 5

Challenging Factors When Providing Employee Benefits Figure 3 Factor Company size by EEs Extremely challenging Very challenging Moderately challenging Slightly challenging Not at all challenging TOTAL RESPONSES Cost to nonprofit Cost to employees Plan design and quality of benefits 108 51 14 1 0 174 62.1 29.3 8.0 0.6 0.0 10 7 3 0 0 20 50.0 35.0 15.0 0.0 0.0 23 14 3 1 0 41 56.1 34.1 7.3 2.4 0.0 59 21 3 0 0 83 71.1 25.3 3.6 0.0 0.0 11 7 5 0 0 23 47.8 30.4 21.7 0.0 0.0 75 62 24 8 5 174 43.1 35.6 13.8 4.6 2.9 9 4 2 3 2 20 45.0 20.0 10.0 15.0 10.0 14 15 7 3 2 41 34.1 36.6 17.1 7.3 4.9 37 32 12 1 1 83 44.6 38.6 14.5 1.2 1.2 13 8 1 1 0 23 56.5 34.8 4.3 4.3 0.0 28 73 53 13 6 173 16.2 42.2 30.6 7.5 3.5 5 9 5 1 0 20 25.0 45.0 25.0 5.0 0.0 9 12 10 4 5 40 22.5 30.0 25.0 10.0 12.5 13 38 26 5 1 83 15.7 45.8 31.3 6.0 1.2 1 11 8 3 0 23 4.3 47.8 34.8 13.0 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 6

Challenging Factors When Providing Employee Benefits Figure 3 (CONTINUED) Factor Administrative burden Employee education and communication Competition for talent Company size by EEs Extremely challenging Very challenging Moderately challenging Slightly challenging Not at all challenging TOTAL RESPONSES 12 40 77 34 8 171 7.0 23.4 45.0 19.9 4.7 5 6 4 4 1 20 25.0 30.0 20.0 20.0 5.0 3 6 17 12 2 40 7.5 15.0 42.5 30.0 5.0 3 19 43 11 5 81 3.7 23.5 53.1 13.6 6.2 1 6 12 4 0 23 4.3 26.1 52.2 17.4 0.0 16 43 70 35 9 173 9.2 24.9 40.5 20.2 5.2 3 4 9 3 1 20 15.0 20.0 45.0 15.0 5.0 2 9 15 13 2 41 4.9 22.0 36.6 31.7 4.9 10 21 32 14 6 83 12.0 25.3 38.6 16.9 7.2 0 8 10 4 0 22 0.0 36.4 45.5 18.2 0.0 17 44 57 38 16 172 9.9 25.6 33.1 22.1 9.3 4 2 6 5 1 18 22.2 11.1 33.3 27.8 5.6 2 9 14 11 5 41 4.9 22.0 34.1 26.8 12.2 7 22 29 18 7 83 8.4 26.5 34.9 21.7 8.4 4 7 6 3 3 23 17.4 30.4 26.1 13.0 13.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 7

Challenging Factors When Providing Employee Benefits Figure 3 (CONTINUED) Factor Compliance with state and federal regulations Employee resistance to change Health Reform Implementation Company size by EEs Extremely challenging Very challenging Moderately challenging Slightly challenging Not at all challenging TOTAL RESPONSES 20 46 58 37 12 173 11.6 26.6 33.5 21.4 6.9 2 6 8 2 1 19 10.5 31.6 42.1 10.5 5.3 4 11 13 9 4 41 9.8 26.8 31.7 22.0 9.8 9 17 28 23 6 83 10.8 20.5 33.7 27.7 7.2 3 11 6 2 1 23 13.0 47.8 26.1 8.7 4.3 20 53 58 32 9 172 11.6 30.8 33.7 18.6 5.2 3 3 7 2 4 19 15.8 15.8 36.8 10.5 21.1 4 10 14 10 3 41 9.8 24.4 34.1 24.4 7.3 10 29 25 16 2 82 12.2 35.4 30.5 19.5 2.4 3 10 6 4 0 23 13.0 43.5 26.1 17.4 0.0 49 43 58 16 7 173 28.3 24.9 33.5 9.2 4.0 6 4 5 2 3 20 30.0 20.0 25.0 10.0 15.0 10 13 16 1 1 41 24.4 31.7 39.0 2.4 2.4 25 18 26 11 3 83 30.1 21.7 31.3 13.3 3.6 7 5 8 2 0 22 31.8 22.7 36.4 9.1 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 8

Challenging Factors When Providing Employee Benefits Figure 3 (CONTINUED) Factor Meeting the needs of diverse employee populations Company size by EEs Extremely challenging Very challenging Moderately challenging Slightly challenging Not at all challenging TOTAL RESPONSES 23 47 77 18 6 171 13.5 27.5 45.0 10.5 3.5 5 3 7 3 2 20 25.0 15.0 35.0 15.0 10.0 4 15 16 4 1 40 10.0 37.5 40.0 10.0 2.5 10 19 45 5 3 82 12.2 23.2 54.9 6.1 3.7 4 7 6 5 0 22 18.2 31.8 27.3 22.7 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 9

Hours Per Week Required for Employees to be Eligible for Medical Benefits Figure 4 Hours per week required EEs EEs EEs EEs hours per week 5 2.8 1 5.3 0 0.0 1 1.2 2 8.7 20 hours per week 26 14.8 1 5.3 6 14.0 10 11.9 9 39.1 21 to 29 hours per week 29 16.5 0 0.0 10 23.3 16 19.0 2 8.7 30 hours per week 62 35.2 10 52.6 19 44.2 27 32.1 3 13.0 31 to 39 hours per week* 37 21.0 3 15.8 7 16.3 21 25.0 4 17.4 40 hours per week* 17 9.7 4 21.1 1 2.3 9 10.7 3 13.0 TOTAL RESPONSES 176 19 43 84 23 *Requiring employees to work more than 30 hours per week to be eligible for medical benefits will not be compliant with PPACA beginning in 2015 for employers with 100+ employees; 2016 for employers with 50-99 employees. Waiting Period Length for Medical Benefits Figure 5 Waiting period length EEs EEs EEs EEs Active upon the date of hire 21 12.0 2 10.5 6 14.0 10 11.9 2 8.7 First of the month after the date of hire 36 20.6 4 21.1 10 23.3 15 17.9 5 21.7 First of the month after 30 days 29 16.6 4 21.1 8 18.6 11 13.1 6 26.1 First of the month after 60 days 15 8.6 1 5.3 4 9.3 7 8.3 2 8.7 First of the month after 90 days (not compliant with PPACA beginning 2015) 27 15.4 1 5.3 3 7.0 19 22.6 3 13.0 30 days from the date of hire 11 6.3 4 21.1 2 4.7 2 2.4 2 8.7 60 days from the date of hire 5 2.9 0 0.0 2 4.7 2 2.4 1 4.3 90 days from the date of hire 24 13.7 2 10.5 7 16.3 13 15.5 2 8.7 We do not offer a medical plan 2 1.1 1 5.3 1 2.3 0 0.0 0 0.0 Other 5 2.9 0 0.0 0 0.0 5 6.0 0 0.0 TOTAL RESPONSES 175 19 43 84 23 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 10

Waiting Period Length for Life Plans Figure 6 Waiting period length EEs EEs EEs EEs Active upon the date of hire 37 21.6 5 25.0 8 18.6 19 23.5 2 10.0 First of the month after the date of hire 26 15.2 1 5.0 9 20.9 10 12.3 5 25.0 First of the month after 30 days 21 12.3 2 10.0 7 16.3 9 11.1 3 15.0 First of the month after 60 days 9 5.3 1 5.0 2 4.7 4 4.9 2 10.0 First of the month after 90 days 25 14.6 1 5.0 6 14.0 13 16.0 3 15.0 30 days from the date of hire 6 3.5 2 10.0 2 4.7 1 1.2 0 0.0 60 days from the date of hire 4 2.3 0 0.0 0 0.0 3 3.7 1 5.0 90 days from the date of hire 22 12.9 4 20.0 6 14.0 10 12.3 2 10.0 We do not offer a life plan 13 7.6 4 20.0 2 4.7 6 7.4 1 5.0 Other 8 4.7 0 0.0 1 2.3 6 7.4 1 5.0 TOTAL RESPONSES 171 20 43 81 20 Enrollment Methods Currently Used Figure 7 Enrollment method EEs EEs EEs EEs Paper enrollment 145 83.8 18 90.0 36 85.7 69 84.1 19 82.6 Group meetings 89 51.4 10 50.0 23 54.8 46 56.1 6 26.1 One-on-one meetings 89 51.4 6 30.0 22 52.4 47 57.3 11 47.8 Enrollment kits 77 44.5 4 20.0 17 40.5 41 50.0 11 47.8 Employee benefits informational website 24 13.9 3 15.0 7 16.7 10 12.2 2 8.7 Online employee self-service for open enrollment only 11 6.4 2 10.0 2 4.8 6 7.3 1 4.3 Online employee self-service for open enrollment/new hires/ life events 14 8.1 0 0.0 1 2.4 8 9.8 3 13.0 Other 10 5.8 1 5.0 1 2.4 5 6.1 2 8.7 TOTAL UNIQUE RESPONSES 173 20 42 82 23 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 11

Communication Methods Currently Used Figure 8 EEs EEs EEs EEs Communication method Annual communication of benefit changes 133 76.4 11 55.0 33 76.7 67 81.7 17 73.9 Onsite enrollment meetings 127 73.0 10 50.0 29 67.4 64 78.0 18 78.3 As-needed educational sessions 71 40.8 3 15.0 25 58.1 33 40.2 8 34.8 Company Intranet 46 26.4 1 5.0 10 23.3 22 26.8 10 43.5 Posters around the office 43 24.7 3 15.0 9 20.9 23 28.0 7 30.4 Payroll stuffers 40 23.0 3 15.0 7 16.3 20 24.4 8 34.8 Total compensation statements 28 16.1 1 5.0 6 14.0 17 20.7 3 13.0 Employee benefits portal 25 14.4 3 15.0 4 9.3 12 14.6 2 8.7 Benefit fairs 20 11.5 0 0.0 1 2.3 11 13.4 7 30.4 Healthcare advocate/coach 17 9.8 1 5.0 6 14.0 6 7.3 1 4.3 Benefits newsletter 12 6.9 2 10.0 4 9.3 1 1.2 3 13.0 TOTAL UNIQUE RESPONSES 174 20 43 82 23 Wellness Activities and Services Currently In Place Figure 9 Wellness activity/service EEs EEs EEs EEs Healthcare advocate/coach 23 16.7 0 0.0 7 21.2 10 14.7 3 13.6 Onsite gym 21 15.2 1 10.0 4 12.1 9 13.2 7 31.8 Gym membership discounts or reimbursement 56 40.6 2 20.0 13 39.4 29 42.6 9 40.9 Third party wellness services 23 16.7 0 0.0 2 6.1 16 23.5 4 18.2 Flu vaccinations 64 46.4 1 10.0 14 42.4 34 50.0 11 50.0 Health/biometric screenings 24 17.4 2 20.0 4 12.1 12 17.6 3 13.6 Health fairs 20 14.5 2 20.0 1 3.0 11 16.2 5 22.7 Employee Assistance Programs (EAP) 82 59.4 3 30.0 17 51.5 42 61.8 17 77.3 Health Risk Assessments with incentives 12 8.7 0 0.0 0 0.0 8 11.8 3 13.6 Telemedicine Services 1 0.7 0 0.0 0 0.0 1 1.5 0 0.0 TOTAL UNIQUE RESPONSES 138 10 33 68 22 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 12

SECTION 2: CONTRIBUTION STRATEGIES Contribution Strategies Currently In Place Figure 10 Contribution strategy EEs EEs EEs EEs Percentage of premium 107 66.5 9 52.9 21 53.8 53 67.9 20 90.9 Equal fixed dollar amount for all benefits 10 6.2 2 11.8 3 7.7 5 6.4 0 0.0 Equal fixed dollar amount for medical benefits ONLY 12 7.5 1 5.9 3 7.7 7 9.0 1 4.5 Fixed dollar amount by dependent tier 15 9.3 1 5.9 5 12.8 7 9.0 1 4.5 Not applicable 9 5.6 4 23.5 4 10.3 1 1.3 0 0.0 Other 8 5.0 0 0.0 3 7.7 5 6.4 0 0.0 TOTAL RESPONSES 161 17 39 78 22 Medical Contribution Strategies Currently In Place Figure 11 Medical contribution strategy EEs EEs EEs EEs Based on years of service 8 5.0 0 0.0 4 10.0 4 5.3 0 0.0 Based on position or salary 20 12.4 0 0.0 7 17.5 11 14.7 1 4.3 Varies by plan type 42 26.1 3 16.7 6 15.0 23 30.7 9 39.1 3-tier rate structure 28 17.4 3 16.7 8 20.0 10 13.3 6 26.1 4-tier rate structure 71 44.1 5 27.8 15 37.5 41 54.7 7 30.4 Reduced coverage for spouses 5 3.1 0 0.0 2 5.0 3 4.0 0 0.0 Dependents must prove a lack of access 4 2.5 0 0.0 2 5.0 2 2.7 0 0.0 Coverage for domestic partners 56 34.8 4 22.2 7 17.5 31 41.3 10 43.5 No dependent coverage 4 2.5 0 0.0 1 2.5 3 4.0 0 0.0 Other 7 4.3 2 11.1 2 5.0 1 1.3 2 8.7 None of the above 17 10.6 5 27.8 5 12.5 6 8.0 1 4.3 TOTAL UNIQUE RESPONSES 161 18 40 75 23 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 13

Nonprofit Funding of Employee Benefits Figure 12 Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Traditional medical (HMO/PPO/POS) High-deductible medical (deductible of $1,500 or more) Health Savings Account Less than 20 Less than 20 Less than 20 25 116 3 0 0 10 1 155 16.1 74.8 1.9 0.0 0.0 6.5 0.6 7 9 0 0 0 1 0 17 41.2 52.9 0.0 0.0 0.0 5.9 0.0 8 25 1 0 0 4 0 38 21.1 65.8 2.6 0.0 0.0 10.5 0.0 10 58 2 0 0 4 0 74 13.5 78.4 2.7 0.0 0.0 5.4 0.0 0 20 0 0 0 1 1 22 0.0 90.9 0.0 0.0 0.0 4.5 4.5 7 65 0 0 9 54 1 136 5.1 47.8 0.0 0.0 6.6 39.7 0.7 0 4 0 0 1 6 1 12 0.0 33.3 0.0 0.0 8.3 50.0 8.3 1 18 0 0 0 16 0 35 2.9 51.4 0.0 0.0 0.0 45.7 0.0 6 32 0 0 6 24 0 68 8.8 47.1 0.0 0.0 8.8 35.3 0.0 0 9 0 0 2 7 0 18 0.0 50.0 0.0 0.0 11.1 38.9 0.0 5 9 1 0 14 82 2 113 4.4 8.0 0.9 0.0 12.4 72.6 1.8 1 0 0 0 0 8 2 11 9.1 0.0 0.0 0.0 0.0 72.7 18.2 0 3 1 0 8 17 0 29 0.0 10.3 3.4 0.0 27.6 58.6 0.0 4 4 0 0 4 44 0 56 7.1 7.1 0.0 0.0 7.1 78.6 0.0 0 1 0 0 2 12 0 15 0.0 6.7 0.0 0.0 13.3 80.0 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 14

Nonprofit Funding of Employee Benefits Figure 12 (CONTINUED) Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Group Dental Life Insurance Long-term disability Less than 20 Less than 20 Less than 20 47 87 3 0 18 4 0 159 29.6 54.7 1.9 0.0 11.3 2.5 0.0 10 5 0 0 1 1 0 17 58.8 29.4 0.0 0.0 5.9 5.9 0.0 12 19 1 0 4 2 0 38 31.6 50.0 2.6 0.0 10.5 5.3 0.0 22 45 2 0 8 1 0 78 28.2 57.7 2.6 0.0 10.3 1.3 0.0 2 14 0 0 5 0 0 21 9.5 66.7 0.0 0.0 23.8 0.0 0.0 133 4 10 0 5 7 1 160 83.1 2.5 6.3 0.0 3.1 4.4 0.6 15 1 0 0 0 2 0 18 83.3 5.6 0.0 0.0 0.0 11.1 0.0 33 0 1 0 0 2 1 37 89.2 0.0 2.7 0.0 0.0 5.4 2.7 63 2 6 0 4 3 0 78 80.8 2.6 7.7 0.0 5.1 3.8 0.0 17 1 3 0 1 0 0 22 77.3 4.5 13.6 0.0 4.5 0.0 0.0 102 5 7 0 17 14 0 145 70.3 3.4 4.8 0.0 11.7 9.7 0.0 14 1 0 0 0 2 0 17 82.4 5.9 0.0 0.0 0.0 11.8 0.0 24 2 1 0 4 2 0 33 72.7 6.1 3.0 0.0 12.1 6.1 0.0 46 1 2 0 10 10 0 69 66.7 1.4 2.9 0.0 14.5 14.5 0.0 14 1 4 0 3 0 0 22 63.6 4.5 18.2 0.0 13.6 0.0 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 15

Nonprofit Funding of Employee Benefits Figure 12 (CONTINUED) Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Short-term disability Long-term care Vision care Less than 20 Less than 20 Less than 20 90 11 0 0 22 25 1 149 60.4 7.4 0.0 0.0 14.8 16.8 0.7 12 1 0 0 0 3 0 16 75.0 6.3 0.0 0.0 0.0 18.8 0.0 20 2 0 0 6 6 0 34 58.8 5.9 0.0 0.0 17.6 17.6 0.0 42 8 0 0 8 15 1 74 56.8 10.8 0.0 0.0 10.8 20.3 1.4 14 0 0 0 6 1 0 21 66.7 0.0 0.0 0.0 28.6 4.8 0.0 11 1 1 0 10 88 4 115 9.6 0.9 0.9 0.0 8.7 76.5 3.5 2 0 0 0 1 11 0 14 14.3 0.0 0.0 0.0 7.1 78.6 0.0 5 1 0 0 3 19 1 29 17.2 3.4 0.0 0.0 10.3 65.5 3.4 1 0 1 0 5 47 2 56 1.8 0.0 1.8 0.0 8.9 83.9 3.6 3 0 0 0 1 9 1 14 21.4 0.0 0.0 0.0 7.1 64.3 7.1 29 45 0 0 25 40 1 140 20.7 32.1 0.0 0.0 17.9 28.6 0.7 6 3 0 0 1 3 0 13 46.2 23.1 0.0 0.0 7.7 23.1 0.0 7 10 0 0 6 10 1 34 20.6 29.4 0.0 0.0 17.6 29.4 2.9 14 24 0 0 10 22 0 70 20.0 34.3 0.0 0.0 14.3 31.4 0.0 2 7 0 0 5 5 0 19 10.5 36.8 0.0 0.0 26.3 26.3 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 16

Nonprofit Funding of Employee Benefits Figure 12 (CONTINUED) Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Prescription carve-out Executive benefits Transit/Parking reimbursement Less than 20 Less than 20 Less than 20 6 23 0 0 0 78 7 114 5.3 20.2 0.0 0.0 0.0 68.4 6.1 2 0 0 0 0 8 0 10 20.0 0.0 0.0 0.0 0.0 80.0 0.0 0 5 0 0 0 22 2 29 0.0 17.2 0.0 0.0 0.0 75.9 6.9 4 15 0 0 0 38 2 59 6.8 25.4 0.0 0.0 0.0 64.4 3.4 0 2 0 0 0 9 3 14 0.0 14.3 0.0 0.0 0.0 64.3 21.4 17 3 0 0 2 85 5 112 15.2 2.7 0.0 0.0 1.8 75.9 4.5 4 0 0 0 0 7 0 11 36.4 0.0 0.0 0.0 0.0 63.6 0.0 5 1 0 0 1 20 2 29 17.2 3.4 0.0 0.0 3.4 69.0 6.9 6 0 0 0 0 47 3 56 10.7 0.0 0.0 0.0 0.0 83.9 5.4 1 2 0 0 0 10 0 13 7.7 15.4 0.0 0.0 0.0 76.9 0.0 12 10 1 0 25 71 2 121 9.9 8.3 0.8 0.0 20.7 58.7 1.7 3 3 0 0 1 6 0 13 23.1 23.1 0.0 0.0 7.7 46.2 0.0 4 1 0 0 6 18 1 30 13.3 3.3 0.0 0.0 20.0 60.0 3.3 5 5 1 0 9 38 1 59 8.5 8.5 1.7 0.0 15.3 64.4 1.7 0 1 0 0 6 8 0 15 0.0 6.7 0.0 0.0 40.0 53.3 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 17

Nonprofit Funding of Employee Benefits Figure 12 (CONTINUED) Coverage type Company size by EEs Paid in full by employer Cost shared by employer & employee Employer paid base plan w/ employee buy-up Employer contributes a flat dollar amount Employee-paid (voluntary) Do not offer Do not know TOTAL RESPONSES Wellness programs Accident insurance Critical illness insurance Less than 20 Less than 20 Less than 20 34 13 1 0 6 59 3 116 29.3 11.2 0.9 0.0 5.2 50.9 2.6 1 0 0 0 0 10 0 11 9.1 0.0 0.0 0.0 0.0 90.9 0.0 6 2 1 0 3 18 0 30 20.0 6.7 3.3 0.0 10.0 60.0 0.0 19 10 0 0 3 23 2 57 33.3 17.5 0.0 0.0 5.3 40.4 3.5 6 1 0 0 0 7 1 15 40.0 6.7 0.0 0.0 0.0 46.7 6.7 24 0 1 0 50 53 4 132 18.2 0.0 0.8 0.0 37.9 40.2 3.0 3 0 0 0 2 7 1 13 23.1 0.0 0.0 0.0 15.4 53.8 7.7 6 0 0 0 13 13 2 34 17.6 0.0 0.0 0.0 38.2 38.2 5.9 9 0 1 0 27 27 1 65 13.8 0.0 1.5 0.0 41.5 41.5 1.5 4 0 0 0 7 6 0 17 23.5 0.0 0.0 0.0 41.2 35.3 0.0 2 1 2 0 43 67 5 120 1.7 0.8 1.7 0.0 35.8 55.8 4.2 1 0 0 0 3 7 1 12 8.3 0.0 0.0 0.0 25.0 58.3 8.3 0 1 0 0 7 20 1 29 0.0 3.4 0.0 0.0 24.1 69.0 3.4 0 0 2 0 26 29 3 60 0.0 0.0 3.3 0.0 43.3 48.3 5.0 1 0 0 0 4 10 0 15 6.7 0.0 0.0 0.0 26.7 66.7 0.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 18

Of Those Who Offer: Percentage of Premium Contribution for EMPLOYEE-ONLY Medical Coverage Figure 13 Percentage of premium contribution EEs EEs EEs EEs Less than 25 6 5.4 2 20.0 1 4.5 2 3.8 1 4.8 25 to 40 4 3.6 0 0.0 0 0.0 3 5.7 1 4.8 41 to 55 3 2.7 0 0.0 0 0.0 2 3.8 0 0.0 56 to 70 19 17.1 1 10.0 3 13.6 9 17.0 6 28.6 71 to 85 42 37.8 3 30.0 10 45.5 20 37.7 6 28.6 86 to 99 28 25.2 3 30.0 7 31.8 11 20.8 6 28.6 100 7 6.3 1 10.0 1 4.5 5 9.4 0 0.0 I don't know 2 1.8 0 0.0 0 0.0 1 1.9 1 4.8 TOTAL RESPONSES 111 10 22 53 21 Of Those Who Offer: Fixed Annual Dollar Contribution for EMPLOYEE-ONLY Medical Coverage Figure 14 Fixed annual dollar contribution EEs EEs EEs EEs Less than $10,000 13 54.2 2 100.0 5 71.4 5 41.7 0 0.0 $10,000 to $12,500 2 8.3 0 0.0 0 0.0 2 16.7 0 0.0 $12,501 to $15,000 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 $15,001 to $17,500 2 8.3 0 0.0 1 14.3 1 8.3 0 0.0 $17,501 to $20,000 1 4.2 0 0.0 0 0.0 1 8.3 0 0.0 More than $20,000 3 12.5 0 0.0 0 0.0 1 8.3 2 100.0 I don't know 3 12.5 0 0.0 1 14.3 2 16.7 0 0.0 TOTAL RESPONSES 24 2 7 12 2 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 20

Of Those Who Offer: Fixed Annual Dollar Contribution for EMPLOYEE PLUS DEPENDENT Medical Coverage Figure 15 Fixed annual dollar contribution EEs EEs EEs EEs Less than $10,000 4 26.7 0 0.0 3 50.0 1 20.0 0 0.0 $10,000 to $12,500 3 20.0 0 0.0 0 0.0 2 40.0 0 0.0 $12,501 to $15,000 1 6.7 1 100.0 0 0.0 0 0.0 0 0.0 $15,001 to $17,500 1 6.7 0 0.0 1 16.7 0 0.0 0 0.0 $17,501 to $20,000 1 6.7 0 0.0 0 0.0 1 20.0 0 0.0 More than $20,000 2 13.3 0 0.0 1 16.7 0 0.0 1 50.0 I don't know 3 20.0 0 0.0 1 16.7 1 20.0 1 50.0 TOTAL RESPONSES 15 1 6 5 2 Of Those Who Offer: Fixed Annual Dollar Contribution for EMPLOYEE PLUS FAMILY Medical Coverage Figure 16 Fixed annual dollar contribution EEs EEs EEs EEs Less than $10,000 3 21.4 0 0.0 2 40.0 1 20.0 0 0.0 $10,000 to $12,500 2 14.3 0 0.0 0 0.0 2 40.0 0 0.0 $12,501 to $15,000 1 7.1 0 0.0 1 20.0 0 0.0 0 0.0 $15,001 to $17,500 3 21.4 1 100.0 1 20.0 0 0.0 0 0.0 $17,501 to $20,000 1 7.1 0 0.0 0 0.0 1 20.0 0 0.0 More than $20,000 1 7.1 0 0.0 0 0.0 0 0.0 1 50.0 I don't know 3 21.4 0 0.0 1 20.0 1 20.0 1 50.0 TOTAL RESPONSES 14 1 5 5 2 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 21

Of Those Who Offer: Average Monthly Payroll Deduction for EMPLOYEE-ONLY Medical Coverage Figure 17 Monthly payroll deduction EEs EEs EEs EEs Less than $50 19 12.0 0 0.0 3 8.1 14 17.7 1 4.5 $50 to $100 58 36.7 4 26.7 13 35.1 25 31.6 14 63.6 $101 to $150 26 16.5 0 0.0 6 16.2 15 19.0 4 18.2 $151 to $200 14 8.9 1 6.7 5 13.5 7 8.9 1 4.5 $201 to $250 5 3.2 0 0.0 0 0.0 4 5.1 1 4.5 $251 to $300 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 More than $300 5 3.2 1 6.7 3 8.1 0 0.0 1 4.5 None 30 19.0 8 53.3 7 18.9 14 17.7 0 0.0 I don't know 1 0.6 1 6.7 0 0.0 0 0.0 0 0.0 TOTAL RESPONSES 158 15 37 79 22 Of Those Who Offer: Average Monthly Payroll Deduction for EMPLOYEE PLUS SPOUSE Medical Coverage Figure 18 Monthly payroll deduction EEs EEs EEs EEs Less than $100 18 11.6 3 21.4 4 11.4 8 10.1 2 9.5 $100 to $200 23 14.8 1 7.1 6 17.1 11 13.9 5 23.8 $201 to $300 28 18.1 1 7.1 8 22.9 12 15.2 4 19.0 $301 to $400 24 15.5 0 0.0 3 8.6 18 22.8 2 9.5 $401 to $500 17 11.0 0 0.0 4 11.4 8 10.1 5 23.8 More than $501 31 20.0 3 21.4 8 22.9 18 22.8 2 9.5 No dependent coverage 7 4.5 3 21.4 0 0.0 3 3.8 0 0.0 I don't know 7 4.5 3 21.4 2 5.7 1 1.3 1 4.8 TOTAL RESPONSES 155 14 35 79 21 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 22

Of Those Who Offer: Average Monthly Payroll Deduction for EMPLOYEE PLUS CHILDREN Medical Coverage Figure 19 Monthly payroll deduction EEs EEs EEs EEs Less than $100 21 13.7 5 35.7 3 8.8 11 14.1 1 4.8 $101 to $200 26 17.0 1 7.1 6 17.6 10 12.8 7 33.3 $201 to $300 32 20.9 0 0.0 8 23.5 18 23.1 4 19.0 $301 to $400 17 11.1 1 7.1 5 14.7 10 12.8 1 4.8 $401 to $500 14 9.2 0 0.0 3 8.8 7 9.0 4 19.0 More than $501 30 19.6 2 14.3 7 20.6 19 24.4 2 9.5 No dependent coverage 6 3.9 2 14.3 0 0.0 2 2.6 1 4.8 I don't know 7 4.6 3 21.4 2 5.9 1 1.3 1 4.8 TOTAL RESPONSES 153 14 34 78 21 Of Those Who Offer: Average Monthly Payroll Deduction for EMPLOYEE PLUS FAMILY Medical Coverage Figure 20 Monthly payroll deduction EEs EEs EEs EEs Less than $100 11 7.1 2 13.3 3 8.8 5 6.4 1 4.5 $100 to $200 14 9.0 1 6.7 2 5.9 8 10.3 3 13.6 $201 to $300 18 11.6 1 6.7 5 14.7 6 7.7 5 22.7 $301 to $400 20 12.9 1 6.7 5 14.7 9 11.5 2 9.1 $401 to $500 11 7.1 2 13.3 1 2.9 5 6.4 3 13.6 $501 to $600 21 13.6 1 6.7 5 14.7 11 14.1 4 18.2 $601 to $750 10 6.5 0 0.0 3 8.8 5 6.4 1 4.5 More than $750 38 24.5 0 0.0 10 29.4 25 32.1 3 13.6 No dependent coverage 7 4.5 3 20.0 0 0.0 3 3.8 0 0.0 I don't know 5 3.2 4 26.7 0 0.0 1 1.3 0 0.0 TOTAL RESPONSES 155 15 34 78 22 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 23

SECTION 3: PLAN SERVICES Sources of Benefits Administration Management Figure 21 Sources of benefits administration EEs EEs EEs EEs My benefits broker 46 29.3 6 35.3 18 47.4 16 21.6 4 18.2 In-house using various carrier systems 42 26.8 5 29.4 10 26.3 16 21.6 9 40.9 Benefits administration vendor 23 14.6 3 17.6 3 7.9 12 16.2 5 22.7 In-house using carriers' paper forms 18 11.5 1 5.9 3 7.9 12 16.2 1 4.5 TPA (Third Party Administrator) 15 9.6 1 5.9 0 0.0 12 16.2 2 9.1 Other 8 5.1 1 5.9 2 5.3 5 6.8 0 0.0 Payroll company 2 1.3 0 0.0 1 2.6 1 1.4 0 0.0 PEO (Professional Employer Organization) 2 1.3 0 0.0 1 2.6 0 0.0 1 4.5 In-house with purchased software 1 0.6 0 0.0 0 0.0 0 0.0 0 0.0 Private exchange marketplace 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 TOTAL RESPONSES 157 17 38 74 22 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 24

The Importance of Benefits Administration Services Figure 22 Benefits administration service Company size by EEs Extremely Important Very Important Moderately Important Slightly Important Not at all Important TOTAL RESPONSES One administration platform to manage all life & health benefits Consolidated premium billing Premium reconciliation and discrepancy resolution with carriers 69 36 18 10 3 136 50.7 26.5 13.2 7.4 2.2 5 3 1 2 0 11 45.5 27.3 9.1 18.2 0.0 12 8 8 4 0 32 37.5 25.0 25.0 12.5 0.0 36 18 8 4 2 68 52.9 26.5 11.8 5.9 2.9 11 7 0 0 1 19 57.9 36.8 0.0 0.0 5.3 53 35 30 9 9 136 39.0 25.7 22.1 6.6 6.6 4 3 1 1 2 11 36.4 27.3 9.1 9.1 18.2 9 9 11 3 2 34 26.5 26.5 32.4 8.8 5.9 27 16 15 5 3 66 40.9 24.2 22.7 7.6 4.5 10 7 1 0 1 19 52.6 36.8 5.3 0.0 5.3 65 34 17 9 8 133 48.9 25.6 12.8 6.8 6.0 6 2 0 1 2 11 54.5 18.2 0.0 9.1 18.2 12 10 8 4 1 35 34.3 28.6 22.9 11.4 2.9 34 15 8 2 3 62 54.8 24.2 12.9 3.2 4.8 11 5 1 1 2 20 55.0 25.0 5.0 5.0 10.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 25

The Importance of Benefits Administration Services Figure 22 (CONTINUED) Benefits administration service Company size by EEs Extremely Important Very Important Moderately Important Slightly Important Not at all Important TOTAL RESPONSES COBRA administration Online compliance resources HSA/HRA/FSA Administration 66 32 16 6 9 129 51.2 24.8 12.4 4.7 7.0 5 2 1 1 1 10 50.0 20.0 10.0 10.0 10.0 16 9 4 1 3 33 48.5 27.3 12.1 3.0 9.1 31 15 8 2 4 60 51.7 25.0 13.3 3.3 6.7 12 4 2 2 1 21 57.1 19.0 9.5 9.5 4.8 50 46 23 5 5 129 38.8 35.7 17.8 3.9 3.9 8 2 0 1 0 11 72.7 18.2 0.0 9.1 0.0 10 14 6 1 2 33 30.3 42.4 18.2 3.0 6.1 24 18 15 3 1 61 39.3 29.5 24.6 4.9 1.6 6 10 1 0 2 19 31.6 52.6 5.3 0.0 10.5 51 25 19 5 24 124 41.1 20.2 15.3 4.0 19.4 3 3 1 2 1 10 30.0 30.0 10.0 20.0 10.0 13 6 5 1 6 31 41.9 19.4 16.1 3.2 19.4 25 10 11 1 13 60 41.7 16.7 18.3 1.7 21.7 7 5 1 1 4 18 38.9 27.8 5.6 5.6 22.2 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 26

The Importance of Benefits Administration Services Figure 22 (CONTINUED) Benefits administration service Company size by EEs Extremely Important Very Important Moderately Important Slightly Important Not at all Important TOTAL RESPONSES Payroll/benefits system integration Employee self-service (online enrollment) Leave/FMLA administration 54 24 31 12 9 130 41.5 18.5 23.8 9.2 6.9 3 3 3 1 1 11 27.3 27.3 27.3 9.1 9.1 8 5 14 3 3 33 24.2 15.2 42.4 9.1 9.1 30 11 11 7 5 64 46.9 17.2 17.2 10.9 7.8 11 4 3 1 0 19 57.9 21.1 15.8 5.3 0.0 30 28 33 17 23 131 22.9 21.4 25.2 13.0 17.6 4 1 2 3 1 11 36.4 9.1 18.2 27.3 9.1 7 6 12 2 6 33 21.2 18.2 36.4 6.1 18.2 11 12 16 9 15 63 17.5 19.0 25.4 14.3 23.8 6 7 2 3 1 19 31.6 36.8 10.5 15.8 5.3 38 19 31 20 22 130 29.2 14.6 23.8 15.4 16.9 3 1 4 2 1 11 27.3 9.1 36.4 18.2 9.1 6 8 7 4 8 33 18.2 24.2 21.2 12.1 24.2 18 8 15 10 11 62 29.0 12.9 24.2 16.1 17.7 9 1 4 4 2 20 45.0 5.0 20.0 20.0 10.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 27

SECTION 4: COMPLIANCE AND HEALTH CARE REFORM Sources of Information for Nonprofits Regarding Health Care Reform (ACA) Figure 23 Information source EEs EEs EEs EEs My insurance broker 136 90.1 15 88.2 30 85.7 67 93.1 18 85.7 Government 77 51.0 7 41.2 18 51.4 38 52.8 11 52.4 Online resources 68 45.0 7 41.2 14 40.0 35 48.6 8 38.1 My insurance carriers 54 35.8 8 47.1 11 31.4 24 33.3 9 42.9 Benefits administration vendor 35 23.2 0 0.0 11 31.4 16 22.2 8 38.1 Legal counsel 35 23.2 2 11.8 9 25.7 15 20.8 8 38.1 TPA (Third Party Administrator) 20 13.2 3 17.6 1 2.9 10 13.9 6 28.6 In-house sources 14 9.3 1 5.9 2 5.7 8 11.1 2 9.5 PEO (Professional Employer Organization) 14 9.3 1 5.9 4 11.4 6 8.3 3 14.3 Business consultant 6 4.0 1 5.9 1 2.9 3 4.2 1 4.8 TOTAL UNIQUE RESPONSES 151 17 35 72 21 Confidence that Benefit Plans are Compliant with State and Federal Regulations Figure 24 Level of confidence EEs EEs EEs EEs Extremely confident 65 42.8 6 37.5 16 44.4 32 43.8 7 33.3 Very confident 72 47.4 7 43.8 17 47.2 33 45.2 13 61.9 Moderately confident 13 8.6 3 18.8 3 8.3 7 9.6 0 0.0 Slightly confident 1 0.7 0 0.0 0 0.0 1 1.4 0 0.0 Not at all confident 1 0.7 0 0.0 0 0.0 0 0.0 1 4.8 TOTAL RESPONSES 152 16 36 73 21 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 28

Confidence in Understanding of Health Care Reform (ACA) Figure 25 Level of understanding EEs EEs EEs EEs Extremely thorough 26 17.6 2 12.5 4 11.4 13 18.3 5 25.0 Very thorough 69 46.6 5 31.3 17 48.6 35 49.3 10 50.0 Moderately thorough 41 27.7 5 31.3 10 28.6 20 28.2 4 20.0 Slightly thorough 7 4.7 2 12.5 2 5.7 2 2.8 1 5.0 Not at all thorough 5 3.4 2 12.5 2 5.7 1 1.4 0 0.0 TOTAL RESPONSES 148 16 35 71 20 The Cost of Compliance with Health Care Reform (ACA) Figure 26 Cost of compliance EEs EEs EEs EEs It will raise our expenses less than 5 10 6.8 2 11.8 3 8.3 2 2.9 2 11.1 It will raise our expenses 5 to 10 14 9.5 0 0.0 2 5.6 10 14.3 2 11.1 It will raise our expenses more than 10 16 10.9 1 5.9 4 11.1 11 15.7 0 0.0 It will not raise our expenses 18 12.2 1 5.9 3 8.3 9 12.9 5 27.8 We have not calculated the cost 89 60.5 13 76.5 24 66.7 38 54.3 9 50.0 TOTAL RESPONSES 147 17 36 70 18 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 29

Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 Cost-saving strategy Increase employee contributions Reduce or drop certain benefits Reduce or eliminate dependent coverage Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES 31 37 23 40 131 23.7 28.2 17.6 30.5 3 1 1 8 13 23.1 7.7 7.7 61.5 7 5 11 8 31 22.6 16.1 35.5 25.8 18 24 9 13 64 28.1 37.5 14.1 20.3 2 5 2 9 18 11.1 27.8 11.1 50.0 14 18 13 84 129 10.9 14.0 10.1 65.1 2 0 2 8 12 16.7 0.0 16.7 66.7 1 4 2 23 30 3.3 13.3 6.7 76.7 8 10 8 38 64 12.5 15.6 12.5 59.4 2 2 1 13 18 11.1 11.1 5.6 72.2 8 2 2 109 121 6.6 1.7 1.7 90.1 2 0 1 8 11 18.2 0.0 9.1 72.7 2 0 1 26 29 6.9 0.0 3.4 89.7 4 2 0 53 59 6.8 3.4 0.0 89.8 0 0 0 18 18 0.0 0.0 0.0 100.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 30

Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 (CONTINUED) Cost-saving strategy Offer a high-deductible health plan Scale back or eliminate salary increases Suspend bonuses Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES 55 12 8 48 123 44.7 9.8 6.5 39.0 3 0 0 9 12 25.0 0.0 0.0 75.0 13 3 1 12 29 44.8 10.3 3.4 41.4 29 8 3 21 61 47.5 13.1 4.9 34.4 7 1 3 6 17 41.2 5.9 17.6 35.3 20 7 10 88 125 16.0 5.6 8.0 70.4 2 0 0 9 11 18.2 0.0 0.0 81.8 3 2 2 24 31 9.7 6.5 6.5 77.4 13 5 8 35 61 21.3 8.2 13.1 57.4 1 0 0 17 18 5.6 0.0 0.0 94.4 17 4 4 94 119 14.3 3.4 3.4 79.0 2 0 0 8 10 20.0 0.0 0.0 80.0 1 2 2 24 29 3.4 6.9 6.9 82.8 13 2 2 41 58 22.4 3.4 3.4 70.7 1 0 0 17 18 5.6 0.0 0.0 94.4 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 31

Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 (CONTINUED) Cost-saving strategy Raise the new hire waiting period Limit the number of employees eligible for benefits Move to a private exchange marketplace Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES 4 1 4 113 122 3.3 0.8 3.3 92.6 1 0 0 11 12 8.3 0.0 0.0 91.7 0 0 1 28 29 0.0 0.0 3.4 96.6 2 1 3 53 59 3.4 1.7 5.1 89.8 0 0 0 18 18 0.0 0.0 0.0 100.0 7 3 3 112 125 5.6 2.4 2.4 89.6 0 1 0 12 13 0.0 7.7 0.0 92.3 3 1 2 24 30 10.0 3.3 6.7 80.0 3 1 0 56 60 5.0 1.7 0.0 93.3 1 0 1 16 18 5.6 0.0 5.6 88.9 0 4 9 109 122 0.0 3.3 7.4 89.3 0 0 0 10 10 0.0 0.0 0.0 100.0 0 2 1 27 30 0.0 6.7 3.3 90.0 0 1 6 52 59 0.0 1.7 10.2 88.1 0 0 2 16 18 0.0 0.0 11.1 88.9 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 32

Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 (CONTINUED) Cost-saving strategy Change to a defined contribution model Replace some benefits with 100 employeepaid voluntary plans Offer a "Minimum Value" plan ONLY Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES 8 8 13 94 123 6.5 6.5 10.6 76.4 1 0 1 8 10 10.0 0.0 10.0 80.0 5 1 2 22 30 16.7 3.3 6.7 73.3 1 6 9 45 61 1.6 9.8 14.8 73.8 1 0 1 16 18 5.6 0.0 5.6 88.9 8 7 12 95 122 6.6 5.7 9.8 77.9 1 1 0 8 10 10.0 10.0 0.0 80.0 2 1 4 23 30 6.7 3.3 13.3 76.7 1 5 6 49 61 1.6 8.2 9.8 80.3 3 0 2 13 18 16.7 0.0 11.1 72.2 4 6 6 105 121 3.3 5.0 5.0 86.8 0 0 0 10 10 0.0 0.0 0.0 100.0 0 1 1 27 29 0.0 3.4 3.4 93.1 1 5 5 50 61 1.6 8.2 8.2 82.0 3 0 0 15 18 16.7 0.0 0.0 83.3 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 33

Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 (CONTINUED) Cost-saving strategy Consolidate administration Move to a PEO (Professional Employer Organization) Implement or expand a wellness program with incentives Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES 9 6 10 95 120 7.5 5.0 8.3 79.2 1 1 1 7 10 10.0 10.0 10.0 70.0 2 1 4 23 30 6.7 3.3 13.3 76.7 3 3 4 50 60 5.0 5.0 6.7 83.3 3 1 0 13 17 17.6 5.9 0.0 76.5 2 2 4 113 121 1.7 1.7 3.3 93.4 0 0 0 9 9 0.0 0.0 0.0 100.0 1 1 1 27 30 3.3 3.3 3.3 90.0 1 1 3 56 61 1.6 1.6 4.9 91.8 0 0 0 18 18 0.0 0.0 0.0 100.0 17 26 25 56 124 13.7 21.0 20.2 45.2 0 3 1 6 10 0.0 30.0 10.0 60.0 4 4 7 15 30 13.3 13.3 23.3 50.0 11 14 11 26 62 17.7 22.6 17.7 41.9 0 4 5 9 18 0.0 22.2 27.8 50.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 34

Cost-Saving Strategies Implemented in Response to Health Care Reform (ACA) Figure 27 (CONTINUED) Cost-saving strategy Institute furloughs Employee layoffs Company size by EEs We have already implemented this We plan to implement this in the next one to three years We plan to implement this at some point but we aren't sure when We do not plan to implement this TOTAL RESPONSES 1 1 1 119 122 0.8 0.8 0.8 97.5 1 0 0 9 10 10.0 0.0 0.0 90.0 0 1 0 30 31 0.0 3.2 0.0 96.8 0 0 1 59 60 0.0 0.0 1.7 98.3 0 0 0 18 18 0.0 0.0 0.0 100.0 5 1 0 117 123 4.1 0.8 0.0 95.1 1 0 0 10 11 9.1 0.0 0.0 90.9 0 1 0 30 31 0.0 3.2 0.0 96.8 4 0 0 56 60 6.7 0.0 0.0 93.3 0 0 0 18 18 0.0 0.0 0.0 100.0 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 35

SECTION 5: EXCHANGE MARKETPLACE Likelihood to Discontinue Health Care Coverage and Send Employees to a Public, State, or Federal Exchange Figure 28 Level of likelihood EEs EEs EEs EEs Very likely 6 4.2 3 20.0 1 3.1 2 2.9 0 0.0 Moderately likely 17 12.0 1 6.7 5 15.6 6 8.6 3 15.0 Very unlikely 119 83.8 11 73.3 26 81.3 62 88.6 17 85.0 TOTAL RESPONSES 142 15 32 70 20 Likelihood to Offer Benefits through a Private Exchange Marketplace Figure 29 Level of likelihood EEs EEs EEs EEs Very likely - we would like to do so as soon as possible 1 0.7 1 6.7 0 0.0 0 0.0 0 0.0 Very likely - we would like to do so in the next benefit cycle 1 0.7 0 0.0 0 0.0 1 1.4 0 0.0 Very likely - we would like to do so in the next one to two years 5 3.4 0 0.0 1 2.9 3 4.3 0 0.0 Somewhat likely - but we are not sure when 16 11.0 1 6.7 7 20.0 6 8.6 1 5.0 I would need more information before considering it 69 47.6 9 60.0 18 51.4 32 45.7 8 40.0 Not at all likely 53 36.6 4 26.7 9 25.7 28 40.0 11 55.0 TOTAL RESPONSES 145 15 35 70 20 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 36

Likelihood to Utilize Defined Contribution Funding Figure 30 Level of likelihood EEs EEs EEs EEs We already utilize a defined contribution approach 19 13.0 2 11.8 6 17.1 9 13.0 2 10.0 Very likely - as soon as possible 2 1.4 1 5.9 0 0.0 1 1.4 0 0.0 Very likely - next benefit cycle 4 2.7 0 0.0 1 2.9 3 4.3 0 0.0 Very likely - in the next one to two years 7 4.8 0 0.0 2 5.7 4 5.8 1 5.0 Somewhat likely 19 13.0 0 0.0 3 8.6 11 15.9 4 20.0 I would need more information 65 44.5 9 52.9 17 48.6 29 42.0 8 40.0 Not at all likely 30 20.5 5 29.4 6 17.1 12 17.4 5 25.0 TOTAL RESPONSES 146 17 35 69 20 Defined Contribution Funding Structures Currently In Place Figure 31 Defined contribution funding structure EEs EEs EEs EEs Same flat amount for all employees 21 50.0 2 66.7 4 44.4 12 50.0 3 50.0 A defined contribution for medical and/or dental with 100 employer-paid life and disability 16 38.1 1 33.3 5 55.6 9 37.5 1 16.7 A tiered approach that gives employees with dependents a higher contribution (variable 9 21.4 0 0.0 1 11.1 7 29.2 1 16.7 contribution) A mixed contribution with separate amounts for medical and/or dental and ancillary plans 9 21.4 2 66.7 3 33.3 3 12.5 1 16.7 Employees who waive medical can use the entire contribution for the purchase of other benefits 5 11.9 1 33.3 1 11.1 3 12.5 0 0.0 Employees who waive medical get a reduced contribution for the purchase of dental/ancillary 3 7.1 0 0.0 0 0.0 3 12.5 0 0.0 plans Employees forfeit any remaining credit at the end of the election process 3 7.1 0 0.0 1 11.1 2 8.3 0 0.0 TOTAL UNIQUE RESPONSES 42 3 9 24 6 To view the full Fourth Annual Nonprofit Employee Benefits Study, go to www.ppibenefits.com/public/resources/research.aspx. Page 37

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