METLIFE EMPLOYEE BENEFITS BENCHMARKING …

1 June2005 METLIFE EMPLOYEE BENEFITS BENCHMARKING REPORTF indings from a 2004 National Survey of Employers and EmployeesMarketInsight OVERVIEWMetLife EMPLOYEE BENEFITS BENCHMARKING Report2 Today, employers face many challenges when managing EMPLOYEE benefitsprograms. With costs escalating, employers must continually balance costcontrol measures against providing a robust BENEFITS package that canretain and attract employees. In addition, EMPLOYEE populations arebecoming increasingly diverse. Now more than ever, companies must meetthe varied needs of employees from multiple generations and life so many variables, and so many choices, how do employers knowthat they are hitting the mark?

2 The METLIFE EMPLOYEE BENEFITS BENCHMARKING report is an important toolthat BENEFITS professionals, brokers and consultants can use to compare acompany s EMPLOYEE BENEFITS plans and practices against those of its peersbased on size, industry and geographic location. The METLIFE EMPLOYEE BENEFITS BENCHMARKING report is based on findingsfrom METLIFE s 2004 Study of EMPLOYEE BENEFITS Trends, and covers BENEFITS -related topics from the perspectives of both employers andemployees. It s just one more way that METLIFE uses its experience andcommitment to the EMPLOYEE BENEFITS marketplace to help companiesbuild world-class solutions for their employees. The METLIFE 2004 Study of EMPLOYEE BENEFITS Trends is also available toemployers, brokers and consultants by visiting ABOUT THE RESEARCHC onducted during the third quarter of 2004, METLIFE s Study of EmployeeBenefits Trends consists of two distinct surveys, one that polls employeesand one that polls employers.

3 The EMPLOYEE survey, fielded by NOP Worldin September 2004, polled 1,542 voting-age consumers, 903 of whom were full-time employees at companies with at least 2 employees. A total of1,528 HR/ BENEFITS executives from companies with at least two employeesparticipated in the employer survey, which was fielded in September 2004by TNS/NFO. OVERVIEWMETLIFE EMPLOYEE BENEFITS BENCHMARKING REPORT3 For more information about METLIFE s other EMPLOYEE benefitsresearch please visit data in the EMPLOYEE BENEFITS BENCHMARKING report is presented inthe following categories:2-9 employees10-49 employees50-199 employees200-499 employees500-999 employees1,000-2,499 employees2,500-4,999 employees5,000-9,999 employees10,000-24,999 employees25,000+ employeesNortheastMidwestSouthWestConstr uction 15-17 Manufacturing 20-39 Transportation 40-49 Retail Trade 52-59 Finance/Insurance 60-67 Services 70-89 Public Administration 91-99 Size CategoriesRegionsIndustries by SIC CodesTABLE OF CONTENTS4 EMPLOYER SELF-ASSESSMENT OF BENEFITS PLANby Company SizeAll Employers342-9 Employees3410-49 Employees3550-199 Employees36200-499 Employees36500-999 Employees371,000-2,499 Employees382,500-4.

4 999 Employees38 EMPLOYEE BENEFITS PENETRATIONby Company SizeAll Employers122-9 Employees1310-49 Employees1450-199 Employees15200-499 Employees16500-999 Employees171,000-2,499 Employees182,500-4,999 Employees195,000-9,999 Employees2010,000-24,999 Employees2125,000+ Employees22by IndustryConstruction24 Manufacturing25 Retail Trade26 Finance/Insurance27 Services28 Public Administration29by RegionNortheast30 Midwest31 South32 West3312 TABLE OF CONTENTSMETLIFE EMPLOYEE BENEFITS BENCHMARKING REPORT5by IndustryConstruction42 Manufacturing42 Retail Trade43 Finance/Insurance44 Services44 Public Administration45by RegionNortheast46 Midwest46 South47 West48 MOST IMPORTANT EMPLOYEEBENEFITS OBJECTIVESby Company SizeAll Employers502-9 Employees5010-49 Employees5150-199 Employees52200-499 Employees52500-999 Employees531,000-2,499 Employees542,500-4,999 Employees545,000-9,999 Employees5510,000-24,999 Employees5625.

5 000+ Employees56by IndustryConstruction58 Manufacturing58 Retail Trade59 Finance/Insurance60 Services60 Public Administration6135,000-9,999 Employees3910,000-24,999 Employees4025,000+ Employees406 MOST IMPORTANT EMPLOYEE BENEFITSSTRATEGIESby Company SizeAll Employers622-9 Employees6210-49 Employees6350-199 Employees64200-499 Employees64500-999 Employees651,000-2,499 Employees662,500-4,999 Employees665,000-9,999 Employees6710,000-24,999 Employees6825,000+ Employees68by IndustryConstruction70 Manufacturing70 Retail Trade71 Finance/Insurance72 Services72 Public Administration73eBUSINESS PREVALENCE OF EMPLOYEE BENEFITS WEB SITESby Company SizeAll Employers74by IndustryAll Industries74by RegionAll Regions7545 TABLE OF CONTENTSTABLE OF CONTENTSMETLIFE EMPLOYEE BENEFITS BENCHMARKING REPORT7eBUSINESS TYPES OF ONLINE FUNCTIONALITY OFFEREDby Company SizeAll Employers762-9 Employees7610-49 Employees7750-199 Employees78200-499 Employees78500-999 Employees791,000-2,499 Employees802,500-4,999 Employees805,000-9,999 Employees8110,000-24,999 Employees8225.

6 000+ Employees82by IndustryConstruction84 Manufacturing84 Retail Trade85 Finance/Insurance86 Services86 Public Administration87by RegionNortheast88 Midwest88 South89 West9068 EMPLOYEE PREFERENCES METHODS FOROBTAINING BENEFITS INFORMATIONby Company SizeAll Employees922-9 Employees9210-49 Employees9350-199 Employees94200-499 Employees94500-999 Employees951,000-2,499 Employees962,500-4,999 Employees965,000-9,999 Employees9710,000-24,999 Employees9825,000+ Employees98by IndustryManufacturing100 Retail Trade100 Transportation 101 Finance/Insurance102 Services102 Public Administration103 EMPLOYEE PREFERENCES METHODS FORBENEFITS ENROLLMENTby Company SizeAll Employees1042-9 Employees10410-49 Employees10550-199 Employees106200-499 Employees106500-999 Employees1071,000-2,499 Employees1082,500-4,999 Employees1085,000-9,999 Employees10910,000-24,999 Employees11025.

7 000+ Employees11078 TABLE OF CONTENTSTABLE OF CONTENTSMETLIFE EMPLOYEE BENEFITS BENCHMARKING REPORT9by IndustryManufacturing112 Retail Trade112 Transportation113 Finance/Insurance114 Services114 Public Administration115 EMPLOYEE PREFERENCES METHODS FOROBTAINING BENEFITS SERVICEby Company SizeAll Employees1162-9 Employees11610-49 Employees11750-199 Employees118200-499 Employees118500-999 Employees1191,000-2,499 Employees1202,500-4,999 Employees1205,000-9,999 Employees12110,000-24,999 Employees12225,000+ Employees122by IndustryManufacturing124 Retail Trade124 Transportation 125 Finance/Insurance126 Services126 Public Administration127910 TABLE OF CONTENTSEMPLOYEE WORKPLACE ATTITUDES VOLUNTARY BENEFITSby Company SizeAll Employees128by IndustryAll Industries12810 EMPLOYEE WORKPLACE ATTITUDES EFFECTIVENESS OF BENEFITS COMMUNICATIONSby Company SizeAll Employees130by IndustryAll Industries13011 EMPLOYEE WORKPLACE ATTITUDES SATISFACTION WITH BENEFITSby Company SizeAll Employees132by IndustryAll Industries13212 EMPLOYER SURVEYMETLIFE EMPLOYEE BENEFITS BENCHMARKING REPORT11 EMPLOYEE BENEFITS

8 PENETRATIONby Company Size120%20%40%60%80%100%Pet InsuranceConcierge ServicesMortgage (Life Insurance)Home Owners/RentersEstate PlanAuto InsuranceBank CDs or MMAsAnnuities529 College Savings PlanLegal ServicesVariable Universal Life (GVUL)Whole LifeBank Savings AccountBank Checking AccountTravel/AccidentUniversal Life (GUL)Defined Benefit Pension PlanFinancial PlanCritical IllnessLong-Term CareTerm Life (for spouse/dependent)AD&DVisionTerm Life (for employees)Disability401(k)/Retirement PlansDentalMedical% ofEmployersOfferingEachBenefit AllemployersEMPLOYER SURVEYMETLIFE EMPLOYEE BENEFITS BENCHMARKING REPORT130%20%40%60%80%100%Pet InsuranceMortgage (Life Insurance)Concierge ServicesHome Owners/RentersBank Savings AccountBank Checking AccountBank CDs or MMAsEstate PlanAuto Insurance529 College Savings PlanWhole LifeVariable Universal Life (GVUL)Legal ServicesTravel/AccidentAnnuitiesUniversa l Life (GUL)Defined Benefit Pension PlanFinancial PlanTerm Life (for spouse/dependent)Long-Term CareCritical IllnessAD&DTerm Life (for employees)401(k)/Retirement PlansVisionDisabilityDentalMedicalNot sure who paysEmployee pays allCompany pays partCompany pays allEmployee BENEFITS Penetration (by Company Size, Industry & Region)

9 <Chapter 1% ofEmployersOfferingEachBenefit 2-9employeesEMPLOYEE BENEFITS PENETRATIONby Company Size14% ofEmployersOfferingEachBenefit 0%20%40%60%80%100%Pet InsuranceConcierge ServicesMortgage (Life Insurance)Home Owners/RentersAuto Insurance529 College Savings PlanLegal ServicesEstate PlanBank CDs or MMAsAnnuitiesVariable Universal Life (GVUL)Bank Savings AccountBank Checking AccountWhole LifeTravel/AccidentUniversal Life (GUL)Term Life (for spouse/dependent)Defined Benefit Pension PlanFinancial PlanLong-Term CareCritical IllnessAD&DVisionTerm Life (for employees)DisabilityDental401(k)/Retirement PlansMedical10-49employeesEMPLOYER SURVEYMETLIFE EMPLOYEE BENEFITS BENCHMARKING REPORT15 Not sure who paysEmployee pays allCompany pays partCompany pays allEmployee BENEFITS Penetration (by Company Size, Industry & Region) <Chapter 1% ofEmployersOfferingEachBenefit 50-199employees0%20%40%60%80%100%Pet InsuranceConcierge ServicesMortgage (Life Insurance)Home Owners/RentersAuto InsuranceAnnuitiesEstate PlanBank CDs or MMAsVariable Universal Life (GVUL)Legal Services529 College Savings PlanBank Savings AccountBank Checking AccountWhole LifeTravel/AccidentDefined Benefit Pension PlanUniversal Life (GUL)Financial PlanTerm Life (for spouse/dependent)

10 Long-Term CareCritical IllnessVisionTerm Life (for employees)AD&DDisability401(k)/Retiremen t PlansDentalMedicalEMPLOYEE BENEFITS PENETRATION by Company Size16% ofEmployersOfferingEachBenefit 0%20%40%60%80%100%Pet InsuranceMorgage (Life Insurance)Home Owners/RentersConcierge ServicesEstate PlanAuto InsuranceVariable Universal Life (GVUL)Whole LifeLegal ServicesBank CDs or MMAsAnnuitiesBank Checking AccountBank Savings AccountUniversal Life (GUL)529 College Savings PlanTravel/AccidentDefined Benefit Pension PlanTerm Life (for spouse/dependent)Financial PlanLong-Term CareCritical IllnessVisionAD&DTerm Life (for employees)DisabilityDental401(k)/Retirem ent PlansMedical200-499employeesEMPLOYER SURVEYMETLIFE EMPLOYEE BENEFITS BENCHMARKING REPORT17 Not sure who paysEmployee pays allCompany pays partCompany pays allEmployee