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I'm not sure I understand. The auto defer / auto escalate almost always go hand in hand. If a participant is subject to one, they are subject to both. When plans implement these provisions for the first time they have to decide who it applies to. 1. New hires only 2. Current eligible employees who have never made a deferral election (this might be zero based on your description, but I find most larger companies there are at least a FEW who didn't opt out or in) 3. Current eligible employees who have never made a deferral election, or ones whose current deferral election is 0% 4. Current eligible employees who have never made a deferral election, or ones whose current deferral election is less than the starting auto enroll - in this case 1% Which of the above will apply to your plan? Only scenario 4 would require any sort of analysis. 1% is pretty low, is there a baseline paycheck you can examine to calculate the % for those that are deferring flat amounts? Moving forward - the auto escalation applies to folks who you auto-enrolled. If you never autoenrolled them, then their election stays as whatever they elected. Even if it would end up being less than what they would be at under the escalation. Very rarely (but it does happen) do I see the auto escalation bifurcated from the auto enrollment, and each provision is applied separately. You'll have to read your plan document to see if that is the case.

Interesting! I don't even know what you are considering rude. There are MANY people who just read these posts, and the answers posted are intended to be educational for all the folks listening in. If folks can learn a better approach to asking questions by reading these comments, we have accomplished much. If you are offended, you might want to keep the above in mind.