Tracy Fedele

It is a FIS/Relius document. It does have a section for the EACA but this is auto enrollment with auto escalate only so I am unsure those specific rules will apply for this purpose. Below is the section of the plan document outlining affirmative election under the EACA. Based on this, I think they could elect to cap the auto increase if this also applies to vanilla Auto Enrollment/Increase. (viii)Effect of Affirmative Election. A Participant's Affirmative Election continues in effect until the Participant subsequently revokes or modifies his or her Salary Deferral Agreement, or the Affirmative Election expires. A Participant who makes an Affirmative Election is not thereafter subject to the Automatic Deferral or to any scheduled increases thereto, even if the Participant later revokes the Affirmative Election or the Affirmative Election, unless the Participant is subject to the EACA. In addition, a Participant who is subject to the EACA provisions who revokes his or her Affirmative Election or whose Affirmative Election expires, will be deemed to have made an Affirmative Election to have no Elective Deferrals made to the Plan.

I have a plan that has auto enroll. They are going to add auto escalate at 1% per year up to 6%. My understanding is that a participant can elect/agree with the auto escalate but elect a cap/maximum of less than the 6% maximum. Example, Nancy New is auto enrolled at the 2% but completes the enrollment form indicating she wishes the auto increase to stop at 4%. Is this possible? We have a bit of an internal debate within the office on this. Thanks!