Benefits Link/Benefits Buzz/ 4/21/2004: Letter Clarifies IRS Position on Issues Relating to Automatic Enrollment 401(k) Plans (The Human Capital practice of Deloitte Consulting LLP)

[Guest RJM]

The bottom of the article reads:

"Other Automatic Enrollment Issues

The general information letter does not address the ERISA fiduciary issues raised by automatic enrollment arrangements. Nor does it address questions about whether such arrangements violate certain states' wage garnishment laws. Those issues are under the jurisdiction of the Department of Labor and the relevant states, respectively. "

Does anyone know where there is a list of which states require written consent (for 401(k) salary deferrals)?

[Alf]

I thought that "the" DOL advisory opinion request that was filed and publicised a few years ago on the preemption issue referred to several, if not all of the state laws, but I do not have a link.

[Harwood]

Most states, understandably, require written authorization before you can make "voluntary" deductions from a person's paycheck.

This link discusses some of the issues: http://www.reish.com/practice_areas/EmpBen...irsguidance.cfm

[Guest RJM]

Harwood, your link is interesting but a bit dated (1999) as are many of the other discussions found here in the Message Boards:

http://benefitslink.com/boards/index.php?s...t=0entry34697

http://benefitslink.com/boards/index.php?s...t=0entry83040

http://benefitslink.com/boards/index.php?s...t=0entry31508

http://benefitslink.com/boards/index.php?s...t=0entry70816

In 2001, Texas brought out its PayDay Law which seems to require written consent for Elective Deferrals.

http://www.texasworkforce.org/news/efte/te...on_summary.html

Surely some Texas based auto-enrollment plan has addressed this issue already.