match contribution for auto enroll

[Santo Gold]

Plan sponsor wants to start safe harbor auto enroll, effective 1/1/08. Match will therefore be 100% on first 1% deferred, and 50% on the next 5% deferred. Current company match is 50% on first 6% deferred. Since the auto enroll match would be better than the existing match, it's a no-brainer then, that the company match must be amended to be in line with the auto enroll match. Correct?

On the other hand, if the current match was better than the auto enroll match, would anyone try to keep the 2 match formulas? One for auto enroll, one for everyone else?

[Guest Pensions in Paradise]

If the employer is going to have different match levels for "auto enrolled" versus "elected enrolled", make sure they have employees sign confirmations of everything. Otherwise how do you prove someone was auto enrolled instead of elected enrolled. Because a smart employee will be able to produce an election form after-the-fact showing they elected to enroll in the plan.

[austin3515]

Sounds like you're discouraging people from enrolling! I wouldn't go anywhere near that.