Automatic Enrollment

[Guest Stacy1002]

I have a plan that started using automatic enrollment and immediate eligibility as of 7/1/06. The plan only applies the automatic 3% to employees hired after that date it does not look at exsisting participants. The plan does not increase the amount automatically each year. It will remain 3% unless the participant elects. Also the plan provides for a default investment to an asset allocation portfolio based on the participants age absent of any election from the participant. The plan will not utilize the safe harbor options that is available for automatic enrollment plans.

I can't seem to find guidance on what if any type of notice I should be providing. Currently the employee is receiving the form to opt out or change the election at the time of employment since the plan provides for immediate eligibility.

I can't seem to find consistent language.

Thanks

-Stacy