Automatice Enrollment (Not EACA/Not QACA)

[KateSmithPA]

Plan began an automatic enrollment program in 2007 at 2%. (Just a regular automatic enrollment plan , not EACA or QACA). Now, client wants to raise the automatic enrollment deferral rate to 3%, BUT ONLY for new enrollees. They do not want to up the % for prior enrollees.

May they do that?

Thank you.

[JanetM]

With the proper notice I don't see why not. Are they looking to be EACA or QACA? If they are, IMHO, they should wait till 1/01/09.

[KateSmithPA]

No, I do not believe they will become a QACA. Thank you for your response.