Eligibility and Auto Enroll

[Guest lgm]

Would a plan be permitted to have immediate eligibility, but have a 6 month or 1 year wait for automatic enrollment to kick in? Would the answers differ if it were an EACA or QACA?

Thanks!

[Guest SeanA]

Anybody have any thought on this? In attempting to automate the Automatic Contribution notices and implement the initial default contributions. Plans with immediate eligibility are giving me fits! If I could delay the automatic enrollment until the next quarter, life would be good!

Would a plan be permitted to have immediate eligibility, but have a 6 month or 1 year wait for automatic enrollment to kick in? Would the answers differ if it were an EACA or QACA?

Thanks!

[Guest jims]

The final regulations issued in February 2009 had some surprises. Immediate eligibility doesn't seem possible for a QACA. You must get notices to people with reasonable enough advance time for them to make election before the default election. However the default election has a specific latest date that is a function of when a paycheck is issued and when a notice is received. The default election must also provide for matching contribuitons on all eligible pay. Immediate eligibility doesn't seem possible unless you can deliver notices at a reasonable time before people even begin to work and accomodate their election right away also. Good luck