Automatic Enrollment Notices

[DTH]

Plan is an EACA, eligibility is 1 year of service with quarterly entry. Just taking a poll ---

How are you basing the notice timing - off of the enrollment date or the first payroll date after the enrollment date?

The regs say eligible employee, I assume they really mean when the EE can participate in the plan. They are not clear about the mid-year entry timing - seems to leave too much room for interpretation. The "reasonable time" rule of thumb usually is 30 days before the notice is required.

Here are the "clear as mud" EACA regs. section:

1.414(w)-1(b)(3)(iii) Timing--(A) General rule. The timing requirement of this paragraph (b)(3)(iii) is satisfied if the notice is provided within a reasonable period before the beginning of each plan year (or, in the year an employee becomes an eligible employee, within a reasonable period before the employee becomes an eligible employee). In addition, a notice satisfies the timing requirements of paragraph (b)(3) of this section only if it is provided sufficiently early so that the employee has a reasonable period of time after receipt of the notice and before the first elective contribution is made under the arrangement to make the election described under paragraph (b)(ii)(A) of this section.

(B) Deemed satisfaction of timing requirement. The timing requirement of this paragraph (b)(3)(iii) is satisfied if at least 30 days (and no more than 90 days) before the beginning of each plan year, the notice is given to each eligible employee for the plan year. In the case of an employee who does not receive the notice within the period described in the previous sentence because the employee becomes an eligible employee after the 90th day before the beginning of the plan year, the timing requirement is deemed to be satisfied if the notice is provided no more than 90 days before the employee becomes an eligible employee (and no later than the date the employee becomes an eligible employee).