EACA to QACA

[PMC]

Plan includes an EACA - default contribution percentage of 3%.

Effective 1-1-09 the Plan wants to amend to a QACA with the default contribution percentage set at 6%.

For those participants who were automatically enrolled under the EACA at 3% and have made no election to the contrary, must they be increased to 6% once the QACA becomes effective in 2009?

[WDIK]

So far, I have avoided learning the intricacies of QACA's like moldy saltines and rabid ducks, so take this opinion in stride.

The same notice and qualified percentage should apply to all eligible employees.

[K2retire]

So far, I have avoided learning the intricacies of QACA's like moldy saltines and rabid ducks, so take this opinion in stride.

The same notice and qualified percentage should apply to all eligible employees.

I agree with both statements above. But I've attended some discussions with folks who work elsewhere who are firmly of the opinion that a plan can have some participants who are covered by EACA but not QACA, others who are covered by QACA but not EACA, and still others who are covered by both. Why anyone would even consider establishing such a situation (if it is truly allowed) is beyond my comprehension!