Suspend Auto-Increase for Deferrals

[Guest AEA]

Employer has EACA (not QACA) with auto-increase provision, which is set to go into effect May 1st -- usually the date that annual salary increase go into effect. Thanks to the economy, the employer has adopted a salary freeze to avoid layoffs. The employer does not want to burden participants with the auto-increase in their deferrals and asked if they could simply suspend the increase "until a later date". While I already told them that any suspension should be date certain, I was wondering if anyone else had this come up.

Amending the plan to remove the auto-increase completely or to delay the effective date for another year, does not seem to be an anti-cutback issue, since it has not taken effect. Concerned about the EACA notice sent last fall, but would think could re-notice everyone with the delayed effective date.

Any thoughts??