Automatic Enrollment (Negative elections)

[Guest Rich Krahulec]

We have just initiated an automatic enrollment program in our 401(k) plan. Of our first affected group, 9% opted out, 19% elected in before the end of the period, and the balance 72% became auto enrolled. Does anyone else have any experience with auto enrollments?

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[Guest JF]

There is still a question out there as to whether ERISA preempts the state laws regarding non-authorized deductions from an employee paycheck. The law firm of Reich & Luftman have issued a formal request to DOL to get an answer to this question, I believe Manulife has also done the same. The letter may be on the R&L website.