Automatic Enrollment & rehires

[R. Butler]

Participant termiates, is later rehired. Under the plan document this participant is immediately eligible. Plan has an automatic enrollment feature. If the participant doesn't make a new salary deferral election should that participant be automatically enrolled? My inclination is yes, but I don't see it specifically addressed in the plan document.

Thanks in advance for any guidance.

[J Simmons]

Participant termiates, is later rehired. Under the plan document this participant is immediately eligible. Plan has an automatic enrollment feature. If the participant doesn't make a new salary deferral election should that participant be automatically enrolled? My inclination is yes, but I don't see it specifically addressed in the plan document.

Thanks in advance for any guidance.

When you say immediately eligible on re-hire, that does not necessarily mean immediately re-enters. Some plans specify the re-hire yet has to wait until the next plan entry date (unless he resumed work on a plan re-entry date).

Whenever his re-entry date is, that would be the date for the automatic enrollment feature to apply to him (in the absence of a plan provision to the contrary). If he had an election in place at the time his first stint being employed ended, I do not think you could resume deferrals on that election--unless the plan so specified.