Automatic Enrollment

[PMC]

Plan uses an ACA. What they want to do is each year require an eligible employee to decline to make deferrals or they will withold deferrals. So an eligible employee who declines when first eligible will have to decline again the following year and the following year (etc. etc.) or the employer will withhold.

Is this acceptable? Any laws (Fed or State) being violated? Once a participant declines under AE isn't it up to them to decide to participate?

[Bill Presson]

Plan uses an ACA. What they want to do is each year require an eligible employee to decline to make deferrals or they will withold deferrals. So an eligible employee who declines when first eligible will have to decline again the following year and the following year (etc. etc.) or the employer will withhold.

Is this acceptable? Any laws (Fed or State) being violated? Once a participant declines under AE isn't it up to them to decide to participate?

I know that a law firm here in town does the same thing.

Doesn't really speak to whether it's legal or not.