Auto Enroll Auto Escalation

[austin3515]

Is there an issue with having auto enroll effective 1/1/15 and then the first auto escalation 7/1/15? Something in our document is ambiguous about when the first escalation can occur.

[Guest jims]

Autoescalation is an annual event which may be measured by 12 months. When will you be escalating in subsequent years?

[austin3515]

Every 7/1 thereafter.

Initial: 1/1/15

First 7/1/15

2nd 7/1/16

Future 7/1/XX

[Belgarath]

I'm really not sure. I'm assuming it is neither a EACA nor a QACA? If just a "regular" ACA, it seems like this might be possible - you'd certainly have to comply with reasonable notice requirements for the mid-year first escalation, at the very least. I think that it is an aggressive stance at best, and being of an essentially conservative nature on these things, I wouldn't recommend it to a client, and if the document is ambiguous rather than crystal clear, I'd again opt for conservatism.

I'm really not as boring outside of work...

[austin3515]

We're trying to have an EACA. So are there rules regarding when escalations can occur? I have tried to avoid auto enrollment like the plague, not to mention auto escalation!!

[GMK]

I have tried to avoid auto enrollment like the plague

For what reason(s)? just curious.

[austin3515]

Client's have a habit of making mistakes