Mid-year change in automatic enrollment percentage

[britoski]

Employer has an automatic contribution arrangement (ACA- but not an EACA or a QACA) and wishes to change the default deferral percentage mid-year. Assuming that the employer will provide 30 days notice and option to opt out, is there any concern that the arrangement will fail to meet the ERISA preemption requirements under 514(e) because the annual notice will not have specified the new deferral percentage? In other words, the annual notice will become inaccurate as of the date of the change- is this cured by the 30 day notice, or will the employer have to wait to make the change until the beginning of the plan year?