Should a non-ERISA and non-EACA automatic-contribution arrangement send annual notices?

[Peter Gulia]

Imagine an automatic-contribution arrangement under a governmental (non-ERISA) plan that does not provide a permissible withdrawal and so need not be an eligible automatic contribution arrangement. (The plan allows only salary-reduction contributions; there is no nonelective or matching contribution.)

Imagine also that the State statute that enables the plan and its automatic-contribution arrangement does not require an annual notice.

Even if no law requires it, should the plan's administrator do annual notices?

What arguments might one make for omitting annual notices?

[Belgarath]

Well, hard to know not knowing facts and circumstances, but presumably the employees are notified of the ACA at hire, or in the employee benefits manual, or upon plan eligibility, or SOMETHING like that, so perhaps the argument might e along the lines (stated more nicely, perhaps) of the following:

"We're an employer, not a babysitter. We tell them (whenever - at date of hire, etc.) and it is their responsibility thereafter. Any employee who doesn't want it can make a new election - either to stop deferrals, or change to a different deferral amount. Not going to waste time and taxpayer dollars doing needless notices that aren't legally required."