EACA with Auto Escalation - Notice Requirements

[ERISAAPPLE]

Plan year is calendar year.  Quarterly entry dates.  Auto Escalation occurs on anniversary of entry dates.

Is the notice still required within 30-90 days before plan year?

Example: Jane enters the plan on October 1, 2018, makes no election, and employer automatically withholds 3%. On October 1, 2019, provided Jane makes no election, employer will automatically withhold 4%.

Result: Jane must receive the notice for the 2019 plan year between October 1, 2018 and December 1, 2018.

The Adoption Agreement allows the employer to elect escalation on anniversary of entry dates.  The basic plan document says the notice is provided 30-90 days prior to plan year.

This is an EACA, not a QACA.

This doesn't seem right.  

 

  

[ERISAAPPLE]

I guess I will tell the client the regs require the notice to be sent prior to the beginning of the plan year, and recommend they send a reminder notice 30-90 days before the escalation becomes effective.