Auto-Enrollment

[jpod]

Anyone see any concerns with this structure:

New hires eligible to participate voluntarily after 90 days of employment.  Auto-enrollment kicks in after 12 months of employment for those who as of that date have not voluntarily enrolled.  

 

[jpod]

Any takers on this?  Although I haven't seen it done before and it seems like something that is likely to create mistakes, off the cuff I don't see any legal problems with it. 

[RatherBeGolfing]

35 minutes ago, jpod said:

Any takers on this?  Although I haven't seen it done before and it seems like something that is likely to create mistakes, off the cuff I don't see any legal problems with it. 

I don't think I have seen it before.  I agree that from administrative point of view its likely to be a headache and create problems.  Not sure about the legality.  

What is the reasoning for waiting a year for the auto-enroll?  Generally speaking,  the idea behind auto-enroll is to encourage savings by combating participant passivity and apathy.  Do they just want to make sure they are lazy for 12 months rather than 90 days?

[jpod]

No need to get into the "why" here.  Employer's mind is made up.

[Peter Gulia]

jpod, returning to your query:

Will the sponsor's desired design fit within the fill-in-the-blanks or further specifications allowed for the preapproved document the sponsor uses?

If not, will the sponsor pay for whatever document variation is needed?

 

[jpod]

FGC:  Irrelevant to my question.

[RatherBeGolfing]

I can't think of anything that would prohibit it off the top of my head