Additional Automatic Enrollment Provisions Clause Samples
The "Additional Automatic Enrollment Provisions" clause establishes rules for automatically enrolling eligible individuals, such as employees, into a plan or program without requiring them to take action. Typically, this clause outlines the criteria for eligibility, the default contribution rates or plan options, and the process for opting out or making changes. By setting these automatic procedures, the clause helps increase participation rates and ensures compliance with regulatory requirements, while also simplifying administration for employers and reducing the risk of individuals missing out on benefits due to inaction.
Additional Automatic Enrollment Provisions. Automatic enrollment made in accordance with Section 5.03(c) of the Basic Plan Document is subject to the following:
(1) An initial pre-tax Deferral Contribution of 3.00% will be made for:
(A) Newly-eligible Employees on each such Employee’s Entry Date.
(B) Each Eligible Employee having a Reemployment Commencement Date will be treated as follows for purposes of the above-described automatic enrollment contributions:
(i) Shall not be automatically enrolled.
Additional Automatic Enrollment Provisions. Automatic enrollment made in accordance with Section 5.03(c) of the Basic Plan Document is subject to the following:
(1) An initial pre-tax Deferral Contribution of 3.00% will be made for:
(A) Newly-eligible Employees on each such Employee’s Entry Date.
(B) Each Eligible Employee having a Reemployment Commencement Date will be treated as follows for purposes of the above-described automatic enrollment contributions:
(i) Shall be automatically enrolled later of 30 days from date of rehire or Entry Date.