Understanding Auto-Enrollment
If a congregation elects Auto-Enrollment on their Employer Participation Agreement (EPA) see Election #1, it means that the employer has committed to deducting a certain percentage of every employee's compensation from their paycheck for remittance to their retirement plan account at the Plan recordkeeper. The auto-enrollment percentage specified on the Employer Participation Agreement is the default; an employee can stop or change the amount of their contribution at any time.
Auto-enrollment is a great way for congregations to encourage their staff to save for their future. However, this option properly requires continuous attention and diligence to ensure compliance. The majority of congregations participating in the UU Retirement Plan do not choose to auto-enroll their employees.
Remember, any employee of any congregation participating in the UU Retirement Plan can make elective contributions through salary deferral. The difference with auto-enrollment is that elective contributions are initiated by default and continue until/unless the employee makes a different election.
If your congregation has chosen auto-enrollment, these reminders are for you:
- Notify every employee upon hire that, unless they affirmatively choose otherwise with 30 days of hire, the specified percentage of their wages will be deducted from their paycheck and remitted to their retirement plan account at the recordkeeper as an elective contribution.
- Remind all employees that they can login to their account and change their salary deferral elections at any time. The ability to opt-in, opt-out, or change their amount exists at all times during employment.
- Remit elective contributions to the recordkeeper promptly after deducting from employees' pay.
Please contact RetirementPlan@uua.org with questions or for help correcting errors.