Safe Harbor Plan Option allowed by the PPA

The PPA waives the nondiscrimination testing requirements for plan sponsor who have a Qualified Automatic Contribution Arrangement (QACA).  These are often referred to as safe harbor automatic enrollment arrangements.  This requires meeting the EACA requirements and complying with two additional requirements. Read the rest of this entry »

The PPA allows plan sponsors state preemption for automatically enrolling employees without written consent just by maintaining an “ERISA” qualified plan and providing notice to employees.  There are two types of automatic contribution arrangements under the PPA: Eligible Automatic Contribution Arrangements (EACA) and Qualified Automatic Contribution Arrangements (QACA).  In this blog we will discuss the EACA.  Read the rest of this entry »