Automatic Enrollment Implementation
Is automatic enrollment permissible under law?
No
Explanation:
Public employees must provide written authorization for wage deferrals, preventing the implementation of automatic enrollment in voluntary retirement plans unless it is collectively bargained.
Relevant State Laws – RI Gen. L. § 28-14-3.2, 28-14-10
“No employer shall deduct or withhold from the payment of wages owed to an employee for the performance of work or other reason set forth in this chapter, any monies not authorized by federal or state law or by court order, without first getting written or electronic approval from the employee.”
“(a) None of the sections of this chapter shall be applicable to, control, or prohibit the deduction from wages of an employee by an employer in accordance with the terms of a collective bargaining agent of a majority of the employees in a bargaining unit of employees in which the employee is employed; provided, that the amount deducted from the wages of the employee is to be: (1) used for the purpose of defraying the costs of legal services, counsel fees, or contribution to a prepaid legal services plan for those employees, their families, and their dependents, or (2) paid to pension, welfare, vacation, or annuity plans or an insurance plan for accident, health, disability, or life coverage or similar plans, complete provisions for which are contained in a collective bargaining agreement or a supplemental agreement as provided in them between the employer and the authorized bargaining agent of the employees and those plans are for the benefit of employees, their dependents, and beneficiaries in the bargaining unit, including full-time employees of the labor organization, provided it shall make the same payment for its employees to that plan or plans.
(b) None of the sections of this chapter shall be applicable to, control, or prohibit the deduction from wages of an employee by an employer in accordance with a written request made by the individual employee of:
(5) Contributions to a pension plan in which the employee is a participant not required by a collective bargaining agreement entered into between the authorized collective bargaining representative of an employee and his or her employer.”