Automatic Enrollment Implementation
Is automatic enrollment permissible under law?
Partially
Are automatic enrollment and automatic escalation permissible under law?
State employees hired on or after July 1, 2012 (not including employees of political subdivisions or state universities and colleges) are automatically enrolled in the state plan. Employees of political subdivisions cannot be automatically enrolled in any defined contribution plan.
Relevant State Laws – Mo. Rev. Stat. Ann. § 105.915, § 105.925
“Except as provided in this subsection, participation in such plan shall be by a specific written agreement between state employees and the state, which shall provide for the deferral of such amounts of compensation as requested by the employee subject to any limitations imposed under federal law. . . Each employee eligible to participate in the plan hired on or after July 1, 2012, shall be enrolled in the plan automatically and his or her employer shall, in accordance with the plan document, withhold and contribute to the plan an amount equal to one percent of eligible compensation received on and after the date of hire, unless the employee elects not to participate in the plan within the first thirty days of employment, and in that event, any amounts contributed and earnings thereon will be refunded by the plan to the employee pursuant to the procedure contained in the plan documents. Employees who are employed by a state college or university shall not be automatically enrolled but may elect to participate in the plan and make contributions in accordance with the terms of the plan.”Mo. Rev. Stat. Ann. § 105.915
“As provided in sections 105.900 to 105.925, any city, county, institution of the state of Missouri, or other political subdivision may establish for its employees a deferred compensation program. Participation shall be by written agreement between such employees and the legislative authority of the city, county, institution, or other political subdivision providing for the deferral of such compensation and the subsequent investment and administration of such funds.” Mo. Rev. Stat. Ann. § 105.925.