Automatic Enrollment Implementation
Is automatic enrollment permissible under law?
No
Explanation:
Public employees must provide written consent for any wage deferral, preventing the implementation of automatic enrollment for voluntary retirement plans.
Relevant State Laws – Ala. Code § 36-26-14, § 11-91-1
State employees, or the employees of any city, town, county, or public entity or corporation organized pursuant to the laws of the state to participate in deferred compensation plans established by the state personnel board on a voluntary basis by authorizing in writing to their employer a reduction in their cash remuneration to be placed in the plan or plans. Ala. Code § 36-26-14
Similar requirements also apply to political subdivisions that obtain and maintain individual annuity contracts, retirement income policies or group annuity contracts to provide a retirement plan. Ala. Code § 11-91-1