Automatic Enrollment Implementation
Is automatic enrollment permissible under law?
No
Explanation:
Public employees must provide written authorization for wage deferrals, prohibiting the implementation of automatic enrollment in voluntary retirement plans.
Relevant State Laws – Neb. Rev. Stat. § 48-1230, § 84-1504
Nebraska’s Wage Payment and Collection Act permits an employer to deduct, withhold, or divert a portion of an employee’s wages only when the employer is required to or may do so by state or federal law or by order of a court of competent jurisdiction, or the employer has a written agreement with the employee to deduct, withhold, or divert. Neb. Rev. Stat. § 48-1230.
The Public Employees Retirement Board “may contract with any individual to defer a portion of such individual’s compensation or with the Legislative Council to defer any other amount that the Legislative Council agrees to credit to an individual’s account pursuant to section 457 of the Internal Revenue Code.” Neb. Rev. Stat. § 84-1504