Automatic Enrollment Implementation
Is automatic enrollment permissible under law?
No
Explanation:
The North Carolina Public Employee Deferred Compensation Plan Document and the Supplemental Retirement Income Plan of North Carolina have provisions that would permit automatic enrollment if it is authorized by the NC General Assembly. However, automatic enrollment has not been authorized by the NC General Assembly.
Relevant State Laws – N.C. Gen. Stat. Ann. § 95-25.8
“(a) An employer may withhold or divert any portion of an employee’s wages when: (1) The employer is required or empowered to do so by State or federal law; (2) When the amount or rate of the proposed deduction is known and agreed upon in advance, the employer must have written authorization from the employee which (i) is signed on or before the payday(s) for the pay period(s) from which the deduction is to be made; (ii) indicates the reason for the deduction; and (iii) states the actual dollar amount or percentage of wages which shall be deducted from one or more paychecks. Provided, that if the deduction is for the convenience of the employee, the employee shall be given a reasonable opportunity to withdraw the authorization; or (3) When the amount of the proposed deduction is not known and agreed upon in advance, the employer must have written authorization from the employee which (i) is signed on or before the payday(s) for the pay period(s) from which the deduction is to be made; and (ii) indicates the reason for the deduction. Prior to any deductions being made under this section, the employee must (i) receive advance written notice of the actual amount to be deducted; (ii) receive written notice of their right to withdraw the authorization; and (iii) be given a reasonable opportunity to withdraw the authorization in writing.”