Automatic Enrollment Implementation
Is automatic enrollment permissible under law?
No
Explanation:
Public employees are required to provide written consent for any wage deferral, preventing the implementation of automatic enrollment in voluntary retirement plans.
Relevant State Laws – S.C. Code Ann. § 41-10-40, § 8-23-30
Wage withholding statute prohibits employers from withholding wages unless “required or permitted to do so by state or federal law or the employer has given written notification to the employee of the amount and terms of the deductions.” S.C. Code Ann. § 41-10-40
“[t]he State or any political subdivision of the State, by contract, may agree with an employee to defer a portion of his compensation in an amount as provided for in a plan approved by the Board of Directors of the South Carolina Public Employee Benefit Authority . . . .” S.C. Code Ann. § 8-23-30