The notice must be:
- comprehensive and sufficiently accurate to inform employees of their rights and obligations under the retirement plan¡¯s automatic contribution arrangement and
- understandable by the average employee.
An EACA notice must contain an explanation of the following:
- the plan¡¯s automatic enrollment contributions default percentage rate;
- the right to not participate;
- how to elect to not participate;
- how to elect to contribute an amount different from the plan¡¯s default percentage rate for automatic enrollment contributions;
- how to make an investment election, if permitted by the plan;
- how automatic enrollment contributions will be invested if the employee doesn¡¯t elect investment options, if the plan permits employees to elect investments; and
- if the plan allows, how and when to withdraw any automatic enrollment contributions.
A QACA notice must explain the following:
- the plan¡¯s default percentage rate for automatic enrollment contributions, including the amount and timing of any increases;
- the type and amount of the employer contributions;
- the right to not participate;
- how to elect to not participate;
- how to elect to contribute an amount different from the plan¡¯s default percentage rate for automatic enrollment contributions;
- how to make an investment election, if the plan permits this; and
- if the QACA contains two or more investment options, how the plan will invest automatic enrollment contributions if the employee doesn¡¯t elect investment options.
The employer may also be required to provide additional information to an employee under the rules.