D.C. Mun. Regs. tit. 6, r. 6-B2612

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 6-B2612 - AUTOMATIC ENROLLMENT

2612.1

All eligible employees newly hired or rehired (those employees who have had a break in service of three (3) consecutive workdays or more) on or after June 10, 2019, shall be automatically enrolled in the 457(b) Plan. All eligible employees hired or rehired before June 10, 2019, may elect to enroll in the 457(b) Plan as provided in § 2613.2.

2612.2

All participants who are automatically enrolled shall be deemed to have elected to defer five percent (5%) of their annual base salary, as pre-tax deferrals ("Default Deferrals").

2612.3

Participants who are automatically enrolled may increase, reduce, or cease the amount of their deferrals to the 457(b) Plan at any time. An automatically enrolled participant who elects to cease deferrals during the first thirty (30) days of employment shall be entitled to a distribution under § 2612.6.

2612.4

Automatically enrolled participants shall be provided with written notification of the 457(b) Plan Automatic Enrollment policy by the effective date of their appointment. The notice shall explain:

(a) The employee's rights under the 457(b) Plan to designate how deferrals and earnings will be invested;

(b) How, in the absence of an investment election by the employee, such deferrals and earnings will be invested;

(c) The percentage of the employee's base salary that will be deferred to the program;

(d) The employee's right to increase, reduce, or cease his or her deferrals to the program;

(e) How an employee may elect investments and change or cease deferral amounts under the 457(b) Plan; and

(f) The employee's right to make a permissive withdrawal from the Default Deferrals, and the procedures governing such withdrawals.

2612.5

Each automatically enrolled participant shall sign an acknowledgement that he or she received the written policy as specified in § 2612.4 of this section. A legal guardian's signature is needed if the eligible participant is under eighteen (18) years of age.

2612.6

Automatically enrolled participants may elect, within thirty (30) calendar days after the first day of employment, to withdraw the Default Deferrals (as adjusted for gains and losses to the date of distribution) made on his or her behalf to the 457(b) Plan. The withdrawal shall be processed, and any amounts owed shall be distributed to the participant, within sixty (60) calendar days after receipt of a request to withdraw the Default Deferrals. Any such withdrawal request will be treated as an affirmative election by the automatically enrolled participant to cease having Default Deferrals made on his or her behalf as of the date of the withdrawal request.

2612.7

Any deferrals, as adjusted for gains and losses, made by the District pursuant to § 2612.1 with respect to any Default Deferrals being withdrawn pursuant to § 2612.6 shall be forfeited.

2612.8

Default Deferrals made on behalf of automatically enrolled participants shall begin no later than the first pay period after the effective date of appointment.

D.C. Mun. Regs. tit. 6, r. 6-B2612

Final Rulemaking published at 67 DCR 004744 (5/1/2020)