44-319a. Automatic enrollment in an employee retirement plan; requirements. - Kansas Statutes

44-319a

Chapter 44.--LABOR AND INDUSTRIES Article 3.--PAYMENT OF COMPENSATION

      44-319a.   Automatic enrollment in an employeeretirement plan; requirements.(a) Any employer which provides automatic enrollment inan employee retirementplan described in sections 401(k) or 403(b) of the internal revenue code, or agovernmental deferred compensation plan described in section 457 of theinternal revenue code, or a payroll deduction IRA plan described in section 408or 408A of the internal revenue code, shall be relieved of liability for theactual decisions made by the employer on behalf of any participating employeeas to the default investment of contributions made for that employee to theplan or program provided that:

      (1)   The plan allows the participating employee at least quarterlyopportunities to select investments for the employee's contributions betweeninvestment alternatives available under the plan;

      (2)   the employee is given notice of the investment decisions that will bemade in the absence of participant direction, a description of all theinvestment alternatives available for employee investment direction under theplan and a brief description of procedures available for the employee to changeinvestments; and

      (3)   the employee is given at least annual notice of the actual defaultinvestments made of contributions attributable to the employee.

      (b)   As used in this section, "automatic enrollment" means a plan provisionunder which the employee will have a specified contribution made to the planequal to a compensation reduction that will be made for the employee unless theemployee affirmatively elects no compensation reduction contributions or acompensation reduction contribution in another amount. The relief fromliability of the employer under this section shall extend to any other planofficial which actually makes the default investment decisions on behalf ofparticipating employees.

      (c)   Nothing in this section shall modify any existing responsibility ofemployers or other plan officials for the selection of investment funds forparticipating employees.

      History:   L. 2006, ch. 68, § 1; July 1.