An employer may automatically enroll employees in the new retirement plan–linked emergency savings account (PLESA) program, but the employees must be given the chance to opt out, the U.S. Department of Labor (DOL) said last week.
"Automatic enrollment is not the same as mandatory participation," the department said, in a set of frequently asked questions on the new program. "Employees must be given written notification before they are automatically enrolled into a PLESA program, and they have the right under federal law to opt out and withdraw their money at no charge."
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