Washington Administrative Code › Title 415 - Retirement Systems, Department of › Chapter 415-501 - Deferred compensation plan › AUTOMATIC ENROLLMENT › Section 415-501-400 - What is automatic enrollment?

Current through Register Vol. 24-14, July 15, 2024
Effective January 1, 2017, state agencies and higher
				  education employers must automatically enroll new full-time employees into the
				  deferred compensation program (DCP). Students who work at a college or
				  university and retirees who return to employment are exempt from automatic
				  enrollment. Local employers, including school districts, may use the automatic
				  enrollment provisions by submitting a resolution to the department.
For state employees and some higher education employees,
				  fulltime status is defined in WAC
				  357-01-174. For employees not
				  covered under WAC
				  357-01-174, the definition of
				  "full time" is at the employer's discretion.
The default deferral amount is pre-tax with a rate of three
				  percent of your taxable compensation. You may change these at any time (see WAC
				  415-501-450 for details).
The default investment is the Retirement Strategy Fund that
				  assumes you will retire at age 65. You may change your investments at any time
				  (see WAC 415-501-475 for details).
If you are automatically enrolled in DCP, you will receive a
				  mailed notification of automatic enrollment. If you want to alter your
				  automatic enrollment, here are some actions you can take:
(1) Opt out: To prevent the three percent
				deferral from being deducted from your paycheck, opt out within 30 days of the
				date on the automatic enrollment notification. To do so, change the three
				percent default deduction to zero through your established online account or by
				contacting the DCP record keeper.
(2) Suspend enrollment and remove your
				contributions: Following your automatic enrollment, you may withdraw DCP
				deferrals that have been taken from your paycheck. To do so, change the three
				percent default deduction to zero and request a permissible withdrawal request
				form. The completed withdrawal request must be received by the DCP record
				keeper within 90 days of your first payroll contribution under this section.
				You will receive a distribution of your contributions, plus or minus earnings.
				These distributions are not eligible for rollover. If you do not request a
				permissible withdrawal within 90 days from your first payroll contribution,
				your contributions will be subject to the provisions for distributions
				described in WAC
				415-501-485.
(3) Change your contribution: Adjust your
				contributions to a smaller or larger whole percentage or select a specific
				whole dollar amount. With DCP, you may change your contribution amount at any
				time. Changing your contribution within the first 90 days of automatic
				enrollment verifies your participation in the program, making you no longer
				eligible for permissible withdrawal.
(4) Change your investment selection: Select
				another DCP investment option. With DCP, you can change your investment options
				at any time.
(5) Reenroll: If you
				opt out, you may reenroll in DCP at any time (see WAC
				415-501-410).