NC H700

Requires participating employers to automatically enroll new employees hired on or after January 1, 2012, in a supplemental retirement plan during their second month of employment unless they have already voluntarily enrolled.

Automatically enrolled members have contributions of $20 per month deducted from their compensation and placed in a money market fund initially.

Provides a 90-day opt-out period during which members may cancel enrollment and receive a full return of all contributions on a pre-tax basis or roll over funds to another tax-qualified retirement account.

Each employer must elect either the 401(k) Plan or 457 Plan for automatic enrollment by October 1, 2011, and use the elected plan for all new employees; after the 90-day period, members are placed in moderate target-date portfolios (401(k)) or Reality Investing program (457 Plan).

Effective July 1, 2011.