DRS Notice 24-013, Process for members who opt out of DCP auto enrollment

DRS Notice 24-013
Date: June 07, 2024
To: DCP Autoenroll Employers
Subject: DRS Notice 24-013, Process for members who opt out of DCP auto enrollment.

Reminder – do not refund DCP contributions to an employee who desires to opt out of DCP after being auto enrolled.

If an employee chooses to opt out of participation in DCP and a deduction has already taken place, the employee must reach out to the DCP record keeper (VOYA) and request a permissible withdrawal before their 90-day window ends.

The following information (and more) can be found in Chapter 11 of the DRS Employer Handbook:

What are some important time frames?

• 30 days (30-day opt out period, or 30-day window) the amount of time a new employee has to opt out of DCP without having a deferral. The 30 days begin when the record keeper notifies the new hire about automatic enrollment.
• 90 days (90-day window, or permissible withdrawal period) the amount of time a new employee has to stop a deferral AND still withdraw any automatic enrollment contributions. The 90 days begin with the first deferral from an employee’s paycheck. At any time within the 90 days, if the employee makes an elective choice for their DCP account, the permissible withdrawal period ends.

Can the employee get their money back out of DCP if they choose to opt out following the first contribution?

Yes, this is known as the permissible withdrawal period. If the employee makes this choice within 90 days from first deferral date, they may withdraw their automatic enrollment contributions from DCP as long as the record keeper received the request within the 90 days.

How can the employee submit a permissible withdrawal request and is it still subject to tax withholding?

The employee can call the DCP record keeper at 888-327-5596 to request an auto enrollment withdrawal. The record keeper must receive the withdrawal request by the end of the 90-day window. Because the employee contributions are pretax dollars, the tax withholding is 10%.

If you have questions about this notice, please contact Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2.