1. (a) Notwithstanding anything to the contrary in § 5106 of this title, a covered employee who does not opt out shall be automatically enrolled into the 457(b) [26 U.S.C. § 457(b)] plan at the default rate specified by the Board pursuant to subsection (b) of this section.
2. (b) The initial default contribution rate shall be established by the Board. The initial default contribution rate may be changed by the Board from time to time. The initial default contribution rate may not be less than 3% of compensation. The Board may determine in its discretion to increase the automatic default contribution rate for all covered employees based on their years of participation, provided that such increases may be either 1% or 2% of compensation and shall not occur more frequently than annually. The maximum default contribution rate established by the Board may not exceed 15% of compensation. The initial or subsequent default contribution rates shall apply to all covered employees who do not affirmatively select a different initial or subsequent contribution rate. All contribution rates are subject to the dollar limits on contributions provided by law. A covered employee shall have the right to change the contribution amount or cease participating in the plan, subject to rules adopted by the Board.
3. (c) Contributions shall be invested in the default investment unless the covered employee affirmatively elects to invest some or all balances in one or more approved investment options offered in the 457(b) [26 U.S.C. § 457(b)] plan. Contributions normally shall start within 90 days of employment, subject to the new employee’s right to opt out. The Board shall select an age-appropriate target date fund as the default investment. A covered employee shall have the opportunity to change investments for future contributions or existing balances or both, subject to rules adopted by the Board. A covered employee who wishes to cease contributions and obtain a refund of amounts contributed to the plan pursuant to automatic enrollment must opt out of the plan and request the return of the employee’s account balance within the deadline established by the Board, which deadline may not exceed 120 days from the date of employment.

4. (d) (1) The Board must provide every covered employee with advance notice that includes all of the following:

   1. a. A notification of the covered employee’s impending automatic enrollment into the 457(b) [26 U.S.C. § 457(b)] plan, the default contribution rate, and the investments purchases that will be made in the absence of the employee’s affirmative election.
   2. b. A description of the rules and procedures for opting out of automatic enrollment.
   3. c. A description of the rules and procedures for changing the contribution amount.
   4. d. A description of the rules and procedures for selecting a different investment option.
   5. e. A description of all investment options available under the plan.
   6. f. A description of the rules and procedures for requesting the return of the employee’s account balance and the consequences of failing to make such request by the deadline established by the board.
   7. (2) The Board or its designee shall provide notice required under this section to new employees as soon as practicable after the start of employment.
5. (e) The Board shall determine whether contributions to default investment options are pre- or post-tax.
6. (f) Covered employees who opt out of automatic enrollment may at a later date affirmatively elect to participate in the deferred compensation program.
7. (g) Any agency or other entity with covered employees must provide all employee data necessary for automatic enrollment.
8. (h) The Board shall promulgate such rules, procedures, and regulations as are necessary to implement this section.

85 Del. Laws, c. 399, § 3