That’s how the language is written now. But the IRS hasn’t agreed. And there isn’t a single optional MBCBP out there. So if it ends up being mandatory it will be an issue.

The opt in or out by contract cycle is an attempt to create optionality within the confines of current guidance. The treasury typically has allowed major plan changes to happen without penalty when a CBA changes.

I strongly support an optional MBCBP, and would love a world where you could elect to change your participation amounts like a 401k. But if it’s mandatory, the plan needs to go away.