### Question
What is the definition of automatic contribution arrangement?


### Answer
The definition of **automatic contribution arrangement** is as follows in *29 U.S.C. § 1144*:

> an arrangement—


(A) under which a participant may elect to have the plan sponsor make payments as contributions under the plan on behalf of the participant, or to the participant directly in cash,


(B) under which a participant is treated as having elected to have the plan sponsor make such contributions in an amount equal to a uniform percentage of compensation provided under the plan until the participant specifically elects not to have such contributions made (or specifically elects to have such contributions made at a different percentage), and


(C) under which such contributions are invested in accordance with regulations prescribed by the Secretary under section 1104(c)(5) of this title

#### Citation:
  - *29 U.S.C. § 1144*
  - Heading: **CHAPTER 18-EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM > SUBCHAPTER I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS > Subtitle B-Regulatory Provisions > part 5-administration and enforcement**

