Section 3. Modified Notice Requirement

3.1 The notice provided to Eligible Employees immediately prior to the 60-day election period must include, for employees described in Section 1.2 above, a comprehensive explanation of the employee’s rights and obligations under the Automatic Contribution Arrangement, written in a manner calculated to be understood by the average employee described in Section 1.2 above.

3.2 The notice must accurately describe:

(a) The amount of default salary reduction contributions that will be made on the Eligible Employee’s behalf in the absence of an affirmative election and when default salary reduction contributions will start;

(b) The Eligible Employee’s right to elect to have no salary reduction contributions made on his or her behalf or to have a different amount of salary reduction contributions made;

(c) How default salary reduction contributions will be invested in the absence of the Eligible Employee’s investment instructions; and

September 28, 2009 422 2009–39 I.R.B.

(d) If not already permitted under the SIMPLE IRA Plan, the additional period (described in Section 4 below) to make a transfer without cost or penalty from the SIMPLE IRA established for the Eligible Employee at the designated financial institution.