What happens if an employee opts out of automatic escalation?

When an employee opts out of automatic escalation, their contribution rates remain unchanged. Automatic escalation is a feature designed to increase an employee's contribution percentage to their retirement plan at predetermined intervals (typically annually) unless the employee actively chooses to opt out.

By opting out, the employee has decided not to participate in this increase, thus their current contribution rate will remain the same as it was prior to the opt-out. This means that the immediate impact is that their contributions will not rise as they would have if they stayed in the automatic escalation feature.

The other options suggest consequences such as removal from the plan, halting of employer contributions, or receiving no contributions at all; these are not typical outcomes merely from opting out of automatic escalation. Employees can still maintain their participation and receive the benefits of their current contribution without being subjected to automatic increases.