with respect to any employee, any percentage determined under the arrangement if such percentage is applied uniformly, does not exceed 15 percent, and is at least— (i) 3 percent during the period ending on the last day of the first plan year which begins after the date on which the first elective contribution described in subparagraph (A) is made with respect to such employee, and (ii) during any subsequent plan year, a percentage equal to— (I) 3 percent, plus (II) 1 percent multiplied by the number of plan years (but not more than 12) beginning after the plan year described in clause (i). (2) Notice (A) In general The requirements of this paragraph are met if, within a reasonable period before the first day an employee is eligible to participate in the arrangement, the employee receives written notice of the employee’s rights and obligations under the arrangement which— (i) is sufficiently accurate and comprehensive to apprise the employee of such rights, and (ii) is written in a manner calculated to be understood by the average employee to whom the arrangement applies. (B) Timing and content A notice shall not be treated as meeting the requirements of subparagraph (A) with respect to an employee unless— (i) the notice explains the employee’s right to elect not to have elective contributions made on the employee's behalf (or to elect to have such contributions made at a different percentage), (ii) the notice explains how contributions made under the arrangement will be invested in the absence of any investment election by the employee, and (iii) the employee has a reasonable period of time after receipt of the notice described in clauses (i) and (ii) and before the first elective contribution is made to make either such election. (3) Default investment arrangement The requirements of this paragraph are met if— (A) in the absence of an investment election by the employee with respect to the employee’s interest in the trust, such interest is invested as provided in regulations prescribed pursuant to subparagraph