Check the following section 33.102 (mine is release 11 document) section 6.4.2 which says -
1) If the MS and the network have no versions of the UEA algorithm in common and the network is not prepared to use an unciphered connection, then the connection shall be released.
2) If the MS and the network have no versions of the UEA algorithm in common and the user (respectively the user's HE) and the network are willing to use an unciphered connection, then an unciphered connection shall be used.
3) If the MS and the network have at least one version of the UEA algorithm in common, then the network shall select one of the mutually acceptable versions of the UEA algorithm for use on that connection.
This text looks to be 3G text but logically the behavior should be same for LTE too. Comments welcome.