Yes it does! I once had a South Carolina dynasty and the game automatically scheduled Clemson fro me every year so I assume it does that for the other rivalries.
The only weird thing to that is if you have an out-of-conference (OOC) rivalry like Clemson that is supposed to be the last game on your schedule, for some reason the game tacks on another OOC game after it. The can be avoided by simply adding another game near the front of your schedule and deleting the one at the end. The game fights you over this but play around with your OOC games by adding the max amount of games so you can drop that last game.
Hope this helps.