hour of service for on-call time
Posted 14 June 2000 - 10:26 AM
Posted 15 June 2000 - 02:53 PM
Hope this helps.
Posted 15 June 2000 - 03:43 PM
As you said, not a popular answer as far as the client is concerned. I would also argue that it is an unfair result as it will lead to many part-time employees being included in the plan even though they don't work very many hours. Thus, I am wondering if anyone has taken the opposite position.
Posted 15 June 2000 - 05:43 PM
posed to the DOL.
In this case, the plan benefits were based on base compensation, or a minimum amount per ee per year of service (prorated for partial years <1800 hours in a plan year). An ee with only 1,000 hours got 10/18 of a year of service. In any event, it was a pain but we let them in and they don't accrue that much - in this groups' case the additional plan expense was very minimal. On the other hand, it was a pain to gather accurate data.
Does your group have really have a lot of part-timers that will be in the plan because of this?
Is this a DB plan or 403(B)?
Posted 15 June 2000 - 06:48 PM
Posted 22 June 2001 - 11:03 PM
Just an FYI, However, you may already be aware. I'm not suggesting that you go digging and open up a can of worms but you have to be careful with the part-time, on-call, and seasonal issue. As you know the exclusion of "classes" based on service is a direct violation of the minimum age and service rules. I have noticed that a lot of hospitals are having this problem. Also you want to be conizant of the Erisa Code that defines a "disguised service condition" with relevance to part-time and, or seasonal workers. The code also makes reference to the plan loosing their qualified status, if found in violation of this rule, or in the case of a 403(B), it would be subject to loosing their not-for-profit status.
I ran into this problem not too long ago and we are still reviewing it. Our position at this point is the Fiduciary is ultimately responsible and they must tell us, as administers of the plan, how they wish to proceed because we cannot offer legal advice. However, information was sent advising, since there is so little guidance on valid class definition, classification is subjective, and because the area is so gray, we recommend they seek legal council. The DOL really tends to frown on these types of violations.
Just a thought.. Thanks