PMC

Part-time/temporary exclusion

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Little trouble understanding the part-time/temporary exclusion -

Plan has a 6 month eligibility requirement (no specified # of hours required). The Plan also wants to exclude part-time employees and includes the QAB wording if complete 1000 hours within eligibility computation period will be included.

1. Is it correct to assume that if a p-t employee does complete 1000 hours they also have to be employed on the last day of the eligibility computation period - the way a typical year of service works?

2. Since "regular" non part-time employees only have to complete 6 months of service and yet those considered to be part-time employees must essentially complete a year of service, are there any compliance/coverage issues with that?

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Little trouble understanding the part-time/temporary exclusion -

Plan has a 6 month eligibility requirement (no specified # of hours required). The Plan also wants to exclude part-time employees and includes the QAB wording if complete 1000 hours within eligibility computation period will be included.

1. Is it correct to assume that if a p-t employee does complete 1000 hours they also have to be employed on the last day of the eligibility computation period - the way a typical year of service works? You are not required to be employed on the last day of the eligibility computation period in order to get credit for a year of service; the year of service just cannot be credited until the last day day of the plan year. If the p-t employee is not employed as of their entry date, they don't enter the plan...is that what you meant?

2. Since "regular" non part-time employees only have to complete 6 months of service and yet those considered to be part-time employees must essentially complete a year of service, are there any compliance/coverage issues with that?

Yes, the coverage rules say you must include in the coverage ratio those who met the lowest age/service requirements (i.e. 6 months of service) but the issue is generally negated by using the otherwise excluable rule to complete compliance and coverage testing.

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