partial termination and rehires

[DPL]

Has anyone dealt with issues involving:

- 2 participants terminated in the "applicable period" and were rehired 2 months later - same plan year -not that this means anything since our applicable period is 18 months? Due to 2 months not employed, one still worked 1000 hours each Plan year and received an employer contribution each year, but the other worked 900 hours in a Plan Year and did not receive an employer contribution that year. 401(b) passes.

-same as above but DOT is in one plan year and rehire date is in next year and also after the end of the applicable period

Generally, the guidance indicates that a participant becomes 100% vested if a partial plan termination has occurred and participant terminated during the period and employer cannot offer a rebuttal as to why a partial termination has not occurred. However, guidance on short-term absences between DOT and rehire date cannot be found.

[david rigby]

Are you saying:

(a) the termination of the 2 participants caused the partial termination, or

(b) the plan experienced a PT and these two other participants terminated employment at or near the same time, or

© other?

[DPL]

A hundred terminated participants in an 18-month period caused a partial plan termination. The calculated turnover rate was 30%.