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SSRRS

Union and now Non Union

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Hi,

A DB Plan excludes union employees (covered by collective bargaining agreement). An employee was hired by the company on 3/11/15 as a Union employee and was covered under their pension plan until he moved to a Non union managerial position on 8/31/17. If the plan's eligibility requirements is 12 months, would he not enter the plan until 12 months following 8/31/17 (1/1/19 due to entry date) or would he be eligible immediately on 8/31/17 due to the service for the company since 3/11/15 (ie using the service while a union employee). Thank you.

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He picks up all of the union service for vesting and eligibility. Your plan document should address entry for employees who move from ineligible classification of employee to eligible classification of employee.

 

 

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Thank you very much, Lou. He became non union on 8/31/17, If the entry dates are 1/1 and 7/1 he would not enter the plan until 1/1/2018. Correct?

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53 minutes ago, Lou S. said:

Your plan document should address entry for employees who move from ineligible classification of employee to eligible classification of employee.

Lou is correct, especially when saying to check the document (which should always be the first point of reference). All the pre-approved plans I've seen specifically tell you what to do. For example, in FTW it's clear the person would enter 8/31/2017.

Section 3.02       TRANSFERS

 If a change in job classification or a transfer results in an individual no longer qualifying as an Eligible Employee, such Employee shall cease to be a Participant for purposes of Article 4 (or shall not become eligible to become a Participant) as of the effective date of such change of job classification or transfer. Should such Employee again qualify as an Eligible Employee or if an Employee who was not previously an Eligible Employee becomes an Eligible Employee, he shall become a Participant for purposes of Article 4 for which the eligibility requirements have been satisfied as of the later of the effective date of such subsequent change of status or the date the Employee meets the eligibility requirements of this Article 3.

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59 minutes ago, SSRRS said:

Thank you very much, Lou. He became non union on 8/31/17, If the entry dates are 1/1 and 7/1 he would not enter the plan until 1/1/2018. Correct?

In our document he would be eligible and enter the plan 8/31/17 just as CuseFan describes above as our document has the same or very similar language. Your plan document might have different language, that's why you need to read the document.

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