PFranckowiak Posted February 6, 2020 Share Posted February 6, 2020 Eligibility 3 consecutive months Assume Hired 2/15/2013 works only 400 hours a year. Came into plan 7/1/2013 Terminated 8/1/2019 Rehired 2/1/2010 Never had 501 hours so they are all breaks in service. Doc says we can exclude if employee had 5 or more consecutive breaks in service. Does that include the years he was working too? never put any money in the plan Thanks Link to comment Share on other sites More sharing options...
ESOP Guy Posted February 6, 2020 Share Posted February 6, 2020 Read your plan's definition of a Break in Service very carefully. Most plans simply say a BIS is any year a person works <501 hours. Some plans I have seen say any year terminated and works <501 (rare but I have seen it). If it simply says a BIS is any year a person works <501 hours I think this person had a BIS all the years they worked. So this person has 5 BIS in 2019. That has been my understanding of these rules. I have a number of staffing firm clients that can have many people do what you describe and we have consistently said you can work in a year and still have a BIS. It seems odd but I think it is true. It will be interesting to see other people's take on this. Luke Bailey 1 Link to comment Share on other sites More sharing options...
C. B. Zeller Posted February 6, 2020 Share Posted February 6, 2020 39 minutes ago, PFranckowiak said: Eligibility 3 consecutive months Based on counting hours, or elapsed time? If elapsed time, the hours don't matter and the service spanning rule means you don't have a period of severance. Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
PFranckowiak Posted February 6, 2020 Author Share Posted February 6, 2020 Not elapsed time. Company just switched from a year of service to three consecutive months. Link to comment Share on other sites More sharing options...
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