AlbanyConsultant Posted January 14, 2021 Share Posted January 14, 2021 This is kind of an off-shoot of another question I had earlier... For the many plans that have a YOS requirement (or some other hours... but mainly YOS, I suspect), there might be an issue where employees who were otherwise expected to be working enough hours to meet eligibility had their hours reduced due to COVID (layoffs, etc.) and now didn't meet that threshold in whatever eligibility computation period you're looking at that covers 2020. These people just... don't become eligible yet, right? Nowhere in any of the regulations or relief was there anything like they get additional credit for some number of hours for purposes of X, Y, and Z including retirement plan eligibility, was there? Not that I'm expecting that people who were out of work for months to be putting retirement savings at the forefront of their financial decisions, but this also likely affects eligibility for safe harbor and other employer contributions, so they're going to be a year behind (in the best-case scenario) for those contributions. Link to comment Share on other sites More sharing options...
FORMER ESQ. Posted January 15, 2021 Share Posted January 15, 2021 17 hours ago, AlbanyConsultant said: so they're going to be a year behind (in the best-case scenario) for those contributions. I want to emphasize (best-case scenario) in your statement. In my opinion, it will be a few years before most employers and employees begin to focus on retirement benefits. Right now, the focus is retaining cash and surviving. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now