Caroline

Glorious. Thank you!

Thanks Lou! While I go attempt locate the rules permitting a change in eligibility, do you know the rule or regulation which gets to your conclusion? This is a path my customer is interested. I've explored the 1,000 Hr., Nondiscrimination, Anti-Cutback, and Safeharbor rules for this answer.

Thank you for your reply! I think you're right, and that's what I told the customer. If John Doe was hired in 2015 as a cashier and has followed the 1000 hour rule and other eligibility requirements, he can't be cut from participation (once in always in). The customer is asking me to figure out how to amend the plan to prevent specific jobs, "cashiers," from participating. So Tyler Doe who is hired in 2026 as a cashier cannot participate in the plan while John Doe is ok/grandfathered. I'm trying to find the rule or guidance on how to amend the plan for future employees and my goodness is it a stumper.

A customer has had a defined contribution plan for a while, participation is open to all employees if they work the threshold 1000 hours. Now, the customer wants to cut back on who can participate based on their job types. The customer understands it can't change the rules for present employees. But for John Doe who is hired next year in a job classification that will be cut, I'm not sure how the plan can be revised to maintain the present participants and prospectively cut job classes. I've drafted a web of the 1,000 Hour Rule and its implications if not followed; I've looked at non-discrimination rules; I've looked at the general plan amendment rules. I'm stumped. What other rules should I read to figure out this goal? So far it looks like the plan cannot be amended to prohibit future participants based on their job classification, but I have to imagine there is some mechanism that allows it.