Classification - part-timers?

[Guest rickw]

Is it feasible to have, among others, a classification for full-time hygienists and another classification for part-time hygienists? Apparently there is a concern that a classification can't be a "disguised service requirement" and that a "part-time" definition is not acceptable.

Your thoughts?

[Kirk Maldonado]

You may want to look at Treasury Regulation Section 1.410(a)-3(e)(2), Example (3).

[Guest rickw]

Kirk: Looks right on point. Thanks!

I guess I am trying to get greedy: Is it feasible to require 1,000 hours/1 Year in general, but have a LOOSER standard (1 hour, immediate participation) for specific NHCE Classifications? So, Class = Hygienists would have 1 Hr/Immed. while everyone else had 1000/1 year.

I'll put a copy of the cite here, in case some folks don't have access to it.

"A plan which requires 1 year of service as a condition of participation also excludes a part-time or seasonal employee if his customary employment is for not more than 20 hours per week or 5 months in any plan year. The plan does not qualify because the provision could result in the exclusion by reason of a minimum service requirement of an employee who has completed a year of service. The plan would not qualify even though after excluding all such employees, the plan satisfied the coverage requirements of section 410(B)."

[E as in ERISA]

I've seen plans with determination letters that have an eligibility requirement something along the lines of "1 year and 1,000 hours, but immediate entry for those regularly scheduled to work 1,000 hours during the year"