dual eligibility for full time/part time in safe harbor plan

[JanetM]

Hi all - need your expert opinions on this one. Came accross plan that uses 3% non-elec safe harbor contribution to avoind ADP testing. (so far so good)

Plan design is as follows:

People hired as "full time" employees are eligible to join plan on 31st day of employment.

People hired as "part time" are eligible to join after completion of one year service (with the requisite 1,000 hours).

Problem is some part time employees are those who work 30 hours a week, and some full time people work 30 hours per week.

At first I rationalized this as being dual elibility that could be explained as being certain job classes are part time and some are full time. This is not the case -for example - order entry takers are both full and part time and all work 30 hours per week. Now this raises other questions and problems

Now full time receive safe harbor at the 30 day point. Part timers who get the 1,000 hours in the year join on first anniversary and at that point start receiving safe harbor.

My gut feeling is the part timers who had the 1,000 hours should get the safe harbor for first year - just like full timers.

Have feeling this is bad plan design but can't place my finger on code cite to prove it. Can anyone give me hard and fast cite? Any help would be appreciated.