Plan Entry w/18 month Year's of Service

[Jean]

A plan defines an eligibilty computation period as the 12 consecutive months starting on hire date. Future computation periods are the plan year (calendar). The employee is required to work 1000 hours in a computation period. For a fractional year there are no hours required. Plan entry is semi-annual. Service is credited at the end of the computation period.

If the year of service requirement is 18 months, and the employee does not work 1000 hours in the intial computation period, should the eligiblity date be based on the first entry date after a 12 month period in which an employee meets the 1000 hours plus 6 more months.

Hire date is 7/2/02

Initial computation period is 7/2/02 - 7/1/03 (<1000 hours worked)

Second computation period is 1/1/03 - 12/31/03 (>1000 worked)

Is the plan entry date 1/1/04 or 7/1/04?

[JanetM]

I would say 1/1/04. Service requirement is met as of 12/31/03 since you say service is credited at end of period. Next entry date is 1/1/04.