Loan payments and participant on strike.

[FundeK]

Is a participant who is on strike considered to be on an unpaid leave of absence for purposes of making loan payments? Can he suspend for up to one year if the loan policy allows for suspension?

What about a person who is laid off? Are they considered terminated or on an unpaid leave?

Thanks

[QDROphile]

Unpaid leave does not happen in a vacuum. The employer has leave policies. Most leave policies require permission to go on leave, except for certain mandated leaves such as FMLA. If the absence is not within the leave policy, it is not a leave.

I have been told that strike is treated as employment for various NLRB purposes. This may affect interpreation of plan documents and leave policy statements. As usual, you have to see what the plan document says.

Layoff is another interpretation issue, and can be influenced by the employers's facts and circumstances, including patterns of layoff and rehire. A good plan document with have detailed terms on the subject.