Accrual of benefits for plan using the elapsed time method for the purpose of sharing in allocations or contributions

[Guest Jane Freeman]

If a plan uses the elapsed time method for the purpose of sharing in allocations or contributions, how do you determine who is entitled to an allocation or contribution? The adoption agreement (Corbel document) indicates that a participant must complete a period of service (rather than a year of service under the hours of service method) if the elapsed time method is elected. The document does not define a period of service for that purpose. Is a period of service 12 months or can a certain number of months be selected by the plan sponsor? Any input from those that use the elapsed time method would be greatly appreciated.

[Blinky the 3-eyed Fish]

It should be clear in the adoption agreement or supporting plan document what the period of service is that needs to be completed. If not, then QDROphile can chime in on what he thinks of your document. Perhaps someone familiar with this doc can assist where to look.

[FundeK]

The adoption agreement will reference the basic plan document which defines the period of service. The Corbel document I just looked at defined the period of service to be a 12 month period starting on the date of hire. What does yours state?

[R. Butler]

Have you looked at the Service Crediting Method in the Adoption Agreement? You should find that Plan Sponsor has made an election on how to convert, days, weeks, months, etc. into hours.