Eligibility Question

[Guest andmik]

Hello:

I am stuck on what I initially perceived to be an easy question. Plan requires One Year of Service and Age 21 for eligibility.

Participant completes his One Year of Service by completing 1000 hours in the initial 12 months of employment. He never reaches Age 21, and terminates service.

He is rehired on a later date about 2 years after terminating, and upon his rehire is now Age 21.

Does he enter the Plan immediately? Or does he now have to complete the One Year of Service again, at which point he would enter the plan at the next entry date?

I find a Q&A on the same subject where the employee completed his Year of Service in 2002, but then had two subsequent years where he did not complete 1000 hours but remained employed, and then turned 21 in 2004. He is deemed to enter at the next entry date after turning 21. The termination of service in my example is hanging me up.

Any insight/feedback will be greatly appreciated.

Andmik

[austin3515]

Gotta read the plan's provisions on rehires.

It is possible that he is immediately, or he may have to wait a year. The Plan should be specific on this.

[Guest andmik]

Austin:

Thanks for the response. Here in lies the problem, cannot make a definitive determination. Will have plan sponsor make final determination. Seems as though if it is that muddy in the document that they should err on side of participant and let him in.

Regards,

Andmik

[Bird]

I thought you couldn't disregard prior service until the greater of 5 break years or the actual prior service (or is that only for vesting?)?

As I see it, he has a year of service on his re-employment date, and he is 21, so he is eligible. The only question is does he enter immediately or at the next entry date, which should be in the document.

[austin3515]

Some Plans will make you wait until you complete a year of service. MOST say anyone who satisfied the requirements (or does it say former participants?) come in right away. Can you type in what your document says about rehires? Otherwise we're all just guessing...

[Guest andmik]

Bird and Austin:

We have come to the conclusion that he should come in immediately. The problem is that prior to this most recent hire (couple of weeks ago) he had an interim period of employment back a couple of years ago where they did not let him, when they probably should have so now they are faced with SCP to address the issue.

Thanks for your help with this one.

FYI - Document Language:

(2) If he/she was not an Active Participant in such Component prior to the earlier Termination of Service, he/she will become an Active Participant in such Component on the date he/she is reemployed in Covered Employment, provided he/she satisfies the age and service requirements both on such date and on the immediately preceding Entry Date after taking into account the Break in Service rules under Sec. 3.3.

Thanks,

Andmik

[Blinky the 3-eyed Fish]

First, you said he wasn't 21 during his first stint of employment, so why should he have been let in back then?

Also, what does 3.3 of your document say? If the plan imposed the BIS requirements, then like Austin said, he may have to complete a year of service before being retroactively let in the plan.

[Bird]

If the plan imposed the BIS requirements, then like Austin said, he may have to complete a year of service before being retroactively let in the plan.

Oh, OK, I didn't realize that's what Austin was referring to (retroactive entry). Yes, that's a possibility. I found that to be such a nuisance that i don't use it and have pretty effectively put it out of my mind.