Different Eligibility Rules For Different Classes

[Randy Watson]

Would it be permissible to have different eligibility rules for different classes of employees as long as it did not discriminate in favor of HCEs? Based on the fact that you can completely exclude a particular class of employees from participating, it seems like you should be able to do this.

[R. Butler]

Sure it is possible to have different eligbility requirements for different classes of employees. We had a plan like that at one time; it was absolute nightmare to administer.

[rcline46]

Also note that because you have different eligibilites, you will have to do all non-discrimination testing based on the shortest eligibility.

I cannot think of any reason to do this (unless you are dealing with multiple locations).

[david rigby]

That depends. Is one of the classes related to collective bargaining?

[Randy Watson]

Yes, different divisions....no CBA.

[rcline46]

Different companies permitting a QSLOB? I think I would at least double my fees for this. Its gonna be TROUBLE!

[Kirk Maldonado]

rcline46:

If you only double your fee for a QSLOB, you are very, very cheap, assuming that you will make the determnation of whether there is a QSLOB.

I've only had one client in over twenty years that would fit into the QSLOB definition, and they didn't need to qualify as a QSLOB. The IRS said that they only expected 750 companies in the country to qualify as QSLOBs.