Eligibility

[Guest jetfaninmn]

A plan has the following eligibility requirement:

500 hours in a six month period. Entry date is 1/1.

A participant is hired on 8/22/04 and worked 550 hours by 12/31/04. Entry date should be 1/1/05, correct? A takeover plan I have either missed this or their system missed it because the participant has been flagged as eligible 1/1/06!

[pmacduff]

If you only have the one entry date then it would seem to be correct. The employee had >500 hours, but he doesn't hit 6 months until 02/22/2005, thereby moving his entry date to 01/01/2006. I don't know why you would only have 1 entry date with a 6 months service requirement, though...

[Guest jetfaninmn]

If you only have the one entry date then it would seem to be correct. The employee had >500 hours, but he doesn't hit 6 months until 02/22/2005, thereby moving his entry date to 01/01/2006. I don't know why you would only have 1 entry date with a 6 months service requirement, though...

So the 1/1/06 is correct? I interpret the provision that any time in the 6 month period that a person worked the 500, they became eligible and would enter at the next entry date. So if the provision was met in 12/31/04, then 1/1/05 would be the entry date.

[WDIK]

I believe the plan document could read either way.

1) The eligibility requirement is satisfied as soon as the hours requirement is met during the time period; or

2) The eligibility requirement is satisfied at the conculsion of the stipulated time period if enough hours were attained.

Hopefully, the plan document is specific enough to clarify the situation.

(Edited for either poor spelling or poor typing.)

[saabraa]

How does the plan define "eligibility computation period" and "entry date?"