Short plan year & 1000 hour rule for share of PS

[Guest Julie Woulfe]

Plan year was 8/1-7/31, but now has a short plan year 8/1-12/31/05 as it changes to calendar year plan. Document says you have to work 1000 hours in the plan year to get a share of PS. Employer wants to make a PS Contribution for the short plan year. Can we pro-rate the hours requirement for the short plan year?

[Belgarath]

Depends upon what your document says. All the documents that I have seen contain an automatic proration clause for this purpose, but I don't believe it is a REQUIRED provision for qualification.

[Archimage]

I agree. I have seen many plan docs that have failed to leave out this provision so the plan doc would require you work 1000 hours for the short plan year.