Eligibility - 6 Month Service

[Guest Golden401k]

This is a non-stand prototype plan. No break-in service rule. Calendar year plan with dual entry dates.

Example: DOH 07/06/06. DOT 09/06/06. DOH 07/06/07. DOT 09/06/07. DOH 07/06/08. DOT 09/06/08. etc....When does this employee satisfy the the service requirement? Would the 6 month elig computation period end 01/06/07, regardless of employment and he would therefore become eligible the later of entry date or rehired date which would be 07/06/08? Or does this employee satsify the 6 month requirement when he actually complete 6 months of service, which would be 09/06/08 so his entry date would be 07/06/09? I know it's a real gripping issue, but I keep thinking about the 12- Month Year of Service option, which continues regardless of employment. Does the same apply for the 6 month serice?

[rcline46]

You need to work with the 1.410(a)-7 rules on service spanning, and the break in service rules to see what you need to count and what you can ignore. Remember that you are working with elapsed time rules in this situation and you have special considerations.

[Guest Golden401k]

The plan doc has elected the Actual Method for crediting hours of service. Does the 6-month elig election override this?

[Leopurrd]

The plan doc has elected the Actual Method for crediting hours of service. Does the 6-month elig election override this?

I think that what RCline meant is that you usually do not have an hours requirement with an eligibility period of less than 6 months, so technically the eligibility portion of your doc is on elapsed time. (Say someone works 10 hours a month, only 60 hours in 6 months, and hey...they meet the service period of your doc. Same with a full time person. They may have worked over 1,000 hours in the 6 month period and they're eligible too).

You can still use actual hours for crediting years of service for other plan purposes, like vesting.