Collective bargaining

[Guest jetfaninmn]

I have a plan that excludes Collective Bargaining Employees. On May 1, 2006 a participant in this category became a salaried employee. His original date of hire was in 1996 and he has always worked 1000 hours.

My question, the plan has eligibility requirements of 21 and 1 year of service with entry dates of 1/1 and 7/1. There in no provision in the plan for previous service.

When does this person enter the plan? Immediately? 7/1/06? 1/1/07? 7/1/07?

[Leopurrd]

i would think immediately. the document should state something about switching from an excluded to an included group?

[JanetM]

I would also say immediately. Make sure you are consistant with how you apply this to anyone who transfers. Do corrective amendment to the plan clarifying what happens to transfers.

[BG5150]

The BPD should spell out what a year of service is.

[Guest mjb]

Doesn't ERISA require that that the plan count all service with the employer after age 18/21 for vesting & eligibility service (but not for benefit accrual)? While the employee can be excluded from participation as a member of an ineligible class if the employee become a member of the eligible class at a later date then all service with the employer is counted for vesting and eligibility. Therefore the employee is a participant in the salaried plan on day 1 with a 0 accrued benefit.

[PLAN MAN]

mjb is correct. If the employee is age 21 or older, has earned a year of service & passed an entry date, and is only be kept out of participating in the plan because he is a union employee - then as soon as he is no longer a union employee he is eligible to participate in the plan immediately.

This is not a question of prior service. The employee is an active employee and is earning service with the employer. Once his status changes he is eligible for the plan - on May 1, 2006.

[Guest Pensions in Paradise]

Just so its crystal clear, his date of participation is May 1, 2006.