FMLA

[austin3515]

Does anyone know of a good write-up regarding the impact of FMLA on retirement plan administration? I know they must be treated as active on the last day of the Plan Year, but I'm curious if they need to be credited with any hours of service?

[masteff]

Quoting directly from the CCH 2002 US Master Employee Benefits Guide:

(Pg 625) "Benefit Protection - Once an employee returns to work, benefits must be resumed at the same level as when leave began, without any new qualification period... An employee is not entitled to accrue additional benefits during a period of unpaid leave..."

(Pg 628) "Pension Benefits - Employees will not be deemed to accrue hours of service during periods of unpaid FMLA leave (paid leave is counted for service). However, any period of unpaid FMLA leave may not be treated as or counted toward a break in service for purposes of vesting and eligiblity to participate."

(Unfortunately I don't have my CCH Retirement Plans Guide w/ me to cross-check what it says.)

[JanetM]

If FMLA is due to maternity/paternity leave you have to give hours to avoid break in service. Doesn't the plan define hour of service. Most of our plans allow up to 501 hours to be granted if on a qualified leave.

[austin3515]

The doc does provide that maternity/paternity leaves cannot cause a break, but it doesn't mention FMLA leaves in particular.

Are there any sites on the Internet?

[austin3515]

29 CFR 825.215 paragraph d(4)

http://www.dol.gov/dol/allcfr/Title_29/Par...9CFR825.215.htm

[JanetM]

You can opt to give hours of service for unpaid leave, you don't HAVE to give hours for unpaid leave. The plan document should determine. Does the plan say you get hours credit for all paid hours?