employee terminates, paid out, rehired part time?

[Lori H]

A participant wants to terminate, get paid out her vested balance and the come back the following week as a part time employee. Quite obviously this participant wants access to her funds. While this does not seem like an option, review of the plan document does not specifically address such a situation. What is to prohibit such a distribution? She just shows up as a rehired participant with a distribution on the 2007 census.

[david rigby]

Do a search of these Message Board for "sham termination".

[Lori H]

Found em. Thank you David.