Rehired after 12 year absence (with 15 years prior participation)

[Guest Iwonder]

An employee left 12 years ago after participating in a profit sharing plan for 15 years.

At termination of his employment, the employee was a vested participant and took a full dist'n.

Now, the employee has been rehired.

The rule of parity applies to participants who are not vested in their accounts.

In this case, because the participant had been vested, is he eligible to begin participating immediately?

If he does being participating immediately, is he considered a participant who already has 15 years of service for profit sharing calculations?

Thank you

[PLAN MAN]

You should find the answer in the plan document. Does the plan have a provision to exclude prior years of service? Does the plan state that a rehired partcipant will enter the plan on their re-employment date? Does the plan require a particpant to earn a year of service before they are reinstated in the plan as of the rehire date? Look under Eligibility or a special section for rehired employees to see if any of these provisions are in the plan.