Part-time employees

[Guest philippa]

If an employee is part time (working 25 hours a week) and not eligible for health benefits but otherwise a regular employee and all full time employees performing the same work in the same divison are entitled to 401(k) benifits is the part time employee also entitled to benefits?

[KIP KRAUS]

I am going to assume that this part-time employee is a regular employee who otherwise works year round??? If so, if the 401(k) plan document specifies, as one of its qualifications for participation requirements, that a person must have a minimum of 1,000 hours worked in order to participate, such employee may be eligible for participation. Of course, the employee must meet any other plan requirement.

Check your plan document for eligibility.

[Dan]

First check your document. If plan eligibility is age 21 and one year of service, then anyone who works 1000 hours or more during the determination period (employment year or plan year) in eligible to enter upon arrival at a plan entry date.

So, based on above assumption, an employee (age 21 or older) with 1000 hours or more during that determination period (12 month) would be eligible at the next entry date. Full time or part time is irrelevent. One thousand hours during the 12 month period is what matters.

If the plan document specifies less than one year of service, say six months, then hours of service are not considered regarding plan entry. Entry would be at next entry date following satisfaction of the six months of service, regardless of hours.

[This message has been edited by Dan (edited 03-16-99).]