What constitutes separation from service?

[Guest CJ]

Can a participant of a 401(k) plan receive a lump sum distribution while on a layoff and still retain their recall rights and original seniority date with their employer?

[Dan]

What does the plan document say? It should spell out all of these details.

Layoff, recall rights and seniority cause me to think of union plans. Union plan's are typically subject to good faith bargaining. In that case, the plan document must spell out all provisions. The Plan Administrator should be able to answer these questions.

Good Luck.

[MWeddell]

I've received determination letters on plan documents that define separation from service to include layoffs of x months duration or longer.

Without such language in the document, I'd hesitate to include layoffs as separations from service, but it's generally up to the plan administrator to interpret the document.