Basic Eligibility Question But Can't Get it Straight

[rlb64]

Plan requires year of service w/ 1000 hours and computation period changes to plan years. Plan year is calendar year and we are using the Corbel prototype.

Employee was hired 7/19/07, terminated 12/28/07 and worked 582 hours during this period. Employee was rehired 4/28/08 and worked 1000 hours by 12/31/08. He did not meet 1000 hours during period 7/19/07 through 7/18/08.

Does this person meet a year of service on 4/27/09 or 12/31/08?

Basic plan doc states that computation period shift to plan years unless prior service is disregarded under the break in service rules section. That section only relates to excluding prior years of service due to the rule of parity, but this person never earned a year of service to be disregarded under this section.

[Bill Presson]

Plan requires year of service w/ 1000 hours and computation period changes to plan years. Plan year is calendar year and we are using the Corbel prototype.

Employee was hired 7/19/07, terminated 12/28/07 and worked 582 hours during this period. Employee was rehired 4/28/08 and worked 1000 hours by 12/31/08. He did not meet 1000 hours during period 7/19/07 through 7/18/08.

Does this person meet a year of service on 4/27/09 or 12/31/08?

Basic plan doc states that computation period shift to plan years unless prior service is disregarded under the break in service rules section. That section only relates to excluding prior years of service due to the rule of parity, but this person never earned a year of service to be disregarded under this section.

12/31/08 since he doesn't meet the 1000 hours by 7/19/08.

[rlb64]

Ok, but at what point, if ever, are rehires starting over at rehire date?

For example, suppose this person was hired on 7/19/05 and termed 12/28/05, but rehired 4/28/08.

[GMK]

My understanding is that there is generally only one off-calendar year for determining eligibility, which is the 12-month period from the first hire date. If the employee does not have the 1000 hours during that first non-calender year period, from then on you look at each plan year for the 1000 hours of service, whether the person is continuously employed during the plan year or not.

Also check the plan document for participation date. In some plans, the participation date will be the first day of year in which the person becomes eligible. For example, a person who becomes eligible on 12/31/08 may be considered a participant for all of 2008.

[K2retire]

Ok, but at what point, if ever, are rehires starting over at rehire date?

For example, suppose this person was hired on 7/19/05 and termed 12/28/05, but rehired 4/28/08.

Your revised example would start over at the rehire date because of the break in service between the first and second employment periods. (At least that was the case in the Corbel GUST documents. I haven't looked for this question in the EGTRRA documents.)