non union to union employee

[Guest LBH]

I have a participant that worked 6 mos as a non-union employee and then joined the union and continued working for the same employer. He is now is no longer eligible to participate in their profit sharing plan. The plan provisions are that all employees completing 501 hours share in the year end profit sharing contribution (including terms). He has not term'd and is no longer an eligible ee but did complete the 501 requirement. Does he share?

[LCARUSI]

I would check the plan doc carefully. Does it require an employee to be an "eligible employee" on the last day of the year? What is the definition of compensation for the purpose of allocating contributions?

In my experience with plans of this type (with union-nonunion transfers), plans have been drafted so this employee would receive an allocation based on compensation while a nonunion employee.