Quarterly Eligiblity

[Dazednconfused]

Hi,

I am having a brain spasm... Plan has 1 yos & age 21, quarterly entry dates. Employee hired 3/10/08 did not work work 1,000 in annv. year of 3/10/08 thru 3/9/09. However, by 9/30/09 did work 1,000 hours, I believe that they would entery 10/01/09 and not a 1/1/10 entry date.

Thanks,

J

[WDIK]

How does the plan define the second year for eligibility purposes?

Does the plan indicate service eligibility is satisfied upon the completion of hours or at the end of the computation period?

[Dazednconfused]

The plan uses the 'Plan year beginning with the Plan year which includes 1st anniv....' for the eligibility computation period, that is after the anniv. yr computation.

Thanks!

J

[Guest Sieve]

For eligibility, plan generally requires a full plan year of service--and employment on entry date--to meet the requirements. So, once you move to the plan year after not meeting the y/s requirement in the first measured year from employment date, then a y/s would require 1,000 h/s during the plan year and passage of the full 12 months.

So, entry date would be first day on the plan year after the plan year in which the employee completed a y/s. So, if the plan year is 10/1-9/30, then entry would be on 10/1/09 if employee had 1,000 h/s during plan year of 10/1/08 to 9/30/09 (but, not 1,000 h/s from 3/10/08 through 9/30/09). However, if plan year is 1/1-12/31, then employee with 1,000 h/s during the 1/1-12/31/09 plan year (i.s., the plan year starting within the first employment year) would enter the plan on 1/1/10.

[WDIK]

jasofk:

Please give appropriate emphasis to Sieve's use of the word "generally", which may or may not be the case with your specific plan language.

[BG5150]

I didn't think a plan HAD to shift to the plan year after the first year of employment? I am working on a document right now that says the eligibility period is from hire date to anniversary date, and further periods are anniv date to anniv date.

[WDIK]

I didn't think a plan HAD to shift to the plan year after the first year of employment? I am working on a document right now that says the eligibility period is from hire date to anniversary date, and further periods are anniv date to anniv date.

I agree that the eligibility period provision is elective and does not need to shift. A plan document may also reflect the election that the service requirement is completed as soon as the hours requirement is met rather than waiting until the end of the eligibility period.