YOS credited when?

[Guest JPIngold]

I know I have kicked this around before, but wondering what most people are doing.

I am using Relius VS document. I was always under the impression that it was Relius' legal department's interpretation that a year of service was credited on the last day of the determination period.

Example: Plan with dual entry, age 21 and 1 YOS (with 1,000 hours). Person was hired several years ago and has never worked 1,000 hours in either her first 12 month period or in any subsequent calendar year (using plan year switch). She worked 1,002 hours between 1/1/09 and 6/30/09 and then terminated in August, 2009. Using my logic that the YOS of credited on the last day of the year, I figured she would not enter as she wouldn't get CREDIT for the YOS until 12/31/09, but my admin. system is bringing her in on 7/1/09, because she is getting credited with her YOS on 6/30/09. If she had not terminated, I would have expected her to enter on 1/1/10.

The Relius SPD says that "you will have completed a YOS at the end of any following Plan Year during which you were credited with 1,000 Hours of Service." This tends to back up my thought that this is how Relius' legal staff interprets the provision. (The document's definition of YOS doesn't get that explicit .... it just mentions the 12 month period.)

Thanks.

James

[pmacduff]

FWIW - we use Relius/Relius Docs too and I agree with you that the entry date in this example is 01/01/2010 as the employee does not satisfy the eligibility until that point.

I find sometimes with the Relius software that it is something small I missed in the specs coding that causes the problem. Under Plan entry - do you have whole or half years credited for past service? If half years, I think that can sometimes do it. Also, how is your payroll data entered (i.e. monthly, quarterly, annually)? I have found Relius for some reason will measure on the 1/2 year instead of plan year, again I think it's probabaly a simple coding change that will help.

In any event, I would override in my system to the 01/01/2010 date. Sorry I didn't have a more concrete answer!

[Guest JPIngold]

Here is Relius' response to my incident where I asked the question:

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If the entry requirements are 12 months of service and 1000 hours Relius will look to see when the EE completes both requirements and once the participant completes both the service and the hours requirement, then the system will complete the Met Entry Requirement with the date and then the participant will enter on the next plan entry date

Since the participant had completed the service requirement then when the participant completed the hours requirement as of 6/30 (1000 in a plan year) then the met entry requirement was fill in (6/30/2009) and since the next entry date was 7/1/2009, that is the entry date given to the participant. As far as not providing the year of service until the end of the year, then the only way would be to enter hours on the 12/3 payroll period for the plan. In Relius hours are earned on the pay period entered.

To be credit with a year of service or year of service for vesting works the same as for entry. Once the system see on a pay period for that plan year that the hours requirement has been met then the participant is credited with a year of service.

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So, it sounds like you just have to watch for this and override it if you take the position I do with regard to when the YOS is credited.

Thanks for your response. I am glad someone else feels as I do.

James