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Employee starts January 1; does he complete 6 months of service on Jun


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Posted

A Plan states: You enter a Plan the first the day of the month which is next following completion of six months of service.

A employee starts on Jan 1. Does he complete 6 months of service on June 30 or July 1?

Posted

June 30 if the employee is employed on January 1. Usually this employee would have a hire date of January 2nd though due to the holiday, then 6 months of service would be completed on July 1. Is the language just

"next followng" or does it include coincident with language also?

DMH

Posted

The exact plan language: An employee shall become a new participant on the first day of the month which is next following the date on which he completes his first six month of employment.

Posted

If that is the complete language applicable, then it looks to me that he "completes" the sixth month on June 30 and would enter on July 1.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Posted

I agree, although I think that the plan language is terrible. You picked the easiest example by stating that the hire date was 1/1. The more interesting (and difficult) question was poised by Dawn when she asked about a 1/2 hire date.

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