MoShawn Posted August 9, 2010 Posted August 9, 2010 We recently received a copy of a restated plan document that incorporated an amendment from 2005. Our (and the client's) intent was to make a specific employee (NHC) eligible for the plan as of 12/1/05. Normally, we would draft the amendment to indentify the individual specifically. Unfortunately, the draft of the amendment actually reduced eligibility from 1 year to 3 months (401(k) only), and entry dates from semi-annual to monthly (all sources). This did allow the individual to enter the plan as of 12/1/05, but would obviously have impacted all eligibility calculations from then to the present. Both the company and our firm have continued to operate the plan on the 1 year service and semi-annual entry terms. 1. Can we say this was a mistake in the drafting of the amendment, and this should only have applied to 2005? 2. ??? Suggestions?
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