Rule of Parity

[R. Butler]

Participant terminates in 2005 after working 600 hours; has a break-in-service in 2006, 2007, 2008 and 2009. He is rehired in December 2010, worked 100 hours. Does 2010 count as the 5th consecutive break-in-service whereby prior service is disregarded? My inclination is thta it does, but obviously not positive.

Thanks in advance for any guidance.

[Belgarath]

Was the participant zero% vested when terminated in 2005? Assuming yes, then I'd agree that 2010 counts and the rule of parity applies.

[david rigby]

Note that neither 410(a)(5) nor its cross-reference 411(a)(6) say anything about termination of employment.

[R. Butler]

Note that neither 410(a)(5) nor its cross-reference 411(a)(6) say anything about termination of employment.

Agreed, but the document seems to specifically apply the rule to rehires in this case.

Thank you for your help.

[Guest Sieve]

Was this individual a participant before termination of employment? Was he/she vested in any source?

[R. Butler]

Was this individual a participant before termination of employment? Was he/she vested in any source?

Actually individual was not a participant, but had satisifed eligiblity. I refer to the employee as a participant because the document essentially treats such employees as participants who terminated with 0% vesting. The document essentially provides that if the employee terminated without a vested interest in the plan and is later reemployed the prior service will be disregarded if the number of consecutive 1 year breaks in service exceeds 5. In my situation, 2010 is both the rehire year and the 5th consecutive 1-year break.

Thank you for your help.