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5500 Participant Count - change to ineligible class


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Guest Holly Foster
Posted

When a person entered the plan and has a balance but in a future year changes their job to an ineligible class of participants (example excluded hourly paid, union, etc) they no longer earn any service (only vesting accrues) but may not be eligibel for distribution because they have not terminated from the employer, are they counted as an "active" participant, or a "seperated participant entitled to future benefits"? If the later, and they have no balance would they no longet be counted as a participant?

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