Date of Entry after a Plan Freeze

[Guest raintrain19]

I have a plan that froze benefits and service for non-union employees as of a 1/31/2010. Date of Entry is defined as the first of the month coinciding with or after 12 months and 1000 hours. A non-union participant was hired on 9/15/2009. Can he enter the plan on 10/1/2010, although it has been frozen? The amendment freezing the plan states that the only eligible employees after 1/31/2010 are Union Employees. I do not think he is Eligible, whereas there are others in the office that disagree. What do you think?

Thanks ahead of time!

[SoCalActuary]

From what you describe, this employee is not in an eligible class to enter the plan as of the entry date.

[david rigby]

Agree, but here is a previous horror story:

- plan amended to freeze accruals, but

- the amendment is poorly drafted and does not freeze participation;

- new employees enter the plan but do not accrue anything, except.....................

- the plan defines a minimum benefit at NRD.

Thus, the new employees/participants have a non-zero benefit at NRD if they remain employed until that time.

Oops.