Change in Eligibility

[Dougsbpc]

Suppose you have a calendar year DB plan with a one year service requirement and dual entry dates following completion of eligibility requirements. Suppose the plan is amended to have two year eligibility and dual entry dates.

Must employees who met the prior eligibility requirements be eligible, even though they had not entered the plan by the time it was amended?

Thanks.

[Jim Chad]

No. Eligibility is not a protected benefit. I don't see any problem with what you are trying to do.

[Mike Preston]

Just make sure that your eligibility computation period doesn't auto-flip to the plan year or else you will find yourself in EPCRS territory with a very unhappy client.

[Tom Poje]

in other words,

suppose the person was hired 12/30/2011, and works 1000 hours as of anniversary date.

they complete 1 year on 12/30/2012.

if plan switches to plan year then they complete a 2nd year on 12/31/2012 becauee the period runs from 1/1/2012 - 12/31/2012.

so they complete the 2 year wait and worked only a little over 1 year.

[Bird]

I agree, definitely ok to change as long as participant hasn't reached the entry date and entered the plan. There was a court case...was ready to make a crack about my fading memory...but it came to me (I think) - North Shore Auto Body.