Statutory Entry Requirements

[emmetttrudy]

If an employee is hired on July 1, 2012, would the statutory requirements mean he would first become eligible on January 1, 2014? or July 1, 2013?

I always thought you look at the first twelve moneys (7/1/12-6/30/13) and if they work 1,000 hours then they would enter on 7/1/13. But our testing software (Relius) calculates their entry date to be 1/1/14.

[Lou S.]

If an employee is hired on July 1, 2012, would the statutory requirements mean he would first become eligible on January 1, 2014? or July 1, 2013?

I always thought you look at the first twelve moneys (7/1/12-6/30/13) and if they work 1,000 hours then they would enter on 7/1/13. But our testing software (Relius) calculates their entry date to be 1/1/14.

Assuming 1 year wait dual entry they should enter 7/1/13 if 1,000 hrs between 7/1/12-60/30/13.

It is a relius related issue depending on how your plan is setup. I think it might be on their FAQs, if not call them we have simialr problems on occasion. If you are processing annually and don't have them as 1000+ hours in 2012 it looks the next computation period 1/1/13-12/31/13. You can manualy fix by overwriting the "met plan entry date" field prior to running eligibility.

[emmetttrudy]

but technically the statutory requirements allow you to enter six months after you meet the 1 year of service requirement, right? if you have semi-annual entry dates defined in the Plan then yes, he would enter on July 1, 2013. but if you were figuring out his entry date based on the statutory requirements wouldnt it be six moneths later?

[Lou S.]

but technically the statutory requirements allow you to enter six months after you meet the 1 year of service requirement, right? if you have semi-annual entry dates defined in the Plan then yes, he would enter on July 1, 2013. but if you were figuring out his entry date based on the statutory requirements wouldnt it be six moneths later?

I think it would depend on how your document is drafted.

Also are you refering to acutal entry in the plan or testing based on statutory exclusions?

[emmetttrudy]

testing based on statutory requirements. for actual entry i agree it would be 7/1/2013. but for testing with statutory exclusions i think it would be 1/1/14.

[Mike Preston]

Long since settled. Don't have time to look up the citation. Hired on 7/1/xx, enter on 7/1/xx+1. Sorry for the brevity.

[ETA Consulting LLC]

One year is calculated as the date of hire through the day before the one year anniversary; not the date of hire through the one year anniversary. January 1 through December 31 is a year while January 1 through January 1 is a year and a day.

If a person is hired on July 1st, 2011 then his year is satisfied on June 30th, 2012 of the following year. The day AFTER his one year is July 1, 2012. There are only 365 days in a year (366 in a Leap Year); not 366 days in a year (367 in a leap year).

Good Luck!

[Mike Preston]

I like the logic, but I'm not sure it is germane. The issue is the eligibility computation period, not the determination of the length of a year. But it could boil down to the same underlying concepts.

[Tom Poje]

for the sake of the argument I'm going to assume the following - the person hired 7/1/2012 worked less than 1000 hours in 2012. If the plan is processed annually how is Relius to know how many hours the person worked between 1/1/2013 and 7/1/2013 to determine if the person worked 1000 from 7/1/2012 - 6/30/2013?

[ETA Consulting LLC]

for the sake of the argument I'm going to assume the following - the person hired 7/1/2012 worked less than 1000 hours in 2012. If the plan is processed annually how is Relius to know how many hours the person worked between 1/1/2013 and 7/1/2013 to determine if the person worked 1000 from 7/1/2012 - 6/30/2013?

In many instances, it can't. This is what makes recordkeepers different. At the end of the day, we must realize that Relius (or any other recordkeeping software) is merely a tool. It's not programmed to do everything. Sometimes, it requires individual judgement to ensure the correct determinations are made. Also, I believe payroll software does a better job of tracking hours during different computation periods.

Just my $0.02.

[BG5150]

To me:

Hired on July 1, anniversary date June 30, enter next entry date which (in this case) is July 1.

Hired on July 2, anniversary date July 1, enter on next...check plan doc for when this person enters. Is it "next" or "next or coincident with." That matters a lot.