QACA AND REHIRES

[Guest Mk9522]

IF AN EMPLOYEE IS REHIRED , LESS THAN A YEAR AFTER HE TERMINATED....WHAT PERCENTAGE DOES HE COME BACK IN WITH? THE 3% MINIMUM....OF IF HIS YEARS OF SERVICE INDICATE HE SHOULD BE AT 6%...DOES HE COME IN AT 6%?

AND DOES HE COME IMMEDIATELY BACK IN AT THE PERCENTAGE? or DOES HE HAVE TO WAIT UNTIL THE BEGINNING OF THE FOLLOWING PLAN YEAR (1/1) ...WHICH IS THE DATE THE REMAINING POPULATION HAS AN INCREASE?

WE WOULD PREFER THAT HE COME IN IMMEDIATELY AT REHIRE, INSTEAD OF WAITING

[401_4_ever]

When he comes in is subject to the terms of the plan document; most plan documents put him in immediately upon rehire. You would need to check your plan document.

The deferral election that he comes in at is subject to interpretation of the QACA uniformity requirement; I think the prevailing interpretation is that he would come in at the level he left, plus potential increases that occurred while he was away. The optional full-plan year rule that starts people over on deferral rates would presumably not apply because you state he was rehired with in 1 year.