What does '20 hours a week' mean?

[rcline46]

A 403(b) client is insisting that summer camp counselors are excluded from the plan because they exclude anyone who is scheduled to work less than 20 hours per week. They wan to apply this because of the months the people do not work.

Has anyone seen anything 'official' on just what this means? That is, may it be averaged over some period, or some other concept?

[Belgarath]

See 1.403(b)-5(b)(4)(iii)(B).

I'm assuming this is a non-ERISA plan. If it is an ERISA 403(b) plan, then I think you'd have to make sure the plan contained "fail-safe" language to automatically override the exclusion if anyone works 1,000 hours.

[rcline46]

Thank you. So it is still a 1000 hour rule of sorts.

[Tom Poje]

under the 414(q) rules to determine if someone averages 17 1/2 hours a week you have the following:

Employee work 20 hours a week for 25 weeks (fall and winter), 10 hours a week for 12 weeks (the spring) and is off during the summer. (Great job!)

The employee is treated as having average 17 ½ hours a week because periods not worked are not considered.

Treas. Reg. § 1.414(q)-1T Q9(e)(1)

granted that is for determination of the body count for top paid group election, but....