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Posted

It is my understanding that in a situation where an independent contractor (legitimately classified as such) is converting to an employee (not a reclassification situation), the employer does not give eligibility or vesting credit to the employee for the period of time that the employee was validly classified as an independent contrator (i.e., first day of credited service is first day as employee). But, I am having some trouble finding specific authority on this point.

Posted

They were not an employee of the Sponsor. Absent some provison in the document that would grant them service for thier independent contractor time, why would they get credit for it?

Posted

ERISA regulation section 2530.200b-3 is central to determining service and speaks in terms of employees. See also IRC section 410(a)(3)©. Regulations under IRC section 401(a)(4) have provisions for imputing service that is not performed as an employee of the employer.

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