Plan Eligibility

[Nassau]

This question pertains to a DC Plan only.

Assuming service with the same employer, does service prior to meeting the plan's eligibility criteria count towards eligibility? vesting?

Is it optional or required to count service prior to eligibility?

For example, If the plan's age and service requirement is Age 18 and 1 year of service and a participant is age 17 and has been working for the company for 1 year. When the participant is Age 18, will the 1 year of service that the participant had prior to meeting the plan's eligibility criteria count towards eligibility? and vesting?

Can someone provide me with the regulations that is associated with the answer? Thanks.

[Bill Presson]

I'm a bit confused. If service prior to meeting eligibility didn't count towards eligibility, how would one ever become eligible?

[Tom Poje]

exactly as Bill points out.

for eligibility, there are perhaps a few exceptions for employees who have had a break in svc

for vesting, there are some exceptions (e.g before age 18, before plan started)

while my DB knowledge is limited, I believe there is a 5 year max on past svc for accrual puporses(?)

enclosed are some govt notes on eligibility (participation) and vesting. posted these before so a good chance some of you have pulled these already

minimum vesting standards.pdf

min partic standards publication 6388.pdf