USERRA

[Nassau]

My client who is an ER directed only plan, has an EE going out on military leave. The plan provides for a profit sharing contribution with a 1000 hrs requirement. When the EE returns to work my client doesn't think that this EE will have met his normally required 1000 hrs. for the profit sharing contribution.

Is the client required to give them credit for 1000 hours of service while on Military leave to qualify for the profit sharing contribution?

[ESOP Guy]

If you have access to the Sungard's "The Pension Library ERISA Newsletter" which is a for pay service their Number 2006-2 covers USSERA and answers just about any question you could have with examples.

As a general rule the answer is "yes" they are due a PS contribution. That person would have a year of service for vesting and benefit accrual in basically all instances.

[QDROphile]

Wouldn't it be nice if the plan document had adequate provisions to cover the situation and answer the question? Next time you are in the market, take a look at the USERRA provisions and then ask how much more you will have to pay to learn how to adminster in accordance with the law. Add that to the price of the free document. The United States is almost always at war, and USERRA covers almost all military absence, so anticipate some need. The plan should cover imputed service and imputed compensation.

The post is unclear if the plan has a 401(k) feature. If it does, the plan has to provide deferral opportunity with respect to the military leave.