Allocation (Year-End Employment - Participant on Long Term Disability)

[Yesrod5]

Client has an individially designed plan (happens to be an ESOP) that was prepared by Sungard/Corbel in response to a checklist we submitted. The plan provides that in order to receive an allocation for a given year, a participant must be "actively employed on the last day of the year." I can't imagine that someone who is away from work and on long-term disability could be "actively" employed on the last day of the year.

Am I missing something here?

[QDROphile]

Some plans expressly provide that persons on approved leave, including medical leave, are treated as employed for limited purposes or for all purposes. FMLA is subject special rules and is treated as employment for limited purposes. Many plans have a waiver of such conditions for death, disability or retirement. You have an interpretation issue that does not have a pat answer. I have trouble with the term "actively employed" and never willingly use it.

[Yesrod5]

QDROphile,

Thank you for your most prompt and helpful response.