Re instatement after Hardship 6 month suspension

[52626]

Plan allows participants to take a hardship and the participant's deferrals are suspended for 6 months.

At the end of the six months, doesn't the employer begin the salary deferral withholding at the amount it was prior to the suspension?

The hardship form does not indicate the participant will be required to complete a new election form at the end of the suspension.

The employer makes the participant wait until the next entry date following the 6 month suspension and tells the employee to complete a new election form.

If deferrals show resume at the end of the 6 months, is there an issue missed deferrals?

Thanks

[masteff]

My first answer is: what does the plan document say?

My second answer it: is this administrative procedure applied consistently to all employees at the end of a suspension or are any HCEs treated differently?

I have no problem w/ their chosen administrative procedure unless it contradicts the plan.

These prior threads may be of some insight...

http://benefitslink.com/boards/index.php?/topic/38830-hardship-and-resumption-of-contributions/

http://benefitslink.com/boards/index.php?/topic/35787-hardship-distribution-suspension-period/

http://benefitslink.com/boards/index.php?/topic/15637-hardship-distribution-suspension/

[401king]

Forcing them to wait until the next entry date seems unnecessary, unless their entry dates coincide with the salary deferral change request dates. They are already a participant, so they should be able to defer at any time after the 6-months.

[masteff]

I missed the entry date bit of that when I answered. - I personally dislike the use of entry dates. It seems unnecessary and bureaucratic.

My question would be whether participants who previously participated but dropped to a zero percentage (for reasons other than hardship) are allowed to make a change in deferral percentage at times other than the entry dates. And less specifically, whether other participants are allowed to change their % between entry dates. I would then be consistent in applying that practice to someone returning from hardship suspension.

[Belgarath]

Yeah, but a lot of the time the "entry dates" are monthly, for example, and I see no problem whatsoever with making them wait until the first day of the next month. I think the more important thing is as already mentioned: plan document/administrative provisions accurately and consistently followed.

[K2retire]

Some documents specify when deferral changes can occur. Changes restricted to entry dates are common, but not universal or required.