Eligibility and Entry for 90 days of service

[dseals]

QACA Safe Harbor plan is switching eligibility, from 1 year of service, to 90 days of service, with quarterly entry dates.

The company has 15-20 student interns who may work one semester, take off the next, then return later in the year. How would you go about counting the 90 days for employees who work sporadically?

If an employee works 75 days during the course of the 2015 plan year but isn't employed on 12/31, do those days of service that were worked in 2015 roll over to 2016 or do we begin the count again, since the person termed prior to the plan year end without meeting the requirements?

[GMK]

The Plan Document will define how to count days of service for eligibility, including whether or not service before a gap in employment is counted when a person is rehired .

Also, you have posted this under the section on How to Use the Message Boards. To reach a wider readership, you might wish to re-post it under one of the retirement plan sections.

[BG5150]

Are teh service-spanning rules universal, or must it be explicitly stated in the plan document?

[Tom Poje]

well, if you go by this IRS publication...

see page 6 of the pdf file in regards to elapsed time

if you return to work at all after 12 months then everything is counted.

with a 90 days svc requirement I'd argue that is elapsed time.

min partic standards publication 6388.pdf

[Kevin C]

The service spanning rules for elapsed time are in 1.410(a)-7(a)(3)(vi). I would expect to see them in any document that allows the use of elapsed time. But, I think you would have to follow the regs if they apply regardless of your document language. Of course, if the document had more generous language, you would have to follow the document.

[Bill Presson]

Shouldn't this thread be in a different section??