Initial Eligibility Period Anniversary to Plan Year - Help on the entry date?

[HarleyBabe]

Have a plan that has eligibility measured from anniversary and then switches to plan year. It's the basic document language that I'm sure most doc modules read but I attached it.

So here is a scenario and I'm not sure the answer. Eligibility is 1 year of service with 1000 hours and age 21. Entry is monthly, calendar year plan.

Scenario - Hire date May 2, 2014 so anniversary date is May 2, 2015 but they didn't work 1000 hours in that first period for whatever reason. In my client case they employee a lot of interns that then turn full time. So based on my scenario, we switch to the plan year because they didn't meet the 1000 hours in the anniversary period. Plan year is January 1, 2015 to December 31, 2015. Well the client is arguing they should come in June 1, 2015 because between January 1 and May 2 2015 they became full time and worked 1000 hours so why do they have to wait for another full year. My thought is no we measure January 1 to December 1 and yes they worked 1000 hours and they come in January 1, 2016. It does seem to be a gray area in my mind. Thoughts and help please?

[BG5150]

Well the client is arguing they should come in June 1, 2015 because between January 1 and May 2 2015 they became full time and worked 1000 hours so why do they have to wait for another full year.

Wait. Did the person work 1000 hours from 1/1 to 5/2?

[HarleyBabe]

yes they did work 1000 from January through May 2015 which is why the client is saying June 1, not the following January 1 after the plan year is over. My thought is the measurement period is 12 months.

[Jim Chad]

FWIW I think it is July 1 entry. He has worked more than a year. And he has worked 1,000 hours in a measuring period. What do other people think?

[HarleyBabe]

Yes please I need all I can get and somewhere of proof of why as well would be awesome.

[Bird]

How could he work less than 1000 hours from 5/2/14 - 5/2/15 and more than 1000 from 1/1/15 - 5/2/15?

[Bill Presson]

yes they did work 1000 from January through May 2015 which is why the client is saying June 1, not the following January 1 after the plan year is over. My thought is the measurement period is 12 months.

How can someone work 1000 hours from January 1, 2015 - May 2, 2015, but not work 1000 hours from May 2, 2014 - May 2, 2015??

[GMK]

If the person worked 1000 hours from Jan. 1 - May 2, then she/he worked 1000 hours in her/his first year of employment, no? (like Mr. Presson said)

[Tom Poje]

I am assuming the following

ee did not work 1000 hours from 5/2/14 - 5/2/15

but did work 1000 hours in 2015 (but not by 5/2) otherwise the question makes no sense.

I would say you are now in a new 12 month measuring period 1/1 - 12/31

and so the person doesn't enter until 1/1/2016

(assuming of course the document reads that way using 1000 hours in a 12 month period...)

now if the clients wants to say they worked 1000 hours from 1/1/ -5/2 (must be in the pension industry running ADP tests! to accomplish that)

[HarleyBabe]

you know what, my example was wrong, duh, that's a technical term, sorry. Let me rephrase it. Same scenario, May 2014 to May 2015 doesn't work 1000 hours and we have that a lot because of all the interns theyhire BUT January 1, 2015 to July 1, 2015 he does work 1000 hours. Does he come in August 1 or does he have to wait until January 1, 2016. That makes more sense. Sorry folks.

[HarleyBabe]

Tom you are correct. I just rephrased my scenario for dates. That's what I thought as well. Does anyone disagree and why? and think they should come in during the 2015 year as soon as they hit that 1000 hour mark. If so please give me a reg or something to go off.

[Belgarath]

January 1, 2016 (I see now that Tom already answered this)

[Tom Poje]

by their own logic then, if the person in question worked 1000 hours from 5/2 - 12/31 then they should enter 1/1 and not 7/1 which would ignore a '1 yr svc computation period'
in other words they want an entry upon completion of 1000 hours in any time period not exceeding 12 months.

Certainly that can be done
one option with the FT William document has:
date on which 1000 hours of service is completed within the computation period

[Bill Presson]

Agree with 1/1/16 assuming the document requires the completion of the 12 months of service before entry.

Tom has given an additional example of how it could be earlier.