First pay-DATE after Plan Entry

[austin3515]

I have always told people someone is eligible for the plan with respect to the first pay-DATE on or after plan entry date. I'm thinking their must be an article or something on point clarifying that when compensation is earned is not relevant, it is when it is received that matters.

Any help appreciated cuz it comes up all the time...

[ETA Consulting LLC]

The language in the plan document should make it clear. Your statement combines two or three concepts that should be stated separately.

1) You enter the plan on the entry date.

2) You will be eligible to benefit on any compensation received on or after your entry date.

3) The plan may be written to allow you to benefit on Compensation received during the entire year that you first entered the plan.

When attempting to paraphrase the plan provisions, you must be careful not to change the meaning.

Good Luck!

[austin3515]

© Paid during "determination period." Compensation shall include only that Compensation which is actually paid to the Participant during the "determination period." Except as otherwise provided in this Plan, the "determination period" is the period elected by the Employer in the Adoption Agreement. If the Employer makes no election, the "determination period" shall be the Plan Year.

Plain as the chin on my face, there it was all along... This is the Corbel VS and it was included in the definition of compensation in the BPD.