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Hours before Participation don't count for allocation condition?


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Posted

I have never seen this before. I have seen comp before Participation being excluded. If the plan has a 1,000 hour requirement for discretionary non-elective, is it legal to exclude hours before Plan Entry?

Posted

So if the plan has quarterly entry and a participant enters on 10/1, the plan requires 1000 hours from 10/1 to 12/31 to receive an employer contribution?

I've never seen that in a document. Seems like an attempt to have a mostly 2 year wait without having to 100% vest employees.

William C. Presson, ERPA, QPA, QKA
bill.presson@gmail.com
C 205.994.4070

 

Posted

to back Bill up even more

the ERISA Outline Book page 3A.140 2012 edition

3A 1.b. All hours for the plan year must be taken into account (even if the participant was only eligible part of the year)

even the LRMs require language that use language such as 'during the plan year'

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