Part time to full time and back

[ombskid]

Non-profit organization has several semi-permanent part time employees to do fill-in for vacations, sick leave, scheduling etc.. They want to use one for a longer term fill-in that would put them over 1000 hours in the current plan year then return to part time in the following year.

Plan calls for 1000 hours/one year eligibility.

Is there any simple language that could be added to the document that would allow this?

[Lou S.]

Simple? Not that I'm aware of. Once you satisfy the 1 year of service you are in and going to "part time" won't exclude you.

I think what you have to do is come up with a reasonable business classification for the the employees you want to exclude; exclude them from participation in the plan document; test for coverage. Presumably the coverage test wouldn't be a problem unless you have "a lot" of these types of employees.

[ETA Consulting LLC]

I think I'm misreading the question:

1) You currently have a plan with 1000 hours during a 12 month period for eligibility.

2) Many PT employees are permanent fill-ins who fail to work 1000 hours.

3) You have a single PT employee who may actually cross the 1000 hour threshold this year and will enter the plan.

4) He will continue to be a participant in the plan because there is no exclusion for PT employees after eligibility is met.

Now, this is the current setup. What is it you're trying to change?

[ombskid]

They would like to have this person work the extra hours this one year, but not have to be covered by the plan because of the one year 1000 hour eligibility and because they intend for this person to go back to part time after this one assignment

Lou you have it right - no problem with coverage by excluding this employee/class of employee. We're looking for ideas for defining the excluded class.

[Lou S.]

They would like to have this person work the extra hours this one year, but not have to be covered by the plan because of the one year 1000 hour eligibility and because they intend for this person to go back to part time after this one assignment

Lou you have it right - no problem with coverage by excluding this employee/class of employee. We're looking for ideas for defining the excluded class.

The devil is in the details as I suspect this person does the "same" job as many employees they don't want to exclude by class. We have a similar issue with Plan and honestly don't have a simple solution.

I'm guessing they are worried about communication issue with other employees not covered if they cover this one employee? The simplest is to just cover the employee after they enter and continue to do so.

I'm not a big fan of drafting a complicated rule to exclude one NHCE but if you do it, good luck.

[david rigby]

Be careful to check whether this has happened at some earlier date.

[rcline46]

403(b)???? no exclusions allowed in this case. Either don't allow person to get 1,000 hours or suck it up.