Plan eligibility again

[ombskid]

Plan requires a year of service -1000 hours. Entry dates are 1/1 and 7/1. Year of service reverts to plan (calendar) year.

New employee works over 1000 hours 3/1/2015 to 5/1/2016 and leaves. Is re-hired 1/5/2017.

Would have been eligible 7/1/2016 but not employed.

Less than 1000 hours in 2016.

What is the earliest this employee could be eligible assuming full time in 2017?

 

[My 2 cents]

My take on this:

That could depend on whether there was an eligibility year with 1,000+ hours worked.

First eligibility year (presuming hired 3/1/15):  3/1/15 to 2/29/16

Second eligibility year (matters only if did not work 1,000+ hours in first eligibility year):  Calendar 2016 (during which did not work 1,000+ hours)

Stated that worked 1,000+ hours 3/1/15 to 5/1/16.  If worked 1,000 hours in 3/1/15 to 2/29/16 eligibility year, then would become a participant on first entry date thereafter as an employee (i.e., 7/1/17).  If did not work 1,000 hours in the first eligibility year, then could not enter 7/1/17 unless plan would permit entry if worked 1,000 hours between 1/1/17 and 6/30/17.  If did not (or if plan requires completion of an eligibility year with 1,000 hours), would enter 1/1/18.

[Tom Poje]

insufficient info.

ee hired 3/1/15

assuming they worked 1000 hours by 2/29/2016 then they have met the eligibility condition of 1000 hours in the initial period.

unknown hours worked in 2016, so unknown if they had a break in service.

if they did not have a break service the (old) Accudraft document provided the following description:

(a)     Reemployment of an Employee Before a Break In Service and After Eligibility Requirements Are Satisfied. For any Plan Year in which the eligibility requirements under Section 2.1 are based on Years of Service, if an Employee Terminates Employment prior to the Employee's Entry Date in Section 2.1, the Employee had satisfied the eligibility requirements in Section 2.1 as of the Employee's Termination of Employment, and the Employee is subsequently reemployed by the Employer before incurring a Break in Service, then (1) the Employee will become a Participant as of the later of (A) the date that the Employee would enter the Plan had he or she not Terminated Employment with the Employer, or (B) the Employee's Reemployment Commencement Date, (2) the Employee's pre-termination Year(s) of Service (and Hours of Service during any computation period) will be counted for all purposes, and (3) the Vesting Computation Period and/or benefit accrual computation period, as applicable, will remain unchanged.

 

[ombskid]

The employee did work 1000 hours from 3/1/2015 to 2/29/2016. And worked 630 hours in 2016. So by your (Accudraft) description, he would be eligible 1/5/2017, correct?

[Tom Poje]

that is my understanding.(unless they have since changed their description)

it was from their basic document, as far as I can tell, it is independent of any particular plan's eligibility, simply a description of   if...then

for various situations. 

[ombskid]

Thanks.

I find similar - but not as clear - language in the ft william doc.