AMarie Posted January 26, 2017 Posted January 26, 2017 In a profit sharing plan excluding union employees, there are some employees who are covered by a collective bargaining agreement, yet they also work for the employer and are paid by the employer (outside the union). Employee has worked enough union and non-union hours to meet eligibility for the employer's (non-union) plan. In a plan year, do his union hours count toward the allocation conditions for a profit sharing contribution (made by the employer), and also for vesting. If he were to leave the union, it's my understanding his union hours count towards eligibility and vesting, making him immediately eligible for a profit sharing contribution. My question relates to a year where he is paid both by the union and by the employer.
ESOP Guy Posted January 26, 2017 Posted January 26, 2017 For vesting all the hours count always. That is the only reading of the DOL regulations about vesting and hours. I don't remember how that goes with the allocations. AMarie 1
duckthing Posted January 27, 2017 Posted January 27, 2017 How does your document define an Hour of Service and/or Eligibility Service? I don't know offhand if it's permissible to exclude the union service for allocation purposes -- my guess would be not -- but your document may not even give you the option. AMarie 1
AMarie Posted January 27, 2017 Author Posted January 27, 2017 Thank you both for your time. My conclusion is that union AND non-union hours count towards a participant's service for eligibility, vesting and allocation.
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