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Posted

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.

Posted

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.

Posted

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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