Vesting

[Chippy]

A year of service for vesting is 1,000 hours in a plan year.    A SALARIED employee worked 5 months and was salaried for 881 hours during that time, but he worked overtime and had  actual hours worked  of 1,055.   

 Would he get a year of vesting since he actually worked over 1,000 hours?     My first thought is yes.    

[Lou S.]

1,055 > 1,000. What is the issue? Seems obvious he is credited with a year of service under the rules.

[Chippy]

Since he was paid for 881 hours and salaried, I wasn't sure.   What if he was salaried and they didn't track the hours he actually worked? 

But since they did, I would think they count towards vesting. 

[duckthing]

14 minutes ago, Chippy said:

What if he was salaried and they didn't track the hours he actually worked? 

In that case, hopefully the document gives an hours equivalence (e.g. 10 hours per day or 45 hours per week or...) for salaried employees or employees for whom hours are not tracked.

Possibly useful discussion: 

 

[acm_acm]

On ‎11‎/‎8‎/‎2017 at 4:10 PM, Chippy said:

Since he was paid for 881 hours and salaried, I wasn't sure.   What if he was salaried and they didn't track the hours he actually worked? 

But since they did, I would think they count towards vesting. 

Do you want to become a fiduciary to the plan on this one?  If not, I would find out how the Plan Administrator has been "counting hours" in the past and how they would like to do so going forward and document their decision.  CYA.

[ESOP Guy]

How does the plan define hours? 

I am with acm_acm read the document and make the PA decide how this works out if the plan isn't clear.  All plans have a provision that says the PA can make reasonable interpretations of the plan document that are non-discriminatory.