Statutory Exclusion - Class Change

[LKSmoke]

An employee was a nonresident alien receiving non-US source income for a few years.  He comes to the United States, and is no longer a statutory exclusion for plan purposes.

Does his service during the period prior to his change from a statutory exclusion to an eligible employee class count toward determining his plan entry date and determining his vesting service?

Thanks!

[401_noob]

I know that it will for eligibility.

The plan must count all of an employee's service, even if he or she is excluded from the plan by reason of another eligibility condition, such as a minimum age requirement or a job classification exclusion.  If a plan excludes employees by job category (e.g., hourly-paid employees are excluded) an employee's service earned while he or she is in that job category must be counted toward eligibility. The plan cannot require the employee to complete another year of service for eligibility purposes after he or she moves to a covered classification if the employee completed a year of service while he or she was a member of the excluded classification.

I am confident that it will for vesting too because there aren't but a few reasons that you can exclude prior years of service when determining vesting (prior to plan inception, prior to age 18...)

[401_noob]

I found some additional text regarding the vesting.

As a general rule, the plan must count all years of service for vesting purposes,
including participants' service before satisfying the plan's eligibility requirements or
while suspended from participation in the plan because of employment classification.

Hope this helps.