eligibility

[thepensionmaven]

While reviewing W-2s for 2017, client informs me one of the employees was employed prior to the effective date of the plan (1/1/16)  and was rehired 11/5/16.

Since there was no plan prior to his leaving the company, isn't he treated as a new employee and thus, the waiting period would apply??

[Mike Preston]

Depends. History? Plan provisions?

[thepensionmaven]

Plan effective January 1, 2016, employee in question "terminated at least 5 years ago" per the client.

He was rehired November 6, 2016.

No mention of prior service.

If the employee were already a participant, I could see the application of the break-in-service rules, and he would re-enter the plan upon rehire; but he was not a participant at that time.

I believe he would have to meet the 12 months in order to be eligible for participation?