Eligibiltiy upon rehire elapsed time

[R. Butler]

I struggle with this particular scenario.

Plan has a 90 day service requirement and monthly entry dates.  Plan includes rule of parity provisions, but not a one year hold out rule.    Plan further provides that eligible employees who had not satisfied the eligibility requirements will become a participant in accordance with the requirements of the plan.  Employee is not treated as  a new hire unless service is disregarded under the Rule of Parity provisions.

Employee completes 45 days of service prior to terminating.   Employee is rehired 2 years later.

Employee was gone more than 12 months so I don't that service spanning applies.  There isn't any service is excluded under the Rule of Parity.  My understanding is that since service spanning doesn't apply and that since no service is excluded the rehired employee must work 45 more days and then enters on the first day of the month after that.

Does that sound correct or am I missing something? 

Thank you for any guidance.

 

  

[Tom Poje]

I believe the rule of parity only applies to 'participants' which wouldn't apply in this case.

 

an old Links comment had:

we had an IRS audit on a plan which was 6 "consecutive" months of service. With less than 1 YOS you have to use elapsed time so the IRS opined that the word "consecutive" is basically meaningless and the service spanning rules applied. Actually only ended up being a few employees that were missed for eligibility (rehires of course.) Corrected under SCP.

That being said, from all of the samples I went through with the agent I would say that since this employee did not return within 12 months from initial DOH, the service spanning rules do not apply as BG5150 mentioned. SO....the participant starts over, needs to work for 3 months and would enter on the next entry date as defined in the doc.