Excluded Class

[Melissa]

I have a profit Sharing only plan that has Union employees excluded.  We just learned that all the employees became non-union on 10/1/2018.  Does this become their date of hire for eligibility purposes? 

[Mike Preston]

No.

[duckthing]

20 minutes ago, Mike Preston said:

No.

And you will want to check what your plan document says about employees who move from an excluded class to a non-excluded class.

[CuseFan]

Read the document! We just had a similar discussion. Union service counts toward eligibility. Now they go from ineligible class to eligible class and the plan should specify how they are treated. All pre-approved plans I have seen say that these employees enter the plan on the date they become eligible employees if they have already satisfied the (age and service) eligibility requirements.

[chc93]

22 minutes ago, CuseFan said:

Read the document! We just had a similar discussion. Union service counts toward eligibility. Now they go from ineligible class to eligible class and the plan should specify how they are treated. All pre-approved plans I have seen say that these employees enter the plan on the date they become eligible employees if they have already satisfied the (age and service) eligibility requirements.

Also counts toward vesting...

[Melissa]

Thank you!  you are correct, I finally found it!