Short plan year

[SSRRS]

A 9/30 , fiscal year end plan switched to a calender year end after 9/30/14.  To make this change, a short plan year was created from 10/1/14  until 12/31/14. The plan benefit formula  is 2% for each year of service. Question: For the three month plan year is each employee credited with 2% for this additional "year of service"?. Thank you very much.

[Lou S.]

What does the Plan Document say?

[SSRRS]

Thank you Lou S. The Document says he shall be credited with a year of service for each service computation period for which he is credited with at least 1,000 hours of service. Is this 1000 hour requirement prorated to 250 hours for the three month short plan year?

[SSRRS]

It would be greatly appreciated for any insights and help with the above. Thank you.

[david rigby]

This might be a case where the amendment was poorly drafted.  Or not.  IMHO, you should follow the plan document.  Likely, this will mean no credit for the short PY; ie, don't impute proration if it isn't there.  However, it's probably very important for someone to ask the plan sponsor: what result did you intend?  It's possible an additional (clarifying) amendment is the solution.  

[Mike Preston]

It is most likely there.