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Posted

Eligibility for rehired employee. Plan Eligibility states '90 days of service' (no hour requirement is stated), plan uses actual hours, not elapsed time. Entry date 1st of month following.

DoH: 1/28/19

DoT: 4/15/19

Rehired: 11/11/19

I think DoP is rehire date, or 12/1, after they worked the actual 90 days of service was completed.

I believe the intent of the employer was 90 days of actual service but I don't see where a day is defined to credit service. I have read other posts regarding situations like this but most say the document uses elapsed time, in this case the doc states actual hours. Would the spanning service apply in this case? So, other than amend the doc to match what the employer intended, some general opinions?

Thanks for the assistance.

Posted

The document should specify what 90 days of service means, whether it means 90 days of actual employment (actual hours makes no sense in the context of your question, but maybe it was for this intent) or to have been considered in employment for 90 days, i.e.,  elapsed time and simply being employed 90 days (or more) later. If this is an adoption agreement pre-approved plan you'll likely need to look at basic document for your answer. If you still don't have a clear answer, the answer may be the AA was improperly completed - mixing elapsed time and hours of service options to express an intent by the employer not explicitly allowed in the AA. 

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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