Jump to content

Recommended Posts

Posted

We use the RElius Corbel formatted document.  Anyone have any idea what the  normal procedures would be for how to treat rehires?

One of the options listed below should be somehow selected or known. Can it be purely administrative policy or is there an absolute answer to this question contained somewhere in the BPD? I also understand (From reading the administrative provisions and BPD) that there is less flexibility if we are trying to use the 90 day permissible w/drawal EACA provisions.

Affirmative Election WAS Made
1) Do NOT auto enroll or resume any affirmative elections.
2) Subject the participant to a new auto enroll process.
3) Implement the old election on payroll.

Affirmative Election NOT made:
1) Do NOT auto enroll or resume any default elections.
2) Subject the participant to a new auto enroll process.
3) Implement the old auto enrollment rate on payroll without a new set of notifications/wait periods. This option is more important of course if there is an auto escalation feature.


Just curious if I'm the only who is struggling with this issue more and more as more plans add auto enrollment...

Austin Powers, CPA, QPA, ERPA

Posted

Maybe I am making it more complicated than it is.This is what it says the Admin Procedures section:

Application to Automatic Deferral provisions to rehired Employees. Unless this Plan is a QACA, or with respect to
withdrawal rights for EACAs, then rehired Employees are treated as new hires pursuant to the following (leave blank if not
applicable):
l. [ ] A rehired Employee is only treated as a new hire for purposes of the Automatic Deferral provisions (except as
otherwise provided in the Basic Plan Document) if the rehired Employee has separated from service for at least
(enter a period; e.g., 3 months)

 

I gather what this means is if you leave for a week, a month a year or 3 years, when you come back you get re-solicited for auto enrollment.  Is that where people are landing here?

 

Austin Powers, CPA, QPA, ERPA

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use