Employer wants eligibility as soon as possible (immediate) after Emplo

[jkharvey]

Employer wants participants to enter the plan (make elective deferrals) as soon as they have completed 1000 hours. The employer doesn't want the employees to have to wait for a 12 month period to pass. At the same time, the employer doesn't want those who work less than 1000 hours to become eligible. Can this be done? If so, how do we define the eligibility and entry date requirements?

[Guest mo again]

We have this option in our volume submitter document. We require a year of service but define a year of service as

"the completion of 1000 Hours of service within a 12 consecutive month period measured from the date the Employee completes his first Hour of Service".

Language for the more conventional definition is

"a 12 consecutive month period during which an Employee completes at least 1000 Hours of Service, measured from the date the Employee completes his first Hour of Service.

Hope this helps.

[jkharvey]

Thanks for your help. My question now is this. Using the definition of year of service as 12 month period from date of hire, doesn't the EE have to wait the 12 months before becoming eligible even in the 1000 hours have been completed in only 6 months or so?

[Guest mo again]

No, the point is that the year of service definition is NOT a 12 month period in which 1000 hours are completed. It is the completion of 1000 hours within a 12 month period. A subtle but critical distinction.

[jkharvey]

Hmmm. I hadn't looked at it that way. In your definition then am I correct with the following example?

Employer date of hire is 2/2/2000. Employee works 1000 hours by 9/5/2000. The plan provides for monthly entry dates. This employee would be eligible to enter the plan and begin making elective deferrals on 10/1/2000. Using the more conventional defintion of a year of service, however, this EE would not be eligible until 3/1/2001, if entry dates are monthly.

Is this correct?

[Guest mo again]

You bet.