POP eligibility discrimination and part-timers.

[KJohnson]

POP Plan provides that an employee will be eligible as soon as they are eligible for health benefits. The employer has a substantial number of 20-25 hour per week employees who will never meet the 30 hour requirement for coverage under an insured plan. Most of these employees would not be excludable under 410(B) coverage testing Would these individual have to be included in a 125 eligiblity test?

Could you simply design the Plan to provide for eligibility at the first day of hire? It seems silly to provide for participation in a 125 Plan if the employee can never qualify for non-taxable benefits under the plan.

[Joe Priselac]

You hit the nail on the head. You make everyone eligible to participate in the POP plan immediately.