Rehire Roulette: Avoiding Eligibility & Vesting Surprises

ASPPA [American Society of Pension Professionals & Actuaries]

Rehire and break‑in‑service rules are deceptively complex and frequently misunderstood, leading to eligibility errors, incorrect vesting calculations, and long‑term operational failures. This session offers a deep dive into the nuances of service crediting across periods of employment, including recognizing breaks in service, applying the rule of parity, restoring forfeitures and prior vesting upon rehire, and coordinating hours across multiple payroll or HR systems. Special attention is given to employees who cycle in and out of employment, seasonal workers, LTPT employees, and participants who change status within a controlled group. Through real‑world examples attendees will learn how to determine proper reentry timing, avoid double‑counting or missing service, and align operational practice with plan document provisions. The session provides practical tools to prevent common eligibility and vesting mistakes before they become costly corrections   

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