Rehire eligibility question – Brain Bubble

Employee hired 10/3/2016.  Term’d 3/1/19. Plan effective 1/1/20.   Rehired 3/29/21.  Service requirement is 1,000 in 12 months. 

Is she eligible to enter immediately upon rehire date? (i.e. allowed to defer and receive safe harbor non-elective contributions).  Plan does not apply one year hold out rule or break in service rule. 

I know that if the plan had already been in effect (and if she met the age/service requirement prior to her term date) she would be eligible to enter immediately.  The effective date of the plan is throwing me off.  (She term’d before the plan was put in place.)  Although the plan document says that all service is counted.  So I think she would be eligible immediately??

If you read the rehire provisions of the plan document they don't make any reference to the effective date of the plan.   They simply say if this person is rehired after working 12 mo and having a 1,000 hours they re-enter upon rehire.   If so, they enter upon rehire.

I believe that reflects the general rule of the law.  You can't disregard service prior to the effective date of the plan for entry.   

Check the plan document very carefully.   I am convinced it will answer your question.  

Agree with ESOP Guy. (Not the question that was asked, but just fyi - you can disregard service prior to the effective date of the plan for VESTING purposes.) 

Sounds like there was a "missed deferral" opportunity.  Booo