Jump to content

Recommended Posts

Posted

PArtcipant hired February 1, 2021 and worked 2 months before quitting.  They are rehired tooday, which is more than 12 months after their termination date so they had a break in service.  Plan uses elapsed time.

When would this participant satisfy a 6 month eligibility?  Does their 2 months pre-break count is really the question?  My Basic Plan Document only says "If any Eligible Employee who had not satisfied the Plan's eligibility requirements is rehired after  severance from employment, then such Eligible Employee shall become a Participant in the Plan in accordance with the eligibility requirements set forth in the Adoption Agreement and the Plan."

I'm inclined to say the 2 months pre-break counts but I cannot find anything straight on point, including the EOB...

Austin Powers, CPA, QPA, ERPA

Posted

Check as to when the service may be disregarded.  Sometimes it's spelled out specifically for "participants" but I do recall seeing a round of restatements changing that up to "employees" in the BPD so that it was clear that there'd be a minimum of five years before you could ignore any prior service.  Basically the rule of parity, but for someone who wasn't a participant yet.

Posted
On 6/10/2022 at 5:39 PM, Gilmore said:

If you have access to ERISAPedia I believe Derrin Watson answered similar questions in the "Ask" section.  If you do not let me know and I'll see if I can find one.   

OMG I never even knew I had this!  i only pay for the regs/rev procs, not the text books (well that plus the Q&A service which is incredible).

Sure enough, this question was answered, and you do have to aggregate both periods of service!

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