Per Diem Employees

Plan excludes per diem employees. A per diem employee who used to be a regular employee and was eligible to contribute wants to roll money over into the plan. Is she allowed to roll money into the plan since she is technically no longer an eligible employee?

Thank you!

What does the Plan say about rollover in eligibility? If not addressed directly by the plan, what do the Administrative procedures say?

"Only active participants may make a rollover contribution." Technically an employee who moved from a regular employee to per diem isn't active any more. Or am I looking at it wrong?

Does the plan define "active participant?" If not, and depending on usage elsewhere in the document, I think the PA could interpret as strictly or liberally as desired provided such interpretation is reasonable. For example, "active participant" could be deemed to mean any participant currently employed by the plan sponsor. Just a thought, if allowing the RO is desired. 

Might this come down to whether or not the formerly-eligible person continues to maintain a balance from before the transfer to per diem?  

21 hours ago, Bri said:

Might this come down to whether or not the formerly-eligible person continues to maintain a balance from before the transfer to per diem?  

The change in status does not create a distributable event.

Agree there, Nate - I think I got this topic confused with the one about switching to an EZ.