Eligibility - Rehire Question

Plan has 1 year of service requirement, and shifts eligibility computation period to calendar year after initial computation period.

Employee hired on March 1, 2022 and then terminates on May 1, 2022.  During that time period, worked 250 hours.

Employee is rehired on June 1, 2023 (not 2022, as was mistakenly stated in my original post).  

Does the eligibility computation period still shift to calendar year, even though rehire happens outside the initial 12 month period?  

I don't find this clearly addressed in the regs.  It seems the better approach is to shift to calendar year, but is not clear.

Check your dates I think you wrote some wrong based on the context.   Are the 1st set of dates supposed to be in 2021? 

I think your plan document ought to be clear on this. It most likely says it switches without any exception so it switches. 

Double check your document. 

Agree with ESOP Guy - document's eligibility section probably says what occurs with this fact pattern (my suspicion is that the initial eligibility determination period is still ongoing, as measured from the original hire date in March)

Looks like your initial computation period is from March 1, 2022 through February 28, 2023. 

I've edited the original post.  Sorry for the mistake.

I would guess that the plan switches its measurement period to the calendar year for 2023, since he won't have 1000 hours in his first 12 months.  And that his prior service is not disregarded (it's less than 5 years), so that the rehire date doesn't factor in it.  So he could get to 1000 hours from June 1, 2023, to December 31, 2023, and get in on 1/1/2024.

All this is moot if the plan doesn't specify a plan-year switch for the second eligibility period, in which case it's every March 1 to Feb. 29 to try to get the year of service.

Your first computation period is 3/1/22-2/28/23. Since an employee worked only 250 hours in this period (<500 hours), an employee may incur a one-year break in service for the eligibility purposes. You need to check your plan document on how the year of service for the eligibility purposes, and the one-year break in service for the eligibility purposes are defined, and if this break in service reset the eligibility computation period to the 12 months from rehire date.