eligibiltiy for rehire

Hello -  need some help!

plan has year of service 1000 hours and entry dates of 1/1 & 7/1

I have an employee hired 6/2017 and terminated 7/2017.  Only worked 12 hours

She has rehired 2/2022 - worked over 1000 hours in the 2022. 

Plan does not have rule of parity or one year hold and elig switches to plan year.

Does she enter the plan 1/1/2023?

Thanks!

 

Plan document might have a section regarding folks with 5 consecutive breaks in service for eligibility purposes such that the person gets treated as a rehire.  But your document may vary on that.

its an FTW document

All eligibility service with the Employer is taken into account except that if permitted in the Adoption Agreement, the following service shall be disregarded in determining Years of Eligibility Service:

                (a)           One-Year Holdout. If an Employee has a One-Year Break in Service (One-Year Period of Severance to the extent the Plan uses the Elapsed Time Method), Years of Eligibility Service before such period will not be taken into account until the Employee has completed a Year of Eligibility Service after returning to employment with the Employer.

                                Where a Plan's service requirement is two years of service, if an Employee experiences a one-year break in service prior to satisfying the two years of service eligibility requirement, any service prior to the break in service will not be taken into account.

                (b)           Rule of Parity. If an Employee does not have any nonforfeitable right to the Account balance derived from Employer contributions, Years of Eligibility Service before a period of five (5) consecutive One-Year Breaks in Service (One-Year Periods of Severance to the extent the Plan uses the Elapsed Time Method) will not be taken into account in computing eligibility service. Elective Deferrals are taken into account for purposes of determining whether a Participant is a nonvested Participant for purposes of Code section 411(a)(6)(D)(iii).

 

                If a Participant's Years of Eligibility Service are disregarded pursuant to the foregoing, such Participant will be treated as a new Employee for eligibility purposes. If a Participant's Years of Eligibility Service may not be disregarded pursuant to the foregoing, such Participant shall participate in the Plan pursuant to the terms of Article 3.

                To the extent provided in the Adoption Agreement, eligibility service may also include service with employers other than the Employer.

 

If that initial DOH and 12 hours are not disregarded, which it appears they are not, I agree that DOP is 1/1/2023.

Aren't 2017-2021 5 Breaks, though? 

Bri- the rule of parity is not elected in the adoption agreement, so don't you use all service?  This is where I am getting confused... thanks

 

 

Oh I gotcha - I misread that the rule of parity provided there was from a Basic Plan Document (illustrating what "could" be chosen) as opposed to being the actual text of a document (so inserted as a result of an election to include said provision), one not coordinated on an adoption agreement.