Intern rehired - determination period for eligibility

Plan has standard eligibility for ER contributions of 1000 hrs/1 yr of service.  If 1000 hrs not reached in 1st 12 months, determination period switches to calendar year.

Question --> Let's say an employee works a couple months, makes (immediate) eligibility for 401(k), but not for ER contributions.

Couple years later (< than 5), ee is rehired.  I'm wondering if that first period of employment means determination period must switch to calendar, or if plan calculates from date of rehire.

Example

• EE works 5/1/20 - 7/15/20
• EE rehired 8/1/22 and works over 1000 hours in 2022
• Eligibility for ER either 1/1/23 or 8/1/23

The first eligibility computation period for ER is 5/1/2020 to 4/30/2021.  Said employee is not eligible for ER money.  My assumption is said employee did not work > 1000 hours in 2 months.

So for this employee, you start looking at calendar years to see if worked 1000 hours for ER eligibility.

2021 calendar year < 1000 and not even an employee.... but still not eligible for ER.

2022 > 1000 hours

I like 1/1/2023 for start of ER eligibility.

Hopefully, the plan does not do the one year hold out rule, or rule of parity....  I don't like those plans....

Agree - and the plan document should be clear on all that. 

You certainly should check the plan document. The document may specify that after 1 year break-in-service, the eligibility computation period switches back to 12 months from the rehire date.