Tom Posted August 24, 2023 Posted August 24, 2023 Calendar year plan - Plan requires Year of Services defined as 12-month period in which at least 1000 hours is worked with entry on following 1/1 or 7/1. Eligibility determination year switches to plan year after first anniversary year if not eligible Original Date of Hire 10/21/2020 Date of Termination 8/25/2020 (>1000 worked from DOH to DOT)) So not eligible for 2020 Date of Rehire 11/1/2021 250 hours worked in 2021 Date of Termination 4/25/2022 I wonder if this person should have been made eligible on date or rehire although she never worked a consecutive 12-month period. I believe FIS told me at one time it was just a passage of time in cases like this and doesn't have to be 12 months of continued employment. I know - tell clients not to re-hire!
Mr Bagwell Posted August 24, 2023 Posted August 24, 2023 25 minutes ago, Tom said: Date of Termination 8/25/2020 (>1000 worked from DOH to DOT) Is this the right fact pattern? Maybe 8/25/2021 DOT?
Bri Posted August 24, 2023 Posted August 24, 2023 Is that first termination date supposed to be 8/25/2021? We're discussing this concept currently on another topic post - the service doesn't have to be continuous across the 12-month measurement period. So 1/1/22 would have been the appropriate entry date.
Mr Bagwell Posted August 24, 2023 Posted August 24, 2023 We posted at the same time Bri... I would agree with 1/1/2022 if term date was 8/25/2021. Here is the language in our document. I would guess other documents are similar. This is one of those sections that you just have to commit to understand and memorize.... just my two cents. It comes up more than I want it to. Rehired Eligible Employee Who Had Satisfied Eligibility. An Eligible Employee who satisfies the Plan's eligibility conditions, but who incurs a Separation from Service prior to becoming a Participant, subject to any Break in Service rule, if applicable, under Section...., will become a Participant on the later of: (1) the Entry Date on which he/she would have entered the Plan had he/she not incurred a Separation from Service; or (2) his/her Re-Employment Commencement Date. Luke Bailey and Bri 2
CuseFan Posted August 24, 2023 Posted August 24, 2023 Agree and 1 hour ago, Mr Bagwell said: I would guess other documents are similar. Yes, so it's always the important first step to RTFD because in 99.9% of routine administrative circumstances the document will tell you exactly what you need to do, and know that sometimes you need to check more than one section or definition. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Josette Posted August 24, 2023 Posted August 24, 2023 I do not think that the correct dates are shown on the original question. DOH = 10/21/20 DOT = 8/25/20 (assume that this is a typo and the DOT = 8/25/21)? DORH = 11/1/21 DOT = 4/25/22 With this change, there are no years of service for the period beginning 10/21/20 to 12/31/2020. Assume there is a year of service from 1/1/2021 to 6/30/2021 (assume 1,000 hours or more in the 6 months). She enters the plan on 7/1/2021 and terminates on 8/25/2021. Assume a month of service for July and August. She was rehired on 11/1/21 and has a month of service for November and December for a total of 10 months of credited service. (No service for September and October). Terminates after 4 months of service in 2022. In summary, 2020 - no service, not in the plan. 2021 = enters the plan on 7/1, total service for the year is 10 months. No information was provided on the vesting schedule or accrued benefit formula. 2022 = terminates with 4 months of service, No information how the partial year is treated. Was there additional vesting? accruals? And no, I would not advise the plan sponsor not to rehire her. For all you know there is a medical reason like having a baby or a stroke. I don't want to be responsible for the plan sponsor being sued, do you? Luke Bailey 1
Tom Posted August 29, 2023 Author Posted August 29, 2023 Everyone is right the DOT was 8/25/2021 not 2020 -sorry about that!
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