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Employee becomes agency temp, is he employed on the last day?


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Posted

A plan has last day requirement for Discretionary nonelective.  If an employee becomes an agency temp midyear, is he employed on the last day?

I believe the answer is no.  But I am not certain.  Am I missing anything?

What has me doubting myself is the fact that we count hours as a temp when the person becomes a full time employee.

 

Posted

Assuming he really is a common law employee of the temp agency (big assumption) and also not a leased employee (less of one, but a significant assumption nonetheless), and that your plan has standard language regarding coverage, I don't think he would get the allocation. He's not an employee of employer, therefore not employed.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

Posted
19 hours ago, Luke Bailey said:

He's not an employee of employer...

This might be correct, but it appears to be an assumption.  (You are aware that people can have more than one job, aren't you?)

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Posted

I meant by the employer that was subject of Jim Chad's inquiry, of course.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

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