Break in Service Rules

Eligibility 3 consecutive months

Assume Hired 2/15/2013  works only 400 hours a year.

Came into plan 7/1/2013

Terminated     8/1/2019

Rehired 2/1/2010

Never had 501 hours so they are all breaks in service.  Doc says we can exclude if employee had 5 or more consecutive breaks in service.  Does that include the years he was working too?

never put any money in the plan

Thanks

Read your plan's definition of a Break in Service very carefully.  

Most plans simply say a BIS is any year  a person works <501 hours.   Some plans I have seen say any year terminated and works <501 (rare but I have seen it).

If it simply says a BIS is any year a person works <501 hours I think this person had a BIS all the years they worked. 

So this person has 5 BIS in 2019.   

That has been my understanding of these rules.  I have a number of staffing firm clients that can have many people do what you describe and we have consistently said you can work in a year and still have a BIS.  

It seems odd but I think it is true.

It will be interesting to see other people's take on this.

39 minutes ago, PFranckowiak said:

Eligibility 3 consecutive months

Based on counting hours, or elapsed time?

If elapsed time, the hours don't matter and the service spanning rule means you don't have a period of severance.

Not elapsed time.  Company just switched from a year of service to three consecutive months.