Jump to content

Recommended Posts

Posted

Checking if the following eligibility condition could be used in a plan.  The employer wants to keep PTimers out of the plan and those who are PT will work less than 1000 hours.  But the employer also wants to bring FTimers into the plan after they meet 1000 hours, but bring them in immediately or the month following they get to 1000 hours, even if they meet that in less than 12 months.  

Using a prototype document, if we use less than 12 months for eligibility, we cannot have an hours requirement and the PT would be able to enter the plan.  So we need eligibility to be 12 months and we want the 1000 hours with it.  

While our prototype does not have this specific eligibility condition as an option, it does have an "other" eligibility allowance and we could state this in that section.  But is this eligibility condition allowable othewise? 

Thank you

 

Posted

Personally, I would discourage this - how important is it, really, to bring people in as soon as they have 1000 hours instead of waiting 12 months?  It's a big deal for a few months and then it is not an issue.  Anyway, our VS/prototype format document (FTW) does have simply reaching 1000 hours as an option, so I think you are safe with an "other" in this case.

8 hours ago, Santo Gold said:

So we need eligibility to be 12 months and we want the 1000 hours with it.  

But that's not what you are describing.  You just want 1000 hours (but within a 12 month period).  Maybe that's what you meant but be careful when you write it.  Here is the language in ours:

[  ] Completion of            Hours of Service (not to exceed 1,000) within a twelve month period. The service requirement shall be deemed met at the time the specified number of Hours of Service are completed.

Ed Snyder

Posted

Thanks for pointing that out.  I re-read it and saw the problem.  The employer wants 1000 hours in a 12 month period, but the participant can enter immediately after hitting 1000 hours, even if that is in less than the 12 months.  The language that you show is what we are looking for.

 

Thanks

Posted
4 hours ago, Santo Gold said:

Thanks for pointing that out.  I re-read it and saw the problem.  The employer wants 1000 hours in a 12 month period, but the participant can enter immediately after hitting 1000 hours, even if that is in less than the 12 months.  The language that you show is what we are looking for.

 

Thanks

Just be careful with this because the employer has to monitor EACH employee separately and ensure they know when they hit 1000 hours. The larger the number of employees, the harder that is.

William C. Presson, ERPA, QPA, QKA
bill.presson@gmail.com
C 205.994.4070

 

Posted
On 7/2/2020 at 4:47 PM, Bill Presson said:

Just be careful with this because the employer has to monitor EACH employee separately and ensure they know when they hit 1000 hours. The larger the number of employees, the harder that is.

Just an added note: I would talk the client out of this stupidity.  He now has 365 entry dates instead of, generally, two.  No doubt it will get screwed up - guaranteed.

Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC
President
Qualified Plan Consultants, Inc.
46 Daggett Drive
West Springfield, MA 01089
413-736-2066
larrystarr@qpc-inc.com

Posted
17 hours ago, Larry Starr said:

Just an added note: I would talk the client out of this stupidity.  He now has 365 entry dates instead of, generally, two.  No doubt it will get screwed up - guaranteed.

Agreed.

William C. Presson, ERPA, QPA, QKA
bill.presson@gmail.com
C 205.994.4070

 

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use