Santo Gold Posted July 2, 2020 Posted July 2, 2020 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
Bird Posted July 2, 2020 Posted July 2, 2020 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. Luke Bailey 1 Ed Snyder
Santo Gold Posted July 2, 2020 Author Posted July 2, 2020 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
Bill Presson Posted July 2, 2020 Posted July 2, 2020 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. Luke Bailey and David Schultz 2 William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
Larry Starr Posted July 7, 2020 Posted July 7, 2020 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. Bill Presson and Belgarath 2 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
Bill Presson Posted July 8, 2020 Posted July 8, 2020 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
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