"I review a lot of plans where eligibility is written as 'Full-time employees working 30 hours per week'. To me, this raises multiple concerns: First, it doesn't account for variable hour employees of ALEs and lookback/measurement/etc. Second, and more concerning to me, is that the language is loose. If an employee hits 30 hours in one week, is that employee not then eligible? Especially if 'Full-time' is not a defined term? There has to be a better way of drafting that, right? Or am I just picking nits?"

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"I doubt this is possible but I wanted to be 100%. We've always provided the 3% nonelective safe harbor to all eligible regardless of employment condition on last day or hours worked. A large client does not want the terminated employees to get 3% as the cost is fairly high. A 3% profit sharing plan to those still employed does pass coverage but the plan will not pass ADP and the client is firm -- no corrective distributions. Is it possible to test the terminated employees ADP (there are no HCEs in that group) and only give the safe harbor to those still employed? The plan is not top heavy."