Archimage
Feb 7 2003, 12:37 PM
I have a participant that converted from full time to part time. They no longer work 1000 hours in a given plan year. The plan is top heavy. The participant only works when needed and did not work on the last day of the plan year. Would you consider this participant eligible for the top heavy minimum or not? I believe the participant is eligible but I would like to hear some other opinions.
Giovanni
Feb 7 2003, 01:34 PM
I also believe he is. Even though he may not have actually worked on the last day, he was still wmployed.
Tom Poje
Feb 7 2003, 03:22 PM
insufficient info provided....
this might depend on what year you are talking about, and what the plan document says.
e.g. ee works 400 hours in 2002. he has incurred a break in service as of 12/31/2002. he gets his top heavy, but chances are for 2003 his participation is suspended until he completes a year of service.
Interesting discussion in the ERISA Outline Book on this issue.
Chapter 2 eligibility Rules section V Termination of employment/break in svc rules.
Archimage
Feb 7 2003, 03:25 PM
Sorry, I meant to include that the participant does work over 500 hours a year. Tom, I did read that discussion but it didn't necessarily address my issue. However, it did help me to come to my conclusion that the participant should get a contribution. I really want to know if anyone would disagree with me.
austin3515
Feb 7 2003, 09:31 PM
Once a participant, always a participant (unless break in service rules kick in, which here it seems they do not).
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