We have an existing profit sharing plan that excludes union members. One union member, who has worked for the employer for 5 years, dropped out of the union last month. The plan has a one-year eligibility requirement. When can this employee enter the plan? A year from the date they left the union? Do we give credit for prior service? Do we exclude all salary paid while the employee was in the union?

Thanks for your assistance.

All service earned while in the excluded class counts toward eligiblity and vesting. So this person would become a participant immediately after moving out of the union.

I believe that compensation is only counted from the date of change to an included class.

Better check the plan document to see whether compensation earned prior to commencing participation is taken into account.