I have a plan that excludes Collective Bargaining Employees. On May 1, 2006 a participant in this category became a salaried employee. His original date of hire was in 1996 and he has always worked 1000 hours.

My question, the plan has eligibility requirements of 21 and 1 year of service with entry dates of 1/1 and 7/1. There in no provision in the plan for previous service.

When does this person enter the plan? Immediately? 7/1/06? 1/1/07? 7/1/07?

i would think immediately. the document should state something about switching from an excluded to an included group?

I would also say immediately. Make sure you are consistant with how you apply this to anyone who transfers. Do corrective amendment to the plan clarifying what happens to transfers.

The BPD should spell out what a year of service is.

Doesn't ERISA require that that the plan count all service with the employer after age 18/21 for vesting & eligibility service (but not for benefit accrual)? While the employee can be excluded from participation as a member of an ineligible class if the employee become a member of the eligible class at a later date then all service with the employer is counted for vesting and eligibility. Therefore the employee is a participant in the salaried plan on day 1 with a 0 accrued benefit.

mjb is correct. If the employee is age 21 or older, has earned a year of service & passed an entry date, and is only be kept out of participating in the plan because he is a union employee - then as soon as he is no longer a union employee he is eligible to participate in the plan immediately.

This is not a question of prior service. The employee is an active employee and is earning service with the employer. Once his status changes he is eligible for the plan - on May 1, 2006.

Just so its crystal clear, his date of participation is May 1, 2006.