Rehires
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Does anyone have a policy about rehiring a previous employee and bridging their service? In other words, if an employee has worked for x number of years and then resigns/is laid off and is rehired within x amount of time, is their service bridged as if there were no break in service?
Any suggestions would be appreciated. Thanks!
Any suggestions would be appreciated. Thanks!
Comments
plans, there are specific and often complex ERISA rules about crediting service
for rehires. It also depends on the purpose under the plan for which you are
crediting service. For purposes of vesting, you generally have to credit their
prior service if they come back within 5 years. For purposes of eligibility to
participate in the plan, he "rule of parity" works very similarly to the rules
described below, except that if the person previously worked less than five
years you have to give them credit if they come back within 5 years. For
purposes of determining the amount of benefit accrued under the plan and the
person is vested in their benefit, you basically cannot take away their service
ever even if they never come back to work.
The rules specific to your plan should be spelled out in your plan document and
summary plan description. I hope this will be helpful to you.
Scott Ruth
Miller & Martin LLP
423/785-8437