P/T Empee & Pension Eligibility

njjel

Am I correct that part time employees are eligible for enrollment into pension plans that are offered to F/T employees if they complete 1,000 hours of service in a period of 12 consecutive months even though they may not be eligible for other company benefits?

Lori B

You are correct. ERISA and the Tax code make the 1000 hours a cutoff point. An employer that tries to require more service, would jeopardize the tax qualification of their plans.

Jen D

>Am I correct that part time employees are eligible for enrollment into
> pension plans that are offered to F/T employees if they complete
>1,000 hours of service in a period of 12 consecutive months even
>though they may not be eligible for other company benefits?


You are correct in your understanding that eligibility for a pension plan is based on terms set forth in the plan document, which is completely separate from eligibility to participate in other types of benefits (like medical insurance for example.)

As long as your part-time employees do not belong to any groups which are specifically excluded from participation by your plan document, if they have met the eligibility requirements otherwise then they must become participants on the appropriate entry date. It is not uncommon for plans to exclude certain classes of employees; like union members who are covered by another plan. So, read your plan document carefully for the requirements as well as any exclusions.