FAQ 388: Eligibility--Entry date calc'd by elig routine is later than it should be


Plan eligibility is age 21 and one year of service, with one year equal to 1,000 hours. Entry date for deferral is the date eligibility is met. Entry date for PS is the first of the year IN WHICH ELIGIBILITY IS MET.
Employee with date of hire 11/15/2004, date of birth 6/12/1979. Had 1,000 hours in 2005 - so date of entry for PS and safe harbor should be 1/1/2005; for deferral should be 11/15/2005. ASC calculates 1/1/2006.


Employee's hours in her history screen show 125 hours for 2004. When calculating the first employment year hours for eligibility, the system prorates hours worked to come up with the number of hours they worked in her first employment year.

System calcs:

12/31/2004 history = 125 hours
12/31/2005 she worked 1000/12=83.33 per month.
83.33 x 10.5 months = 874.97
874.97 + 125 = 999 hours