| FAQ 881: Eligibility--Rehires and dates of entry |
How does ASC calculate entry dates on rehires.
Eligibility will be recomputed based on the rehire date and the original termination date. Based on the original entry date and date of termination, the rehired employee will fall into one of the following categories: 1) if they terminated prior to meeting the original age and service requirements, they will have to meet the age and service requirements after their date of rehire; 2) if they met the age and service requirements, but terminated prior to their original calculated date of entry, they will enter the plan on the next available entry date after their date of rehire; 3) if they met the age and service requirements and entered the plan prior to their date of termination, they will enter the plan on their rehire date; 4) if they met the age and service requirements, terminated, then were rehired after their original "calculated" entry date, they enter immediately on their date of rehire (i.e. they are not held out until the next plan entry date); 5) an employee who did not become a participant; terminates and returns before a break in service, they will continue to use their original date of hire for purposes of calculating an entry date for eligibility.
Additional information on rehires:
The original Termination Date should be retained in the record, until a subsequent termination date occurs. Rehire dates are not currently used for vesting calculations. You may need to create history records with one hour for the years between the date of termination and the date of rehire so that the system calculates vesting correctly.