FAQ 521: Coding Part-time employee

Problem: An individual used to work more than 1000 hours per year and thus became a participant in the plan. The individual no longer works more than 1000 hours per year and is not expected to work 1000 hours per year in the future. The plan requires that a participant work 1000 hours to earn a year of benefit service and to earn a year of vesting service. What is the best way to code this person in ASC? When I code them as an "A", the system seems to assume that the participant will earn 1000 hours per year in the future. If I code the individual as an "H" for part-time, the system drops them out of the valuation.

Solution: In a DB plan there are two ways you could code this person. One would be to leave the status code as A and code in the actual number of hours worked (or some number less than 1000) in each history record applicable and in the current hours field. In plan specs on the Compensation averaging screen code the spec "Assumed continuation at same hours/Yr" as Y(es). If you have other people in the plan that are working less than 1000 hours but you want to assume they continue full time in the future, then do not change the "Assumed continuation...." spec and make your continuing part time employee a status T.