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lori

2 Year Employer Match

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a high school has immediate entry on deferrals, but a 2 year waiting period for the employer match. their new doc states that for matching purposes, the match has two entry dates the earlier of the first day of the plan year (June 1) meeting 2 year requirement or first day of the 7th month(dec 1). However, they have not been administering the plan as such. They assess eligibility at the first day of the plan year (June 1) and if a employee lets say started working in August of 2007, they qualify for the two year requirement as of June 1, 2009 or appx 1.8 years. Something under the "3/5ths rule". Since they are a school and a lot of their employees being in August.

 

Is that ok?

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a high school has immediate entry on deferrals, but a 2 year waiting period for the employer match. their new doc states that for matching purposes, the match has two entry dates the earlier of the first day of the plan year (June 1) meeting 2 year requirement or first day of the 7th month(dec 1). However, they have not been administering the plan as such. They assess eligibility at the first day of the plan year (June 1) and if a employee lets say started working in August of 2007, they qualify for the two year requirement as of June 1, 2009 or appx 1.8 years. Something under the "3/5ths rule". Since they are a school and a lot of their employees being in August.

 

Is that ok?

 

My first reaction a match of any kind is not just OK, but great! In our profession, K12 districts don't offer a match.

I don't know of any rules that mandate employers when the matches commence, if that is what you are asking. I may be wrong, lets see of somebody can shed light on your question.

Steve

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Yes, i was looking for a response on entry for matching purposes. Employees qualify for the 2 year entry date for the match, even if they have not been employed for 2 years. i.e. date of hire is 8/1/07 two years would be 8/1/09 yet for matching purposes, they start receiving match on the first day of the plan year 6/1/09. Generally most plans have 2 entry dates.

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